Argentine biotechnology company Bioceres said on Thursday (07.08.2019) that it has received US approval for its drought-resistant soybean variety 'HB4', although it will await approval from China, which is expected to be released at the end of 2020, before it can be marketed.
The biotechnology event, held in conjunction with the US company Arcadia, approves the commercialization on US soil of a seed resistant to drought and water stress, explained a source from the South American company.
The U.S. Department of Agriculture (USDA) said in a resolution that the decision is "scientifically sound."
Bioceres, which already had the approval of Brazil for this variety of seed, said that this is the first time that a Latin American company has received approval from the United States.
"This event is unique because large multinationals do not have this technology," the source said, adding that the process now "has unrestricted approval from the United States."
The United States, Brazil and Argentina are the world's three main exporters of soybeans and China's approval of the 'HB4' soybean seed is key to the expansion of the product from Bioceres in soybean producers since the Asian country is the world's main importer of the oilseed.
With the opening of the Chinese market, "we would be penetrating an area equivalent to between 15% and 25% of the soybean area in Argentina (with HB4 soybeans) in a period of the first three to five years," said the CEO of Bioceres Argentina, Federico Trucco, recently.
According to the Rosario Stock Exchange (BCR), the area planted with soybeans in Argentina in the 2018/19 cycle was 17,3 million hectares.
"Apart from the yield, it is important (that farmers have the new 'HB4' variety) because it allows them to extend the (planting) frontier," said the source.
In 2018, China purchased 92% of the 3,67 million tons of soybeans exported from Argentina.
Source: Reuters
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