Kanematsu Corp., Japan's largest importer of food soybeans, plans to boost sales of the oilseed by 67 percent in three years as it expands crop supply contracts in Canada and widens shipments to Europe and Asia.
Sales of nongenetically modified soybeans will rise to 200,000 metric tons in 2012 from 120,000 tons this year to meet demand in countries including Japan, South Korea and Spain, said Katsumi Morita, general manager at Kanematsu's grain and oilseed department, in an interview Tuesday.
The trading company plans to expand contracts in Canada, the second-largest supplier to Japan, to more than 130,000 tons from 80,000 tons, he added.
Food makers in Japan, the largest export market for non-GMO soybeans, are paying rising premiums to secure supplies as farmers in the U.S., the biggest producer, increase planting of modified crops that are higher yielding and easier to grow. Companies including Kikkoman Corp. are reluctant to use the crops because of consumers' food safety concerns. Taiwan and South Korea also import non-GMO food soybeans.
"Non-GMO soybeans may become more scarce as China may start seeking them," said Takaki Shigemoto, an analyst at research and investment company JSC Corp. "To secure enough supplies, Japanese companies need to diversify."
Currently, China uses local soybeans for food use and imports the oilseed for crushing to produce cooking oil and animal feed.
Soybeans in Chicago climbed to a five-month high of $10.7850 a bushel Dec. 1 and have gained 6 percent this year as China, the world's largest importer, purchased record overseas volumes to meet demand from crushers.
Premiums for non-GMO soybeans doubled in 2008 from 2007 because of tight supplies and held at similar levels this year, Morita said, declining to give details.
Genetically modified soybeans represent about 92 percent of the crop in the U.S. and 60 percent in Canada, according to Morita.
Tokyo-based Kanematsu plans to start non-GMO soybean output in Australia's Tasmania state as early as 2011 as it seeks to diversify supply, he added. Tasmania was suitable as the government's stance favored non-GMO crops, he said.
The company also plans to acquire a stake in Ontario, Canada-based Hendrick Seeds to gain access to research.
"We want to develop soybean seeds especially for Japan's market," Morita said. "The big seed developers have stopped research and development on nonmodified soybeans."
Japan's demand for food soybeans is forecast at 1.03 million tons this year, little changed from 2008, according to the Agriculture, Forestry and Fisheries Ministry.
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