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China: Syngenta deal could lead to biotech acceptance

ChemChina's purchase of Syngenta (SYNN.VX) could remove some of the suspicion around genetically modified crops and ultimately lead to more rapid user acceptance of biotechnology in food production in China, Syngenta's Chief Operating Officer Davor Pisk told Reuters.

The Syngenta executive noted that while cultivation of GM food crops remains illegal in China, there are indications that the government wants to move toward adopting more use of GM technology, but to do so in a very cautious way, as it recognizes a lot of consumer uncertainty and anxiety about the question of GM foods.

"One of the benefits of ChemChina acquiring Syngenta is to hopefully remove some of the suspicion around modern technologies as they relate to agriculture amongst Chinese consumers," Pisk said, adding that Chinese consumers had been reluctant to accept GM technology as long as it appeared controlled by foreign companies.

If the technology is owned by a Chinese entity, consumers will have more confidence in its safety, he added.

"This will ultimately lead to more rapid user acceptance and greater confidence that this can really contribute to a safer and more secure food supply chain in China," he said.

Pisk also argued that the deal fits with China's national ambitions to boost food security.

"This acquisition clearly is consistent with the stated strategic intent of the Chinese government which is looking to modernize its agriculture within China... I think that with ChemChina's move here, this will add capability to China's ability to invest in more sustainable agriculture practices within China."

Read the full story at Reuters
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