August 22, 2001 -- On August 20, 2001, a subcommittee within Japan's Ministry of Agriculture, Fisheries and Forestry (MAFF) approved a draft proposal setting a 1-percent tolerance (rather than
zero) for unapproved
genetically modified corn hybrids in livestock feed. In addition to this development, considered positive by the National Corn Growers Association (NCGA), the outlook for U.S.
corn sales to Japan has
improved, according to a recent report from the office of the U.S. agricultural attaché in Tokyo.

The report estimates that Japan will import about 15 million metric tons (just over 590 million bushels) of U.S. corn this marketing year - about 95 percent of last year's levels.
Earlier
estimates had pegged Japanese imports at about 92 percent of last year's levels.

The draft proposal on genetically modified corn, approved by the safety assessment subcommittee of MAFF's Feed Committee, is expected to be open for comments from the
public and from World Trade
Organization member countries. Then the proposal will be submitted to the full MAFF Feed Committee for approval. The unapproved biotech hybrids must have approval in at
least one of the 30 member
countries of the Organization for Economic Cooperation and Development. (For a complete list of member countries, go to the href="http://www.oecd.org/about/general/member-countries.htm">OECD
Web site.) If all goes as planned, the new law could take effect in early 2002.

"Although this is just the first step in a long process and applies to feed, not food, corn growers are encouraged that this action sets the stage for addressing the problems created
by the unintentional
commingling of StarLink in U.S. corn," says Rick Tolman, NCGA executive vice president and chief executive officer.

According to the U.S. agricultural attaché's report, despite the Japanese food industry's concerns about U.S. corn being contaminated with StarLink corn, the industry is having
difficulties getting food corn
from other sources. Imports of all corn and U.S. feed corn remain relatively unchanged from last year. However, a full recovery in U.S. food corn sales in Japan will depend on
the U.S. industry's ability to
ship StarLink-free corn from the 2001 crop.