Not long ago, Greenpeace, the international environmental protection organization, released its market research report “Depressed prospects for GM rice market” in Beijing. The report quoted a survey conducted by Xiaokang Magazine and Tsinghua University Media Survey Laboratory in April this year, which showed that nearly two-thirds of respondents were inclined to purchase non-GM foods. In early 2007, the organization commissioned consumer surveys conducted by Ipsos (China) Market Research & Consulting Co., Ltd. (IPSOS) in Beijing, Shanghai and Guangzhou to show that Chinese consumers are cautious about GM foods. 65% of respondents explicitly chose non-genetically modified products, while 77% of respondents explicitly chose non-genetically modified rice. The organization believes that in the face of the choice of genetically modified foods and non-genetically modified foods, Chinese consumers' attitudes are the same as those of consumers in Japan and European Union countries, and their preference for "non-genetically modified foods" is obvious.

Rejection of the domestic market In the diversified sales channels of rice, shopping malls and supermarkets are growing and expanding. This channel mainly sells branded rice and small packaged rice. At present, several major supermarket chains in China have responded to consumers’ demands for food safety and ensure that their own brands and fresh bulk cereals do not contain genetically modified ingredients. The report lists the non-GM policies of these supermarkets: Auchan promises to reject GM fresh bulk vegetables, fruits and cereals; Carrefour Supermarket promises not to sell genetically modified fresh bulk fruits and vegetables and cereals in China; Maple supermarket promises not to sell genetically modified fresh produce Bulk fruits and vegetables and cereals; Nongyehang Supermarket Group Co., Ltd. promised its own brand rice as non-GM rice.
The report said that more and more food manufacturers have realized that Chinese consumers are cautious about genetically modified foods and began to join the ranks of non-GM. For example, as the largest grain, oil and food import and export company and food producer in China, COFCO's “Fulinmen” and other small packaged rice are currently sold in 2543 supermarkets in 256 cities across the country. The company promised in 2010 that COFCO will be located in Dalian, Zhangjiagang and Jiangxi companies to produce non-genetically modified rice, such as Ziping, Wuhu, and Fulinmen rice. Another leading rice packaging market, Yihai Kerry, has also explicitly promised that its brands, including Jinlongyu, Jinyuanbao and Xiangmanyuan, will continue to sell non-GM rice.
In addition to the refusal of the well-known small packaging rice industry giants, other giants from rice-related industries also expressed their opinions and promised to reject GM rice raw materials and additives and food ingredients made from genetically modified rice, including market share in the baby food industry. 41.51% and 21.57% of Heinz and Bein Meinei, the snow beer with 19.8% beer market share, Yanjing Beer with 90% market share in Beijing, Luzhou Laojiao and Jiannanchun. In fact, some companies have persisted in rejecting genetic modification for a long time, such as the rice cake company's leading Wangwang Group. Since 2004, they have promised to refuse to use genetically modified rice raw materials and genetically modified additives.

The refusal of overseas markets reports that due to market regulations in overseas markets such as Japan and the European Union, and consumers’ cautious attitude, export-oriented food companies are more cautious about genetic modification. For example, Dongguan Jinyan, a well-known rice flour company in Dongguan, has an annual output of about 10,000 tons of rice flour, of which 60% of its products are exported to Europe and the United States. According to reports, in order to successfully export to Jinyan, from 2006 to date, to test whether it contains genetically modified components, the company purchased rice and rice powder production testing costs up to more than 50 million.

In fact, the cautious attitude of overseas markets to genetically modified rice has also affected the attitude of rice companies around the world to genetically modified rice. For example, the Thai Rice Exporters Federation and the Vietnam Food Association signed a memorandum to announce their non-genetically modified rice production policy. India’s Federation of Rice Exporters also strongly urges the rice plantation in the province to not allow the development and cultivation of genetically modified rice.

The refusal to bring about a competitive advantage report believes that consumers’ concerns about food safety have received attention and response from big brands and large supermarkets in the market. They have made a clear commitment to reject GM, and accordingly, will strictly control the supply of raw materials in the supply chain. Quality affects the division of safety responsibility upstream and downstream of the supply chain and the prediction and control of food safety issues. This will have a series of effects on upstream production and raw material supply. It can be predicted that in the near future, the upstream enterprises of rice production will face the refusal of manufacturers and terminal retailers to reject genetically modified raw materials and provide non-genetically modified raw materials.

The report said that scientific research has confirmed that, under natural conditions, genetically modified crops may cause genetic contamination of non-transgenic crops due to pollen drift and cross-infection. Once GM rice is grown in rice-producing areas, it will have a significant economic impact. For example, in August 2006, an GM rice LL601 developed by Bayer CropScience Inc. was mixed into the US rice supply chain, causing US rice prices to fall. The European Union and Japanese markets immediately stopped importing US rice. The largest US rice industry Economic losses amounted to 741 million to 12.9 billion U.S. dollars.

This market analysis report believes that making non-GMO raw material use commitments can enable companies to obtain better business opportunities and market returns. At the same time, as more and more food producers and terminal sales parties promise to reject GM raw materials, they will further affect the economic benefits of food production sources including raw material suppliers and major rice producing provinces.

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