BEIJING - A company at the heart of Iowa's corn production is also pushing to become one of China's major suppliers of the crop.

Pioneer Hi-Bred International Inc, the largest US producer of hybrid seeds for agriculture and based in Iowa, has recently captured 9 percent of China's market share for corn seeds.

Pioneer produces and sells hybrid seed corn in nearly 70 countries worldwide and is a major subsidiary of DuPont.

"Over the next five years, we will continue the market growth in seed production capacity through a combination of identifying new production areas and construction of new seed production facilities," said William Niebur, vice-president of DuPont and general manager of Pioneer (China).

Last year, Pioneer opened three production areas in China, two in Gansu and one in the Xinjiang Uygur autonomous region.

It also wants to work with the central government in its "Go West" campaign, a policy adopted by China to grow its less developed western regions. Pioneer said it will work closely with local farmers to seek and identify suitable regions for new investment, employment and production opportunities.

"China is in the top-tier of markets globally for seed opportunities, along with selected markets in North America, Latin America and Europe," Niebur said.

Though China reportedly produced 185 million tons of corns in 2011, a 4-percent increase from the previous year, according to predictions by the China National Grain and Oils Information Center, the nation's demand on foreign corn also rose rapidly.

In 2011, China imported 1.68 million tons of corn from the US, the highest figure in 15 years, according to the US Department of Agriculture. China imported 1.75 million tons of corn that year.

"Boosted by the booming animal feed processing and bio-chemical market, China's demand for corn has surged significantly during recent years, more than 70 percent of the country's annual corn outputs were consumed by these two industries," said Sam Niu, assistant director of the Beijing division of the US Grains Council.

"The current level of Chinese corn productivity is very high on an Asian basis, but on a global basis it is still at a level where great improvements can be made," Niebur said. "Chinese farmers want additional products beyond the current lineup, and we are working closely with registration offices in each province to bring new genetics and hybrids to the market."

Supported by more than 500 retailers in different provinces, the Chinese division of Pioneer has 20 high-yielding hybrids for sale in China. It said it is currently researching 15 new hybrids that could be launched in the next five years.

Since establishing offices in China in 1997, Pioneer has employed almost 800 workers in China. It plans to increase its research centers in the country from a current total of seven to 15 by 2017.

Niebur said that ensuring sufficient corn supply is critical to China's development and suggested that the Chinese government quickly assess agricultural bio-technologies and create exchanges in technology with leading agricultural developers in the world.

"Bio-technology hybrid corn products are being grown in 29 countries around the world today. One day it will come to China. We believe the government will make the appropriate decision on bio-technology when it feels that the farmers and market are prepared and ready," Niebur said.

David Zilberman, a professor specializing in the application of agricultural bio-technology in developing nations at the University of California, Berkeley, said China will gain immensely from this technology.

"China has already adopted genetically modified cotton technology and the impacts on health and yield have been substantial. Bio-technology has increased yields especially in developing countries. The country to a certain extent can benefit from adoption of bio-technology," he said.

Zilberman said China's reluctance to adopt bio-technology in corn is largely because it wants to be independent of other nations in terms of food technology.

"But if collaboration with US companies such as Pioneer or Monsanto could accelerate the development and introduction of bio-technology, that would reduce vulnerability to pest, increase grain supplies and cut down food price inflation, it is a worthwhile choice," he said.

According to a government policy document for 2012 that was issued this month, China will increase its investment in the development of agricultural bio-technology and will offer subsidies for major grain-producing areas and farming cooperatives. It will also reportedly increase direct subsidies for farmers.

Niebur said DuPont is willing to expand its current partnerships with the Chinese government as well as institutes and private sectors to ensure that review of its bio-technology can be tested and examined.

The company hopes to gain a stronger commitment from the Chinese government through competition.

"When local companies become bigger and more competitive, that will help the government to feel more comfortable and eventually modify the policy, and so allow foreign companies to increase their investments, patent technologies, talents and new jobs in China," said Jennie Shen, strategy and business development director of Pioneer (China).

In China, foreign companies are allowed to hold up to 49 percent of shares in a joint venture on crop seed businesses such as corn, wheat and rice.

"We are still being limited by local regulations, this is why we are very willing to see Chinese seed companies to grow bigger and more professional," she said.

China Daily