Cargill sues Syngenta over bungled GMO corn export to China

Cargilltoday said it has filed a damage suit against Syngenta Seeds, Inc. in the Louisiana state court in the US for shippingits AgrisureViptera® (MIR 162) corn seed before the product got import approval from China.

Cargill''s grain export facilities in Reserve and Westwego, Louisiana, loaded the vessels that were destined for, and rejected by, China.

"Unlike other seed companies, Syngentahas not practiced responsible stewardship by broadly commercialising a new product before receiving approval from a key export market like China," said Mark Stonacek, president of Cargill Grain & Oilseed Supply Chain North America. "Syngenta also put the ability of US agriculture to serve global markets at risk, costing both Cargill and the entire US agricultural industry significant damages."

Since mid-November 2013, China has rejected imports of US corn due to the presence of Syngenta''s MIR 162 trait,whichhas yet to get import approval from Chinese authorities, virtually halting US corn trade with China, Cargill said.

A study by the National Grain and Feed Association (NGFA) estimated that US exporters and farmers lost up to US$2.9 billion because of the uncertain trade environment.

Stonacek said that seed companies, farmers, grain handlers, exporters and others have a shared responsibility to maintain and preserve market access when introducing new technology. "The risks- as well as the rewards- need to be shared across the marketplace by all of the stakeholders," Stonacek said.

But "Syngenta has not accepted its share of the risks associated with MIR 162," he added.

Dave Baudler, president of Cargill AgHorizons US, said Cargill is an advocate for new technology including new GMO seed products.

"Innovations in seeds are tools that can allow US agriculture to meet the growing demand for food, feed and fuel," he said. AgHorizons U.S. is Cargill''s network of grain storage and farm service centres and purchases corn from farmer customers.

"Responsible stewardship of agricultural innovation- from creation through its development and marketing- requires everyone''s cooperation and allows everyone to benefit," Baudler said.

"I want to be clear about this: Cargill is a supporter of innovation and the development of new GMO seed products. But we take exception to Syngenta''s actions in launching the sale of new products like MIR 162 before obtaining import approval in key export markets for US crops. Syngenta''s actions are inconsistent with industry standards and the conduct of other biotechnology seed companies."

Stonacek said that filing the lawsuit came only after talks with Syngenta proved unsuccessful. "This issue is important to US agriculture," hesaid.

"Marketing MIR 162 before receiving approval from China closed off that significant export market to US farmers and exporters. Cargill believes that Syngenta continues to not accept its role in shared responsibility by moving ahead this year with the commercialisation of Duracade, which also is not approved in China and other key export markets."

In its press release, Cargill did not, however, disclose the damage compensation it was seeking from Syngenta.