Cargill Sues Syngenta Seed over China Shipments

The company said it lost $90 million after corn grown from genetically modified Syngenta seed was refused by China.

September 13, 2014 | Source: Star Tribune | by Jim Spencer

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Cargill Inc. sued Syngenta Seeds Inc. on Friday in an unusual legal battle over genetically modified food that both companies support.

The fight comes after China refused to accept ships Cargill loaded that were filled with corn grown from genetically modified Syngenta seed.

Despite being one of the world’s most vocal and powerful backers of genetically modified seeds, Cargill accused Syngenta Seeds of shipping the corn without first ensuring that Chinese officials would allow it into their country. Both Cargill and Syngenta Seeds are based in Minnetonka.

“I want to be clear about this,” Dave Baudler, president of Cargill AgHorizons U.S., said in a statement released by the company. “Cargill is a supporter of innovation and the development of new GMO [genetically modified] seed products. But we take exception to Syngenta’s actions in launching the sale of new products   before obtaining import approval in key export markets for U.S. crops.”  

Syngenta countered with a statement that called Cargill’s suit “without merit.”

The seed in question – called Agrisure Viptera trait (MIR162) – “was approved for cultivation in the USA in 2010,” the company said. “Syngenta commercialized the trait in full compliance with regulatory and legal requirements. Syngenta also obtained import approval from major corn-importing countries.”

China has declared genetically modified food safe, but in August the country’s Ministry of Agriculture refused to renew certificates that allowed Chinese research groups to grow genetically modified rice and corn. The country also refuses to import foods with genetic modifications not approved by the government.

Cargill says that since November 2013, China’s Ministry of Agriculture has refused more than 1.4 million metric tons of corn after it found traces of Viptera on corn-carrying ships. Cargill claimed $90 million in damages from the rejections.

A Cargill spokesman said the corn in question was diverted to other ports where it was accepted. But Cargill wants to send a message about Syngenta’s business practices, which Cargill says do not meet industry standards and are penalizing other corporations.