September 15, 2014

Cargill is suing Syngenta Seeds for releasing its genetically modified variety of corn MIR-162 without prior approval from Chinese authorities, citing a lack of ‘responsible stewardship’.  Cargill is claiming an estimated $90 million in losses due to China rejecting corn shipments since late 2013 that contain the strain of corn, and has filed for damages after talks between the two companies were unsuccessful.  In April 2014 Cargill posted a 28% drop in earnings to US$445 million for the December through February quarter, blamed on losses associated with issues surrounding corn trade with China.  And Cargill claims that by releasing MIR-162 Syngenta has put the U.S. agricultural industry at risk of not being able to trade on global markets.  The China rejection of U.S. corn shipments has also caused losses for other traders such as Archer Daniels Midland and Toepfer and could spark additional lawsuits against Syngenta who has been asked by the National Grain & Feed Association and the North American Export Grain Association to place MIR-2162 on hold until approved by Beijing.  Syngenta has dismissed the lawsuit as being ‘without merit’ stating that the company followed all legal procedures in commercializing MIR-162 after receiving U.S. approval in 2010.

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