Cargill sues Syngenta over China’s rejection of genetically modified corn

Cargill has sued a unit of Switzerland-based Syngenta AG for damages caused due to China’s rejection of genetically modified US corn, which cost the company around $90m.

The grain traders have been accused by Cargill of selling the seeds to American farmers before secuing import approval from China, which is a major buyer.

Cargill has sued Syngenta with charges of negligence and knowing, reckless or willful misconduct, as well as unfair trade practices, as the Agrisure Viptera corn variety or MIR 162 can be found across the US corn supply, closing the Chinese market to US supplies.

According to the company’s filing, it holds Syngenta responsible for "deliberate, knowing and continuing contamination of the US corn supply with a product that it understood all along would substantially impair the US grain industry’s ability to sell corn and other commodities to buyers in China."

China has rejected imports of hundreds of thousands of tonnes of US corn, including from vessels loaded by Cargill in Louisiana, due to the presence of the MIR 162 trait, according to the lawsuit. In April, Cargill stated that China’s rejection of US corn shipments had contributed to a 28% drop in its earnings for the quarter ending 28 February.

Syngenta, however, said in a statement that the lawsuit is without merit.

Reuters quoted the National Grain and Feed Association (NGFA) as saying that trade disruptions have made the US grain industry incur losses up to $2.9bn.

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Image: Cargill has sued Syngenta over China’s rejection of genetically modified US corn. Photo: courtesy of foto76 / freedigitalphotos.net.