Dive Brief:
- Cargill has filed a lawsuit against Syngenta AG, alleging the seed maker acted recklessly and irresponsibly in deciding to sell a new strain of GMO seed to China without first ensuring regulatory approval.
- Corn grown from Syngenta's new Agrisure Viptera corn seed strain, which China does not accept, was loaded onto ships at Cargill facilities. Cargill was forced to reroute ships that were enroute to Asia.
- By November, China moved to ban all corn imports from the U.S. over concerns about Agrisure Viptera. That has cost American farmers some $2.9 billion.
Dive Insight:
It's safe to say the entire grain-shipping industry is pretty angry with Syngenta. By marketing the new strain of seed to American growers before winning approval from China, Syngenta put the entire American corn industry and shippers like Cargill at risk. In early February both Cargill and rival Bunge said they would no longer transport Syngenta corn. A few days later, rivals ADM and Consolidated Grain followed suit.
Cargill's decision to file a lawsuit is just the latest move in this fight. But it will likely turn out to be the most significant. At issue is what will turn out to be the major issue in world trade of GMO food — who is responsible for ensuring that a crop meets the regulations of an importing country: the seed maker or the shipper?