Cargill Suit: Syngenta AG Action Killed US Corn Trade With China

Syngenta AG SYT is getting blamed for costing U.S. farmers and grain exporters $2.9 billion by widely commercializing a genetically altered corn seed without first obtaining import approval by China for the resulting commodity.

Since November, China has rejected U.S. corn corn imports because of the issue, "virtually halting U.S. corn trade with China," according to a lawsuit brought against Syngenta in Louisiana state court Friday by the privately held agribusiness giant Cargill Inc.

The resulting uncertain trade situation has cost farmers and exporters $2.9 million, according to a study by the National Grain and Feed Association cited by Cargill.

Cargill is seeking damages of $90 million.

Syngenta, based in Basel, Switzerland, called the suit "without merit" and noted that the product, Agrisure Viptera trait MIR162 obtained U.S. approval in 2010.

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"Syngenta also obtained import approval from major corn importing countries. Syngenta has been fully transparent in commercializing the trait over the last four years," the company said.

Conversely, Cargill's North American Grain and Oilseed President Mark Stonacek said Syngenta "put the ability of U.S. agriculture to serve global markets at risk, costing both Cargill and the entire U.S. agricultural industry significant damages.”

At the close of Monday's session, Syngenta traded at $68.38 a share, nearly unchanged from the prior trading day.