Dispute Over GMO Corn Affects Grain Companies

The bankruptcy filing of an Illinois grain-shipping company has called attention to damages resulting from a Swiss agribusiness group who introduced a biotech corn into shipping channels before officials in China approved it.

The Wall Street Journal reported that Trans Coastal Supply Co., based in Decatur, Ill., sought Chapter 11 bankruptcy protection from creditors in July, blaming losses and broken sales contracts after China detected the genetically modified corn in 2013 and began rejecting shipments.

Syngenta Ag, the Swiss business, began selling Viptera corn in the U.S., Argentina, and Brazil in 2011, with the countries' approval, the Journal reported. China, however, did not approve Viptera until late 2014.

Pamela Moses, Trans Coastal’s president, told employees and customers in a letter that the company “had been led to believe” that the Syngenta strain was soon to be approved for import into China and that until then it wouldn’t turn up in shipping channels. Trans Coastal ships corn, soybeans and other commodities to ports across Asia, including China.

“Neither of these things turned out to be true,” Moses wrote. “The predictable result was a downward spiral that included abandoned cargos, rejected documents, rejected cargos, devaluation of markets, and defaulted sales contracts by customers uncertain of their ability to accept delivery, which, combined with our losses resulting from the opposite purchase contracts have debilitated our company.”

Grain companies and farmers have blamed Syngenta for hundreds of millions of dollars in losses that they say resulted from rejected shipments and declines in the market price for corn, the Journal said. More than 180 lawsuits have been filed; among plaintiffs are Archer Daniels Midland Co. and Cargill Inc.

Syngenta has rejected the arguments and maintained that the company was transparent in marketing its genetically modified corn. S