Syngenta

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This article is part of the Center for Media & Democracy's spotlight on global corporations.

Syngenta is a global agribusiness, agrochemical and biotechnology corporation based in Basel, Switzerland. It has substantial interests in the seed industry and genetically modified (GMO) crops. The company produces insecticides, herbicides, fungicides, field crop seeds (soybeans), vegetable seeds (corn, beans, tomatoes), and flowers.

In 2010, the company's operating revenue was $11.6 billion with a gross operating profit of $5.77 billion.[1][2]

In 2009, Syngenta opened a North American subsidiary, Syngenta Seeds, based in Hopkins, Minnesota. The president of Syngenta Seeds is David Morgan, and the company is a wholly-owned, indirect subsidiary of Syngenta AG in Switzerland. It is not traded separately from Syngenta AG on Wall Street. [3]

History

In November of 2000, Novartis combined its agricultural division with that of AstraZeneca to form the first global group focusing exclusively on agribusiness. [4]

Pharmaceutical giants Novartis and AstraZeneca formed Syngenta, from the agrochemical and seed divisions of Novartis and the agrochemicals and biotechnology research divisions of AstraZeneca, to spin off. Syngenta is the world’s second biggest player in agrochemicals and the third biggest seed producer. [5][6]

Business divisions

Syngenta divides itself into three main "reporting areas": Crop protection, seeds and business development. The Crop Protection division produces chemicals including herbicides, insecticides, fungicides and seed treatments to control weeds, insects and diseases in crops. Syngenta's Crop Protection business focuses mainly on herbicides for corn, cereals, soybean and rice; fungicides designed mainly to be used on corn, cereals, fruits, grapes, rice, soybean and vegetables, and insecticides for fruits, vegetables and field crops. Syngenta's "seed care" products are insecticides and fungicides that are applied to plants during the early stages of growth.[7]

Syngenta Crop Protection

Syngenta Crop Protection, Inc. in Greensboro, North Carolina (in the U.S.), is located at 410 South Swing Road in Greensboro, North Carolina 27409-2012. It is Syngenta's United States headquarters for research, and one of Syngenta's main U.S. sites for research and development. The facilities take up 2,970,000 square feet of space. [8] Syngenta's Crop Protection business also manufactures vaccines and antibiotics, rubber, plastic and other chemicals.[9] Syngenta Crop Protection Inc. was formerly called Novartis Crop Protection, Inc. It changed its name to Syngenta Crop Protection Inc. in 2000. The company was incorporated in 1996 and operates as a subsidiary of Syngenta AG. It is the manufacturer of the controversial chemical Atrazine.[10]

Lawsuit over Atrazine contamination of water supplies

In March, 2010, a group of 22 public water providers from six states across the Midwest sued Syngenta Crop Protection, Inc. and Syngenta AG for "allegedly continuing to sell Atrazine in the U.S. despite evidence that the herbicide would contaminate the lakes, rivers, and reservoirs the plaintiffs use to supply drinking water. Although it is banned in the European Union, Atrazine is commonly used elsewhere to fight weeds in corn, grain sorghum, sugar cane and other crops. The plaintiffs are seeking to recover the costs of removing Atrazine from drinking water and a declaration that SAG and SCPI will be liable to pay future costs associated with Atrazine removal." Syngenta tried to get the suit dismissed, but a judge denied the motion in November, 2011.[11]

Lawsuit PR debacle

Syngenta hired the PR firm Jayne Thompson and Associates of Chicago to handle public relations related to a 2004 lawsuit filed in Illinois by 22 separate water systems looking to force the company to pay for removing atrazine from drinking water due to public health concerns. Atrazine is one of the most commonly-detected contaminants in water. Jayne Thompson is the wife of former Illinois Governor James Thompson.

In that case, a 13-page confidential memo written by Thompson was exposed during the discovery phase of the lawsuit. The memo outlined a PR strategy designed to boost the company's legal defense. The Chicago Tribune wrote that

As part of her proposal, Thompson recommended planting stories critical of the Madison County courts, where the suit was filed. A rural community across the Mississippi River from St. Louis, Madison County became infamous about 10 years ago for its high volume of class-action lawsuits and high jury awards. One theme Thompson suggested for a story: "Now, Madison County is going after the family farmers," according to court documents."[12]

Thompson maintains that Syngenta never approved her proposed negative media campaign against the Madison County judicial system, but nevertheless, the memo backfired on both her and her client. Madison County Circuit Judge William Mudge, who ordered the memo be disclosed to plaintiffs, found that Thompson's proposal "has nothing to do with trial strategy … but much to do with fostering a negative public perception of our judicial system."

Stephen Tillery, of the attorney firm prosecuting the case against Syngenta, issued a news release after Mudge ordered the company to turn over Thompson's memo. Tillery criticized Syngenta for resorting to a "campaign of intimidation."[13]

PR efforts

During the time the above lawsuit about atrazine was winding its way through the courts, a press release came out touting the results of two studies funded by Syngenta that allegedly showed that atrazine is beneficial for the environment. The press release is titled, "Atrazine Aids Environment, New Research Finds 50-year-old herbicide encourages conservation tillage and no-till farming - Reduces soil erosion by up to 85 million tons annually - University of Wisconsin-Madison economist to present findings at January Wisconsin Crop Management Conference." The release stated, "Findings from the two studies show atrazine and its sister triazines generate a $4.4 billion consumer surplus annually. Combining the consumer surplus estimates with the soil erosion benefits, atrazine's value to the U.S. economy totals up to $4.8 billion, with most of these benefits going directly to consumers.[14]

Revenues

In 2010, the company's operating revenue was $11.6 billion with a gross operating profit of $5.77 billion. 2011 revenues are estimated to hit $13.2 billion, and in 2014, the company is expected to make $14.2 billion. [15][16]

In the fiscal year ending in December of 2008, Syngenta reported sales of $11.6 billion dollars, with a gross operating profit of $5.89 billion, and 19,300 employees. [17]

Lobbying and lobbying expenditures

Syngenta spent a total of $410,000 on lobbying in 2011, $680,000 in 2010, $975,000 in 2009, $690,000 in 2008, $1.2 million in 2007, and $4.36 million in 2006, and $960,000 in 2005[18] The company reported a total of $600,000 in lobbying expenses for 2011.[19]

In 2011, Syngenta paid $90,000 to the Alpine Group, $180,000 to Cornerstone Government Affairs, $90,000 to the EOP Group, $240,000 to the Podesta Group.[20]

Former Senator Robert Dole was a lobbyist for Syngenta in 2004.[21]

PAC contributions

The official name of Syngenta's PAC is the Syngenta Corporation Employee Political Action Committee (Syngenta PAC).

As of January, 2, 2012, in the 2012 election cycle, Syngenta had given a total of $90,000 to agribusiness-related political action committees, of which 37 percent went to Democrats and 63 percent to Republicans.[22]

In the 2010 election cycle, Syngenta's PAC spent $285,750 in contributions to federal candidates, with 58 percent going to Democratic candidates and 42 percent going to Republican candidates. [23]

In the 2008 election cycle, Syngenta's PAC spent a total of $226,120 on contributions to federal candidates, of which 46 percent went to Democrats and 54 percent went to Republicans.[24]

In the 2006 election cycle, Syngenta's PAC spent a total of $156,020 on contributions to federal candidates, with 30 percent going to Democrats and 70 percent to Republicans.[25]

In the 2004 election cycle, Syngenta's PAC spent $95,200 on contributions to federal candidates, of which 25 percent went to Democrats and 75 percent to Republicans.[26]

Syngenta CEO Michael Mack donated $1,000 to Syngenta's PAC in the 2012 election cycle. [27][28]

Executive compensation

Syngenta's CEO and Executive Director, Michael Mack, was paid a total compensation in 2010 of $5.45 million. That figure included $1.25 million in salary, a bonus of $206,555, $2.56 million in stock awards, $127,295 in various other awards, and about $380,000 in pension and "deferred compensation earnings."[29] [30]

The Chairman of Syngenta's Board, John Martin Taylor, earned a total compensation package in 2010 of just over $2.46 million, of which $1.85 million was in cash, $382,616 was in stock and $222,880 was in "other compensation."[31]

Jurg Witmer, Syngenta's Vice Chairman of the Board, in 2010 earned a total compensation package of $364,765, of which $342,857 was in cash and $21,908 was in "other compensation."[32]

Board of Directors

Board of Directors (as of December 31, 2010):

Animal testing

Syngenta does animal testing.

Contract testing

Syngenta contract tests out to Huntingdon Life Sciences (HLS). [34] HLS is the 3rd largest contract research organization (CRO) in the world and the largest animal testing facility in all of Europe. Firms hire CROs to conduct animal toxicity tests for agrochemicals, petrochemicals, household products, pharmaceutical drugs and toxins. HLS has a long history of gross animal welfare violations. See also Huntingdon Life Sciences.

Food safety issues

Syngenta inherits the dubious legacies of both parent companies, promoters of GMO (genetically modified organism) technology and manufacturers of hazardous chemicals (paraquat and atrazine11). In the late 1990s Novartis and AstraZeneca wanted to establish themselves as "lifesciences" companies in order to exploit potential synergies between their pharmaceutical, chemical and agricultural sectors. Both invested heavily in acquiring seed and biotechnology companies. The Syngenta spin-off was a result of the poor performance of both companies' agribusiness divisions in 1999 and at least partially due to the global backlash against GM crops.

The creation of Syngenta enabled the parent companies to make considerable savings and rid themselves of their controversial agricultural biotechnology ventures. Syngenta has so far managed to avoid the public vilification of Monsanto, while it quietly develops controversial agricultural biotechnology, including genetic use restriction technologies (GURTs)/traitor technology. [35]

Global GMOs & herbicide market

The top biotechnology companies are Monsanto, DuPont, Syngenta and Bayer. (Syngenta is a subsidiary of parent companies AstraZeneca and Novartis. Aventis' agribusiness division was bought out by Bayer.) They account for almost 100% of the genetically engineered seed and 60% of the global pesticide market. Thanks to recent acquisitions, they now own 23% of the commercial seed market. In 1999, almost 80% of total global transgenic acreage was planted in GMO soy, corn, cotton and canola. Until then, farmers could spray herbicides before planting, but not after, as herbicides would kill the intended crop. The other 20% of genetically modified acreage is planted with crops that produce pesticides. Monsanto’s "New Leaf" potato kills potato beetles, but is itself registered as a pesticide with the Environmental Protection Agency (EPA). The five largest biotech companies in the world are also the five largest herbicide companies. GMOs ensure a continuous and ever-expanding market for their agrochemicals. [36]

Under current policy, the government provides large subsidies to farmers to produce grains, in particularly corn and soybeans. Livestock producers use corn and soy as a base for animal feed as they are protein rich and fatten up the animals. They are also cheap (due to government subsidies.) Livestock consumes 47% of the soy and 60% of the corn produced in the US. [37] See also Food and Drug Administration.

Human rights & environmental abuses

Activists demand Syngenta leave Brazil

In December of 2007, hundreds of activists broke into Syngenta's agrochemical plant in Sao Paulo, Brazil. According to a company spokesperson, 50 employees were expelled and production was shut down. Members of the Landless Rural Workers’ Movement (MST) and its allied group Via Campesina, destroyed genetically-modified corn and soy seedlings at a Syngenta farm in the northeastern state of Ceara. The groups accused Syngenta of attacking landless workers and violating environmental laws and demanded that Syngenta leave Brazil.

Activist shot and killed protesting GMO fields

In October of 2007, an activist was shot and killed during a protest at a Syngenta farm in the southern Parana state. According to the MST, the farm illegally produced genetically modified crops (GMO)'s within a protected environmental zone close to the internationally acclaimed Iguacu water falls. The Paraná State Federal Justice decided that experiments with GMOs in the surroundings of the Iguaçú National Park are illegal. According to Judge Vanessa Hoffman, the park has a a 10 km buffer zone and the company was fined R$ 1 million by Brazilian environmental authorities.

Syngenta is the world's largest agrochemical company. According to a company statement, it was "dismayed by the occupations" but denied any participation in the October shooting death. According to activists, the company's private security force at the farm were responsible for the shooting death of Valmir Mota de Oliveira. The MST and other groups frequently occupy farms, block highways, torch crops and stage rallies to pressure the government to give land to the poor. In response, landowners hire armed guards and hit squads to repel invasions. Landless militants have also blocked railroads run by Brazilian mining companies, interupting the flow of iron ore to foreign markets.

Industry and agricultural lobbyists have urged the government to crack down on landless movements, as they "undermine investment conditions in Brazil." [38]

Key executives

Contact

Syngenta AG
Schwarzwaldallee 215
Basel
4058
Switzerland
[40]

Phone: +41-61-323-11-11

Toll Free: 800-759-4500

Web address: http://www.syngenta.com/en/index.aspx

SourceWatch articles

External resources

External articles

References

  1. ↑ Bloomberg Business Week Syngenta AG-ADR (SYT:New York), Earnings report, January 17, 2012
  2. ↑ Forbes.com Syngenta AG Annual Income Statement, database, accessed January 17, 2012
  3. ↑ Dustin Thompson, Corporate Counsel Letter to teh South Dakota Public Utilities Commission - Warehouse Division, (pdf) Letter, November 22, 2011
  4. ↑ "Company History", Syngenta, accessed December 2008.
  5. ↑ Syngenta: A Corporate Profile, Corporate Watch, November 2002
  6. ↑ Securities and Exchange Commission Form 20-F/Introduction/Nature of business, government filing, February 18, 2010
  7. ↑ Syngenta/U.S. Securities and Exchange Commission [http://www.syngenta.com/global/corporate/SiteCollectionDocuments/pdf/reports/syngenta-2010-form-20-f.pdf Form 20 (ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: December 31, 2010)], Government filing, accessed January 18, 2012, at pages 10 and 14
  8. ↑ Syngenta/U.S. Securities and Exchange Commission Form 20 (Annual Report Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934, for the fiscal year ended: December 31, 2010), Government filing, accessed January 18, 2012, at pages 28 and 51
  9. ↑ MacRae's Blue Book Syngenta Crop Protection, database, accessed January 18, 2012
  10. ↑ Bloomberg BusinessWeek Syngenta Crop Protection Inc., database/profile, accessed January 18, 2012
  11. ↑ Ross Todd, KorienTillery.com Syngenta Loses Bid to Duck Claims in Suit Over Herbicide Contamination, press release/announcement, November 28, 2011
  12. ↑ Ameet Sachdev PR executive sets off firestorm with proposal to discredit Madison County court system, Chicago Tribune, May 28, 2011
  13. ↑ Ameet Sachdev PR executive sets off firestorm with proposal to discredit Madison County court system, Chicago Tribune, May 28, 2011
  14. ↑ Syngenta/MarketWatch Atrazine Aids Environment, New Research Finds, Press release, January 5, 2012
  15. ↑ Bloomberg Business Week Syngenta AG-ADR (SYT:New York), Earnings report, January 17, 2012
  16. ↑ Forbes.com Syngenta AG Annual Income Statement, database, accessed January 17, 2012
  17. ↑ Company Description: Syngenta AG, Hoovers, accessed January 2010
  18. ↑ Center for Responsive Politics/Senate Office of Public Records OpenSecrets.org/Annual Lobbying by Syngenta Corp., database, accessed January 17, 2012
  19. ↑ The Center for Responsive Politics Annual Lobbying by Syngenta Corp, database, accessed January 17, 2012
  20. ↑ Center for Responsive Politics Lobbying Spending Data/Lobbyists representing Syngenta Corp., database, accessed January 17, 2012
  21. ↑ Citizens for Responsibility and Ethics in Washington Council on Environmental Quality - National News at the time the White House e-mail went missing (pdf), November 1, 2003 - January 11, 2004
  22. ↑ Center for Responsive Politics (based on Federal Elections Commission data) Syngenta Corp. 2012 PAC Summary Data, database, accessed January 17, 2012
  23. ↑ Center for Responsive Politics Syngenta Corp. PAC Expenditures in the 2010 election cycle, database, accessed January 17, 2012
  24. ↑ Center for Responsive Politics/Federal Elections Commission 2008 Syngenta PAC Summary Data, database, accessed January 17, 2012
  25. ↑ Center for Responsive Politics/Federal Elections Commission 2006 Syngenta PAC Summary Data, database, accessed January 17, 2012
  26. ↑ Center for Responsive Politics/Federal Elections Commission 2004 Syngenta PAC Summary Data, database, accessed January 17, 2012
  27. ↑ Center for Responsive Politics Donor Query/Michael Mack, database, accessed Janaury 17, 2012
  28. ↑ Federal Elections Commission FEC Form #X-Report of Receipts and Disbursements, database of PAC filings, accessed January 17, 2012
  29. ↑ Forbes.com Michael Mack, database/profile, accessed January 17, 2012
  30. ↑ Syngenta Mike Mack, Syngenta CEO, to keynote Virtual Water Sustainability Summit, corporate press release, February 4, 2011
  31. ↑ Forbes.com Martin Taylor, Chairman of the Board - Syngenta, profile/database, accessed January 17, 2012
  32. ↑ Forbes.com Jurg Witmer, Vice Chairman of the Board, Syngenta, profile/database, accessed January 17, 2012
  33. ↑ Syngenta Annual Report, 2010, corporate website, Governance/Board of Directors, accessed January 17, 2012
  34. ↑ Inside Customers, SHAC.net, accessed December 2009
  35. ↑ Syngenta: A Corporate Profile, Corporate Watch, November 2002
  36. ↑ John Robbins Genetic Engineering, Part I, The Food Revolution, accessed December 2009
  37. ↑ The Issues: Corn and Soy, Sustainable Table, accessed December 2009
  38. ↑ Raymond Colitt, Vicki Allen Brazil's landless peasants occupy Syngenta plants, Reuters, December 2007
  39. ↑ Company Description: Syngenta AG, Hoovers, accessed January 2010
  40. ↑ Company Description: Syngenta AG, Hoovers, accessed January 2010
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