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, and spun it 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]

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. [11][12]

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. [13]

2012 Lobbying Statistics

Lobbying Firm Amount Reported Issue
Deaths 110 $820,000,000
Heart attacks 180 $19,000,000
Asthma attacks 1,700 $90,000
Hospital admissions 84 $1,900,000
Chronic bronchitis 66 $29,000,000
Asthma ER visits 89 $33,000

Previous 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[14] The company reported a total of $600,000 in lobbying expenses for 2011.[15]

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.[16]

Former Senator Robert Dole was a lobbyist for Syngenta in 2004.[17]

The company spent over $610,000 and Syngenta Crop Protection spent over $390,000 in direct lobbying costs focusing on the federal pesticide laws, biotechnology and EPA’s review of the company’s Atrazine product.[18] In the first 3 months of 2012, the Syngenta Crop Protection has already spent $270,000 on the same issues.[19]

6 of the corporation's 10 lobbyists are revolving door, and have worked for government at some point, including James Richards and Thomas Hunt Shipman who worked for the Dept of Agriculture.[20]

PAC contributions

The official name of Syngenta's PAC is the Syngenta Corporation Employee Political Action Committee (Syngenta PAC) and is funded by employee contributions.

As of June 30, 2012 Syngenta PAC raised $217,387 and spent $191,815 for 2012 elections.[21] The largest recipient is Rep. Colin Peterson of Minnesota, one of the ranking leaders on the House Ag Committee.[22]

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.[23]

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. [24]

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.[25]

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.[26]

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.[27]

Syngenta CEO Michael Mack donated $1,000 to Syngenta's PAC in the 2012 election cycle. [28][29]

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."[30] [31]

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."[32]

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."[33]

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). [35] 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. [36]

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. [37]

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. [38] See also Food and Drug Administration.

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. ↑ Bloomberg Business Week Syngenta AG-ADR (SYT:New York), Earnings report, January 17, 2012
  12. ↑ Forbes.com Syngenta AG Annual Income Statement, database, accessed January 17, 2012
  13. ↑ Company Description: Syngenta AG, Hoovers, accessed January 2010
  14. ↑ Center for Responsive Politics/Senate Office of Public Records OpenSecrets.org/Annual Lobbying by Syngenta Corp., database, accessed January 17, 2012
  15. ↑ The Center for Responsive Politics Annual Lobbying by Syngenta Corp, database, accessed January 17, 2012
  16. ↑ Center for Responsive Politics Lobbying Spending Data/Lobbyists representing Syngenta Corp., database, accessed January 17, 2012
  17. ↑ 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
  18. ↑ The Center for Responsive Politics Annual Lobbying by Syngenta Corp, database, accessed July 18, 2012
  19. ↑ The Center for Responsive Politics Annual Lobbying by Syngenta Corp, database, accessed July 18, 2012
  20. ↑ The Center for Responsive Politics Lobbyists representing Syngenta AG, database, accessed July 18, 2012
  21. ↑ Center for Responsive Politics Syngenta Corp. 2012 PAC Summary Data, database, accessed July 18, 2012
  22. ↑ Center for Responsive Politics Syngenta Corp Contributions to Federal Candidates, database, accessed July 18, 2012
  23. ↑ Center for Responsive Politics (based on Federal Elections Commission data) Syngenta Corp. 2012 PAC Summary Data, database, accessed January 17, 2012
  24. ↑ Center for Responsive Politics Syngenta Corp. PAC Expenditures in the 2010 election cycle, database, accessed January 17, 2012
  25. ↑ Center for Responsive Politics/Federal Elections Commission 2008 Syngenta PAC Summary Data, database, accessed January 17, 2012
  26. ↑ Center for Responsive Politics/Federal Elections Commission 2006 Syngenta PAC Summary Data, database, accessed January 17, 2012
  27. ↑ Center for Responsive Politics/Federal Elections Commission 2004 Syngenta PAC Summary Data, database, accessed January 17, 2012
  28. ↑ Center for Responsive Politics Donor Query/Michael Mack, database, accessed Janaury 17, 2012
  29. ↑ Federal Elections Commission FEC Form #X-Report of Receipts and Disbursements, database of PAC filings, accessed January 17, 2012
  30. ↑ Forbes.com Michael Mack, database/profile, accessed January 17, 2012
  31. ↑ Syngenta Mike Mack, Syngenta CEO, to keynote Virtual Water Sustainability Summit, corporate press release, February 4, 2011
  32. ↑ Forbes.com Martin Taylor, Chairman of the Board - Syngenta, profile/database, accessed January 17, 2012
  33. ↑ Forbes.com Jurg Witmer, Vice Chairman of the Board, Syngenta, profile/database, accessed January 17, 2012
  34. ↑ Syngenta Annual Report, 2010, corporate website, Governance/Board of Directors, accessed January 17, 2012
  35. ↑ Inside Customers, SHAC.net, accessed December 2009
  36. ↑ Syngenta: A Corporate Profile, Corporate Watch, November 2002
  37. ↑ John Robbins Genetic Engineering, Part I, The Food Revolution, accessed December 2009
  38. ↑ The Issues: Corn and Soy, Sustainable Table, accessed December 2009
  39. ↑ Company Description: Syngenta AG, Hoovers, accessed January 2010
  40. ↑ Company Description: Syngenta AG, Hoovers, accessed January 2010
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