In a twist in the Syngenta GMO corn lawsuits, producers of Milo are now allowed to join the legal battle over Viptera.
Milo is a common name for grain sorghum, commonly used as an alternative crop for gluten-free products. Recent reports indicate thatViptera corn seed had also affected Milo crops.
The problems for Syngenta started in 2010, when it applied for import approval from Chinese authorities regarding the genetically modified (GMO) corn seed containing the MIR 162 genetic trait. This GMO strain was meant to modify the corn to be more resilient and better protected against crop pests like black cutworms and corn earworms.
But China held off on approval. Despite knowing this as early as 2011, Syngenta still sold the Viptera corn seed to farmers, when the approval process normally takes up to three years on average.
Furthermore, Syngenta had been reportedly warned by different industry participants not to introduce the Viptera corn seeds, because of the lack of export markets, and the potential devastation it could have on the American corn market.
Overview of Syngenta Corn Allegations
Several Milo users have filed Syngenta lawsuits for allegedly causing them severe economic damages after they learned that China had not approved Viptera corn for export, creating a huge hole in the U.S. corn market.
With the recent approval for Milo farmers to join the fight, Jason R. from Arkansas, Wes C. from Kansas, and Darvin B. from Missouri have filed lawsuits against Syngenta. These farmers planted Milo seeds between 2013 and 2014 but had still suffered financially because China also refused the Milo crop exports.
Milo is known as a drought-tolerant crop, with about 40 percent of domestic Milo going into ethanol production. The remaining production is put into other consumer products including flour, bread, alcoholic beverages, syrup, pet food, brooms, and building materials.
Milo has also gained popularity with consumers who cannot tolerate gluten, and has been used as an alternative livestock feed. Milo is grown in only a few states known as the sorghum belt, which runs from South Dakota to South Texas and includes Kansas, Missouri, Arkansas, Texas, Oklahoma, Colorado, Nebraska, South Dakota, Illinois, Louisiana, Mississippi, and New Mexico.
Texas and Kansas make up two-thirds of the nation’s Milo crop territory. The Chicago Board of Trade does not list or trade Milo separately, with the cash price for Milo set directly by the future price of corn.
After learning of China’s rejection of Viptera, the price of corn dropped significantly.
The economic loss has also been noted by the National Grain and Feed Association, which showed the correlation between losses in the corn market and the negative influence on other crop prices.
The lawsuit accuses Syngenta of false advertising and concealing information. The case is filed as part of In Re: Syngenta AG MIR162 Corn Litigation, MDL No. 2591, in the U.S. District Court of Kansas.
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