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Look for Syngenta to ride the next crop protection wave

It goes without saying that agricultural commodity-related plays fell out of Wall Street's favor with the onset of the global recession. Crop protection and seed company Syngenta Ag (NYSE: SYT) was not exempt from the above, but now that signs of strengthening demand are appearing in key global regions, institutional investors are repositioning themselves back in emerging market plays.

In general, analysts like Syngenta's product mix, demonstrated business model, experienced management team, and relative investment safety.

Continue reading Look for Syngenta to ride the next crop protection wave

Target (TGT) receives EPA fine for mislabeled products

Target Corp. (NYSE: TGT) will be paying about $41,000 in fines to the Environmental Protection Agency (EPA) shortly, as the federal agency determined that the nation's second-largest discount retailer incurred violations of federal rules on the labeling, distribution and sale of pesticide products. Sounds harsh, right? But, this was not just pesticide out in the lawn and garden area.

The fines stem from the marketing of anti-microbial toilet seats and mattress pads, along with pillows and household cleaner that claimed to be "germ-killing" products. That's a no-no unless there is pesticide involved, according to the FDA. Funny, since I see "kills germs" claims on so many household products these days it would make a normal shopper's head spin.

According to the FDA, Target sold and distributed unregistered pesticides from its stores and on its website based on the above-referenced products. Most likely, Target was just the retail distributor of these products and has very little (if any) oversight to the marketing tactics used on them. But, this brings up a larger point: at what point should a retailer be responsible for all the marketing claims used on all the products in its stores? Or, should it at all?

Although Target is removing the "germ-killing" claims from the products, who was to blame here? If these were Target private-label brands, we may have a problem. But, if the products in question were from other companies and brands not related specifically to Target, are those companies under the auspices of the EPA as well? This reminds me of the recent lead paint recall that affected many toy retailers. After the smoke cleared, the manufacturers were found liable -- not the distributing retailers.

U.S. to India: play fair with our sodas!

The country of India, says PepsiCo, Inc. (NYSE:PEP) and The Coca-Cola Company (NYSE:KO), has not been playing fair. An environmental group claimed that the soda giants' Indian bottling plants were turning out beverages stocked with lots of toxic chemicals, in addition to the usual corn syrupy goodness. These claims resulted in Pepsi and Coke bans in many Indian states.

Not cool, said the U.S. government in a letter to India's leaders. The letter from Undersecretary for International Trade Franklin Lavin expressed "confidence the government of India will deal with the companies on a level playing field," according to an embassy spokesman.

Immediately my mind frolics in the fertile meadows of sports metaphor land, but I end up with "turnabout's fair play." U.S. beverage companies are often blamed for operating in a rarefied stratosphere of subsidized ingredients (hello high fructose corn syrup) and trade officials more than happy to stand up for the soda playground bullies. Some reports indicate that Coke and Pepsi make up well over 80% of the Indian market -- so much for victimization.

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Last updated: November 24, 2009: 12:24 AM

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