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PANNA Corporate Profile: Bayer AG

PANNA Corporate Profile: Bayer AG

May 2005

Today’s food systems are an outgrowth of a long and on-going process of economic concentration that have enabled the biggest agribusinesses to define and control food and farming. Worldwide, the top ten seed firms control 30% of the US $24.4 billion seed market[1] and the top ten agrochemical corporations control 84% of the US $30 billion agrochemical market.[2] Pesticide Action Network North America’s corporate profiles of the six largest pesticide manufacturers provide brief, well-documented overviews of the structure, social and environmental impacts, and influence of these powerful actors at the top of global agribusiness.

Bayer
BASF
Dow
DuPont
Monsanto
Syngenta

Bayer AG is a multinational, multi-industry corporation. In 2002, it restructured itself as a holding company to facilitate better management of its diverse investments, which include crop sciences, polymers, chemicals and health care.[3] Over the years Bayer AG has been associated with terrible environmental scandals, bad labor practices and public health issues. The following is a brief overview of Bayer AG with an emphasis on its Bayer CropScience division.

On this page:

Bayer at a Glance
Pesticides and Agricultural Biotechnology
A Wide Range of Impacts
Undue Influence
Resources for Action

 

Bayer at a Glance

Headquarters Leverkusen, Germany

Major sub-groups Bayer Health Care (EUR 8.5 billion in revenue), Bayer CropScience (EUR 6.3 billion), Bayer MaterialScience (EUR 8.6 billion), Bayer Business Services (EUR 700 million), Bayer Technology Services (EUR 520 million)[4]

Employees 113,000 worldwide as of December 31, 2004[5]

Sales distribution Bayer operates via 350 companies on six continents.[6] In 2004 Bayer posted sales in Europe (EUR 13 billion), North America (EUR 8.3 billion), Asia Pacific (EUR 4.9 billion), Latin America (EUR 2.5 billion), and Africa and the Middle East (EUR 316 million).[7]

Revenues 2004 revenue was EUR 29.758 billion.[8]

Net income In 2004, Bayer recorded a net income of EUR 603 million.[9]

Executive compensation In 2004, Bayer paid members of its board of directors EUR 6.4 million in compensation, including EUR 2.36 million to chairman Werner Wenning.[10]

Type of corporation Public (traded on the New York Stock Exchange under the name BAY).

Pesticides and Agricultural Biotechnology

In 2002, the US$7 billion acquisition of Aventis CropScience by Bayer Crop Protection led to the formation of Bayer CropScience.[11] The deal transformed Bayer AG from the 7th largest player in the agrochemical industry to the 2nd largest. [12] The new Bayer CropScience says it is "determined to promote the health and well-being of humankind and nature to the best of [its] ability."[13] However, its agricultural products tell a different story.

Pesticides

Bayer CropScience is responsible for a wide range of harmful pesticide products and ingredients, including:

Aldicarb Extremely toxic, highly persistent, water soluble, restricted use insecticide.[14] Aldicarb is a cholinesterase inhibitor and has been found at levels in excess of EPA drinking water standards in 11 states.[15]Aldicarb is dermally active and residues on food or in drinking water pose grave risks to humans. In one instance of exposure where 1300 people consumed residues on watermelon, aldicarb caused two stillbirths in exposed pregnant women, and grand mal seizures in an exposed boy.[16]

Azinphos-methyl Very toxic insecticide and cholinesterase inhibitor. In 2001, the EPA canceled 28 crop uses of azinphos-methyl;[17] meanwhile, Bayer continued to claim that they had "convincingly demonstrate[d] the safety of azinphos-methyl for farm workers."[18] Highly perilous to fish, in July 2002, azinphos-methyl was implicated as the culprit of widespread fish death in Canada's Wilmot River and has been linked to fish kills totaling 750,000 by the US EPA.[19]

Baysiston This pesticide remains number one on the Brazilian market. It has poisoned hundreds of coffee growers, killing at least 30. Bayer negotiated with hospitals so that death certificates would no longer state "pesticide poisoning" or "Baysiston intoxication" as cause of death.[20] Baysiston is a combination of the chemicals Triadimenol (a possible carcinogen and a suspected endocrine disruptor) and Disulfoton (a cholinesterase inhibitor).

Carbofuran Highly toxic carbamate insecticide. According to EPA, carbofuran has been linked to more bird deaths than any other pesticide. Hundreds of bald eagle deaths have been linked to carbofuran.[21] In 1998, carbofuran was linked to the poisonings of 34 cotton workers in California.[22]

Endosulfan Highly hazardous organochlorine insecticide like DDT. In the 1999/2000 crop season, Beninese officials documented 37 deaths from endosulfan poisoning in the northern Borgou province alone.[23] Endosulfan has been linked to damaged sexual organs and delayed sexual development in boys in India and North Carolina.[24] Endosulfan also presents a grave danger to non-target wildlife, including the death of an estimated 240,000 fish in Alabama in 1995.[25]

Fenamiphos Extremely toxic, environmentally persistent, water soluble organophopate insecticide that was created as a nerve gas during WWII.[26] In August of 2002, Bayer announced the voluntary cancellation of fenamiphos in the U.S. over a five-year period.[27]

FenthionHighly toxic, organophosphate insecticide used primarily for adult mosquito control (also used to kill birds).[28] Fenthion accumulates in fat tissues presenting a dietary threat and is carcinogenic according to the National Institute of Health.[29] In March of 2003, in response to public pressure from the American Birds Conservancy and expensive EPA requirements for additional testing, Bayer voluntarily withdrew fenthion from the U.S. market.[30]

FipronilDivested by Aventis CropScience as a requirement of its purchase by Bayer, fipronil is a broad-spectrum insecticide used in 70 countries.[31] In 1997, fipronil was applied by the government of Madagascar to control a locust epidemic.[32] In a study of 100 people living in a spray area, 60% exhibited symptoms of pesticide poisoning. Among 38 people tested further, 80% showed reduction in cholinesterase activity.[33]

Glufosinate-ammonium This chemical is widely used in the U.S. on Bayer’s genetically engineered herbicide-resistant crops. Glufosinate has been found to have adverse effects on the brain; specifically, it acts as a "mock neurotransmitter" with significant effects. Exposure is particularly hazardous to embryos and babies, and can affect behavior.[34]

LindaneUsed agriculturally as a seed treatment and in lice treatment shampoos, this persistent, bioaccumulative and toxic chemical is formulated and distributed in the U.S. by the company’s newly acquired subsidiary, Gustafson LLC. Lindane is a dangerous pesticide that accumulates in people’s bodies and builds up in the environment. Traveling on wind and air currents, lindane is particularly problematic in the Arctic, where food supplies of indigenous peoples are highly contaminated. More than 50 countries have already banned lindane.[35] Bayer is now the top lindane producer in the U.S.[36]

Methyl parathion Restricted use insecticide and the most toxic organophosphate on the market. According to one estimate, 324,000 children aged one to five consume methyl parathion in excess of the reference (“acceptable”) dose every day.[37] Methyl parathion is a WHO class 1 extremely hazardous chemical and a neurotoxicant.

Agricultural Biotechnology

When Bayer AG acquired Aventis CropScience it became an industry leader in agricultural biotechnology. Bayer now controls patents for nine of 11 genetically modified crops awaiting approval for commercial planting. The company avidly seeks to further reduce EU restrictions on genetically modified foods.[38] Aventis CropScience came under fire for the contamination of up to 25% of the U.S. corn supply with its genetically engineered StarLink corn, which was not approved for human consumption.[39]

Genetically engineered crops pose serious risks to public health and the environment, increase reliance on pesticides, deepen agribusiness control over farmers and undermine food security and sovereignty. Most biotech seeds are licensed to farmers, not sold, prohibiting farmers from replanting, saving, trading, sharing or breeding seeds as they have done for millennia. Global food security requires access to land; small-scale, sustainably based farming systems; and the crop diversity to respond to varied and changing environments and growing conditions. Genetically engineered crops, in contrast, are an extension of industrial agricultural practices that concentrate land ownership, rely on synthetic pesticides, fertilizers and other off-farm inputs, and dramatically reduce crop biodiversity.

For an overview of agricultural biotechnology and its impacts, see PANNA's online presentation, "Genetically Engineered Crops and Foods,"[40] located at: http://www.panna.org/resources/geTutorial.html.

A Wide Range of Impacts

Bayer's social and environmental impacts are very broad:

Hazardous wastes Bayer and Aventis subsidiaries are responsible for 24 Superfund sites.[41] Twelve of Bayer’s 19 industrial facilities in the U.S. rank amongst the worst 50% of comparable facilities in total toxic releases.[42]

Pesticide and chemical dumping Bayer dumped acid in both the North Sea and the Rhine as well as obsolete pesticides, including highly toxic chlorinated organomercury compounds, in Nepal.[43]

Human rights and labor violations In July 2000, OSHA fined Bayer US$135,000 for health and safety violations at their Baytown, Texas, facility.[44] In Guatemala, Bayer employees have no contracts and no employment rights.[45] Bayer violated safety regulations in Indonesia, operated in South Africa under apartheid[46] and has had chemical explosions at its facilities in Germany and Madagascar among other places.[47]

Use of human subjects Bayer tested the pesticide azinphos-methyl (see above) on 50 subjects in Scotland.[48] One subject of the 1998 experiment claims he was not told that the substance he was exposed to was a pesticide. Furthermore, he did not receive any long-term follow-up or appropriate medical care.[49] Despite EPA restrictions against human subject data, Bayer’s evident motive was to forcefully convince EPA to reverse pesticide controls introduced to protect children.[50]

Medical scandalsBayer’s medical scandals have been numerous. The company was implicated and sued for infecting thousands of hemophiliac individuals in the U.S., Germany and Japan with HIV and hepatitis C.In the wake of the 2001 Anthrax exposures in the U.S., the company monopolized production of the drug Cipro, charging high prices.[51] In 2003, Bayer was ordered to pay a fine of $250 million for making inflated Medicaid claims.[52]

Misleading advertisementsFollowing successful legal action by Earth Action, Bayer CropScience was forced to withdraw an ad for its herbicide Admire in Canada that made illegal claims such as “pesticides are safe.”[53] In 2002, Bayer was forced to spend US$1 million on advertising to retract misleading statements made about the benefits of aspirin as a preventative measure against heart attacks.[54]

Undue Influence

To advance their interests, powerhouses like Bayer invest heavily in political and social influence. Some of Bayer's efforts to influence policy and public opinion include:

Trade organizations and think tanks[55] Some of the trade and policy organizations in which Bayer participates include:

Campaign contributionsIn the U.S., Bayer PACs contributed $834,000 to candidates for federal office between 1996 and 2002.[56] In 2000, Bayer made $93,580 in soft money donations to the Republican party.[57] Bayer employees also made $26,376 worth of direct donations to candidates for federal office in 2002.[58] In 2004, the company contributed $37,000 to House Democrats, $129,500 to House Republicans, $25,000 to Senate Democrats, and $62,000 to Senate Republicans.[59]

Resources for Action

Many people and organizations around the world are taking action to hold Bayer accountable for its impacts. The following resources are good starting points for more information about Bayer and how you can help in these efforts.

Bayer (http://www.bayer.com)
Bayer’s Web site.

Scorecard (http://www.scorecard.org)

Environmental Defense's toxic release information Web site. Makes available Syngenta's toxic release information and locations of its U.S. facilities.

Hoovers online
(http://www.hoovers.com/bayer-ag/--ID__41808--/free-co-factsheet.xhtml)
Provides financial information about Bayer and links to detailed reports and filings.

Coalition against Bayer-Dangers
(http://www.cbgnetwork.org/index.html)
Newsletter and other compiled resources about Bayer AG.

Stop Bayer's GM Crops
(http://www.stopbayergm.org/)
Web-site devoted to combating the spread of Bayer's GM crops.

Corporate watch
(http://www.corporatewatch.org.uk/profiles/bayer/bayer1.html)
Corporate Watch's corporate profile of Bayer.

PAN Pesticides Database
(http://www.pesticideinfo.org)
Pesticide Action Network North America's pesticide database allows you to search for toxicity, regulatory and other information by chemical or product.

[1] Action Group on Erosion, Technology and Concentration, “Globalization Inc.—Concentration in Corporate Power: The Unmentioned Agenda,” July 2001, <http://www.rafi.org/> on 5 March 2004.

[2] Skip Spitzer, “Industrial Agriculture and Corporate Power,” Global Pesticide Campaigner (Volume 13, Number 2), August 2003.

[3] <http://www.bayer.com/about_bayer/organizational_structure/page703.htm> on 11 March 2004.

[4] All figures are 2004 revenue, or estimated annual revenue in euros, as stated in their annual report accessed at <http://www.bayer.com/annualreport_2004_id0109/include/download/showpdf.php?strFile=en_ar_complete.pdf> on 14 April 2005.

[5] <http://www.bayer.com/annualreport_2004_id0109/include/download/showpdf.php?strFile=en_ar_complete.pdf> on 14 April 2005.

[6] <http://www.bayer.com/annualreport_2004_id0109/include/download/showpdf.php?strFile=en_ar_complete.pdf> on 14 April 2005.

[7] <http://www.bayer.com/annualreport_2004_id0109/include/download/showpdf.php?strFile=en_ar_complete.pdf> on 14 April 2005.

[8] <http://www.bayer.com/annualreport_2004_id0109/include/download/showpdf.php?strFile=en_ar_complete.pdf> on 14 April 2005.

[9] < http://www.bayer.com/annualreport_2004_id0109/include/download/showpdf.php?strFile=en_ar_complete.pdf > on 14 April 2005.

[10] < http://www.bayer.com/about_bayer/board_of_management/remuneration/page1331.htm > on 14 April 2005.

[11] "Bayer and Aventis Reach Agreement on Final Purchase Price," Bay News International , 8 March 2004, <http://www.news.bayer.com/News/News.nsf/id/2004-0077 > on 11 March 2004.

[12] "CropScience Deal Biggest Buyout in Bayer's History," Financial Times , Canada, 3 October 2001, < http://www.biotech-info.net/biggest_buyout.html > on 11 March 2004.

[13] < http://www.bayercropscience.com/bayer/cropscience/cscms.nsf/id/Aspiration > on 11 March 2004.

[14] "Pesticide Profiles: Aldicarb," American Bird Conservancy , < http://www.abcbirds.org/pesticides/Profiles/aldicarb.htm > on 12 March 2004.

[15] "Pesticide Profiles: Aldicarb," American Bird Conservancy , < http://www.abcbirds.org/pesticides/Profiles/aldicarb.htm > on 12 March 2004.

[16] "UK Votes to Keep Highly Toxic Pesticide," Friends of the Earth , 19 March 2003, <http://www.foe.co.uk/resource/press_releases/uk_votes_to_keep_highly_to.html > on 12 March 2004.

[17] "Guthion and Imidan Hit Hard by FQPA," The Fruit Growers News , 5 November 2001, <http://www.fruitgrowersnews.com/pages/2001/news01_11/news_fqpa.html > on 12 March 2004.

[18] "Azinphosmethyl: A Safe and Valuable Crop Protection Product for Farmers," Letter from Bayer to the FQPA, 1 November 2001 <http://www.bayerfqpa.com/docs/azmrestrict11-1-01.doc > on 12 March 2004.

[19] "Farm Chemical Blamed for Fish Kill," Prince Edward Island Canadian Broadcast Channel , 24 July 2002, <http://pei.cbc.ca/regional/servlet/View?filename=pesticide24jul02 > on 12 March 2004.

[20] "BAYER and the UN Global Compact," Coalition against BAYER-Dangers (CBG), <http://www.cbgnetwork.org/home/UN_Global_Compact/un_global_compact.html > on May 13, 2005.

[21] "Birds and Pesticides: Carbofuran," Defenders of Wildlife , < http://www.defenders.org/wildlife/birds/carbo.html > on 12 March 2004.

[22] "Farm Worker Illness Following Exposure to Carbofuran and Other Pesticides - - Fresno County, California, 1998," Morbidity and Mortality Weekly Report , 19 February 1999, < http://www.cdc.gov/mmwr/preview/mmwrhtml/00056485.htm > on 12 March 2004.

[23] "Endosulfan Deaths and Poisonings in Benin," Pesticides News , No. 47, March 2000, < http://www.getipm.com/articles/benin-deaths.htm > on 21 March 2004.

[24] "Young Males Exposed to Pesticide Endosulfan See Delay in Sexual Maturation," Environmental Health Perspectives , 1 December 2003, < http://ehp.niehs.nih.gov/press/120103.html > on 21 March 2004.

[25] "End of the Road for Endosulfan: A Call for Action Against a Dangerous Pesticide," Environmental Justice Foundation , 2002, <http://www.ejfoundation.org/pdfs/end_of_the_road.pdf > on 21 March 2004.

[26] "Pesticide Profiles: Fenamiphos," American Bird Conservancy , < http://www.abcbirds.org/pesticides/Profiles/fenamiphos.htm > on 12 March 2004.

[27] "Bayer Corporation has requested cancellation of all existing fenamiphos product registrations," Georgia Pest Management Newsletter , Vol. 25, No. 6, June 2002, http://pubs.caes.uga.edu/caespubs/entomology/pestnewsletter/NL-June02.htm on 12 March 2004.

[28] “Fenthion Kills Birds,” Keycode Bayer, No. 58, <http://www.cbgnetwork.org/home/Newsletter_KCB/KCB__58/kcb__58.html> on 12 March 2004.

[29] “Fenthion Kills Birds,” Keycode Bayer, No. 58, <http://www.cbgnetwork.org/home/Newsletter_KCB/KCB__58/kcb__58.html> on 12 March 2004.

[30] “Fenthion Voluntary Cancellation Requested,” <http://www.epa.gov/oppfead1/cb/csb_page/updates/fenthion-volcnl.htm> on 12 March 2004.

[31] “BASF Finalizes Acquisition of Fipronil,” Delta Farm Press, 11 April 2003, <http://deltafarmpress.com/ar/farming_basf_finalizes_acquisition/> on 12 March 2004.

[32] “Locust Control in Madagascar,” Pesticide Action Network Updates Service, 10 July 2000, <http://www.panna.org/resources/panups/panup_20000710.dv.html> on 13 March 2004.

[33] “Locust Control in Madagascar,” Pesticide Action Network Updates Service, 10 July 2000, <http://www.panna.org/resources/panups/panup_20000710.dv.html> on 13 March 2004.

[34] “Bayer’s GE Crop Herbicide, Glufosinate, Causes Brain Damage,” Coalition against BAYER-Dangers (CBG), 7 December 2004, <http://www.cbgnetwork.org/home/home.html>on 14 April 2005.

[35] See <http://www.panna.org/campaigns/lindane.html>.

[36] “Bayer CropScience To Purchase Crompton’s Share of Gustafson Seed Treatment Business,”Bayer.com, 22 March 2004 <http://www.bayerus.com/news/index.cfm?mode=detail&id=7434D3B5-08DD-53F2-331F6991ADE5BD40> on 13 May 2005.

[37] Richard Wiles et al, “Comments on Preliminary Risk Assessment Document for Methyl Parathion,” Environmental Working Group. 12 February 1999, <http://www.ewg.org/reports_content/methylp/ewg_mp.pdf> on 21 March 2004.

[38] “Bayer CropScience,” <http://www.stopbayergm.org/bayer_cropscience.php> on 13 March 2004.

[39] “Genetically Engineered Food: StarLink Corn,” Organic Consumers Association, <http://www.organicconsumers.org/starlink.htm> on 21 March 2004.

[40] See <http://www.panna.org/resources/geTutorial.html>.

[41] “Bayer Corporate Fact Sheet,” <http://www.panna.org/resources/documents/bayer.dv.html> on 13 March 2004.

[42] See <http://www.scorecard.org/>.

[43] “Bayer AG: A Corporate Profile,” Corporate Watch UK, March 2002, <http://www.corporatewatch.org.uk/profiles/bayer/bayer5.htm> on 13 March 2004.

[44] “Bayer AG: A Corporate Profile,” Corporate Watch UK, March 2002, <http://www.corporatewatch.org.uk/profiles/bayer/bayer5.htm> on 13 March 2004.

[45] “Bayer AG: A Corporate Profile,” Corporate Watch UK, March 2002, <http://www.corporatewatch.org.uk/profiles/bayer/bayer5.htm> on 13 March 2004.

[46] “Bayer AG: A Corporate Profile,” Corporate Watch UK, March 2002, <http://www.corporatewatch.org.uk/profiles/bayer/bayer5.htm> on 13 March 2004.

[47] “Bayer Corporate Fact Sheet,” Pesticide Action Network North America, <http://www.panna.org/resources/documents/bayer.dv.html> on 13 March 2004.

[48] Jennifer Johnston, “He Was Used to Test ‘Highly Hazardous’ Pesticides Then Forgotten About,” Sunday Herald, 8 September 2002, <http://www.sundayherald.com/print27510> on 13 March 2004.

[49] Jennifer Johnston, “He Was Used to Test ‘Highly Hazardous’ Pesticides Then Forgotten About,” Sunday Herald, 8 September 2002, <http://www.sundayherald.com/print27510> on 13 March 2004.

[50] Jennifer Johnston, “He Was Used to Test ‘Highly Hazardous’ Pesticides Then Forgotten About,” Sunday Herald, 8 September 2002, <http://www.sundayherald.com/print27510> on 13 March 2004.

[51] “Bayer AG: A Corporate Profile,” Corporate Watch UK, March 2002, <http://www.corporatewatch.org.uk/profiles/bayer/bayer5.htm> on 13 March 2004.

[52] “Big Fines Seen in US Probe of 2 Drugmakers,” Keycode Bayer, No. 79, <http://www.cbgnetwork.org/home/Newsletter_KCB/KCB__79/kcb__79.html> on 13 March 2004.

[53] “Canada: Pesticide Companies Ordered to Change Ads,” Keycode Bayer, No. 111, <http://www.cbgnetwork.org/home/Newsletter_KCB/KCB__111/kcb__111.html> on 13 March 2004.

[54] “Bayer Aspirin Ads Mislead the Public Again,” HealthFacts, March 2004, <http://www.findarticles.com/cf_dls/m0815/3_29/113778910/p1/article.jhtml> on 13 March 2004.

[55] “Bayer AG: A Corporate Profile,” Corporate Watch UK, March 2002, <http://www.corporatewatch.org.uk/profiles/bayer/bayer4.htm# - lobbygrps> on 13 March 2004.

[56] Information acquired from online searchable database of FEC PAC filings at <http://www.politicalmoneyline.com/> on 26 December 2003.

[57] Information acquired from online search at <http://www.opensecrets.org> on 26 December 2003.

[58] Kristin Gribben, “Biotech Profiles: Bayer,” Capital Eye, <http://www.capitaleye.org/bio-bayer.asp> on 7 March 2004.

[59] Information acquired from online search at <http://www.opensecrets.org/pacs/pacgot.asp?strID=C00281162&Cycle=2004/> on May 13, 2005.

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