Seedmaker Corteva cuts U.S. jobs whereas exiting Russia By Reuters
© Reuters. FILE PHOTO: The emblem for Corteva Agriscience, a former division of DowDuPont, is displayed on a display on the New York Inventory Alternate (NYSE) in New York, U.S., June 3, 2019. REUTERS/Brendan McDermid
By P.J. Huffstutter and Tom Polansek
CHICAGO (Reuters) – Seeds and pesticides firm Corteva (NYSE:) Inc will eradicate U.S. jobs subsequent yr, as its exit from Russia reduces demand for its industrial sunflower seeds produced in California, the corporate stated on Monday.
Corteva will reduce 51 positions from a Woodland, California facility, run by its Pioneer Hello-Bred Worldwide subsidiary, that equipped Europe and Russia markets, in line with California’s Employee Adjustment and Retraining Notification Act (WARN) knowledge final week.
“Corteva is concluding its plan to cease manufacturing and enterprise actions in Russia, and since we’ve sufficient sunflower manufacturing capability in Europe for the European market, we not want the extra manufacturing capability on the Woodland location,” the corporate stated in an e mail, with out mentioning the variety of jobs affected.
Relocating industrial sunflower seed manufacturing to Europe for European clients will cut back prices, Corteva added.
The layoffs present ripple results from company choices to give up Russia after its invasion of Ukraine. Corteva stated in April it might withdraw from Russia. In September, it introduced plans to exit about 35 nations and lay off about 5% of its world workforce to chop prices.
Woodland prides itself on its meals and agriculture companies, metropolis spokesman Spencer Bowen stated.
“We’re clearly unhappy,” he stated concerning the job losses.
Demand for crops grown with Corteva seeds and chemical substances is robust after extreme climate and the Ukraine struggle tightened world provides. Nevertheless, agrichemical firms face headwinds from inflation and supply-chain shortages.
In 2021, sunflower seeds accounted for about 5% of Corteva’s total $8.4 billion in seed gross sales, an organization investor presentation confirmed. The most important producers and customers of sunflower seeds are Europe and Russia, the corporate stated.
The Woodland facility is Corteva’s just one in the US making “industrial” sunflower seeds for farmers to develop vegetation for oil or meals.
The ability will proceed to provide “dad or mum” seeds for the industrial crop, and is working with a U.S.-based third-party to provide “industrial” sunflower seeds for home growers, the corporate stated.