By P.J. Huffstutter and Tom Polansek
CHICAGO – Seeds and pesticides firm Corteva Inc will get rid of U.S. jobs subsequent 12 months, 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 provided Europe and Russia markets, based on California’s Employee Adjustment and Retraining Notification Act (WARN) information final week.
“Corteva is concluding its plan to cease manufacturing and enterprise actions in Russia, and since we have now sufficient sunflower manufacturing capability in Europe for the European market, we now 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 scale 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 will 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 in regards to the job losses.
Demand for crops grown with Corteva seeds and chemical substances is powerful after extreme climate and the Ukraine battle tightened world provides. Nonetheless, agrichemical corporations 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 shoppers of sunflower seeds are Europe and Russia, the corporate stated.
The Woodland facility is Corteva’s just one in america making “industrial” sunflower seeds for farmers to develop vegetation for oil or meals.
The power will proceed to supply “mum or dad” seeds for the industrial crop, and is working with a U.S.-based third-party to supply “industrial” sunflower seeds for home growers, the corporate stated.
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