Seedmaker Corteva has announced 51 job cuts in California next year.

The affected employees will be from the facility based in Woodland.

This announcement comes as the agricultural chemical company is exiting the Russian market.

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Meaning there is a reduced demand for its California-grown commercial sunflower seeds.

The Woodland facility is operated by its Pioneer Hi-Bred International subsidiary, which supplies Europe and Russian markets.

The company said: “Corteva is concluding its plan to stop production and business activities in Russia.

“Because we have enough sunflower production capacity in Europe for the European market, we no longer need the additional production capacity at the Woodland location.”

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Shifting commercial sunflower seed production to Europe for European consumers will lower costs.

The layoffs are the result of its decision to leave Russia after the Ukraine crisis.

Corteva announced its withdrawal from Russia in April.

In September, it revealed plans to exit about 35 countries and cut about 5 percent of its headcounts globally to save expenses.

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Crops grown using Corteva seeds and chemicals are in high demand after harsh weather and the Ukraine war reduced global supplies.

However, inflation and supply-chain bottlenecks have posed challenges for the agrichemical producers.

The Woodland factory is Corteva’s only one in the country producing “commercial” sunflower seeds for farmers to grow plants for oil or food.

The factory will keep producing “parent” seeds for commercial crops.

Corteva said it is collaborating with a third party in the US to generate “commercial” sunflower seeds for domestic producers.

Source: Reuters

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