Bayer to Stop Making Seed Treatment Equipment. Here’s What We Know

German-based crop protection/seed giant Bayer has been experiencing several market shake-ups recently, with the company even saying it might discontinue making glyphosate in the near future. Now, Bayer is apparently planning to exit the seed treatment equipment business as well.

According to a report in Reuters, the company’s SeedGrowth Equipment business will be closing over the next few months. Bayer opened its $12 million SeedGrowth Equipment Innovation Center in Shakopee, MN, back in 2015. This helped support the company’s line of seed treatment products.

Bayer added in its email that it will continue to supply customers with seed treatment options despite the move away from equipment manufacturing.

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“This is a difficult decision, but necessary to help secure the financial future of the company,” Bayer said in the email announcing the decision. The email added that Bayer has decided instead to direct resources toward primary areas of strength in crop protection products vs. seed treatment equipment manufacturing.

Overall, Bayer has faced intense pressure from market forces negatively affecting its finances. Primary among these are the thousands of lawsuits over the company’s glyphosate brand (Roundup). This has forced Bayer to spend billions of dollars on legal defenses of Roundup and cash outlays in judgment settlements against the brand over the past few years. All this has placed investor pressure on CEO Bill Anderson to deliver on restructuring efforts and reverse what is projected to be the third consecutive annual drop in operating income in 2025.

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