Corteva's plant protection products sales down, Pioneer seeds supply contracts terminated

In the current production season, the demand for Corteva Agriscience plant protection products (PPPs) among end consumers has declined, SuperAgronom.com reports with reference to its market sources.

The company reports increased sales of PPPs in the first quarter of 2020 on its website, however, according to the sources, this refers to upsized sales to distributors and agricultural holdings. The article reads that this year Corteva Agriscience products will be applied on much less crops, while distributors will have large balances in their warehouses.

As informed by the companies-distributors' representatives, after the launch of Pioneer seeds direct sales by Corteva Agriscience, the long-term contracts with the largest distributors were terminated.

"Distributors who refused to extend their contracts with Corteva Agriscience last season sold more than USD 80 mln of the company's PPPs. During a season, distributors who renewed contracts with the company will be unable to sell the entire amount of products through their customer networks," SuperAgronom.com sources say.

As reported, the distributors who have last year's Corteva Agriscience PPPs balances in their warehouses have to sell products at a disadvantage as the company has reduced purchase prices for new products.

Upon SuperAgronom.com request, Corteva stated that the information on sales volumes and terms is commercial, confidential and not subject to disclosure. The terms and conditions of cooperation with the company are provided exclusively to customers and partners.

SuperAgronom.com has sent inquiries to all distributors regarding the current situation in their warehouses. Survey data will be published and updated in real time.

Previously reported that Roman Nyzhnyk, sales manager of Pioneer seeds brand in Ukraine, resigns from Corteva Agriscience.