GRAIN Producers Australia (GPA) chairman Andrew Weidemann said he was not concerned at Bayer slashing over 12,000 jobs, including 4100 in its crop science division, as a result of its buy-out of Monsanto.
“There was always likely to be some rationalisation following the purchase of Monsanto so I don’t think there is anything too much to be concerned about,” Mr Weidemann said.
“Between the two companies there are likely to be synergies so this does not necessarily mean less research and development into crop protection.”
Bayer has announced a shake-up of its business, with a plan to sell its animal health business, its Coppertone and Dr Scholl’s businesses and a site services provider in Germany.
The company will focus on its life science and crop protection businesses.
The majority of the job losses are expected to be in Germany.
In terms of the crop science division, most of interest to Australian agriculture, the major focus will be integrating Monsanto, with Bayer expecting synergies to deliver $A1.67 billion in savings.
Bayer is hoping to recoup some of the share price losses incurred since the takeover of Monsanto.
Investors have been spooked by court cases against Monsanto based on its Roundup herbicide causing cancer, with a court ruling in California, awarding a plaintiff millions of dollars in damages setting a precedent that has seen hundreds of other claims lodged.
It is not known if there will be any job losses in Australia, with Bayer Australia saying it did not know what impact the restructure would have here.