Plant Science

Bayer Restructures Crop Science Operations in Germany

Guru Ramamurthy will assume the role of Chief Financial Officer for Bayer’s Crop Science division on July 1, 2025.

Key Takeaways

  • Bayer will discontinue production and R&D activities in Frankfurt by the end of 2028, with partial relocation and potential asset sales.
  • R&D operations will be consolidated in Monheim, solidifying Germany as Bayer’s global hub for crop science innovation.
  • The Dormagen site will undergo streamlining, phasing out generic production and focusing on differentiated, strategic technologies.
  • The reorganization is part of Bayer’s five-year Crop Science framework, aimed at delivering €3.5B in incremental sales from innovation by 2029.
  • Bayer reaffirms its 2025 guidance despite declining sales in Crop Science and ongoing legal and economic headwinds.

Bayer Shifts Crop Science Strategy to Protect Global Competitiveness

Frankfurt Site to Close, Dormagen and Monheim to Assume Strategic Roles

Bayer (Profile) announced a major restructuring of its Crop Science division’s production and R&D operations in Germany, as part of its broader five-year framework to improve profitability and withstand global pricing pressures. The company will exit its Frankfurt operations by the end of 2028, impacting approximately 500 employees.

Production of herbicide active ingredients and formulations in Frankfurt will be either sold or transferred to Dormagen, Knapsack, or integrated into Bayer’s broader European network. R&D activities will move to Monheim am Rhein, which already houses the company’s research units for insecticides and fungicides.

“We are committed to Germany. However, to live up to this commitment in times of considerable challenges, we need to adjust,” said Frank Terhorst, Head of Strategy and Sustainability, Crop Science Division.


Dormagen to Focus on Strategic Crop Protection Technologies

Generic Production to Be Phased Out, 200 Jobs Affected

The Dormagen site, Bayer’s largest production facility for active ingredients, will be optimized by discontinuing the manufacturing of generic crop protection products, many of which face untenable price competition from Asian manufacturers. The restructuring will impact approximately 200 jobs out of 1,200.

Terhorst emphasized that Dormagen remains central to Bayer’s future: “We are positioning Dormagen to continue to play a leading role in Bayer’s global production network.”

Bayer is working with employee representatives to explore socially responsible transition options for impacted staff.


Monheim Consolidation Strengthens Bayer’s R&D Leadership

Innovation Pipeline to Drive €3.5 Billion in Additional Sales by 2029

Bayer will now centralize global R&D efforts for Crop Science at Monheim, where it is also building a state-of-the-art development facility. This move aims to reduce costs while reinforcing Monheim as the global hub for next-generation crop protection innovation.

The realignment supports Bayer’s mid-term goal of delivering above-market growth, including:

  • More than €3.5 billion in incremental sales from innovation by 2029
  • An EBITDA margin (before special items) in the mid-20% range
  • Free operating cash flow of over €3 billion by 2029

Bayer highlighted Preceon™ Smart Corn, Vyconic™ soybeans, and the new herbicide icafolin as part of its strategic innovation pipeline.


Q1 2025 Performance: Crop Science Declines Offset by Pharma Growth

Regulatory Headwinds and Seasonal Dynamics Affect Crop Science

In Q1 2025, Bayer reported:

  • Group sales of €13.74 billion, flat YoY after adjustments.
  • Crop Science sales of €7.58 billion, down 3.3% (Fx & portfolio adjusted).
  • EBITDA before special items for Crop Science dropped by 10.2% to €2.56 billion.
  • Declines were linked to regulatory issues, including the U.S. dicamba label vacatur and Movento™ registration expiration in Europe.

Despite setbacks, Bayer confirmed its 2025 outlook at constant currencies. CEO Bill Anderson noted the company’s focus on efficiency, saying: “Our first quarter puts us in a good spot to deliver in a challenging and important year.”

Discover other financial performance from agriculture companies here.


Outlook: Focused Innovation and Lean Operations

Five-Year Plan Seeks to Restore Profitability and Resilience

Bayer’s Crop Science division is shifting from high-volume, low-margin production toward precision agriculture solutions that are difficult to replicate by generic manufacturers. The strategic focus includes:

  • Streamlining the product portfolio
  • Targeting value-generating R&D
  • Enhancing production efficiency

“We are radically focusing on improving profitability, delivering top-notch innovation, and leveraging new value pools,” said Rodrigo Santos, head of the Crop Science Division.

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