Resistencia, ARGENTINA (June 12, 2017) – RiceTec announced today a reorganization plan for its operations in Mercosur due to difficulty and cost implications in producing some hybrids at its operations in Argentina.

The company will idle its seed conditioning and storage facility in El Dichoso at the end of the current seed processing and delivery season. This reorganization will not impact the 2017 planting season for the region, however RiceTec will not produce a commercial crop or foundation seed crop in Argentina during the 2017/2018 cycle.

“RiceTec strongly believes that hybrid rice is a powerful technology tool which can help to improve the lives and livelihoods of farmers, improve the sustainability of agricultural systems and help to feed the world,” said Global CEO Mike Gumina. “Unfortunately, some of our leading products require a unique growing environment for successful seed production. Over the past three years, the growing conditions for our seed production in Argentina have not allowed us to be a reliable supplier of these products at a competitive price.”

As a result of the complex growing conditions, the company has decided to idle production operations in Argentina and to develop alternative sources of supply for Mercosur customers. The objective of the change is to ensure reliable supply of high quality products which will effectively satisfy the market demand.

RiceTec remains dedicated to developing new genetics at its research station in Santa Maria, Brazil and through the entire global network of scientists. These new genetics promise to bring higher yields, better disease resistance, new weed control options and improved grain quality.

“Decisions that impact the lives of our employees and clients are extremely difficult but sometimes necessary. We will provide transparency, effective communication, and transition plans to anyone impacted by these changes,” said Global CEO Mike Gumina. “For our customers, RiceTec will continue to offer high yielding products. We are confident that the current products in combination with some newly released product advancements can improve the operations in every Mercosur rice production operation.”

RiceTec has been developing hybrid rice seed since 1988, offering the first commercial hybrid rice seed product in 1999. RiceTec was founded on the premise that modern, technology-based breeding techniques – combined with a broad, diverse germplasm collection – allow for efficient development and economical production of superior hybrid seed products.