EDITOR'S BLOG
HAPPY ST BRIGID'S DAY
The first day of spring
by Service Dealer Ireland Editor, Alan Mahon
 
Alan Mahon

Even though it's the official arrival of spring today, it looks like we're going to be under restrictions for a while yet - so we all need to focus on what we do best.

 


Today is the first day of Spring and it is also St. Brigid’s Day, which celebrates the arrival Spring, the start of longer and warmer days ahead.

 

However, at the moment, it looks like we are in for the long haul with this lockdown. Restrictions have been extended until the 5th of March. I hope that you, your business and staff are all managing ok. We just have to keep doing the best we can during all this chaos. Getting outside and doing some exercise, even if it is just going for a long walk, is very important. There might be some nearby park or forest trail within 5km of where you live, that you could visit. 

 

Last week and this week, in the US, was and is earnings week. This is when companies listed on the New York stock exchange, such as the DOW Jones, NASDAQ and the S&P 500, report their earnings. Earnings on these exchanges are reported every three months and last week was the end of year results, or quarter four earnings (Q4). Many of the brands we sell are listed on the major US indexes such as John Deere, Toro, Kubota, AGCO and many more. It is interesting to see that the share price of a lot of these companies has appreciated substantially in the past twelve months, many having increased by as much as 50% and one company’s share price has almost doubled since this time last year. How could this be when 2020 threw us into a pandemic and sales of machines remained static or may have increased only slightly? Some say that the US Federal Reserve will do anything to stop businesses from going under. There is ‘the government will save us no matter what’ attitude among some companies and many investors believe in this mantra also, which is probably why the US stock markets are at their near all time highs – free money and 0% interest rates being the driving force behind them. 

 

This frenzy of stock market buying has spilled into Europe with the German battery making company, Varta, being an example of one company that has benefited from the ‘man on the street’ investor. Varta batteries are used in all types of machines including agricultural machinery. At the time of writing their stock price has more than doubled since this time last year.

 

All these high stock valuations could all end up in tears for some investors, just like it did in the late 1990’s with the dotcom bubble burst. However, for us in this industry, just like the lockdown, we are in this business for the longer haul and we should try and keep focused on what we do well – providing our customers with reliable equipment and after sales service, no matter what happens on the stock market.

 

To come down to earth with more meaningful data, the latest figures issued by the Farm Tractor & Machinery Trade Association (FTMTA) show that tractor registrations only decreased 3% in 2020, compared to the previous year. According to the FTMTA 1,910 units were registered in 2020. The 101 – 120 horse power range was the horse power band with the highest level of registrations in 2020, representing almost 32% of all registrations. During the year 87% of all tractors registered had over 100hp, 56% over 120hp and 29% over 150hp. You can see a more detailed breakdown of these figures by visiting the FTMTA website.

NEWS
FTMTA LOOKS TO ADDRESS UNCERTAINTIES
Over Brexit tariffs
 
The FTMTA have moved to addressed confusion over post-Brexit tariffs

Seek to address confusion over tariffs that apply to used cars and how these don't apply to agricultural machinery.

 


The Farm Tractor and Machinery Trade Association (FTMTA) has moved to address uncertainty among its members over tariffs that apply post-Brexit.

 

 

Under the EU-UK trade agreement, which was finalised in late December and came into effect on January 1, it is the case that used cars of EU or non-EU origin (except those of UK origin) that have been used in the UK will be subject to a 10% tariff when they are exported to an EU member state.

 

However, the FTMTA said that this is not the case where used agricultural machinery is concerned.

 

FTMTA chief executive Gary Ryan explained in a message to members last week: “The tariff in relation to cars is based on rules on preferential origin of products contained in the EU-UK Trade and Cooperation Agreement.

 

“The preferential origin rules have no impact on agricultural machinery, as the prevailing global tariff for agricultural machinery is, in most cases, zero,” he added.

 

Ryan pointed out that the lowest possible tariff a country can assess on products coming from another country is referred to as ‘most favoured nation’ (MFN) tariff and, in the case of agricultural machinery, that is generally the zero rate.

 

“Where the MFN rate of duty is zero, as in this case, the preferential rules of origin and the preferential tariffs do not apply,” Ryan concluded.

 

Source: Agriland.ie

KELVALE AGRI APPOINTED BY PÖTTINGER
As authorised dealer
 
The Kelvale Agri Machinery team from left: Jamie Kelly (Sales), Padraig Brazil (Parts), Nicholas Kelly (Director)

Kelvale Agri Machinery Limited of Glenmore Co. Kilkenny are now an authorised dealer for the full range of Pottinger products, both grassland & tillage, sales, service and spare parts.

 


Pottinger Ireland has announced the recent appointment of Kelvale Agri Machinery Limited of Glenmore Co. Kilkenny as an authorised dealer for the full range of Pottinger products, both grassland & tillage, sales, service and spare parts.

 

The Kelvale Agri Machinery team from left: Jamie Kelly (Sales), Padraig Brazil (Parts), Nicholas Kelly (Director) 

 

Pottinger Ireland say Kelvale Agri are well known for their attention to detail and quality sales and aftersales, hence making it the perfect match for both companies. 

 

Established family run business of over 10 years, Kelvale Agri, currently provides sales and service of used tractors and machinery, specialising in high quality used Deutz Fahr tractors. Jamie and Nicholas Kelly of Kelvale Agri say they are delighted to accept the Pottinger dealership appointment and are confident they will contribute to the brand growth in the south and south east.

Diarmuid Claridge md Pottinger Ireland commented “Kelvale Agri Machinery Ltd’s experience, knowledge and location will guarantee our growing customer base an improved and solid sales and aftersales service to meet today’s farming needs. With its sales and parts shop situated just off the N25 main road in Glenmore south Kilkenny, Kelvale Agri are well positioned to provide their services to the county of Waterford and the south east."

 

Jamie Kelly head of sales at Kelvale Agri added, “Adding Pottinger to our product portfolio allows us to offer customers a range of new products at a quality level they would expect from us. We are excited by the opportunities this partnership offers”.  

CAMPEY SAY THEIR EU IMPORTS TO UK REMAIN ON TIME
Despite Brexit port disruption
 
Imants delivery to Campeys

Company say as recently as 26th January machines were collected from Imants in the Netherlands one day and delivered to Campey headquarters the next.

 


Despite the widely reported disruption at ports due to Brexit, Campey Turf Care Systems have said they have maintained their EU import times.

 


 
As recently as 26th January the company says machines were collected from Imants in the Netherlands one day and delivered to their headquarters the next. Campeys say this has primarily been due to the work they have carried out behind the scenes.
 
Campey director, Lee Morgado, said, "Suffering no disruption to date has been down to preparing for the changes as well as keeping on top of COVID-19 protocols.
 
“We knew with Brexit there would be rule changes and that could have an impact on imports at customs, so we’ve put a lot of work into making sure there are no delays.
 
“Obviously the circumstances away from Brexit with the pandemic have put a greater strain on the GB-EU border, but that is where we’ve really seen the preparation pay off because we haven’t suffered any unnecessary delays and have been able to stick to our delivery schedules.
 
“A majority of it has been paperwork based and being proactive as situations change. Doing this means we are now in a place where our customers don’t see a difference. For them, when they order an Imants machine or Air2G2, they still get it when they expect to, which was always our main priority.”

REESINK SAY THEY ARE A "DIFFERENT BUSINESS" TO A YEAR AGO
Reflect on structural changes
 
David Cole, Reesink Turfcare managing director

Managing director David Cole has spoken about how the pandemic has forced the company to make some changes, including welcoming some new key personnel.

 


Reesink Turfcare’s managing director, David Cole, has spoken about the challenges and achievements their company faced 2020 and what is  coming up for them this year.

 

“2020 was an extremely challenging year for us all,” David says. “Few, if any, industry sectors escaped unscathed from the impact of a sweeping pandemic. So, it’s worth taking a moment to recognise the resilience of our customers, our dealers and even ourselves for surviving the year. For Reesink, we have had to become a different business from this time last year. 

 

“COVID-19 forced us to make some changes. We saw some of our well-known customer-facing colleagues take early retirement as a result of the changing workplace, whilst some also left to seek out new challenges. So, we took the opportunity to restructure the business, and refocus on the fundamentals.

 

"We welcomed, and congratulate here, Alastair Rowell in his appointment as UK sales manager and Trevor Chard as national account manager for Toro fine turf and grounds. In addition, we welcomed new people to the Turfcare sales team, regional business manager David Timms for the southwest and midlands and salesman Daniel Tomberry for the midlands.

 

“Customers in certain areas of the country have a new Reesink contact, not because their old contact left but because we’ve made those structural changes to the areas our representatives work in and because our sales reps now cover both Toro fine turf and grounds machines. Post-Covid, it made sense to now have one contact for all Toro customers in one area, a single source of expertise.

 

“We focused on our parts, servicing and support division. We knew how important this would be to so many throughout lockdown. During that time machine sales slowed, and clubs kept hold of existing machines due an upgrade for longer. Toro has the benefit of longevity and durability on its side, but still replacement parts have never been more in demand. We’re pleased to say we and our dealerships were able to continue fulfilling performance parts orders throughout that time and we hope it helped.

 

Greensmaster eTriFlex 3370

 

“Despite the challenges, concerns and distractions, 2020 had some highlights. We launched our online national network Ree.Own, providing access to the best used Toro machinery available in the UK. The launch of the Toro Greensmaster eTriFlex 3370 all-electric riding greensmower was another highlight.

 

“We are transitioning to Tier V engines in many Toro machines," David continued, "an important and regulatory change for emissions control that has impacted the whole industry. And we welcomed Franklin pumps and SRC two-wire irrigation controllers to our product portfolio to provide an even more comprehensive range of irrigation solutions to our customers.

 

"Plus, during 2020 we saw a significant pick-up in interest in Toro’s GeoLink precision spray system, which impacts chemical waste and over-spraying." 

INDUSTRY 'A CLOSED SHOP'
Many new employees simply moving between dealerships
 
AGCO trainees

The agricultural machinery industry is not looking in the right places for new talent says Richard Charles, AGCO's training manager.

 


When Richard Charles told his careers master at school that he wanted to be an agricultural engineer, he was "ushered out of the room as the master hadn't a clue what that meant!"
 
Today, Richard is Manager Aftersales Customer and Training  UK and Ireland for the AGCO Corporation and it is just one of the stories he tells about the challenges of finding new and talented recruits for the Agri-Turf industry in the latest episode of the Inside Agri-Turf podcast.
 
"The problem is that we are seen as a 'closed shop',"he says, "and somewhat incestuous with most vacancies being filled by people already working in the industry. We really ought to be looking to recruit from largely untapped resources, such people leaving the Services."
 
He also says that the industry needs to develop a clear identity and when the opportunity arises to exhibit at skills fairs, it should do so as an industry rather than letting individual companies be represented.
 
Richard also talks about the impact of COVID restrictions on AGCO's current apprenticeship programme and the company's own training schedule.
 
He also talks about the challenges of providing training for the four brands in the AGCO portfolio. “We are focussed on the individual brands,” he says, “and this can result in some duplication in training courses for dealers.”
 
He said that the industry is still too 'gender-fixated' (e.g male dominated) and says that other industries such as construction, railways, automotive seem to have a significant proportion of female employees and that they are often featured in media coverage.
 
As to the reasons why people chose to leave the industry, it was rarely because of pay or working conditions. “We need to make people feel important and valued, and provide them with guidance rather than instruction to figure out problems for themselves.”
 
GREENKEEPING TALENT TO BE CELEBRATED
Toro Student Greenkeeper of the Year Awards entries open
 
: 2019 winner Jason Norwood visiting The Toro Company headquarters in Minnesota as part of his prize for winning

Toro have said if there’s ever been a time when the industry needed something to look forward to and a reason to applaud greenkeeping talent, it's 2021.

 


Toro have said if there’s ever been a time when the industry needed something to look forward to and a reason to applaud greenkeeping talent, it's 2021 - and the company believes their Student Greenkeeper of the Year Awards is the way to do just that. 

 

2019 winner Jason Norwood visiting The Toro Company headquarters in Minnesota as part of his prize for winning

 

The company say 2020 was a tough year, and there are undoubtedly so many greenkeepers who coped stoically in the face of furlough, put in the extra mile on a reduced team, used lockdown time to further their learning or just shined in adversity. 

 

David Cole from award sponsor and Toro distributor Reesink Turfcare said, “Think back over the last year to which of your members of staff have demonstrated their mettle whether in the actual or virtual classroom or out on the course. Let’s make sure all of those young people are recognised with a nomination, give them a chance to look back on this time and remember it for something positive.

 

“It was hugely disappointing not to have a competition last year, but we’re determined the 32nd Toro Student Greenkeeper of the Year Awards will be even more valued, and no one should miss out because of the unforeseen pandemic. Therefore, we’re welcoming new entries for 2021 who will join the entries from the postponed 2020 event.”  

 

Toro say it’s important to remember that it’s not just the students who benefit from winning, their nominators do too. Not only do they receive an all-expenses paid trip abroad the following year, but the winners’ success is testament to the excellent support they receive from their employers and lecturers, who Reesink and Toro are also delighted to be able to recognise.

 

Entries are open now for both the main and young awards. All those who entered the 2020 competition will automatically be put forward for the 2021 awards. If someone is currently 21 and has their birthday before the next application stage, they can choose whether they would like to stay in the young group or move up to the main award.

 

David concludes, “For 31 years the Toro Student Greenkeeper of the Year Awards have supported the brightest young professionals in the UK’s greenkeeping industry and never before has there been a cancelled event. We do not plan on that being two! If the regional stage usually in July has to be held virtually, not a problem, we’re all au fait enough with Zoom now! We are confident that the September Finals can happen in a positive and engaging format and, excitingly, at a new location, yet to be revealed.”

 

Both employers and lecturers can make nominations. Visit reesinkturfcare.co.uk/sgoty to find out how to make a nomination into the 2021 awards.

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