U.S. total farm tractor sales fell 14.5 percent for the month of May compared to 2021, while U.S. self-propelled combine sales for the month declined 12.7 percent to 315 units sold. The 100+ horsepower 2WD segment was once again the only growth sector in the U.S. market for the third month in a row, up 13.9 percent, indicating continued demand in row-crop agriculture, while mid-range tractors between 40 and 100 horsepower fell 16.4 percent, and the sub-40hp segment were down 15.9 percent. 4WD tractors took a bigger drop than their 2WD cousins, down 30.4 percent. Total farm tractor sales and combine sales are both down 14.2 percent year-to-date.

In Canada, unit sales fell 11.3 percent, despite 2WD units in the 40-100hp and 100+hp ranges, and 4WD tractors growing, led by 100+hp units up 21.8 percent. Total 2WD unit sales were down 11.6 percent due to a fall in sub-40hp units. Combine harvesters were down as well in Canada, falling 28.4 percent to 78 units sold. Year-to-date farm tractor unit sales are down a 8.6 percent in Canada, while harvesters are down 28.1 percent.

 

“Supply chain remains the primary issue in the ag equipment market right now. Another thing to keep in mind, especially when comparing numbers year-over-year, is 2021 sales were significantly above historic trends.”

said Curt Blades, senior vice president, industry sectors & product leadership at the Association of Equipment Manufacturers.

Source: AEM

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Supply chain disruptions have been a challenge for manufacturers throughout the agriculture sector over the past year. Since the pandemic, the availability of inputs related to the production of agricultural equipment has decreased dramatically. Steel, rubber, and computer chips are just a number of the components that manufacturers have struggled to get their hands on.

While the cost of materials has increased as well, Claas’ primary focus is ensuring access to the components needed to build machines. Claas encourages growers to get their orders in during the company’s Pre-Sell Program period, starting now, in order to help with production planning and ensure timely delivery.

“While our manufacturing has remained resilient throughout the pandemic, supply chain disruptions continue to impact the agriculture industry as a whole. It’s important for us to understand what products are needed for next year and that is why we have opened up our order books earlier than normal with an even broader line of incentives to farmers and contractors. This line of sight on demand allows us to manufacture products more efficiently and that is something we are sharing with our customers,”

says Eric Raby, President & General Manager – Sales, Claas.

Claas is offering Pre-Sell Program incentives including low financing rates and early order discounts on their equipment to those proactive customers. To learn more, talk to your local Claas dealer.

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Volvo Construction Equipment has completed a 75,000-square-foot expansion of its Reno, Nevada, regional parts distribution center. The project, in conjunction with Volvo Group Service Market Logistics, increases floor space by 125% and brings parts closer to construction equipment customers with faster delivery times and reduced shipping costs. Volvo Group has operated the Reno Distribution Center since 2006, supporting the Volvo Trucks and Mack Trucks brands.

Globally, North America is one of the largest markets for Volvo CE. Over 20% of the region’s total business comes from the western third of the United States.

With the expansion, ground orders for California and the Pacific Northwest are now arriving two days faster compared to shipping from the Volvo Group’s central distribution center in Byhalia, Mississippi. A new Dedicated Delivery Service (DDS) now operates out of Reno as an exclusive carrier to expedite overnight shipments to western U.S. dealers, arriving at dealer branches by as early as 4 a.m. the next day.

The regional distribution center offers additional benefits including:

• Inventory of critical machine down parts on the shelf in Reno for overnight shipping;
• Parts order cut-off time extended to 4 p.m. PST; and
• Cost savings to customers, since more deliveries, can ship ground versus air

Delivering the service commitment

“By pooling the resources of the Volvo Group, these improvements to our North American logistics network increase efficiency and provide faster response times. Our commitment is to ensure we support machine uptime for our West Coast customers, and moving parts closer to where they do business is one of the major steps,”

said Stephen Roy, president of Region North America, Volvo CE.

Many western U.S. dealers are challenged to support customers spread across a vast territory. Planting a stand-alone parts center in their region has a significant impact, says Tom Zimmer, president of Tri-State Truck & Equipment.

“The Reno parts center has cut our lead times by 40-50% for construction equipment stock orders. As a Volvo Trucks and Mack Trucks dealer, we have seen the faster delivery times gained by having an aftermarket parts warehouse in our region. Now, we can offer the same level of uptime support to construction customers,”

said Zimmer, whose dealership services customers in Montana, Wyoming, and the Nebraska panhandle.

While the expansion directly impacts customers in the western U.S., customers, and dealers across the country are benefitting from rebalanced parts volumes throughout the supply chain. Volvo CE ended 2020 with record parts availability and dealer fill rates, despite constraints caused by the pandemic and increased demand on freight carrier services. These results demonstrate how Volvo CE continually lives and enhances its Service Commitment.

Volvo Group efficiencies

“Through substantial investments, we expanded our Reno facility and refined workflows to extend this strong level of service and support to another Volvo Group brand, Volvo Construction Equipment,”

said Bob Hochwarth, Vice President, Volvo Group Service Market Logistics for North America.

To support higher volumes and maintain agility, additional employees were hired and an onsite training center was created. New collaboration spaces and a central command center for team leads to improve communication flow.

“The employees at this site have proven their abilities through sustaining top-tier quality and productivity — attributes that make a meaningful impact for dealers and customers across the Volvo Group,”

said Hochwarth.

The Reno Distribution Center has been consistently ranked as one of the highest-performing warehouses in the North American automotive sector by third-party benchmarking studies.

The expansion follows the opening of the Toronto Distribution Center in 2019. The Volvo Group parts distribution network spans eight locations in the U.S. and Canada

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In a dairy farm, biosecurity is a daily occurring concept. There are several measures that a dairy farmer should put in place to ensure biosecurity, measures that are national and international, interlinked and all requiring a balanced and dynamic attention, which the farmer has learned to deal with. European animal health legislation [Reg. (EU) no. 2016/429) defines biosecurity as

“the sum of management and physical measures designed to reduce the risk of the introduction, development and spread of diseases to, from and within: (a) an animal population, or (b) an establishment, zone, compartment, means of transport or any other facilities, premises or location“.

This “package of measures” and its correct daily application are at the base of food safety. Thus, in any food production, from farm to fork, we need the commitment and professionalism of all operators, encouraged to risk management not only because this is what the law says, but for a matter of social responsibility aiming at safeguarding animal, plant, human health and protecting the environment. Farmers play an essential role in dairy production since they contribute to a safe milk for the final consumer thanks to their everyday activity in dairy farms, according to good hygiene practices and an effective management plan.

Evidently, the biosecurity approach does not stop at the farm gates, and all others operators cooperate and work to provide safe products to the consumer. Dairy farmers will do their best in farms under their control, while guaranteeing collaboration to the operators that come in the following phases of the production.

Their commitment covers several aspects, all closely related to each other. As a fundamental biosecurity goal, the farmer acts in order to reduce the risk of introduction, development and spread of diseases in the herd and from their farms to other neighboring farms or interacting activities, as established by the aforementioned definition of biosecurity.

As we all know, everything a farmer does to impede, reduce or prevent zoonoses from reaching humans is a set of actions aiming at ensuring the food safety of milk, as well as an animal health goal. There are many aspects to which dairy farmers have to pay attention: let’s see some of them.

Animal movement, just introduced or already present in the dairy farm, is the aspect that represents the most important risk for the health status of the herd and therefore requires simple but essential rules to follow. Farmers have to maintain rooms housing animals, storage rooms and the milking parlour clean.

Attention should also be paid to the staff, that should work in only one farm to not be a carrier of potential diseases. Preventing infestations (insects and other animals, such as rodents, birds, etc.), as well as pest control are highly important. Other domestic (dogs, cats) and wild (e.g., wild boars) animal species can represent sources of infection and appropriate actions should be carried out also in this case.

Precautions and management measures should be defined and implemented both in the case of entrance of new and regular visitors. Furthermore, farmers should be able to recognize certain signs related to the most common infectious diseases for dairy cattle [infectious bovine rhinotracheitis, bovine viral diarrhea, paratuberculosis] and implement correct operative preventive and control plans (vaccinations, elimination of infected animals, eradication, etc.).

We should not forget the need to know common signs of endo- and ectoparasitic infections, as well as the ability to prevent and control these infections, in particular in younger and grazing animals by means of control and eradication plans. For all these aspects, dairy farmers need to be supported by professionals such as veterinarians and other experts on the subject.

Cows’ udder infections represent a high risk for biosecurity in dairy farms, being the main health problem in this type of farms. Particularly in dairy cows, the tool used to monitor the prevalence of infections is the so-called somatic cell count (SCC): although this data does not specify exactly which microorganism is responsible for the infection, its correct interpretation makes possible for us to understand whether there is a suspicion of prevalent infection in the farm. Regardless, the information relating to a high value of somatic cells is that we have an inflammatory reaction affecting the mammary tissue, or mastitis.

In the future, livestock production will be involved in the great and difficult challenge of fighting antimicrobial resistance (and therefore antibiotic resistance). Infectious diseases that proliferate in a farm oblige the dairy farmer to use antibiotics and, given the current trend of the antibiotic resistance phenomenon, biosecurity measures are crucial.

However, sometimes preventive measures are not sufficient since it may happen that biological, physical (for example, excessively stressful milking procedures for cows’ udders) or chemical agents lead to mastitis, making the mammary tissue ideal for bacterial infections, although we have done a lot in our dairy farm to prevent them from spreading.

Before resorting to antibiotic therapies, there is a possible complementary veterinary solution that helps the natural self-regeneration of the tissue, and is made by OZOLEA: the veterinary device Ozolea-Mast for intra-mammary use. In the previous moments a mastitis is considered clinical, a secretory and functional disorder occurs frequently, and it is commonly identified by the milker for the presence of clots in milk, or for a variation in the electrical conductivity of milk.

The adequate support to the functionality of the tissue and the physical-mechanical filming effect of Ozolea-Mast, while protecting the mucosa, allow the tissue to proceed with natural regeneration, increasing the possibilities of the tissue itself to manage autonomously a possible bacterial aggression. The bioengineered oil barrier created by Ozolea-Mast is a very uncomfortable environment for bacteria: repeating the application until full tissue competence is achieved makes bacterial colonization difficult, slowing the aggressiveness of its attack.

The use of Ozolea-Mast does not have the unique goal of facilitating this regeneration process, but aims at much more: using Ozolea-Mast means being able to maintain the animal in a state of welfare and productivity, before the disease occurs, which would mean loss of productivity, necessary intervention with pharmaceutical products, related side effects, elimination of milk during the withdrawal period, contribution to the trend of antibiotic resistance and repercussions on the supply chain, stress for the animal and further lower productivity.

Source: Ozolea

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Today, Representatives Darin LaHood (IL) and Jimmy Panetta (CA) introduced the Providing Liquidity for Uncollectible Sales (PLUS) Act. This legislation provides a tax credit to offset uncollectable debt incurred as a direct result of COVID shutdowns. It is supported by the United Fresh Produce Association, the International Food Distributors Association, and National Fisheries Institute.

The foodservice distribution industry collectively experienced more than $12 billion in uncollected debts as restaurants and other facilities shutdown in response to the global pandemic and were not able to pay their distributors. Seafood distributors reported approximately $2.2 billion of debt owed to them, fruit and vegetable distributors hold an additional $5 billion in such debt, and broadline foodservice distributors reported more than $5 billion of debt.

“Produce foodservice distributors absorbed a devastating blow with the spring shutdown of the restaurant and hotel industry. The impact of lost inventory and unpaid bills is not recoverable,”

said Tom Stenzel, President & CEO of United Fresh Produce Association.

“I commend Representatives LaHood (IL) and Panetta (CA) for introducing the Providing Liquidity for Uncollectible Sales (PLUS) Act, a helpful solution to an insurmountable challenge for produce foodservice distributors and the companies on both ends of their business agreements.”

Foodservice distribution is a crucial part of the food supply chain, delivering fish, fruits, vegetables, meat, and other products to restaurants, schools, hospitals and long-term care facilities. Distributors provide not only food supplies but the essential financing their customers need to purchase these products. Restaurants buy their supplies on payment terms that allow them to generate revenue before the bill comes due, normally 30-60 days after delivery. In the aftermath of the sudden and near complete closure of the food-away-from-home channel, sales plummeted, customers were unable to pay their bills and distributors were left with more than $12 billion in debt.

“Family-owned seafood businesses support restaurants by providing fish on credit, but now are stuck with billions in debt owed them by these customers,”

said John Connelly, President, National Fisheries Institute.

“This legislation will significantly help revive a complex system that brings seafood from water to table. If we don’t have functioning distributors bringing seafood to market, fish will simply rot on the dock, effecting everyone from boat owners to restaurateurs.”

While many of the provisions of the CARES Act provided critical assistance for foodservice distribution companies, it did not account for the biggest issue they face: large, unpaid debts owed to distributors for food that restaurants could not use due to COVID-related shutdown orders. Tax credits for this $12.2 billion in outstanding debts will provide the liquidity distributors need to continue to extend credit to their restaurant customers and help them get back on their feet as the economy restarts.

“The PLUS Act would provide tax credits for uncollectible accounts receivable, ensuring that distributors can continue to provide assistance to their restaurant customers,”

said Mark S. Allen, President & CEO of the International Foodservice Distributors Association (IFDA).

“I applaud Representatives LaHood and Panetta for their commitment to the foodservice distribution industry, a vital part of our economy.”

Foodservice distributors themselves suffered more than a 50 percent decline in sales due to the global pandemic, making it difficult to provide the financing their customers depend on to run their businesses; jeopardizing restaurants’ ability to purchase food and ingredients. Without restaurants and other places where people eat out, the economy will be missing a significant part of the $1 trillion food-away-from-home economic driver. The PLUS Act provides a solution to this complicated and critical challenge for the food supply chain.

Source: United Fresh Produce Association

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AGCO (NYSE: AGCO), recognized three new partner-level suppliers and presented ten supplier awards during its first annual 2020 AGCO North America Virtual Supplier Event. AGCO’s partner-level suppliers have surpassed the top level of achievement in innovation, world-class service, global growth, and cost savings, and have helped the company maintain the highest levels of capacity and innovation during challenging economic conditions.

“AGCO’s global suppliers are critical elements of our mission to deliver dependable and technologically advanced products, parts, and solutions to dealers and growers across North America,”

said Robert Crain, senior vice president and general manager, North America.

“This event gives us an opportunity to recognize their outstanding service, discuss key industry trends, share exciting news about upcoming products, and position our network for growth in the coming year.”

As part of the day’s virtual sessions, senior AGCO executives briefed attendees on topics such as the COVID-19 response and recovery, global market outlook, 2020 key initiatives, and benefits for high-performing suppliers. Innovative technology provided for live and interactive breakout sessions that were filled with insightful information and opportunities for direct Q&A.

“AGCO and our suppliers have built a world-class supply chain that has proven to be robust and responsive in very challenging environments,”

said Michael Clem, vice president, purchasing and logistics, Americas.

“These awards celebrate suppliers who have provided exceptional services in areas such as corporate sustainability, innovative solutions, quality products, and effective collaboration. AGCO, our dealers, and the world’s growers are well-served by these relationships and the outstanding capabilities they deliver.”

 

New Partner-Level Suppliers (in alphabetical order)

Atlantic Container Line (ACL) of Westfield, NJ was represented by Andy Abbott, President.  Founded in 1965, ACL, with its parent company Grimaldi Group, offers extensive coverage in the Mediterranean, Scandinavia/Baltics, and West Africa. ACL has been a trusted AGCO logistics supplier and transport provider for over 10 years, with a distinguished reputation for reliability & customer service.

Flint Group of Fargo, ND and offices in Duluth, MN was represented by Andy Reierson, CEO; Jodi Duncan, president; and Kaia Watkins, director. Founded in 1946, Flint Group helps organizations in diverse industries grow by focusing on strategic marketing communications success. Flint has supplied AGCO with strong performance in cost, quality, account management, and strategic compliance services.

Ports America Chesapeake, LLC (PAC) of Baltimore, MD, was represented by Bayard Hogans, Vice President. Founded in 2009, PAC operates the Seagirt Marine Terminal in Baltimore with 13 berths, direct rail access and the port’s largest and most versatile general cargo facility. PAC has been an outstanding trusted quality logistics service provider, handling the discharging/loading of cargo on ACL vessels and exceeding AGCO’s quality and service standards.

 

AGCO 2020 Supplier of the Year winners (by award)

Direct Materials Supplier of the Year: Alliance Tire Group, a group company of The Yokohama Rubber Co., Ltd.  Founded in 1950, Alliance Tire Company Ltd. is based in Mumbai, India and is a global leader in the manufacture and sales of agricultural, forestry, construction, and OTR tires. Alliance Tire Group is a strategic and innovative supplier for AGCO, providing aggressive, competitive pricing and key support with balers and the Below 100HP CUE Tractors product group.

Indirect Supplier of the Year: Ricoh USA, Inc. of Exton, PA. Founded in 1936, Ricoh USA is the North and South American arm of Tokyo-based Ricoh Company, Ltd. Named the 2020 ENERGY STAR® Partner of the Year, Ricoh is a strategic technology equipment supplier for AGCO, providing price transparency, aggressive price points, best-in-class service, single-point-of-contact, escalation processes, innovation sharing, and new product collaboration.

Logistics Supplier of the Year: C.H. Robinson of Eden Prairie, MN. Incorporated in 1905, C.H. Robinson Company is a Fortune 500 provider of multimodal transportation services and third-party logistics. As a strategic collaborative logistics service provider for AGCO, C.H. Robinson offers year-over-year cost reductions and capacity commitments, as well as flexible, dedicated, and focused customer/account service.

Aftersales Supplier of the Year: Diemo Machine Works, Inc. of Arborg, Manitoba, Canada. Founded in 1982, Diemo is a metal fabrication and machining company that provides AGCO with responsive and reliable service, combined production and aftersales strategies, and exceptional on-time deliveries. Diemo is both a Production- and Aftersales-approved manufacturer that supplies AGCO’s Jackson, Hesston, Breganze (IDEAL Combine) and Aftersales PDCs.

Third Party Supplier of the Year: TAESUNG Mfg. Co., Ltd of Seoul, South Korea. Established in 1985, Taesung began serving AGCO in 2019, with the introduction of Massey Ferguson’s compact series loader and backhoe in North America. Taesung’s engineering collaboration with AGCO provides an adaptive and innovative product design and a competitive, durable, and robust compact tractor platform.

 

Quality & Delivery Performance Award

Three top AGCO suppliers were recognized for their focus on outstanding performance in the quality and delivery category. These companies closely collaborate with AGCO’s engineering, logistics, and purchasing teams to provide the most value and the highest quality solutions for AGCO’s customers.

Steel and Pipe Supply Company, Inc. of Manhattan, KS. Founded in 1933, Steel Pipe & Supply maintains a large inventory of carbon steel products in multiple warehouses, provides value-added processing services, and sustains a strong distribution network.

BARKU Plastics LLC of Cleveland, TN. Established in 2003 as a subsidiary of Barku Kunststofftechnik GmbH, BARKU offers worldwide plastic solutions and a solid reputation of valuable and effective industry know-how.

PEER Bearing Company of Waukegan, IL. PEER was acquired by SKF in 2008 and is operated as a wholly owned, independent brand within SKF. PEER is an award-winning supplier dedicated to reliable and cost-effective bearing solutions.

 

Collaboration & Innovation Award

Two top AGCO suppliers were recognized for remarkable performance in the areas of collaboration and innovation. These companies strategically aligned with AGCO’s design, engineering and purchasing teams to successfully implement design changes and bench testing, which resulted in technological advancements and cost savings.

AY DÖKÜM Makina Sanayii ve Ticaret A.Ş of Ankara, Turkey. Founded in 1947, AY DÖKÜM provides gray and ductile iron machined castings to agricultural and construction machine manufacturers around the world. AY DÖKÜM’s openness to innovation through quick decision making and a flexible production mechanism is key to maintaining their competitive advantage and profitability.

Newstar of Yantai, Shandong, China. Since 1999, Newstar has promoted innovation and responsiveness with a devotion to research, development and production of hydraulic cylinders, hydraulic systems, and ECO plating equipment.

Source: AGCO Corporation

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