John Smith: Market of Telescopic Handlers in Ukraine Will Continue to Grow
Photo by: Latifundist.com
Recently, journalists of Latifundist.com and Traktorist.ua, supported by the British Embassy's Department of International Trade, had the opportunity to visit the facilities of one of the world-wide manufacturers of heavy construction equipment and machinery — JCB. At the company's headquarters in Rocester, England, we spoke to John Smith, General Manager at JCB Agriculture. He spoke about trends in agricultural engineering, leading British brand, promotion of the brand in the Ukrainian market and the company's promising future.
Latifundist.com: First of all, tell us what JCB novelties in 2018 will lead the sector of agricultural machinery in 2018?
John Smith: One of the novelties is JCB TM420, hybrid of telescopic and front handlers with articulated frame and a load capacity of 4.1 tons. Also the premiere introduction of the JCB 560-80 model equipped with Agri Pro and a hybrid transmission JCB DualTech VT took place at LAMMA 2018 exhibition. And one more is a new model of the front-end handler for the compact cargo — JCB 403 and a mini handler Teleskid with a side turn and a telescopic boom.
Latifundist.com: Modern agrarians are eager to use wide-angle technology and generally large machines. In the main agricultural countries (Argentina, Canada, Ukraine) the demand for powerful 500 hp tractors is very high. Is it possible to assume that the JCB’s machinery will develop in this direction?
John Smith: If we talk about our own machinery, at the moment JCB sees great potential in 160 ph to 335 hp models and focuses on them. We do not plan to produce tractors of higher power yet. As for the handlers, we introduced the largest telescopic handler JCB Agri Pro 560-80. Supporting the fact that our customers are extending their facilities and require more powerful machinery, this model has a loading capacity of 6 tons and a bucket capacity of 5.7 m³, which lifts to a height of 8 m.
If we talk about the trends in agricultural machinery production that are observed in Western Europe, farmers here are more interested in universal machines, rather that powerful ones. In other words, purchasing a 300 hp machine, they want to use it not only in field work, but also in other operations, where they usually used smaller units.
Latifundist.com: What general trends are there in the company’s agricultural machinery sector over the last 5 years?
John Smith: The main trend that we observe is the movement towards more efficient economical solutions in production. Since business marginality reduces much almost all over the world (especially in the agricultural business), our clients pay great attention to production costs, in particular, to machinery.
Latifundist.com: In the agricultural sector, JCB focuses on handling machinery, whereas tractors are not so widely represented. Will the focus shift in the future?
John Smith: Undoubtedly, handling machinery for agricultural sector is the main direction and the sales volumes are significant. We see that our range of agricultural machines is the widest in the world. Despite this, the JCB Fastrac takes its place in the market of integrated tractors. And taking into account the tendency to reduce costs, the focus from production costs shifts towards tractors.
Latifundist.com: In 2016 JCB imported to Ukraine 500 new telescopic handlers and the same number of used machines. In your opinion, will the same positive dynamics continue this year?
John Smith: We cannot forecast any specific figures for 2018 regarding exports to a particular country. We can only discuss global figures. But we see that more Ukrainian agrarians are interested in the application of specialized loading equipment. They need special handling machines, for example, tractors with front-mounted loaders. Undoubtedly, the market of telescopic handlers for Ukrainian agricultural sector will grow in the near future.
Latifundist.com: Recently, you presented a sprayer that is mounted directly on the tractor. How popular is this solution? What are the sales volumes and when will such innovations be introduced in Ukraine?
John Smith: This solution is quickly gaining popularity in the UK because it enables the installation of additional equipment on the rear platform of the tractor. It also makes it possible to further extend the universal characteristics of the tractor. Usually, large enterprises or companies that already have self-propelled sprayers choose this solution, for example removable sprayer on the basis of Fastrac. They use Fastrac tractor during busy periods to increase productivity.
Latifundist.com: Is it mounted only on Fastrac tractor?
John Smith: Yes, it is mounted on the rear platform of Fastrac tractor. A common tractor does not have such a loading capacity of the rear platform. Integral tractors and Fastrac tractors also have high speed and good suspension.
Latifundist.com: How many Fastrac tractors appeared in Ukraine over the past year?
John Smith: In 2017, we just started active promotion of Fastrac tractors in Ukraine, and 7 units were delivered.
Latifundist.com: Now 70% of all buyers of telescopic handlers in Ukraine are crop farms. Do you plan to increase the segment of products for livestock farms?
John Smith: We are focused on livestock sector for the last 2 years. We promote our solutions directly among dairy farms (for feeding, for feed preparation, silage laying, etc.). Of course, it is our priority for the coming years.
Latifundist.com: What are the JCB's investment plans in Ukraine? What is the strategy?
John Smith: We work through a dealer network to provide quality technical support. As for the development of the dealer network, in 2017, 6 new service centers were set up in different regions: Poltava, Sumy, Khmelnitsky, and Odessa regions. In 2018, we expect to expand our presence in 5 more regions.
Latifundist.com: Is the JCB management aware that Ukraine, as a young market, is in dire need of promotion of the partner program? This is an important condition to increase the sales volumes.
John Smith: No doubt, we understand this. Since last year, we are working with a potential partner and are completing the JCB Finance program. However, I cannot specify the exact timeframe for launching the program.
Latifundist.com: In 2017, the company celebrated the release of the 500,000th engine. What other records and achievements are you proud of?
John Smith: The most significant event was the 40th anniversary of the production of telescopic handlers, which we celebrated on October 20. In 2018, we will celebrate the 50th anniversary of the first front-end handler production and also the 35th anniversary of the front-end agricultural handlers production. So, we have a great experience in the production of these machines for agricultural sector.
Latifundist.com: What are your plans for promoting the JCB brand in the world and in Ukraine?
John Smith: We have a clear strategy for the production of telescopic handlers. It includes meeting the strict requirements for specialization and completing the model range for the AIC. That is, we focus on specialized machines for working with agricultural materials, and the future of the company is definitely associated with the development and promotion of Fastrac tractors.
Latifundist.com: Thank you for the interesting conversation!
Illya Esin, Latifundist.com