The top five international machinery manufacturers all welcomed the fact that farm machinery would remain exempt from tariffs in the event of a no-deal Brexit, and said they had finance arrangements in place to continue to provide credit to farmers and contractors buying machines in this scenario.
But when it comes to logistics, they have prepared for major changes.
Claas
Claas is moving all the spare parts it will need for the grass season into Ireland ahead of 29 March to avoid any difficulties after Brexit, while 70% of harvesters ordered for this year will be delivered by that date instead of 50 to 60% usually, representing several million euros in additional finance needs.
Claas machines are now shipped from the Netherlands to Ireland around Britain.
“That’s the only way we can guarantee that supplies will be in on time,” said Trevor Tyrrell, chief executive of Claas UK & Ireland.
Massey Ferguson
The AGCO group, which includes Massey Ferguson, Fendt and Valtra, is running a joint project to deliver spare parts to the UK and Ireland in all Brexit scenarios.
In addition, “we’re working with our factory in Beauvais in France where we will have build slots available to us to make sure that we can get tractors this side of the water – both sides of the water – into place for the end of March,” said Joe Ford, tractor sales manager for Massey Ferguson UK & Ireland.
Case IH
Case IH has been building “substantially more stocks” in Ireland and the UK, said the company’s UK and Ireland marketing manager Charles Blessley.
The manufacturer is providing dealers with finance so that they can purchase machines and parts in advance of Brexit.
“Parts can come from France directly and that’s our plan,” Blessley added in case of urgent needs.
New Holland
New Holland, too, has increased its stocking of dealers’ parts and developed direct shipping routes to Ireland – bypassing the UK from stocks on the continent – despite the fact that its British factories are closer to customers here.
“We have 50 to 100 lorries going in and out every day, every single day.
"Eighty-five per cent of what gets produced in the plants is exported, so it’s a nightmare for us but nothing compared to what the car companies are facing,” said New Holland’s business director for Ireland and the UK Pat Smith.
John Deere
John Deere already imports one-third of its machines for the UK and Ireland from outside the UK and is used to customs procedures, but “the volume would increase a lot,” said Jonathan Henry, the company’s sales branch manager for the UK and Ireland.
Jonathan Henry, sales branch manager UK and Ireland, John Deere, at the FTMTA Farm Machinery Show. \ Philip Doyle
While short delays on whole machines will not be an issue, spare parts are often needed in an emergency and “overnight is more of a challenge,’ said Henry.
Deere could fly parts from continental Europe if needed.
“What really matters is what happens to farm commodities,” Henry warned, with a crash in prices and farm incomes the main worry.
Read more
Watch: machinery makers stockpile tractors and parts to beat hard Brexit
New machinery shipping routes and spare parts stockpiles ahead of Brexit
The top five international machinery manufacturers all welcomed the fact that farm machinery would remain exempt from tariffs in the event of a no-deal Brexit, and said they had finance arrangements in place to continue to provide credit to farmers and contractors buying machines in this scenario.
But when it comes to logistics, they have prepared for major changes.
Claas
Claas is moving all the spare parts it will need for the grass season into Ireland ahead of 29 March to avoid any difficulties after Brexit, while 70% of harvesters ordered for this year will be delivered by that date instead of 50 to 60% usually, representing several million euros in additional finance needs.
Claas machines are now shipped from the Netherlands to Ireland around Britain.
“That’s the only way we can guarantee that supplies will be in on time,” said Trevor Tyrrell, chief executive of Claas UK & Ireland.
Massey Ferguson
The AGCO group, which includes Massey Ferguson, Fendt and Valtra, is running a joint project to deliver spare parts to the UK and Ireland in all Brexit scenarios.
In addition, “we’re working with our factory in Beauvais in France where we will have build slots available to us to make sure that we can get tractors this side of the water – both sides of the water – into place for the end of March,” said Joe Ford, tractor sales manager for Massey Ferguson UK & Ireland.
Case IH
Case IH has been building “substantially more stocks” in Ireland and the UK, said the company’s UK and Ireland marketing manager Charles Blessley.
The manufacturer is providing dealers with finance so that they can purchase machines and parts in advance of Brexit.
“Parts can come from France directly and that’s our plan,” Blessley added in case of urgent needs.
New Holland
New Holland, too, has increased its stocking of dealers’ parts and developed direct shipping routes to Ireland – bypassing the UK from stocks on the continent – despite the fact that its British factories are closer to customers here.
“We have 50 to 100 lorries going in and out every day, every single day.
"Eighty-five per cent of what gets produced in the plants is exported, so it’s a nightmare for us but nothing compared to what the car companies are facing,” said New Holland’s business director for Ireland and the UK Pat Smith.
John Deere
John Deere already imports one-third of its machines for the UK and Ireland from outside the UK and is used to customs procedures, but “the volume would increase a lot,” said Jonathan Henry, the company’s sales branch manager for the UK and Ireland.
Jonathan Henry, sales branch manager UK and Ireland, John Deere, at the FTMTA Farm Machinery Show. \ Philip Doyle
While short delays on whole machines will not be an issue, spare parts are often needed in an emergency and “overnight is more of a challenge,’ said Henry.
Deere could fly parts from continental Europe if needed.
“What really matters is what happens to farm commodities,” Henry warned, with a crash in prices and farm incomes the main worry.
Read more
Watch: machinery makers stockpile tractors and parts to beat hard Brexit
New machinery shipping routes and spare parts stockpiles ahead of Brexit
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