As every farmer knows, the job is not without its difficulties.
Yes, agriculture can be lucrative. And the feeling of a good season is tough to beat, too. But even when that happens, it can bring some pretty sizeable expenditures with it.
Harvesters and other farming equipment cost tens or even hundreds of thousand of dollars. How can you shave these costs down?
Well, one way is to take part in a growing agricultural trend and source your harvesting equipment from cheaper parts of the world such as China, India and South America.
Savings of around 40%-70% are on the table. But there are a few things worth knowing to ensure global sourcing success for agriculture.
Schedule considerations
Naturally, the ebb and flow of summers and winters put significant schedule considerations on any farming operation. So when you’re adding a global supplier to your regulars list, overseas logistics must be weighed in to your timing.
Many companies from all kinds of sectors import various types equipment and products globally. But agricultural equipment constitutes some of the larger and more complicated products in freight over the world’s oceans.
While sea freight typically takes around four weeks, it can sometimes take longer for harvesters and other oversized agricultural equipment.
Naturally, you can discuss delivery times with your suppliers. But don’t leave your enquiries too late in the season. Otherwise by the time you make the phone call, you’ll have already missed the boat.
Quality Assurance considerations
Similarly, quality assurance is especially important to farmers. Having a piece of mission-critical equipment or a vehicle break down at a crucial point in the harvest cycle can cost a small fortune.
Many industries employ third-party auditors to assess products prior to shipping. Due to the complex and specialised nature of agricultural vehicles and equipment, it’s best to employ a specialist third-party inspector who knows exactly what to look for.
Similarly, safety regulations are different overseas than back home. Naturally, it’s important your country’s safety regulations are adhered to. A third party inspector will also ensure these specifications are met so you can legally use your equipment once it arrives.
Cultural differences
Farmland and the machinery used to work it varies greatly in different parts of the world. A good example is that China has much smaller farms areas, so the domestic tractor in China is considerably smaller than you might expect to find ploughing fields in Australia.
Consequently, the way different cultures think about equipment is different to the way you might be accustomed to. That, plus the language barrier, means that a policy of crystal clear communications must be adhered to if you’re to ensure you get exactly the product you’re looking for. Language must be unambiguous, and it’s best to spell every detail out clearly just to be sure. Never assume anything is obvious.
If you’re interested in the 40% to 70% average savings of sourcing agricultural equipment from overseas but want to make sure you get the ordering process right, contact the Mawson Global team for a QuickLook Analysis today.