Why Shoppers for New Orchard Equipment Should Consider Buying Now
January 3, 2023 American Fruit Grower caught up with five suppliers of pruning and trimming equipment.
Here are some of their thoughts on the current state of their sector:
At this time last year, we were talking about supply chain problems. Has the situation improved?
Ananda Van Hoorn, Operations Manager, Infaco-USA: “Since Infaco’s tools carry the Made in France certification, we have almost nothing that has been touched by the supply chain issues that other companies manufacturing in China are experiencing. Our shipments are running on time and our warehouse is fully stocked.”
Grant De Vries, Sales Manager, Vine Tech Equipment: Yes and no. Some things have gotten better, some have not. The things that have gotten better are mainly because distributors and dealers are planning ahead more by having more on order and more in stock.”
Todd M. Frank, Sales Manager, Blueline Manufacturing and Equipment: “Things are still very challenging; however, there seems to be light at the end of the tunnel. The biggest issue is a lack of ocean carrier schedules for container shipment. This problem is especially bad coming from Europe to North America. We are starting to see small improvements in consistency and availability.”
Ryan Amberg, General Manager, Pygar USA, a Felco Group Company: “Lead times for sea freight shipping are still at a high now, taking at least two months to make the transfer from Europe, and I am told the situation is worse if produced in Asia. On top of this, freight costs have not diminished, still holding near all-time highs. Luckily enough, as FELCO produces its own tools in its Swiss factory, and most components are sourced locally, we do not face the supply chain headaches of other brands who simply source from Asia and apply their brand color or aesthetic to the product. We are incredibly thankful for our production team in Switzerland, which does its utmost best to keep our supplies intact and our inventories full for the pruning season.”
Paul J. Licata, Owner/President, BDi Machinery: “There continues to be ongoing supply chain challenges. Lead time for some imported equipment in the past had been eight to 10 weeks, which today is now six months or more. There has been some improvement with manufacturers, which is welcomed news and positive. We should all keep in mind the manufacturers have equal if not even more challenges with the sourcing of raw materials, steel, plastics, and parts vendors that have equal disruption in supply chain channels.”
Felco 211-60 lopper.
Photo courtesy of Pygar USA, a Felco Group Company
How about rising prices and inflation? How bad was 2022? What do you foresee in 2023?
Van Hoorn (Infaco): “We have certainly experienced inflation here, with rising shipping and packaging costs, etc. However, our brand new F3020 electric shear that was released in October is actually less expensive than our electric shear was 10 years ago. We have found innovations that are allowing us to actually lower costs despite these inflationary times.”
De Vries (Vine Tech): “Almost everything has gone up 10% to 30% in 2022. I don’t foresee those same price increases for 2023, hopefully just standard price increases. I don’t think we will see price decreases, if any, until there is a market correction.”
Frank (Blueline): “We experienced significant price increases in 2022. Some suppliers had multiple increases during this year. We are still expecting price increases in 2023. We are hopeful that this runaway train will get under control and bring about some stability by year-end.”
Amberg (Pygar): – “2021 and 2022 were amazingly challenging years for a manufacturing company, as we saw demand rise significantly at the same time as inflation pressure and raw material costs heavily increased due to the war in Ukraine. This meant prices for raw materials like aluminum skyrocketed from the war effort and the lack of Russian market supply. All while shipping costs that were raised to match and speed/reliability of sea freight and domestic trucking took a major hit. We were able to sail through these rocks at FELCO without major damage, thanks to owning our forge and production facilities while planning/stocking more to anticipate the needs of our loyal customers. I can tell you FELCO has made a strong commitment for January 2023 to hold pricing. In a sea of manufacturers constantly shifting to cover a moving target, we believe it is our job to be a reliable partner and maintain our pricing through these market waves as long as we can. This all being said, inflation cannot be ignored and is certainly weighing on all businesses and families at the end of 2022/2023. There is no doubt that food prices are dramatically on the rise as well as transportation costs and inputs for growers. We foresee this effect to continue into 2023 with no clear relief in sight. At this stage inflation seems to be hovering at 8%, and we are not seeing substantial correction at this stage.”
Licata (BDi): “2022 has seen rising prices across the board. Common increases were seen quarterly 5% to 8%, with overall in 2022 pricing increases from 15% to 18%. For 2023, at a minimum expect continued inflationary pressure, with pricing increasing 5% to 10%. Operational expenses for importers and distributors have seen some pricing increases double, and in many cases other expenses having a four times the increase in pricing. When you have a business that revolves 100% around diesel fuel, with no alternative (i.e., ocean freight, rail transportation, trucking, etc.), operation expense management is extremely challenging. Unfortunately pricing and inflation have driven many businesses out of business.”
Any advice for growers regarding supply chain issues and inflation issues?
Van Hoorn (Infaco): “Our advice: Save money on labor by mechanizing the most labor-intensive activities at your farm. When you increase productivity by 40% with Infaco’s electric shear, you’ll see your pruning labor costs decrease substantially and you’ll be able to attract and retain the best workers which has benefits even beyond your pocketbook.”
De Vries (Vine Tech): “Plan ahead at least 12 months. Better chance of getting on time and locking in the price. See if you can make an agreement with the vendor if equipment will arrive after you need it.”
Frank (Blueline): “Buy now. Waiting will only cost more and will likely put you behind the 8-ball in terms of a timely delivery.”
Amberg (Pygar): “I think my advice from last season still stands. Make sure you are purchasing what you need in advance and planning well ahead of your need. While I think supply will be up, the inefficiencies of the shipping system currently will still cause shortages. Some companies probably have also not planned well and will be overstocked, as they were trying to push all their sourcing partners to produce more through the pandemic, and now that we are through that period, they will be trying to offload some inventory. If and when you can, capitalize on these temporary supply spikes to drive down costs.”
Licata (BDi): “We communicate to our customers, if you are considering a machine, which needs to be ordered and/or built to order, do not hesitate. Please place your order as soon as possible. Once you have a machine on order, you at least know that you will get it and not be then impacted by future and continued price increases. Yes, delivery dates can get delayed and other unforeseen supply chain issues may impact arrival, but you will get the machine.”
Turning to the field, last year mechanization was hot. Can we assume that is still the case? Labor issues seem to be more prevalent than ever.
Van Hoorn (Infaco): “Rising labor costs is all we hear when we speak to growers. Just last week we spoke to someone who needs to pay $26 an hour. Infaco’s tools make mechanization painless with tools that are intuitive, require the most minimal training/maintenance, and require substantially less investment than large machinery.”
De Vries (Vine Tech): “Mechanization is still hot and will be for the foreseeable future. Lack of labor, cost of labor, and quality of labor is driving that. Growers are striving to produce the same quality product and maintain profitably and sustainability for the future generations.”
Frank (Blueline): “No one wants to work, let alone in the field, anymore. Mechanization is no longer a luxury; it is a necessity. There are growers in areas of North America that would traditionally never have a labor shortage. Yet they are asking for mechanical solutions because they have no hand labor available to do the work.”
Amberg (Pygar): “With labor an ever more prevalent issue — and has been for the last decade — there will be no shift in the effort of growers to gain efficiencies. FELCO is offering with its electric tools a middle ground for growers where they can gain efficiency while also not diminishing the quality of their crop. This year you will be able to find our electronic product in more retailers than ever before.”
Licata (BDi): “Implementation for mechanization is hot and will continue to be for the foreseeable future. Labor issues were problematic in 2020, 2021, 2022, with it being unknown if or when this may cool. Finding domestic labor has continued to be very problematic, even with raising wages that greatly impact the bottom line, and greatly then have that cost passed onto the customers. A continued testament by growers is that they can’t source the labor, no matter what. Many have shifted to H2A programs and other alternatives for labor sourcing, but even there have had ongoing challenges to have enough workers to maintain operations. This means, even for smaller operations, they are forced to mechanize to continue operating. Yes, efficiency and reducing labor costs have traditionally driven mechanization. If you can’t get the labor period, you must mechanize to continue operations.”
Olmi 400R Pneumatic Air Impulse leaf remover machine.
Photo courtesy of BDi Machinery
Are growers catching on to mechanization and similar advancements in technology?
Van Hoorn (Infaco): “Absolutely. Particularly high-density fruit growers. Because Infaco’s battery-powered tools are hand-held, growers of all sizes from 2 acres up to thousands of acres are calling us because it’s so painless to mechanize both pruning and tying. Many smaller growers want to do this physically demanding work themselves both to deal with rising labor costs and to ensure the quality of the pruning on their farms. Larger growers are also turning to battery-powered mechanization for three reasons: 1) a 40% productivity increase over manual pruning; 2) fewer equipment breakdowns compared to pneumatic pruning; and 3) a 300% productivity increase for high-density orchards tying with Infaco’s electric tying machine.”
De Vries (Vine Tech): “They are adopting when it makes sense. That can depend on the operation. Diversified farms can maintain a larger labor pool. Less diversified or smaller operations have less flexibly sometimes. Vineyards are able to mechanize almost everything if needed. A lot of time a machine will do most of the work, and then they will come in with hand labor to touch up. This can be true for pruning, shoot thinning, sucker removal, and leaf removal. Orchard mechanization is the same idea, but the machines usually can’t perform as high of percentage of the work as vineyard.”
Frank (Blueline): “Yes, many are progressive and have stayed ahead of the curve. Others, however, are now finding that they cannot get the work done and its forcing their hand to mechanize.”
Amberg (Pygar): “When it comes to investing in hugely expensive large machinery, it appears growers are keener to make the switch than they are to make small incremental investments in their technology. We see this with the FELCOtronic tool, which sits around $2,000 retail prices and has been roughly around this price for the past decade vs. something like a new electric tractor at 30 times the price. Even though this small investment in our electric tools can gain up to 30% reduction of labor in the field when compared to conventional hand pruning and save carpal tunnel/fatigue for owner operators or small crews, we still see that growers tend to lean in on larger equipment purchases as a way to modernize their farms. In our experience, the smaller owner/operator growers are the ones quickest to make an incremental change to their operation, as they are the ones most impacted by improving efficiencies at this end of the investment spectrum.”
Licata (BDi): “Yes, growers are embracing mechanization. As farmers seek to grow and expand, it is essential to start early to understand the progression of equipment acquisition and procurement that will be needed to allow the farming operation to function and operate efficiently. Mature growers with labor challenges must also implement mechanization to continue operations, as well as to combat operational operating expense increases and pressures. Whether a new grower, expanding grower, or seasoned grower, embracing mechanization and advancements in technology is essential to operational sustainability.”
Subscribe Today For
