Agriculture seems to be the word on Fergus Robley’s lips. The general manager of Farm Machinery Distributors (FMD), the oldest Massey Ferguson distributor in Africa, says that their success is hinged on right partnerships with customers that can be traced back to 1958 when Massey Ferguson started manufacturing tractors. The company has evolved over the years, but has remained true to Kenyan farmers by offering mechanised agricultural solutions through the sale and aftermarket support of implements and tractors. He spoke to Victor Adar on challenges and opportunities in the agriculture sector.
Some dealers have a niche. Would you say that your business model is designed for everybody or you target a particular market?
Our product line-up caters for small, medium and large-scale farmers. We do concentrate on tractors and implements from 36Hp to 260Hp plus. We do focus on agricultural machinery and this could be described as a targeted market.
Based on your experience, what can you say about farm equipment in Kenya? Is it cost effective? Do you offer dealer support when, say, a tractor develops problems? Are parts readily available?
I strongly believe FMD benchmarks the industry when it comes to aftermarket support (workshop, field service, training and parts). In order for Kenya to continue with its drive for food sustainability, it is important that farmers embrace mechanisation and good farming practices. To do this they must have access to quality, durable and well-priced farm machinery that lasts for many years, which is what FMD offers!
Aftermarket support is vital and farmers know they can depend on us so their machinery works when it is required given most farming in Kenya is seasonal around unpredictable rainfall patterns it is important the farmers choose the right supplier, so that they can have piece of mind to perform year after year with reliable equipment.
To your question is it cost effective? The answer is yes. For example if we take the move from hand tilling to ploughing properly, we see yield increases of three to four times. This alone justifies the upfront expense of embracing mechanisation for all farmers!
What’s the cost a Massey Ferguson tractor?
The cost starts at around Sh1.4m for an MF35 and goes up with horse power and specifications, so we are able to provide competitive prices for the Kenyan farmer.
There must be models that are fuel guzzlers. How can one know of an appropriate model to purchase? Do you also advise customers?
Training is an important element of our business along with qualifying our customers’ needs to give the appropriate machinery for the job in hand. At FMD we do not just sell the machinery, we go on the ownership journey with our customers to make sure they get the necessary return on their investment.
We are not the oldest Massey Ferguson distributor for no reason, we have a low turnover of staff and consequently have accumulated and have a huge knowledge of the Kenyan agricultural machinery market. Furthermore our customers are also very good at sharing information of what happens in the field! From this valuable source of information, we transfer knowledge that is mutually beneficial to farmers involved in the food production for Kenya!
You are passionate about food production and supply chains, is there hope as far as achieving food security in Kenya is concerned?
Yes, in my extensive travels around Africa, Kenya is by far one of the most established agricultural nations and Kenyans have an extraordinary passion for farming!
What challenges are you facing in the market?
Price, especially since Value Added Tax was introduced onto implements this year. The other problem is finance.
With the current tough economic situation, are people buying?
The market is operating at about 50% less than it was a decade ago, and COVID-19 is playing a large part in this with the ongoing uncertainty that the world is experiencing!
Do you have partnerships with lenders?
We are consistently exploring workable finance solutions for the farmers.
What informed the choice of Nakuru as your headquarters? Do you have plans to open more branches across the country?
Nakuru was chosen as it was considered the agricultural capital of East Africa and continues to be the geographical centre of agriculture in Kenya.
Opening branches is an interesting question, but having an extensive branch network does not necessarily bring the brand closer to the customer. I prefer investing in people and transport, so we go to our customers in the field, which is where the tractors work. After all, a tractor moves very slowly from point A to B, so a tractor supplier cannot be looked at like an automotive supplier, we are a different and unique business. Customers expect our support and coverage to come to them.
How significantly has FMD grown?
FMD has grown over the years as agriculture has evolved and we have several implement franchises such as Baldan and Jacto to compliment the Massey Ferguson brand.
How do you convince people to buy your products?
By offering the right product at the right price at the right time!
In your view, do you think the future is bright? What do you expect over the next three to four years?
With COVID-19 it is difficult to predict, however we are lucky in that food production is still a must even if the World is going through challenges, so we have a very positive outlook for the future despite the challenges.
Is the reality on the ground quite different?
Reality on the ground is often judged from hindsight, which as we all know has clarity. The key for us is to remain agile and serve our customers in the manner they deserve.
We are here because of our customers who are farmers and farmers hold the key for human survival as they produce food which all of us need every day so we are lucky to be in an essential industry!
