Expansion for strength
Expansion for strength
Notts-based EMTAK
machinery ring intends to
broaden its horizons. But the
rings communications
manager, Simon Kidd, says
farming will remain at the
forefront of its activities.
Andy Moore reports
EAST Midlands machinery ring EMTAK is confident its continued expansion into new services will give members the broad-based strength it needs to thrive.
Ring communications manager, Simon Kidd, says that since 1994, EMTAK has seen its membership peak at 350 and drop to 300 due to suppliers overestimating the amount of work the ring could provide.
"An increase in farms going out of business, amalgamation and a shortage of work has led to a number of our supplier members leaving the ring," says Mr Kidd.
But he insists that this has not been to EMTAKs detriment. "The ring is now more streamlined and has more active members who provide a reciprocal core business within it. In the past, some members rarely used the ring, which meant they were only making a little contribution to turnover."
Trimming the fat in recent years has also done little to impede the rings impressive expansion. Annual turnover increased from £650,000 in 1994 to £1.6m last year, with EMAK extending its operating radius to 60 miles from its base near Newark, Notts.
"The ring now covers over 1700sq miles from Doncaster to Corby and Lincoln to Ashbourne," says Mr Kidd.
The largest growth business in recent years has been in the supply of seasonal labour, which has risen by 300% due to the trend for farms to lay off full and part-time workers. "Fewer farms these days can employ workers on a full-time basis with a salary. It does not take a genius to work out that hiring a part-time worker at £7.50/hour makes more economic sense than paying a full-time worker a salary."
But there is a down side. The reduction of skilled labour in agriculture has forced EMTAK to recruit more workers from the construction industry, which now comprises half of its total labour supply.
The workers are supplied through two agencies which aim to find those with expertise, experience and qualifications in operating farm machinery.
During winter, the workers are kept busy on building sites or driving lorries, while the rest of the season sees them employed on regular farm machinery operations. Less skilled workers are employed for manual jobs such as vegetable packing and sugar beet "rogueing".
EMTAK can also supply self-employed and gang labour from £4.50/hour a worker. Last year, the ring supplied over 10,000 hours of labour, netting £50,000.
Alongside labour, EMTAK has seen significant growth in supplying baled straw for bedding carrots grown throughout Notts and Lincs. Now turning over £250,000, the expansion has doubled the requirement of Hesston bales to over 21,000.
"A large increase in growing acreage and the need for carrots to be kept longer in the ground has created a high demand for straw to provide frost protection," says Mr Kidd. "EMTAK is well geared to supply this volume of straw because of its geographical location and because a large number of members grow cereals and vegetables."
Straw is baled at £5.50 a bale by four ring members and collected, carted and stacked by a further 10 members for £3.50 a bale. Straw spreading is carried out at a rate of 100 bales a hectare (40/acre).
"Although the ring makes very little money out of the straw supply business, our members make good returns and the service keeps them going from the summer through to winter," says Mr Kidd.
Yet another enterprise which has achieved notable expansion over the past seven years has been the fuel, oil and parts supply service. Co-operating with parts suppliers and eight fuel companies, EMTAK aims to deliver significant cost and time savings to each of its members by buying in bulk.
"Our members can save about 0.5p/litre on fuel and up to 27% on parts after their order is put out to competitive tender," he says. "Like all machinery and labour services, the fuel supply service requires a 2% commission from the demander in addition to an £85 annual subscription fee."
Although the ring is now used to providing a higher volume of work through a reduced membership, there are plans to increase membership to 350 over the next two years.
"Farming will remain at the forefront of our activities, although we aim to spread our wings into non-agricultural work which appears to be where the opportunities are," says Mr Kidd. "This will be in the public sector and will revolve around environmental, forestry and county council work." *
EMTAKFACTS
Managing director Roger Hellawell.
Base Hall Farm, Kirklington, Newark, Notts (01636-815815 enquires@emtak.co.uk).
Communications manager Simon Kidd.
Operating area 60 miles of Kirklington.
Farming Livestock, combinable/root crops.
Members 300.
Fees £50 non-returnable share, £85 annual subscription, 2% commission on each half of transaction.
Usage rate 240 active members, 10% full time contractors, 10% one-man units, 15% farmer contractors, 65% farmers.
Turnover £650,000 in 1994, £1m in 1997 and £1.6m in 2000.
Most popular services Labour and machinery supply/hire, straw baling, carting and spreading, combining and root crop work.