Driving into town for sprayer parts this spring won’t be as easy as it once was, but help may be only a phone call away.
Tough times in the farm economy have caused some agricultural spray supply companies to eliminate their storefront operations and move to mobile service.
Millstreet Development Corp.’s AgDepot and Agco Corp.’s Ag-Chem Equipment Co. have replaced some of their retail outlets with mobile service trucks and a traveling sales force.
AgDepot has closed two stores in Manitoba – St. Jean and Brandon – while Ag-Chem has closed four stores in the northern United States and one in Saskatoon.
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Both companies said they have lost money in their agricultural businesses in the last year and have chosen what AgDepot calls a move to a “Superstore” business model.
Jeff Allison, chief financial officer for Millstreet Development, said flooding in southeastern Manitoba last year and a poor farm economy have hurt his company.
“We looked at a variety of ways to improve profitability and this is one of the ways. We will continue to serve farmers, but through our mobile service and sales force…we won’t have to pay to turn on the lights and open the doors.”
He said Millstreet is looking at using more internet on-line catalogues and e-commerce solutions.
Allison said Millstreet was also influenced by Agco’s decision to take away AgDepot’s exclusive Manitoba marketing territory for the Agco Wilmar sprayer.
