The new owner of Morris Industries sees market opportunities for the Saskatoon short-line equipment manufacturer in the former Soviet Union and in the development of cellulose ethanol.
But Casey Davis said his plans for Morris are evolutionary, not revolutionary.
“I didn’t have a long-term plan (to buy the company), but the opportunity arose and here we are,” he said. “I feel very lucky to have acquired such a great business.”
Wendy Morris sold the 78-year-old family-owned company to Davis June 7.
Davis said despite the tough times that prairie agriculture has experienced over the past two decades, he feels optimistic about the potential of his newly acquired business.
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“This is a sound business with some great opportunities going forward. I see the same thing for all of agriculture.”
Davis had previously been Morris’s chief executive officer and president, but had been away from the company for the past 18 months.
“This is a big commitment for my family to take on a company of this size, but we know it well,” he said.
“I was there for four and a half years so there aren’t any surprises in the purchase. We are planning business as usual at Morris.”
The company makes air seeding and bale handling equipment.
It operates manufacturing plants in Yorkton, Sask., and Minnedosa, Man., retail equipment dealerships in Yorkton and Virden, Man., and the head office and marketing centre in Saskatoon.
Started by George Morris at a small shop in Bangor, Sask., in 1929, the Morris Rodweeder Company moved to Portage la Prairie, Man., in 1935 and Yorkton in 1945.
With the decline in field tillage applications the company has moved over the past 15 years into air seeding technology, reduced tillage equipment and bale transporters.
The company markets its products globally and has been expanding in Russia, Europe, Australia and, South Africa. Davis said he plans to expand the company’s sales efforts in Eastern Europe.
“When I was here before, I worked to develop that market. It served to diversify Morris at a time when the Canadian farm economy was suffering,” he said.
Davis sees potential in the adoption of modern farming practices in Russia and other former Soviet countries.
When Davis was president, the company also acquired a line of hay and straw handling equipment.
“I got us into that just before (BSE was found in North America). It wasn’t the best timing.”
However, Davis sees opportunities for the bale moving equipment as the livestock sector adjusts to higher grain prices caused by grain ethanol demand.
He thinks feeders will need to offset grain with more hay and straw and that means the bulky commodity will have to move longer distances to the big feedlots. The market for this equipment will also expand once the cellulose-based ethanol sector becomes commercially viable and increasing volumes of straw will have to move from field to plant, he added.
A rising Canadian dollar, while a concern for Davis, isn’t a threat to the company, he said.
“Our exports to the U.S. will be affected, but the steel and our supplies fall in price as the dollar goes up. Gains against the American currency makes some things, such as new manufacturing technologies that will make us more efficient, cheaper,” he said.
