Canada: Hockey, Fishing and Ag Manufacturing: A sizeable portion of agricultural implements comes from the "Great White North".

"Gretzky takes the puck at center ice. He slips by a defender and breaks free, feints right... AND SCORES! A beautiful back-handed flip into the net..."

"I'm going to cast out... right there at the edge of those water lilies. Yes. That's a good spot for... WOW! Did you see that Northern hit mat lure?! ..."

Hockey. Fishing. Winter sports. Mosquitoes large as horseflies. Deer flies that can bite through blue jeans. Vast horizons of natural beauty. Toronto. Quebec. Polar bears and Eskimos.

Chances are, these are the images that come to mind when Canada is mentioned. Eh? Take off, ya hoser. There's a lot more to Canada... especially if you make your living with ag machinery.

Canada is also home to a thriving agricultural manufacturing community. According to Brad Michnik, of Saskatchewan Trade and Export Partnership, "There are approximately 1,000 agricultural machinery manufacturers in Canada, employing about 16,000 people. The majority of these are located in Western Canada, in the major ag provinces.

"Our industry in Canada has flourished by our reputation of manufacturing specialized 'shortline' equipment to meet the special needs of worldwide customers. In particular, Canada is recognized as being at the leading edge of large-scale dry-land farming technology, and we are known for proven equipment and technology used in the production of cereal grains, pulses and oil seeds. Equipment for row cropping has also emerged in recent years. This would include equipment for applications such as seeding and tillage, harvesting, hay handling, grain handling, grain storage, and chemical and fertilizer application. As well, we have considerable strengths in the manufacture of livestock and material handling types of equipment."

Some of these manufacturers are rather small, while some employ sizeable numbers. But regardless of individual size, the market in total is considerable.

"The numbers from PIMA-Agricultural Manufacturers (formerly Prairie Implement Manufacturers Association) peg this industry as contributing approximately C$3.25 Billion in sales to the Canadian economy. And that amounts to one percent of all Canadian manufacturing" Michnik said.

A History of Innovation

According to PIMA, "Machinery has been at the heart of Canadian agriculture. It shaped agricultural practices of the region and, in many respects, created the opportunity for rapid European settlement in the late 1800s. The agricultural manufacturing industry has progressively developed as an entity separate from that of commercial or industrial manufacturing. Central to this evolution was the need to develop innovative agricultural machinery capable of meeting the challenges of the Canadian climate. This drive for innovation was critical to farmers who struggle with foreign equipment designed for smaller farms and less arid conditions."

According to Nick Hogeveen, a marketing communications professional specializing in agricultural machinery, "Manitoba, Saskatchewan and Alberta are right in the heart of agriculture country. Many of the new products developed come about as the result of a farmer who has a need that can't be fulfilled by the market. So he invents something to do the job."

Michnik adds to those thoughts. "A drive for innovation is first and foremost. The principle strength of Canadian agricultural equipment manufacturers is their ability to produce innovative and internationally competitive products. We have a proven ability to remain in the forefront of technological innovation, and to react and adapt their products to the changing face of agriculture throughout the world. This industry was built by pioneers such as Leon Malinowski, Wilf Degelman, George Morris, and others whose names we still see on equipment all over the world. This leading edge technology has benefited producers worldwide for decades."

Perhaps as a result of this intensely needs-oriented, innovative manufacturing environment, Canadian implements are generally viewed as being of very high quality.

Avril Goodfellow, of Highline Manufacturing, puts it this way, "Canadian manufacturers help each other succeed by being intensely competitive for the domestic market, which pushes everyone involved to produce their best all the time, in the most efficient way possible... and to continually strive to do even better."

A Powerful Export Force

Canadian agricultural manufacturers are similar to the rest of the Canadian economy in that a tremendous percentage of their output is exported. Up to 85 percent of Canadian production is exported to the U.S. alone, with significant agricultural machinery exports to Australia, Russia, Germany and other South American and European countries as well. That amounts to nearly C$2.8 Billion per year exported.

A natural follow-up to the export issue is, "how much impact has NAFTA (North American Free Trade Agreement) had?"

According to Michnik, "In the years, prior to the implementation of the Canada-U.S. FTA (Free Trade Agreement) in 1989 and then NAFTA (1994), duties were non-existent on farm equipment between Canada and the U.S., so from that perspective there has been little impact by the NAFTA agreement.

"Where there has been an impact is that as the Canada-U.S. trade relationship has grown by leaps and bounds, (Canada and the U.S. now have the world's largest trading relationship) it further reinforces that American farmers feel comfortable buying and using Canadian farm equipment. The U.S. and Canada are each other's best customer. No two countries in the world do more trade between them than Canada and the U.S."

This opinion is reinforced by Goodfellow, who states, "Canada and the U.S. have always had close trading relations. Canadian manufacturers can take advantage of this close relationship and not put U.S. farmers at a disadvantage by having to pay more due to tariffs and duties. Within the company, we do not consider the U.S. to be a foreign market. We look at the U.S. as a domestic market."

Hogeveen elaborates further. "Canada, particularly Western Canada, has a great deal in common with the 'high plains' states in the U.S. We share similar weather, similar farming conditions, etc. There is a natural flow of goods and services between this part of Canada and the U.S... and vice versa... and the trade is good for both countries."

A Reputation for quality

Hogeveen says that, "Canadian (equipment) enjoys a good reputation in the grains sector. The machinery is seen as well-tested and very well-built."

Goodfellow echoes that sentiment. "Canadian agricultural manufacturing is viewed around the world as providing well-built, dependable machines. I believe (Canadians) are respected for our farming practices and the machines that we have invented, designed and manufactured to help farmers around the world."

"One strong example to support this claim," says Michnik, "is the strong showing each June at the Western Canada Farm Progress Show (WCFPS) in Regina, Saskatchewan. For example, in 2002, more than 300 buyers from 30 countries visited the show, for the opportunity to distribute or purchase Canadian farm machinery and services."

To sum it up, Roxanne Carr, manager of the WCFPS, had these thoughts, "The show has been in business for more than 25 years, and has developed a unique and powerful marketing tool--our International Business Centre--to assist Canadian Companies in accessing significant foreign trade and export opportunities. The I.B.C. creates numerous networking opportunities to facilitate meeting and business between our manufacturing companies and the out of country buyer. Buyers continue to be attracted to the show--knowing that they are assured of lots of exposure to manufacturers and distributors of quality Canadian products, technology and services through pre-arranged presentations, meetings, tours and seminars."

The 2003 Western Canada Farm Progress Show takes place June 18-20 in Regina. Information on this event can be found online at www.wcfps.com.