Jaco du Preez, the marketing manager for New Holland in Southern Africa, discussed the company’s transition towards sustainability through its latest methane-powered tractor.
The sales of agricultural machinery in South Africa have experienced significant growth over the past couple of years, as indicated by the sales reports released by the South African Agricultural Machinery Association.
Attributing the surge in sales to the elevated prices of commodities, Jaco du Preez highlights that favorable weather conditions have resulted in abundant maize, wheat, and soya bean crops among local farmers. Additionally, the Ukraine conflict has further contributed to the increased prices of these commodities.
According to Du Preez, there exists substantial potential for farmers to expand their export activities to global markets. Despite the challenges posed by the Ukraine conflict in exporting to Europe, opportunities remain for trading commodities with other African nations. Du Preez emphasizes that South Africa’s advantageous position not only enhances its own food security but also contributes to bolstering food security in other African countries.
“Recent years have witnessed farmers achieving impressive yields of high-quality crops. As a result, their cash flow has notably improved compared to previous periods. This positive shift is reflected in the surge of machinery sales, as farmers investing in machinery signifies the positive outcomes of successful harvests,” explains Du Preez.
“Farmers are presented with a favorable opportunity to embrace machinery featuring advanced technology, as their financial capacity allows for such investments at this juncture,” Du Preez highlights.
During the 2020/21 period, New Holland notably observed a significant upsurge in the sale of combine harvesters, with approximately 300 units being sold in this year alone.
Amidst the upswing in commodity prices, Du Preez also points out that the era of the commodity super-cycle is possibly drawing to a close.
Going green
New Holland has established itself as a familiar and prominent presence in the South African agricultural machinery market.
The brand offers a wide-ranging product lineup, encompassing tractors, combine harvesters, balers, forage harvesters, self-propelled sprayers, haying tools, seeding equipment, utility vehicles, implements, and grape harvesters, among various other offerings.
As farmers face mounting pressure to achieve greater output with fewer resources, New Holland has emerged as a pioneer in propelling this shift within the agricultural machinery sector. The company is manufacturing equipment equipped with cutting-edge technology specifically designed for precision farming.
According to Du Preez, the primary driving force behind research and development efforts at New Holland is the imperative to address climate change. This endeavor is notably centered on the concept of embracing sustainability and eco-friendly practices.
The acquisition of Raven Technologies by CNH Industrial, the parent company of New Holland, aligns with the “going green” approach. Raven Technologies is renowned for its expertise in precision technology and data analysis. This expertise facilitates improved efficiency, such as enhanced weed identification, leading to decreased chemical and fertilizer usage. This reduction contributes to lowering a farmer’s carbon footprint and mitigating the environmental impact of agricultural practices.
Embracing eco-friendly practices in the machinery sector involves creating machinery and equipment that operate on alternative fuels, including biofuels. New Holland, in pursuit of this goal, introduced a hydrogen-powered tractor in 2012. Regrettably, this tractor didn’t progress to the commercial market.
The hydrogen tractor didn’t gain traction due to the challenges associated with compressed hydrogen. Although it’s currently utilized on CNH Industrial’s zero-emissions farm in Italy, the prospects for its commercial release seem unlikely.
Nonetheless, in 2021, New Holland introduced a tractor fueled by compressed methane, offering a user-friendly and secure alternative. The T6 Methane Power tractor is set to debut in South Africa in 2023. Featuring a novel 6.7-liter engine, it generates 145 hp, as per New Holland.
“The T6 Methane Power tractor can match the power output of its diesel counterparts while offering the advantages of lowered input expenses and a smaller environmental impact,” Du Preez explains.
The primary hurdle in transitioning to environmentally friendly solutions is the issue of affordability. Nevertheless, this concern might be less pronounced in South Africa than anticipated.
“Embracing full green technology for this machinery type will entail higher upfront costs for farmers,” Du Preez acknowledges. “Nonetheless, the operational expenses of this machine will be notably lower compared to its diesel-powered counterpart. This provides South African farmers with the opportunity to adopt environmentally friendly solutions without incurring additional financial burdens.”
Technology pushback
While the benefits of enhanced technology are evident, there has been resistance from farmers concerning maintenance expenses. Some farmers have pointed out that in the past, less complex machinery could be repaired on-site. With today’s highly advanced equipment, farmers frequently need to seek assistance from service technicians to identify and resolve issues.
“While farmers might not find it as straightforward to troubleshoot issues themselves, the advantages of technology definitely surpass the drawbacks,” states Du Preez. “High-tech machinery offers greater fuel efficiency, leading to energy cost savings for farmers. Additionally, they enhance efficiency in tasks like harvesting, planting, or spraying, minimizing the time spent in the cab and reducing input requirements. This translates to long-term cost savings for farmers.”
He further explains that although a service technician might be required to address the issue, the technology itself often provides a practical diagnosis of the problem with the machine.
“The technician simply needs to connect their laptop to the machine’s computer. The computer itself will then perform a self-diagnosis of the issue, enabling faster resolution. “In the past, farmers used to spend hours attempting to diagnose the problem before being able to address it.”
Nonetheless, Du Preez emphasizes that farmers should take on some responsibility for their machinery to minimize potential breakdowns that might necessitate a technician’s visit to the farm.
“Performing machinery inspections before and after each season is crucial for farmers,” emphasizes Du Preez. “New Holland has simplified this process by providing clear instructions on the necessary checks that need to be conducted.”
New product launches
In addition to introducing the T6 Methane Power tractor, Du Preez shares that New Holland has several exciting launches on the horizon for farmers. These upcoming releases encompass a new round baler, SpeedRower, and the revival of New Holland’s forage harvester.
New Holland is committed to maintaining competitive pricing, even in the face of a declining rand-to-dollar exchange rate. Typically, the company strives to limit its annual price increases to approximately 5%.
The future
Du Preez emphasizes that New Holland’s primary objective over the next three years is to enhance customer service.
“To truly serve farmers, we must offer more comprehensive support.”
He further notes that New Holland strives to enhance farmers’ production efficiency, thereby aiding them in cost reduction and minimizing their carbon footprints.
“In terms of the business, our aspiration is to increase our market share for tractors from 22% to 25%,” Du Preez elaborates.
In conclusion, Du Preez emphasizes that New Holland’s focus is on providing farmers with solutions rather than just selling products. He encourages new farmers, in particular, to reach out to New Holland for guidance and advice.
“When you have a clear understanding of your goals, New Holland can assist you in making informed choices regarding the necessary equipment and machinery for a sustainable and profitable operation. Making the wrong equipment investment can be costly, and we’re here to help farmers steer clear of such mistakes,” Du Preez emphasized.