Thursday, April 7, 2011
FROM RUSSIA WITH PUMPS
Russia has become a new and exciting market for Cornell in the past two years. We have had success in the agricultural, manure and Redi-Prime® markets and the potential appears to be growing daily.
Agricultural has taken center stage as pivot company OEM’s have been able to combine our pumps with both linear and pivot sales – specifically in Southern Russia. Demand is increasing and the Russians are seeing the significance of using modern efficient machinery versus WWII era equipment. It also appears that the government is backing this conversion to modern machinery, based on the interviews I conducted while visiting the country. Thus financing is becoming available to assist local farmers in purchasing new equipment. In addition, last year’s drought caused the country to rely on agricultural imports for the first time in many years which has increased the awareness for the need of supplemental irrigation. Also, potato processors, such as Frito Lay, have issued contracts to local farmers to increase production and uniformity in potato crops in order to supply the food processing industry with an ample amount of product to serve the Russian snack industry. The pivot OEM’s are benefiting from this project which in turn provides sales for Cornell.
Russia will continue to be a great market potential for Cornell, especially if commodity prices remain high and consistent.