International influence
In the last five years, international
investment kicked both these companies
into high gear. Seed Hawk s gross sales
have grown threefold since 2006. Salford s
gross sales increased 10 times in five years.
In 2006, Vderstad-Verken AB of Sweden
came to North America looking for
large-scale seeding equipment to get them
into large-acre markets like Ukraine, Russia
and Australia. They found what they
were looking for in Langbank, Sask.
We weren t looking for a foreign investor,
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manager. Vaderstad came to us with a
business offer that benefited both parties.
Vderstad-Verken bought 49 per cent
of Seed Hawk and acquired a no-till
seeding system. Seed Hawk in return
got instant access to Europe. Vaderstad
already had shipping channels, storefronts,
service availability and marketing
in Europe.
Having this existing dealer network
saved us years, says Wyatt. Vaderstad
looks after the overseas sales of Seed
Hawk systems, allowing us to focus on
product development and the North
American market.
In 2004, Nuspark, a group of mechanical
engineers and investors, acquired 100
per cent of Salford Farm Machinery. The
new owners were already connected to
farm equipment dealers in Russia.
Our group was interested in Salford
because we could easily bring the line to
Russia and develop that market, says
president of Salford Machinery, Mikhail
Rodionov. Originally from Siberia, Rodionov
immigrated to Canada in 1998 and
joined Nuspark.
The first year Salford starting shipping
overseas, they doubled sales. The next
year, sales doubled again. By 2007, sales
to Russia and Kazakhstan had climbed so
much that Salford built a distribution and
assembly plant to keep up with demand.
Within a few years of Nuspark buying
Salford, gross sales in Russia blossomed
up to $17 million a year, about 30 per
cent of their business.
Demand by Russian farmers spurred
Salford to develop a no-till drill. Today,
we have hundreds of Salford air seeders
in Russia, says Rodionov. At the peak of
Russian demand, Salford shipped 300 to
400 units in a year.
