Focus on the FTMTA with president Donal Fitzpatrick

The Farm Tractor and Machinery Trade Association (FTMTA) is the representative body of the farm machinery industry in Ireland. It has about 200 member businesses engaged in the manufacture, importation, distribution, retail sale and servicing of farm machinery.

The industry employs about 3,500 people and generates an annual domestic turnover in excess of €500m, as well as substantial export earnings. Many FTMTA members are based in rural areas where they provide a significant level of employment. Associaton president Donal Fitzpatrick has served on the executive council since 1980. The council is made up of 17 members elected to represent and manage the association.

The president

Donal is well known in the trade, as is his father Joe. JH Fitzpatrick has been associated with the Case IH brand in Monasterevin for over 40 years, and the business itself has been going strong for over 60 years.

The company was founded by Joe in 1954, and started with Amazone and Krone franchises, along with some imported tractors that were popular during the 1960s such as Ford and Massey Ferguson. Donal describes his father as an out-and-out farmer who is a mechanic and started a service station. Donal himself joined in 1980 and is now managing director of the whole business.

Monasterevin Motors was formed, separating the car and tractor business, although Donal says there is a significant crossover between the industries. Over the years he has seen the dealer management policies of the motor industry also being adopted by the tractor manufacturers. Donal views this as a good and a bad thing. From a professional point of view it is an excellent idea to have dealers with good premises and forecourts to display machinery. However, paying for this development is another issue, with the machinery being a low-margin, high-input business model.

Carrying secondhand stock is tough on cashflow, and in recent times there has been a push from the manufacturers to subsidise finance on new machines. This has made new machinery more affordable, with flexible terms for the farmer. From a dealer perspective, it’s great to sell new machines. Yet the trade-in is where the money is tied up.

Donal views farmer development as an excellent opportunity. The FTMTA is delighted to support farmers in enhancing their business by providing them with a strong dealer back-up , he says. Farmgate prices are critical and a strong farming sector is in everyone’s best interest, according to Donal.

He was elected president of the FTMTA nearly two years ago, and is now in the last three months of his tenure at the head of the 100-year-old association. Presiding over two years of a changing and challenging time in the industry, Donal has strong views and is passionate about the FTMTA delivering for dealers. He has worked tirelessly with the CEO Gary Ryan to pursue challenging issues.

The FTMTA president views the introduction of the new BSc in agricultural mechanisation last year as a huge leap forward for the Irish machinery industry. Donal says: “Anyone who is interested in farm machinery will know the pace of development over the last 10 years has been phenomenal. The technology in tractors, combines, and all facets of equipment has surpassed the pace of the motoring industry in some regards. Many manufacturers now claim some of the electrical components used in the agricultural machinery sector today is on par with those being used in modern airplanes.

“A contractor or farmer who invests thousands in modern hi-tech machinery has a valuable asset that needs to work effectively, and needs a professional competent support team behind him at the dealer’s yard.”

The graduates from this course are destined to provide this hi-tech service and backup in the future. Donal is confident that educating and developing people in the industry will form the cornerstone for development.

The FTMTA is also acutely aware of how the fundamentals of business are changing. The route to market is now a lot shorter. The logistics network is now capable of having most parts delivered within 24 hours for the customer. Staff with excellent IT and communications skills are essential to keep the cogs moving. Planning is now critical – knowing the parts to have on the shelf for the customers in a breakdown situation, and delivering quickly on parts that have to be ordered in.

The investment by the farmer to buy a machine is substantial and the dealer also invests to keep customer service at a high level. Donal looks at the relationship of the end user and the dealer as a critical factor. Neither business is easy to get into; the cash investment is high for both. In essence, they have to survive together. Succession planning is another issue for dealers that Donal has addressed across the sector. Continuity is vital from a manufacturer’s perspective, and customers want to know that they will get the service in five or 10 years time. The FTMTA is constantly working on this issue with members.

Donal believes the FTMTA has to be the voice of the industry. The association has machinery industry professionals on council that form a strong management team to deliver for all members. During his time, Donal has advocated the need for strong communication across all levels of the FTMTA. The development of the people within the industry is another area that Donal is passionate about. FTMTA has a good working relationship with most of main players in the asset finance sector and also with many relevant Government bodies.

The association has lobbied hard for issues relating to the Sustainable Use Directive and sprayer regulations, the emission regulations for Stage III engines, and VAT and VRT registration issues. In all situations the association strives to deliver the best result possible for its members and the wider industry.