Exporting Forage: Barr-Ag Is In Its “Hay Day”

For AGCO customer Barry Schmitt, the disastrous 2011 earthquake and tsunami in Japan hit close to his Olds, Alberta-based business. “We were shipping hay to one of our customers in Japan when the tsunami hit,” says the owner of Barr-Ag, a hay producer and export company.

According to Schmitt, he and his staff had been in communication with the customer like normal, then, suddenly, nothing. As news of the catastrophe and its scope began to break—some 16,000 people were killed and it caused a nuclear reactor meltdown—Schmitt feared the worst. “These are friends of ours who we go and see, and talk to. We were worried.”

Eventually, Schmitt says, “We talked to one of the managers. He had been awake for 40-some hours straight during this whole tsunami and earthquake, and because his was one of the bigger dairies in the area, [the company] had its own generator. So, they were bringing in all the neighbors’ cows to milk them.”

Relieved to have heard from his customers and friends, Schmitt, however, remained concerned. So soon after the 9.0- magnitude earthquake and tsunami, he understood that the condition of these dairies and their cows would be a low priority during Japan’s recovery. Yet, Schmitt saw how he could help, even in what he calls “a small way.

“I called some of my local farmers,” says Schmitt, “and some of them donated hay, and some of them donated cash. The importer paid for the freight. We were able to get it over there and distribute it to the farmers.”

For Schmitt, who works with many customers some 5,000 miles away, the distances he exports his goods can, ironically, make the world seem a little smaller. Since he started Barr-Ag in 2004, the company has shipped to customers in the Middle East, Europe and the U.S., but it has focused mainly on an Asian customer base, the predominant clientele being horse owners, dairies and beef operations in Japan, Korea, Taiwan and China.

Freight costs required to reach distant markets necessitate high-quality forages, and it’s that quality that Schmitt says earned Barr-Ag a reputation for dependability and, in turn, fueled its growth—the company has increased production by almost 10-fold in 11 years.

Helping get more hay out of the field and ensure its quality has been Schmitt’s AGCO tractors, windrowers and balers, as well as his dealer Hanlon Ag Centre. He’s also developed a proprietary “hay cloud” software that can track hay, down to the individual bale, and match it with customer requirements.

“Growing a business,” says Schmitt, “takes a lot of different factors. You’re going to have to have the right people, and we have many, many terrific employees, and you’ve got to have the right product that people want.”

For more, see http://www.myfarmlife.com/features/exporting-forage-barr-ag-is-in-its-hay-day/.