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Farms give food to grow
RISING FOOD prices have led two Tees companies to target what they predict will be a booming agricultural sector as they grow their businesses.
Claytons of Carlton has clinched deals with two agricultural machinery and equipment manufacturers as it looks to double turnover to £15m within three years.
The company has become the main Merlo construction sector distributor in the North-east and yesterday struck a deal to sell ATVs - four-wheel drive vehicles that handle rough terrain - on behalf of Yamaha. The combined value of the deals could be worth up to £1m over the next 12 months.
Dealer principal of the firm, Nick Riley, said the “buoyant” agricultural sector would offer new opportunities.
He said: “Rising commodity prices have instilled confidence in the market.”
But he said the firm was also looking at golf course operators and was putting together a programme for the equestrian sector.
Meanwhile, Guisborough-based Cleveland Land Services (CLS) is branching into agriculture to boost revenues in its equipment hire division, C.L.S. Selfdrive, which was established in October. Managing direct John Miller believes the sector will help increase the division’s share of the company’s £7m turnover from 7-10% to 15-20% in the next year.
He said: “Previously we had concentrated on the industrial sector but there’s been a turnaround in agriculture. More farmers are wanting to hire for a fixed price rather than buy a vehicle and watch it depreciate.”
Born out of CLS, C.L.S. Selfdrive provides tractors, forktrucks and trailers mainly to petrochemical plants on Teesside.
