In Brazil, 70 percent of cultivated foods consumed in homes come from family farms. Recognizing the importance of small parts in a big business, Budny Indùstria & Comércio Ltda. provides traditional agriculturalists with the tools and innovation they need. Reuben Ford reports.
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In its determined drive toward growth, Brazilian agriculture shifted focus to industrial farming facilities and mass produced commodities, forcing small to mid-sized producers into the backseat. Turning its attention toward these farms, Budny has becomes one of the country’s top suppliers of agricultural equipment in the sector and a reference in the market.
Budny Tratores & Implementos (Tractors & Tools) produces farm machinery for the treatment of soil, crops, livestock and grains as well as cast components and tractors. The company has built an enviable infrastructure model dedicated to the development of farming through integrated logistics and investment in constant innovation. “Our aim is to be a reliable partner offering solutions that achieve good results through quality machinery and equipment, which are easy to use and meet international standards,” says Carlos Budny, President and founder.
New products including patented technology are already scheduled for launch in 2014 and 2015.
Arising from Tradition
The company website states: “Budny draws on past experiences to live the present and plan the future.” As the son of agriculturalists, Carlos Budny sought from the outset to facilitate and add value to family farming and processes. His principle was simple: to produce tools and equipment that would increase production and efficiency.
Founded in 1990, Budny Indústria & Comércio Ltda. Is headquartered in the southern state of Santa Catarina, in Içara. Today, the company has six branches in two other states in the south, Paraná and Rio Grande do Sul.
Budny is present in all rural industry in the south of the country, an important region for small and mid-sized farms. “We make state-of-the-art technology available to these producers – they have always been our focus. Our products develop their methods and processes,” Budny explains.
In 2006, the company began manufacturing tractors. The move was a consolidation of experience in producing agricultural machinery and implements and aimed to increase the diversity of Budny’s product portfolio as well as the farmers’ potential. 2012 saw the inauguration of a new tractor factory at the plant in Santa Catarina. “Our infrastructure model is an example in theindustry, we produce a range of tractors specially designed for small and mid-size farms,” Budny says.
The Içara facility covers 22,000 square meters and also houses the company foundry, metal works and electrical and mechanical engineering workshops. “The company is completely vertically integrated in the south – even the sales and technical assistance operated through the branches are carried out by us directly,” Budny continues. Production logistics and nationwide sales are ensured through the company’s own fleet of delivery vehicles.
In total, there are 70 sales outlets throughout Brazil. Budny’s successful relationship with the market has been encouraged by the demand for technology by the industry sector. When the company began manufacturing tractors it confirmed its role as a partner to traditional farming businesses – acting as a ‘one-stop shop’ for the technological mix required for effective production.
The Budny brand guarantees the quality of the equipment. “Our clients know that they can rely on us, not only at the point of sale, but also for operational training and technical assistance,” Budny adds.
Products and Patents
Budny produces farming equipment for cutting, fertilizer distribution, soil preparation, grain processing, crop spraying and transportation. In the dairy and poultry divisions, the company manufactures milking machinery and control technology for henhouses. The onsite foundry is responsible for forges, machinery components for manufacture and replacement.
Despite a history in implement production, it is the tractor line that has most recently won acclaim for the company. The products’ dimensions and functionality are specifically designed for small producers and have conquered a niche in the market. “Budny tractors have their own identity and characteristics. There is nothing similar available in the market and we have had a staggering reaction. The tractor was not our main product – arguably, today it is,” Budny reveals.
The company launched a new product recently that also grabbed the attention of the market. A reduced-size motor grader was designed to facilitate road access to rural properties. Budny explains in more detail: “Access to remote family farms is often restrictive and creates problems for producers. Our motor grader, adapted from a piece of construction equipment, prepares the roads for delivery trucks. The equipment reinforces our relationship with our clients’ performance and quality of life and was a success with local authorities.”
The compact motor grader is unlike any other built in Brazil or Budny partner countries and uses technology patented by the company.
Investment in dedication to the development of farming for the small and mid-size producers takes Budny beyond two factories, six branches, 70 sales points and the 600 staff. The Company President announces plans to open a new tractor factory in Rondônia, a region currently lacking in technology for small farmers.
The factory is part of new investments in expansion and agricultural development. Virtual total vertical integration provides a platform for fast production and assembly (Budny buys very few parts from overseas suppliers).
“We started exports recently: Budny manufactures tractors for most Mercosul (South American common market) countries, and is in negotiations with Angola, for exports to start in the second semester of 2014,” Budny also confirms.
Company growth is strong: in 2013 revenue increased by 50 percent and projections for 2014 are in the region of 40 percent. “Our strategic plan until 2020 is to maintain growth of this proportion,” Budny says. He attributes growth to constant innovation and the dynamic company culture.
Budny explains the company’s three-fold strategy for innovation: “Our approach to the market is founded on the relationship between three areas; engineering, information from the field (clients and research) and cooperation with regional research institutes and universities.”
In terms of innovation and aggressive attitude to growth, it certainly seems that Budny is unequalled in the industry. However, the figures speak for themselves. Despite lacking the size and structure of multinational giants, Budny is among the five largest producers of farm machinery for small to mid-sized agriculturalists. It was also ranked in eighth position among tractor manufacturers – although Budny affirms that efforts are being made to move into fifth position in 2015.
A new narrower tractor will be launched at the 2014 Agrishow in Ribeirão Preto, São Paulo, and in 2015 Budny plans to present a new harvester especially designed for small farms. “We see no end to the innovation in our area – we want to make technology available to everyone,” Budny says.
Budny is a leader in the example it sets to the farming industry. The only company to have a complete mix of machinery available to small and mid-sized producers, it strives to provide better conditions, resources and production methods.
“Our products don’t only improve processes, but the quality of life of producers. We have consolidated our brand and relationships by proving we believe that every little counts,” Budny concludes.