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Pel-Tuote is targeting to expand to Algerian agribusiness


07.12.

Agrotechnology from Finland growth program is helping a number of SME companies in their export efforts. Pel-Tuote is taking promising steps in Algeria, which traditionally has been the world's biggest grain importer.

Pel-Tuote is located in the middle of Finnish countryside, surrounded by crop growing fields and owned by two brothers, both farmers. The company started out some 30 years ago to supplement family farm livelihood. Pel-Tuote is proficient example of a growth company. Over the past four years the company has succeeded in increasing its turnover by 60 % and hiring number of new employees. Companys’ products are exported to some 40 countries and share of export is about half from the turnover. Main export product is a field rock picker, which decreases expensive damage on high-priced field equipment.

 

Delegation visit saved time and effort for Pel-Tuote

Pel-Tuote decided to join the recent Team Finland business delegation visit to Algeria to find out about local business opportunities. The company has experience in exports and knows the value of specialists needed in the target market. Finding the right partner is where the growth program has a role to play.

“Our company received high interest in the ministries. Those contacts made it possible for us to start negotiations for a joint-venture”, reports Jens Köllner, Export Director at Pel-Tuote. “It turned out that we were saving time and effort by utilizing Finpro and Team Finland networks. For example, Finpro organized a number of meetings with potential partners which were on my wish-list, as well as Finnish Embassy in Algeria were screening potential lawyers that we would eventually need in the new markets. This is so far the best delegation visit the state of Finland has arranged”, states Köllner.

“The delegation visit worked as a door opener, which is an important activity needed in challenging business environments like Algeria. Our company does also product tailoring, in which local partners are in key position “, remarks Mikko Lappalainen, CEO of Pel-Tuote. “We see big potential in Africa”, concludes Lappalainen.

 

Shippings planned to Algeria for field tests

Normally preparations can take at least one year before a joint-venture could begin. To get started Pel-Tuote is planning to prepare field tests by shipping couple of demo equipment to Algeria. The company is trusting the performance of its equipment and expecting to lower potential purchasing barriers.

 

Agriculture is a key priority for Algerian government

Yet Algerian agricultural supply covers less than half of the domestic demand, creating considerable development potential. One of the ways to increase agricultural productivity is to mechanize country’s agriculture, calling for agricultural machines and devices.

”Regarding Algeria and in particular the African continent, they are leading in the world’s population growth. By year 2050 the continent’s population growth is expected to be 2,5 fold and reach 2 billion”, describes Elina Puszkarzewicz, Program Director, Finpro. “Food production in these countries creates promising opportunities for Finnish farming industry. Localization of the machinery to respond the market specification is essential” concludes Puszkarzewicz.

 

For the moment the most remarkable Finnish investment in Algeria is the combine harvester factory by Sampo-Rosenlew. The factory has become a prominent reference for Finnish businesses in Algeria, which is emphasizing the role of the industrial investments to reformulate its economic landscape.

During the business delegation visit a Memorandum of Understanding (MoU) on plant health was signed to facilitate the export of Finnish grain products to Algeria.

The business delegation to Algeria was led by Kimmo Tiilikainen, Minister of Agriculture and the Environment during 20-21 November, 2016. Finpro’s delegation team, led by Maria Westerholm accommodates the varying needs of Finnish companies before, during and after the Team Finland delegation visit.

 

Picture: Abdeslam Chelghoum, Minister of Agriculture and Kimmo Tiilikainen, Minister of Agriculture and the Environment strengthening relationships between Algeria and Finland in November 2016.

 

Additional information:

Elina Puszkarzewicz, Program Director, Finpro, Mobile: +358 40 343 3349, elina.puszkarzewicz@finpro.fi

www.agrotechnology.fi, www.pel-tuote.fi


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