Citing “a period of pronounced decline” in its farm machinery business, Quebec farm co-operative La Coop federee plans to get out of parts distribution by next fall.
The co-operative announced May 30 it plans to “gradually” close its Dispro farm equipment and parts distribution centre at Trois-Rivieres over a 12- to 15-month period from September this year through to next fall and lay off its 26 employees.
“The farm machinery market has, over the last few years, entered a period of pronounced decline that causes manufacturers and dealers to amalgamate,” Coop federee CEO Gaetan Desroches said in a release.
“In the light of this new state of affairs, La Coop federee’s role as a distributor is no longer relevant for our member co-operatives who now shoulder their responsibilities independently while selling farm equipment directly to Quebec producers.”
Coop federee’s Trois-Rivieres distribution site opened in 1977, handling farm machinery and parts as well as hardware.
Of the centre’s employees, Desroches said Friday, their “conduct over the last three years following the closing of the hardware distribution centre was of the highest standard” and the company and staff “will work together to minimize the impacts of this decision.”
Coop federee in fiscal 2015-16 booked a 23.6 per cent decline in farm machinery sales, reporting a “significant slowdown in the farm machinery market for most lines of equipment and the loss of distributor status for one of our suppliers.”
Co-op federee noted it won’t be renewing its lease on the building housing the distribution centre, once the operations wind down. The building’s sale was announced in January. –– AGCanada.com Network