Most international companies base their local businesses in capital cities but Lely Australia Pty Ltd is an exception to the rule. Its headquarters is at Rochester, in the heart of farming country about 150km north of Melbourne, Australia's second biggest city and capital of the State of Victoria.
Rochester is in the Goulburn Valley, a rich irrigated dairying and fruit growing region using water collected in nearby mountains and delivered by gravity using the Goulburn, Murray and Campaspe Rivers as the primary distribution channels. The town is also close to extensive grazing and cropping country north and west. Just to cap things off, Lely Australia's Managing Director, Mr Tony McCurry, was originally from a pioneering family from this area.
Given Lely Australia's focus on the dairying industry, the Rochester location is perfect. The dairy industry is Australia's largest exporter of manufactured food products and the country's third largest total agricultural exporter.
Against this background some 65% of Australia's milk production comes from Victoria and about 25% from the Goulburn Valley alone! Lely Australia is therefore right in the middle of a very large, important and relevant industry. It also puts the company very close to many of its customers - keeping it right in touch with their needs and expectations.
After Lely's successful beginnings in Europe, it sought expansion into the U.S.A. and Australia. Lely UK initiated the Australian operations by appointing Tony McCurry as a Representative based in Melbourne with just one product - the Lely Roterra. That was in 1974 some 28 years ago. The business grew, and Tony suggested that the company take a more -hands on- approach by basing itself in a dairy area to get in closer touch with the farmers' needs.
The Rochester base is a logical decision as it gives Lely Australia more of a rural feel. Furthermore, most of Lely Australia's employees are from local farms - which give the company a greater ability to understand what the customers are talking about and need.
Lely has 110 franchise dealerships throughout Australia, plus Western District Agricentre. Western District Agricentre is a company-owned retail store in Warrnambool, on Victoria's South West coast. The Warrnambool Dealership is the future technical base for the Astronaut Robotic Milking System in the Western District - the second of Victoria's three major dairying areas. Rochester is the administration, sales and parts base.
A large part of Lely Australia's success is the diverse range of quality equipment it distributes. Lely Australia is the National distributors for Lely Dairying and fodder conservation equipment, including Welger Balers, Splendimo Mowers, Hibiscus and Lotus Rakes and Tedders plus machinery from associated companies including McHale of Ireland (silage bale wrappers and bale handling), Schuitemaker from Holland (loader and feedout wagons), Vermeer from America (balers, rakes and mowers), Tulip of Holland (the former Lely arable range) and Sgariboldi from Italy (diet feed mixer wagons).
Lely has launched the Astronaut Robotic Milking System in Australia with four installations already up and running and interest growing steadily. It now also offers the Lely CALM automated calf feeders that are likewise gaining rapid acceptance.
It has been a gradual evolution in this direction and Lely is now the market leader in robotic milking systems. The concept was trialed in Holland and was well received. Lely is very much seen as an innovator of new ideas and Lely Australia is still looking for new opportunities.
Perhaps the biggest reason Lely has been so successful in Australia is its -hands-on- approach. It is highly responsive to farmers' needs. The company also demonstrates equipment at field days throughout Australia and regularly stages public demonstration days in conjunction with the local dealers to view Lely products in operation. While Europe and Australia are two very different markets, ideas are generally trialed first in Europe to gauge general market reaction before being introduced to Australia.