ONTARIO MACHINERY RING(B)

TEAM MEMBERS: AASHISH JETHANI 2010004 ABHISHEK TOMAR - 2010012 ANKIT BHASIN 2010034 ANMOL AGARWAL 2010040 ANSHIKA GUPTA 2010259 ABHISHEK KEJRIWAL - 2010274

ONTARIO MACHINERY RING AN OVERVIEW

y It was a non-profit member owned co-operative y Was established to provide matchmaking service between

farmers who wanted custom work done and farmers who wanted to do this type of work.

THE MACHINERY RING CONCEPT

y Popular in Europe y About 80% of farmers using matchmaking services

extensively
y General Manager Jack Jazen wanted to expand the concept to

the entire province , not just to the Huron country.

Meaning of Custom Work

y Mainly used in crop production y Consisted of activities like Cultivating, Seeding, Hay Baling, and

Plowing.
y Some farmers had the time and equipment to be offered to other

farmers.
y In other words, because their equipment was capable of doing more

work than available, the farmers who had excess time sold their services to other farmers who needed them
y This in agricultural terms was known as custom work.

Custom Work-Ontario
y According to some estimates Custom work in Ontario was

valued to about $145.

y In the absence of the Machinery ring concept, custom work

that would be offered by farmers would be very informal and out of some friendly gesture.
y Rates in this case was decided using guidelines published by

the Ministry of Agriculture and food.

Problems Custom work

y The person doing the custom work had to establish a

schedule of activities.
y This was a problem because of the importance of timeliness

of the crop.
y If work was delayed by even a week, it could result in low

yield for many crops.

y Also, custom operators would sometimes experience

difficulty in collecting the fees.

Purpose
y The purpose of the Machinery Ring Concept was to Bring

about more order in the custom work market.

y Potential sellers of custom work became members of the

Machinery Ring by registering and paying an annual fee of $50. y The equipment was also inspected accordingly.
y Farmers who wanted custom work done also had to register

at $50.

Methodology
y Potential buyers and sellers of custom work were entered

into a computer database developed specifically for Machinery Ring.

y This database contained a program that could match the

closest seller with a potential buyer.

y This was developed specifically for OMR at a cost of

$300,000.

Methodology
y When a farmer needed custom work he merely called or

phoned the OMR to place an order.

y Then the OMR after checking its database, gave details about

the farmer who had the necessary equipment and time to provide custom work. y The OMR then billed the farmer , collected the fee and provided payment to the selling farmer. y It charged a fee of 2% to both buyer and seller.

Creating Awareness
y As discussed earlier, Jack Jazen wanted to expand to the

entire province.
y He had already planned to create awareness via advertising in

farm publications and managing booths at agriculturral trade shows.

Need for Research

y Janzen needed about $700,000 to implement his project. y Because his company was a non-profit making organisation,

he felt the ministry of Agriculture and food might provide some assistance. y He bagan contacting many market research companies to discuss the situation. y He was particularly impressed by a firm called Agri Studies.

Meeting with Agri Studies

y After meetings with Agri Studies, Jannzen was particularly

interested and also asked Tom Wilson, the general manager of the research firm on as to what method of research would be used.
y Wilson wanted to use TELEPHONIC METHOD of

conducting research.

Telephonic Interview

y High Sample Control y Easier Geographical Coverage y Rapid Information Gathering y Allows Some Personal Contact y Easy Follow Up y Good Response Rate y Easy to Monitor and Control

y High Cost of Execution y Everyone May Not Have a Phone y Some Chance of Interviewer Bias y No Control on the Environment y Can Not Use Visual Aids y Can Have Only Limited Open

Interviews

Ended Questions y Can Not Have Complex Questions