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Used Equipment Exports Booming
Business is booming for sales of used farm equipment to eastern Europe, says Peter Chykaliuk, Cajo, Inc.
"We buy from large machinery dealers in Illinois, Iowa and Michigan," he says. "It's pretty much equipment that's not in demand any more. But the business is good for U.S. farmers. One dealer told me he can o
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Used Equipment Exports Booming 31-4-6 Business is booming for sales of used farm equipment to eastern Europe, says Peter Chykaliuk, Cajo, Inc.
"We buy from large machinery dealers in Illinois, Iowa and Michigan," he says. "It's pretty much equipment that's not in demand any more. But the business is good for U.S. farmers. One dealer told me he can offer $1,000 to $2,000 more in trade-in value to his customers because of the export market."
Chykaliuk maintains a refurbishing plant in the Ukraine where he sends the used equipment. There the Deere planters, Great Plains drills and other equipment is stripped, repaired and rebuilt.
"We deal with several lines and market largely in the Ukraine and Russia," he says. "We totally recondition the pieces so we can give them a 100 percent guarantee. We've taken really horrific pieces of equipment and made them nice."
Export sales have turned into a good business for Chykaliuk, who started with it in the 1980's. He warns that it's not something to just jump into and there are major pitfalls like parts availability in the receiving country.
Just breaking down equipment for the most efficient loading of a shipping container is important. Equally important is establishing credit lines with customers. Unfortunately, Chykaliuk says some exporters have taken advantage of overseas customers.
"There's a lot of junk sent overseas and buyers in those countries don't necessarily know what to check for," he says. "A lot of my customers have been sold a planter or sprayer from the United States and end up asking me to refurbish it because it's inoperable."
Chykaliuk isn't interested in buying equipment from the market at large. Like a farmer, he has equipment dealers he has developed trusting relationships with and those are his preferred suppliers.
Contact: FARM SHOW Followup, Peter B. Chykaliuk, Ph. D., Cajo, Inc., 20 Wildwood Lane, Scarborough, Maine 04074 (ph 207 883-5379; fax 207 883-2465; cell 207 838-5375; cajousa@aol.com).
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