How a collaboration between Kilic Engineering and SEW-EURODRIVE has changed the game for grain handling in Australia
With the Australian wheat farming industry experiencing record harvests, the performance of grain handling equipment has become increasingly important – it can make all the difference to an operation’s productivity levels during harvest. Yet despite bumper crops and promising forecasts, those in the sector have had to contend with other challenges that threaten their livelihood. These challenges include a disrupted supply of equipment componentry, and labour deficiencies, both of which have been compounded by the global pandemic.
This whitepaper discusses those challenges with a particular focus on how smarter, more efficient machinery can assist in meeting production demand. It highlights the unique collaboration between local OEM Kilic Engineering and SEW-EURODRIVE in achieving that goal by bringing bespoke grain handling solutions to the Australian market that address distinctive native conditions and challenges. Additionally, it provides a case study example of how the custom-built BunkerStacker machinery, supported by SEW-EURODRIVE drive technology, has helped agribusiness The Manildra Group achieve success in its vertical integration.
Industry overview
Agriculture’s contribution to the Australian economy – when factoring in all farm production inputs –?accounts for an estimated 12 per cent of the gross domestic product, with the wheat industry alone valued at $8.5 billion[1,2]. Notwithstanding significant challenges that span bushfires, drought, COVID-19 and global trade disruption, the sector has seen substantial growth, especially in cropping. The Australian Bureau of Agricultural and Resources Economics and Sciences (ABARES) attributes the volume growth and improved productivity seen in cropping partly to the adoption of new technologies and management processes[3].
Moreover, the sector has enjoyed back-to-back bumper harvests. The 2020-2021 marketing year reported the second largest wheat crop ever on record[4]. Forecasts predict the 2021-2022 season will fall just 2 per cent shy of that figure but achieve a bounteous 25 per cent more than the five-year average.[5,6].?In fact, the September 2021 ABARES agricultural overview report determines that Australia’s total agricultural production will surpass the $70 billion mark for the first time due to a combination of high commodity prices and optimal seasonal conditions[7].
Threats to productivity?
Regardless of these favourable conditions, labour shortages and border restrictions have threatened agribusinesses’ ability to deliver on the bumper season. While the sector has lacked skilled workers for the past decade, demand for unskilled labour is now considerably elevated adding additional pressure on businesses looking to secure seasonal workers.
The Government announced a new agricultural visa in late 2021 but conceded that overseas workers would unlikely be available for immediately upcoming harvests[7]. ?In some instances, where labour had been obtained from 10 Pacific nations, workers were unable to enter Australia due to differing state quarantine controls and caps[8].
Likewise, disruptions to the global supply chain have proven to be a serious roadblock in the availability of harvesting and commodity handling equipment and parts. Demand has surged in tandem with heightened cropping volumes, but many agribusinesses have gone without much-needed equipment for lengthy periods[9-11].
Safety concerns amplified
In addition to the challenges around labour and equipment supply, a key concern for farming and crop handling businesses is safety. Agriculture ranks as one of the most dangerous industries to work in with a high fatality rate of 14.6 deaths per 100,000 workers. Significantly, there has not been any notable improvement to this figure in the last decade. In line with an ageing demographic, most fatal incidents occur among older workers.[12]
With the agricultural sector struggling to attract a skilled and permanent workforce, issues around safety have come to the fore. According to FarmSafe Australia, 40% of farming businesses report that “what keeps them up at night” is concerns around operating equipment safety13. Specifically, people working in the grain production and handling industry are exposed to a range of mechanical hazards from the machinery used in these applications14.
Engineered to address challenges
Since its inception 45 years ago, Adelaide-based equipment manufacturer Kilic Engineering (KE), has been building bespoke handling solutions that are explicit to Australian conditions and challenges.
“The founder of the company, Tony Kilic, is a mechanical engineer who had a vision to create hard-working machinery that would improve the safety, reliability and productivity of Australian materials handling operations,” explains General Manager Craig Dennis. “That vision has been realised with KE’s expertise in providing solutions that are truly fit for purpose.”
The KE BunkerStacker agricultural equipment range exemplifies the company’s ability to tackle the pain points felt among grain handling operations. Designed for rapid intake, these self-propelled machines speed up the offloading of grain for storage in a user-friendly, safe way.
“A lot of Australia’s grain is exported but the challenge during harvest season is to store this product until it can be shipped overseas. In warmer regions, the grain is usually stored on bunkers, which appear as big piles or stacks on large tarpaulins,” explains Craig. “Like the namesake, the BunkerStacker machines are built to make that process easy and efficient. A key shared feature of this equipment range is the discharge chute which can be manipulated to shoot grain in virtually any direction. This enables customers to build a stack that makes optimal use of that storage capacity.”
The machines have been popular among grain handlers, farmers and truck drivers alike because they are so efficient.
“They’re designed to minimise spillage which we know is a major pain point – the multi-directional chute and large bed ensures they can get the most grain into each stack without the need for sweeping and shovelling up spilled product,” says Susan Collier, who is the KE Operations Manager. “Truck drivers delivering from the farms love the BunkerStackers because they have long, gently sloped ramps and a large target zone for the efficient dumping of grain. Drivers will go the extra mile to offload at a BunkerStacker because the more loads they can do, the bigger their pay packet.”
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While KE’s first BunkerStacker came to market in 1999, the equipment has had multiple upgrades since then.
“It’s important to point out that not only is each machine unique and exclusive to every customer, but every iteration comes from listening to our customers,” Susan elaborates. “We have post-harvest reviews where customers give us feedback on machine performance, and often they provide us with a wish list of features they’d like to see or have upgraded. Depending on how viable these suggestions are, we will incorporate them into the next generation of equipment. We also meet regularly with our stakeholders to discuss new technology or changes to existing technology that what we could adopt to improve the equipment.”
Often the primary objective of updating the technology is to improve the safety of the machinery. For example, the KE BunkerStackers have features such as hydraulic jacks, automated take-up systems, on-board compressors, pendant controls, shade canopies and easy access ramps.
“Our aim is to make these machines user friendly and safe for seasonal workers,” stresses Susan. “The more the machine can do automatically, and with simplistic controls, the less stress that puts on workers who aren’t necessarily trained or experienced in using grain handling equipment.”
Importantly, the BunkerStacker equipment uses reliable, quality componentry such as SEW-EURODRIVE gearmotors.
“Grain handlers prefer our machines because they see the SEW-EURODRIVE drive technology and they recognise that these machines will give them the best chance of being productive for the whole harvest,” says Craig. “Drive motors are critical components in this equipment, and the fact that we use SEW-EURODRIVE drive technology helps when we put out proposals to a prospective customer – it gives them confidence that we’re going to deliver a quality product.”
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A collaboration driven by shared values
A commitment to quality and customer-focussed support are values that KE and SEW-EURODRIVE share. For KE, working with SEW-EURODRIVE gives them peace of mind that the drive technology will perform to its optimum.
“As we’re custom-building these large, complex machines, we try to strategically reduce risk around the critical componentry, and that’s what we’ve done through our partnership with SEW-EURODRIVE,” says Craig. “We can effectively rely on their expertise, safe in the knowledge that when we get the drive to fit, it will deliver the required amount of power and torque. We don’t have to worry, meaning we can focus on other aspects of the machine such as the belts, idlers or mechanical design.”
The collaborative relationship KE have built with SEW-EURODRIVE – which began when the global drive manufacturer opened its facility in Adelaide over 13 years ago – also affords them security when it comes to parts supply. This has proven beneficial to KE’s customers throughout the pandemic disruptions.
“We share a high level of trust and transparency with SEW-EURODRIVE and they’ve been able to advise us regarding stock, including keeping reserves of particular componentry in store for us,” says Craig. “As a result, we’ve been able to maintain production and supply machinery to customers such as CBH and The Manildra Group during COVID-19.”
The fact that SEW-EURODRIVE has approximately $35 million AUD worth of local stock holdings has certainly aided their ability to meet KE’s requests.
“It’s a major point of difference with SEW; we’re very much in a league of our own when it comes to stock holdings and componentry,” explains Robert Justice, who is the State Manager for SEW-EURODRIVE in South Australia. “Because of the modular nature of our units, many of the parts are interchangeable, so together with the company’s heavy investment into spares, we’re able to provide customers such as KE with the security of available stock and short lead times.”
A supportive partner
According to Craig and Susan, the assurance of support they receive from SEW-EURODRIVE is comparable to KE’s approach to customers. ?
“We’re a family company, and our values are aligned with those that a family have – we don’t sell machines to our customers and leave it at that, we provide end-to-end solutions and support that begins with the initial consult and continues well beyond the sale so that we can guarantee the machinery is working how it should,” explains Susan. “SEW-EURODRIVE are similar in this regard. Even though they are a global company and can draw from a breadth of technical expertise and product knowledge, they provide us with a highly personalised, local service. There has never been a time when we haven’t felt supported.”
Robert points out that his company’s attitude towards support is that it should be personal.
“There is a set theme at SEW-EURODRIVE which is that we are never far away from our customers,” he says. “We have centralised manufacturing in Germany but decentralised assembly here in Australia, meaning that the stock is where our customers are, and so is the service and technical expertise.”
The relationship that KE and SEW-EURODRIVE have developed has meant the two companies have developed a type of ‘shorthand’ when it comes to drive requirements.
“A long-term benefit of our collaboration is that we’ve both come to understand and draw from the other’s knowledge, expertise and competencies, which also extends to how we communicate – there is a type of implied or intuited understanding,” Robert enthuses. “That comes from trust, and often we can anticipate their needs successfully.”
From the KE perspective, whilst they value the face-to-face customer service they receive from SEW-EURODRIVE, they also take advantage of the online support.
“We access CAD drawings online and when we figure out what we need with gearbox ratios, torque and power, we will enter that information and share our design with SEW,” explains Craig. “They will then check that information – make changes or recommend alternatives if required – and come back to us with a file which we can put in our software and see exactly how that motor model is going to work.”
For the BunkerStacker equipment, KE use standard SEW-EURODRIVE gearmotors, which have the advantage of a compact and modular design.
“There are thousands of potential mounting shaft and power configurations, with these and they are backed by relatively short lead times and assembled to order locally in Australia,” adds Robert. “They also have ingress protection and meet international standards in terms of being explosion-proof, which can be a hazard in grain handling applications where there is a lot of dust.”??
In Summary
As manufacturers of the fastest self-propelled hopper-fed grain stackers on the Australian market, KE are helping address the pain points felt among grain-handling operations. With SEW-EURODRIVE as their drive technology partner, they are able to ensure high performance, bespoke solutions, that are supported from the first consultation to all after sales services, including maintenance and the security of parts supply.
“We listen, we’re flexible, and we’re nimble, able to draw on our modular designs to solve problems our customers have but deliver them a fully customised solution to suit their specific needs,” summarises Susan. “The same can be said about SEW-EURODRIVE and we’ve come to rely on them as a partner. Their standard is very high, they always deliver on time, and to what we need. We never hesitate to ask them questions or for help with the international side of our business. They are a true partner in every sense of that word.”
From Robert’s point of view, KE is an inspiration.
“They represent that wonderfully entrepreneurial side of Australia, building machines that are uniquely suited to the Australian experience and conditions, but have been noticed abroad because they are state-of-the-art, high performing agricultural solutions,” he concludes. “We’re proud to support and grow their business locally and for export, and to see them achieve success.”
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