Focus on efficiency and sustainability

2024 has been a transformative year for Bala Agri – with challenges that have required rapid adaptation and solutions that have paved the way for new opportunities. With a continued focus on sustainability and efficiency, Bala Agri has worked to think both broadly and innovatively.

"Challenging and fast-paced" are probably the best words to describe the year, says Kristian Jonsson, CEO of Bala Agri.

Responding to market needs

During the year, it has become clear that customers are increasingly demanding products that deliver both high efficiency and the right balance between price and performance.

"We can clearly see that wood processing machines continue to sell well, but customers are looking for more than just capacity. They want solutions that offer value for money and are easy to use. At the same time, we are seeing a trend where machine prices are rising due to the global situation, while farmers' incomes are always lagging behind. We are currently in the middle of that cycle, explains Kristian.

In addition to agriculture, Bala Agri has made its mark in entirely new segments. Specially adapted trailers for industrial customers and municipalities have taken on a greater role in the company's projects, and Kristian highlights an order from a municipality in northern Sweden as a particular example.

– We developed three new dump trucks from scratch. We were able to deliver three new types of dump trucks in the smaller segment, from a blank sheet of paper to the finished product. New flatbeds to meet customer requirements for volume in relation to load weight. These trucks are approved to travel at 50 km/h with all that that entails. With specially adapted flatbeds for volume and load weight, a completely new emergency braking system for hydraulic brakes, and a design that combines technology and aesthetics, we have delivered something that truly meets their needs.

Sustainability and efficiency – a common thread

Sustainability has remained a focus for Bala Agri in 2024. By using high-strength steel such as Hardox and Strenx, we have been able to develop products that weigh less and last longer.

"One example is our new 3-axle beam trailer, which offers market-leading performance in terms of both load weight and dead weight. This not only means that farmers can transport more tons per trip, but also that they reduce wear and tear on both the tractor and the ground. For us, sustainability is about delivering long-term value," says Kristian.

Sustainability efforts have also yielded results internally. In addition to using the best welding shielding gas for our welders in terms of occupational health and safety, rather than the cheapest, we conserve energy in the form of district heating and electricity. 

– This year, we have been able to reduce consumption by 10% compared to 2023. In 2022, we made a big leap forward with over 25% lower consumption. Investments in heat pumps, smart control systems, LED lighting throughout, and optimised energy consumption also have a major impact on the community, as we are a relatively large energy consumer in our small community of Nossebro.

Listening to customers has always been a crucial part of Bala Agri's product development. During the year, several improvements and new solutions have been developed based on feedback.

– Stress during animal loading, for example, has led to new locks on the rear doors of our animal trailers. Our customers have also requested simpler accessories to avoid having to lift catch gates on and off during capture. We have also worked hard on various braking systems to solve the problems associated with regulations in different markets and new technology on tractors.

Challenges and future prospects

The year has also had its challenges. One of the most significant has been dealing with uncertainty in production planning, where large variations in demand between different product groups have required flexibility.

We work with forecasts that extend 6-12 months ahead, and with the year behind us, our retailers have been very focused on reducing inventory levels, which has made it significantly more difficult to make long-term forecasts. Large fluctuations in production volumes across our broad product range have also been a challenge. Some products have increased more than we expected, while others have declined more than expected.

Looking ahead, Kristian sees great opportunities, especially in export markets.

We have a large market share in animal trailers, bale trailers, dump trailers, and wood processing machines, and we believe that export initiatives will be important for us and our customers here in Sweden. Increased volume provides even more scope for product development, which will benefit the Swedish market. Increased volumes also result in even more affordable products for all customers. We are constantly improving and launching new products, and we plan to step this up even further in the coming years.

Kristian also wants to highlight his pride in the company's success in maintaining its Swedish production, despite competition from low-cost foreign manufacturers.

– Being able to maintain production in Sweden on our scale, in the face of competition where much is manufactured in China, is something that makes us stand a little taller! We are a highly committed team that tries to work as smartly and efficiently as possible to maintain this. We have a whole bunch of very inventive people and we are not afraid to tackle new things!

Finally, Kristian hints at what lies ahead in 2025.

– I believe that the market will recover for certain product groups, while volumes for others will likely remain stable. However, in true Bala spirit, you can expect a number of new products and refinements to our website that will make it easier to find the right product faster. The goal is to simplify the work for our customers and retailers and (perhaps) be the first in our industry to offer an AI service on our website – stay tuned!