Sharp increase of agricultural machinery production is observed in 2016. According to the data provided by Russian union of agricultural machinery producers (“Rosagromash”), from January to October 2016 alone the number of 4-W drive tractors produced locally increased by 70% compared to the same period previous year (reached up to 1775 pc), the number of combine harvesters ramped up by 32% (up to 3995 pc), forage harvesters – by 40% (up to 600 pc) and drill machines – by 116% (up to 3081 pc).
All in all agricultural machinery sector growth reached the record of 58%, says Konstantin Babkin, the director of “Rosagromash”.
“If we remain in an upward trend, this year we will be able to produce agricultural machinery for amount of 80 to87 billion rubles”, thinks the expert.
Machinery is produced by 73 plants in 63 territorial entities of the country this year. Twofold time difference, reimbursement for home-made machinery procurement as well as the state support have become key competitive advantages. Thus, the state spent almost 10 billion rubles to compensate discounts provided by machinery producers this year.
In 2017 two new harvesters, three tractors and over 150 other models of agricultural equipment will appear on the local market. The list of the most popular models this year includes trailed machines, drilling machinery, specialized equipment for breeding, vegetable farming and gardening as well as brand-new tractors in the vacant niche of 100 to 270 hp.
Russian-made machinery have price advantage both on the local and international markets.
“Only three years ago the market share of the home-made machinery was about 25%. Today we occupy around 55%, which means that the market share of Russian producers considerably increased,” says Mr. Babkin.”Export is also ramping up, even though its growth rate is slower. This year the it increased by 10%”. GG More important is that export to Western European countries has increased by 25%. We also sell our machinery to Germany and the US”.
At the same time working conditions are different. Thus, there are 85 tractors and 12 harvesters per 1000 ha in EU and 4 tractors and 3 harvesters per 1000 ha in Russia respectively. This actually means different levels of working load: one tractor is used to process 38 ha of land abroad, and 6.5 times as much land in Russia. Combine harvester is used to crop 63 ha in other countries, and 350 ha in Russia. These figures define both market capacity and vehicle fleet upgrade potential. Which means Russian-made new-brand machinery will have to pass serious functional tests.
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