Volga Baikal AGRO NEWS Update on the Agricultural Machinery in RUSSIA !!!

The reasons for the growth of demand for agricultural machinery in Russia

Volga Baikal AGRO NEWS Update on the Agricultural Machinery in RUSSIA !!!

The reasons for the growth of demand for agricultural machinery in Russia !!!

The agricultural machinery market in Russia is growing at an accelerating pace. To a greater extent, there is growth in the combine harvester segment. According to the results of nine months, the market of foreign harvesters grew by 59%, while the entire market – by 33%. Why combine harvesters? Of course, the driving force of demand is the obsolescence of the fleet. Plus, today new technologies in combines related to precision farming, automatic tuning systems, etc., allow replacing three or four old combines with one new one. At the same time, the costs of service and spare parts are significantly lower than for the old combine harvester, so many customers, having financial resources, naturally came to the decision to upgrade the fleet.

The third reason is the general trend of increasing the fleet of combines. There is a shortage of this equipment on the market, and many customers are forced to involve third parties, the so-called MTS, in order to harvest grain on their own territories. Having financial resources, they decided to invest in their own park. Because during the seasonal field work, during the harvesting period, there is often a situation when the client does not have the opportunity to attract external resources — they are unavailable because they are busy in some other fields.

The tractor segment is also growing significantly: sales increased by about 50%. The undisputed leader in terms of demand dynamics is the tractor segment in the range of 200-250 horsepower. This is primarily due to the versatility of these tractors, since they are used both in livestock farms and in crop production and are popular not only with large agricultural holdings, but also in small farms. In this segment, we saw explosive demand in 2021.

But still, there is a certain deficit in some segments in this market.
Agricultural machinery has always started to be bought in the fall and until 2019 inclusive, the seasonality factor was more pronounced. But already at the end of 2020 there was a dynamic shift in seasonal demand, in 2021 the seasonal factor smoothed out even more significantly.

Source: Agrovesti.net

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