Volga Baikal AGRO NEWS Update on the Russian Machinery Exports !!!

Export of the Russian agricultural machinery increased by 2.2 times

Volga Baikal AGRO NEWS Update on the Russian Machinery Exports !!!

Export of the Russian agricultural machinery increased by 2.2 times !!!

In the first quarter, Russian enterprises supplied agricultural equipment to foreign markets for 3.9 billion rubles, which is 2.2 times more than in the same period last year, the Rosspetsmash association reported. For the entire 2020, exports reached a record 15.9 billion rubles. In January-March of this year, domestic machines were supplied to farmers in 23 countries, the main buyers were farmers from the CIS and the European Union, the association specifies. At the same time, in monetary terms, supplies to Lithuania increased 5.4 times, to Germany – five times, to Bulgaria – by 65%, to Kyrgyzstan – by 58%, to Mongolia – by 54%, to Poland – by 49%, cites data from Rosspetsmash.

In quantitative terms, shipments of all-wheel drive tractors increased most of all – by 2.8 times, exports of plows increased by 2.4 times, balers – by 2.2 times, harrows – by 88%, grain harvesters – by 46%. Rosspetsmash expects that the volume of export deliveries of Russian agricultural machinery in the current year will not be lower than the record year 2020, and manufacturers will be able to achieve the indicators of the baseline scenario of the development of the Export Strategy in the agricultural engineering industry for the period up to 2025,” – said a representative of the association to Agroinvestor.

Among the main reasons for the positive dynamics Rosspetsmash mentions high prices for grain on the world market, thanks to which agricultural producers have additional funds to renew their fleet of equipment. In addition, the effect of pent-up demand affected: last year, amid the COVID-19 pandemic and general uncertainty, many companies postponed investments in technology. In addition, now Russian manufacturers do not experience such problems with the supply of components as some foreign players, which is associated with a high share of localization and the fact that domestic plants did not suspend work due to quarantine restrictions, explains Rosspetsmash. Also, the development of exports is positively influenced by state support, which allows factories to invest in the expansion and modernization of production facilities, in the development and production of new models, the association notes.

One of the main problems of the industry is the unprecedented high rise in metal prices: according to a survey conducted by the association, over the year, the prices of metallurgical companies’ products increased by an average of 50-80%, depending on the type. If this problem is not resolved in a timely manner, then it will be difficult for Russian manufacturers of agricultural machinery to maintain the growth rates of export supplies and production in general, according to the report of Rosspetsmash.

Earlier, the association reported that sales of agricultural machinery in the domestic market in the first quarter increased by 53% to 32.5 billion rubles. The production of equipment increased by the same amount during this period. This was influenced by measures of state support for the industry: Decree No. 1432, which allows agricultural producers to purchase agricultural machinery at a discount, as well as preferential leasing and “stable acceptable” prices for agricultural products. Then Rosspetsmash also drew attention to the fact that an increase in metal prices, constantly growing electricity tariffs, as well as an increase in the cost of fuels and lubricants can slow down the growth rates of the industry.

Source: Agroinvestor.ru

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