Combine harvesters lowered headers – Kommersant

Sales of domestic agricultural machinery in the first quarter fell by almost 8% in monetary terms. Demand in volume terms fell by a quarter. There is an investment pause on the market amid falling incomes of farmers, Rosspetsmash and the association of equipment dealers ASHOD state. Analysts and the industry expect the decline in sales to continue if the state does not reduce the export duty on grain or increase state support.

As Kommersant was told at Rosspetsmash, in January-March, sales of domestic agricultural machinery decreased by 7.7%, to 51.8 billion rubles, year on year. Production also shows negative dynamics – it fell by 4.7%, to 64.7 billion rubles. At the same time, agricultural machine builders managed to increase exports by 3.9%, to 5.3 billion rubles.

In quantitative terms, in the first quarter, the output of most volume-forming segments was reduced, with the exception of agricultural tractors, the production of which increased by 12.8%, to 1.7 thousand units. Also in the black is the segment of self-propelled forage harvesters – by 29.6% (92 units). At the same time, the output of combine harvesters fell by 45.7%, to 1,000 units, harrows — by 35.8%, to 1,400, seeders — by 25.7%, to almost 1,500.

In terms of shipments to the domestic market, the situation is worse: for example, sales of all types of equipment decreased, except for a small segment of machines for fertilizing (sales growth by 20.5%, to 288 units). In the domestic market, sales of tractors also fell – by 7.7%, to 1.1 thousand units.

The pace of shipments and production of agricultural machinery primarily depends on the incomes that farmers have, as stated in Rosspetsmash. “Prices for grain in the domestic market of Russia are currently at a fairly low level. In this regard, agricultural producers are reducing investments in the renewal of the fleet of machinery and equipment,” they explain.

Alexander Altynov, Chairman of the Board of the Association of Dealers of Agricultural Machinery ASHOD, also calls the situation on the market “difficult”: “Demand for machinery decreased by an average of 25%, but the estimate varies greatly depending on the region.” “Agrarians don’t have free money, therefore, as we expected in the fall of 2022, there will be an investment pause on the market,” he continues. field equipment.

Mr. Altynov explains that the sowing season for the equipment market has basically ended, and now the demand can only be for spraying equipment, and then it’s already “a matter of harvesting and the end of the season.” He adds that from time to time some agricultural products become more expensive, the economy of the industry becomes better, but this does not change the general situation: “There is no light yet.”

Dmitry Babansky from SBS Consulting notes that the agricultural equipment market is an indicator of how farmers are feeling, “and they have quite a few problems this year,” including rising prices for consumables and difficulties in purchasing seeds. Rising prices for agricultural products, in particular grain, could smooth the situation, but as long as the export duty is in place, this is unlikely, he adds.

“So far, the trend is clearly visible that there will be a fall in the harvest and income of farmers, which leads to a decrease in demand for agricultural equipment,” the analyst clarifies. According to Mr. Babansky, the main factor for improving the situation in the current conditions is an increase in state support for the agro-industrial complex as a whole.

The Rosspetsmash association indicates that state support for the sector in 2023, on the contrary, decreased: for example, the budget of Program 1432, which provides a discount on equipment for farmers, amounted to 2 billion rubles. against 8 billion rubles. a year earlier, and it does not apply to self-propelled agricultural machinery (tractors, combines, etc.). Rosspetsmash, as Kommersant wrote on March 27, has already called on the government to increase the amount of subsidies for its supplies and cancel the export duty on grain for five years.

Olga Nikitina