ORLANDO – Russia wants farming technology from the rest of the world, but it wants the world to build those machines on Russian soil.
Farm equipment manufacturers and government officials weren’t eager to hear that Russia is increasing its import tariffs on farm equipment and has dropped farmers’ tax credits for the purchase of non-Russian built machinery.
Imports of farm equipment dropped drastically from 2008 to 2009 in the January to October time frame.
Combines fell 81.7 percent, tractors 70.1, harrows 57.2, seeding equipment 75.3 and mowers 38.1.
At the same time, Russian exports fell just 6.5 percent for combines, 29.6 for seeders and 9.7 percent for mowers. Tractors fell 49 percent and harrows 67 percent.
Domestic sales of Russian produced machines tumbled as well, with combine sales falling 17.7 percent overall. Russian farmers bought 53.5 percent fewer Russian made tractors, 53.5 fewer tractors, 72 fewer harrows, 60 percent fewer seeders and 17 percent fewer mowers.
“One can hardly blame us for saying, ‘look if you want to sell into the Russian market you need to commit to building in Russia,” said Konstantin Babkin of Rosagromash while attending the international Agrievolution conference in Orlando, Florida, Jan. 10.
“We have a farm machinery market of 1.5 to 2 billion dollars (US). It is down right now due to credit issues and other factors. But is relatively stable with a lot of room for growth,” he said.
Combine sales in Russian in 2008 were worth $1.24 billion US and fell to about $600 million for 2009. In 2010, the government and Rosagromash estimate sales will be about 576 million. For 2008, tractors sales were $1.7 billion US, falling to $355 million in 2009. In 2010, sales could be in the $376 million range.
