ATR11-News-No1- Brochure

Newsletter No. 1 March 2011Dear Reader,With this our 1st edition of the AgroTech Russia 2011 newsletter, we would like to inform you about the present situation on the market for agricultural machinery in Russia and also bring you the latest news from AgroTech Russia.This edition features:? AgroTech Russia 2011?Results of AgroTech Russia 2010 ? Selected results of exhibitor and visitor survey? Exhibitors on AgroTech Russia 2010?What’s new in the agricultural machinery sector??Rise in imports of agricultural machinery from the West ?State subsidies for agricultural leasing?Credit restrictions for Rosselkhozbank lifted?Western Manufacturers build up production plants in Russia?The latest news from the Russian agricultural sector?Favorable loans for the upcoming seed campaign?For your calendar: ? The favourable conditions for participation apply up to 30 April 2011?Application documents and participation conditionsIs there something else you’d like to know? Just get in touch –we’re here to assistSincerely,Your AgroTech Russia Team?ContactNewsletter No 1March 2011 Page 2From 6 to 9 October 2011, the International Exhibition for Agricultural Machinery AgroTech Russia is scheduled to take place at the All-Russian Exhibition Center (VVC). A showcase for solutions for modern-day crop farming, AgroTech Russia presents tractors and equipment for soil cultivation and plant care right through to machinery and equipment for harvesting, storage and primary processing, including such key agricultural inputs as plant protection agents, fertilizer and seeds. Another vital section of the event is dedicated to components, spare parts and fuels. Every year AgroTech Russia welcomes more participants from overseas. Traditionally, Germany, Italy and the Netherlands take part with larger-scale joint stands. And Brazil too is keen to set up a country pavilion. Based on the very positive impression of AgroTech Russia in 2010 gained by the Brazilian Embassy in Russia, the Brazilian Embassy is currently engaged in negotiations with the Russian Agriculture Ministry concerning the organization of a joint stand. Companies from Egypt and South Korea have also expressed an interest in taking part, because they believe the Russian market has great potential for the future, especially in view of the dynamic developments in the agricultural sector which they consider good for their business. Agricultural machinery manufacturers from France are also set to expand their exhibition floor space at AgroTech Russia.AgroTech Russia – the only platform in Russia that brings together farmers, suppliers of agricultural machinery and state representatives – is a firm favourite with Russian and Western companies alike. Regular participants include suppliers of leading brand names in agricultural machinery such as John Deere, CLAAS, Case, AGCO, Krone, New Holland, Grimme; Agromash, Belarus, Gomselmash, Kirovec etc. The volume of products on show is expected to increase in nearly all areas of the exhibition. This optimistic outlook matches the opinions of the exhibitors who are reckoning with stronger purchasing power on the agricultural machinery market in 2011. This upswing is due to the increase in food consumption, the rise in state subsidies and the increased demand for agricultural machinery..According to the report of Interfax imports of agricultural machinery went up by 57.4 % in 2010.Based on these figures, the market for agricultural machinery grew by 14.8 % in 2010 and its growth dynamics continue to look good. It shows a continued growth dynamic. The Russian government considers the need to modernize the machinery test stations and ongoing developments.Please check the latest news, important dates as well as the technical programmeof AgroTech Russia 2011 on the website .?AgroTech Russia 2011back to topNewsletter No 1March 2011 Page 3?Results of AgroTech Russia 2010?Facts and figures• 639 exhibitors from 29 countries• 47.000 qm exhibition area• 21.285 qualified visitors from all regions of Russia?Selected results of exhibitor and visitor surveyAgroTech Russia 2010Evaluating of participation in AgroTech Russia Professional position of visitors Plans to visit AgroTech Russia againPlans to take part again15%24%14%13%14%3%3%9% 5%Director, general managerHead of departmentSenior expert Expert Manager Laborer Lecturer, research staff StudentOther50%54%55%31%30%34%19%16%11%Number of visitorsQuality of the visitorsParticipation overallvery satisfied satisfied less satisfied42%40%3%3%12%Yes, definitely Yes, probablyNo, probably not NoNot decided78%3%19%Yes No I don't knowYou may download the more detailedresults from the visitor and exhibitorsurvey .back to topNewsletter No 1March 2011 Page 4? Exhibitors on AgroTech Russia 2010Valeri Krivorouk, Engineering Works Bernard Krone GmbH, Export Manager‘We believe that events of this kind give us better access to customers. They also give us the chance to talk about and showcase our products. The exhibition went well for us today. Virtually all of the agricultural machinery we had on show has found a buyer. And we’ve conducted some serious negotiations. That’s why, for us, AgroTech Russia serves as a performance indicator, both for the previous year and also for the year ahead, because it shows us the direction things are heading in and how we need to organize our production programme to keep up. That’s why there are so many of us here today and why we put so many of our machines on show – and why we’re so proud of what we’ve achieved.A.A. Vedernikov, OOO Gruzovye avtomobili GAZ Group, Director of Marketing and Strategic Development The car maker Ural has been producing agricultural machinery since 1983, but regrettably we’ve only just started taking part in this exhibition. We now see how important this event is and have put two of our largest agricultural machines on show. I was very surprised to see such a large number of exhibits. It’s not at all monotonous like so many other shows are. I’m really looking forward to having a look around; there’s so much to discover and there’s a lot of potential with regard to our work in the future.Alexander Schuhmann, Grimme Landmaschinenfabrik GmbH (Agricultural Machinery Plant), Head of Sales We traditionally take part in the agricultural machinery section of the Golden Autumn exhibition which has gradually evolved into the AgroTech Russia show. Our participation this year is special because we have started producing agricultural machinery in Russia. The machines made in Detchino near Kaluga are on show here –all models in fact – and some of them have been sold right here at the exhibition.The atmosphere at the exhibition is great, too. None of the farmers or entrepreneurs, in fact no-one we spoke to, was complaining about how bad and difficult things were. They all said quite the opposite: we want to work and we’re looking for new ways forward. They come to us so that we can show them what they can do to get ahead and improve their earnings, especially in poor weather conditions like we’re experiencing this year.back to topNewsletter No 1March 2011 Page 5Dr. Thomas Schäfer, Official Inspector, Exhibitions Department at the Federal German Ministry for Food, Agriculture and Consumer ProtectionI have to say that this exhibition is one of the most important for us. Germany’s presence here is amongst the strongest it has abroad. In all, some 53 companies are taking part in our joint stand.Dr. Walter Fischer, Senior Expert Service, Head of Agricultural Sector We’ve noticed that the demand for our products is very good. Exhibitors can make some very interesting contacts here and get to know new people. That’s why many exhibitors take part regularly because they can brush up on their existing contacts and make new ones.Bill Teerhuis, Trade Specialist, Manitoba Trade and Investment Division, Ministry of Entrepreneurship, Training and Trade, CanadaThe event’s dynamic development clinched it for us. AgroTech Russia gives us an ideal opportunity to access the Russian market. For us, this event is particularly effective because of the professional visitors it attracts and its focus on certain specialist groups. Our companies need to meet all these different organizations in order to establish contacts and make a name for themselves in the CIS and in Russia especially.Eugenio Schlossberg, Managing Director ExpoagroWe want to see how Russian farmers work and how things are looking in Russia at the moment. We see how interested Russian companies are and I reckon we’ll be coming back.? Exhibitors on AgroTech Russia 2010back to topNewsletter No 1March 2011 Page 6Mateo Mazzini, Deputy Managing Director at the Moscow representation of ICE (Italian Foreign Trade Institute), Managing Director of the Department for Engineering, Technology and Economic Cooperation Together with the UNACOMA (Italian Agricultural Machinery Manufacturers Association), we have been able to showcase 21 companies at the Italian joint stand this year. Last year we had just over ten companies. We take part in AgroTech Russia almost every year because we believe that this exhibition is one of the major focal points in Russia’s agricultural sector. Our impression on day one is very good. Russia is recovering from the economic crisis quite quickly; the first day last year was not as encouraging. Today though we can see that there are plenty enough visitors here.Fabio Ricci, Project Manager UNACOMA (Italian Agricultural Machinery Manufacturers Association)This is the first time I’ve been to the Golden Autumn show in Russia and I’m pretty sure that the exhibitors want to identify suppliers and traders in Russia, especially those that are entering this market for the first time. They’re also on the look-out for local suppliers. We believe that there is no other exhibition like AgroTech Russia for agricultural machinery in particular and for the entire agricultural sector in Russia in general. The fact that in comparison to last year Italy is represented here twice says it all – we really believe in the Russian market.Francisco Sérgio Ferreira Jardim, Brazilian Deputy Agricultural Minister, Managing Director of the Secretariat of Animal and Plant Health and Inspection I always enjoy coming to Russia and I’ve always wanted to establish some sort of cooperation here – and now an opportunity has presented itself. As the Deputy Minister of Agriculture, Livestock and Food Supply, I’m in charge of a technical group that is currently engaged in negotiations with Russia. Russia wants to export wheat, fertilizer and chemical pesticides to Brazil. Brazil on the other hand is keen to export meat to Russia.? Exhibitors on AgroTech Russia 2010back to topNewsletter No 1March 2011 Page 7?What’s new in the agricultural machinery sector?State subsidies for agricultural leasingWith immediate effect, the agricultural machinery on hand at Rosagroleasing is now up for sale or leasing at 50% of the acquisition cost – this message was conveyed by Russia’s Prime Minister Vladimir Putin at the 12th Convention of the Association of Private Farms and Agricultural Cooperatives in Tambov on 2 March 2011. At present, the Rosagroleasing depot has more than 5.5 thousand agricultural machines on its books. ‘After two difficult years, and especially last summer’s drought, not many farming enterprises have the financial resources they need to buy new machines,’ said Putin. ‘This is why it was decided to subsidize Rosagroleasing at an additional cost to the state of 4 billion roubles. Given the growth rates in the Russian economy overall, the budget situation and the precarious situation on the food market, we are obliged to back the seed campaign and help farmers buy in new technology.’ Russia’s Head of Cabinet expressed his hope that this move would also secure a good harvest.Source: Interfax Selskoe khozyaystvo i prodovolstvie, No. 9 dated 09 March 2011 Rise in imports of agricultural machinery from the West The First Deputy Prime Minister of the Russian Federation, Viktor Zubkov stated that in 2010 imports of agricultural machinery went up by 57.4 %. At the same time, the demand for Russian agricultural machinery dropped by 5.5 %. Based on these figures, the market for agricultural machinery grew by 14.8 % in 2010 and its growth dynamics continue to look good. ‘According to the forecasts by agricultural machinery manufacturers, demand for Russian agricultural machinery could go up by more than 7.5% this year. Given this situation, it is vital to secure state subsidies for this year,’ said Zubkov.Zubkov spoke too about the need to modernize the machinery test stations and about ongoing developments. He also talked about various methods and criteria that would enhance effectiveness and about the quality of services for the agricultural sector. Source: Interfax Selskoe khozyaystvo i prodovolstvie, No. 7(1002) date 22 February 2011Credit restrictions for Rosselkhozbank liftedRussia’s Prime Minister, Vladimir Putin, stated that the government has given the Russian Agricultural Bank, Rosselkhozbank, the go-ahead to extend loans for the purchase of Western agricultural machinery. Banks such as Vneshtorgbank (VTB) and Sberbank were already authorized to do this in the past, but the time has now come to lift these restrictions on Rosselkhozbank. At the same time, however, Putin pointed out that these loans would not be subsidized by the state. Source:back to topNewsletter No 1March 2011 Page 8Western Manufacturers build up production plants in RussiaIn his speech at the 12th Convention of the Association of Private Farms and Agricultural Cooperatives in Tambov on 2 March 2001, Russia’s Prime Minister Vladimir Putin declared that the state would no longer subsidize imports of agricultural machinery. He did emphasize however, that – in line with the automotive plants now in existence - the government would create favourable framework conditions for Western companies wishing to set up assembly plants in Russia directly. ‘This will mean certain limitations for the import of finished products. We want state-of-the-art technology to be produced in our country,’ said Putin. At the same time, the Prime Minister explained that the credit restrictions for purchasing Western technology that are currently in force at the Russian Agricultural Bank, Rosselkhozbank, will be lifted. Putin proposed developing a programme to stimulate the production of high-tech Western agricultural machinery in Russian plants. According to Putin, it is high time that Russia renewed its fleet of agricultural machinery. Western manufacturers are now gradually responding to this new situation and opening plants in Russia.Source: Interfax Selskoe khozyaystvo i prodovolstvie, No. 9(1004) dated 09 March 2011?The latest news from the Russian agricultural sectorFavorable loans for the upcoming seed campaignAccording to a Rosselkhozbank press release, restrictions have been lifted with regard to certain seeds that were accepted as security for seeding operations. As of today, farmers can deposit any type of seed as collateral.This decision was made in order to extend credit options.Furthermore, farmers can now put up the future harvest as collateral instead of being obliged to use other property, even if the loan is taken out before the seed campaign. The value of the deposit is now determined by the ongoing market prices, whereby the maximum loan granted can be up to 100% of the deposit value as opposed to 60% before.As reported earlier, the Russian Agricultural Bank, Rosselkhozbank, has earmarked 105 billion roubles from its credit resources to conduct the seed campaign. Rosselkhozbank has lowered its loan interest rate for the seed campaign, too. The bank states that, depending on the term of the credit, the annual interest rate should be somewhere between 7.5 % to 10 %. Rosselkhozbank also stated that in November it already lowered it interest rates for seasonal campaigns by 9 to 11 %. This move made it easier for farmers to access loans and shortened the amount of time involved in processing loan requests. The objective of this second drop in interest rates is to support the upcoming seed campaign and to stabilize the financial status of those farming enterprises affected by the drought in 2010.Source: Interfax Selskoe khozyaystvo i prodovolstvie, No. 8 (1004), dated 02 March 2011 ?What’s new in the agricultural machinery sector?back to topNewsletter No 1March 2011 Page 9?For your calendarPrices for participation in the exhibition(including 18 % VAT)1 € = 39,41 RUB exchange rate of 14.2.2011Registration fee for exhibitor: 9000 RUB Registration fee for co-exhibitor: 8000 RUB?Application documents and participation conditionsApplication forms General conditions Exhibition grounds/ hall plans Dates and deadlines Registration for the AgroTech Russia 2011 “Innovations Catalogue” Stand area excluding walls, equipment and furniture (RUB/sqm) Row stand 1 side openCorner stand 2 sides openPeninsula stand 3 sides openIsland stand 4 sides openRegistration and 50% prepayment until 30.04.2011*4400** 4800** 5000** 5400**Registration and 50% prepayment until 31.07.2011*6000 6300 6500 6700Registration and payment as of 01.08.2011* 6900 7200 7300 7400*The final payment of 50% from the contract amount must be made within 60 days, but not later than on 4th of October 2011.** The reduced prices are valid only for stand area sizes starting at 300 sqm. Multi-storey stands per sqm of the upper levels (RUB/sqm) 2000Price of carpeting according to fire safety regulations (RUB/sqm) 600Standard stand construction (RUB/sqm) 2100Open air groundStand area excluding walls and stand construction (RUB/sqm) 2600ContactDLG International GmbHProject management Exhibitor service Exhibitor service Dr. Olga Hunger Ghenadie Mindru Angelina LaasTel.: +49 69 247 88 271 Tel.: +49 69 247 88 278 Tel.: +49 69 247 88 273 Fax: +49 69 247 88 138E-Mail: agrotechrussia@dlg.orgback to top Foliennummer 1 Foliennummer 2 Foliennummer 3 Foliennummer 4 Foliennummer 5 Foliennummer 6 Foliennummer 7 Foliennummer 8 Foliennummer 9