ATR11-News-No2 Brochure

May 2011Dear Reader,with this our 2nd 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?AgroTech Russia – Russia’s most important exhibition for agricultural machinery and equipment ?What’s new in the agricultural machinery sector??Perceptible upturn in the investment markets ?Rosagroleasing: 2,000 contracts have already been concluded?Supply restrictions for fuels and lubricants relaxed?The latest news from the Russian agricultural sector? Russia expects international investment in agriculture? Government support in the agricultural sector rises till 170 billion RUB? Agricultural production grows by 10 to 11 %? Forecasts for the grain harvest 2011?News from agricultural machinery producers? Concern Tractor Plants conducts negotiations with AGCO? KUHN announces the completion of the acquisition of KRAUSE?For your calendar? The stand allocation starts on 30 June 2011? The lower participation rates for all stand sizes apply up to 31 July 2011?Application documents and conditions of participationIs there something else you’d like to know? Just get in touch – we’re here to assistSincerely,Your AgroTech Russia Team?ContactNewsletter No. 2?AgroTech Russia 2011?AgroTech Russia – Russia’s most important exhibition for agricultural machinery and equipment AgroTech Russia has a very high profile as central forum for Russia's entire agricultural sector. This is where the suppliers of agricultural machinery and equipment meet the investors and key decision-makers, experts and farmers and high-ranking politicians. Accordingly the exhibition enjoys the support of the Russian Ministry of Agriculture.* The Ministry invites delegations from all regions of Russia to visit the exhibition. Invitations to the heads of the regional ministries of agriculture for AgroTech Russia 2011 have already been sent out. * In Decree No. 61 of 3 March 2011, Russia’s Minister of Agriculture Elena Skrynnik specified the list of exhibitions that the Ministry will be supporting in 2011. It includes AgroTech Russia as the only all-Russian exhibition for agricultural machinery and equipment in the Moscow Region. The document can be studied on the Ministry’s website back to topNewsletter No 2May 2011 Page 2?What’s new in the agricultural machinery sector?? Perceptible upturn in the investment marketsParallel with the strong domestic business, demand in export markets has revived perceptibly. Since December last year the farm machinery manufacturers have again been experiencing high, double-digit growth rates from international customers. They can count on substantial sales increases in the key markets of France, the USA and Russia. Regrettably the last two years have seen a decline in the volume of imported agricultural machinery and equipment as a consequence of the customs duties imposed on such machinery. Since the beginning of 2011 the market for agricultural machinery and equipment imports has picked up again.Sergey Filobok, Managing Director of Tekhnokom, regrets that the introduction of the customs duties had a negative effect on import figures. “The question is whether this is profitable for farmers too”, points out Filobok. Beyond doubt there are Russian manufacturers who produce modern and effective agricultural machinery and equipment, the best examples being combines and tractors from Rostselmash, he stresses. However, there are no domestic producers of some items of agricultural machinery and equipment in Russia. The farmers are then generally forced to buy imported machines. The Managing Director of OOO Bauer Rustam Tuishev as CLAAS dealer confirms that farmers are quite unable to purchase powerful and efficient combines designed for large farms with high yield levels. And these are generally the large agroholdingsthat “feed the entire country”. He stresses that the technical modernizing and renewal of agricultural machinery fleets remains highly topical. According to the CLAAS dealer, one reaction to the blocking measures with introduction of customs duties was the opening of the production line for top-of-the-range combines in Krasnodar.Alexei Aksenov from CLAAS Vostok shares this optimistic attitude. CLAAS used the whole of 2010 to prepare for growth. The company invested EUR 125.2 million in research and development and was able to maintain this at a high level. The results were displayed in the presentation of the third generation of LEXION combines. The production line for the TUCANO 480 was started up in Krasnodar. The new tractor generation XERION was also launched. The dealer network was expanded and a new dealer incentive system developed. The requirements made of presale and aftersale customer service as well as spare part supplies were intensified.Vladimir Ivashchenko, Distribution Manager at ACT, believes that the rise in imports of agricultural machinery and equipment is attributable to the financial revitalization of the entire Russian economy, as well as to the gradual exhausting of reserves of goods already imported. “The need to import new products is being implemented”, he says.Dealers also attribute the market revival partly to the improved borrowing and leasing conditions. They believe that agricultural authorities will feel compelled to strike a compromise between representing the interests of Russian manufacturers of agricultural machinery and equipment and the actual needs of Russian farm businesses regarding high-performance machines.Source: , newsportals andback to topNewsletter No 2May 2011 Page 3?What’s new in the agricultural machinery sector?? Rosagroleasing: 2,000 contracts have already been concludedOn handing over the first batch of agricultural machinery and equipment to farmers in Rostov, the press spokesman of Rosagroleasing, Sergei Selivanov, was able to announce that 2,100 contracts for deliveries of agricultural machinery and equipment with a price reduction of 50% had been signed. He emphasized that there was very high demand for the programme. According to the forecasts of Rosagroleasing, the machinery and equipment will be delivered to farmers in good time. They reported that the Rosagroleasing branches were working almost round the clock to maintain the operative character of this measure. The agricultural machinery and equipment was ready and could be delivered to the fields immediately. At the 12th Congress of the Association of Farmers and Agricultural Cooperatives in Tambov on 2 March 2011, Prime Minister Vladimir Putin announced the government decision to grant the farmers a 50% discount on purchases of agricultural machinery and equipment via Rosagroleasing. The government was budgeting 3.7 billion Rubles for this subsidizing measure. The total value of this machinery and equipment was 7.4 billion Rubles. The measure was launched in mid-April 2011. The local administrative bodies then received 5,800 applications, which they forwarded on to Rosagroleasing.Source: Interfax No.17 (1012) of 04.05.2011? Supply restrictions for fuels and lubricants relaxed The delivery problems with fuels and lubricants should now be more or less eliminated, announced the Minister of Agriculture of the Russian Federation, Elena Skrynnik, at the regional conference organized by United Russia in Volgograd on 6 May. The overall theme of the conference was “The development of the south in Russia in 2011-2012”.“We have examined this situation in detail”, said the Minister. She added that fuels and lubricants are to be offered at rates 30% below the market prices. If farmers exceeded the limit for the current month, they were to be able to use the quantities to which they were entitled in the following months. The situation with possible supply constraints was to be kept under observation and the results were to be discussed at a follow-on conference.Source: Interfax No 18 (1013) of 11.05.2011back to topNewsletter No 2May 2011 Page 4?The latest news from the Russian agricultural sector? Russia expects international investment in agricultureRussia reckons with greater international investment in the agricultural sector. This was announced by Sergei Korolev, First Deputy of Russia’s Minister of Agriculture at the Global AgInvesting-2011 Conference in New York, as reported by IA SoyaNews.Korolev believes that the areas of cereal, poultry and pig production are particularly attractive for investors. He explained what perspectives investment in Russian agribusiness brings and predicted that by the year 2020 the volume of poultry production in the Russian Federation would reach about 4.5 million metric tons. According to the Ministry, cereal production is to be increased to 125 million metric tons, of which 40 to 45 million metric tons will be earmarked for export. Korolev also stated that government support contributes to the attractive investment climate in the agricultural sector. In the year 2010 it amounted to $ 3.68 billion, including $2.39 billion for subsidizing loans. Source: Agency AgroFakt of 06.05.2011?Government support in the agricultural sector rises till 170 billion RublesAt a session of the Duma the Prime Minister of the Russian Federation, Vladimir Putin, commented on the plans of the central government to introduce changes in the volume of state support in the federal budget, reports PRIME-TASS. Putin has announced a 20 billion Ruble increase in budget funds earmarked for the Russian agricultural sector in 2011, taking the total up to an amount of 170 billion Rubles. The Prime Minister also stressed that Rosagroleasing was to offer approx. 6,000 machines to farmers at a discount of 50%.Furthermore, federal and regional budgets were to support farmers in connection with the costs of settling land issues. Altogether 120 million Rubles are to be disbursed for this.The head of government also said that federal budget spending on support for the agricultural sector in 2011already amounted to over 150 billion Rubles. In addition financial institutions such as Rosselkhozbank and Sberbank were also reserving funds totalling 100 billion and 50 billion Rubles respectively for loans to farmers.Borrowing needs for sowing and planting have been covered in full. The Prime Minister pointed out that Rosselkhozbank and Sberbank had made 150 billion Rubles available for this work. He added that the price reduction for fuels and lubricants had been retained.Putin stressed the need for catching up on the backlog caused by the late start to the drilling and planting operations. “I should like to stress that we shall help everybody in the country, both the large farms that are concentrated particularly in the south of the country and the small and medium-sized farms”, added the Prime Minister.Source: Interfax No.18 (1013) of 11.05.2011 and agency AgroFakt of 20.04.2011 back to topNewsletter No 2May 2011 Page 5?The latest news from the Russian agricultural sector?Agricultural production grows by 10 to 11 %In 2011 growth in agricultural production will reach a record level and rise by 10 to 11 %, announced Deputy Prime Minister and Minister of Finance Alexei Kudrin at a Duma session. “This is one of the highest performances in recent years”, added the Deputy Prime Minister.According to the information supplied by the State Statistics Authority, agricultural production dropped by 11.9 % in 2010. With consideration given to the consequences of the great drought in summer 2010, the Ministry of Agriculture had itself forecast a drop in agricultural production by 9 to 10 % at the end of 2010.Source: Agency AgroFakt of 11.04.2011 ? Forecasts for the grain harvest 2011The agricultural sector appears to have overcome the consequences of the drought in summer 2010 reported the Minister of Agriculture of the Russian Federation, Elena Skrynnik, at a meeting of the Presidium of the Council in Moscow on 28 April. The index of agricultural production in the first quarter was 100.7 % and that was to be taken as a clear sign that the sector was no longer in a difficult situation, stressed Elena Skrynnik. She added that the measures taken by the government were having positive effects on eliminating the results of the disaster. Talking about the goals set for this year, the Minister said that the most important matter was to carry out the drilling and planting on 50 million hectares within an optimal period. According to estimations by the Ministry, the grain harvest in this year can amount to 85 million tonnes.Source: Interfax No 17 (1012) of 04.05.2011back to topNewsletter No 2May 2011 Page 6?News from agricultural machinery producers? Concern Tractor Plants conducts negotiations with AGCOAlongside “Concern Tractor Plants” (CTP – Koncern Traktornye zavody), the Machinery & Industrial Group, one of Russia’s largest industrial and machine manufacturing groups, possesses 17 further plants at sites in Russia, Denmark, Germany, Austria, the Netherlands, Serbia and Ukraine. The enterprise, operating under the Dutch name M&IG N.V., is a holding company which until recently owned 100 % of the shares of all the companies. The owners are Albert Bakov who holds 20 % of the shares and Mikhail Bolotin, who holds the rest.In addition to tractors and agricultural and forestry machinery and equipment, the group produces installations and machinery for the oil and gas industry, the power industry , the steel industry, building construction and civil engineering, and special vehicles for municipal applications. The holding company includes four distribution and services enterprises, one of which is the firm Agromash Holding. The enterprise was set up in 1996 by Mikhail Bolotin on the basis of the Cheboksary Industry Traktor Plant. Today, as President and Managing Director, he heads a workforce of 25,000.Before the takeover by Bolotin, the company supplied the countries of the Warsaw Pact area, but has meanwhile withdrawn from these markets so that today the home market forms the focal area of corporate activities. Revenues have shrunk, as now only the domestic market with a population of 120 million is to be serviced. The priority target is and remains retaining the leading position in Russia. The group strategy is to take over high-tech companies specializing in fields in which the group sees a need to catch up, but not in order to transfer these enterprises to Russia. Instead the aim is to expand their production capacities and palettes so that they can service markets in both the East and the West. However, in order to attain a presence in European countries the smaller manufacturers were to be taken over.To boost the efficiency of his enterprise, Bolotin is planning to conduct technical modernization programmes with concrete measures. The volume earmarked for investment totals another 600 million US Dollar, intended to increase revenues to 5 billion US Dollar.The Managing Director of CTP believes that no country will dispense with manufacturing agricultural machinery and equipment itself, but instead will make every effort to maintain and promote this industry in order to ensure independence in food supplies as far as possible. Land areas cannot be increased, but food consumption will continue to grow. Russia is the country with many free, attractive and as yet untilled areas. Appropriate machinery and equipment will be needed to cultivate these fields. Bolotin stressed that the Russian market has space for all manufacturers, and furthermore is not homogenous. There is plenty of demand for both high-tech and low cost machinery, partly from China too.Continued on next pageback to topNewsletter No 2May 2011 Page 7?News from agricultural machinery producers? Concern Tractor Plants conducts negotiations with AGCO ContinuationVogel & Noot, Luitpoldhütte and Silvatec belong to the company portfolio. Negotiations on a joint venture are underway with AGCO. CTP already operates a joint enterprise with AGCO that produces SISU engines. Other joint projects are under discussion. The Russian enterprise would like to service three areas of competence itself – building of engines, gearboxes/transmissions and key components. The rest can be supplied from everywhere else. For CTP it is interesting to solve the market problems on a grand scale with AGCO. This is not a matter of a few selected models, but instead of all the machines for which there is demand in Russia. The company aims to provide a full-line arable farming programme from drilling to harvesting, including tractors, for both Russian and international customers.Source: Eilbote, No. 15 2011? KUHN announces the completion of the acquisition of KRAUSEKUHN Group announces the completion of the acquisition of KRAUSE Corporation, a privately held North American leader in the field of tillage equipment and grain drills, located in Hutchinson, Kansas, USA. The company KRAUSE was founded in 1916. The generate turnover of KRAUSE amounted last year 61 Mio. USD, the number of employees came to 230 employees. KUHN Group, headquartered in Saverne, France, employs in excess of 3,500 people worldwide, and operates eight manufacturing companies located in the United States, France, Brazil, and the Netherlands. KUHN Group is represented worldwide through a large network of independent dealers served by a number of international marketing and distribution subsidiaries and independent distributors. In 2010, KUHN Group’s revenues exceeded 617 million Euros (US $850 million). KUHN North America, Inc. mit Sitz in Brodhead, Wisconsin, beschäftigt ca. 500 Mitarbeiter und produziert und vertreibt KUHN-Maschinen. The new Company will continue to be lead by the prior KRAUSE Corporation management team and all KRAUSE employees, instrumental in the Company’s past successful performance, have been retained, with operations continuing in Hutchinson, KS. Mr. Thierry Krier, the President and CEO of KUHN NORTH AMERICA, INC., will serve as CEO of this new KUHN Company, while Mr. Keith Whitaker will serve as President.Source: Company-owned websiteback to topNewsletter No 2May 2011 Page 8?For your calendar?Application documents and conditions of participationApplication forms General conditions Exhibition grounds/ hall plans Dates and deadlinesRegistration for the AgroTech Russia 2011 “Innovations Catalogue” ContactDLG International GmbHProject management Exhibitor service Exhibitor serviceDr. 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: Prices for participation in the exhibition(including 18 % VAT)1 € = 40,08 RUB exchange rate of 30.05.2011Registration fee for exhibitor: 9000 RUB Registration fee for co-exhibitor: 8000 RUBStand 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 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 2011Multi-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) 2600back to topNewsletter No 2May 2011 Page 9 Foliennummer 1 Foliennummer 2 Foliennummer 3 Foliennummer 4 Foliennummer 5 Foliennummer 6 Foliennummer 7 Foliennummer 8 Foliennummer 9