ATR11-News-No3- Brochure

back to first PageNewsletter No. 3 July 2011Dear Sir or Madam,We should like to use this third issue of the AgroTech Russia 2011 Newsletter to inform you about current developments on the agricultural machinery and equipment market in Russia and about AgroTech Russia.In this issue:?AgroTech Russia 2011 ? Hall allocation has started? Newly established association of potato producers plans to hold its first general assembly at AgroTech Russia? Agricultural machinery market? Russia’s agricultural machinery market picks up momentum? China aims to produce agricultural machinery in Russia?News from Russia’s agricultural sector? 2 million ha more grain cropland than last year? Russia is back on the world grain market? Export duties on grain waived? No “explosive” increase in grain exports in sight ? Potato harvest grows by 30 %?Save the date?The favourable prices for all stand sizes apply up to31 July 2011?Registration forms and conditions of participationWe remain at your disposal to provide any further information you needKind regards,Your AgroTech Russia Team?Contactback to first PageInfobrief No. 3Juli 2011 Page 2back to first Page? AgroTech Russia News? Hall allocation has startedPreparations for AgroTech Russia 2011 are running at full speed. The stand allocations in the halls for exhibitors who have already registered started at the beginning of July.The number of exhibitors at AgroTech Russia is growing continually and has now reached about 300. This figure is expected to rise steeplyup to the end of July, because the final registration phase involving higher prices for stands is set to start on 1 August.The exhibitors at AgroTech Russia 2011 include leading Russian and international companies in the agricultural machinery industry such as Agrifac, Amazone, Agromashholding, Berthoud Agricole, Fliegl, Gomselmash, Gregoire Besson, Grimme, Krone, Kuhn, Manitou, Monosem, Pöttinger, Riela, Sulky Burel, Tecnoma and others.of the country has been elected Chairman of the Board. He explains that the association wants to contribute to building up an efficient all-Russian potato and vegetable market. Minister Elena Skrynnikwelcomed the founding of the organization. She promised that the Ministry would cooperate closely with the potato producers association. ? Newly established association of potato producers plans to hold itsfirst general assembly at AgroTech RussiaAn association of potato producers has been founded in Russia. Sergej Lupehin,Director General of the “Malino” agricultural group that operates in five provincesThe association plans to hold its first general assembly this October at the Golden Autumn/AgroTech Russia event.Source: Agra-Europe, No. 14/2011, ?????-????, 29.03.2011In addition to participating in national pavilions, some exhibitors have increased their presentation areas for individual participation. Germany remains the lead country among the international exhibitors. There are also large numbers of participants from the Netherlands, Italy, France and other countries. To see the current list of exhibitors click .back to first PageNewsletter No. 3July 2011 Page 3back to top? Russia’s agricultural machinery market picks up momentumAs is well known, the Russian market for agricultural machinery and equipment shrank byalmost 40% in the crisis year 2009. Imports, that accounted for about 60% of the market,dropped by about 70%. According to the Infoportal Runo-Agro, reasons for this declineinclude low prices for farm produce, increased import barriers and a broad credit crunch.Furthermore, the measures launched at the beginning of 2009 to restrict market accessfor foreign manufacturers were politically motivated. On the one hand import duties forself-propelled harvesting machinery were raised from 5% to 15%,and on the other handthe interest-subsidised loans for agricultural machinery and equipment produced outsidethe Russian Federation were stopped. In 2010, farmers received an 80% refund of theinterest rate for agricultural machinery “Made in Russia”.An improvement in the situation became apparent already in the second half of 2010.Conditions in the agricultural sector have improved considerably by comparison with thepreceding year. Loans are available again for imported agricultural machinery too.Russia’s agricultural machinery and equipment market grew by approx. 20% in 2010. Aclear trend towards modern western machinery can be ascertained – both importedmachines and locally produced machines. German exports to Russia grew by as muchas 39% in 2010 and accounted for 370 million Euro towards the end of the year.The potential in Russian agriculture is still immense. Prices for most agricultural produceare at a level making them attractive for investors. The strongly limited investments of thelast two years have led to the demand for agricultural machinery and equipment growingeven further. The machinery fleet of only 32% of the Russian farmers covers presentneeds. A further factor is the much higher strain placed on machinery in Russia than inWest European markets, which leads to more intensive maintenance and fasterreplacement of machines.According to Runo-Agro, the sales expectations of most West European and Russiancompanies anticipate a growth of 30% to 40%. In some areas, such as e.g. individualsegments of tillage, drilling and forage harvesting machinery, the market is expected togrow by as much as 60% to 70%. Imports now play a smaller role in the tractor andcombine segments, as the major international groups have already built up their ownproduction locations in Russia. Perspectives are also excellent for componentmanufacturers and suppliers.Source: Runo-Agro,? Agricultural machinery marketback to first PageNewsletter No. 3July 2011 Page 4back to top? China aims to produce agricultural machinery in RussiaThe director of the Chamber of Commerce of the city of Jiamusi, Ghun Syli, announcedat a public Russian-Chinese exhibition for agricultural machinery that China is greatlyinterested in producing agricultural machinery jointly with Russia. “Our cooperation is notonly restricted to trade”, she stated. At present a project of the unified industrial and tradepark for agricultural machinery and equipment construction is running in the JewishAutonomous Region and the Chinese side is planning to assume financing of this project,reported Ms Sylli. It is planned that agricultural machinery will not only be built in thefuture park, but also sold as well..Source:back to first PageNewsletter No. 3July 2011 Page 5back to top? Russia is back on the world grain market The Russian government plans to hold talks with the countries that have traditionallyimported Russian grain in order to lay out Moscow's long-term position on the global grainmarket, First Deputy Prime Minister Viktor Zubkov said."The government will hold additional talks with certain countries to explain that we arereturning [to the market following Russia's 10-month grain export ban] for years and yearsto come," Zubkov told reporters on the sidelines of the Russian Agrarian Movement convention in Rostov.Russia will cancel the grain export ban on July 1. With the cancellation of the ban, Russia is ready to revisit the idea of forming a Black Sea grain pool together with Ukraine andKazakhstan. "If we receive such proposals from our colleagues, from Ukraine andKazakhstan, we will definitely look at them," he said.Meanwhile, Russia might introduce export duties on grain only if the price increases to6,500 rubles per tonne of class 3 or 4 wheat, Zubkov told journalists on the fringes of the fifth congress of the Russian Agrarian Movement, where he was unanimously elected aschairman."So far, there's no need to set up an export duty," Zubkov said.When asked under what conditions a restrictive measure might be employed, Zubkovsaid; "We've already discussed this, there's no big secret. It's possible, if the pricesuddenly goes to 6,500 rubles per tonne of Class 3 or 4 wheat," he said. Zubkov addedthat the grain price now is fair enough below this at around 1,000 rubles."What would we do this [introduce an export duty]?" Zubkov said.Source: Interfax Selskoe khozyaystvo i prodovolstvie, no. 25, 29.06.2011? News from Russia’s agricultural sector? Two million hectare more grain cropland than year beforeThe drilling season has been completed in Russia. The grain harvest this year is expected to total 85 million t if the weather is good, announced the Russian Federation’s Ministry of Agriculture Elena Skrynnik at a meeting of the Presidium on 9 June. According to the statement by Viktor Zubkov at the 5th session of the Russian Agrarian Movement in Rostov-on-Don on 23 June, some 49 million hectares have been cultivated. That is 2 million hectares more than in the previous year. “This allows us to expect a good harvest and plan to export 15 million t”, he forecast.Mr Zubkov announced that the financial support for agribusiness will remain a fundamental position of the government. He reminded listeners that in the last five years only 0.5 billion rubles from the federal budget had been spent on promoting agriculture. The regional budgets had added a further 250 billion rubles. “These are considerable sums”, he emphasized.Source: Interfax Selskoe khozyaystvo i prodovolstvie, No. 23 of22.06.2011 and No. 25 of 29.06.2011back to first PageNewsletter No. 3July 2011 Page 6back to topRussia does not currently see any specific reason for levying customs duties on grainexports, announced First Deputy Minister President Viktor Subkov at the InternationalEconomic Forum in St. Petersburg (16 to 18 June 2011). The Director General of theInternational Grain Company, Juriy Ognev, had called upon Subkov during an agri-political conference at the Forum to issue a binding declaration that there would be norestrictions on exports of Russian grain in the foreseeable future. Otherwise, key importcountries would simply delete Russia from their list when putting out tenders. CentralBank Head Ignatjev pleaded for flexible export duties that are supported by the Ministryof Economics too. The National Association of Grain Producers is against all exportduties, however. They say that the new trade restrictions would jeopardize Russia’sposition as important supplier of grain on the world market.Subkov stressed that Russia has good grain harvesting prospects this year and that iswhy the country should be able to cover demand from traditional buyers. Furthermore,Russia would like to strengthen its role as food supplier for a growing world population.The waiver of export duties on grain should help to stabilize the domestic food marketand check inflation. There has recently been growing discussion in Russia about creatinga national stabilizing fund for possible interventions in agricultural markets. According toSubkov, this step should be reviewed without any haste. As the Moscow Consulting andResearch Centre for Agribusiness (Sovecon) stated, Russian grain exporters again havemore chances of success in a tender announced by the Jordanian Ministry of Trade andIndustry for the beginning of July.Source: Interfax Selskoe khozyaystvo i prodovolstvie, No. 24 of 22.6.2011, Agra-Europe of 27.06.2011? Export duties on grain waived ? No “explosive” increase in grain exports in sight“Almost record-breaking grain deliveries from Russia are not to be expected after the grain embargo”, believes Igor Pavenksiy, Head of the Department for Market Analysis, ZAO “Rusagrotrans“. “There will be no ‘explosive’ increase in exports. The scope of deliveries is estimated at 1.5 to 1.7 million t, although it was initially suspected that exports would account for 2 million t”, explained Pavenskiy, talking to Interfax on 24.06.11. He added that grain export forecasts would be lower in July than in 2010, the preceding year, when 1.94 million t were exported. In July 2009 exports totalled 1.34 million t, and in July 2008 they were 0.81 million t. According to Pavenskiy, the reduction in forecast figures was due to price reductions on the world market. Another reason was that Russian grain has been deleted from the lists of importing countries. For instance Egypt recently excluded Russia from its list of grain suppliers up to August 2011 until the situation with the grain harvest is clarified.According to the information supplied by Rosstat, grain stocks up to 01.06.11 including intervention grain amount to 19.08 million t, compared with 23.9 million t at the same time in 2010. Source: Interfax Selskoe khozyaystvo i prodovolstvie, No. 25 vom 29.6.2011back to first PageNewsletter No. 3July 2011 Page 7back to top? Potato harvest grows by 30 per centRussia is expecting an almost 30% increase in the potato harvest, announced the Headof the Department for Regulating the Agribusiness Market and InfrastructureDevelopment of the Russian Ministry of Agriculture, Ilya Shestakov, at a pressconference on 21 June. Expressed in figures, the harvest is expected to bring in 27million t.As a consequence of the drought in summer 2010, the Russian Federation onlyharvested 21 million t by comparison with 31 million t in 2009. The rapid decline of theharvest in 2010 led to a re-distribution of consumer demand, explained Shestakov: Fewerpotatoes are being eaten, and instead more pasta. This is also confirmed by potatoimport figures, reported the Head of Department. The Ministry had been expecting importfigures in the range of 4 million t, but in fact potato imports only amounted to 1.5 million t.Estimating the consequences of the ban on vegetable imports from the EU, Shestakovstressed that this had in no way affected prices. The imports came chiefly in the winter-spring season to fill the gap caused by lack of domestic production. At present domesticvegetables were arriving on the market so that prices were dropping by 2% a week.Altogether, the Head of Department assessed the situation on the agribusiness marketas very stable and predictable.Source: Interfax Selskoe khozyaystvo i prodovolstvie, No. 24 of22.06.2011back to first PageNewsletter No. 3July 2011 Page 8back to top?Application documents and conditions of participationFor application forms click For general conditions click For exhibition grounds maps / hall plans click For dates and deadlines click For entries into the AgroTech Russia 2011 “Innovations Catalogue” click 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 € = 40,41 RUB, exchange rate of 04.07.2011Registration 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 up to 31.07.2011*6000 6300 6500 6700Registration and payment as of 01.08.2011*6900 7200 7300 7400*The final payment of 50% of 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 compliant with fire safety regulations (RUB/sqm) 600Standard stand construction (RUB/sqm) 2100Open air groundsStand area excluding walls and stand construction (RUB/sqm) 2600back to topNewsletter No 3July 2011 Page 8? Save the date Foliennummer 1 AgroTech Russia News Agricultural machinery market Foliennummer 4 Russia is back on the world grain market Export duties on grain waived ? Foliennummer 7 Save the date