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zurück zur Titelseite Newsletter No. 5 November 2011 Dear Reader, with this our 5th 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 results of AgroTech Russia 2011. This edition features: ?AgroTech Russia 2011 ? Results of AgroTech Russia 2011 ? Selected results of exhibitor survey ? Exhibitors on AgroTech Russia 2011 ?News in the agricultural machinery sector ? Zubkov sets high targets for agricultural machinery producers ? Keeping prices for fuel and lubricants low for farmers ?News from the Russian agricultural sector ? Government guarantees support for agricultural sector ? More than RUB 100 billion in government assistance ? Government not yet planning any intervention buying ? Russia against importing raw sugar in 2011 and 2012 If you have any further questions, just ask – we’ll be happy to assist in any way we can Sincerely, Your AgroTech Russia Team ?Contact zurück zur Titelseite ?Results of AgroTech Russia 2011 back to front page Newsletter No. 5 November 2011 Page 2 The AgroTech Russia – the international exhibition for agricultural machinery – took place from 6 to 16 October 2011 at its traditional venue, the All-Russian Exhibition Centre (VVC) as a part of the Russian agroindustrial exhibition ‘Golden Autumn’. This year‘s AgroTech Russia was able to sustain its position as Russia’s largest exhibition for the agricultural machinery once again. Some 623 companies from 29 countries, including all leading agricultural machinery producers, presented a wide range of the latest machinery and equipment for plant production at the All-Russian Exhibition Centre (VVC) in Moscow. With around 23,000 visitors, there was no doubting the popularity of AgroTech Russia 2011. More than 90 percent of the AgroTech Russia visitors are professional farmers or agribusiness experts. AgroTech Russia is one of the largest information platforms for agricultural machinery and equipment. It takes place annually as part of the Russian “Golden Autumn” agricultural exhibition. The high quallity of the AgroTech Russia visitors attested the status of the exhibition as one of the biggest information plattform for agricultural machinery and equipment in Russia. In comparison with 2010 a greater demand for exhibition space could been noted which ultimately necessitated the addition of a second exhibition hall. Total exhibition floor space this year thus came to 50,000 square metres. The largest increases were in the following sectors: spare parts and components, plant protection, fertiliser and seed breeding as well as harvest storage and processing. ?Facts and figures • 623 exhibitors from 29 countries • 50.000 qm exhibition area • around 23.000 qualified visitors from all regions of Russia zurück zur Titelseite ?Results of AgroTech Russia 2011 back to front page Newsletter No. 5 November 2011 Page 3 The high level of foreign exhibitors is one of the defining features of AgroTech Russia. With a total of 51 companies taking part, Germany was at the fore, followed by the Netherlands with 38 companies and Italy with 32. This time round there was a tangible increase in the level of interest in AgroTech Russia shown by China (14 companies), France (11) and Turkey (9). The largest contingents from Eastern Europe came from Belarus (27 companies) and the Ukraine (12). Lively talks with trade visitors at the Italian pavilion organised by the Italian agrimachinery association UNACOMA Admiring technology“Made in Germany”, the German joint stand has been organised by the German Federal Ministry for Food, Agriculture and Consumer Protection The products of the Dutch companies attracted attention on the part of trade visitors, the Dutch pavilion has been supported by The Dutch Ministry for Agriculture, Nature and Food Quality zurück zur Titelseite back to front page Newsletter No. 5 November 2011 Page 4 The organisers welcomed many high-ranking visitors from Russia and abroad at AgroTech Russia 2011. 15 agriculture ministers along with other leading figures from countries from the Black Sea region as well as from Denmark, Germany, Italy and the Netherlands took part in the official rounds of talks that accompanied the exhibition. ?Results of AgroTech Russia 2011 Russia’s Deputy Prime Minister, Viktor Zubkov, and Agriculture Minister, Elena Skrynnik, attended the open-ing ceremony together with the Management Board Chairman of Rosselchosbank, Dmitri Patrushev; the Director-General of Rosagroleasing, Valeri Nazarov; the Managing Director of the Russian farm equipment manufacturers association Rosagromasch, Evgeni Kortshevoi; the Director-General of GAO VVC, Alexei Mikushko; and the CEO of DLG International, Bernd Koch. In his speech Zubkov stressed that the Russian government would continue to provide substantial support for the agricultural sector. Addressing the farmers, he said that, ‘we will help you market your produce and will undertake further measures to lower the costs in various sectors, including fuel and lubricants and fertilisers. The Minister of Agriculture, Elena Skrynnik, pointed out that in future exports will constitute a new growth component for the Russian Federation’s agricultural industry. The exhibition also provided the setting for the signing of an agreement between the Russian Federation’s Agricultural Ministry and the Russian company, ‘Gruppa GAZ’, concerning the renewal of Russia’s agri-business transport fleet. zurück zur Titelseite back to front page Newsletter No. 5 November 2011 Page 5 This year too AgroTech Russia offered its visitors an outstanding platform for discussing topical issues. The various conferences focused on the modernization of agriculture using innovative technologies and the experience gained during roll-out. But they also looked at the prospects for developing bioenergy products in the Russian agriculture sector along with machine test stations and their role in the technical and technological modernization of agricultural production. Furthermore, AgroTech Russia offered numerous panel discussions, talk sessions, special events and live demonstrations that dealt, inter alia, with technical regulations and the renewal of agricultural machinery as well as with the problems encountered in seed breeding and propagation under free-market conditions. For young professionals, the central event at the exhibition was the All-Russian youth forum, ‘Youth in agribusiness – importance for the innovative development of Russian agriculture’, which has become somewhat of a tradition at AgroTech Russia. ?Results of AgroTech Russia 2011 zurück zur Titelseite back to front page Newsletter No. 5 November 2011 Page 6 ? Selected results of exhibitor survey AgroTech Russia 2011 Main activity / line of business of exhibitors 0% 10% 20% 30% 40% 50% 60% Production Trade (e.g. dealer) Scientific institution (e.g. research institute, educational institution) Service (e.g. insurance, financing, consulting, etc.) Public services (e.g. non governmental organisation, utility institution, branch … Information support (e.g. press, publishing house, etc.) Others 57% 37% 6% 5% 2% 1% 3% Principal objectives for exhibiting at AgroTech Russia and their achievment 44% 66% 52% 68% 58% 64% 51% 37% 25% 30% 26% 27% 22% 36% 19% 9% 17% 6% 15% 14% 13% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Generate new business contacts Intensify existing business contacts Launch new products / services Promote corporate image Exchange experience with clients and gather feedback on products / services Intensive consultancy Test market very satisfied satisfied less satisfied zurück zur Titelseite back to front page Newsletter No. 5 November 2011 Page 7 Evaluation of the participation in AgroTech Russia 2011 ? Selected results of exhibitor survey AgroTech Russia 2011 47% 49% 55% 33% 31% 32% 20% 20% 17% Number of visitors Quality of the visitors Participation overall very satisfied satisfied less satisfied 28% 40% 7% 1% 24% Yes, definitely Yes, probably No probably not No Not decided, too early to judge Plans to take part again zurück zur Titelseite back to front page Newsletter No. 5 November 2011 Page 8 ? Exhibitors on AgroTech Russia 2011 Maria Teresa Sfoggia, Owner of Sfoggia Agriculture Division “We have been coming here for many years now. We find this exhibition is growing from year to year. It’s an important event, an international agricultural exhibition. We know that the Russian market is growing and therefore the exhibition is very important for producers and customers. It’s an important meeting point. We think that the Russian market is a key market that offers many possibilities. There is a great demand for agricultural equipment and it will undoubtedly grow stronger.” Martin Kramer, Export Sales Manager, Management Board Member, Horsch Maschinen GmbH “Yesterday we had a lot of dealers here. … There was a big dealer meeting and today I’ve noticed there are more farmers, larger agricultural holdings and individual customers. And I recognize some of the customers too, because we’ve done business with them before. … We now have our own subsidiary in Russia. … But our plans don’t stop here. We all want to expand further …Our position in Russia is very promising: our machines have earned a good name for themselves here. … especially our no-tillage machines. Over the past two years, we’ve put a lot of constructive know-how into them.” I’m really pleased to be here and next year I will be here again for sure. …we are already planning to make a sampling centre for some of our machines in the south of Russia. We have a company there already that is part assembling some of our machines. So in the future we need to try to introduce a bigger range of machinery here too, because we feel the Russian market is very important. ... I am sure next year we will have more machines and a bigger stand.” Vincenzo Gasperi, Export Sales Manager, Bargam “It is a pleasure to have the opportunity to attend this exhibition, because for Bargam Company the Russian market is very important, and we think that this exhibition is a good opportunity for us to meet possible costumers and to follow the customers we already have. … zurück zur Titelseite back to front page Newsletter No. 5 November 2011 Page 9 ? Exhibitors on AgroTech Russia 2011 Thierry Moreau, Export Sales Manager, Berthoud Well, it’s not the first time we’ve participated in Agro Tech Russia. This year we have a bigger stand, more machines. It is also the first time we’ve had three big machines here for presentation on the Russian market. With regard to the Russian market, we want more dealers to know more about this market and we want to assist farmers too, by providing our knowledge to help them increase productivity and the quality of spraying. For that, we need strong dealers and confidence in the Russian market. Marco Pezzini, Secretary General, UNACOMA (Italian Agricultural Machinery Manufacturers Association) UNACOMA has been participating in this fair for the last six years as this is an excellent opportunity for Italian industry to perform on the Russian market. We have been developing our participation year by year in a bid to show the capacity Italian industry has and to present demonstrate its defining characteristics to the Russian market. There is a group of companies here in the UNACOMA pavilion, in the Italian pavilion … Altogether there are 14 companies here in the Italian area and 12 outside of this area… All of these companies provide an insight into the capacity Italian industry has to perform on specific markets. …Today Russia is undoubtedly one of the most interesting markets – a market that is evolving and growing.. … We’ve already had some good feedback, some interesting contacts and some very specialized contacts, more B2B contacts…at the final meeting the participants will decide what they will do next year. …I think they’ll be coming back. Well, my impression is … that contacts are quite good; it’s getting more and more professional in terms of organization and in terms of visitors as well. Dealers and farmers came to our stand and asked for some machines. They see them as an investment and use them to increase productivity. We’re quite satisfied. zurück zur Titelseite back to front page Newsletter No. 5 November 2011 Page 10 ?News in the agricultural machinery sector ? First Deputy Prime Minister sets high targets for agricultural machinery producers With a ‘modernisation strategy for agricultural machinery production through to the year 2020’, Russia’s First Deputy Prime Minister Viktor Zubkov aims to give the country’s agricultural sector a new lease of life. An expert working group is to devise a strategy that provides for an increase in annual turnover in the Russian agricultural machinery sector to RUB 350 billion (approx. EUR 8 billion) by 2020. The internet portal ‘Schweizerbauer.ch’ reports that the targeted figure is five times the amount currently generated (approx. RUB 67 billion). The plan is for Russian agricultural machinery manufacturers and foreign producers operating in Russia to market more than 65,000 tractors and 9,000 grain and forrage harvesters in the year 2020. A key aspect of this strategy concerns agricultural machinery exports, which is to undergo a ninefold increase from its present RUB 5 billion that will take it to RUB 46 billion. Furthermore, comparative trials with foreign machinery will continue in a bid to make Russian agricultural machinery producers more competitive. Nearly 10,000 highly skilled professionals are to be recruited to the agricultural machinery sector, raising its HR capacity to 81,800. Nothing has been said about how these measures are to be financed. rus/3 Nov. 2011 Source: Reporting of Committee on Eastern European Economic Relations from 3.11.2011 ? Keeping prices for fuel and lubricants low for farmers The President of the Russian Federation, Dmitry Medvedev, announced that Russia will continue to support its farmers even after accession to the WTO. Speaking at a video conference with regional branches of the ‘United Russia’ party on 21 October, Medvedev said that lower prices for fuels and lubricants for the agricultural sector will stay in place, irrespective of the Russian Federation’s accession to the World Trade Organisation (WTO). Medvedev promised that the decision to support the agricultural sector and to subsidise fuel and lubricants would not be revoked. ‘This was not the easiest of decisions for the government to make, but we will uphold it, because we want to give our farmers a sense of security and ensure they are not dependent on fluctuations in energy prices,’ said Medvedev before going on to explain that he believed this to be ‘an absolutely honest move, because every government around the world tries to support its own country. And we have to do so too, irrespective of WTO membership and other international obligations. Indeed, it is our duty.’ Source: Interfax Selskoe khozyaystvo i prodovolstvie, No. 43 of 26 Oct. 2011 zurück zur Titelseite back to front page Newsletter No. 5 November 2011 Page 11 ?Government guarantees support for agricultural sector Russia’s Prime Minister, Vladimir Putin, emphasized that the support packages for virtually all agricultural sectors will stay as they are. Talking at a video conference with regional branches of the ‘United Russia’ party on 21 October, Putin stated that some RUB 170 billion have been earmarked for next year in the national budget. In 2011, the federal budget provided 140 billion in agricultural support. Putin stated that another 30 billion has been added, taking the overall volume of support scheduled for next year up to 170 billion. ‘Support will be kept up for virtually all sectors – from subsidies for artificial fertilisers to subsidised credit and agricultural leasing products,’ said Putin. The same applies to financial assistance and subsidies for fuels and lubricants. Prime Minister Putin went on to say that last year 2.2 million tonnes of diesel and petrol had been reserved to ensure targets were met. This year the figure has risen to 2.5 million tonnes. In this context, Putin stressed that the agricultural sector had however only used 2.4 million tonnes of fuel and lubricants. He went on to say that, thanks to the ongoing low prices for fuel and lubricants, farmers had saved RUB 5.5 billion in 2010 while RUB 17 billion have already been saved this year. Source: Interfax Selskoe khozyaystvo i prodovolstvie, No. 43 of 26 Oct 2011 ?More than RUB 100 billion in government assistance As part of the government programme to fund agricultural sector development, Russian agricultural producers have received more than RUB 100 billion this year (status as at 21 October). As the press office of the Russian Federation’s Ministry of Agriculture stated, some RUB 76.4 billion were earmarked for the country’s farmers in the federal budget and RUB 25.8 billion in the regional budget. In all, the Ministry of Agriculture has transferred RUB 99.8 billion from federal funds to regional budgets. This figure corresponds to around 91.1 % of the annual spending limit. Harnessing funds from the state budget was discussed at a meeting convened by Russia’s Agriculture Minister, Elena Skrynnik, who noted that financial resources should be made available in the given regions in good time, in a targeted manner and across the board. ‘The federal budget resources should be used in full,’ said Ms Skrynnik. Source: Interfax Selskoe khozyaystvo i prodovolstvie, No. 43 of 26 Oct. 2011 ?Latest news from the Russian agricultural sector zurück zur Titelseite back to front page Newsletter No. 5 November 2011 Page 12 ? Government not yet planning any intervention buying The government of the Russian Federation does not yet have any plans for grain intervention, although it is planning a new purchasing model involving grain deposits with a re-purchasing option said Russia’s Prime Minister Vladimir Putin. ‘We’re not planning to roll out any grain intervention measures, but we will put in place a deposit system with a re-purchasing option. We will pay money for grain deposits and if farmers find a way of selling the grain themselves and want to redeem their deposit, they can simply pay the money back,’ said Vladimir Putin in Stavropol at a meeting with farmers. ‘We’ll see what impact this measure has,’ said Putin, reminding those present that up till now the government had regulated prices on the domestic market exclusively through grain Source: Interfax Selskoe khozyaystvo i prodovolstvie, No. 43 of 26 Oct. 2011 ? Russia against importing raw sugar in 2011 and 2012 This season’s huge sugar beet harvest means that, contrary to custom, Russia will most likely not be importing any raw sugar, announced Russia’s First Deputy Prime Minister Viktor Zubkov. According to the trade organisation SojuzRosSakhar, Russia is facing a record harvest of some 40 million tonnes. In comparison with the previous year, production has thus gone up by 80 %. The government press office in Moscow stated that representatives of the sugar industry attending a meeting convened by Zubkov had given their assurance that domestic production was sufficient to meet factory needs. SojuzRosSakha estimates that around 200,000 tonnes will even be exported to several Central Asian Republics, as well as to Italy and Montenegro. Source: www.agrarheute.com ?Latest news from the Russian agricultural sector Contact DLG International GmbH Project management Exhibitor service Exhibitor service Dr. Olga Hunger Ghenadie Mindru Angelina Laas Tel.: +49 69 247 88 271 Tel.: +49 69 247 88 278 Tel.: +49 69 247 88 273 Fax: +49 69 247 88 138 E-Mail: Foliennummer 1 Foliennummer 2 Foliennummer 3 Foliennummer 4 Foliennummer 5 Foliennummer 6 Foliennummer 7 Foliennummer 8 Foliennummer 9 Foliennummer 10 Foliennummer 11 Foliennummer 12