The demand for agricultural machinery in the Russian Federation exceeded the supply

Sales of agricultural machinery have grown significantly over the current year. At the same time, further growth is due not to a lack of demand, but to a lack of supply.

According to the profile association Rosspetsmash, in 2021, from January to September, sales of tractors in Russia increased by 17.8%, and harvesters — by as much as 31% compared to the same period last year.

And this growth could not be prevented by a pandemic, nor export duties, nor an increase in the cost of agricultural products.

The reasons for such a significant increase in demand are cited as follows:

Last year, due to the rise in world prices, many agricultural producers managed to make good profits. A significant part of this profit was used to expand and renew its agricultural machinery fleet.

For Russian manufacturers, the situation with a shortage of equipment is quite acute. According to the general director of CNH Industrial in Russia and Belarus Mikhail Murakhovsky, farmers need at least 40% more equipment than they currently have.

The state of the available technology also raises questions. It is high time to write off about a third of the cars: they are old, poor technical condition, they are outdated physically and morally.

The state actively supports manufacturers with subsidies, increasingly expanding the list of companies that can count on them.

Almost every extra ruble that they manage to receive from the sale of products or in the form of assistance from the state, most agricultural producers tend to spend on technology. Indeed, without updating it, it will be extremely difficult to maintain its leadership in the market.

Why are manufacturers of equipment not keeping pace with the growing demand?


One of the main problems is the shortage of components, which has arisen due to supply chain disruptions caused in turn by the pandemic .

“The problem with the supply of components is one of the most serious. The deficit is noted both on the local Russian and on the global market. Trade is more limited by supply than by demand, ”says Tatyana Fadeeva, AGCO-RM representative.

She also notes that her company, like most others, was not ready for a sharp rise in demand, but is doing everything possible to get the most out of the situation.

Russian equipment manufacturers are often in a better position than foreign ones, because they are less dependent on supplies from abroad.

Due to the prevailing conditions, many enterprises decided to take a sharp step forward.

For example, Rostselmash is going to build another plant in the Rostov region, which will be able to produce up to 5 thousand units of equipment per year. It is being built at a very fast pace in order to earn money by 2023.

The main thing here is that by that moment the demand has not dried up.

According to experts, there is such a risk, because agricultural producers in the next year may receive less profit if the cost of production and export duties do not turn downward.