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UDC 338.123.7
DIRECTIONS OF DEVELOPMENT OF THE RUSSIAN MARKET OF FODDER HARVESTING MACHINERY
Poluhin A.A., Associate Professor Orel State Agrarian University, Orel City, Russia
Lisyutchenko N.N., Post-graduate student All-Russian Research Institute Agricultural Economics, Moscow, Russia
E-mail: [email protected]
ABSTRACT
Article represents the problems of forming fodder machinery fleet of the agricultural organizations of Russian Federation. Structural analysis of acquisition and use of fodder machinery fleet by agricultural enterprises has been conducted. Competitive advantages of domestic and imported equipment on the Russian market of forage equipment have been substantiated. The directions of technical modernization of fodder production under the State program of agriculture development and regulation of the markets of agricultural products, raw materials and food for 2013-2020, taking into account the limitations of the WTO, have been suggested.
KEY WORDS
Economy; Agriculture; Fodder harvesting machinery; Technical equipment; Reproduction; Agricultural machinery market; Efficiency.
Livestock development is impossible without providing with feeds because the share of feed costs in the structure of material costs in Russian agricultural organizations on average represents more than 36%, of which only half is self-produced feeds. Assessing the share of expenditure on producing own feeds in the structure of production costs, it can be pointed that in dairy cattle breeding, they represent more than 27%, while fattening cattle approximately 39%. The most time-consuming and energy-intensive stage of fodder production is forage crops harvesting. However, the acquisition of modern forage harvesting machinery requires high capital costs.
Based on official statistics, we can conclude that the equipment of the agricultural organizations, on average in Russia, by fodder harvesting machinery is quantitatively lowers. However, in our opinion, reducing the number of machinery is a natural process associated with changes in productivity of modern technique. The provision dynamics of agrarian organizations with major equipment for feed production, during the implementation of the State program of agriculture development and regulation of the markets of agricultural products, raw materials and food for 2013-2020, is presented in table 1.
Table 1 - Provision of agricultural organizations with fodder harvesting machinery
(on the beginning of year) [5, 7]
Indices Years 2013 to 2008, %
2008 2009 2010 2011 2012 2013
Forage harvesters, thousand pieces 26.6 24 21.4 20 18.9 17.6 66.17
Mowers, thousand pieces 53.8 49.2 44.1 41.3 39.3 37.5 69.70
Tractor rakes, thousand pieces 24.9 22.6 20.4 19.2 18.5 17.6 70.68
Balers, thousand pieces 28.7 27.2 24.7 24.1 24.2 23.7 82.58
Mowers, thousand pieces 53.8 49.2 44.1 41.3 39.3 37.5 69.70
Arable land fall on one tractor, ha 197 210 226 236 247 258 131.0
Falls on 100 tractors, pcs.:
Mowers 13 14 13 13 13 14 107.69
Rakes 6 6 6 6 6 6 100.00
According to the data presented in Table 1, the negative dynamics of presence the forage harvesting machinery can be noted. It should be noted that the most expensive fodder harvesting machinery are forage harvesters, their presence in quantitative expression has decreased, during the implementation of the State Program, on 33.83 %, taking into account the implementation of mechanisms of state support. At the same time, we note that the decrease in trailed and attached implements is proportional to decreasing in the number of tractors, as evidenced by indicators describing the dynamics of tractors armament by equipment.
The reproduction of technical base of agricultural enterprises is strongly influenced by established market of agricultural machinery. One of the key indices, affecting the market of agricultural machinery, is the amount of domestic production. Quantitative and qualitative characteristics of domestic factories largely formed conditions of machinery market in the country. For 2011, 1218 Russian forage harvesters were sold to consumers, which is 34.1% more than in 2010. Reason for the growth of the market of equipment produced in Russia, is improving its quality against the background of relative affordability [8].
Provision and the pace of fleet renewal forage harvesters are indicative index of state support measures for agriculture. It is connected with the fact that its use in fodder production indicates application of less demanding technologies. Table 2 presents the data describing the acquisition and disposition of forage harvesters by agricultural producers of the Russian Federation.
Table 2 - Renewal indices of forage harvesters fleet [5]
Indices Years
2007 2008 2009 2010 2011 2012
Purchased new forage harvesters, pcs. 1567 1709 750 819 1207 831
Update coefficient of forage harvesters, % 5.9 7.1 3.5 4.1 6.4 4.7
Forage harvesters written off on deterioration, pcs. 3148 2772 2051 1701 1618 1529
Coefficient of forage harvesters elimination, % 10.9 10.9 8.9 8.1 8.3 8.3
According to Table 2, it can be concluded that every year more vehicles written off on deterioration than acquired. The coefficient of forage harvesters fleet renewal ranges from 3.5 in 2009 to 7.1 in 2008. Decline in volume of fleet renewal was observed in 2009, the cause of which was the economic crisis in 2008, which made loans unaffordable, in 2010 the cause of low fleet renewal was the drought, which has significantly reduced the efficiency of forage production. 2012 was the year of Russia's entry into the WTO, which had a significant impact on the mechanisms of state support for the modernization of machinery and tractors. Demand for forage harvesters is formed solely because of the level of provision of the agricultural organizations with financial resources or level of credit availability. At the same time, important providing criteria of fodder production by machinery, especially in the development of personal subsidiary manufactures and peasant farmers, is the availability of technology in the machine-technological stations that represent it in the lease, or provide cleaning services for forage crops.
At once we note that the share of technique, used to provide harvesting services, is less than 1% of the fleet, which means underdevelopment of the market.
An important condition for harvesting high quality forage for silage by forage harvesters, particularly corn, is observance of optimal agronomic terms of harvesting.
By the method of aggregating, forage harvesters divided into mounted, semi-mounted, trailed and self-propelled [17].
First harvesters with continuous process operations for producing silage appeared in the late 30's and early 40-ies in the United States. Its development was accompanied by the intensive improvement of schemes, mechanisms and removable devices, ensuring the reliable performance of machines, versatility and ease of operation.
As a result, the machines for complex action were created, which operating in the one production process all the major labor-intensive operations for silage production. They were the prototypes of modern forage harvesters.
First trailed forage harvester SK-1.2 with the original design and construction in our country was established in 1947. Unlike existing foreign constructs it has a hopper provided for collecting the crushed mass, which has reduced the number of vehicles for the transportation of mass. Experience of their use showed that productivity performance and some design parameters of these machines do not satisfy the conditions of agriculture in our country, so they not found wide application.
In 1953 created a high-performance harvester SK-2.6 with uniflow scheme, universal header and multisection blade drum. Harvester surpassed most foreign high performance forage harvesters in performance.
On the basis of the SK-2.6 the following modifications have been developed: KS-2.6, KS-1.8 "Whirlwind", UKSK-2.6, KSPS-1.8. These harvesters aggregated with tractors MTZ-80, MTZ-82, T-125 and DT-150 [18].
Currently, the most widespread are trailed and self-propelled harvesters. This is explained by the economic benefits of these harvesters [19].
The ratio between self-propelled and trailed fodder harvesters, sold in 2012 in Russia, amounted to 64% for self-propelled and 36% for trailed fodder harvesters.
Modern market of forage harvesting machinery in Russia presented a wide range of types of equipment and manufacturers.
The volume of imports of fodder harvesters in 2012 increased slightly compared to the year 2011. At the same time, we point out that Russian factories produce fodder harvesters models as Russian and foreign brands. Tables 3-6 presents brief characteristics of the key suppliers of fodder equipment in the Russian market.
Table 3 - Key market characteristics of KZ «Rostselmash» as a key supplier of fodder
equipment in the Russian market
Characteristics of the company Model series Market characteristics
Rostselmash - a group of companies consisting of 12 companies with assembly plants located in Russia, USA, Canada, Ukraine and Kazakhstan. [10] In Russia sold 100% of equipment produced in Russia. On the market there are two brands of self-propelled fodder harvesters (RSM 1401, DON 680M), 1 mark of trailed fodder harvesters (Sterh 2000), 1 mark of windrower tractor (ES1), 2 brand of trailed mowers (Berkut 3200, Strige 2100), 2 brand of balers (rolled Pelican 1200, square baler Tukan 1600) and other fodder equipment. Rostselmash occupies about 35% of forage harvesting machinery market in Russia. Competitive advantages of the product: a relatively low price, relative reliability, maintainability in terms of the agricultural enterprise, availability of service and spare parts, protectionist measures in the framework of state support in the form of a 15% discount to the price provided for in the framework of the State program of agriculture development and regulation of the markets of agricultural products, raw materials and food for 2013 -2020.
KZ «Rostselmash» introduces in manufacture modern technologies that allows going to a high competitive level, not only in the lower price segment, but also occupying market niches in the upper price range, where key positions takes the import machinery. It should be noted that some Russian factories producing foddering machinery: "Kormmash" (more than 10% of the market), PTZ (just over 1% of the market), JSC «Zarem» (about 3.5% of the market) and some others, occupying small share on the market, such as JV «Kirovets Land-Tech», JSC «Krasnoyarskiy zavod combainov», Poettinger and JF-Stoll.
Significant market share takes ZAO SP "Bryanskselmash" producing Belarusian equipment in Russia.
Should be noted the affordability of Russian and Belarusian harvesters, as well as the adaptability of this technique to the Russian conditions of production [8].
Implementation of protectionist policy in the framework of the State program of agriculture development and regulation of the markets of agricultural products, raw materials and food for 2008-2012, stimulated foreign companies offering agricultural equipment to organize assembly production in Russia. For example, in 2008 the company JohnDeer
occupied about 10% of the Russian market of harvesting machinery, but protective duties on imported vehicles reduced the share of the market to 3%. Having created production in Russia, company solved problems with the cost of customs duties and the organization of quality and affordable service, reduce transportation costs and thereby beginning to recover market share.
Table 4 - Key market characteristics of ZAO SP «Bryanskselmash» as a key supplier of fodder equipment in the Russian market
Characteristics of the company Model series Market characteristics
The main purpose of the ZAO SP "Bryanskselmash" is approximation production of fodder harvesters to agricultural producers that allows to achieve: reducing transport costs, streamlining procurement procedures, exceptions for agricultural complex customs procedures, improve warranty and service [11]. The factory assembles machinery of Belarusian factory PO "GOMSELMASH" with a relatively low degree of localization of production in Russia. 3 brands of self-propelled fodder harvesters capacity from 235 to 450 hp (KVK 800 "Palesse FS80», KVK 600 "Palesse FS60», «K-G 6") and 1 brand of trailed fodder harvesters (KPD-300 "Palesse FT40») produced. On the market occupies more than 40%. Competitive advantages of technique produced at the plant ZAO SP "Bryanskselmash": relatively low price, wide dealer network, reliability, availability of service and spare parts, protectionist measures implemented by Belarus in the Russian Federation (contract with Russian financial institutions to refund part of the interest on loans for buying equipment).
Table 5 - Main market characteristics of key foreign suppliers of fodder equipment
in the Russian market
Characteristics of the company Model series Market characteristics
JohnDeere company produces almost the entire range of agricultural machinery. Has its own production in Russia. A wide range of forage harvesters 7050 series (6 models) with power from 380 hp to 812 hp. Harvesting machinery of earlier series also presented on the market. Wide dealer network, quality and affordable service, high quality equipment (reliability). The firm reputation for producer of high quality technique.
Claas company operating in Russia since 1992. On the territory of the Russian Federation opened more than 40 dealerships [13]. Forage harvesters (Jaguar 980-930, Jaguar 900-830, Jaguar 810), balers (Quadrant 3400/3300/3200, Quadrant 2200/2100/1150, Rollant 455/454/Uniwrap, Rollant, Variant), disc mower Disco, drum mowers Corto, tedder Volto, swather Liner, truck loader Quantum. Regular release of new products, competitive price-performance ratio, expensive equipment. Model line of fodder equipment in Russia is about 20 items. Fodder harvesting machinery of company is well known for a long time for the Russian agricultural producers. Established service. Market share of 8%.
Kuhn company opened its first representative office in Russia in 2008. Currently, in all federal districts dealerships are organized: in the north-west - 3 dealers, central - 21 dealers, on the Volga - 13 dealers, south - 9 dealers, Far Eastern - 1 dealer, in Siberia - 3 dealers, Ural - 4 dealers. Trailed forage harvesters (single and double row trailed harvesters and four-row mounted harvesters), balers (bales, roller), disc mowers, Mowers - crusher, Tedders, Rakes. [15] Specialization on mounted and trailed equipment. Aggressive marketing strategy in the market. Attractive price/performance ratio. Lineup around 40 titles of fodder equipment. Good reputation in the world market. Market share of 4% [9].
The German company Krone specializes on the production fodder equipment. Dealer network in Russia represented by 26 organizations. Forage harvesters (BigX500, 700,850, 1100, EasyCollect, EasyFlow, XDisc), self-propelled mower (BigM-500), 15 brands of balers, including three large, wide range of rakes, turners, disc mowers. A wide range of model series. High power forage harvesters. Good reputation and organized service. Market share of just over 1 %.
German company Claas the largest importer of forage harvesting machinery in Russia. So according to the 2007, market share of the company was 10.5% [9], in 2010 - 5% [14], in 2011 - 7.15% [4], and in 2012 the share increased to 8% [9].
Another niche market of forage harvesting machinery in Russia occupied by the Kuhn company. This company is for a long time proven as market leader of forage equipment in
the world. On the Russian market, the company appeared in 2008, but already today occupies a significant share of the market.
One of the fastest mastering forage harvesting machinery market is the company Krone. This manufacturer sells forage harvesters, mowers, balers, rakes, tedders and other forage equipment. All manufacturers conquer the Russian market by opening regional official dealerships, which remove some of the issues associated with the provision of spare parts, maintenance and repair. Moreover, both the Russian and imported machinery has several competitive advantages in market penetration. For example, the main competitive advantages of domestic equipment are relatively low price, availability of service, the ability to self-repair, the protectionist policies of the state; competitive advantages of equipment manufactured in foreign countries - reliability, performance. In this regard, to hold the market, Russian producers, using conditions of state support, should review its pricing policy, thus strengthening competitive advantages. Competitive advantages of imported equipment, amid its high cost when importing from abroad (including due to customs barriers, which in connection with the entry of Russia into the WTO greatly reduced), force foreign manufacturers to establish production of its equipment in Russia. Today the leaders in livestock significantly upgraded technical and technological base of the industry, and it gave the opportunity to a highly profitable production. On the market today livestock machinery has high bandwidth, so the farm with few livestock animals will not use the resource of this technique fully, which will make the purchase and use of it economically unfeasible. One of the main problems of effective use of technical base for animal husbandry is incomplete loading of existing production facilities and areas [8].
Thus, in terms of Russia's accession to the WTO, threat for the Russian market of agricultural machinery is dependence on foreign manufacturers, but the production of imported machinery in Russia several nullify this problem. Necessary to avoid entry into the market of the old imported machinery, which economically viable resource is over. Significant contribution to the development of production and economic potential of agro-industrial complex and to solution of social problems of the village is called to make the State program of agriculture development and regulation of the markets of agricultural products, raw materials and food for 2013 - 2020, approved by the Government of the Russian Federation of July 14, 2012 № 717. At the same time, in connection with the entry of Russia into the WTO, from areas of support to agricultural producers excluded subsidizing investment loans used for the purchase of equipment, as a measure included in the "amber box". For example, the target indicators for the implementation of new agricultural machinery for agricultural producers in 2013 constitute foragers - 255 units, and for the entire period of the program 1.3 thousand units of forage harvesters [8]. These criteria are in dissonance with the indicators laid down in the Strategy for the Development of Agricultural Engineering of Russia until 2020, where it was envisaged that the Russian and localized manufacturers of forage harvesting machinery in 2020 will come to sales of forage harvesters more than 9 thousand pieces per year [3].
Thus, Russia's accession to the WTO could significantly change the market structure of forage equipment. Changing mechanisms of the state support of Russian manufacturers can give a competitive advantage to foreign suppliers, especially for those who have established their assembly equipment on the territory of the Russian Federation. From the standpoint of agricultural producers, dependence on foreign suppliers of spare parts may arise, as the new imported forage equipment is very attractive in terms of value for money. Livestock development is a priority task for the state, thereby increasing the importance of ensuring fodder production with quality appliances with optimal technical and economic characteristics and without compromising the country's food security.
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