18 august 2011

First Deputy Prime Minister Viktor Zubkov holds a meeting of the working group on technical and technological modernisation of agriculture and agricultural machine engineering

Participants:

Officials at the meeting discussed the draft Development Strategy for Agricultural Machine Engineering until 2020 and a plan for its implementation for the mid-term until 2013.

“The strategy envisages that Russia’s agricultural machine engineering market will grow by more than 400% by 2020 – from 67 to 350 billion roubles,” First Deputy Prime Minister Viktor Zubkov said. “A significant increase from 36 to 245 billion roubles is expected in the agricultural machine engineering industry’s output. The sales of Russian and localised tractors are expected to reach more than 65,000 per year, and the sales of grain and fodder harvesting machines are expected to reach 9,000 per year.”

Developing these products’ exports is becoming ever more important, he added.

“If implemented effectively, the strategy will help boost these exports by more than 800% from five to 46 billion roubles,” Zubkov said.

The strategy will also help increase the industry’s annual output per worker to 3.9 million roubles, or a 276% increase.

The number of workers employed in the sector is expected to grow to 81,800 by 2020. In 2010, this number stood at 72,700.

The industry’s average wage will reach 56,000 roubles by 2020, three times its present level. Government tax revenues from the industry are expected to reach 181.8 billion roubles, with social charges reaching 100 billion roubles.

The strategy has been devised and agreed upon by a working group that includes representatives from the Industry and Trade Ministry, the Rusagromash Association of Agricultural Machinery Manufacturers, and the Rosagroleasing agricultural leasing company.

The document outlines the basic principles and development areas for Russian agricultural machine engineering to ensure its competitiveness in the mid- and long-term.

The strategy’s top priorities are to incentivise the demand for agricultural machines, boost machine exports, facilitate the modernisation of machine manufacturing, make the industry more competitive, and increase the level of qualified staff availability for the agro-industrial and agricultural machine engineering sectors.

Following the discussion, Zubkov instructed the Industry and Trade Ministry to finalise and submit the strategy to the government by September 15 alongside an implementation plan for the mid-term.

The first deputy prime minister emphasised the need to thoroughly harmonise the draft strategy with the country’s long-term socio-economic development programmes, including industry-specific programmes. He also said that strategies should be elaborated in greater detail on the modernisation of agricultural machine engineering facilities and support for machine exports.

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In addition, the meeting participants noted the efficient implementation of measures to maintain and develop machine testing stations. Four foreign and one Russian combine harvesters underwent comparative tests in July. The Russian machines outperformed their foreign counterparts in most of the parameters.

Zubkov said that the testing results should be sent to agricultural producers and similar comparative tests should be held and their results published. This will help provide quality and cost-efficient machinery for local agricultural producers, he said, and incentivise local manufacturers to improve their machines.

Meanwhile, foreign manufacturers will be incentivised to develop their production in Russia and adapt their machines to local conditions in the country.