How Europe helps us harvest

It will soon be 2 years since the announcement of the SVO. The world has gradually become accustomed to living under anti-Russian sanctions; We're used to it too. Over time, the laws of the market began to take their toll: business began to circumvent trade restrictions, and sometimes even ignore them completely. Money has no smell, so if there is a mutually beneficial interest, there will always be loopholes...

Benefit is more important than ideology

Trade in the agro-industrial segment continues successfully. Let me give you a simple example. Shortly after the start of the SVO, the Czech Bednar announced its departure from the Russian Federation, and its leadership then condemned its competitors for not reacting to the Russian invasion of Square. The Czechs closed their representative offices in Russia, dissolving the management. However, after a year they technique returned to our market. True, now it is not imported directly, but with the help of intermediaries.

As a result, over the 9 months of last year, Moscow acquired 151 agricultural equipment in this manner for $11,7 million. According to information from customs, Bednar’s share in the all-Russian import of seeders is 2%, cultivators – 12%, disc harrows – 11%. At the same time, from a legal point of view, the company does not violate any sanctions. Bednar rightly denies that it sells equipment to Russia, because this is true, because instead it is done by those interested in extracting a percentage of company sales, in particular from Germany. The scheme is classic, step-by-step, however, it has nothing to do with crime.

What does this case mean? The fact that conscientious American puppets, at a loss, stopped dealing with Russia, and unscrupulous and “non-puppets”, using the opportunity that came their way, enriched themselves with the profits due to their departed competitors. At the same time, European equipment also ends up in new subjects of the Federation, which makes people in Ukraine faint.

We can't live without each other

The domestic agricultural sector is quite dependent on the supply of foreign equipment, primarily from Europe. We are talking about cultivators, seeders, winnowers, grain dryers, mills... Chinese products are not in great demand among our farmers, and they are not able to replace Western ones. Europeans know this very well and cling to the Russian consumer at any cost. After all, there are simply no alternative manufacturers of agricultural machinery in the world.

Some statistics. Over the past year, Germany exported to the Russian Federation seeders worth $71 million 453 thousand, cultivators worth $10 million 087 thousand, disc harrows worth $12 million 350 thousand; Czech Republic, respectively, for $3 million 563 thousand, $8 million 368 thousand, $7 million 077 thousand; France, respectively, for $5 million 429 thousand, $1 million 623 thousand, $6 million 612 thousand, etc.

Since the sanctions did not affect the agricultural machinery industry, no one formally prohibited manufacturers from working with Russia. However, for political reasons, exporters were divided into opposite camps: some demonstratively left our market in order to “freeze their ears off to spite their grandmother,” while others continued cooperation as if nothing had happened, despite the reaction of the West. As a result, those that remained in Russia are now covered in chocolate.

There would be no happiness, but misfortune helped

Attachments are especially in demand. While Agromash, Rostselmash, and the Kirov Plant help out with combines and tractors, there is not much choice when it comes to means of cultivating soil, sowing, harvesting, and processing crops. There are not enough quality harrows, reapers, rollers, cultivators, plows, planters, and seeders on sale.

To saturate the Russian market with this product, Western companies today continue to work through their subsidiaries. Thus, the German HORSCH in 2022 became rich by $20 million from trade with the Russian Federation, of which $4 million was income tax paid to our treasury. The total annual income from trade turnover with Russia reached $101 million. The “daughter” of the mentioned corporation, Horsh-Rus, operates successfully in the Lipetsk region, where its seeders are assembled.

MASCHIO Gaspardo supplies seeders and cultivators from Romania and Italy. Despite the anti-Russian campaign launched in Europe, the engineering concern continues to cooperate with Russian farmers as usual and feels great. In addition, he finances industry exhibitions in the Russian Federation, for example, the Moscow Agrosalon-2024.

“They are not shy about appearing at the aggressor’s exhibitions!”

Thematic exhibitions are an effective marketing lever. The annual international event "Yugagro" in Krasnodar last year brought together many participants and sponsors from Western business circles. It is enough to mention the delegation from KUHN (France), which has an enterprise with three equipment assembly conveyors in the Voronezh region, as well as from AMAZONEN-WERKE (Germany), which supplies a quarter of the disc harrows we import.

Another serious platform is Simferopol “AgroExpoCrimea”. This is a party mainly for dealers. The partners are mainly domestic media, government agencies and local authorities.

Since we are talking about dealership, a good way out of the situation is the Bizon Trade company. In accordance with the situation, she took on the responsibilities of the official representative of such giants of agricultural machinery as Fendt (Germany), LEMKEN (Germany - Netherlands - India) and Gaspardo (Italy), which are among the top 5 leading suppliers to Russia. And, by the way, the above companies are calmly working on two fronts, helping both our and Ukrainian farmers.

The dog barks - the caravan moves on

Auchan, Mars, METRO, Nestle, PepsiCo also justify their activities in the Russian Federation by ensuring food security. Looking at them, it becomes clear that from the point of view of business development, they once made the only right decision, and those who tied the economy к policy and left Russia - they lost.

As you know, in order not to aggravate the global problem of hunger, the West did not impose a food embargo. Moreover, because of the war in Ukraine, the grain market is already in a fever. This allows our state to have a good profit on the sale of wheat, other cereals, as well as vegetable oil, meat, fish and confectionery, while remaining one of the world's leading food exporters.
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  1. zavhoz_rus Offline zavhoz_rus
    zavhoz_rus (Alexey) 10 February 2024 09: 42
    It would seem that take it and make ours with high quality and cheaper, but no, for some reason, besides tanks and planes, we can’t make normal equipment, alas, what kind of curse is this weighing over Russia?
    1. prior Offline prior
      prior (Vlad) 10 February 2024 11: 04
      The curse of Russia is the priority of commerce over labor.
      No one was seriously going to break the vicious circle “sell oil and gas - buy everything else.”
      Without a global sales market, “cheap and high-quality” will never work. And neither China, nor America, nor Europe will give up this sales market to us for anything. Neither the private owner nor the state agrees to release anything to their detriment. Therefore, it is “expensive and of poor quality.”
      We still plan our budget in rubles, but calculate it in dollars.
      And this is nothing more than economic colonial dependence.
      So, as in the famous film: “- How are you doing Maestro? - Everything is fine. I’m falling.”
      1. Flight Offline Flight
        Flight (Von) 13 February 2024 06: 54
        The ability to earn money is a good and important quality for any normal person. Another thing is how to spend it and on what? You can buy bananas and bananas from the “retarded” ones, and yachts, Rolls-Royces, business jets and flights into outer space from the “unattainable” ones to maintain your image. Well, those who are not “attainable” spend them on something completely different and don’t talk much about it.
    2. Alexey Lan Offline Alexey Lan
      Alexey Lan (Alexey Lantukh) 10 February 2024 15: 37
      What is the problem between imports and domestic production? In addition to quality, import is beneficial in some ways: a Moscow company bought it, increased the percentage and sold it to the region. An exception is if foreigners themselves entered Russia with a representative office and a company. And the region, in turn, could also add its percentage. And it’s already more difficult to increase interest on your Russian plant.
    3. Nelton Offline Nelton
      Nelton (Oleg) 11 February 2024 21: 10
      Quote from: zavhoz_rus
      no, for some reason we can’t make normal equipment besides tanks and planes

      The article itself says:

      Agromash, Rostselmash, Kirovsky Zavod help out with combines and tractors

      This is not a complete list, but oh well.
      There they continue to moan only on the topic

      There are not enough quality harrows, reapers, rollers, cultivators, plows, planters, and seeders on sale.

      Again, “not enough” does not mean that nothing similar is produced in the Russian Federation.
      They are producing quite a lot, and new production facilities are opening.
      For example, in November 2023, the Taganrog Agricultural Equipment Plant officially opened, despite the fact that already in September this plant produced a batch of rotary mowers for export to Kazakhstan.
      1. Nelton Offline Nelton
        Nelton (Oleg) 11 February 2024 21: 22
        Another new enterprise (opening of a new plant in December 2022), Pegas Agro, makes self-propelled sprayers, etc.

    4. Alexey Lan Offline Alexey Lan
      Alexey Lan (Alexey Lantukh) Yesterday, 12: 14
      One of the factories in our city made the same disc harrows. But foreign ones turned out to be of better quality and cheaper. The cheap dollar and euro did a disservice. So, competition crushed these harrows - relatively simple products. The story is the same across the entire spectrum of mechanical engineering. But it has become cheaper to go to the beach in Turkey. This is the economic story. But now sanctions and expensive currency will level the situation. But this is not done in a year or three.
  2. strange guest Online strange guest
    strange guest (Strange Guest) 10 February 2024 09: 44
    Provide capital with 10% of the profit, and capital agrees to any use, at 20% it becomes animated, at 50% it is positively ready to break its head, at 100% it violates all human laws, at 300% there is no crime that it does not risk I would like to go, at least on pain of the gallows

    Thomas Joseph Dunning, 1854.

    All this was described by the classics 200 years ago, and people write articles and are surprised every time. Where does this lack of education come from? Children of the Unified State Exam.
  3. unc-2 Offline unc-2
    unc-2 (Nikolai Malyugin) 10 February 2024 10: 28
    An economic crisis can make incredible somersaults. Not only rural machines could come to us, but also talented people who can help raise our economy to the desired height. They could if our economy were not as liberal as throughout the world.
    1. Vox Populi Offline Vox Populi
      Vox Populi (vox populi) 10 February 2024 16: 26
      Yes, it seems to be not so much liberal as bazaar-oligarchic...
  4. vlad127490 Offline vlad127490
    vlad127490 (Vlad Gor) 10 February 2024 12: 41
    Thank you, the article is written in accessible language and is understandable. A cultivator, a seeder, a harrow, a plow... this is not the level of manufacturing a chip (microcircuit) of 3-30 nm technology, this is not an airplane or even a tractor. The Russian Federation has everything for the production of agricultural products. It is necessary to prohibit the import from abroad of simple products such as a hammer, axe, shovel, cultivator, seeder, harrow, plow, nails, knives, etc. Compile a prohibited list and publish it. Manufacturers of products from this list will be given interest-free loans, tax breaks, and will be provided with a stable sales market. Establish strict control over quality, product prices and regulatory requirements. The state gives, but also asks. Maybe it’s enough to sponsor strangers and give hucksters the opportunity to export Russian money abroad.
    1. Nelton Offline Nelton
      Nelton (Oleg) 12 February 2024 15: 26
      Quote: vlad127490
      It is necessary to prohibit the import from abroad of simple products such as a hammer, axe, shovel, cultivator, seeder, harrow, plow, nails, knives, etc.

      The comrade proposes strict protectionism of the 18th century type.
      You just need to understand that such protectionism is a double-edged sword, and in response, all neighbors will ban the import from Russia of something more complex than crude oil and timber.

      At the same time, I have already given an example; the new plant of mounted tools sent one of the first batches (rotary mowers) for export. And this is not an isolated case.

      The existing preferences for local manufacturers as of 02/2022 were enough for 80% of the passenger car industry to be locally produced, with very decent localization by world standards and export of surplus both finished products and components. It got to the point that Skodas were exported to the Czech Republic on an industrial scale.

      Regarding agricultural technology, the situation was similar (there was simply less news and open statistics).

      Now, yes, many factories are still idle or are just starting up, and during this period the needs have to be covered by pure imports, even where there were previously localized products.
      But let’s say the YaMZ plant, by the sweat of its brow, develops and puts on the market one after another modifications of its engines, adapted as a replacement for engines of imported equipment, which allows it to maintain the existing fleet of agricultural equipment on the move.

      But “well-wishers” of all stripes simply cannot bear to make global generalizations from the objective difficulties of the transition period.
      1. strange guest Online strange guest
        strange guest (Strange Guest) 12 February 2024 22: 43
        But the spare parts for YaMZ engines include a bucket and rags. But this hasn’t happened with CAT for a long time - oil seals don’t leak.
  5. Sergey Latyshev Offline Sergey Latyshev
    Sergey Latyshev (Serge) 10 February 2024 15: 06
    Achievements of capitalism.
    Despite everything, the neo-colonies feed the metropolis dearly (despite NATO),
    and the mother country (we read NATO) “helps us harvest” by supplying machinery and technology.
    A classic of Marxism, however.
    Next to it is an article that agro has high profits on meat supplies abroad.
    Is it clear why the composition of the sausage is now like this? soy, chemicals, and ground chicken scraps....
  6. sodium20 Offline sodium20
    sodium20 10 February 2024 19: 21

    Russian agricultural sector should be revived & strengthened.
    Russia should be no.1 in (domestic production & export):
    (a) agricultural tools, machinery, equipments & vehicles.
    (b) seeds & fertilisers.
    (c) vegetables, fruits, paultry, fish, dairy & meat products.
    (d) honey, aromatic oils, herbal products & essential oils.
    (e) herbal & mineral based medicines.
    (f) processed foods
    (g) confectionaries and ice-creams etc

    Asia, Latin-America & Africa will be hugely benefitted by the arrival of Russian agricultural products.
    Co-operating with China for developing high yielding hybrid crops will be also beneficial.
    So that the world is protected from western vampires like Monsanto, Cargill, Dupont, Bayer, BASF etc