Over the past 9 years, the production of agricultural machinery and its share on the domestic market have increased. In 2022, the production of agricultural machinery increased by 15%. However, by the end of 2022, exports decreased by 17%, and imports by 19%.
Tractor Market
For the first 6 months of 2022 the domestic tractor market in the Russian Federation grew only by 6%. But in the second half it grew up to 60%. Market growth in the second half of 2022 is associated with increases in the sectors of 40-100 hp (+102%) and more than 100 hp (+74%). As a result of 2022, the domestic tractor market grew by 21%.
Self-propelled combines
For the first half of 2022 the self-propelled combine market decreased by 37%. For the second half the market for self-propelled combines was down 22%. As a result of 2022, total market fell by 30%. This decrease is explained by a high base in 2021 and a restructuring in the production cycle of high-complexity machines. The restructuring is mainly completed and manufacturers are reaching their targets.
Production of agricultural commodities
The agricultural production index in Russia in 2022 was expected to reach 103,5%. The production of cereals and grain legume crops reached 154 million tons, 20% higher than in 2021. There are several reasons for the intensive rise. On the one hand, this is the result of an increase in yield, which has grown from 25 to 33 centers per hectare in last 5 years. On the other hand, an increase in the use of fertilizers: in 2022 it was 160 kg/ha. and 5 years ago it was 39 kg/ha.
The harvest of sugar beet, soybeans, rapeseed, potatoes, vegetables and fruits is higher than last year. Animal breeders are also increasing production volumes this year. The indicator for milk is expected to reach 32,5 million tons, and for meat, 16 million tons.
According to Food Security Doctrine, the level of self-sufficiency in grain should be 95%. At the moment it is already 159%, particularly due to the highly developed agricultural machinery industry. State support for the agro-industrial sector increased 35% in 2022.
In 2022 ag product prices stabilized, partly owing to high government support. It is expected that in 2023, prices for cereals, wheat, barley, corn will remain approximately at the level of the end of 2022. Large carryovers will be balanced by some reduction in planting volumes. Regarding oilseeds, sunflower, some price increase is predicted. Farmers' incomes may remain at the level of 2022 or slightly decrease and will be determined by the prices of agricultural products, agricultural machinery, spare parts and operating costs.
The main trends of Russian agricultural machinery industry in 2022:
1. Accelerated development of component base production.
2. Growth of the share of Russian equipment in the domestic market.
3. Completion and continuation of large-scale investment projects.
4. Digitalization of agricultural machinery.
5. Development of R&D, intensification of cooperation with research and educational institutions.
