Director of the AGROSALON exhibition Alla Elizarova made a report as part of the session “Development of the agro-industrial complex.

How to overcome growth limitations? at the Moscow Economic Forum (MEF). The expert gave her assessment of the situation in the agricultural machinery industry. She noted that the success of agricultural machine builders depends on the well-being of agricultural producers. Now the decline in production is due to the low profitability of farmers, who prioritize seeds, fertilizers and salaries over expensive equipment. Farmers are forced to postpone the decision to purchase equipment due to rising prices and competition.

On behalf of the producers, Alla Elizarova explained the reasons for the rise in price of agricultural machinery: “Agricultural machine manufacturers work in the market, in a competitive environment. Not only do we have internal competition, but the struggle for the market with European manufacturers continues. In addition, quite strong competitors from friendly countries have appeared. At the same time, we see that costs for components and logistics have increased significantly. These factors also affect the cost of equipment, not to mention the key rate, because all investment projects are financed using credit funds.”

Most investment projects are financed through loans, but not all enterprises can receive preferential loans due to the lack of collateral, Alla Elizarova emphasized.

The speaker said that the main goal now is the well-being of agricultural producers, to achieve which it is necessary to revise export duties to support agricultural producers, stimulate the growth of mechanical engineering and achieve economic benefits, create jobs and develop industry.