Despite the Covid crisis, which has disturbed global production chains, most exhibitors of agricultural mechanisation at this year’s International Agricultural Fair are once again presenting new models and offering special discounts. The future of both new models and discounts, all dealers and manufacturers agree, is quite questionable.

Having spent last week in Germany on business, the Secretary General of the Business Association of Importers and Exporters of Agricultural Mechanisation, Marko Stojanović says that the business goals of the largest manufacturers of agricultural mechanisation are likely not to be met by the end of this year.

– All parts and materials are more expensive, especially steel, tyres and electronic equipment, particularly those that come from the far east. The transport of some raw materials from these countries is now ten times more expensive, Stojanović explains. – The German Association of Manufacturers of Agricultural Mechanisation VDMA organised an event dedicated to solutions to overcome this crisis and the conclusion was that no-one could predict the prices for 2022 and 2023 because of the price of steel.

Most large manufacturers, according to Stojanović, have increased their prices by three percent, while new increases have also been announced.

– Manufacturers are trying to soften the blow of having more expensive raw materials by lowering their margins. For how long they will be able to do that, I don’t know. What is clear is that only the largest dealers of agricultural machines will survive, those who will be able to have machines in stock at old prices and wait for the market prices to level off, Stojanović concluded.

The ITN Group - Agrotech company is once again presenting all premium brands of tractors, accessories, trailers and cisterns: Massey, Ferguson, Krone, Manitou, Grimme, Kongskilde. They have not changed their prices, and special fair discounts are arranged with buyers separately.

– We were respecting all measures suggested by the Crisis Centre and procedures introduced for this even to exhibit products on 1,100 square meters. Among others, there are tractors produced by the leading and most popular international manufacturer of agricultural mechanisation, John Deere, such as 5E, 5D, 6B, 6M, 6R series, as well as the novelty tractor from 8R series, says the Executive Manager of KITE DOO, Đorđe Mišković. – There are also machines manufactured by JCB, the pioneer in production of telescopic handlers, as well as accessories and tools by renowned international manufacturers, such as Kuhn, Alpego, Siptek, Joskin, Iritec, Degenhart and Geringhoff. In order to diversify our offer, we’re also exhibiting forest tractors of remarkable strength and agility by Slovenian LKT. Regardless of the Covid crisis and more expensive production process, we are offering special discounts of five percent for large machines, i.e. up to EUR 1,000 for purchase of small machines. The prices of the exhibited tractors range between EUR 13,500 and EUR 220,000 (VAT not included), and the most expensive exhibit is a harvester from series S770I, which costs EUR 350,000 (VAT not included).  

ALMEX from Pančevo is offering discounts at the fair, subject to agreement, according to Siniša Uverić, sales manager. The prices of the exhibited agricultural mechanisation range between EUR 50,000 and EUR 200,000 for tractors, i.e. between EUR 120,000 and EUR 350,000 for combine harvesters, such as Lexion 6800. This company is a traditional exhibitor of products by Claas, Holmer, Gaspardo, Cafini, Lemken and Umega.

– This year, we’re exhibiting Claas Axion tractors, models 920 and 930, Arion tractors, models 650, 440, and 420, as well as new combine harvesters, such as Lexion 5400 and 6800. The latter is also the most expensive piece of machinery at our stand and it costs EUR 350,000, VAT not included, says Uverić.

Subsidies needed for purchase of machinery

The rise in the price of raw materials, especially steel, has affected the production costs at “Majevica servis” from Bačka Palanka.

– Although the price of some raw materials has increased by as much as 100 percent, we’ve increased our prices by only 15 percent, bearing in mind the low purchasing power and decreased demand, says the production manager, Dragana Savić. – That is also why there are no traditional discounts for purchases at the fair. To compensate for this, we are offering a five-year warranty on all exhibited products.

Representatives of “Majevica servis” claim that there will be no large demand for agricultural mechanisation without state subsidies.

– In just two days at the International Agricultural Fair, we recorded 200 enquiries related to machines worth two million euros. However, there is simply no money, says Radovan Komad from “Majevica servis”.