Agricultural machinery market in the Republic of Kazakhstan: The most affordable and expensive equipment

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 Domestic agricultural machinery is two times cheaper than imported analogues
• The most affordable tractor in Kazakhstan costs just over 4 million tenge
​​​​​​​• The average wear and tear of the agricultural machinery fleet in Kazakhstan is 76%
According to Ministry of Agriculture of the Republic of Kazakhstan в 2019 year, the country's agricultural producers had 147,3 thousands tractors and 38,5 thousands combines, as well as - order 4 thousands sowing complexes, 80 thousands seeders and 300 thousands units of forage procurement and soil cultivation equipment.

According to Association of Kazakhstan Auto Business (AKAB), in the country 85% tractor fleet and 68% harvester fleet - equipment with a service life of over 10 years. The average wear and tear of the entire fleet of agricultural machinery is 76%.
When deciding to update equipment, farmers in Kazakhstan are based on needs and opportunities. Below are the prices of the most affordable and most expensive agricultural machinery on the country's market. The average data is taken into account in the analysis, since the cost of equipment depends on many factors - power and configuration.

TRACTORS

​​​​​​​​The most affordable tractor in the middle class can be considered "Belorus" (MTZ). Its cost is based on the area 7,4-8 million tenge. Models of these tractors are produced in Kazakhstan at three sites: SemAZ LLPLLP "KAIK" и "Composite Group Kazakhstan" LLP.
Agricultural machinery market in the Republic of Kazakhstan: The most affordable and expensive equipment - AKAB
The broad competition in the segment is JSC "AgromashHolding KZ" with a relatively new brand for the country "LOVOL". Notable in the produced line is the lightest and most affordable tractor in its class, LOVOL 354, which is located in the area 4,2 million tenge.

The most expensive brand on the market is "John Deere" with the B series of tractors (6110, 6135), the cost of which is noticeably higher - 18-34 million tenge.

ENERGY-POWERED TRACTORS


Among the powerful tractors in Kazakhstan it is worth noting "KIROVETS", the production of which is established in Kostanay Tractor Plant LLP. Order cost 45-52 million tenge allowed Kirovets to take 60% shares of energy-rich tractors in the Republic of Kazakhstan.​​​​​​​

The analogue from "Buhler", the price of which is in the area 65 million tenge.

The most expensive "classmate" here is again from an American manufacturer - models 8320R and 9420R "John Deere" can be purchased from dealers in the area 85-115 million tenge.
COMBINES

Prices for new combine harvesters in Kazakhstan start from 45-49 million tenge. The most affordable equipment is presented from KazRost Engineering Ltd (Vector, Acros) и JSC AgromashHolding KZ (Essil).

The highest cost is indicated in the dealer price list "John Deere". Thus, imported combine harvesters will cost farmers approximately 95-140 million tenge.

It should be noted that to renew the fleet of agricultural machinery in Kazakhstan, there is an investment subsidy program that provides for reimbursement of 25% of the cost of purchased equipment, both Kazakhstan-made and imported (regardless of the cost of the equipment).

If we take into account the statistics of agricultural machinery sold in the country over 2019 year, then from 3 394 units import takes only 26%. And taking into account the difference in cost between domestic and foreign equipment, the state pays importers about 60% all sector subsidies, or 25,8 billion tenge from the state budget.
Agricultural machinery market in the Republic of Kazakhstan: The most affordable and expensive equipment - AKAB

Date: 3.08.2020