Current state of technical equipment of agricultural production

Tractor and agricultural engineering of Kazakhstan was formed as an integral part of the machine-building industry of the former USSR. Agricultural machinery enterprises of the republic provided many regions of the country with their products, the industry developed and developed with a narrow specialization, without taking into account the priority of the interests of the national economy in meeting the need for agricultural machines and spare parts for them, a significant part of the equipment was imported. At that time, the main suppliers of machinery and equipment for the domestic agro-industrial complex were manufacturers from Russia, Belarus, and Ukraine, and only about 10% of the necessary nomenclature was produced in Kazakhstan.

Modern agricultural production is completely based on machine technologies. The resource availability of production is determined mainly by the equipment of farms and agricultural formations with the necessary machines and equipment. The total demand of agricultural industries for basic means of mechanization and automation in crop production and animal husbandry totals more than 1.5 thousand items. High mechanization of labor is the key to the growth of volumes and quality of agricultural products. At the same time, the lack of provision of the industry with the necessary amount of agricultural machinery is a serious barrier to the development of agriculture.

Thus, taking into account the initial state and the current level of development of agricultural machinery in the republic, the urgent task is the further development and improvement of the entire production complex to fully meet the needs of agriculture in machinery and equipment.

The country's agriculture has a significant but insufficient fleet of tractors, combines and other agricultural machinery. Thus, according to the Ministry of Agriculture of the Republic of Kazakhstan, the average wear of the machine and tractor fleet is about 80%. The share of extremely worn-out main types of agricultural machinery (over 15 years old) It is: tractors - 79%, combines - 54%, seeders - 86%, harvesters - 63%.

As you know, Kazakhstan annually sows about 21 million hectares of acreage. More than 150 thousand tractors and 88 thousand seeders, as well as about 40 thousand grain and forage harvesters and other necessary equipment participate in field and harvesting agricultural work. With the required technological level of updating 10 ÷ 12.5% per year, today the update occurs only within 1-3%. The insufficiency of energy-saturated tractors and agricultural machines causes a reduction in production volumes, which leads to the use of simplified crop cultivation schemes with violation of agricultural technology, non-compliance with optimal work deadlines, with high labor costs and, as a result, to large losses of products at all stages of cultivation, harvesting, processing, storage and a decrease in crop yields.

The implementation of an independent food policy of the state and a stable indicator of the provision of the population with essential products is impossible without the sustainable development of all branches of agriculture. Agricultural engineering in this regard serves as the main indicator and at the same time the key to the success of the progressive course of the process.

Currently, in the Republic of Kazakhstan, more than thirty machine-building enterprises are specialized in the assembly production of various models of agricultural machinery and tractors of well-known brands, as well as the manufacture of attachments and other equipment, components and spare parts for the needs of the agro-industrial complex. The republic has established the production of final types of agricultural machinery products: combine harvesters, wheeled tractors, trailers, sprayers, balers, seeders, harvesters, harrows, plows, rippers, mowers, rakes, various equipment for animal husbandry and others. To a large extent, this is the assembly production of leading agricultural machinery manufacturers from the countries of the Eurasian Economic Union (EAEU), Italy, China, Germany, etc. These enterprises are located mainly in Akmola, Kostanay, North Kazakhstan and other agricultural regions of the country. Thus, the production of wheeled tractors of various models of brands Belarus (JSC "Minsk Tractor Plant", Republic of Belarus), Kirovets (JSC "Petersburg Tractor Plant", Russia), self-propelled combine harvesters of brands ESSIL (based on the line "PALESSE" JSC "Gomselmash", RB), Acros and VECTOR 410 KZ (LLC Rostselmash Combine Plant, RF) and other common brands of agricultural machinery are concentrated on the basis of the following domestic plants: JSC "Agromashholding KZ" (Kostanay), LLP "Kazakhstan Agro Innovation Corporation /KAIK/" (Kokshetau), LLP "SemAZ" (Kostanay Semey), PC "Kazrost Engineering Ltd" (Kokshetau), LLP "Kostanay Tractor Plant" (Kostanay), LLP "Machine-building Plant MTZ-Kazakhstan" (Kostanay), LLP "Kaz Kioti" (Turkestan region, Akbulak village), LLP "Joint Venture "Petropavlovsk Tractor Plant", LLP "ST Esembli" and LLP "KAZTEHMASH Machine-building Plant" (Petropavlovsk).

The introduction of the recycling fee in 2020 additionally contributed to the localization in Kazakhstan of previously imported well-known brands of tractors and combines: tractors - Lovol, YTO, Deutz Fahr, Xerion (CLAAS), RSM (Buhler Versatile), Dong Feng, Wuzheng; combine harvesters - Torum, Deutz Fahr, Tucano; silage harvesters - KSK and KVK; seed complexes - Amity, Pottinger. The average localization level of tractors and combines is 33.5%.

Major manufacturers of various mounted implements, trailed non-self-propelled agricultural machinery, elevator equipment and spare parts are: LLP "Don Mar" (Lisakovsk), JSC "Uralskagroremmash" (Uralsk), LLP "AZAM-KC" (Akmola region, village of Zhaltyr), LLP firm "DAFA" (Pavlodar), LLP "Peschansky repair and mechanical Plant" (Pavlodar region, village of Peschanoe), LLP "AVAGRO" (Petropavlovsk), "Expro" LLP (Kostanay), "Astyk Elevator Equipment Plant" LLP (Kostanay), "Kostanay Agricultural Equipment Plant "Agniy" LLP (Kostanay), etc.

Machine-building enterprises LLP "MODERNS" (Petropavlovsk), LLP "Ural Mechanical Plant" (Uralsk) and LLP "Karaganda plant of metal products" (Karaganda) are successfully engaged in the production of various equipment for animal husbandry (machines for fixing livestock, weighing platforms for livestock, milking parlors for cows, mares, etc.).

According to the results of 2021, domestic enterprises in the tractor and agricultural machinery sector produced 6437 units of agricultural machinery, including 5154 tractors and 1283 combines. Other non-self-propelled agricultural machinery enterprises produced 2,407 units, which include mounted and trailed guns. At the same time, out of the number of tractors produced in 2021, 3822 (74.2%) produced Belarus brands, 529 (10.3%) – Lovol, 415 (8.1%) – Kirovets, 229 (4.4%) – RSM, 127 (2.5%) – YTO, 26 (0.5%) – Dong Feng. If 350 tractors for agriculture and forestry were produced in 2018, then in subsequent years the production rate more than doubled. So, for example, in 2019 1017 units of tractors were manufactured, in 2020 – 2587 units; 2021 - 5154 units; 2022. 6 months – 2150 units.

Of the harvesters produced last year: 447 units belong to the brands Acros (34.8%), 406 units (31.6%) - ESSIL, 282 units. (22%) – VECTOR, 92 units (7.2%) – Tucano, 17 units (1.3%) – Torum, etc. In recent years, there have been good growth rates of combine harvester production: 2019 – 395 units; 2020 – 962 units; 2021 – 1283 units; 2022 – 6 months - 358 units.

In general, according to the results of the first half of 2022, tractors, agricultural machinery, attachments and other equipment for the needs of agriculture were produced for a total amount of 93.263 billion tenge, which is 39.6% higher than the same period last year.

It should be noted that the domestic production of tractors, combines, attachments and trailed equipment is primarily focused on domestic consumption. Thus, the volume of exports of agricultural machinery products in 2021 amounted to only 4,948 million US dollars, while the volume of imports amounted to 562,053 million US dollars. Of these, the volume of tractor exports last year amounted to only 68 units for a total of 1,708 million US dollars, while the volume of tractor imports amounted to 8,650 units for a total of 124.76 million US dollars. 60 units of combine harvesters were exported in 2021. for a total amount of 243.41 thousand US dollars, and the volume of imports of combines at the same time amounted to 353 units for a total amount of 48.362 million US dollars. According to the results of 5 months of this year, tractors and agricultural machinery were exported in the amount of 78 units for a total of 16.444 million US dollars, and 3616 units were imported for the same period for a total of 127.64 million US dollars.

In the domestic market of agricultural machinery supplies, there is increased competition from long-standing strategic partners and factories from Russia and Belarus, as well as leading global manufacturers represented by John Deere, AGCO, Case New Holland, etc. At the same time, despite the assembly of agricultural machinery of Russian and Belarusian brands in Kazakhstan, there is no significant decrease in the volume of imports of similar equipment from these states to Kazakhstan.

Existing problems in the production of agricultural machinery

Agricultural engineering in the former Soviet Union was the largest branch of mechanical engineering. About three hundred research institutes and design organizations were engaged in the development of tractors and agricultural machines, among them – institutes of SRTI (State Scientific Research Tractor Institute), VISKHOM (All-Union Scientific Research Institute of Agricultural Engineering), VNIIKOMZH (All-Union Scientific Research Institute of Complex Problems of Mechanical Engineering for Animal Husbandry and Forage Production), head specialized design bureaus (HSDB) "Rostselmash", "Gomselmash", Volgograd, Kharkov and other tractor plants, HSDB for tillage, sowing, potato harvesting, forage harvesting machines and in many other areas of agricultural machinery. For example, only during the period from 1975 to 1990, more than 300 models of tractors and agricultural machines were developed and put into production!

After gaining independence, unfortunately, in Kazakhstan it was not possible to preserve in full all the existing specialized research institutes and design bureaus for the design and creation of new types of agricultural machinery and component base. A number of head design bureaus practically ceased to exist after privatization. A significant part of qualified personnel has been lost. The experimental design base was significantly damaged, and the experimental testing stations were completely closed.

New assembly plants of agricultural machinery on the territory of the republic were created on the basis of existing models of foreign manufacturers, which often do not take into account the real needs for types of highly productive machines and certain requirements in the necessary traction classes of machinery, other technical and production characteristics in accordance with the heterogeneity of the climatic zones of Kazakhstan and the specifics of the optimal composition of the machine and tractor fleet for the cultivation and harvesting of the main agricultural crops. All this has led to a certain imbalance of agricultural machinery produced in the supply market: there is a shortage in the segment of production of tractors of medium power traction class, there is no own production of tracked tractors, machines for harvesting tubers and root crops, rice, cotton and grape harvesters and others.

The experience of many industrially developed countries shows that agriculture, by at least 50%, should be equipped with equipment of its own production. This is dictated by the protection of food security, the remaining share is replenished by imports from other states, joint ventures with a certain level of localization or assembly plants. Today, enterprises in Kazakhstan produce a whole range of agricultural machinery with a high proportion of local content. Large plants "Agromashholding KZ" and "KAIK" have localization of over 40% in manufactured combines, seeders (80%) and up to 90% in manufactured units and aggregates (trolleys for harvesters, balers, attachments, trailers, counterweights on tractors, fast-wearing parts, inclined chambers, pulleys, etc. etc.). For more than twenty years, Don Mar LLP has been producing grain harvesters that are almost 100% localized. AVAGRO has successfully launched the production of various sprayers with a high degree of localization.

The large-scale assembly of imported agricultural machinery without further localization, the existing problems due to failures in the supply chain, as well as the continuing global unstable geopolitical and economic conditions in the world can lead to complete dependence on imports of machine kits, components and to a threat to the country's food security. It should be noted that all domestic manufacturers of tractors and combines have signed agreements with the Ministry of Industry and Infrastructure Development of the Republic of Kazakhstan on the industrial assembly of agricultural machinery and components, which impose mutual localization obligations on agricultural machine builders in exchange for preferences. In case of non-compliance with localization requirements, enterprises are obliged to return all received state preferences.

In general, by structure, 93% of the total production of agricultural machinery in monetary terms falls on the assembly of tractors and combines, 7% on the manufacture of trailed, mounted machinery and equipment (harvesters, mowers, etc.), front loaders, balers and a small range of tillage industries. At the same time, there are no factories in the country for the production of chassis, transmissions, gearboxes, internal combustion engines for tractors, grain and forage harvesters.

Along with this, there are a number of systemic problems in the industry that require a quick solution:

• weak technical equipment of enterprises in the field of agricultural engineering;
• lack of domestic new developments of promising models of agricultural machines for the agro-industrial complex;
• insufficient testing stations and centers for conducting full-fledged certification tests of agricultural machinery and equipment;
• the absence of significant advantages for domestic agricultural machinery manufacturers over foreign manufacturers in providing benefits and preferences from the state;
• low solvency of farms and agro-formations in agriculture in the acquisition of agricultural machinery and equipment;
• decrease in the competitiveness of tractors and agricultural machines of domestic production due to low localization, dependence on the supply of machine kits and an increase in the cost of equipment.

Growth prospects

The leadership of Kazakhstan sets serious indicators for the Ministry of Industry and Infrastructure Development for the third five-year plan. By 2025, the machine-building and manufacturing industries should grow: export volume almost doubled, real labor productivity growth - 1.6 times, investment in fixed assets - 1.6 times.

In this regard, industrial policy will be reoriented from supporting demand to supporting technological modernization and transformation of enterprises. State support will be aimed at deepening and expanding the product line or services provided, and developing new markets.

The acceleration of the pace of renewal of the technical park of agriculture will be carried out by improving state support measures for the purchase of agricultural machinery and equipment, including through the development of a new subsidy policy aimed at increasing labor productivity, increasing the share of localization of agricultural machinery production, development and expansion of preferential lending programs for domestic machinery.

Agricultural enterprises will begin the process of transition to cost-effective production of products, which allows using the export potential with the greatest probability, increasing the degree of conversion of agricultural crops, introducing new technologies and practices.

Machine-building enterprises in the production of tractors and agricultural machinery need to switch to small-node assembly in the coming years and establish the production of individual components and components (cabs, gantry bridges, glass products, wheels, plastic products of the interior, exterior, etc.) in accordance with the concluded agreements on industrial assembly.

In order to ensure the accelerated development of domestic tractor and agricultural machinery, the Ministry of Industry and Infrastructure Development, together with the Ministry of Agriculture, with the participation of scientific research institutes, industry associations and the business community, intends to:

- to develop a System of advanced machines and equipment for the implementation of effective production technologies and primary processing of the main types of crop and livestock products;

- to develop a Program for the development of agricultural machinery, where it is necessary to provide for the coordination of work, economic stimulation of enterprises, updating their material and technical base and a program for the production of agricultural machinery in demand in the near and medium term;

- to create in conditions of close cooperation on the basis of specialized enterprises separate production facilities for the production of agricultural components, unified components and assemblies: wheels, tires, bearings, rubber products, wear-resistant working bodies, etc.;

- to create favorable financial and organizational conditions for the development and promotion of exports of agricultural machinery and equipment;

- to contribute to the improvement of the system of training engineering personnel and working specialties for the agro-industrial complex in general and agricultural engineering in particular.

The successful implementation of these tasks for the further development of agricultural machinery will allow the qualitative implementation of the Plan for ensuring Food Security of Kazakhstan for 2022-2024.