Tractor business: how Russian farmers are being transferred from American equipment to Chinese

– And how did farmers react to Chinese tractors?

– Not easy. The tractor is a means of production on which much is tied in the economy. And when they drop out, it always hurts. So the sooner you go, the better. All the same, everyone has to go this way.

– You have already launched a new Hanwo brand on the market, there will be more brands. Are the dealers the same as American tractors?

– No. I think it’s somewhere 50/50. Some of the dealers stayed with us, while the other decided to hit on parallel imports.

– How do you feel about parallel imports?

– Parallel import did not find a response in my heart, me and the team are very careful about it. Yes, it exists, customers, calling a spade a spade, are forced to use it, because the transition from one technology – tractor plus trailer – to another – is always painful. It never comes easy. This is not a car, for such technological pairs, chains, all production is sharpened. In order not to change their processes, the client is willing to pay for parallel imports. But if you look at the long term, then for the company parallel imports are not in focus – after all, we understand that we will bring something, but we will not serve it soon. This is a one-time benefit.

– John Deere distributor closed. Did the dealers stay and continue to serve the park?

“I think John Deere dealers are great guys. They took over the entire functionality of the distributor, invested huge amounts of money in the “turnover” and filled the warehouses to capacity. They have a huge park in Russia, so it’s good business. They’ll manage.

– Will you carry spare parts for your “former” ones?

We have and will continue to carry. You understand, we have a very narrow circle of clients, everyone knows each other, new farmers appear extremely rarely. If you throw one client without servicing his equipment, everyone will immediately leave. The news will spread instantly. It’s just not possible. Both humanly and financially – in any plan.

– Forecasts?

– It will be difficult for brands that did not carefully look at the market, but simply engaged in shipments, without establishing distribution and service processes. If we talk about OPTITECH Agro, then I think that everything will be fine. Of course, I want some kind of stability. And sleep at night, and not think about what will happen tomorrow.

Have you already developed a strategy for yourself?

“Don’t believe in anyone or anything, do everything that depends on you. Day after day