NEWS AND EVENTS
May 27, 2014
Farm Machinery Industry Refined
Today’s agriculture has long been an area where people widely use modern energy efficient equipment and machinery, not just manual labor. Uzbekistan’s farms currently operate powerful tractors and harvesters, as well as a wide variety of tractor-mounted and tractor-hauled tools manufactured in the republic through cooperation with the world’s leading corporations Claas, Case, Lemken and others.
However, the world does not stand still; almost everywhere around it, agricultural practices are being regularly improved in terms of efficiency, which is necessary for maintaining any country’s food security. These efforts are especially important under the current climate change conditions and cataclysms occurring quite frequently, for they affect both the harvests in many regions and, in general, the global food market situation.
A few years ago, a drought in Russia and Kazakhstan, for instance, caused the prices of flour and buckwheat to shoot up. That is why, to prevent situations like this, farmers try their best to introduce modern agricultural technologies and machinery allowing for better protection of the crops from the harmful effects of their environments. Last week in Uzbekistan, a new step in improving the country’s agriculture was taken. The President signed the decree on establishing Uzagroprommashholding – a new agricultural machinery holding company to be an open joint stock company. Experts say this entity will allow for a significant improvement in managing agriculture machinery businesses and contribute to their efficiency.
The company will first of all engage in pursuing a uniform development policy in the industry. It will be based on modernization, technical and technological renewal, re-equipment and putting up-to-date, efficient and competitive machines and tools into production. The key strategy steps will include conducting specialized market research. After the supply and demand, as well as the quality of the products available in the market, have been assessed, Uzagroprommashholding will control the production and supplies as to the demand and take measures to increase their competitiveness, expand the product range and build up the exports. As an incentive, the President signed a decree exempting the holding company from the taxes on the land and property of its constituent companies till January 1, 2019.
The three largest agricultural machinery manufacturers of the country – Tashkent Tractor Plant, Chirchikselmash and Aggregate Plant – are undergoing serious changes. The first two will be closed down and serve as bases for Tashkent Agricultural Machinery Plant and Chirchik Agricultural Machinery Plant respectively, and the third will be reorganized.
Specialization, one of the key features in machine building industries today, must allow for quick modification of a certain product within the available product range to satisfy the new market demands quickly. The three country’s manufacturers are going to operate on this principle of specialization: Tashkent plant is going to specialize in manufacturing tractors, cotton harvesters and trailers; Chirchik plant is going to produce tractor-mounted and tractor-hauled tools, using part of the equipment and technologies relocated from Aggregate Plant, which is going to produce components and spare parts.
According to the presidential decree mentioned above, the government is to develop and approve the program of further improvement of agricultural machinery service support system in the republic for 2014 – 2016 within a two-month period. This document is expected to provide for introduction of modern methods and technologies of servicing agricultural machinery, further localization of spare parts production, and taking measures to prevent using counterfeit and low-quality spare parts in servicing.
In addition to these steps, the program is to provide for more measures to stimulate the local farm machine operators, as well as a substantial improvement in training personnel for operating and servicing agricultural machinery, which will include closer cooperation of certain industry-related higher education institutions and vocational colleges with farms and their machinery terminals.
(Source: “Uzbekistan Today” newspaper)