BATABATABulgarian Association Bulgarian Association

of Traders of Agro of Traders of Agro MachineryMachinery

Who we are?Who we are?

15 Bulgarian companies working in the field of agriculture - a strategic sector for the development of our country;

We built sales and service network throughout the country in favor of farmers;

In Bulgaria we represent the world’s leading companies -John Deere, Claas, Fendt, New Holland, Valtra, Landini, JCB, Pronar, Armatrac, Rostselymash, Challenger, Laverda, Lamborghini, Kubota, Massey Ferguson, Sampo, Deutz

Objectives Objectives

Creating of favorable conditions in our country for development of importation, sale and service of highly advanced agricultural machinery

Creating of favorable conditions for observing the principles of fair competition between traders of agro machinery in Bulgaria and their distributors in the country;

Submitting of proposals regarding the activities of BATA for timely consideration by the relevant authorities.

Scope of activityScope of activity

1. Discussing and developing opinions on draft legislation related to objectives, functions and responsibilities of BATA;

2. Developing programs and supplying the competent state authorities with draft regulations concerning the agro machinery of the country;

3. Providing an independent expert evaluation of technical solutions relating to trade, use and servicing of agro machinery;

4. Recruitment and aggregation of information about sales and status of agro machinery from all market participants in Bulgaria and its dissemination;

5. Organizing joint activities of advertising, demonstration of new technologies, models, products, etc.;.

6. Representing the members before public and governmental bodies when issues related to the common objectives are discussed;

7. Representing the members in international events and before organizations with similar objectives;

Financial resultsFinancial results

For the past three years BATA companiesFor the past three years BATA companies::

Sold machines at the value of 984 million BGN

VAT paid over 110 million BGN

Income tax paid over 8 million BGN

Jobs created - 702 employees

Numbers of sold agro Numbers of sold agro machinerymachinery

Tractors Tractors – 4 – 4 490490 p.p.

HarvestersHarvesters– 9– 99393 pp..

PloughsPloughs- 8- 88686 pp. .

HarrowHarrow– 5– 58080 pp. .

SeedersSeeders- 10- 105050 pp. .

SprayersSprayers– – 382382 pp. .

SpreadersSpreaders – – 593593 pp. .

TelehendlersTelehendlers– 1– 17979 p.p.

MODERN MACHINERY– -EFFICIENCY-

-COMPETITEVNESS

WHERE IS BULGARIAWHERE IS BULGARIA??

ENERGY SECURITY OF TRACTORS AND HARVESTERS FOR EUROPE– AVARAGE 240 kW/100 Ha

FOR BULGARIA – 138,9 kW/100 Ha

ARABLE LAND OF ONE TRACTOR FOR EU– AVARAGE 19,7 На FOR ONE TRACTOR

Great Britain– 34 На, Denmark– 25,5 На, France– 15,3 На, Greece and Portugal– по 16 На

For BULGARIA– AVARAGE 62,7 На

2005 2006 2007 2008

AREA, На 3 128 118 3 089 531 3 057 740 3 057 740

WHEELS TRACTOR 32 309 37 846 43 701 48761

AREA FOR 1 TRACTOR,На 96,8 81,6 70,0 62,7

AGE OF MACHINERY– TRACTORS

AVARAGE AGE - TRACTORS

REFRESH RATE– NEW TRACTORS REGISTRATED

TYPE OF MACHINES OPTIMAL AVARAGE AGE FACTUAL AVARAGE AGE

TRACTORS 12,9 YERS 21,34 YERS

TYPE YEARTOTAL NUMB

ER

AGE

Up to 2 years 3-10 years Over 10 years

Num. % Num. % Num. %

WHEELSTRACTORS

2003 24254 533 2.2% 3131 12.9% 20590 84.9%

2009 52605 3394 6.5% 6064 11.5% 43147 82.0%

TYPE OF MACHINES NUMBER 2008 / % TO TOTAL NUMBER NUMBER 2009 / % TO TOTAL NUMBER

TRACTORS 1617 / 3,32% 1367 / 2,60%

MODERN MACHINERY– EFFICIENCY- COMPETITEVNESS

WHERE IS BULGARIAWHERE IS BULGARIA??

AGE OF MACHINERY- HARVESTERS

AVARAGE AGE- HARVESTER

REFRESH RATE– NEW HARVESTERS REGISTRATED

TYPE MACHINE OPTIMAL AVARAGE AGE FACTUAL AVARAGE AGE

HARVESTERS 11,3 ГОДИНИ 17,75 ГОДИНИ

TYPE YEARTOTAL NUM.

AGE

Up to 2 years 3-10 years Over 10 years

Num. % Num. % Num. %

CORNHARVESTER2003 5537 173 3.1% 685 12.4% 5364 96.9%

2009 8399 666 7.9% 1260 15.0% 7733 92.1%

TYPE MACHINES NUMBER 2008 / % TO TOTAL NUMBER NUMBER 2009 / % TO TOTAL NUMBER

HARVESTERS 299 / 3,23% 339 / 4,04%

WITH 52 605 TOTAL NUMBER OF TRACTORS IN 2009 BULGARIA IS AT 1969 OR 1990 LEVEL

CONCLUSIONS Machinery in Bulgaria are highly amortized – AVARAGE AGE 18-21 YEARS 80% OF THE MACHINES ARE OVER 10 YEARS OLD LOW REFRESHMENT RATE – BETWEEN 3 И 4% ANNUALY AND BY VIRTUE OF SAPARD AND PROGRAM FOR

RURAL DEVELOPMENT (2008-2013) FOR ACHIEVING THE NUMBERS, NEAR TO THE AVARAGE IN THE EU, ANNUALY INVESTMENT REQUIRED IS

100 000 Kw POWER FOR TRACTORS AND 50 000 Kw FOR HARVESTERS DURING THE PERIOD 2008-2013

RESTRUCTURING IS NEEDED AND ATTRACTING ADDITIONAL FUNDS TO 121 MEASURE’S NON-RESERVED BUDGET TO MAINTAIN THE POSITIVE TREND FOR

RENOVATION OF AGRO MACHINERY IN BULGARIA ACHIEVED BY IMPLEMENTATION OF THE SAPARD AND PROGRAM FOR RURAL DEVELOPMENT

TYPE INVESTMENT REQUIRED, MILLION

EURO

Size of investments /121 measure/ million euro

Non-reserved

deficiency/millions euro

TRACTORS 650,00 Approx. 500,00 (258,00 – amount of subsidy)

371,830

HARVESTERS 221,83

TOTAL 871,83

To be To be continued…continued…