Deere Ukraine Dealer Reports First-Half Losses

Germany-based Ekotechnika, one of the biggest John Deere dealers, blamed a weak ruble for doubling its first-half losses, also citing “more difficult financing conditions” for growers stemming from the fallout from the Ukraine crisis, reported Agrimoney.com.

The group, whose Ekoniva Technika operating subsidiary is responsible for one-quarter of sales of John Deere equipment in Russia as of 2012, revealed a net loss of E10.6 million for October through March, compared with a loss of E5.6 million a year before.

Ekotechnika attributed an 8.6% drop in sales “exclusively” to exchange rate effects. Revenues from farm equipment sales, of which John Deere equipment comprises about two-thirds, showed a decline of some 18%.

As of mid-May, Russian farmers were able to borrow only 75 billion rubles ($2 billion) for spring sowing and spring field works, which is 11% less than last year, according to a USDA report. It also said that banks are worried by farmers’ high indebtedness and the growth of delinquent loans. Nonetheless, Russia’s farm equipment market has held up well, tractor sales up 12.2% in the first four months of 2014, and combine sales down 4.9%, according to industry group Rosagromash. S