Bulgarian Association of Traders of Agro Machinery BATA Bulgarian Association of Traders of Agro Machinery

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 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 activity Discussing and developing opinions on draft legislation related to objectives, functions and responsibilities of BATA; Developing programs and supplying the competent state authorities with draft regulations concerning the agro machinery of the country; Providing an independent expert evaluation of technical solutions relating to trade, use and servicing of agro machinery; Recruitment and aggregation of information about sales and status of agro machinery from all market participants in Bulgaria and its dissemination; Organizing joint activities of advertising, demonstration of new technologies, models, products, etc.;. Representing the members before public and governmental bodies when issues related to the common objectives are discussed; Representing the members in international events and before organizations with similar objectives;

Financial results For 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 machinery Tractors – 4 490 p. Harvesters– 993 p. Ploughs- 886 p. Harrow– 580 p. Seeders- 1050 p. Sprayers– 382 p. Spreaders – 593 p. Telehendlers– 179 p.

MODERN MACHINERY– -EFFICIENCY- -COMPETITEVNESS WHERE IS BULGARIA?

MODERN MACHINERY– EFFICIENCY- COMPETITEVNESS WHERE 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 WHEELS TRACTOR 32 309 37 846 43 701 48761 AREA FOR 1 TRACTOR,На 96,8 81,6 70,0 62,7

MODERN MACHINERY– EFFICIENCY- COMPETITEVNESS WHERE IS BULGARIA? AGE OF MACHINERY– TRACTORS AVARAGE AGE - TRACTORS REFRESH RATE– NEW TRACTORS REGISTRATED TYPE YEAR TOTAL NUMBER AGE Up to 2 years 3-10 years Over 10 years Num. % WHEELS TRACTORS 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 OPTIMAL AVARAGE AGE FACTUAL AVARAGE AGE TRACTORS 12,9 YERS 21,34 YERS 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 BULGARIA? AGE OF MACHINERY- HARVESTERS AVARAGE AGE- HARVESTER REFRESH RATE– NEW HARVESTERS REGISTRATED TYPE YEAR TOTAL NUM. AGE Up to 2 years 3-10 years Over 10 years Num. % CORNHARVESTER 2003 5537 173 3.1% 685 12.4% 5364 96.9% 2009 8399 666 7.9% 1260 15.0% 7733 92.1% TYPE MACHINE OPTIMAL AVARAGE AGE FACTUAL AVARAGE AGE HARVESTERS 11,3 ГОДИНИ 17,75 ГОДИНИ TYPE MACHINES NUMBER 2008 / % TO TOTAL NUMBER NUMBER 2009 / % TO TOTAL NUMBER HARVESTERS 299 / 3,23% 339 / 4,04%

MODERN MACHINERY– EFFICIENCY- COMPETITEVNESS WHERE IS BULGARIA? WITH 52 605 TOTAL NUMBER OF TRACTORS IN 2009 BULGARIA IS AT 1969 OR 1990 LEVEL

MODERN MACHINERY– EFFICIENCY- COMPETITEVNESS WHERE IS BULGARIA? 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

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