Direct seeding machinery business

Business Plan

Executive Summary

Argentina Agro Ltd. is an agriculture machinery and implements importer and authorized reseller that sells machinery and systems for cultivation.

1.1 Business Opportunity

Argentina Agro believes that, there is a current market opportunity for Direct Seeding machinery in Russia. Lack of local manufacturing in Russia leaves the market to Internationalproviders of agriculture machinery (Great Plains, John Deere, Gaspardo)  generally too diversified to serve the specialized equipment and independent dealers without the expertise to show the benefits of direct seeding and without commitment to local dealers

Capitalized this opportunity is the objective of Argentina Agro.

1.2 Mission

Argentina Agro’ mission is to bring new technologiesthat could help the Russian farmer to improve their farms’ results through lower operational cost and stable yields while protecting the land.

Therefore, the company's strategy is to offer high-quality agriculture equipments and machinery for cereals, vegetables and irrigation services at a price which is competitive in comparison to other premium-quality commercial machinery manufacturers inthe local market.

Products and Services

Argentina Agro. is an authorized dealer of Gherardi SA, Argentina’s brand leader for seeding machines for the Direct Seeding cultivation, and got the exclusivity for the assembling in Russia of 2 types of machines,

The subsequent agreement with KSM (local manufacturer of plowing equipment with high prestige) for the provision of assembling servicesat their premises in Krasnodar, offers the perfect springboard for a effective strategy, based on the leverage of the formula: International Top Class Technology + Local Manufacturing.

No Tillage  Planting Machines
Our machine is designed such that it can do all four processes--soil cultivation, fertilizing and planting on line, seed cover with soil and corrugation--in one go. Thecultivation of the land with tillage preserve the humidity conditions of the soil, avoiding erosion and saving up to 50% of operational costs.

Sprayers
Our direct seeders technology needs the complement of an sprayer, as herbicides becomes key in the process of maintaining the cultivation healthy. Our line of sprayers Praba, self propulsed and carried machine is designed such that it can do theprocesses minimizing the utilization of herbicides.

Market Analysis Summary

The overall market for agriculture machinery and implements is immense. This business plan has identified over 15,800 agricultural producers and farmers in the local market .

4.1 Market Segmentation

Our segmentation scheme for the Russian market is fairly straightforward:

• HIGH END, PROFESSIONAL FARMINGSEGMENT

Big in size (up to 5’000 ha 300’000 ha), many of them belonging to Agriculture Holdings.

They can afford higher investment and they want a technologically advance product. Financing it is important but they have access to different sources of financing.

• LOWER TECH, LIFESTYLE MARKET SEGMENT

Private farms, smaller in sizes (from 150 ha up 3’000 5’000 ha).

They chase low investment cost, simple machines. Very price sensitive and FINANCING it is extremely important.

This farmer iand agriculture producer is the last minute man. He buys a machinery only when it is critical and necessary , and when he identify the need, he wants immediate delivery. The main motivation to buy is to replace obsolete machinery, then increase marginsand profit.

Competition and Buying Patterns

ALL customers want equipment that works well. They are paying a great deal of their annual income to purchase a machine, and will not buy anything unless they have a clear demonstration that it works, or a recommendation about buying from another farmer they trust.

For high end professional farms:

1. The motivation...