Deere enthused about Russian market

A large part of Deere's goal to double sales is to penetrate the Russian market.
A large part of Deere's goal to double sales is to penetrate the Russian market.
A key component of the John Deere strategy to double sales within eight years lies with its comrades.

The Wall Street Journal reports Deere and its top official have wide eyes for the farm equipment market in Russia. To meet the goal of $50 billion per year in sales by 2018, the company also wants to widen the breadth of business interests for construction equipment outside of the North American borders.

"While it's a stretch goal, it's a realistic goal," chief executive officer Samuel Allen told the publication on Wednesday.

Russia is so favorably viewed for many reasons. Nine percent of the globe's arable land is in Russia, the nation is among the globe's top wheat producers and it is aiming to at least double exports within years. The nation views China as one target nation that is a voracious consumer of grains.

However, machinery that Russia uses on its farms is inadequate as indicated by decreasing use of farmland during the past 20 years.

"If you want to export wheat, farmers have to be very productive," Allen said. "That's why we're putting so much emphasis on Russia, even though it's a risky environment."