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Agricultural Equipment Import to Ukraine 2012 - 2013

Agricultural Equipment Import to Ukraine 2012 - 2013


Last year Ukraine exported agricultural products at total value of $ 18 bln. Having passed chemical production and machinery building, agricultural sector became one of the main currency incomming sources to state treasury and jointly with metalurgy one of the core budget constituting sectors of Ukrainian economy. Further to state officials, the grain crop harvest in Ukraine will exceed 57 mln. tons of grain this year. Even with due virtual betterment and tired grain delivery and storage infrustructure, the harvest is promised to be the record-breaking in the history of Ukraine this year. To keep the current level of agricultural production, the Ukrainian farmers actively introduce new technologies and increase the import of up-to-date agricultural equipment, having approached pre-reñession level.

The import of agricultural equipment to Ukraine in 2012 ammounted at $ 930 mln., with 90% of the total ammount spent for the new equipment. The agricultural equipment market remains in positive trend second year already. The given dinamics will continue this year, privided political and economical risks do not have any further development. Since the topic of the domestic production is still more on paper and is raised by the government before elections only, the market share of the Ukrainian trade marks is not significant.

As expected, the brand-awareness among Ukrainian farmers and 20-year market presence allowed John Deere, Claas, New Holland and Case IH to be market leaders. Challenger made a change to popular Massey Fergusson. Due to the extra efforts of the local dealers, the change in AGCO team was made painless and moved company closer to market leaders. According to MARCOM experts, both AGCO brands have good market potential and due to different market positioning, may be both promoted in Ukrainian market. There is no surprise if we see the "second advent" of Massey Fergusson from AGCO in a shortwhile.

The import of tractors (> 80 HP) to Ukraine in 2012 exceeded $ 312 mln. Belarus (30%), John Deere (28%), Case IH (15%) and New Holland (10%) traditionally became market leaders. The tractor's HP segments are not less interesting. Belarus has 97% of the market share in 80-100 HP segment (which ammounts at $69mln.) and 58% in 100-200 HP segment ($42mln.). The 200-300 HP segment has more intensive competiotion: Deutz Fahr (27%), Case IH (20%), John Deere (16%), Claas (13%). Whereby John Deere (43%), Case IH (22%) and New Holland (16%) dominate in the most attractive >300 HP segment.

The import of grain harvesters to Ukraine in 2012 ammounts at $ 153 mln. If you add to this customs value of headers, the total import of grain harvesting segment will increase considerably. Claas (29%), New Holand (26%), John Deere (23%) and Case IH (13%) traditionally became market leaders.

The market volume and dynamics push US and EU producers to find solution to local SKD assembling. The agricultural ministry, headed by Mr. Prysiazhnuk continues to negotiate the local production with John Deere and Sampo for new and again. The local Khersonmash plant assembled and set off into field the first Claas combine this summer. In the meantime, the absence of the ongoing financing restrains implementation of the joint projects, on the one side, and high political risks do not allow foreign investments to start full-right joint production in general meaning, on the other side. Without reference to JV solution, the need for up-to-date agricultural equipment of Ukraine is satisfied for 50% only. That makes US and EU producers pay closer attention to Ukrainian market.

The level of competition in core market segments proves the equipment suppliers steadily move from price competition to local distribution and after-sales support. Hence, the market players will actively develop local dealer network and provide better after-sales support in middle and long-term time period.

Feel free to approach MARCOM for the detailed and up-dated import analysis, incl.: TM, models, invoice value, importer name, supplier name, country of origine, etc.

Valeriy Berlet - Marketing Communications MARCOM Director