Ukraine's increasing demand for agricultural machines

A growing interest in modern agricultural equipment has been observed among Ukrainian
farmers. This is a good prospect for Polish companies which intend to cooperate with
Ukrainian agri-sector.

More than $ 200 million has been invested in tractors delivered to Ukraine since the beginning of 2016. According to the State Fiscal Service of Ukraine, this already accounts for 21.6 million dollars more than in whole 2015. Both high area farms; larger than 2-3 thousand hectares as well as smaller ones of less than 1 thousand hectares invest in modern agricultural machines. 

Ukraine's economy, though still depressed, presents great potentials.  Ukraine's positive GDP is owed to agricultural sector's great performance. "This is the only sector of the economy to avoid the recession which stared in the middle of 2012" - observes the Centre for Eastern Studies in its analysis of Ukrainian agriculture transformation. World's most fertile soils and the climate favourable to agriculture cannot make up for insufficient equipment necessary to boost agri-production. 

The last six months have indicated that Ukraine's agricultural machines market situation has gradually changed. Increased demand for tractors, combines and farm equipment has been observed. This is good news, especially for manufacturers from the West.

The winning streak for Ukrainian importers of agricultural machines

Import of tractors to Ukraine amounted to 208.3 million dollars in 2016's five months.   This is only about 21.6 million dollars less compared to 2015; 229.9 million dollars was 2015's result, the info was presented by the State Fiscal Service of Ukraine. A similar up-trend can also be observed in other agricultural technology segments. According to the State Fiscal Service of Ukraine's data, in 2015 Ukraine imported machines and equipment for harvesting, sorting and storage for the total amount of 176.9 million dollars. However, it has already been 153.1 million dollars in the first 5 months of 2016. 

Even smaller farms have been upgrading their equipment, 

Ukrainian agravery.com portal informs that farmers invest not only in equipment but they also prosper for new technologies. They are not afraid to buy more expensive machines from well-known manufacturers.

- Recently we have sold to large companies which have bought powerful tractors and combines. Farmers have usually chosen Belarusian and domestic appliances. For three years small farms have become a part of the noticeable trend; they would rather not invest obsolete, low-cost technology. Farmers opt for modern solutions - Antuan Rebijar, Business Director of New Holland Agriculture in Ukraine said in an interview with the portal agravery.com.

Manufacturers estimate that the agricultural machines market will increase by 40% in 2016. Half-year results indicate that this optimistic scenario is quite feasible.  

- In 2015 the importers who put farmers on top of their priority lust saw turnover increase.  They reported high profitability and acquired funds for investments - says Vladimir Mirnenko, "Pöttinger Ukraine marketer. - This trend encompasses almost all technology and smaller tractors segments -  he adds.

The International Fair of Agricultural Techniques EuroAgro - a golden opportunity for polish manufacturers.  

Data related to agricultural machines import and the upward trend suggest that the market is open to modern technologies from abroad. The Lviv's Międzynarodowe Targi Techniki Rolniczej EuroAgro is a perfect chance opportunity to verify Ukrainian farmers' purchasing potentials.  Polish entrepreneurs should see the expo as the opportunity they cannot miss.  The organizers - Targi Kielce and GalExpo Ukrainian exhibition centre in Lviv have paved the road to establish international cooperation. For 22 years Targi Kielce has been the stage for International Fair of Agricultural Techniques AGROTECH; this is a great spring-board for a new expo.  2016's AGROTECH was a record-breaking event with the exhibition area of ​​62,500 square meters; the expo attracted 64 330 visitors and 700 exhibitors from 17 countries.

EuroAgro will be held in Lviv from 17 to 19 November 2016. We look forward to seeing you.