Import volume of new tractors to Ukraine in segment (260-390 hp) achieved 1 441 units, what accents trend constancy at agricultural machinery market. Agrarians buy high-power tractors, wide-cut soil cultivating and seeding agricultural machinery, and also use these tractors as transport vehicles for harvest transportation to storehouse or to processing enterprise. It reduces the price cost of agricultural production, raises enterprise’s competitiveness, and, as a result, makes production produced in Ukraine more competitive at world markets.
There is no own tractors manufacturer at this segment in Ukraine, this market is not regulated at the expense of limits or preferences, that is why every brand is in equal conditions and its popularity is determined just by domestic agricultural producer according to results of production tasks implementation and to quality of service. More than after 15 years of deliveries to our Ukrainian market the leaders of this segment are determined, they are representatives of “Major League”, leaders of world agricultural machinery construction, brands of 5 corporations from the USA and the EU: John Deere, CNH (Case IH, New Holland), AGCO (Fendt, Challenger), CLAAS, Same Deutz-Fahr (Deutz-Fahr Lamborghini).
This segment is rightly considered one of the main agricultural machinery market indicators and helps the major market player or buyer to understand how one or another brand is popular, which of them has advanced innovative technologies that are necessary for successful business.
At the results of 2013 from 1 441 tractors by capacity (260-390 hp) that were delivered to Ukrainian market, 1 440 tractors were produced by the leaders of world agricultural machinery construction.
Corporations CNH (Case IH, New Holland) and John Deere have the most firm positions and they both control more than 70% of deliveries in this segment of Ukrainian market. Every corporation delivered to its dealers more than 500 tractors (260-390 hp) during last year. Although corporation CNH (Case IH, New Holland) could take the first row in the leaders table by the year results, many agricultural machinery market specialists consider that corporation John Deere has big resource in this segment for increasing its share, because tractors of 8th series in spite of the fact that they are being sold “from wheels” for the highest price among many competitors and that contracts for them must be conclude for half a year earlier before delivery. Any of agricultural machinery manufacturing companies can’t boast of such result at Ukrainian market, because many of them have carry-over stock at regional dealers’ grounds.
Third place by last year results took corporation AGCO. Last year an American manufacturer could partially renew dealer network by involvement of new dealers, and also could change sale policy of tractor Fendt at Ukrainian agricultural machinery market. It became possible to purchase premium class tractors of German manufacturer Fendt from every Ukrainian dealer starting from 2013. Till 2013 these tractors were supplied just by exclusive distributor in Ukraine. Thanks to events of 2013 AGCO Corporation delivered record number of tractors Challenger and could get high result at tractors Fendt deliveries to Ukraine.
German manufacturer of tractors Claas, as before, has not big, but stable part of Ukrainian high-power tractors market at this segment. Claas supplies to Ukrainian market tractors with capacity 315-364 hp, half of supplying volume goes to model Axion 940 (340 hp).
Successful work of Corporation Same Deutz-Fahr during last years allowed that manufacturer to take deserved position at tractors market in this segment. In Ukraine there are supported tractors with capacity 260-270 hp, more than 70% of deliveries go to the most popular model Agrotron X 720 DCR. Machines are supported under brands Deutz-Fahr and Lamborghini. One can surely suppose that with appearance of tractors with capacity higher than 270 hp in Same Deutz-Fahr model raw this manufacturer will be able to increase its share at the Ukrainian market.
As participants of agricultural machinery market predicted, the current year will be very difficult for most importers of agricultural machinery. It is connected with political factors, hryvna devaluation, cessation of agrarians financing, and also with high level of market saturation according to deliveries results and to availability of carry-over stock of 2013 at dealer storehouses.
It will create big competition in straggle between suppliers for not numerous solvent clients. They will have to work with minimum, zero, and in some situations with negative profitability level, at that giving delay of payment to agricultural producer, carrying costs on financing and risks connected with non-payments. Hereby year 2014 can have many in common with crisis year 2009, when delivery volumes of agricultural machinery to Ukraine decreased in three times in comparison with record year 2008.
Vitalii Mietolkin
Web-portal about agricultural machinery market: runo-agro.com
Translated by Natalia Dragnieva
https://www.facebook.com/natalia.dragnyeva
