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22 September 2019

Machinery and equipment

First of all, Ukrainian farmers prefer imported machinery: all self-propelled sprayers, 98 out of 100 combine harvesters, 95 out of 100 tractors, 89 out of 100 plows, 55 out of 100 spreaders of mineral and organic fertilizers, 46 out of 100 seeders, 25 out of 100 disk harrows sold in 2017 in Ukrainian market were imported from other countries. Moreover, imported equipment is much more technologically advanced and more expensive.

Following the low volumes of agricultural machinery imports in 2014 and 2015, the reason for the situation were political and economic instability inside of the country. During 2014-2015 Ukrainian farmers feared investing in equipment, especially in expensive machinery with a long payback period, primarily tractors, combine harvesters and self-propelled sprayers. During the period, agricultural producers bought the most necessary equipment. The annual import volumes of agricultural machinery in 2014 and 2015 were twice as low as in 2013.

Starting from 2016, the situation inside the country began to normalize, accordingly, technology imports began to grow and reached 2013 levels. A record amount of agricultural machinery was imported in the last 10 years with a total volume of agricultural machinery imports of 1.5 bln USD in 2017.

In the first 7 months of 2018, imports of agricultural machinery amounted to 563.1 mln USD, which is 38% less than the indicator for the same period last year (907.8 mln USD). During first six months of 2018 export of agricultural machinery totaled 29.5 mln USD, which is 26% less than the same period last year ($ 40 million).

COMBINE HARVESTERS

In January-July 2018, 4 countries accounted for 91% of all imports of grain harvesters to Ukraine: Germany - 46%, Belgium - 24%, the USA - 14% and Poland - 7%.

Foreign trade of combine harvesters

Source: State Statistics Service of Ukraine 

TILLAGE EQUIPMENT

Imports far exceeds exports, because the quality of domestic technology is lower compared to foreign analogues. Instead, domestic technology is cheaper than imported.

In the structure of imports of soil machinery in the first seven months of 2018, Germany accounted for 43%, the United States - 18%, France - 8%, Sweden - 7% and China - 5%. Ukraine exported its tillage machinery mainly to CIS countries, which accounted for 77% of total exports, the rest 23% goes to Europe. Top 3 countries-buyers of Ukrainian soil-cultivating equipment: Russia - 50%, Moldova - 19%, Germany - 9%.

Foreign trade of tillage equipment

Source: State Statistics Service of Ukraine 

TRACTORS

In the period from January to July 2018, tractors were imported in the amount of 392.2 mln USD, which is 10% less than in the same period last year. 20% of tractors were imported from the USA, Germany - 15%, China - 12%, Belarus - 11%, Netherlands - 10%, France and Poland - 7%.

Foreign trade of tractors

Source: State Statistics Service of Ukraine