The agricultural machinery sector provides the means of production for agriculture, the flagship of the Ukrainian economy. The sector has been growing by 22% annually since 2016. Demand in the domestic market is stable, underpinned by global demand for Ukrainian agricultural products and the consequent need for modern agricultural machinery and equipment. Government support has encouraged investment in manufacturing and helped to boost production volumes. Ukraine is competitive in such segments as soil preparation, seeding equipment and grain handling.
Thanks to Ukraine’s favourable geographical location, a ready supply of human capital (qualified agricultural engineers, industrial designers and skilled workers), its own resource base (metal-working, systems and components), cost-competitiveness and a booming domestic market, the sector is well placed to maintain stable long-term growth and a high return on investment in the manufacture of agricultural machinery.
Ukrainian agricultural machinery manufacturers have considerable experience of working with international partners. For example, Lozova Machinery supplies a wide range of up-to-date and cost-effective tillage implements, seeding machinery and tipping trailers to more than 22 countries in Europe, Asia and North America. Factory Kobzarenko LLC exports agricultural trailers and tanks to over 30 countries worldwide. The seed-cleaning and calibrating equipment made by Aeromeh LLC is available in 33 countries. Currently, Ukraine´s main trade partners are Kazakhstan, Belarus, Russia, Moldova, Uzbekistan, Poland and Romania. Exports to the EU and Africa are expected to increase.
Ukrainian agricultural machinery manufacturers regularly exhibit their products at international trade fairs. At AGRITECHNICA, the world’s biggest agricultural trade fair in Germany, Ukraine was represented in 2019 by 31 exhibitors (including manufacturers of both complete agricultural machines and of systems and components such as bearings, hydraulics and spare parts).
There are about 70 agritech start-ups in Ukraine at different stages of development and activity. Hardware and software integrators also operate in the Ukrainian agritech market and supply innovative agrisector solutions from leading international developers. In collaboration with SmartFarming, industry experts and other market participants, UNIT.City Innovation Park has created a map of the Ukrainian agritech sector showing all the main players. Please click here to learn more.
Stakeholders
DLG Ukraine brings together Ukrainian manufacturers of agricultural machinery and other agricultural product and service providers to build an alliance of exporters and to promote their export activities through trade events and training. DLG Ukraine arranges for its members to exhibit their goods at agricultural trade fairs in the EU, Central Asia and Africa.
The Ukragromash Association is part of the Federation of Employers of Ukraine. It represents machine-building manufacturers in negotiations with the Ukrainian Government and successfully lobbied for the introduction of a 25% subsidy for farmers buying domestically produced agricultural machinery and equipment.