It becomes more profitable for Ukrainian farmers to sell spare parts than sell agricultural machinery.
According to Dmitry Borodiy, General Director of AMACO Ukraine, the profitability of selling agricultural machinery is approximately 5-8%, and spare parts can reach 20%, Agravery reports.
“In the past two years, we have concentrated on the development of after-sales services, the upgrading of the skills of service engineers,” he adds.
Indeed, almost every month in Ukraine there are new service centers. In particular, the “Agroalians” Trade House opened a structure for servicing and selling equipment for Case IH in Kropivnitsky, in the Vinnytsia region the service center “RDO Ukraine” has begun to work, which is to serve the John Deere machines. in the Odessa region, the service center of the company “Zeppelin Ukraine” appeared “.
Some companies begin to train their own staff on the basis of these centers. For example, Agrosem has opened the School of Service Engineers, where they are going to train graduates and students of the last courses of agrarian universities how to work with machinery and to teach them standards of service.
In Ukraine, there is still a lot of old machinery, including Soviet-era experts explain the development of the spare parts market. For example, a significant amount of equipment Ukrainian farmers bought in 1998 under state guarantees.
Also, the country is constantly supplied with second-hand equipment from Europe and the USA. It is better than “Don” or “Niva”, but also requires high-quality repairs. Starting from the replacement of filters, hydraulic hoses and ending with the running and the engine.
The development of the segment was also affected by the crisis. In 2014 agricultural producers stopped buying new cars, and repaired the old ones, because of the economic crisis that arose due to political events in the country and military aggression from Russia.
“Therefore, the market spare parts and increased at times, — explains Valery Berlet, director of the analytical company “Markom” — But over time, everything returned back on track. Two years later, the agricultural machinery became very demanded, and in 2017, the import of cars reached a record $ 1.2 billion.”
But the market for spare parts is developing, as well as the market of agricultural machinery, the expert underlines. At present, it is $ 400 million, and a large part of it is occupied by the CIS countries. The leader is MTZ.
According to Berlet, the spare parts market occupies about 30% of the sales volume of equipment. A large percentage is because of the low quality of tractors from the CIS compared to European and American brands.