During January-August 2015 the imports of agricultural machinery and equipment decreased by one third compared with the same period of 2014. In particular, supply of agricultural machinery for soil preparation or processing reduced the most - by 69 million (-42%) to 97 million dollars, supply of tractors – by 65 million dollars (-33%) to 133 million dollars and equipment for harvesting or threshing crops - 18 million (-12%) to 131 million dollars.

The reduction also affected Ukrainian domestic production. Total number of produced equipment decreased by 35 ths. units (-28%). The output of tractors was reduced by more than 1100 units: from 6937 units of cars in January-August 2014 to 5758 for the same period in 2015.

Exports of agricultural machinery in value terms fell by almost half (-48%) to 113.47 million dollars. to almost 59 million dollars, compared with 2014. The largest reduction occurred in the segment of tractors: -65.1% (561 units), which is 28.25 million dollars in value.

The slowdown of tractor fleet renewal in future may decrease agricultural productivity and effectiveness of agricultural enterprises. The reasons that forced farmers to save, according to experts of UCAB, are devaluation, additional import duties, credit inaccessibility and lack of own financial resources.

Association "Ukrainian Agribusiness Club" 

3 floor, 146 Zhylianska Str.

01032 Kyiv, Ukraine

Phone/Fax: +380 44 2362097/79

feschenko@ucab.ua 

Anna Feshchenko

www.ucab.ua

The Association "Ukrainian Agribusiness Club" (UCAB) www.ucab.ua was founded in 2007 to protect the economic and professional interests of players of agribusiness in Ukraine. UCAB is a unique platform in Ukraine for establishing business contacts between the leaders of agribusiness, improvement their work and dialogue with the government. UCAB actively supports Ukrainian producers in establishing and maintaining international business relations. The Association consists of the largest producers and processors of agricultural products in Ukraine.