Daedong begins full-scale tractor exports to Ukraine
Daedong begins full-scale tractor exports to Ukraine
- First shipment worth KRW 30 billion on its way after a tractor supply contract with a Ukrainian agricultural machinery distributor last year
- Daedong, the first in the industry to enter the Ukrainian commercial tractor market, expands its presence by joining efforts to rebuild Ukraine’s local agriculture
- Event to celebrate the first tractor shipment held at Daedong's Daegu factory on January 15, attended by members of the Ukrainian Senate and other special guests
Daedong (co-CEOs Kim Jun-Sik and Won Yu-Hyun), a leader and pioneer in future agriculture, announced on January 16 that it has begun full-scale shipments of its tractors to the Ukrainian market.
This shipment is for the first order placed by a regional distributorship contract signed last November with a Ukrainian agricultural machinery importer, to supply tractors worth KRW 30 billion over three years. The contract remains the only successful case of a Korean agricultural machinery company commercially entering Ukraine. Daedong plans to ship 20 units of its medium to large-sized PX/HX tractors, and then gradually expand its supply over time.
According to KOTRA's “2025 Ukraine Entry Strategy” report, Ukraine has lost approximately 30% of its overall agricultural potential, with 20% of its farmland occupied by invading forces. In particular, the Kyiv School of Economics (KSE) estimated Ukraine's agricultural sector damage at over USD 80 billion (approx. KRW 117 trillion), with losses to agricultural machinery estimated at USD 5.8 billion (approx. KRW 9 trillion). The local tractor market has indeed shrunken in size, from an annual scale of 30,000 units in 2021 to 16,600 units in 2022. Yet, Ukraine's agricultural industry is projected as a promising industry with real potential to grow. This is due in large part to its low rent, fertile soil, favorable logistics conditions, and low yield per hectare, leaving much room for improvement from a productivity standpoint. Accordingly, Daedong expects the tractor market to grow again once the rebuilding begins.
The company has been conducting an agricultural rebuilding project since 2023 to enter Ukraine’s agricultural machinery market. Last October, it delivered ten test tractors in the 100~140 horsepower range to the local market, and Daedong's engineers visited various locations to train locals on how to service their tractors. Daedong explained that its tractors are highly regarded by local Ukrainian farmers in terms of their quality and service.
Starting with this first batch of tractors, Daedong plans to actively expand its business in Ukraine from 2025. Moreover, by cooperating with the Ukrainian government, the company intends to participate in rebuilding the local agriculture scene and expand its market presence through various channels, including training programs to build up the capacity of young local farmers.
