Despite the crisis caused by the COVID-19 epidemic, AMACO has consistently maintained its position in the Ukrainian market.
This was announced during a joint press conference of AMACO and OTP-Leasing, said AMACO CEO Dmitry Borodiy.
He noted that AMACO started preparing for an emergency situation, given the crisis peaks in the country and the world as a whole, five years ago, restructuring its business strategy.
The quarantine situation in connection with COVID-19 is not an emergency for us, as our company has a strategy. We are regular players in the agricultural market of Ukraine, so we have provided several solutions during the crisis, which allow the company to exist. And I would say exist for more than five years.
The Director General noted that the introduction of quarantine restrictions had a significant impact on world production, in particular on the supply chain and logistics. The market trend has become lower, but the agricultural business cannot be stopped.
Every year Ukraine buys more than 2,000 tractors, 600-1000 combines, 500 plows, etc., 300 sprayers. Agricultural enterprises will not cease to function, as Ukraine is one of the key suppliers of agricultural products in the world. This year, the volume of equipment purchases may decline, but demand is and will be. Those farmers who desperately need to upgrade the technical park will upgrade it. Those who are able to do without the equipment they have, will still be interested in service and purchase of spare parts. This is what, first of all, our company emphasized.
This year, AMACO has improved the service part, introduced a number of updates. In addition, the company periodically updates the range of spare parts and orders everything you need in advance. AMACO is going to “stay on the wave” of agriculture through the sale of services and spare parts.
In particular, we have an extended warranty program, for example, tractors have a 3-year warranty. Technology is the locomotive of business that makes it sustainable. But, even given the decline in purchases, AMACO is firmly on the surface of the business. Our task is not just to sell equipment, but to be a company that represents a certain value for the market. We do not sell equipment, but the product, first of all.
The company notes that buyers of AMACO products are always a priority. Auxiliary tools for the service part – installed sensors on the equipment, thanks to which online monitoring of engines is carried out for timely scheduled maintenance. Moreover, the company’s business is moving in the direction of working under service contracts, under which it currently has more than 100 units of equipment.
Such measures help in doing business in times of crisis. Dmytro Borodiy notes that the company had to freeze several projects, but the company is ready to return to them as soon as the situation becomes more stable.
In addition, OTP-Leasing, which provides a financing instrument in the form of profitable partner programs for the purchase of AMACO equipment, helps to maintain the course of stability in the AMACO market. Thanks to the terms of these programs, AMACO can offer customers the purchase of Massey Ferguson equipment on lease at a rate of 0% per annum in dollars and euros for up to 3 years. The company also offers favorable conditions for the purchase of irrigation equipment.
Vadym Kudriy, the head of the company’s corporate sales department, spoke about the available financing programs. In particular, the program provides funding in hryvnia for 2 years at 0% per annum with an advance of 30%. Such programs are mutually beneficial and allow farmers to structure and plan their own investments. This program has no analogues in the market.
Moreover, OTP-Leasing noted that now the company can offer an EU grant program, which is subject to AMACO equipment. Under the program, the farmer receives 10% of the amount of funding. The grant program is essentially a discount on equipment. OTP Leasing has the opportunity to finance equipment for € 17 million