One year of war in Ukraine

Ukrainian manufacturing continues despite the war: How the Employers help their members to find new markets in the EU

With ILO assistance, the Federation of Employers of Ukraine supports members to seek new business partners and markets by facilitating networking between Ukrainian and EU companies.

News | 22 February 2023
BUDAPEST (ILO News) - Between 25-28 January, 2023, ten Ukrainian companies - members of the Federation of Employers of Ukraine (FEU) - participated in the AGROmashEXPO farming trade fair organised together with the AgrargepShow agricultural machinery showcase in Budapest, Hungary. Around 300 exhibitors participated in the event, which attracted almost 44,000 visitors.

The participation of Ukrainian agricultural equipment manufacturers in the event was particularly important, given that the sector is currently operating at 20 per cent of its pre-war capacity due to the significant reduction in demand in the domestic market. The Ukrainian agricultural machinery stirred high interest among visitors, and numerous follow up partnerships are in the pipeline. The early results are already promising.

Three participants, namely “Zavod Kobzarenka” LLC (a leading manufacturer of more than 100 types of agricultural equipment), “Boguslavska Silhosptechnika” JSC (a leading manufacturer of sprayers and equipment for liquid fertilizers application) and “Elvorti” JSC (a leader in tillage and seeding machinery and equipment) have negotiated new contracts with Hungarian dealers. This was based on a successful collaboration in 2022 when the Ukrainian companies managed to fulfil all contractual agreements despite the operational disruptions caused by the war and close proximity of the factories to combat zones.

The Ukrainian company “TAD” LLC also generated great interest among the Hungarian attendees of the fair. The company specializes in manufacturing trailers and provision of transport services, including tailored solutions for extremely large and heavy cargo. Several Hungarian companies initiated negotiations with TAD with a view to contracting the company for the transportation of agricultural machinery from Ukraine in 2023.

“Vinmashpostach” LLC, manufacturer of a wide range of high-quality agricultural machinery and equipment which are unique in the Ukrainian market, signed a memorandum of intent to adapt its machinery to the standards of interested Hungarian buyers for shipment in 2023. In addition, the company signed a preliminary agreement on the shipment of equipment for automatic cleaning of solar panels.

We are extremely satisfied with the results of our participation in AgromashExpo-2023 and have already agreed to prepare the first shipments this year. Although the Hungarian market is very competitive, we see strong potential to strengthen our presence here. FEU support was instrumental in making all the arrangements and connections necessary for our participation. We are relying on further support from the FEU in promoting the agricultural machinery manufacturers on the EU market.”

Yuriy Andriyash, Director of “Vinmashpostach” LLC
The FEU supports its members in seeking new business partners and markets by facilitating the networking between Ukrainian and EU companies through trade fairs and matchmaking events. The service is provided via a Help Desk which is currently developed with ILO support. Additionally, the new service encompasses capacity building and training for enterprises to enable them to promote their products and comply with EU trade regulations. Finally, companies also benefit from market intelligence and information that helps them to make informed decisions when identifying and exploring potential export markets.