Shufani: Variant Irrigation to capture 60% of irrigation systems market in Ukraine
The company Variant Agro Build presented a new trademark, Variant Irrigation. The company's strategy is to cover 60% of the irrigation systems market within two years.
"We currently hold about 35% of the domestic market of irrigation systems sold this year. But our goal is to win at least 60% of the market within two years," states Daniil Shufani, the owner of Variant Agro Build.
The professionals of Variant Agro Build explain that this is not a new field of business, but a shift of the company development focus. Moreover, this market is developing rapidly now and grows every year. According to the company's specialists, the demand for irrigation equipment this year has increased by more than 30%, and next year this figure will continue to grow.
The company notes that the focus on irrigation systems will allow Variant Agro Build to respond effectively and expeditiously to the emerging needs of producers of agricultural goods, arising from the growing demand for high-quality domestic agricultural machinery.
Ilya Zhemelinsky, the company's commercial director, adds that the company has also opened a new representative office in the south, in Melitopol. According to him, last season's severe drought forced many farmers to think about irrigation.
"In general, our customers can be segmented into three main groups. The first and the largest one is focused on the financial efficiency of investing in irrigation. The second group wants to ensure a guaranteed harvest. For them, the additional benefit in the form of profitability is less important, since the priority is the "safety" of the business and its predictability. The third group invests in irrigation under the influence of other external factors. As a rule, it is the requirement of suppliers or buyers," he explains.
Daniil Shufani notes that the agrarians were the core clients during the first three years of the company's operation. Now the situation has slightly changed towards big companies.
"Many companies are already convinced of our competence, quality, and fast service," marks Daniil Shufani." We try to satisfy all requests of our clients within 24 hours."
In addition, the state compensation for the purchase of Ukrainian agricultural equipment offered a strong impetus for the development of the economy and the irrigation industry. The company points that agrarians receive up to 30% of state compensation for the purchase of equipment by Variant Agro Build.
"Today our company offers various machines: pivot, linear, hippodrome. This year we launched the first double-wing machine with water intake from the canal. I think that's a great achievement for our company. We already have about 10 requests for this type of equipment for next year. We are planning to launch drum-type irrigation next year," says Daniil Shufani.
Ilya Zhemelinsky notes that Variant Agro Build launched a GPS system for pivot machines last year.
"Over the past year and this season, our customers have been able to see how effective and convenient this system is, that it saves both human and financial resources. We will continue to develop and improve the remote access system in the future," he adds.
The Accounting Chamber of Ukraine estimated irrigation's potential positive impact on the country's GDP at more than 0.2%, or UAH 8.8 bln.