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[Alpha Biz=(Chicago) Reporter Paul Lee] Daedong, an agricultural machinery company, has entered the Turkiye tractor market, speeding up its inroads into the Middle East and African markets.
Daedong announced on the 19th that it has signed a contract with Turkiye Aral Group to supply tractors worth about 350 billion won (20-140 horsepower) for five years from January next year to December 2028. The contract size is about 24% of last year's sales.
Turkiye is the world's fourth-largest tractor single market after India, North America and China. The market is growing rapidly, with the market size increasing by 25% from about 54,000 units in 2020 to about 68,000 units last year. Of these, medium to large tractors with 61 to 140 horsepower account for about 70%. Turkey's native agricultural machinery manufacturers and more than 20 multinational agricultural machinery manufacturers, including Japan, Europe and the United States, are fiercely competing.
In particular, the Turkye government is increasing the amount of tractor purchase subsidies from 24 billion lira (1.1 trillion won) in 2021 to 54 billion lira (2.4 trillion won) this year to replace 2 million old tractors for more than 20 years as part of its rural modernization project.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
