Development strategy for The Kobzarenko
LLC “Zavod Kobzarenko” is not only a well-known brand of Ukrainian agricultural machinery, but also one of the largest employers and taxpayers in the Sumy region. The enterprise supplies products to more than 32 countries around the world, adapting them to the requirements of different markets and maintaining competitiveness even in tough conditions.
Today, the company employs over 780 specialists and sets an ambitious goal — to produce and sell 4,000 units of equipment annually by 2028. At the same time, they understand that without innovation, modernization, and a flexible strategy for entering new markets, it is impossible to maintain positions.
In our material, the director of the Kobzarenko Plant, Serhiy Slyusarenko, talks about the development strategy, approaches to exports, the impact of state support on the industry, and why Ukrainian equipment remains indispensable for farmers even in times of global competition.
Director of the Kobzarenko Plant Serhiy Slyusarenko
Change in development strategy with the start of a full-scale war
The changes primarily concern the transformation of the team’s approach to the methods of achieving the set goals. With the beginning of the war, the Kobzarenko Plant began to pay more attention to the quality of planning, budgeting, analysis of the current situation, and forecasting.
The owners did a lot of work to involve the team in these changes. Previously, the pace of the company’s development did not allow for the creation of a clear management system. It can be said that a kind of operational chaos reigned at that time.
Now, in my opinion, the situation has improved significantly. Our strategy includes ambitious plans to double production and sales volumes in 3 years. And we already have a clear vision of how to achieve this.
Kobzarenko Plant delivered the first PBN-50 transfer bunker-accumulator to Austria Currently, the equipment of the Kobzarenko Plant is supplied to 32 countries. We understand that the domestic market is not limitless, so we will focus on entering new export markets. We plan to expand production, satisfying the needs of the domestic consumer, but we will place the main emphasis on export.
Challenges in logistics, supply of materials and personnel
At the beginning of the war, during the shortage of Ukrainian components, there were no mass disruptions in work. They gradually switched to foreign components, which ensured the stability of production.
The problem of staff shortage is relevant, as it is for most enterprises. The Human Resources Service is engaged in the search for employees. Cooperation with educational institutions is being established to attract students, in particular by conducting excursions and organizing industrial practice.
Previously, such work was episodic, but now a specialized training class is being created on the basis of the enterprise – a separate production area, where students will be able to undergo practical training. This will allow us to immediately identify promising employees and invite them to permanent work. In addition, adaptation will be carried out for new employees in this training class so that they can prepare for work in production workshops. The company also employs veterans. We adapt our former mobilized employees who have now returned from the front after injuries to work. But if a person previously performed difficult production tasks, now they are selected for easier work according to their abilities.
Position among Ukrainian agricultural machinery manufacturers
This year, the company plans to sell 1,800 units of equipment manufactured at the Ukrainian plant. This is a total figure for the domestic market and exports. The product portfolio is quite broad.
In individual positions – such as dump trailers, hoppers-loaders, sliding trailers and barrels – the company is the market leader. At the same time, the number of competitors is growing every year, and this is perceived positively: healthy competition does not allow to relax and motivates to develop both the company as a whole and its products.
Currently, the sales ratio is approximately 65-70% on the domestic market and 30-35% on exports. Last year, about 1,600 units of equipment were sold. The company is gradually increasing production volumes and expanding. The strategic goal is to double production by 2028, adhering to annually defined internal indicators.
Investments in production modernization
With the outbreak of the war, there were no thoughts about investments at all. On the contrary, some investment projects that had already been started were temporarily frozen. Gradually, the situation stabilized, and it became clear that farmers — the main customers of the enterprise — continued to need equipment, despite the war and all the risks. This became an impetus for the plant itself: if customers are ready to buy equipment at such a time, then the company should also invest in its development.
The purchase and installation of new equipment has been completed: a large-format laser metal cutting machine, a turning-milling center and a grinding center from Europe. These are modern machines with numerical program control. New production areas are also being created: the installation of a new metal shot blasting chamber has recently been completed. A new 14 m long painting chamber was ordered in early 2025, and its installation is currently underway.
The modernization of the equipment has significantly increased production efficiency. For example, a new large-format laser has replaced three plasma cutting machines at once, freeing up production space and ensuring significantly better cutting quality. This has a positive effect on the overall quality of the finished equipment. The updated lathes now perform work almost automatically: the operator only controls the process, which has significantly accelerated the production of parts.
An important component of the company is its own logistics with a fleet of trucks. In 2025, the transport fleet was replenished with new Mercedes-Benz tractors, which allowed us to further improve our logistics capabilities. The strategic goal is to move step by step towards the production and sale of 4,000 units of equipment in 2028.
Technological product development
In 2025 and beyond, the company plans to focus on developing more technological products. In particular, work is currently underway on barrels and spreaders with precise application, and it is also analyzing what other solutions may be interesting to Ukrainian farmers in the near future.
All new developments are mostly based on customer requests. The marketing and sales department constantly maintains close contact with farmers to take their needs into account as much as possible.
As technology is developing rapidly, in the future, simple equipment without high precision and technological capabilities will not be able to fully meet demand. Therefore, the company focuses on creating modern, more automated and robotic solutions to meet the challenges of the time and market needs.
Logo change and rebranding
In 2024, the company changed its logo for the first time in its entire existence. Once, the Kobzarenko Plant was a single production site in Lypova Dolyna. Today, it is several production areas in three different locations in Ukraine and a company in Poland.
The idea of the rebranding was to unite all these structures under one brand name, Kobzarenko. There was also a desire to update and “rejuvenate” the brand so that the visual identity would work to support sales.
Based on the results of this year’s analysis, we can say that the decision paid off: the indicators did not deteriorate, and the brand became more recognizable.
New logo of the Kobzarenko
Active participation in agricultural exhibitions
“Kobzarenko Plant” traditionally takes an active part in a large number of exhibitions – both in Ukraine and abroad. This affects not only the brand’s recognition, but also directly contributes to sales of equipment, opening new markets and establishing partnerships.
A very important aspect is live communication with customers and understanding their needs. After each exhibition, the sales department analyzes the number of new customers, the prospects of markets and the possibilities of entering new countries. At such events, a significant number of partnerships are created: new dealers, suppliers and customers appear. There has never been a single exhibition that has not brought positive results.
The largest exhibition remains Agritechnica — No. 1 in the world in terms of size and international influence. It is also very productive in terms of its client base, although work with foreign customers often lasts more than one year: sometimes acquaintance takes place at the exhibition, and real cooperation starts a year or even two later.
At the same time, there are exhibitions in Ukraine, after which the number of new customers is significant. The company always tries to present new products at such events. If there are no new developments, this is perceived as a stop in development, so we prepare something fresh for each major exhibition.
In Ukraine, the brand is well-known and is among the leaders among agricultural machinery manufacturers. Abroad, the level of recognition is still lower, but participation in international exhibitions is gradually changing this.
Response to farmers’ requests and modernization of equipment
Over the past 2-3 years, the number of requests from farmers has not changed significantly, but situational needs arise due to certain force majeure circumstances. For example, when borders are blocked and road transport is stopped, demand for equipment for transshipment of goods from rail transport or vice versa – for reloading onto trucks increases.
Along with such temporary requests, strategic ones are constantly coming in – for the development of new types of equipment. The company traditionally strives to present at least one new product at each major exhibition.
Sugar beet reloader PPB-50 Titan from “Kobzarenko Plant” during the Forum of Agricultural Innovations “New Grain”
Regarding precision farming, in particular barrels and spreaders for precise application, it is also a response to the needs of farmers. As a rule, first one request comes, then several similar ones, and when it becomes clear that the topic is gaining relevance, work on a new product begins. This allows customers to save resources and work more efficiently.
In parallel, existing models are being modernized: new technologies and solutions are being introduced, drives are being improved, and equipment is being adapted to modern farm requirements.
One of the largest taxpayers in Sumy region
The enterprise is one of the largest taxpayers in the Sumy region. Last year we paid about 300 million UAH in taxes. Currently, we employ 780 specialists, while before the war there were about a thousand employees.
One of the key priorities today is the development of exports, because this is an additional inflow of foreign exchange to Ukraine. At the same time, it is important to remember the overall effect on the economy: we purchase goods and services from other companies, and they buy products from us – this way the economy works, not stands still.
Export to over 32 countries
We work with more than 32 countries around the world. There is no magic here – the main thing is to make high-quality and practical equipment for an adequate price. We constantly participate in international exhibitions, and our export department closely interacts with dealers, studies their requests, analyzes trends and adapts offers to specific markets.
Another important area is certification and compliance with European and national standards of each country. This is a big job, because each country has its own standards and requirements, and the equipment needs to be adapted to them.
Competition abroad is very high. Many farmers prefer equipment from local manufacturers that have state support or compensation. That’s why we’re looking for our own approaches. For example, in the UK, they initially rented equipment so that farmers could try it out. When they were convinced of its quality, they started buying. This strategy worked well and gave us access to this market.
As for the vision of what modern Ukrainian agricultural machinery should be in order to be successfully sold in Europe and other markets, there are several key criteria. First of all, high quality. Then, accessibility, practicality, and ease of operation. And at the same time, the equipment should be high-tech, because mechanical engineering is constantly developing. Every year, new technologies, robotic solutions, and methods of material processing appear. In such a situation, it is important to “keep your nose to the wind” so as not to miss interesting and promising ideas that can quickly occupy the market.
Ukrainian equipment is usually more affordable than European equipment. To enter new markets, we set the lowest possible price, while maintaining high quality, which is close to European standards. There are also unique products in which we can be even more expensive than our competitors, but in any case, the price must be justified.
PBN 40 transfer hopper-accumulator from Kobzarenko Plant
State support
If we talk about agricultural machinery, the state has significantly helped us thanks to the 25% compensation program and the national cashback. Such decisions really protect the Ukrainian manufacturer, because it is much more difficult for European companies with their prices to enter our market. This is a significant contribution of the state, which is felt by all participants in the industry. Farmers are satisfied, and we, as producers, are too.
But it is also very important that we are less disturbed, we can do the rest ourselves.
The share of Ukrainian equipment in agricultural technology parks
Ukrainian equipment occupies a significant share in the equipment parks of domestic agricultural producers – approximately half. Its role is difficult to overestimate: without it, European and world manufacturers could easily enter our market, but their price level is much higher for Ukrainian farmers, and the speed of response to requests is lower. We try to respond promptly to the needs of customers and adapt equipment to their tasks.
Another of our strengths is the speed of deliveries. While imported equipment from the USA or Europe can take up to six months, we provide much shorter delivery times. Plus, logistics, spare parts, and service are all nearby, which makes the work of farmers more comfortable and reliable.
Looking to the future
After the war is over, I am convinced that we will gain greater certainty in our actions. Now every decision is made taking into account risks, many of which are beyond our control. When the security situation stabilizes, forecasting and planning will become much easier.
