The Ukrainian agricultural sector, revered as the breadbasket of Europe, is crucial to both European and global food security. However, the Russian invasion of Ukraine in February 2022 plunged the nation into chaos—and by extension, the world—damaging critical infrastructure, disrupting supply chains, and displacing thousands of skilled workers. Nearly 30% of Ukrainian farmland has been mined, logistics routes have been severed, and the toll on animal husbandry, crops, and machinery has been devastating.
Author Radiana Pit | Copperberg
Photo: Freepik
Against all odds, Titan Machinery Ukraine demonstrated outstanding resilience and leadership, setting new standards of customer loyalty and innovative after-sales service. Olga Litvinchuk, the company’s Aftersales and Precision Farming Director, shared their inspiring journey during a keynote presentation at the Aftermarket Business Platform 2024 in Copenhagen. Litvinchuk’s presentation revealed how her company overcame seemingly impossible challenges, helping to stabilize Ukraine’s agricultural industry and restore its global position.
The Breadbasket: Ukraine’s Agriculture Under Siege
Ukraine’s agricultural market has immense potential—though it represents only 6% of Europe, Ukraine accounts for 19% of the continent’s agricultural land and 27% of its arable land. This vast expanse is why Ukraine focuses on key crops like cereals, oilseeds, and sugar beets for global markets.
Before the conflict, sea routes were the primary export channels, but now much of the produce travels overland through Europe. As of 2023, 59% was exported to Europe, 12% to Asia, including South Asia and the Middle East, and 7% to Africa. However, these export numbers, a drop compared to 2021, are a reflection of the war, which has severely impacted Ukraine’s logistics and caused $40 billion in total losses.
Titan Machinery: Adapting to Adversity
Titan Machinery’s response to the crisis has been nothing short of remarkable. Amid the war, the company made drastic adjustments to protect staff and ensure continuity, including relocating machinery and spare parts from missile-affected regions to the western parts of the country. Despite facing the dangers of operating in mined areas and a severe shortage of qualified workers due to military drafting, Titan found innovative solutions to continue serving farmers effectively.
Although the industry experienced a sharp decline between 2021 and 2023, as key customers stopped renewing their fleets and investments dried out, the company viewed the situation as a delayed demand, anticipating a rebound sooner or later for which they needed to prepare. And so they focused on understanding immediate needs and forecasting future demand.
While many of its competitors scaled back their operations and left their businesses stagnant, Titan invested in growth, preparation, and long-term development. As it was impossible for customers to invest in new fleets during the crisis, the company helped them to overhaul and repair their existing machinery as much as possible. Even those who had to delay maintenance and repairs were considered critical, as the company anticipated their demand for faster and more efficient service later on. This foresight led Titan to adopt a Good, Better, Best sales strategy for customers in urgent need of their top-tier solutions.
After-Sales Service: Creating a Competitive Edge
Titan’s dedication to service speed and availability during the conflict gave them a crucial competitive advantage. They knew that in the unpredictable conditions of war, farmers needed support quickly, and they delivered, even when restrictions were in place. With curfews limiting fieldwork, farmers might be allowed to work through the night, but technicians were banned from entering the field. As such, they implemented online consulting in order to be accessible 24/7 for their customers.
Reinforcing this competitive advantage and customer service ethos was the company’s emphasis on personal communication. As the stress and uncertainty of the conflict had affected everyone equally, direct and meaningful communication with customers had become more important than ever. Litvinchuk and her dedicated team of 130 staff members—including 50 technicians, admin personnel, and 40 parts and service sales reps—engaged personally with customers. Site visits, phone calls, and steady support enabled the company to build stronger, more reliable relationships with its clients during a time of intense psychological duress.
Precision Farming: A Solution for Long-Term Success
Titan Machinery was able to stay ahead with support from suppliers like CNH and Trimble. CNH backed Titan with marketing programs, customer discounts, and even a new two-year standard warranty, which is an innovative offering in the heavy machinery industry. Likewise, Trimble provided free subscriptions for navigation and autopilot systems, enabling the company to deliver vital, comprehensive support to help its customers navigate difficult times.
Titan has also pivoted towards Precision Farming, deploying autopilots, navigation systems, and agro-spraying drones. While drones remain somewhat taboo in certain markets, in Ukraine, they’ve become indispensable, particularly for hilly fields where traditional sprayers fall short. Advanced tools like the ones mentioned enabled Titan to offer its customers solutions that not only improve efficiency but ultimately reduce costs. For example, green-on-green spraying—which cuts down on crop waste and increases yields—is not only an immediate cost-saving solution but also a strategic investment to lower costs in the long term.
Understanding the financial barriers faced by their customers, the company also worked closely with banks to create tailored financial tools that support both equipment sales and after-sales services. Thus farmers received the financial benefits they needed to adopt new technologies, particularly when market instability had many competitors scaling back. As others retreated, Titan geared up to service multi-brand fleets, and thus secure its position as a leader.
The company’s redirected focus on overhauls has been an important aspect of this strategy. As the need for new machinery decreased, Titan has successfully leveraged the demand for repair and upgrade services. The financial flexibility the company has provided, combined with the cost-saving advantages of precision farming and such innovative tools, significantly increased customer value. Considering that Ukraine is a market dominated by about 100 key players who control over 30% of the country’s agricultural land, these cost-effective solutions were and continue to be very valuable for customers who otherwise know exactly how to calculate their operational costs.
Service Innovation: Titan’s Mobile App and Online Support
To streamline their new aftermarket and field service processes, Titan introduced a mobile app that allows technicians to receive job requests and pre-approved quotes in real-time. Once on-site, technicians can quote additional services, register work done, upload pictures, and have the customer sign off digitally. It’s a seamless integration that ensures fast, accurate invoicing and cuts down on the time spent processing paperwork.
The app also tracks the mechanic’s time and integrates the data directly into their ERP system, ensuring real-time updates and faster invoicing. This system minimizes work in progress, optimizes productivity, and tracks efficiency—all crucial for a business operating in a high-pressure environment.
Titan plans to develop the app further with a lead generation feature. If a mechanic notices a potential service opportunity while working on one machine, they can register it as a lead. Should that lead turn into a sale, the mechanic earns a bonus, thus encouraging proactive engagement and growth.
Future-Proofing the Workforce: Titan Academy
Despite the challenges posed by the ongoing war, Titan continued to serve its customers remotely. The company established an online consulting team that consists of ten highly specialized professionals in areas ranging from electrics and hydraulics to product knowledge. Remote consultations, including online pre-delivery inspections (PDI), enabled them to respond strategically to the broader labor shortage and travel restrictions exacerbated by the war.
Knowing that the threat of military drafting could significantly impact staffing, Titan planned for every eventuality and partnered up with six universities on a trainee program that would secure the next workforce generation.
The company has ten workshops, where there are always two to three trainees ready to step in. Many of them have already transitioned to permanent positions whilst others continue their education. This was initially a short-term solution to navigate the crisis and ensure there are always members on staff. However, due to its proven success, it is now evolving into a more comprehensive program, with plans to formally establish Titan Academy next year.
Future Outlook: Titan’s Legacy of Resilience
Despite the turmoil, Titan has remained remarkably resilient. The company focused on after-sales services during the downturn, opening new locations and upgrading existing ones. With an absorption ratio close to 100%, the company has managed to maintain financial stability even as the industry saw a sharp decline.
Litvinchuk’s statement on this is most compelling and inspiring: Yes, this country has a war. This country was down, the industry was four times down. But we managed to maintain a profitable business and get ready for the industry, which is now three times up. We are feeding the world, our farmers are feeding the world.
Titan’s role in supporting global food security is a responsibility they take seriously. The company is working tirelessly to ensure that Ukraine’s farmers have the tools they need to continue their vital work. And while the war has caused untold hardship, even the eastern regions of Ukraine, bordering the enemy territory, are now seeing investment in land and equipment.
Litvinchuk’s closing remark carries this resilient spirit: The human being is such a creature, that gets used to even such a reality. And so, we ensure food security in the world.
