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John Deere pushes for faster expansion into Poland

U.S. farm equipment producer John Deere has been present on the Polish market for two years now, however, it is not satisfied with its achievements.

The company is planning a faster expansion with a view to developing a dealer network based on independent entrepreneurs. A strategy that has seen its number of selling points rise from 17 to 23 this year alone. The president of John Deere Polska, Mirosław Lesczyński, says that the company is planning to increase its turnover by zł.50 million this year.

According to its estimates in 2005, the value of farm equipment market in Poland reached zł. 2 billion. Leszczyński says that the market is very promising as a lot of old equipment needs to be replaced, and the purchase of new machines has been made easier with EU funds from the Operational Program Sector. He concedes, however, that the main problem John Deere is facing is the disintegration of Polish agriculture.

The average farm is about 10 ha, while John Deere specializes in providing equipment for bigger farms. The next barrier, also a significant one, is money, with the prices of John Deere's machines ranging from zł.120,000 to 800,000.

(WBJ 18.ix.06)

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