John Deere

Deere & Company is one of the participants in the mechanical engineering market, which produces agricultural, logging and construction equipment, as well as provides a range of related services.

Tractors, combines and other agricultural machines are produced under the John Deere brand.

Performance indicators

2022: Internet-Connected Construction Machinery Market Share - 5.4%

Data from the 2022 Counterpoint Global Connected Construction Machine Market Report

John Deere in Russia

The first deliveries of John Deere agricultural machinery to Russia began more than 100 years ago, and since 2003 the Russian division of the company has been operating. Currently, there are two John Deere plants operating in Russia - the enterprise in Orenburg opened in 2005, and production in Domodedovo was launched in 2010. In addition, the company has a wide dealer network in Russia.

Branch of John Deer Agricalcerel Holdings, Inc. - official representative office of John Deere in Russia.

2023

Koblik Group restarted the John Deere plant in the Orenburg region and began producing agricultural machinery there. For this, ₽1,5 billion invested

In October 2024, it became known that the company Koblik Group resumed work at the production site (legal entity - Koblik Orenburg) in the Orenburg region, which previously belonged to the American manufacturer of agricultural equipment, and John Deere began to produce agricultural machinery. To restart the plant, ₽1,5 billion were invested, which made it possible to establish new technological processes in three months and start producing the first units of finished products, the Minister of Economic Development, Investment, Tourism and External Relations of the Orenburg Region said. Ignat Petukhov More here

Koblik Group buys Orenburg John Deere plant

The manufacturer of equipment for cleaning and storing grain "Koblik Group" Yegor Koblik (one of the main assets is the plant "Voronezhselmash") buys the Orenburg plant John Deere. The press service of the government of the Orenburg region announced this on May 16, 2023.

It is noted that the site will be the first asset of Koblik Group in the region. At the first stage, the production of trailed machines will be transported to Orenburg, and subsequently grain loaders and conveyor dryers will be produced. By 2024, it is planned to expand the number of personnel with an average salary of 65 thousand rubles.

The manufacturer of equipment for cleaning and storing grain "Koblik Group" buys the Orenburg plant John Deere

The industrial site in Orenburg will open up prospects for the company to expand its activities. It has advantages both in terms of logistics and raw materials. It is planned to invest in the production of hundreds of millions of rubles and create more than 200 workplaces. The region will acquire a reliable taxpayer and employer in the person of the enterprise, - said the governor of the Orenburg region Denis Pasler.

Egor Koblik at a meeting with the head of the region noted that the site in Orenburg is well prepared and equipped, it will allow the company to expand its product line. The company plans to restart production during 2023.

By May 2023, Koblik Group includes four agricultural engineering plants - Voronezhselmash, Romax, Intech and Zapagromash in Voronezh, Smolensk and Minsk. The holding also includes the Kuznitsa company, an official dealer of the world's leading manufacturers of agricultural machinery with 20 regional branches.

Deere & Co is one of the world's largest producers of agricultural machinery. In 2019, the company transferred from Domodedovo near Moscow to the Orenburg region a plant for assembling combines, tractors and construction equipment.^[1]

Sale of a leasing subsidiary in Russia to the Insight group

Avet Mirakyan's Insight investment group bought the Russian leasing subsidiary of the agricultural machinery manufacturer Deere. This became known in March 2023.

Insight wrote about the sale of John Deer Financial to Insight Kommersant with reference to the data of the Unified State Register of Legal Entities (Unified State Register of Legal Entities). The representative of Insight confirmed to the publication the information about the transaction.

Insight Group said it plans to keep and strengthen the team of the Russian John Deere

The investment group told the newspaper that they plan to keep and strengthen the team of the new company. Insite also stressed that John Deer Financial "has a diversified leasing portfolio." Whether the company has the leasing items themselves in physical presence, the buyers did not specify.

Earlier, Avet Mirakyan said that his investment group plans to place bonds for potential transactions to buy Russian subsidiary leasing companies owned by foreign producers who decide to leave the domestic market.

Our goal is to build a leasing holding that will unite leasing companies with different competencies. Following this strategy, we acquired John Deer Financial and do not exclude other transactions in this market, "an Insight representative told the newspaper.

We explain the company's interest in entering the segment of leasing agricultural machinery.

The segment of leasing agricultural machinery and equipment was less affected by the departure of foreign companies. This is due to the fact that traditionally agricultural machinery was developed in Russia, and in the past [2022], domestic companies managed to quickly replace imports and significantly expand the volume of equipment produced, "Tatyana Antipova, deputy general director of Rosagroleasing, told Kommersant.

According to her, John Deer Financial occupied no more than 10% of the total leasing portfolio of the agricultural machinery segment and 13% of the new business in the segment, while it was captive, financing mainly purchases from the parent company.^[2]

2022: Stopping supplies to Russia and Belarus

The largest American manufacturer of agricultural machinery, John Deere, said on March 10, 2022 that it had decided to suspend supplies to Russia and then to Belarus against the backdrop of a special operation by the Russian Armed Forces in Ukraine.

2019: Agreement with CenterProgramsSystems to digitalize agricultural operations

On November 1, 2019, it became known that John Deere signed an agreement on exclusive rights to Ag-Data Integrator with CenterProgramsSystems (Belgorod), which specializes in creating software based on 1C . In addition, the parties agreed on the joint development of technical solutions designed to digitalize agricultural operations. Read more here.

John Deere in the world

2021: Buying self-driving tractor developer Bear Flag Robotics

In early August 2021, John Deere bought the developer of unmanned tractors Bear Flag Robotics for $250 million to solve the problem of labor shortages in agriculture. Bear Flag Robotics tractors are heavily used on California farms that buy or rent robotics. Read more here.

2017: Farmers in the United States break into tractors and put Ukrainian firmware

Hacking John Deere tractors and other brands is gaining popularity among American farmers. In order to bypass the restrictions imposed by manufacturers, farmers hack their equipment and install firmware hacked in Eastern Europe on it, Motherboard journalists explain^[3].

Deere & Company and other agricultural machinery manufacturers protect their products from "unauthorized" repairs, depriving farmers not only of the right to repair their tractors on their own, but also putting their lives at risk in the event of a sudden breakdown or accident.

suddenly there is an accident and the tractor breaks, we may not have time to wait until a company employee appears and fixes everything. Repairing virtually all new equipment requires flashing, "said one Nebraska resident, speaking to the state legislature

Among other things, farmers fear too much power from manufacturers over equipment. For example, Deere & Company can remotely turn off the tractor, and the farmer will not be able to do anything. According to the license agreement, users do not have the right to modify and independently repair new models of machines, and only authorized sellers and maintenance services can repair them.

As Nebraska resident Kevin Kenney explained, if something needs to be replaced in the tractor, such as a transmission, anyone can do it, but the car will not go. We need a special Deere & Company employee who will connect a special connector to the USB port of the tractor and start it.

Local mechanics with firmware for agricultural equipment John Deere purchased on the black market, hacked by Ukrainian hackers, help farmers bypass the restrictions. "Farmers can get what they need if they need to," the software Nebraska mechanic reported. "I'm not some big businessman, but let's just say you've got a broken tractor, the nearest authorized seller is 40 miles away and I'm just a mile away."

According to Motherboard, a large amount of hacked software for agricultural machinery is sold on closed forums, but you can get to these forums only by invitation. Almost all programs are hacked by Ukrainians and Poles, and the main buyers are Americans.

2013

Deere & Company in the IV quarter of the 2013 fiscal year earned $807 million (December 2, 2013).

Notes