Deere and Daedong disconnect

The Korea Economic Daily (KED) news reports that Deere notified Daedong Corp., parent company of Kioti Tractors, of its decision to stop supplying medium-to-large-sized tractors to the Korean firm in December. A Daedong official confirmed that the two sides have agreed to end their partnership that began in 2004.

“We have been actively selling our own large tractor models, such as the HX series with 100 horsepower and above, since 2021. We believe these models are competitive enough to end our contract with John Deere,” said an unnamed official of Deadong.

“Before launching the HX series, John Deere tractors accounted for 20% of our sales, but the percentage dropped to 10% last year, meaning our separation with Deere won’t affect our revenue much,” said the Daedong official.

“We are also considering a partnership with another global agricultural machinery company to secure a product lineup above 150 horsepower, which we don’t currently manufacture in-house,” he said.

Founded in 1947, Daedong makes tractors, combines, power tillers and lawnmowers as well as engines, cylinder heads and blocks for agricultural machinery. Daedong has been striving to transform into a smart mobility company, applying autonomous driving and Internet of Things (IoT) technologies to its mechanized farming equipment. In January, Kioti made its first display appearance at the tech-focused CES show in Las Vegas

Kioti Tractor has steadily gained marketshare in the North American small-to-mid-sized tractor market. KED reports that Deadong plans to integrate wireless communication services into all Kioti tractors for North America starting this year.

“We plan to leverage our reputation and technological expertise we built in the small and mid-sized tractor market to enter the medium- and large-sized tractor segment. We will launch a new product targeting overseas markets in the first half of this year,” said another Daedong official.