Kazakh PM discusses implementation of President's instructions on doubling agricultural production with agrarians

Prime Minister Olzhas Bektenov held a meeting with domestic agricultural producers, where they discussed topical issues of agro-industrial complex development, the progress of spring field work, measures to support farmers, digitalisation of the industry, as well as areas of cooperation that require additional work, El.kz cites primeminister.kz.

The prospects of doubling the volume of agricultural production in the next five years were considered in accordance with the task set by the Head of State at the meeting of the National Kurultai.

Opening the meeting, Olzhas Bektenov noted that the Government actively supports the agricultural sector.

"Thanks to the support of the President, agriculture is given special attention. As the Head of State says, the food security of the country is an enduring value. It is quite difficult to find 700 billion tenge in our conditions for cheaper financing, but we are doing it and will further increase this support. All those mechanisms that we have now will continue. We hope that they will have a great effect, and we will get competitive agriculture," Prime Minister emphasised.

Minister of Agriculture Aidarbek Saparov reported on the ongoing work to expand measures to support farmers:

1. The volume of preferential financing of the sowing campaign has been increased up to 580 billion tenge last year and up to a record 700 billion tenge this year with the early launch of lending (previously financing did not exceed 140 billion tenge). For the first time, a special programme was introduced to guarantee up to 85% of the loan amount for the IDA;
2. increased the availability of leasing of agricultural equipment by increasing the volume of financing for the year by 80 billion tenge to 200 billion tenge at 5%, while the equipment itself can become collateral, and the contribution is investment subsidies;
3. allocation of 30 billion tenge for forward purchase of Prodkorporatsiya, 40 billion tenge for subsidising export costs to expand geography;
4. crediting of processing enterprises for replenishment of working capital has been started since last year. The volume of crediting amounts to 35 billion tenge. This year the goal is to allocate 48 billion tenge for these purposes. Preferential loans for working capital allow to load processing.

The Government also pays special attention to the development of livestock breeding as an industry that provides year-round employment for the rural population. Thus, similar support tools are being developed for fattening grounds, subsidies for breeding and pedigree work will be revised in favour of preferential loans and easily administered types of subsidies.

During the meeting, representatives of various areas of the agricultural sector, such as crop and horticulture, livestock and poultry farming, processing and export of products, spoke.

General Director of Zhas-Kanat 2006 LLP Kairat Maishev, who heads the Association of Egg Producers of Kazakhstan and manages two poultry farms in the Kostanay region, noted the growing trend towards carcass cutting and processing. In this regard, the launch of a programme of preferential working capital loans for processors allows them to procure raw materials, ensure uninterrupted production and form inventories to supply products to the market.

Askar Sabyrov, Director of AmalBio LLP, raised the issues of introducing innovative and digital solutions in the production processes of agriculture, construction of engineering infrastructure in rural areas.

General Director of Agrofirma Rodina LLP Ivan Sauer touched upon the upcoming National Agricultural Census, which is scheduled for this year. The need to improve the process of collecting information and determining the status of participants in the agro-industrial complex of Kazakhstan, as well as the creation of a unified database of spare parts for agricultural machinery.

Director of KT Zenchenko & K Gennady Zenchenko along with the expanding measures of state support emphasised the importance of further increasing responsibility on the part of business itself. It was noted that the main factor in the development of the industry is human resources. In this regard, Gennady Zenchenko urged colleagues to ensure attractive salaries for industry specialists and together with universities to stimulate the training of qualified personnel. Particular attention was paid to rural development, in particular, to the participation of agricultural companies in social initiatives, including the solution of housing issues, development of educational and medical infrastructure. Also in the course of the meeting spoke vice-president of Holding Company Aitas-KZ Rabiga Tokseitova, director of MB4 LLP Azamat Shalmagambetov, founder of Eurasia Invest LTD Ivan Georgiadi, head of Asyl Farms Gabiden Balginbekov, General Director of Maslo-del Pavel Selivanov, as well as the chairman of the presidium of the Atameken National Chamber of Entrepreneurs Raimbek Batalov. The agrarians voiced proposals on expanding the category of recipients of soft loans under the Investment Agreement, construction of engineering infrastructure, as well as providing agricultural producers with cheaper gas. In addition, the issues of direct preferential lending for investment purposes, breeding material, deep processing of grain and vegetable oil, agricultural insurance, stable filling of the domestic market, export development, digitalisation, regulatory and tax policy, as well as solving the housing issue in rural areas were updated. On the part of government agencies, Deputy Prime Minister - Minister of National Economy Serik Zhumangarin, Minister of Agriculture Aidarbek Sap made comments on the topics raised. According to the information of the management of NUH Baiterek, a pilot project on construction of rental housing is currently being implemented in the villages of North Kazakhstan region. In the future, this experience is planned to be scaled to the whole country. Prime Minister emphasised on the strategic goal - transformation of agro-industrial complex into a technological and innovative sector of the economy. For this purpose each agricultural producer should strive to introduce modern agricultural technologies, increase labour productivity, expand the range of highly profitable and export-oriented products.

"The state will provide comprehensive support to agricultural enterprises, which not only increase production volumes, but also make a real contribution to improving the quality of life in rural areas, forming sustainable and self-sufficient rural communities. The result of joint work should be to provide the people of Kazakhstan with quality and affordable food products of their own production.Kazakhstan should be a competitive player in the field of deep processing of agricultural products," Olzhas Bektenov concluded and wished all participants of the meeting a high harvest and further growth of agricultural production.

Prime Minister also inspected the exhibition of domestic products of agro-industrial complex. There were presented projects of dairy and meat processing industries, as well as solutions in the field of agricultural machinery and food industry. Among them was an investment project to build a plant for deep processing of eggs in Akmola region with a capacity of more than one million eggs per day. The enterprise has no analogues in Central Asia and allows to produce a wide range of deep processing products from egg powder to specialised food additives. Innovative solutions introduced in the production chain of AmalBio enterprise to increase the range of products were presented, the Prime Minister was informed about the expansion of the export market. In addition, projects on construction of irrigation system for agricultural crops, production of freeze dried mare's milk, new types of packaging for food products, etc. were presented.

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