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A.Myrzakhmetov, South Kazakhstans agricultural producers discuss draft state program for AIC development

by December 2, 2016 Health

Following the approval of the Head of State, the concept of state program for AIC development in 2017-2021 was then approved by the Government and later considered by the Parliament and Government of Kazakhstan.

Today in Taraz Deputy Prime Minister � Minister of Agriculture Askar Myrzakhmetov met with agricultural producers of south regions of Kazakhstan where the program being elaborated had been already discussed.

Implementation of the new AIC role will balance the sustainable development of the country, increase the productivity and improve living standards of general public. Achieving these goals is possible through a large-scale cooperation.

KazAgro holding will provide cooperatives with technological equipment. Support will also be provided through subsidies for cooperatives to provide personal subsidiary economies with veterinary, agrochemical, financial, marketing and other services.

Development of agricultural cooperation will provide additional 30%-load of processing plants, and reduce the trade margin by 15-20% by reducing intermediary links.

The program aims at involving by 2021 over 500,000 personal subsidiary economies and small collective farms into commodity production and creation of over 1,200 agricultural cooperatives.

Cooperatives will provide its members with veterinary, agrochemical, forage, slaughtering, milk collection, and product storage and distribution logistics services. For instance, when prime cost for hay required by the villagers is 7-8 thousand tenge per ton, it is sold for 20 thousand summertime, 30 thousand in autumn and 40-50 thousand tenge in winter. A cooperative, leasing under state support the tractor, mower, trailer, can provide the villagers with hay at cost price. In a word, the cooperatives must address all those issues hindering today the development of personal subsidiary farms and small commodity industries, will centrally provide the villagers with mixed fodders, through its small feed processing room.

There is also an opportunity for cooperatives to become the rural credit institutions.

Domestic agricultural products will be promoted on the foreign export markets through the AIC export center based on Food Corporation JSC to be created under the program.

Crop areas will be further diversified. The priority will be on barley, oats, corn, oilseeds and forage crops that are most-in-demand in the market today and have high profitability.

The state program will also focus on the transfer in agriculture of the best world agricultural technologies. With this end in view the Agricultural Technology Transfer Center of the Ministry of Agriculture is forming a group of young experts with foreign language.

KazAgro subsidizing and lending mechanisms will be reviewed. Renunciation of ineffective forms of support will expand the coverage of the grantees 7 times, KazAgro concessional loan borrowers � 1.4 times with SME support prioritized.

The return on 1 tenge of subsidies will increase by almost 2 times, from 7.5 to 13 tenge, and producers by 50%.

Revising approaches to leasing programs, subsidies will also increase the rates of renewing the car-tractor park by 1.5-2 times.

It was noted that the implementation of new approaches will increase the gross agricultural output by 30%, exports growth � by 17%, reducing imports � from $3.4 billion to $2.8 billion. The area of irrigated land is also planned to be increased by 40% from 1.4 to 2 million hectares. It is expected to increase the share of agricultural products processing and processing enterprises load 1.3 times, and to increase 3 times the private investment in the industry.

An increase on new indicators is planned to be achieved under the previously approved budget, with no additional funding required.

Source: Government of the Republic of Kazakhstan