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Tuesday, September 21st, 2021

AIC prospects: Bakytzhan Sagintayev, agrarians of Kostanay region discuss the new law on entrepreneurship

by May 25, 2018 Key Issues

Today, as part of a working visit to Kostanay region, Prime Minister of the Republic of Kazakhstan Bakytzhan Sagintayev visited Rudny’s Lider-2010 LLP, built within the framework of the State Program for Industrial and Innovative Development, and also held a meeting with the region’s agricultural producers.

During the inspection of the dairy plant’s shops, the Director of Lider-2010 LLP, Alexander Ligay, spoke about the technological peculiarities of production, showed the equipment for the production of milk and sour-milk products, and presented a range of products.

For reference: Today the enterprise on the average processes up to 30 tonnes of milk per day, in the near future � 50 tonnes. The assortment of products includes more than 20 types; the product line is planned to be expanded.

The main topic of the conversation was innovations and changes for business that came into effect yesterday in connection with the Head of State signing the law on improving the regulation of business. The issues of implementation of the President’s Address New Development Opportunities in the Conditions of the Fourth Industrial Revolution and the State Program for the Development of the Agro-Industrial Complex were also discussed.

Bakytzhan Sagintayev said this newly signed document provides entrepreneurs with new opportunities for growth, including in the sectors of the agro-industrial complex. The adopted law is aimed at liberalizing the legislation in the sphere of business regulation and cuts state control functions by almost 30%. Among them – control in the sphere of hunting and fishing, etc. Thus, the adopted nearly 1000 amendments to 14 codes and 109 laws will create the most favorable conditions for business development and will become a new serious incentive for strengthening business activity in the country.

The discussion of the development of the agro-industrial complex also covered the pace of execution in the region of the instructions of the Head of State, given in the 2018 Address. The agro-industrial complex is faced with the task of increasing labor productivity and export figures at least 2.5 times over five years.

The state creates the appropriate conditions. Over the past five years, the volume of direct government support for the sector has almost tripled and reached about 260 billion tenge. Last year, the state program for the development of the agro-industrial complex for 2017-2021 was adopted. On the instructions of the President of the Republic of Kazakhstan, large-scale work is being done to involve small and medium-sized farms in agricultural cooperation. The Chinese market has been opened for fish products, sheep breeding, beekeeping products and horses, as well as bran. Barriers hampering the supply of large and small cattle to the UAE have been eliminated.

As a result of measures taken, the volume of gross agricultural output in 2017 increased by 2.9% and amounted to 4.1 trillion tenge. There is also an increase in food production by 4.1%. The growth of investments in the fixed capital of agriculture and the production of food products amounted to about 30%.

The Prime Minister noted that Kostanay region is the leading region in terms of agricultural production. A third of the food products produced is exported. Given the industrial-agrarian specifics, the region is designated as the inaugural in the digitalization of the AIC sector. The main indicators of the development of the agro-industrial complex of the region over the past year demonstrate stable growth.

First Deputy Minister of Agriculture A. Yevniyev reported on the opportunities for farmers, taking into account the adopted law on improving the regulation of entrepreneurial activities. Chairman of the Board of Atameken A. Myrzakhmetov spoke about the issues of developing entrepreneurship in the countryside, increasing the competitiveness of SMEs, entering new export markets.

As part of the discussion, local agrarians expressed their support for the new law on business.

We support the historic decision of Elbasy. The adopted law gives us great opportunities to expand our business, � Chairman of the public council of the region, founder of Kharkhyn LLP S. Bukanov said.

Comments on the issue were shared by Director of Altynsarin LLP B. Knyazev, Director of AF Dievskaya LLP O. Danilenko, and Director of PKF Kairat LLP T. Utepov. The agricultural producers of the region raised issues of digitalization, preferential provision of fuel and lubricants, production of agricultural machinery, etc. Relevant comments on the issues raised were given by First Deputy Minister of Agriculture A. Yevniyev and Chairman of the NIH Zerde R. Yensebayev.

Following the discussion Bakytzhan Sagintayev noted that taking into account the strategic importance of the agrarian sector, all tasks set by the Head of State should be implemented in the immediate future. Agribusiness should be involved in the process of meeting the set goals, offering ideas and specific solutions.

In this regard, the Ministry of Agriculture, together with other government agencies, should consider the issues and proposals voiced during the meeting.

Deputy Prime Minister – Minister of Agriculture U. Shukeyev was instructed to hold a meeting with agrarians of the region in order to discuss in detail the sectoral programs being developed within the framework of the AIC Development State Program in such areas as the development of meat and dairy cattle breeding, poultry farming, irrigated lands, and others. Useful suggestions should be taken into account.

Prime Minister Bakytzhan Sagintayev also indicated that the task of digitizing the AIC should be addressed as a matter of priority. Deputy Prime Minister A. Zhumagaliyev was instructed to complete the work launched with regards to digitalizing all subsidies allocated in the AIC sector. At the same time, it is necessary to take into account the existing remarks and proposals of representatives of the agrarian business.

For reference: Gross output of agricultural products (services) in January-April 2018 as a whole for Kostanay region amounted to 37.3 billion tenge, including livestock products – 37.3 billion tenge. Volume index – 105.6%. In total, there are 5433 agricultural enterprises in the region, including: 1 PC, 3 JSC’s, 432 LLP’s, 4997 farms.

Since the beginning of this year, processing enterprises of the region produced commodity products worth 64 billion tenge, which is 15% more than in the same period in 2017 (55.8 billion tenge). The index of actual volume for food products was 118.7%. In 2018 it is planned to implement 12 investment projects worth 12.6 billion tenge, creating 560 jobs.