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B. Sagintayev, farmers of Akmola region discuss prospects for the development of the agro-industrial complex taking into account the updated state program

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Today, as part of his working trip to Akmola region, Prime Minister of the Republic of Kazakhstan Bakytzhan Sagintayev visited a meat processing plant and met with agricultural producers of the region. The goal was to get acquainted with the implementation of the Agro-Industrial Complex Development State Program and the progress of execution of the President’s instructions given in the Address New Development Opportunities in the Conditions of the Fourth Industrial Revolution.

In the beginning of the year, the Head of State instructed to within five years increase labor productivity in the agro-industrial complex, as well as exports of processed agricultural products by at least 2.5 times.

During the inspection of the workshop for meat processing and production of canned semi-finished products, the Prime Minister was informed about the growth rates of exports of finished products. H. Bizhan, CEO of Bizhan Meat Processing Plant LLP, reported that the plant’s design capacity is 5 thousand tonnes of meat products per year. In 2017, production amounted to 289.2 million tenge, in five months of 2018 � 486.4 million tenge. At present, products are exported to the Russian market; there are plans to enter Central Asia and China.

In January-May 2018, the gross output of agriculture in Akmola region amounted to 53.6 billion tenge, which is 4.2% higher than in the corresponding period last year. In five months, the volume of investment in food production increased by 167% compared to the same period of last year and amounted to 3.9 billion tenge. With regards to processing of agricultural products in January-April, the production of sausages increased by 20.5% (from 493 to 594 tonnes).

Further, the Prime Minister met with agricultural producers of the region to discuss urgent issues of the development of the agro-industrial complex and the reserves of the region, taking into account the development of the food belt around the city of Astana. New opportunities, tools and mechanisms for support of agricultural producers, provided within the framework of the Agro-Industrial Complex Development State Program for 2017-2021 were also considered.

In his opening remarks, B. Sagintayev noted that in order to fulfill the President’s instructions, the Agro-Industrial Complex Development State Program until 2021 was updated, where a number of priority areas were identified. Among them, the increase in the effectiveness of state support, which aims at not only to simplify and automate, but also stimulate the introduction of new technologies to increase productivity. Due to the optimization of subsidies, the volume of support for agricultural producers in the context of financial instruments will be increased.

The Prime Minister also called the development of agrarian science, import substitution and development of export potential one of the main conditions for the successful implementation of the state program.

It should be noted that Akmola region is the leading region in terms of agricultural production. The region has the largest crop area of grain crops in the country, and the geographical proximity of the region to Astana makes it the main participant in the food belt of the capital.

The food belt of the capital includes all 17 districts of Akmola region, located within a radius of 300 km from the city of Astana. To date, production in the belt zone completely covers the capital’s need for 12 types of products (flour, pasta and bread, poultry and eggs, horse meat, beef, pork, potatoes, beets, tomatoes, cucumbers). At the same time, there is a potential for providing Astana with nine types of goods: processed milk, fermented milk products, butter, cheese and cottage cheese, lamb, sausages, cabbage and carrots.

First Deputy Minister of Agriculture A. Yevniyev reported on the opportunities provided by the Agro-Industrial Complex Development State Program. According to him, the essence of the new state program is that the focus of attention is on farmers who need land and financing. It is planned to create more than 80 000 family farms engaged in cattle breeding, sheep and horse breeding, expand the pasture area from 58 million hectares to 100 million hectares, increase the number of cattle to 15 million head, and sheep to 30 million head.

A farmer will be able to receive funds through the agrarian credit corporation with a financial support fund at 4% for 15 years. This issue is being solved, only a clear process discipline is needed, �the First Deputy Minister said.

At the same time, A. Yevniyev spoke about the prospects of Akmola region regarding the development of the food belt around Astana.

The development of the food belt around Astana is a task given by the Head of State, which is a huge opportunity for the region. Now, on the instructions of the Government, a roadmap will be adopted, within which the status of the participant in the food belt of Astana will be created, which gives special terms within the financial institutions of KazAgro, as well as benefits when considering land and other issues, � A. Yevniyev said.

The draft Roadmap for the formation of the belt around Astana provides for:

– Output of products on the territory of the agglomeration;

– Production and supply from the traditional zone of the food belt (300 km around Astana);

– Supply of products from other regions of the country.

A mechanism for awarding the status of Participant in the capital’s food belt will be introduced, which will ensure guaranteed stable food supplies to Astana. At the same time, subjects of the agro-industrial complex that received such a status will have a priority access to the markets in the city, including utility markets, etc., as well as access to lending by subsidiaries of the KazAgro holding and subsidizing.

Further, comments were made by representatives of the agrarian sector of the region. In particular, the founder of LLP Bizhan MPP H. Bizhan, Chairman of the Meat Union of Kazakhstan M. Baktibaev, Director of Gormolzavod LLP A. Zhaksylykov, Director of Capital Project LTD LLP M. Bozhko, Chairman of the Board of agricultural production cooperative AQMOL SUT A. Kassenov, Director of LLP SPCGF named after K. Barayev K. Abdullaev, Director of Karaozek LLP N. Iskakov shared their experience in the development of beef cattle breeding, dairy industry, poultry farming, processing of meat products, summarized the results of the sowing campaign and voiced questions regarding the future creation of a reproductive heifer farm and the introduction of precision farming in the region.

In his turn, Chairman of the Board of NCE Atameken A. Myrzakhmetov stated that all the issues raised by agricultural producers of the region are discussed and carefully worked out together with the Government. He also noted the need to increase exports to neighboring countries.

Summing up the results of the constructive dialogue, the Prime Minister said that practically all necessary conditions for rural dwellers have been created on the part of the state.

The Government of the country takes all necessary measures to timely implement the tasks set by the Head of State and understands the strategic importance of the agricultural sector for the whole of Kazakhstan. B. Sagintayev called on agribusiness to be actively involved in the process of accomplishing the tasks set, to offer ideas and specific solutions.

Akmola region is one of the main agrarian and industrial regions of the country, producing more than 25% of grain, 7% of milk and 5.8% of meat produced in the country. The average annual grain production in the region over the past five years amounted to 5 million tonnes, and the average annual grain exports during this period amounted to 1.8 million tonnes. The annual growth in the number of livestock of all types of farm animals and production ranges from 3% to 7%.

In the region there is a network of specialized enterprises for fattening cattle with a capacity of 1.5 to 5 thousand heads. The total capacity of these enterprises is more than 27 thousand heads.

The agricultural processing is developing dynamically. In five months of this year, the output of food products increased by 19.4%, and with regards to a number of products, particularly vegetable oil, growth was 24.8%, meat – 19.7%, dairy products – 5.1%, flour – 32.2%.

Source: Government of the Republic of Kazakhstan

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B. Sagintayev, farmers of Akmola region discuss prospects for the development of the agro-industrial complex taking into account the updated state program

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Today, as part of his working trip to Akmola region, Prime Minister of the Republic of Kazakhstan Bakytzhan Sagintayev visited a meat processing plant and met with agricultural producers of the region. The goal was to get acquainted with the implementation of the Agro-Industrial Complex Development State Program and the progress of execution of the President’s instructions given in the Address New Development Opportunities in the Conditions of the Fourth Industrial Revolution.

In the beginning of the year, the Head of State instructed to within five years increase labor productivity in the agro-industrial complex, as well as exports of processed agricultural products by at least 2.5 times.

During the inspection of the workshop for meat processing and production of canned semi-finished products, the Prime Minister was informed about the growth rates of exports of finished products. H. Bizhan, CEO of Bizhan Meat Processing Plant LLP, reported that the plant’s design capacity is 5 thousand tonnes of meat products per year. In 2017, production amounted to 289.2 million tenge, in five months of 2018 � 486.4 million tenge. At present, products are exported to the Russian market; there are plans to enter Central Asia and China.

In January-May 2018, the gross output of agriculture in Akmola region amounted to 53.6 billion tenge, which is 4.2% higher than in the corresponding period last year. In five months, the volume of investment in food production increased by 167% compared to the same period of last year and amounted to 3.9 billion tenge. With regards to processing of agricultural products in January-April, the production of sausages increased by 20.5% (from 493 to 594 tonnes).

Further, the Prime Minister met with agricultural producers of the region to discuss urgent issues of the development of the agro-industrial complex and the reserves of the region, taking into account the development of the food belt around the city of Astana. New opportunities, tools and mechanisms for support of agricultural producers, provided within the framework of the Agro-Industrial Complex Development State Program for 2017-2021 were also considered.

In his opening remarks, B. Sagintayev noted that in order to fulfill the President’s instructions, the Agro-Industrial Complex Development State Program until 2021 was updated, where a number of priority areas were identified. Among them, the increase in the effectiveness of state support, which aims at not only to simplify and automate, but also stimulate the introduction of new technologies to increase productivity. Due to the optimization of subsidies, the volume of support for agricultural producers in the context of financial instruments will be increased.

The Prime Minister also called the development of agrarian science, import substitution and development of export potential one of the main conditions for the successful implementation of the state program.

It should be noted that Akmola region is the leading region in terms of agricultural production. The region has the largest crop area of grain crops in the country, and the geographical proximity of the region to Astana makes it the main participant in the food belt of the capital.

The food belt of the capital includes all 17 districts of Akmola region, located within a radius of 300 km from the city of Astana. To date, production in the belt zone completely covers the capital’s need for 12 types of products (flour, pasta and bread, poultry and eggs, horse meat, beef, pork, potatoes, beets, tomatoes, cucumbers). At the same time, there is a potential for providing Astana with nine types of goods: processed milk, fermented milk products, butter, cheese and cottage cheese, lamb, sausages, cabbage and carrots.

First Deputy Minister of Agriculture A. Yevniyev reported on the opportunities provided by the Agro-Industrial Complex Development State Program. According to him, the essence of the new state program is that the focus of attention is on farmers who need land and financing. It is planned to create more than 80 000 family farms engaged in cattle breeding, sheep and horse breeding, expand the pasture area from 58 million hectares to 100 million hectares, increase the number of cattle to 15 million head, and sheep to 30 million head.

A farmer will be able to receive funds through the agrarian credit corporation with a financial support fund at 4% for 15 years. This issue is being solved, only a clear process discipline is needed, �the First Deputy Minister said.

At the same time, A. Yevniyev spoke about the prospects of Akmola region regarding the development of the food belt around Astana.

The development of the food belt around Astana is a task given by the Head of State, which is a huge opportunity for the region. Now, on the instructions of the Government, a roadmap will be adopted, within which the status of the participant in the food belt of Astana will be created, which gives special terms within the financial institutions of KazAgro, as well as benefits when considering land and other issues, � A. Yevniyev said.

The draft Roadmap for the formation of the belt around Astana provides for:

– Output of products on the territory of the agglomeration;

– Production and supply from the traditional zone of the food belt (300 km around Astana);

– Supply of products from other regions of the country.

A mechanism for awarding the status of Participant in the capital’s food belt will be introduced, which will ensure guaranteed stable food supplies to Astana. At the same time, subjects of the agro-industrial complex that received such a status will have a priority access to the markets in the city, including utility markets, etc., as well as access to lending by subsidiaries of the KazAgro holding and subsidizing.

Further, comments were made by representatives of the agrarian sector of the region. In particular, the founder of LLP Bizhan MPP H. Bizhan, Chairman of the Meat Union of Kazakhstan M. Baktibaev, Director of Gormolzavod LLP A. Zhaksylykov, Director of Capital Project LTD LLP M. Bozhko, Chairman of the Board of agricultural production cooperative AQMOL SUT A. Kassenov, Director of LLP SPCGF named after K. Barayev K. Abdullaev, Director of Karaozek LLP N. Iskakov shared their experience in the development of beef cattle breeding, dairy industry, poultry farming, processing of meat products, summarized the results of the sowing campaign and voiced questions regarding the future creation of a reproductive heifer farm and the introduction of precision farming in the region.

In his turn, Chairman of the Board of NCE Atameken A. Myrzakhmetov stated that all the issues raised by agricultural producers of the region are discussed and carefully worked out together with the Government. He also noted the need to increase exports to neighboring countries.

Summing up the results of the constructive dialogue, the Prime Minister said that practically all necessary conditions for rural dwellers have been created on the part of the state.

The Government of the country takes all necessary measures to timely implement the tasks set by the Head of State and understands the strategic importance of the agricultural sector for the whole of Kazakhstan. B. Sagintayev called on agribusiness to be actively involved in the process of accomplishing the tasks set, to offer ideas and specific solutions.

Akmola region is one of the main agrarian and industrial regions of the country, producing more than 25% of grain, 7% of milk and 5.8% of meat produced in the country. The average annual grain production in the region over the past five years amounted to 5 million tonnes, and the average annual grain exports during this period amounted to 1.8 million tonnes. The annual growth in the number of livestock of all types of farm animals and production ranges from 3% to 7%.

In the region there is a network of specialized enterprises for fattening cattle with a capacity of 1.5 to 5 thousand heads. The total capacity of these enterprises is more than 27 thousand heads.

The agricultural processing is developing dynamically. In five months of this year, the output of food products increased by 19.4%, and with regards to a number of products, particularly vegetable oil, growth was 24.8%, meat – 19.7%, dairy products – 5.1%, flour – 32.2%.

Source: Government of the Republic of Kazakhstan

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