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Digitalization of agribusiness: 20 digital farms to appear in Kazakhstan by 2022

by September 25, 2018 Sports

In accordance with an instruction of Kazakhstan’s President Nursultan Nazarbayev, the productivity increase in the agroindustrial complex and export of processed agricultural products at least in two and a half times will be provided for 5 years, to a greater extent, by digitization of the agroindustrial complex. For this, the “E-Agribusiness” program is taken root. What is the smart purpose of this program? Which target indicators, time limits and stages does the program have? All this has been discussed today at the Government meeting with the participation of Prime Minister Bakytzhan Sagintayev.

First of all, the smart purpose of the program is to apply the best available instruments of digitalization of business processes which will provide the increase in the labor productivity and export of processed agricultural products at least in two and a half times for 5 years.

According to First Vice Minister of Agriculture A. Yevniyev, by 2022 at least 20 digital farms and 4,000 advanced farms will be created and 100% automation of public services will be provided.

“Digitalization will focus on a farmer and will simplify his activities from the beginning to the end”, he said.

At the beginning

Of course, at the beginning of his labor productivity a farmer will have some difficulties with information collection, consulting, training. All this will be decided through digitalization.

“Development of the online training will allow a farmer to be trained with the choice of a teacher, courses and without coming to a training center, as in the example of the “Uber” model and it will reduce the temporary and transport costs of farmers”, A. Yevniyev noted.

Whilst online consultations will allow a farmer to receive necessary consultations on entrepreneurship, farm management, agronomy, seed production, livestock.

In the words of the First Vice Minister of Agriculture, Saken Seifullin Kazakh Agrotechnical University has provided free advice to 200 agribusiness entities.

The launch of the online training and consultations with the involvement of private IT companies is planned from 2020.

Online financing and automation of land granting process

As part of the online financing, automation of applications’ registration for loans and guarantees was conducted. It allowed to reduce the costs of farmers for travelling and ensure the control of timely consideration of the application.

“In 2019, it is planned to conduct a pilot project to launch the online financing in the field of spring field funding, in 2021 the process will be fully automated “online financing single-click ease”, Yevniyev said.

According to him, nowadays the process of obtaining land at auction is not automated and there is no open map of land.

“Until July 1, 2019, it is planned to provide land in an electronic form only in selected areas in pilot mode, and starting the process in full in 2021. Until the end of 2019, it is planned to create an open map of land plots”, he reported.

The difficulties faced by a farmer at the production stage – obtaining subsidies, the lack of data on agro-chemical analysis, cosmomonitoring, accurate weather data – will also be solved thanks to digitalization.

Precise farming and smart farms

According to the Ministry of Agriculture of Kazakhstan, 23.7 million hectares of land or 98.8% of the total sown area were digitized as part of the creation of electronic maps of fields, which are one of the elements of accurate farming. Until the end of the year, it is planned to complete the full digitization of fields in arable land.

In 9 pilot farms, Kazakh Agrotechnical University implements the elements of precision farming.

By the end of the year, specific farms will be identified, with which the work will be carried out to develop them to the level of digital beef and dairy farms. Until the end of this year, it is planned to create electronic maps of pastures.

Elements of precision farming

Within the framework of the introduction of precision farming, three levels of farms are defined: a digital farm, an advanced farm and a basic farm, for which a set of necessary elements is defined. Further work will be aimed at raising the level of a farmer through measures of the state support.

“Evolution” of farms to a digital farm

Reporting on the evolution of farms to a digital farm, Arman Yevniyev reported that the Ministry of Agriculture has already provided a baseline through the E-Agribusiness program by digitizing all areas under crops, and also by updating maps of the agrochemical state of soils.

“Now the goal of the basic level is to move to the advanced level, and the advanced – to become a digital farm. The whole chain of the so-called “digital evolution” has already been developed and can be applied by farmers. With the development of technologies, the set of elements will be supplemented”, A. Yevniyev said.

A similar algorithm is proposed with the development of smart farms for livestock.

E-diesel fuel

As for the electronic distribution of diesel fuel for sowing and harvesting, according to A. Yevniyev, by the end of the year a pilot implementation will be carried out jointly with the Governor’s Office of Pavlodar region with online application, conclusion of an electronic contract and shipment.

“537 electronic applications for shipment for 16 594 tons of diesel fuel have already been formed. The project will reduce the costs of farmers and eliminate corruption risks. In 2019, it is planned to implement in all local executive bodies”, A. Yevniyev informed.

In addition, the First Vice Minister of Agriculture described such elements of digitalization of the agro-industrial complex as launching the E-Cooperation portal, e-commerce of grain crops, a logistics map for the construction of priority terminals, wholesale distribution centers, electronic veterinary certificates for monitoring the movement of products inside the country, online -monitoring of the grain balance, statistics on grain prices, rating of grain receiving points, electronic veterinary and phytosanitary laboratories.

It was also noted that at all stages of the farmer’s activity it is planned to simplify procedures for obtaining state services through their automation.

“To date, out of 101 state services 61 is partially automated and 1 is fully automated. 98 state services were optimized, which are approved by the Interdepartmental Commission for the selection of public services. In the near future, it is planned to optimize the remaining 3 state services. Until the end of 2018 it is planned to fully automate 16 state services, until 2022 – all public services”, A. Yevniyev noted.

In conclusion, Arman Yevniyev reported on the expected economic effect of the digitalization of the agroindustrial complex. Thus, in accordance with the State Program of the agroindustrial complex, GDP growth of over 3 trillion tenge is planned for the account of measures, in which the effect of digitalization of the agroindustrial complex will be 30% or about 1 trillion tenge.

Rector of Kazakh Agrotechnical University named after S. Seifullin Akhylbek Kurishbayev, in turn, said that the educational institution is working on the digitalization of the agroindustrial complex in two directions. The first is the monitoring of the use of land resources, the second is the introduction of precision farming technology into production.

During the meeting the reports of Governors of Kostanay region – A. Mukhambetov, North Kazakhstan region – K. Aksakalov were also heard.

Following the consideration of the issue, Prime Minister Bakytzhan Sagintayev instructed the Ministry of Agriculture to accelerate the introduction of elements of precision farming and livestock smart farms.

Source: Kazakhstan 2050