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Minister of National Economy explains reasons of increasing investor interest in agriculture

by October 25, 2016 General

At the press conference, which followed the Governments meeting, Minister of National Economy of Kazakhstan Kuandyk Bishimbayev explained the great attention of investors to the agriculture of Kazakhstan.

As the Minister said, agriculture of Kazakhstan is quite a promising area.

I think several factors played a role. Firstly, we have a sufficient amount of land, cropland, pastures, etc. Moreover, there is Agrobusiness 2020 program that is being consistently implemented. Secondly, despite all the difficult years, the agriculture has received a considerable amount of state support, as well as enterprises and investors investing in the processing of agricultural products and development of animal and plants production, K. Bishimbayev explained.

The Minister added that a large enough interest is generated by the spheres beyond the crops, especially oilseeds.

I also attribute this to the fact that due to the arrangements of the Head of State, held in September, the Chinese markets opens for Kazakhstani products.

Chinese authorities have inspected a range of commodities, including oil, products of oil and fat industry; access and technical barriers, which hindered the supply of Kazakhstani products to Chinese market, are being removed. When our enterprises have access to such a large market, the investment attractiveness is generated, head of the Ministry said.

Another important factor, according to K. Bishimbayev, is the sanctions Russia adopted in regard to goods from the EU and a range of countries. They are connected with the fact that the market, which is occupied by Russian and Kazakh producers, has opened a large niche for the agricultural and food products.

Taken together, all these factors (state support, external factors associated with new markets of Russia and China, consistent elimination of all technical barriers, adoption of uniform technical standards and requirements on the EEU space, reduction of tariffs for rail freight) increase the attractiveness of the agricultural sector. In general, food market never decreases, since we all consume it every day, the Minister concluded.

Source: Government of the Republic of Kazakhstan