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Friday, September 20th, 2019

Ministry of Agriculture: AIC Development State Program allows increasing the level of processing and export of domestic agricultural products

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The implementation of integrated measures within the framework Agro-Industrial Complex Development State Program for 2017-2021 allowed increasing the level of processing and export of domestic agricultural products. This was reported by First Deputy Minister of Agriculture Kairat Aituganov during the briefing at the Government press center.

Kairat Aituganov reported that for the comprehensive development of agricultural processing, extensive analysis was carried out in 4 months and the database of processing enterprises was formed for the first time. It includes an assessment of the current state, capacity, year of commission, type of equipment, loading, volume and product range, as well as constraining problems.

For the development of 9 priority types of processing, calculations have been made and a Placement Plan for agro-processing enterprises has been developed, including for each region and district.

Regarding the issue of financing the Plan, several options were also considered to reduce the burden on the budget. Analysis showed that credit resources are needed, first of all, to replenish working capital; secondly, to modernize and construct new enterprises.

To solve this problem, it is proposed to subsidize the interest rate of loans from financial institutions in these areas. This approach was discussed with the Association of Financiers of Kazakhstan and banks. They expressed their readiness to work according to the proposed scheme.

At present, work on formalizing the Plan is being completed, after which its implementation will launch in all regions of the country. This will increase the gross production of processed products from 1.9 to 3 trillion tenge and create 7 thousand jobs.

At the same time, to solve the issue of increasing the export of food products, Food Contract Corporation JSC was transformed into an operator for selling all agricultural products in foreign markets. Now it is engaged not only in grain, but also in other types of agricultural products.

In the current year, 43.4 billion tenge is planned to be allocated to purchase 850 thousand tonnes of agricultural products. At the same time, oilseeds and mutton purchased for export will be pre-processed at domestic plants, thereby increasing their load.

As a result, agricultural products amounting to 880 million USD were exported in the first 5 months of this year and the growth amounted to 4%. The volume of export of processed products increased 7.6%.

Source: Government of the Republic of Kazakhstan

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