08/2016
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4 K A Z A K H s ta n Agriculture Bulletin Ministry of Agriculture to Discuss Processing Issues with Industry Representatives Training Programs and Online Consultation Portal Launched 5.1 Million Tons of Grain Harvested to Date this Year Kazakh-British Green Economy Transition Seminar Held
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Contents State Initiatives ........................................................................................................... 2 1) 2) 3) 4)
Moratorium on Land Code Amendments Extended 5 Years ........................................................... 2 Milk Collection and Cooperative Program Announced ................................................................... 2 Ministry of Agriculture to Discuss Processing Issues with Industry Representatives ..................... 2 Training Programs and Online Consultation Portal Launched ........................................................ 3
Private Sector.............................................................................................................. 3 5) 6) 7) 8) 9) 10) 11) 12) 13) 14)
State Reserve Forward Purchases Grain Worth KZT 15.4 Billion .................................................... 3 5.1 Million Tons of Grain Harvested to Date this Year .................................................................... 3 Domestic Apple Production Meets Only 50% of Demand ............................................................... 3 RUB 1.8 billion Agricultural Machinery Leasing Program Announced ............................................ 4 Kazakh-British Green Economy Transition Seminar Held ................................................................ 4 Agricultural Output Totals KZT 1.05 Billion in First Half of 2016 ..................................................... 4 800 Tons of Beef Produced Through Cattle Feed Program ............................................................. 4 Second Green Technology Center Opens ........................................................................................ 5 Dairy Farm Receives KZT 500 Million Funding................................................................................. 5 Dutch Company in Talks to Build Greenhouse Complex in Almaty ................................................. 5
Note: The Agriculture Bulletin presents a monthly roundup of headlines and news stories related to Kazakhstan’s agricultural sector. This bulletin is prepared by Business & Finance Consulting—a Swiss-based development finance consulting company with a long history of working in Eastern Europe, Central, South and South East Asia and North Africa. Read more »
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BFC. Agriculture Bulletin
State Initiatives 1)
Moratorium on Land Code Amendments Extended 5 Years
August 19th, 2016, http://www.inform.kz/eng/article/2939103; http://www.inform.kz/eng/article/2938876
A moratorium on amendments to the Land Code has been extended for five years. While the Land Reform Commission put forward good proposals – including limiting the size of lease plots and provisions targeting ineffective land use – the moratorium will allow further analysis of international best practice and its presentation to the people, according to President Nursultan Nazarbayev. Reforms were discussed with the view of attracting greater investment in the agro-industrial sector, added Nazarbayev. The sale and lease of land to foreigners must be constitutionally prohibited believes President of the Center for Humanitarian and Political Trends Yessenzhol Aldiyarov. The moratorium was initiated by Minister of Agriculture Askar Myrzakhmetov on August 13 in the wake of rising tensions related to Land Code Reform.
2)
Milk Collection and Cooperative Program Announced
August 11th, 2016, http://www.dailynews.kz/economics/bolee_190_selhozkooperativov_budet_organizovano_do_kontsa_2016_goda_v_rk http://bnews.kz/en/news/ekonomika/apk/ministry_of_agriculture_promises_to_reducemilk_pricesby_20_over_three_years2016_08_11-1285501
A further 190 dairy cooperatives will be created by the end of 2016 using Employment Roadmap 2020 (ERM -2020) funds, announced the Ministry of Agriculture’s Yerkebulan Akhmetov, creating an estimated 67,000 permanent jobs in the process. An expected 147 milk collection points and 2,786 feedlots will be united in an attempt to improve the current average 60% capacity usage across the country’s 152 processing facilities. Roughly 70-80% of milk and meat is produced within the country, however harvest, transport and infrastructure issues result in processing facilities operating below capacity. The Ministry of Agriculture plans to improve capacity usage to an average 70% over 3 years, thus reducing the price of milk by 20%, according to Akhmetov. Sectors that would benefit from cooperativization include wool and skin processing, fruit growing, beekeeping, poultry farming and fishing, said Akhmetov. Kazakhstan currently comprises 1.5 million self-employed individuals.
3)
Ministry of Agriculture to Discuss Processing Issues with Industry Representatives
August 11th, 2016, http://www.dailynews.kz/economics/premer_ministr_rk_poruchil_sozdat_rabochuju_gruppu_po_problemnym_voprosam_pere rabotki_selhozproduktsii
The Prime Minister requested the Ministry of Agriculture put together a working group with agricultural processing industry representatives to address sector issues. These include veterinary and food safety standards, high processing costs, and high raw material prices according to Corporation AIC – a grain and agricultural equipment enterprise.
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BFC. Agriculture Bulletin
4)
Training Programs and Online Consultation Portal Launched
August 5th, 2016, http://astanatimes.com/2016/08/online-resource-for-farmers-launches-in-kazakhstan/
The National Chamber of Entrepreneurs “Atameken” announced plans to train 10,000 agricultural entrepreneurs by the end of the year in agricultural technology, assessment and implementation, cooperation development, and state support programs, said Director Toleutai Rakhimbekov. In addition, a 24/7 consultation service is being launched at www.fermers.kz. A seminar to promote cooperation between agricultural experts and program lecturers in relation to 25 agribusiness priority areas set out by the Ministry of Agriculture was also held. In total Atameken has developed 97 training programs, including 50 animal farming programs and 47 crop cultivation programs. The programs will be implemented by Atameken’s Centre for Agro Competencies, set up to help reach the Ministry of Agriculture’s agricultural extension targets.
Private Sector 5)
State Reserve Forward Purchases Grain Worth KZT 15.4 Billion
September 5th, 2016, http://www.kazagro.kz/en/holding?p_p_id=newsportlet_WAR_
As of August 31, the National Company Food Contract Corporation (NCFCC) agreed the forward purchase of KZT 15.4 billion tenge worth of grain from 1,820 producers covering 2.6 million hectares of cultivated land. Farmers must deliver the grain by November 1, 2016. The NCFCC is charged with managing state grain reserves.
6)
5.1 Million Tons of Grain Harvested to Date this Year
September 2nd, 2016, http://www.apk-inform.com/en/news/1071938#.V80OPKLp7m4
As of September 1, the grain harvest totaled 5.1 million tons – a twofold increase year-on-year – across 3.26 million hectares, representing 21.3% of the grain crop, announced the Ministry of Agriculture. Yields were 1.56 tons per hectare, a 0.25 t/ha increase year-on-year. North Kazakhstan oblast harvested 1.44 million tons; Almaty oblast 651,900 tons; Jambyl oblast 584,600 tons; Kostanay oblast 523,000 tons; South Kazakhstan oblast 419,200 tons; East Kazakhstan oblast 402,700 tons; Akmola oblast 333,700 tons; West Kazakhstan oblast 276,900 tons; Aktobe oblast 192,900 tons; Pavlodar oblast 170,900 tons; Kraganda oblast 71,800 tons; and Kyzylorda oblast 31,500 tons.
7)
Domestic Apple Production Meets Only 50% of Demand
August 24th, 2016, http://finprom.kz/ru/article/kazahstan-sdaet-pozicii-v-fruktovoj-industrii-za-5-mesyacev-yablochnyj-importv-roznichnyh-cenah-prevysil-152-milliarda-tenge-v-2015-godu-kazahstan-zavez-yablok-na-40-milliardov-tenge
In 2015, the Kazakh apple market was worth KZT 76 billion, of which domestic produce comprised KZT 36 billion. During the same period, apple exports totaled a mere 813 tons worth KZT 0.2 billion. Over the past 5 years, local production has met just under half of domestic demand. Lack of storage capacity is the main issue, with funds lacking for investment in logistics. Farmers cannot compete with importers out of season. Producers hope the government will build storage facilities in the short term, while developing domestic and international market access in the medium term.
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BFC. Agriculture Bulletin
8)
RUB 1.8 billion Agricultural Machinery Leasing Program Announced
August 24th, 2016, http://www.kazagro.kz/en/holding?p_p_id=newsportlet_WAR_
KazAgroFinance company – assigned with financing the government’s agricultural programs – and Citibank, Russia, have agreed a RUB 1.8 billion deal to purchase and lease Russian-built agricultural machinery in Kazakhstan. Currently, it is difficult to obtain agricultural loans in local currency. Since the Russian ruble’s and Kazakh tenge’s movements on the international currency market are closely linked, the former provides a stable alternative, minimizing risks
9)
Kazakh-British Green Economy Transition Seminar Held
August 23rd, 2016, http://ca-news.org/news:1325104
Kazakh and British scientists held a seminar on green economy transition focusing on the interrelation of food, energy and water. The seminar – intended to inform institutional policy making – was held as part of the Newton-Al Farabi Partnership Programme, aimed at promoting scientific cooperation in the food, energy, and water management sectors, amongst others.
10) Agricultural Output Totals KZT 1.05 Billion in First Half of 2016 August 22nd, 2016, http://eng.kazakh-zerno.kz/index.php?option=com_content&task=view&id=1468
From January-July 2016, agricultural output totaled KZT 1.05 billion, a 2.5% increase year-on-year, according to the Statistics Committee of the Ministry of National Economy. Over the same period, crop output increased 2.4%, while livestock output increased 2.5%. Agricultural output grew in 12 of Kazakhstan’s 14 regions.
11) 800 Tons of Beef Produced Through Cattle Feed Program August 19th, 2016, http://www.kazagro.kz/en/holding?p_p_id=newsportlet_WAR_newsportlet&p_p_lifecycle=0&p_p_state=
Participants in the “Amanat” animal feed program have seen average live weight increase to 410 kg – above the national average. In total, 800 tons of beef were produced through the program. KazAgroProduct – the KazAgro subsidiary charged with implementing the program – provides participants with cattle weighing services, feed stock control, and other consulting and practical assistance. Located in the Zhambyl district of Almaty region, Empire Food saw 1381 cattle pass through the program. Average daily weight gain was recorded at 1.2kg. The farm uses hay-type feed, with the addition of oilcakes, grain meal, beer vinasse and nutritional supplements. It has 30 staff and a max capacity of 3,000 cattle. Also located in the Zhambyl district of Almaty region, Zhaksylyk farm, saw 704 cattle pass through the program. Average daily weight gain totaled 1.1 kg. The farm uses hay-type feed with bran and nutritional additives. It has 20 employees and a max capacity of 3,000 cattle. Located in the Balkhash district of Almaty region, OtesBioAsia saw 5330 cattle pass through the program. Average daily weight gain totaled 1.2 kg. The farm uses silage-haylage-type feed with spent grain. It has 36 employees and a max capacity of 5,000 cattle. Located in the Rayimbet district of Almaty region, “Meat Processing and Services” farm joined in February 2016 and has seen 930 cattle pass through the program since June. No average daily weight gain was given. The farm uses silage-haylage-type feed with nutritional additives. It has 12 employees and a max capacity of 3000 cattle.
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BFC. Agriculture Bulletin
12) Second Green Technology Center Opens August 15th, 2016, http://astanatimes.com/2016/08/green-technologies-distribution-centre-opens-in-astana/
The G-Global Coalition for a Green Economy and Development announced the opening of a green technology distribution center at the Karaganda Agro-Technical College. The center will promote energy efficient technologies as well as organic agriculture, amongst other green economy applications. It is the second center of its kind in Kazakhstan in addition to the National Academy of Green Technologies (NAGT) near Astana. Over 20 technologies are currently being tested at the NAGT, which also acts as a training center for local government, social institution, and rural enterprise representatives.
13) Dairy Farm Receives KZT 500 Million Funding August 15th, 2016, http://www.kazagro.kz/en/holding?p_p_id=newsportlet_WAR_newsportlet&p_p
Located in Arkabay, Almaty region, Baiserk-Agro dairy farm received more than KZT 500 million in funding from Agrarian Credit Corporation – a lending subsidiary of KazAgro, the company responsible for implementing the government’s agricultural projects. The farm was able to increase capacity to 850 cattle, undertake construction work, and purchase new equipment. Baiserk-Agro hopes to produce daily 16 tons of milk. The funds came as part of the government program: 100 steps to 5 institutional reforms.
14) Dutch Company in Talks to Build Greenhouse Complex in Almaty August 8th, 2016, http://www.inform.kz/eng/article/2934506
Staay Food Group is in talks with Almaty council to open a state-of-the-art greenhouse complex in the city. Founded in 1946, Netherlands-based Staay Food Group is a fresh fruit and vegetable producer operating in the Netherlands, Spain, Israel, Egypt, Eastern Europe and South America, amongst others.
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Prepared by Business & Finance Consulting (BFC) www.bfconsulting.com In this bulletin, BFC provides extracts from articles that have been published by others and as a result cannot be held responsible for such content. The articles do not necessarily reflect the opinions of BFC, its staff, its associates or its partners. Copyright of articles is retained by their authors.