Today at the meeting of the Government chaired by the Prime Minister Bakytzhan Sagintayev, the First Vice Minister of Agriculture, Arman Yevniev, presented the concept of the Program for the Development of Meat Livestock Breeding for 2018-2027.

As Arman Yevniev noted, the analysis of strategic directions of the development of agricultural sectors was conducted, following which 15 priority directions for the development of export and import substitution of agricultural products were identified.

"We see a great potential for the development of beef cattle and sheep breeding. All the necessary resources for the development of the meat industry in the country are available," the First Vice Minister of Agriculture stressed.

The implementation of the program, according to the Ministry of Agriculture, will create a new class of livestock farmers. It will ensure the growth of farms from 20 to 100 thousand, jobs for the rural population – from 100 to 500 thousand. At the same time, the number of cattle will increase from 7 million to 15 million heads, the production of beef and mutton – from 600 thousand tons to 1, 6 million tons, the export earnings of the industry – up to $2.4 billion, labor productivity per employee – from $1000 to $8000.

According to Arman Yevniev, farms will be the basis of the production model. They will unite in questions of trade, training and veterinary services. Provision of land and loans will be based on the selection of the best farmers. An indispensable condition is the use of genetics of pedigree animals and breed improvement in livestock. Feed production, including irrigated land, will be concentrated on feeding grounds.

Speaking about the mechanism for financing a typical farm, A. Yevniev noted that the costs of constructing a pasture inflow infrastructure will be covered by investment subsidies from akimats. Mobile lodging car, farm animal housing, mobile machine – will be provided through lending of the Fund for Financial Support of Agriculture JSC. Pedigree bulls for pedigree transformation will be provided by feeding grounds on a free basis. Acquisition of the same cows is planned to be carried out at the expense of credit resources under the Program of Productive Employment and Mass Entrepreneurship. Equipment for harvesting will be provided for leasing or borrowing through the KazAgro NMH.

The program will increase the investment attractiveness of the agricultural sector. At present, large meat companies have confirmed their participation in the implementation of the proposed strategy, including Inalca Eurasia (Europe), Cedar Group (Australia), and Chinese corporations Rifa Holding and Citic Group. In addition, the attraction of investment from Tyson Food, JBS and others is under consideration.

The MA RK has developed a detailed Roadmap for the implementation of the program for the development of meat livestock breeding with specific objectives and the time frame for their fulfillment. The Roadmap is proposed to be included in the State Program for the Development of the AIC for 2017-2021.

The main objective of the program will be the development of farms. Nurlybek Malelov, chairman of the board of KazAgro NMH, in his report noted that within the framework of the new program it is planned to finance farms – the small business entities through the KazAgro structures. Thus, farmers will be able to receive loans from 4% per annum, taking into account subsidizing the interest rate for up to 15 years for the purchase of a pedigree stock for further breeding, agricultural machinery and equipment for fodder production, the construction of livestock premises, replenishment of working capital and other purposes for doing business. In total, about 50 billion tenge will be allocated to finance farmers this year.

The concept of the program was developed with the participation of experts from international organizations, such as the World Bank, the Asian Development Bank, which will also actively participate in the implementation of the Program with the involvement of its own funds. World Bank Permanent Representative in Kazakhstan, Ato Brown, said in his speech that this program is very important for the growth model that Kazakhstan chose in terms of economic diversification. The importance of trade facilitation in agriculture was noted, as Kazakhstan's products are in demand in the markets of Russia, China, and Central Asia.

Chairman of the Board of the Atameken NCE, Ablay Myrzakhmetov, in his turn, noted that the new Program will have a positive impact on livestock development.

"This program raises issues not only for meat production, but also important issues such as effective use of pastures, increasing the volume of irrigated pastures. I would especially like to emphasize that the Program is aimed at the development of feed production," A. Myrzakhmetov noted.

During the meeting of the Government, representatives of the agricultural sector also commented on the concept of the new program. Vice-President of the transnational corporation Inalca Eurasia, Andrey Vakulin, focused on the importance and relevance of the program under discussion.

"Kazakhstan has a huge advantage in the field of meat livestock: it is people who know how to work with cattle, the largest array of natural pastures in the world and proximity to the main consumption markets," A. Vakulin believes.

According to him, the basis of meat livestock in the developed countries with developed livestock breeding is 50 cattle farms. Such countries as the US, Australia, and Canada are based on the capacities of small farming.

"The program discussed today is aimed at creating a modern meat cattle breeding infrastructure that will facilitate access to financing for a small farmer, modern technological solutions, and will provide the sales market. The concept takes as much as possible from the experience of such developed countries as Australia, Canada, which have gone a long way to win their place in the world markets. I think that this program will maximize the realization of the human potential and potential of the Kazakh land," said Andrey Vakulin.

At the same time, the speaker noted that Inalca Eurasia is planning to begin the project to build a meat-packing plant with the capacity of 180 thousand slaughter heads annually at the end of May.

"We are planning several such enterprises and with the development of this program I hope that we will get both cooperation and a large enterprise," A. Vakulin summed up.

Member of the Board of Zernovaya Industriya JSC, Alzhan Khabiev, in his turn, noted that the National Program for the Development of Meat Livestock for 2018-2027 is written in the language of the investor, who clearly understands what he needs to develop business in the meat industry.

"For the first time we, as business, took part in the writing and the formation of this program. The Program is based on a clear technology that is practiced all over the world, and most importantly, there are no imposed conditions for business," A. Khabiev said.

The company Sever Agro N implements meat cooperation in the territory of the Kostanay region, it includes all the technological chains: farms, feed producers, modern fattening of livestock, meat processing plant and promotion of products.

"We believe that the measures envisaged in the Program will undoubtedly give impetus to the development of beef cattle breeding in the country. Our country can be one of the world's largest producers of agrarian export products, especially meat production," said Alzhan Khabiev, a member of the board of JSC Zernovaya Industriya.

Also the akims of a number of regions took part in the meeting: Kostanay – A. Mukhambetov, Pavlodar – B. Bakauov, Almaty – A. Batalov, Aktobe – B. Saparbayev, and Deputy Prime Minister – Minister of Agriculture, U. Shukeyev.

Following the consideration of the issue, the Prime Minister Bakytzhan Sagintayev recalled that the Head of State in his Address "Third Modernization of Kazakhstan: Global Competitiveness" set the task: the agrarian sector should become a new driver of the economy.

An important component of agriculture is meat livestock breeding. Barriers have been lifted for the supply of sheep products, horses to China, cattle and small ruminants to the UAE. By the end of the year, work will be completed on the supply of cattle to China.

"New large markets are opening up. It is necessary to discuss once again all the questions concerning the planned activities with the relevant bodies. The complex of measures for the development of meat livestock breeding should be envisaged in the framework of introducing changes and additions to the State Program for the Development of the AIC for 2017-2021," Bakytzhan Sagintayev said.

Coordination is assigned to the Deputy Prime Minister, U. Shukeyev.

---

Stay in touch with the news of the Prime Minister and the Government of Kazakhstan — follow the official Telegram channel

• 
• 
• 
•