Kazakhstan identifies leading areas for implemented investment projects in agricultural sector

At the government session chaired by Prime Minister Askar Mamin, the implementation of investment projects in the agricultural sector was considered. Minister of Agriculture Yerbol Karashukeyev, Vice Minister of Ecology, Geology and Natural Resources Akhmetzhan Primkulov, Chair of the Board of JSC NMH Baiterek Aidar Arifkhanov presented their reports on the topic.

So, according to the Minister of Agriculture E. Karashukeev, at the end of 11 months of 2021, the total investment in fixed assets of the agro-industrial complex amounted to 659.7 billion tenge and increased by 40.5% compared to the same period last year. Also, investments in fixed assets in food production amounted to 91.2 billion tenge, which is 2.6% more than last year.

“The Ministry of Agriculture, together with local executive bodies, developed and approved Roadmaps for the implementation of investment projects in the agro-industrial complex for 2021-2025. In accordance with the Road Maps, a pool of 934 investment projects has been drawn up for a total of 4.4 trillion tenge,” said the head of the Ministry of Agriculture of the Republic of Kazakhstan.

From this pool of projects, the main large areas have been identified:

  • meat production — 301 projects worth 1 trillion tenge;
  • greenhouse complexes — 67 projects worth 1 trillion tenge;
  • dairy farming — 186 projects worth 452 billion tenge;
  • poultry farming — 47 poultry farms in the amount of 373 billion tenge;
  • processing of crop products — 73 projects worth 300 billion tenge.

In 5 years, sugar provision will be increased to 80%, the total amount of projects is 228 billion tenge. In the field of intensive gardening, 32 projects are planned for the amount of 100 billion tenge. Within the framework of other areas, it is planned to implement 225 projects for a total amount of 834 billion tenge, which include projects for irrigation, seed production, food production, etc.

According to the approved Roadmaps, out of 285 projects planned for 2021 for the amount of 263 billion tenge following the results of 11 months of this year. 268 projects were put into operation in the amount of 241 billion tenge, according to the information of the akimats, by the end of this year, it is planned to implement 17 projects worth 22 billion tenge. The leaders in the already implemented projects are the North Kazakhstan, Kostanay, East Kazakhstan, Akmola, Karaganda regions. Execution for the implementation of investment projects in 2021 is 94%.

Within the framework of investment projects, the situation is as follows. Following the results of 11 months, 27 projects for the processing of crop products were put into operation for the amount of 34.3 billion tenge, 6 meat processing plants for the amount of 7.5 billion tenge, 14 projects for laying orchards for the amount of 10.3 billion tenge, 6 projects for the production of food for the amount of 2.3 billion tenge, 4 seed projects for the amount of 1.7 billion tenge, as well as 28 reproducers for the amount of 12.9 billion tenge.

According to the regional akimats, by the end of the year it is planned to implement 17 projects worth 22 billion tenge.

In order to increase the volume of exported products, the ministry is systematically working to develop the export potential of agricultural products, focusing on the export of processed products.

For 9 months of 2021, the volume of exports of agricultural products amounted to $2.6 billion and increased by 14.3% compared to the same period in 2020. The volume of exports of processed products of the agro-industrial complex amounted to $950.5 million, which is 2.4% higher than the same period in 2020. In the structure of exports of agricultural products, the share of exports of processed products was 37%.

“The Ministry of Agriculture is monitoring the supply of the domestic market for 29 main types of food products. Thus, for the main types of food products, the provision of the domestic market at the expense of domestic production is about 85%, such goods as poultry meat, sausages, cheeses and cottage cheese, apples, sugar and fish still depend on imports. So, in 2021, compared to the same period last year, there is an increase in the production of cheese and cottage cheese by 18.6%, sausages by 9.5%, apples by 7%, sugar by 28.9%, fish by 10.1%," Karashukeyev informed.

As part of the implementation of the III direction of the Employment Roadmap program, the minutes of the meeting of the Interdepartmental Commission on Employment of the Population dated Oct. 18, 2021 approved a list of 40 investment projects of the agro-industrial complex worth 311.9 billion tenge and the amount of financing 100 billion tenge through financing through subsidiaries of JSC NMH Baiterek. According to preliminary estimates, the implementation of 40 investment projects will create 4,263 jobs.

The ministry is working on the implementation of the 10 largest investment projects in the agro-industrial complex with the participation of transnational companies. The total investment is $2.3 billion.

Tyson Foods envisages the construction of a meat processing plant with a total cost of $300 million.

Valmont is implementing a project to build a plant for the production of sprinklers with a total investment of $50 million.

Projects with the participation of Swiss companies are also being worked out. KS Genetics is planning a project to build a plant for the creation of an innovative, export-oriented full-cycle livestock complex in the Almaty region with a total cost of $49 million.

INOKS is implementing a project on building an intensive garden of 1,000 ha and the construction of fruits storage containing 7,900 tons, as well as fruits processing plants in the Almaty region worth $81.5 million.

The Dutch company Farm Frites plans to build a plant for the production of French fries in the Zhambyl region. The cost of the project is $145 million.

The QazSugar company is implementing a project to build a sugar plant in the Zhambyl region with a total cost of $220 million.

Ecocultura, a Russian agro-industrial holding, is constructing a greenhouse complex with an area of 500 ha and a total cost of $1.3 billion in the Turkistan region.

Fruit Art plans to implement a project for the construction of a freeze-drying plant, a fruit storage facility, a greenhouse complex and plantations in the Almaty region with a total cost of $77 million.

Goknur Gina, a Turkish company, plans to implement a project on creating an intensive garden with an area of 5,000 ha and the construction of a fruit processing plant in the Zhambyl region with a total project cost of $98 million.

The German company Baumann is currently implementing a project to build a meat processing plant for processing mutton in the amount of $31.2 million in the Almaty region.

“The ministry is taking all the necessary measures to implement projects, as well as to intensify work to attract investments in the agro-industrial complex. This year, of the planned projects, 17 projects worth 22 billion tenge remain to be commissioned. In this regard, it is necessary to intensify work on the timely implementation and commissioning of investment projects on time,” the Minister of Agriculture said in conclusion.

Favorable conditions for business in the field of fisheries are being created in Kazakhstan — Akhmetzhan Primkulov

Vice-Minister of Ecology, Geology and Natural Resources Akhmetzhan Primkulov reported on the implementation of projects in the fisheries sector. So, according to him, the point of growth in the development of the fish industry is fish farming. Currently, the task has been set to increase the volume of farmed fish to 270 thousand tons per year by 2030. For this, more than 1,000 new fish farms will be created.

“According to operational information, since the beginning of the year, fish farmers have grown about 12 thousand tons of marketable fish, while the plan is 12.8 thousand. By the end of the year, this indicator will be met in full. In turn, the volume of fish catch increased by 3% compared to last year,” Primkulov said.

At the legislative level, favorable conditions are created for business in the field of fisheries. The most important of which is the expansion of existing state support measures, the elimination of unnecessary requirements for fish farms during their construction and operation. Thanks to this, this year, 9 investment projects have already been implemented in the agro-industrial complex for the production of fish, the total capacity of which is about 10 thousand tons with the creation of 280 jobs and the attraction of 3.2 billion tenge of private investment.

Some of these fish farms are raising new types of fish, such as trout, tilapia, African catfish, which are not traditional for Kazakhstan, but are commercially attractive due to the receipt of a marketable mass in a short time. The largest projects have been implemented in the Turkestan, Aktobe and East Kazakhstan regions.

Together with fish farming projects, two fish processing projects have been implemented, which are located in the Kyzylorda region.

“Along with industrial fish farming investment projects, we are taking measures to implement projects using natural reservoirs. This year, 113 new lake-commercial fish-breeding and cage farms were created, due to which we expect to attract about 5.8 billion tenge of private investment and grow up to 10 thousand tons of fish per year with the creation of up to one thousand jobs,” added the vice minister.

In addition, this year, 32 projects have been launched with a volume of fish farming of 129 thousand tons with completion dates from 2022 to 2025. It is expected to attract about 182 billion tenge of investments.

So, for the project of LLP Aquafaktoria for the cultivation of sturgeon in the Akmola region received a positive conclusion of the state examination. The issue of concluding a loan insurance contract is being resolved. This will make it possible to use borrowed funds in the amount of 2.7 billion tenge to start construction.

Under the project for the construction of a plant for the production of fish feed with a capacity of up to 300 tons per day on the territory of the FEZ Saryarka in the Karaganda region, earth works are currently underway. Also, by the end of the year, the design will be completed with the involvement of specialists from Azerbaijan, Germany and Israel. The investment volume is 30 billion tenge.

Construction and installation work is underway on 5 projects in Almaty, Zhambyl, Kostanay and Mangystau regions. Reservoirs have been fixed on 2 projects in the Almaty region.

The ministry, together with state bodies and regional akimats, will continue to work on the practical implementation and achievement of all program indicators, as well as the implementation of investment projects.

Until the end of this year, financing of another 19 investment projects is planned.

Chair of the Board of JSC NMH Baiterek Aidar Arifkhanov said that the holding for 10 months of this year. financing of the agro-industrial complex for 393 billion tenge was ensured, so

  • 70 billion tenge was allocated for carrying out spring field and harvesting works;
  • financing the purchase of agricultural machinery on lease amounted to 132 billion tenge;
  • microcrediting in the countryside was carried out in the amount of 60 billion tenge;
  • through the funding system of financial institutions, loans in the amount of 65 billion tenge were directed to the industry;
  • direct lending amounted to about 31 billion tenge.

At the same time, 35 billion tenge was allocated to finance investment projects in the agro-industrial complex. Until the end of this year. it is planned to finance another 19 investment projects in the amount of 33 billion tenge.

Of those planned by the Ministry of Agriculture for implementation in the current year a pool of 285 investment projects, initiators of 69 projects with a funding amount of 63 billion tenge applied to the holding's subsidiaries.

Of these projects, the subsidiaries of the holding have funded 67 projects and 2 projects are at the approval stage.

With the financial support of the holding, 56 projects were put into operation with a total cost of 62 billion tenge, while 1,695 permanent and 204 temporary jobs were created.

“Special attention is paid to projects within the framework of import substitution of products in such areas as the production of sugar, poultry, apples, dairy and fish products. In this year the holding approved for financing 5 investment projects for import substitution with a funding volume of 92 billion tenge. The holding will continue to increase the volume of support in this direction. 16 projects for 21 billion tenge are under consideration by subsidiaries,” Arifkhanov informed.

It is worth noting that the 1st and 2nd stages of the Makinsk poultry farm, as well as the construction of the oil-press plant Maslo-Del Petropavlovsk were financed by the Development Bank of Kazakhstan, the rest of the projects are being implemented with the support of the Agrarian Credit Corporation.

Currently, a number of large projects are being worked out — QAZSUGAR construction of a sugar plant with a capacity of 150 thousand tons of sugar per year, the third stage of the Makinsk poultry farm with a production capacity of 30 thousand tons of poultry meat in live weight, as well as other large projects.

The implementation of the third direction of the Employment Roadmap is expected through the mechanisms of financing investment projects of the agro-industrial complex by the following subsidiaries of the Holding:

ACC — 34.1 billion tenge;

DBK — 32.2 billion tenge;

Kazyna Capital Management — 33.7 billion tenge.

By the decision of the IAC of Oct. 18, 2021, a list of 40 investment projects of the agro-industrial complex in the amount of 100 billion tenge was approved within the framework of the Business Roadmap.

On Oct. 27, the first tranche in the amount of 50 billion tenge was attracted.

As of Dec. 8, 2021, within the framework of the implementation of the third direction of the Business Roadmap program, 6 investment projects were financed in the amount of 4.2 billion tenge.

Akim of the North Kazakhstan region Kumar Aksakalov reported that, within the framework of the Development Roadmap until 2025, it is planned to implement 103 investment projects worth about 185 billion tenge.

This year in the region, 36 projects for 37 billion tenge are planned and implemented. Of these, through NUH Baiterek JSC and its subsidiaries, projects for 8.4 billion tenge were financed, SEC Soltustik — 15 billion tenge, as well as through its own and borrowed funds for 13.6 billion tenge.

10 dairy farms were commissioned with a total livestock of 5 thousand heads.

The modernization of the Maslodel LLP plant was carried out, the amount of investments amounted to 4.8 billion tenge. The capacity of the enterprise increased from 89 to 119 thousand tons of raw materials processing per year.

The modernization of the Eurasian Milk LLP plant worth 10.5 billion tenge and the Taiynsha Mai LLP oilseed processing plant were completed.

Expansion of the EMC Agro LLP pig-breeding complex from 50 to 100 thousand heads, bringing the capacity of the enterprise to 10 thousand tons of pork, and next year will begin construction of the second stage with an increase in the livestock up to 200 thousand heads of one-time keeping.

4 cattle feedlots for 14.4 thousand head of cattle were commissioned for the amount of 6.6 billion tenge, three pedigree cattle reproducers for 1.5 thousand heads for 1.1 billion tenge, one poultry farm for meat production with a total capacity of 1 thousand tons.

A compound feed workshop with a capacity of up to 100 thousand tons / year was launched.

Just yesterday, a plant for the production of agricultural crops LLP Atameken-Agro-Korneevka was launched, with a capacity of 60 thousand tons of seeds per year, the project cost is 1 billion tenge.

In general, the implementation of the pool of investment projects will increase the production of agricultural products and increase the export potential of the region. Akim of Zhambyl region Berdibek Saparbayev reported that norms of consumption of socially significant goods in the region were calculated in the region. Of the 19 types of social food products, 9 are more, 8 are 50% provided, 2 are supplied from other regions.

In this regard, the region has developed a Roadmap for the implementation of investment projects in the agro-industrial complex for 2021-2025, which includes 50 large promising investment projects with a total value of 350.4 billion tenge, with the creation of 3.6 thousand new jobs.

In 2021, work is underway to implement 18 projects worth 19.2 billion tenge. Including to date 17 projects have been implemented for a total amount of 18.9 billion tenge, 585 new jobs have been created. 1 project will be commissioned by the end of the year.

Out of 18 projects implemented this year, 6 were financed through second-tier banks and financial institutions, 1 project through the Enbek program. The remaining 11 projects are being implemented at the expense of investors' own funds.

If the investment projects planned until 2025 are implemented, it will be possible to increase the production of agricultural products, namely:

- raw milk by 76.5 thousand tons;

- meat of all kinds by 68.0 thousand tons;

- processing of dairy products by 41.6 thousand tons;

- sugar production for 150 thousand tons;

- sprinkler irrigation technology for 50 thousand tons;

- storage capacities for fruits and vegetables will be expanded by 106.1 thousand tons.

The volume of investments will grow up to 15-30 percent annually. In order to develop the fishery potential of the Zhambyl region in 2020, a regional program "Development of the fish industry in the Zhambyl region" was developed.

As a result of the work carried out with investors in the current year, along the Shu and Talas rivers, as well as other rivers, work has been organized on 18 new investment projects with a capacity of 1,778 tons with a total cost of 1.9 billion tenge.

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