Emblem
Official Source of the
Prime Minister of the
Republic of Kazakhstan
Menu
Emblem
Close button

Wholesale markets to be created in Kazakhstan based on example of Spain and France

Tuesday, 04 February 2020, 14:02:28

At a press conference in the Government, the Minister of Trade and Integration Bakhyt Sultanov spoke about the measures taken to stabilize prices for socially significant food products and the creation of wholesale distribution centers.

As Sultanov noted, a whole range of reasons affects the price stability of socially significant food products. Including — production volumes and insufficiency of certain products, import dependence of these products.

“Despite the fact that today the Minister of Agriculture said that we produce twice as much rice as we consume, there is still a dependence on rice imports. Since we consume some types of rice that we do not produce today due to climatic conditions. However, import dependency affects pricing. But the deficit is not in itself,” the minister said.

Also, price fluctuations are affected by the loss of producers during production, movement and various barriers to their delivery to consumers, in general, the lack of a complete effective system for distributing food and other goods through a wide network of intermediaries.

“For example, a product from a garden is 4 or 5 times more expensive. We lose value added, it remains tax-free. This is a big problem. Ultimately, this leads to an unreasonable and often increased price increase,” Sultanov said.

As the minister noted, speaking of price stabilization, it is necessary to completely solve the problem from production or import of products to the correct distribution and delivery to the consumer. In this regard, special attention must be paid to the creation of wholesale distribution centers. The minister cited the example of Spain and France, representative countries in terms of wholesale food markets.

“We are carefully studying international experience. Just recently, I personally visited countries such as Spain and France, got acquainted with the systems of wholesale distribution centers. This is one of the big elements that affects prices. This was an interesting experience in these countries,” said Bakhyt Sultanov.

So, according to him, large wholesale distribution centers with state participation were created in Spain and France. Such centers have already existed for more than half a century. They affect the saturation of the market with the necessary products, created a transparent, understandable contact between manufacturers and wholesale buyers. This affects the possibility of expanding the competitive network of objects of trade and product access to the consumer.

For reference: Spain has one of the most successful companies in Europe, which owns 23 modern wholesale agricultural markets. It was created by the Spanish government in 1965, and still remains under the control of the authorities. Up to 65% of fruits and vegetables, 55% of fish and seafood are sold through wholesale markets.

In France, in the middle of the twentieth century, the government created a network of 16 national wholesale markets (now more than 3,500 agricultural producers and 2,100 wholesalers are working with them). The largest market in Europe is RUNGIS in the suburbs of the French capital and provides products not only to Paris and its environs, but also to neighboring countries — covering a population of more than 18 million people. Turnover — 1.7 million tons of various food products worth more than nine billion euros.

At the same time, 56.73% of the share capital is owned by the state and state-owned companies. All wholesalers within a radius of 20 km from Rungis are required to sell their goods only in the wholesale market. And, as in Spain, only manufacturers and merchants can buy on the wholesale market.

Kazakhstan has already begun work on the creation of such wholesale markets. Together with the Asian Development Bank (which has extensive experience in implementing such projects), work is underway to predict the flow of goods from producer to consumer.

“We are pulling up a number of development institutions for this work, which will help us not only to study international experience, but will together with us ensure the formation of the correct financial and economic model for building such a system. In general, we call it an efficient commodity distribution system,” the minister said.

Sultanov also informed that in the future it is planned to carry out a lot of work with neighboring countries to create an efficient commodity distribution infrastructure.

“The same experience exists in neighboring countries — in Uzbekistan and Kyrgyzstan. It is very important to note that we must also cooperate with our southern neighbors. Because we are in similar climatic conditions and very often we have the same problem — seasonal foods ripen at the same time, we try to realize all this together, to compete incorrectly, although it could be spread out in time, in sales markets. Therefore, we together with our neighbors will cooperate in this work and create an effective commodity distribution system,” the minister said.

These measures will allow producers to obtain guaranteed sales and reduce losses. As a result, the money they lose today can be invested in technology, the productivity of their production, and storage infrastructure. According to the ministry, this will ultimately lead to lower costs for manufacturers.


News feed
10 July 2020, 15:07
Government sums up results of socio-economic development for first half of 2020
09 July 2020, 16:13
Operational Headquarters on COVID-19 keeps situation in regions under control
09 July 2020, 14:15
Government's anti-crisis measures: Restoring economic growth and supporting SMEs
07 July 2020, 18:40
Aigul Shaimova appointed vice minister of national economy
07 July 2020, 18:35
Madina Zhunusbekova relieved as vice minister of national economy
07 July 2020, 18:29
Nariman Mukushev relieved as vice minister of labor and social protection of the population of Kazakhstan
07 July 2020, 18:20
How development indicators of AIFC financial market changed during pandemic?
07 July 2020, 16:56
Investment attraction, large-scale construction and international recognition — how the main city of Kazakhstan developed
07 July 2020, 12:10
Tollways, repair and maintenance of roads, introduction of new technologies — interview with Chair of Roads Committee Sairanbek Barmakov
02 July 2020, 23:50
New format of dealmaking and transition to distance education — how online discussions of global economy during the pandemic took place
02 July 2020, 12:07
State Commission approves measures to stabilize epidemiological situation in Kazakhstan
01 July 2020, 18:37
Astana Finance Days: Experts on challenges and opportunities of Islamic finance and fintech industry in post-pandemic era
30 June 2020, 17:49
Prime Minister Askar Mamin holds session of Council of Eurasian Development Bank
30 June 2020, 16:45
Prime Minister of Kazakhstan Askar Mamin held a telephone conversation with Chair of the Russian Government Mikhail Mishustin
30 June 2020, 13:18
Annual demand for IT specialists reached over 30 thousand people — Ministry of Digital Development, Innovation and Aerospace Industry
30 June 2020, 11:18
AIFC proposes to create EduTech Center and Educational IT Alliance
30 June 2020, 11:08
By 2030, educational institutions of Kazakhstan will train over 3 million specialists of new formation — Ministry of Education and Science
30 June 2020, 11:06
Reduction in shadow economy in 2019 gave additional revenue of 1.5 trillion tenge to budget of Kazakhstan
30 June 2020, 10:54
Prime Minister Askar Mamin instructs to implement large-scale project ‘’Digital Bilim” to increase digital literacy
30 June 2020, 10:32
By 2025, shadow economy to be reduced to 20% of GDP — Ruslan Dalenov
30 June 2020, 10:12
97% of entrepreneurs switched to online cash registers — Ministry of Finance
29 June 2020, 18:59
How the Year of the Volunteer implemented, what kind of support the country's media receive and how civil society develops — Aida Balayeva reports to the public
29 June 2020, 17:12
Government session to be held June 30 in Ukimet Uyi
28 June 2020, 09:56
Video Digest: Main events of the week, No. 67
27 June 2020, 10:28
Prime Minister Askar Mamin congratulates media workers on their professional holiday
26 June 2020, 18:59
Bolat Tlepov appointed vice minister of information and social development of the Republic of Kazakhstan
26 June 2020, 18:49
Daniyar Yesin relieved as vice minister of information and social development of the Republic of Kazakhstan
26 June 2020, 18:14
Results in social sphere for 5 months of 2020: Restoring employment and providing new types of support
26 June 2020, 14:14
Azhar Giniyat appointed vice minister of healthcare of the Republic of Kazakhstan
26 June 2020, 14:12
Lyazzat Aktayeva relieved as vice minister of healthcare of the Republic of Kazakhstan
26 June 2020, 14:06
Marat Shoranov appointed first vice minister of healthcare of the Republic of Kazakhstan
26 June 2020, 13:39
Daniyar Vagapov appointed deputy chair of National Bank of Kazakhstan
25 June 2020, 19:05
Prime Minister Askar Mamin holds meeting of Commission on Digitalization under President of Kazakhstan
25 June 2020, 18:24
Prime Minister Askar Mamin introduces Minister of Healthcare Alexey Tsoy
25 June 2020, 08:58
Roman Sklyar discusses development of cooperation in agriculture with German companies
24 June 2020, 18:00
Prime Minister Askar Mamin holds meeting of Council on Transition to Green Economy under President of Kazakhstan
24 June 2020, 10:25
Roman Sklyar holds meeting of Project Office for Entrepreneurship
23 June 2020, 18:59
Gabidulla Ospankulov relieved as vice minister of information and social development of the Republic of Kazakhstan
23 June 2020, 13:18
In second half of 2020, Kazakhstan will continue to reduce oil production
23 June 2020, 12:58
Small and medium-sized enterprises can apply for new loan deferral — Madina Abylkassymova
23 June 2020, 10:59
Prime Minister Askar Mamin congratulates civil servants of Kazakhstan on their professional holiday
23 June 2020, 10:24
Prime Minister Askar Mamin congratulates police of Kazakhstan on their professional holiday
23 June 2020, 10:21
Prime Minister Askar Mamin instructed to ensure readiness for heating season
23 June 2020, 10:11
Government adopts measures to improve business climate in Kazakhstan
23 June 2020, 10:08
Beibut Atamkulov on heating season: Particular attention will be paid to preparing health facilities and residential buildings
23 June 2020, 09:57
As part of preparations for autumn-winter period, country plans to repair 8 power units, 59 boilers, 44 turbines — Ministry of Energy
23 June 2020, 09:34
Production of small and medium-sized businesses amounted to 31.2 trillion tenge in 2019 — Ministry of National Economy
22 June 2020, 17:03
Government session to be held June 23 in Ukimet Uyi
22 June 2020, 15:21
Prime Minister Askar Mamin introduces First Vice Minister of Healthcare Alexey Tsoy
22 June 2020, 13:38
Ruslan Abdikalikov appointed chair of Information Security Committee of Ministry of Digital Development, Innovation and Aerospace Industry
© 2019 - 2020 Press service of the Prime Minister of the Republic of Kazakhstan.
Developed by SoftDeCo.