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
12 April 2021, 18:10
Yerbol Karashukeyev appointed Vice Minister of Finance of the Republic of Kazakhstan
12 April 2021, 15:03
Rostislav Konyashkin appointed chair of Management Board of JSC NIT
12 April 2021, 13:28
Machine industry of Kazakhstan demonstrates a tendency of stable growth — Beibut Atamkulov
12 April 2021, 12:46
Important indicator of work of executive bodies is prevention of growth in prices for socially significant goods — Bakhyt Sultanov
12 April 2021, 11:39
Local budget revenue plans overfulfilled in all regions — Yerulan Zhamaubayev
12 April 2021, 11:38
High investment activity maintained in most regions of Kazakhstan — Aset Irgaliyev
12 April 2021, 11:30
Applications for early withdrawal of pension savings worth over 1 trillion tenge approved — Erbolat Dossaev
12 April 2021, 11:25
Until September 2021, it is planned to provide access to vaccination for about 10 million Kazakhstanis — Ministry of Healthcare
12 April 2021, 11:08
In the first quarter of 2021, basic sectors of Kazakhstan’s economy showed steady growth
12 April 2021, 10:57
Askar Mamin instructs to ensure implementation of vaccination schedule
11 April 2021, 08:09
Central Asia's largest tourist complex Keruen-Saray opens in Turkistan
10 April 2021, 13:33
Prime Minister of Kazakhstan Askar Mamin and Prime Minister of Uzbekistan Abdulla Aripov launched International Center for Trade and Economic Cooperation "Central Asia"
09 April 2021, 18:29
Askar Mamin visited Baikonyr and met with Head of Roscosmos Dmitry Rogozin
09 April 2021, 16:51
Government session to be held April 12 in Ukimet Uyi
09 April 2021, 08:43
Askar Mamin discusses development of satellite internet in Kazakhstan with leadership of OneWeb
09 April 2021, 03:44
Industry, construction, employment: Results of Zhambul region’s development for 2020
08 April 2021, 19:11
Increasing state order for teacher training, new format for taking Unified National Test, licensing of universities — Askhat Aimagambetov on activities of Ministry of Education and Science
08 April 2021, 15:47
Nurlan Sauranbayev appointed chair of NC Kazakhstan Temir Zholy
08 April 2021, 14:08
Development of trade and economic cooperation of EAEU member states discussed at the meeting of EEC Council
07 April 2021, 16:19
State Commission considers additional measures to support SMEs
07 April 2021, 08:46
Wizz Air low-cost airline to open flights to Turkistan and Almaty
06 April 2021, 12:21
Until 2025, all roads of the republic to be provided with roadside service — Ministry of Industry and Infrastructure Development
06 April 2021, 11:20
Over 600 vaccination rooms, 800 vaccine freezers and 3 thousand thermal containers prepared in Kazakhstan — Ministry of Healthcare
06 April 2021, 10:08
In 2021, large projects for reconstruction and construction of 6 thousand km of highways to be implemented in Kazakhstan
06 April 2021, 09:53
In September 2021, immunization of 10 million people eligible for vaccination to be completed in Kazakhstan
05 April 2021, 18:49
Government session to be held April 6 in Ukimet Uyi
05 April 2021, 12:00
Prime Minister of Kazakhstan Askar Mamin and President of Tatarstan Rustam Minnikhanov launched construction of tire plant in Saran
02 April 2021, 15:14
Prime Ministers of Kazakhstan and Kyrgyzstan opened Korday - Ak Zhol modernized checkpoint
01 April 2021, 11:57
Government considers issues of e-commerce and new strategy of EDB
30 March 2021, 18:37
Askar Mamin discusses implementation of joint projects in Kazakhstan with EBRD President Odile Renaud-Basso
30 March 2021, 18:20
Adilbek Sarsembayev appointed vice minister of industry and infrastructure development
30 March 2021, 18:17
Talgat Zhanzhumenov relieved as vice minister of industry and infrastructure development
30 March 2021, 13:42
Comprehensive plan for socio-economic development of North Kazakhstan until 2025 to increase growth rates of region's economy and ensure improvement in quality of life of the population
30 March 2021, 11:31
List of products purchased within the framework of forward purchase expanded to 9 crops — Ministry of Agriculture
30 March 2021, 10:50
2 trillion tenge to be invested in development of North Kazakhstan region over 5 years
30 March 2021, 09:37
Government considers progress of preparations for spring field work
29 March 2021, 14:07
Government session to be held March 30 in Ukimet Uyi
29 March 2021, 11:35
Prime Minister Askar Mamin introduces new head of SWF Samruk-Kazyna JSC
26 March 2021, 20:03
Pilot project for transferring certain types of criminal cases expertise to competitive environment launched in Kazakhstan — Ministry of Justice
26 March 2021, 17:09
Askar Mamin launches production of KIA cars in Kostanay
25 March 2021, 19:34
Olzhas Zhumagulov appointed deputy head of the Office of the Prime Minister of Kazakhstan
25 March 2021, 18:02
Government considers implementation of Nation’s Plan "100 Concrete Steps’’
22 March 2021, 19:10
Prime Minister of Kazakhstan Askar Mamin meets with Prime Minister of the Russian Federation Mikhail Mishustin
20 March 2021, 13:06
Kazakhstan is competing for Big Pharma investors
20 March 2021, 12:40
Askar Mamin congratulates Kazakhstanis on Nauryz
19 March 2021, 15:02
Investment rankings of regions to be introduced in Kazakhstan
19 March 2021, 09:46
Askar Mamin: Our task is to promptly resolve topical issues of entrepreneurship development
19 March 2021, 09:05
XVI meeting of Intergovernmental Kazakh-Tajik Commission on Economic Cooperation took place in Dushanbe
17 March 2021, 18:30
National Development Plan of Kazakhstan: Social Wellbeing, Strong Economy and Affordable Health Care
16 March 2021, 17:37
Implementation of SDG principles will significantly improve quality of life of the population — Alikhan Smailov
© 2019 - 2020 Press service of the Prime Minister of the Republic of Kazakhstan.
Developed by SoftDeCo.