Address-2024: Implementation of the President’s Instructions in the Agricultural Sector

In his Address to the Nation “Fair Kazakhstan: Law and Order, Economic Growth, Public Optimism”, President Kassym-Jomart Tokayev paid special attention to the development of the agro-industrial complex. The agricultural sector is considered a key part of the economy, ensuring food security, employment, and strengthening the country’s export potential. Fulfilling the instructions of the Head of State set out in the 2024 Address, the Government is consistently pursuing policies of technological modernization, deepening of processing, and expansion of international cooperation in agriculture.

From Sustainable Growth to Modernization: How the Agro-Industrial Complex is Developing

The agro-industrial complex demonstrates stable development, confirming the effectiveness of state support measures and the systematic work of the Government in implementing the President’s instructions. For January–July 2025, the gross agricultural output grew by 3.7%, reaching 2.4 trillion KZT. Growth was achieved in both livestock and crop production.

The processing sector shows accelerated dynamics: food production increased by 9.2% to 2.13 trillion KZT, beverage production by 6.8% (692.4 billion KZT). Production of vegetable oil rose by 24%, butter by 10.4%, sausages by 9%, and flour by 6.6%.

Investments in fixed capital of agriculture reached 442.7 billion KZT (+26.5%), and in food production 104.2 billion (+48%). These resources are directed toward modernization and the introduction of modern technologies.

“In his Address to the People of Kazakhstan, the Head of State emphasized the need to move from direct subsidies to affordable lending involving commercial banks. For this purpose, new preferential lending programs with an interest rate of no more than 5% per annum were introduced in 2024. This became possible through a combination of budgetary and commercial resources,” Minister of Agriculture Aidarbek Saparov noted.

State support retains its systemic character. The volume of preferential lending for spring fieldwork and harvesting in 2025 was increased to 700 billion KZT (in 2014 – 70 billion), and in the coming years will be raised to 1 trillion KZT. Financing of sowing began as early as November 2024, allowing farmers to prepare in advance.

A preferential leasing program for agricultural machinery at 5% per annum was launched, providing for the purchase of at least 6,000 units of equipment worth 250 billion KZT. Additionally, processors received preferential financing for working capital in the amount of 44 billion KZT.

Alongside basic tools, specialized support programs are in place. The Auyil Amanaty program provides cooperatives with loans at 2.5% for up to 5 years, including for product processing. Ken Dala is aimed at producers and processors, offering financing at 5%. Agrobusiness combines opportunities for modernization, construction, and replenishment of working capital through budgetary resources, the National Fund, and attracted capital. This package of measures allows farmers to choose optimal conditions depending on the specifics of their farms.

Livestock: A Strategic Sector and New Development Mechanisms

Livestock retains strategic importance for the country’s food security, accounting for about 40% of the gross agricultural output. For January–July 2025, production increased by 3.4%, reaching almost 2 trillion KZT. Meat production increased by 2% (608.8 thousand tons), milk – by 6.5% (2.25 million tons).

Livestock numbers are steadily growing: cattle – 8.7 million (+0.3%), horses – 4.6 million (+6.7%), camels – 300 thousand (+3.9%), poultry – 48 million (+6.6%).

Kazakhstan’s export positions are strengthening: in the first five months of 2025, beef exports grew 2.5 times (12.3 thousand tons), lamb exports 2.6 times (9.2 thousand tons). For the first time, pork exports were recorded – 797 tons. These results confirm the competitiveness of domestic products and their demand in international markets.

Special emphasis is placed on the dairy sector. From 2023–2025, 48 dairy farms were built with a capacity of over 300 thousand tons of milk per year. Average annual milk yield on new farms reaches 8.2 thousand liters, and on advanced farms up to 11 thousand liters, corresponding to the level of leading European countries. In 2024, 688 thousand tons of milk were produced (+32% compared to 2022), and in 2025 another 32 complexes with a capacity of 152 thousand tons are planned to be launched.

“In beef cattle breeding, the volume of lending at a net 5% amounted to 50 billion KZT, while 44 billion KZT was allocated to processing enterprises in 2025. To address the problem of insufficient collateral for loans, a guarantee program covering up to 85% of the loan amount is operating,” Aidarbek Saparov reported.

Since August 2025, a preferential lending program for feedlots at 5% per annum has been introduced with a total volume of 50 billion KZT, which will allow capacity utilization of more than 60%, with half of the products required to be sold on the domestic market.

Meat clusters are developing according to the Australian model. In 2024, four projects worth 9 billion KZT were financed, and in 2025 ten priority projects worth 21.7 billion were identified. In Turkestan region, a granulated feed plant and a feedlot for 15 thousand cattle have already been launched. These projects lay the foundation for creating full value chains from feed to processing.

Dependence on poultry meat imports has decreased from 42% to 20% over the past five years. In 2024, six poultry farms with a total capacity of 15.9 thousand tons of meat per year were commissioned in Zhambyl, Kyzylorda, Pavlodar, Turkestan, North Kazakhstan, and Ulytau regions. The key task is full self-sufficiency of the country in this sector.

Crop Production: Diversification of Crops and New Yield Standards

Crop production in Kazakhstan is undergoing systemic transformation aimed at increasing efficiency and sustainability. The key task of the sector is diversification of sown areas and the introduction of water-saving technologies. This year, the wheat area has been reduced by 884.6 thousand hectares to 12.3 million hectares, while oilseed crops have been expanded by 1 million hectares to 4 million hectares. At the same time, the structure of sugar beet crops is being optimized.

“The Head of State instructed to introduce water-saving technologies annually on an area of up to 150 thousand hectares. By the end of 2024, the plan was overfulfilled and amounted to 158 thousand hectares, and this year water-saving technologies have already been introduced on an area of 109.8 thousand hectares. In total, the area of irrigated land with water-saving technologies has increased to 580 thousand hectares,” Aidarbek Saparov added.

In 2024, farmers harvested a record crop – 25.2 million tons of grain, including 18.6 million tons of wheat, with an average yield of 14.2 c/ha. A significant role in this was played by the doubling of the volume of fertilizers applied (1.3 million tons) compared to 2023. This year, it is planned to bring the volume to 1.9 million tons.

Considerable attention is paid to seed production and updating the material base. In 2025, the share of elite seeds is planned to be increased to 10.5% of the total sown area, and the level of renewal of agricultural machinery – to 6.5%.

Subsidy measures remain a significant support for farmers. The state covers up to 70% of the cost of elite seeds, up to 60% of the cost of domestically produced mineral fertilizers, and compensates up to 50% of the cost of pesticides and 40% of biological products. In 2025, 25.8 billion KZT were allocated for subsidies for priority crops, which provides farmers with additional resources to increase yields.

Systemic measures are enshrined in the Roadmap for 2024–2028, which provides for a doubling of gross agricultural output. The priority is to reduce monoculture of wheat and water-intensive crops such as rice and cotton, while simultaneously expanding the areas of oilseeds, vegetable-melon crops, and forage crops. This approach will increase production profitability and strengthen the fodder base of livestock farming.

Within the framework of the Comprehensive Plan for the Development of Breeding and Seed Production, at least 109 new varieties and hybrids of agricultural crops are planned to be developed. The share of areas sown with domestic breeding seeds should grow from 52.3% in 2024 to 78.2% in 2028. For this purpose, a State Register of recommended varieties is being formed and a national genetic seed bank is being created, which will not only consolidate the results of domestic breeding but also increase the export potential of Kazakhstan’s crop production.

Processing of Agricultural Products – From Loans to Comprehensive Modernization Plans

Deep processing of agricultural products remains one of the key priorities of agricultural policy. In fulfillment of the President’s instructions, the share of processed products in the agro-industrial complex should be brought to 70%, and for this, a whole range of state support measures is being implemented.

In 2024, agricultural exports amounted to $5.1 billion, of which 52% were processed products. This is $2.6 billion compared to 43% a year earlier, confirming steady dynamics and the growing competitiveness of the domestic processing industry.

Around two thousand processing enterprises operate in Kazakhstan, among which the leading sectors are dairy (18.8%), meat (18.5%), grain (17.4%), and oil and fat (12.5%). In 2024, 51 investment projects worth 41.5 billion KZT were implemented.

To support business, in 2025 preferential lending for processing enterprises to replenish working capital at 5% per annum continues. 44 billion KZT were allocated for these purposes. More than 60 applications worth over 26 billion KZT were approved and financed.

Investment subsidies are in effect – reimbursement of 15–50% of the costs of construction or modernization of processing enterprises. For the sugar industry, the compensation rate has been increased to 40%, for egg processing subsidies of up to 40% have been introduced, and for the dairy industry reimbursement of up to 25% of the cost of equipment for powdered milk and whey is provided.

Special attention is paid to ensuring raw material supplies for enterprises. For this purpose, a network of dairy farms, sheep farms, and procurement points is being created to guarantee stable supplies to the processing industry. Support for farmers is also implemented through subsidies for volumes of fine and semi-fine wool delivered for processing, which simultaneously reduces producers’ costs and loads the capacity of processing enterprises.

To protect the domestic market, restrictions on the export of raw materials are applied: duties on the export of oilseeds, quotas on the export of live cattle, as well as restrictions on the export of hides and wool have been introduced. These measures allow retaining the raw material base within the country and directing it into processing, generating added value in Kazakhstan.

Science and Innovation: The Foundation of Agricultural Modernization

One of the most important areas of implementing the President’s instructions is the development of agricultural science and the introduction of innovations. For this purpose, on the basis of the National Agrarian Scientific and Educational Center (NASEC), a vertically integrated agrotechnological hub is being formed, uniting education, science, and business. Today it includes 33 organizations – universities, research institutes, and experimental farms.

Financial support for the scientific sphere is systemic: the volume of basic funding for NASEC in 2025 has been increased to 2.6 billion KZT, and program-targeted funding of 9.6 billion KZT annually is allocated for 2024–2026. This makes it possible to implement long-term scientific and technical programs covering all key areas of the agro-industrial complex – from livestock and crop production to processing, veterinary medicine, and organic farming.

Special attention is paid to creating modern research laboratories and international cooperation. Since 2024, the Kazakhstan-China Laboratory of Biological Safety and a laboratory for grain quality determination have been operating in Kazakhstan. In June 2025, the Organic Product Certification Center and the Food Safety Laboratory were opened, meeting international sanitary and veterinary standards. These facilities allow analysis of pesticide residues, mycotoxins, heavy metals, and antibiotics, as well as the introduction of “green” production standards.

A significant milestone was the establishment in 2024 of the Institute of Horse Breeding and Feed Production in Aktobe region. Its work is aimed at improving horse breeds and developing the domestic fodder base.

Priority scientific projects include genetic certification of agricultural products, climate-adaptive farming, and digital models of “smart farms” using sensors, drones, and AI monitoring systems. International cooperation is ongoing with research centers in China, the Netherlands, the USA, France, the UK, and other countries.

For 2027–2029, the Agri Export (genetic identification of products, organic production, climate-resilient technologies) and Agri Future (AgriTech incubator, “100 Young Scientists in Agriculture” program, VR/AR training for farmers, new-generation digital farms) programs have been prepared. These initiatives create a foundation for integrating Kazakhstan’s agro-industrial complex into global scientific networks and form conditions for a technological breakthrough in the sector.

Thus, agricultural science is becoming a key element of modernization, ensuring the competitiveness, innovative character, and sustainable development of agriculture in the long term.

“The announced results are a direct consequence of the work carried out to provide the agricultural sector with the necessary resources. The Ministry of Agriculture will continue to improve support measures, ensure transparency and effectiveness of policy, and most importantly, expand opportunities for rural residents and farmers,” Aidarbek Saparov emphasized.

The set of measures implemented by the Government in the agro-industrial complex confirms a systemic approach to implementing the President’s Address. The sector demonstrates steady growth in key areas – from livestock and crop production to deep processing and science. Investment attractiveness has been ensured, and the foundation for import substitution and export growth has been created.

#Agroindustrial complex #Economy #President's instruction

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