A New Level of Agricultural Development: Transition to a Progressive Agroeconomy Launched on the President’s Instructions

Kazakhstan is entering a new stage in the development of its agro-industrial complex. In accordance with the instruction of the Head of State, voiced in the Address of 8 September 2025, the Government, represented by the Ministry of Agriculture, is introducing a model of a progressive agroeconomy. The main emphases are digitalization, artificial intelligence, and deep processing of products.

The implementation of these goals requires clear planning; therefore, a Comprehensive Plan for the Development of the Agroeconomy for 2026–2028 is currently being developed. The document is aimed at creating full-fledged value-added chains—from agricultural production itself to deep processing, storage, logistics, and access to export markets. Among the key priorities are the development of the processing industry, the formation of agro-industrial clusters and agrohubs, and the strengthening of links between production and sales markets.

Such deep modernization implies a systemic renewal of the entire agricultural sector in order to make it more resilient, productive, and competitive. Closely linked to this direction, the Government has approved the Comprehensive Plan for the Development of Livestock Breeding for 2026–2030. It is aimed not only at increasing livestock numbers, but also at improving productivity and enhancing the quality of processing, which will significantly expand the sector’s export potential.

An important modernization tool will be the implementation of the President’s instruction to renew the agricultural machinery fleet at a level of 8–10% annually. This will allow farms to be technologically re-equipped and reduce costs through the use of modern machinery.

For the practical implementation of these plans, a program of long-term concessional lending at an annual rate of 6% is being launched for the purchase of breeding livestock of all animal species. In addition, a concessional lending program at 5% per annum will be introduced to replenish working capital of farms without restrictions on types of activity. Special attention is paid to land issues: in order to effectively utilize the potential of available pastures, a unified credit product at 6% will be launched for the development of transhumant livestock breeding. This instrument will help finance the creation of infrastructure—from land watering to the purchase of mobile housing units and other necessary expenses.

To make financial resources more accessible for rural residents, it is planned to actively involve regional social-entrepreneurial corporations. At the same time, all lending programs will be supported by a reliable guarantee system through the Damu institution, similar to the mechanism that already works successfully in crop production. Farmers will be able to receive a state guarantee covering up to 85% of the loan amount in the absence of sufficient collateral. This decision opens access to resources for farms whose property in rural areas was previously not accepted by banks as liquid collateral.

Alongside financial support, scientific and practical tasks are also being addressed. For example, the issue of opening a specialized laboratory for embryonic reproduction of cattle is currently under consideration.

The comprehensive approach also covers related industries: conditions are being created for the operation of service and procurement centers where farmers will be able to deliver wool and hides. For these purposes, funds are allocated for working capital at an annual rate of 5%. At the same time, issues of warehouse and transport logistics are being resolved, which will ensure uninterrupted supply of raw materials to processing plants.

Along with technical equipment, measures are envisaged to attract new personnel to the sector and create decent social conditions for those working in livestock breeding.

It is expected that the result of this work will be an increase in the cattle population to 12 million head, small ruminants to 28 million head, and a doubling of meat exports. Within the framework of expanding export potential, a key vector will be product certification under the Halal system. This is necessary to strengthen Kazakhstan’s positions in premium markets of the Persian Gulf countries and other Muslim states.

It is important to note that all new initiatives are based on results already achieved—in recent years, the agricultural sector has demonstrated stable growth. The gross agricultural output has been increasing for the second year in a row: in 2025 it grew by 5.9% and reached 9.8 trillion tenge, while a year earlier growth amounted to 13.6% with a volume of 8.3 trillion tenge. This rise was driven by an increase in crop production by 7.8% and livestock production by 3.3%.

Such dynamic growth became possible largely due to an unprecedented volume of concessional financing. In 2025, up to 1 trillion tenge was allocated to support the agro-industrial complex, which is ten times higher than the level of 2021. This made it possible to cover about 8.5 million hectares of sown areas with state support. In the current year, in accordance with the instruction of the Head of State given at the expanded meeting of the Government on 28 January 2025, the volume of concessional financing is planned to be increased to 1.5 trillion tenge. At the same time, to ensure maximum effectiveness, a system of end-to-end control and digitalization of subsidies is being introduced, which will eliminate false reporting and guarantee that funds reach real agricultural producers.

Systematic work to increase financing began back in 2024, when the Ministry revised its approaches to state support. Machinery leasing, financing of seasonal field work, and support for processing and livestock enterprises became available at an annual rate of 5%. This practice will be continued and is already yielding results: over the past two years, the country has harvested a record grain crop of more than 50 million tons.

High results have also been recorded in other areas: more than 1 million tons of legumes were harvested, and the yield of oilseeds increased to 4.8 million tons compared to 3.3 million tons a year earlier. This was achieved thanks to timely state support, including the launch of an early financing program for the sowing campaign as early as October 2024, as well as the widespread introduction of modern agricultural technologies. Today, the harvested crop not only fully meets domestic needs, but also creates conditions for active export expansion.

Kazakhstan has a strong raw material base and a significant surplus of grain production, which creates all the prerequisites for moving from raw material exports to processing. The country has vast land resources, including 183 million hectares of pastures and 27.2 million hectares of arable land. At present, Kazakhstan supplies agricultural products to more than 70 countries and holds leading positions: second place in the world in flour exports, eighth in sunflower oil, and tenth in grain crops.

Particular attention should be paid to successes in foreign markets: in the 2024–2025 marketing year, grain exports reached 13.4 million tons. This is the best result in the past 20 years. The geography of supplies is constantly expanding: shipments to Iran, Azerbaijan, and Kyrgyzstan have been resumed, and markets in Egypt, Morocco, and Vietnam have been opened. Work is currently underway to enter the markets of Belgium, Poland, Norway, the United Kingdom, and Portugal, while cooperation with the Persian Gulf countries is also being strengthened.

A logical continuation of the export strategy is the deepening of raw material processing within the country. Currently, out of 5 million tons of processed grain, about 510 thousand tons undergo deep processing. Since 2025, large-scale investment projects have been launched in this area. Three enterprises producing high-tech products—from starch to bioethanol—are already operating. By 2028, it is planned to launch five more large plants with a total investment volume of $2.6 billion. This will make it possible to create thousands of jobs and expand the product range through the production of amino acids and vitamins.

Thus, the transition to a progressive agroeconomy is forming a fundamentally new model for the development of the agro-industrial complex in Kazakhstan, where technologies and deep processing are at the forefront. The implementation of these comprehensive measures will ensure sustainable production growth and increase value added. This will strengthen the country’s position in the global market and create a solid foundation for the long-term competitiveness of Kazakhstan’s agriculture, directly improving the living standards of the rural population.

#Agriculture #Agroindustrial complex #President's instruction

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