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Bakytzhan Sagintayev instructs to analyze multiplier effect of development of agricultural cooperatives

29 May 2018, 11:04

At the meeting of the Government chaired by the Prime Minister Bakytzhan Sagintayev on May 29, First Vice Minister of Agriculture Arman Yevniev reported on the further development of agricultural cooperatives.

At the beginning of his speech, Arman Yevniev noted that the adoption of the law "On Agricultural Cooperatives" in 2015 eliminated the main barriers to the development of cooperation: the members of cooperatives were given the right to distribute profits among themselves, conditions for the development of the institute of audit unions for an annual audit of cooperative activities were created, instead of three laws, a single special tax regime is extended to agricultural cooperatives, and the activities of agricultural cooperatives are clearly identified.

вице-министр сельского хозяйства Арман Евниев

According to statistics, as of April 1, 2849 cooperatives with the association of more than 62 thousand people were registered.

At the same time, there is a number of open issues. In this regard, as part of the work to update the current State Program for the Development of the Agro-Industrial Complex, six key areas have been identified, according to which it is necessary to replace the existing target indicators. This are labor productivity, production competitiveness, technical equipment, knowledge, profitability from product sales, balance of extra costs.

The purpose of the agro cooperatives development program is to determine the constant increase in labor productivity and competitiveness of agricultural cooperation participants.

"It is proposed to introduce three measurable key indicators with an annual growth of at least 10%: growth in labor productivity of cooperative members, growth in revenues from sales of products (including exports) and provision of services, growth in investment in fixed assets of agricultural cooperatives," Yevniev said.

According to the Ministry of Agriculture, the proposed target indicators stimulate participants in cooperatives and local executive bodies to economically analyze the entire chain of production, technological and marketing processes, identify and eliminate constraints.

Arman Yevniev also reported on specific measures and tools for implementing the sectoral cooperation development program. One of the tools is equal conditions for subsidizing agricultural cooperatives for all available measures of state support.

For reference: It is proposed to preserve investment subsidies, subsidize VAT of procuring organizations, as well as commodity-specific subsidies in animal husbandry from the local budget. In the current year, 495,500,000 tenge was allocated for cheaper feeding of bull-calves for cooperatives, 478,325,000 tenge — for the support of co-operatives engaged in milk production.

Subsidizing interest rates for leasing and loans to agribusiness entities will be restored. It is proposed to exclude the setting of indicative plans for akimats to create cooperatives, as well as indicators on the activities of cooperatives. In addition, the provision of microcredits for farmers, agricultural cooperatives, and individual entrepreneurs will continue.

Two mechanisms of cooperation will be a key instrument for increasing production efficiency: horizontal cooperation and vertical (anchor) cooperation. Anchor cooperation provides for the partnership of small and medium peasant farms and cooperatives created by processing enterprises and backbone enterprises.

Cooperatives can create associations or even larger cooperatives. Private part-time farms can also participate in cooperation in the forms of individual entrepreneurship and farming.

The first vice minister of agriculture noted that the success of such models is confirmed by examples of world practice on dairy cooperatives. Small and medium farmers in New Zealand, Holland, Sweden, Denmark, the United States and South Korea join together in large cooperatives, increase their efficiency and conquer markets.

To maintain the activities of cooperatives, a special Internet portal will be created, where each cooperative must register. The site will provide an opportunity to automate the collection of information and monitoring of cooperative data, evaluate results, keep records of workplaces and labor productivity of each participant, train digital literacy, rating between cooperatives and participants, and others.

The information system will become a tool for participants in agricultural production cooperatives (SPK) to motivate, analyze, train, manage and evaluate the result of the activity.

In addition, it is planned to implement a number of activities to support the development of cooperation, which include continuing education and information support for cooperatives.

Traditional education needs to be transformed into consulting trainings with an emphasis on increasing labor productivity and competitiveness.

"One of the tools for implementing the agrocooperatives development program will be the application of the project approach to the development of agricultural cooperation. In fact, the cooperation program will be one of the subprograms of the Agro-Industrial Program that is currently being updated," Yevniev noted.

Ministry of Agriculture, akimats and Atameken NCE will participate in the program of cooperation development. The Ministry is responsible for strategy, state support, legislation. Local executive bodies should ensure, first of all, the access of cooperatives to the markets, the formation of sectoral regional cooperation. Atameken NCE must provide training, consulting, marketing.

"Thus, we are completing the initial stage of agricultural cooperation and moving to a qualitatively new stage of its development as one of the key tools for increasing labor productivity in agriculture," Arman Yevniev summarized.

Министр национальной экономики Тимур Сулейменов

Minister of National Economy Timur Suleimenov, in his turn, noted that the association in cooperatives allows centralizing the processes of processing and selling agricultural products and increasing their competitiveness. Small farms, trading firms and agrarians, uniting in cooperation, make mutually beneficial actions, significantly reduce costs, increase the material and technical base, in general, there is an increase in GDP.

Also, according to Suleimenov, the correctness of the chosen direction is indicated by the successful experience of such world giants in the sphere of agricultural cooperatives, as Frontera, Arla Foods, uniting today thousands of farmers. New methods proposed by the Ministry of Agriculture will allow to develop the agricultural cooperation in a qualitative way and achieve significant results in the agro-industrial complex. At the same time, the minister noted that a convenient tax regime is in place for agricultural cooperatives.

Председатель правления АО «НУХ «КазАгро» Нурлыбек Малелов

Nurlybek Malelov, chairman of the board of JSC “KazAgro” NMH, noted that KazAgro provides financing for agricultural cooperatives and their participants.

Following the results of 2017, the KazAgro holding financed: 11 agricultural cooperatives in crop production uniting 176 agricultural producers for sowing works for a total of 9.9 billion tenge (this allowed sowing on an area of ​​574 thousand hectares), and 304 agricultural cooperatives in livestock breeding uniting 7390 farmers, for the production and procurement of raw materials, processing of agricultural products for a total of 20.2 billion tenge. Participants of agricultural cooperatives purchased more than 156 thousand heads of meat and dairy cattle.

Аким Павлодарской области Б. Бакауов

Akim of Aktobe region B. Saparbayev, Almaty region — A.Batalov, Pavlodar region — A.Bakauov, deputy akim of South-Kazakhstan region, A. Osserbayev, reported on the pace of development of agricultural cooperation in the regions.

After hearing of the reports, Prime Minister Bakytzhan Sagintayev noted the positive dynamics of growth in labor productivity and output compared to the same period last year. At the same time, a number of specific instructions were given.

The Ministry of Agriculture was instructed to conduct an analysis of the multiplier effect of the creation and development of agricultural cooperatives. In particular, consider the impact of the association on the volumes of meat and dairy production, the number of jobs created, demand and pricing.

In addition, the Ministry of Agriculture, in conjunction with relevant government agencies, as part of the adjustment of the State Program of the AIC, must work out measures to develop agro cooperatives in detail. The measures taken should ensure an increase in the production of agricultural products, higher employment in the countryside and, as a result, a further increase in the export of agricultural products.

General coordination is entrusted to the Deputy Prime Minister, Minister of Agriculture U. Shukeyev.



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