Yerbol Karashukeyev holds meeting with West Kazakhstan region agricultural producers

Minister of Agriculture Yerbol Karashukeyev visited the West Kazakhstan region on a working visit. As part of the visit, the head of the Ministry of Agriculture got acquainted with the work of farms, inspected the progress of harvesting, met with local agricultural producers.

West Kazakhstan region shows positive results of agro-industrial complex. So, in cattle breeding sphere 1 dairy - cattle farm for 600 heads of cattle with total capacity 3,3 thousand tons of milk a year ("Amanat" farm) and 1 milk processing complex with capacity 47,0 thousand tons a year ("Uralsk Trade Company" LLP) are put into operation for the last years. It was also put into operation 5 feeding grounds for 15 500 cows ("Myasnaya Industriya" LLP, "Taskala-Et BKO" LLP, "Baiterek" farm, "Buranbayev" farm and "SyrymKZ" farm), resumed work of the 8640-head fattening complex "Yanaikino" LLP (Crown-Batys" LLP) that was idle for more than 10 years. Work on commissioning of dairy cattle farm for 600 heads with rated capacity of 3,8 thousand tons of milk a year ("Ringo-Milk" LLP) is conducted. It is also planned to build 2 dairy farms with total capacity of 18,0 thousand tons.

44 investment projects in agro-industrial complex for 110,6 billion tenge are also planned to be realized in the region till 2026, as well as installation of engineering and communication infrastructure for their realization.

For reference: 44 investment projects of agro-industrial complex, including: livestock - 24 projects to the sum of 31,3 billion tenge; plant growing - 18 projects to the sum of 76,6 billion tenge, including processes of plant products - 2 projects on the sum of 2,8 billion tenge.

"The implementation of investment projects will compensate for the shortage of agricultural products in the off-season and stabilize prices in the markets of the region, as well as will create over 1300 jobs," Karashukeyev said.

Now the harvesting campaign has begun in the regions of the country. Within the framework of the program "Ken Dala", as well as out of our own funds ACC financed 3,843 AHTP for 112.1 billion tenge, of which in the West Kazakhstan region financed 105 AHTP amounting to 2.1 billion tenge.

As of September, 21 this year we harvested 14.6 million hectares of grain, threshed 18.3 million tons of grain at an average yield of 12.6 c/ha, including in the West Kazakhstan region harvested 194.3 thousand hectares, threshed 313.4 tons of grain at an average yield of 16.1 c/ha. In addition, oilseeds are planned to harvest 3.5 million hectares, including in West Kazakhstan region 185.7 thousand hectares, potatoes 198.9 thousand hectares, including 4.1 thousand hectares of the region, vegetables and melons 270.0 thousand hectares, including 5.3 thousand hectares of West Kazakhstan region respectively.

In the region in harvesting work involved in about 10,200 tractor units, more than 840 pieces of grain harvesters. To carry out the fall field work the agrarians of the country allocated about 423.4 tons of diesel fuel, including in the West Kazakhstan region about 14.2 tons. The price of diesel fuel is 15%-20% lower than the market price.

Yerbol Karashukeyev said that this year allocated additional funds for agriculture. The total amount of subsidies is more than 451 billion tenge, funding under the program "Ken Dala" is doubled to 140 billion tenge, also the amount allocated for forward purchase has doubled compared to last year and amounted to 80 billion tenge. In addition, given the current market rate of interest on loans and leases of 20%, the rate is only 6% for farmers, the rest is compensated by the state.

The work on preparation of material and technical base of grain storages to receive grain of the new crop is carried out in a planned manner. The total volume of available storage capacity is 29.1 million tons, which is enough to store grain, taking into account the projected harvest.

This season JSC "Prodkorporatsiya" plans to purchase up to 1.1 million tons of grain crops (wheat up to 970.8 tons, barley up to 110.1 thousand tons, oats up to 1.2 thousand tons, buckwheat up to 1.6 tons, sunflower up to 11.9 thousand tons, flax seed up to 38.9 tons, rape up to 2.7 thousand tons).

In general, harvesting campaign is going on as planned and is under special control of the Ministry of Agriculture.

Currently, the total amount of subsidies, taking into account additional allocation of budgetary funds in clarifying the national budget is more than 451 billion tenge, which is 20% more than the level of 2021, including:

  • 127.8 billion tenge to subsidize livestock, including West Kazakhstan region by 8.7 billion tenge;
  • 115.2 billion tenge on investment subsidies, including 4.6 billion tenge to West Kazakhstan region;
  • 107.6 billion tenge for subsidies for crop production, with 782.2 million tenge will be sent to the region
  • 78.1 billion tenge for subsidizing interest rates on loans and leasing, including 3.5 billion tenge to West Kazakhstan region.

In addition, allocated 20.0 billion tenge for forward purchase to form a grain forage fund in the amount of 279 thousand tons, which in case of recurrence of drought in 2021 will ensure the safety of livestock and poultry.

As for crop production, the directions and norms remain. It is proposed to refuse subsidizing of original seeds in order to eliminate double subsidy. On cattle breeding it is offered to systematize directions of subsidizing, having excluded subsidizing of 5 kinds (cost of producers, their seeds, embryos, rent of producers, and also services on artificial insemination) and instead of them to leave only subsidizing of selection-breeding work with considerable increase of norms of subsidizing as compensation for the canceled kinds of subsidizing.

During the meeting with farmers of the region the Minister of Agriculture told about the work of government on development of agroindustrial complex and answered their questions.

In particular, agrarians were anxious about what will be the new rules of subsidizing of agrarian and industrial complex which will come into force at the beginning of the next year. The Head of the Ministry of Agriculture explained that all areas of subsidizing by financial instruments will remain the investment subsidizing, subsidizing of interest rate on credits, subsidizing of insurance premiums and loan guarantee insurance. However, some changes will be made.

"On cattle breeding it is proposed to exclude 5 types of subsidies (the cost of producers, their seeds, embryos, rental of producers, as well as services for artificial insemination) and instead leave only funding for breeding and breeding work with a significant increase in the standards of subsidies as compensation for the abolished types of subsidies," Yerbol Karashukeyev said.

He also noted that it is planned to introduce reciprocal obligations for recipients of subsidies. In particular, to annually increase the volume of sales of their own products by not less than 3%, to increase productivity and ensure the supply of products to the Stabilization Funds on a forward contract, as well as to invest in production at least once every 5 years.

There was also a question about the export of livestock. The Minister explained that the Interdepartmental Committee decided to set a quota for export of 60 thousand cattle (9% of the total flock) and export of 120 thousand lambs (10% of the flock) on August 31. Full ban will remain on the export of breeding stock.

At the meeting the Minister noted the great potential of the region for the development of dairy farms. The West-Kazakhstan region has a good forage base with the possibility of its expansion, which means that the region can achieve full self-sufficiency in milk. Head of the Ministry of Agriculture is ready to support the project of concessional lending for construction of dairy farms in the region through agricultural cooperatives, by analogy with the experience of the North-Kazakhstan region. In addition, the Ministry will assist local farmers in introduction of sprinkler irrigation system. This is needed to stockpile succulent forage for dairy farms.

Another innovation is the introduction of counter obligations for subsidy recipients. They will look as follows:

˗ ensuring an annual increase of at least 3% in sales of their own production (excluding force majeure);

˗ annual increase in labor productivity;

˗ ensuring the supply of products to stabilization funds under a forward contract (excluding force majeure circumstances);

˗ ensuring investment in fixed assets at least once every 5 years.

The adoption of these systemic measures will increase the sustainability of the agricultural development of the Republic, including the West Kazakhstan region.

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