Emblem
Official Source of the
Prime Minister of the
Republic of Kazakhstan
Menu
Emblem
Close button

Total supply of socially significant food products in Kazakhstan is 720 thousand tons

Monday, 18 May 2020, 21:03:27

In his speech at the concluding meeting of the State Commission on the State of Emergency, the President of the Republic of Kazakhstan Kassym-Jomart Tokayev noted that the current situation clearly confirmed the well-known truth: food security is a key element of the security of the state as a whole. Today, the country's farmers are receiving maximum support. During the state of emergency, the necessary list of socially significant goods was approved, according to which state price regulation is carried out. It is necessary to ensure the availability of sufficient reserves, to work out mechanisms for bringing them to the shelves, to strictly control prices and to exclude speculation.

During the state of emergency, the country's enterprises worked stably, and the manufactured products were freely delivered to retail outlets, as evidenced by store shelves where products are available in sufficient quantity and assortment.

The outbreak of the crisis associated with the coronavirus pandemic, the introduction of emergency and quarantine in many countries led to the closure of borders and the disruption of established trade relations, which negatively affects the economy of almost all countries. This situation is especially negatively reflected in countries dependent on imports of basic food products.

According to the Ministry of Agriculture, Kazakhstan almost completely provides itself with basic foodstuffs from its own production. So, the department keeps records of production, import, export and consumption of 29 items of food products that are consumed in everyday life (based on statistics from the Committee of Statistics of the Ministry of National Economy and the Committee of State Revenues of the Ministry of Finance).

According to these data, in 2019 for 23 of the 29 types of foodstuffs, the security due to domestic production is 80 percent or more, and for some more than 100%.

The exception is 6 products: apples (62.9%), fish (60.8%), sausages (62.0%), cheeses and cottage cheese (57.0%), sugar (46.6%) and poultry (58.3%), for which there is still import dependence.

In particular, import substitution will be carried out on poultry, cheeses and cottage cheese, sugar, apples and sausages. Long-term industry programs have been developed.

In addition, the Roadmap for the Development of the Food and Processing Industry for 2019-2021 is being implemented, which is aimed at developing raw material base, including the processing of milk, meat, sugar beets, fruits and vegetables, and poultry farming.

The Roadmap for the development of apple production is also being implemented on the example of Amal Bio and Dala Fruit.

As part of import substitution measures, in 2020 25 dairy farms with a capacity of 105 thousand tons, 3 meat processing plants, 8 poultry farms with a capacity of 73 thousand tons will be built, gardens are planned to be planted on 2,000 hectares, construction of 2 sugar factories has begun with a total production capacity of 200 thousand tons of sugar per year in the Zhambyl and Pavlodar regions, it is planned to modernize three existing sugar factories.

At the same time, irrigated lands will be expanded, including: for fodder land for 45 thousand ha, for vegetables for 15 thousand ha, and also for diversification, sown areas for highly profitable crops such as oilseeds, legumes, industrial crops will be increased. This will allow by 2024 to ensure the saturation of the domestic market with these foodstuffs in full, for sugar – by 40%.

 

Kazakhstan maintains quite confident growth in the development of livestock

Much attention is now being paid not only to increasing the volume of production, but also to increasing the level of efficiency and profitability of animal husbandry.

Meat production increased by 3.7% and amounted to 149.4 thousand tons (of which beef – 62.2 thousand tons, mutton – 15.5 thousand tons, pork – 15.1 thousand tons, horse meat – 15.9 thousand tons, meat poultry – 38.2 thousand tons), cow's milk – by 4% to 334.9 thousand tons.

According to the Committee on Statistics of the Ministry of National Economy of the Republic of Kazakhstan, for the period January-March 2020, compared with the same period in 2019, the production of sausages increased by 21.1%, canned meat and meat and vegetable products – by 1.7%, processed fish 2 times, canned fish – by 62.1%, processed milk – by 3.7%, butter – by 14.5%, dairy products – by 6.4%, hard cheese – by 9.9%, and milk powder – by 30.7%.

 

Availability of stocks of finished products ranges from a week to several months

According to the operational data of the regions, as of May 4, 2020, the republic has reserves in the total volume of 857 thousand tons of various food products, including 47.1 thousand tons in stabilization funds, 284.1 thousand tons in manufacturing enterprises, in warehouses – 172.8 thousand tons, in retail chains – 351.1 thousand tons.

In addition, there are 351 million eggs and 3.8 million tons of food wheat. Reserves of socially significant food products in the republic are available in a total volume of 719.4 thousand tons, including flour – 147.7 thousand tons, potatoes – 121.5 thousand tons, rice – 98.7 thousand tons, pasta – 17.6 thousand tons and others.

Provision with available stocks of finished products for actual consumption for different types of products from a week to several months. At the same time, there are enough raw materials and materials for food production, as well as the capacities of manufacturing enterprises, all enterprises are working and producing. Also, part of the products is delivered from abroad, however, this is an insignificant part, which does not play a decisive role for the provision of the population with foodstuffs. Thus, the stocks of foodstuffs are constantly replenished and a shortage of products is not expected.

With regard to prices, in times of crisis and hype there is always a tendency to increase prices for food products. Moreover, if this growth is partially caused by objective factors, then for the most part growth occurs for unjustified reasons. In this regard, in order to prevent unjustified price increases during the state of emergency, the joint orders of the Ministry of Trade and Integration, the Ministry of Agriculture and the Ministry of National Economy approved maximum prices for 9 types of basic foodstuffs.

 

Ban on export and high demand for consumption

According to statistics of the Republic of Kazakhstan, in January 2020, agricultural exports amounted to $219.1 million, which is 66.2% less compared to the same period in 2019 ($330.9 million). However, the export of processed agricultural products in January 2020 increased by 7.6% and amounted to $94.6 million (in January 2019 – $87.9 million).

The top group of agricultural products exported in January 2020 includes: wheat and meslin – 17.9% of the total exports of agricultural products, barley – 12.5%, flour – 11.9%, cotton fiber – 9.2%, flax seeds – 8.5%, vegetable oils – 7.6%, sunflower seeds – 3.6%, lentils – 1.8%, fish fillet (ice cream) – 1.6%.

A ban was also introduced on certain types of food products of high social significance for the republic. To be included in the list, the following criteria were taken into account: high demand in the domestic and foreign markets (flour, wheat, sunflower oil), a high share of imports in the domestic market (sugar), insufficient availability in the domestic market due to seasonality of production (buckwheat, potatoes).

The list of goods whose export from the territory of the Republic of Kazakhstan is prohibited:

  • Sugar – insufficient volumes of domestic production, a high share of sugar imports in the domestic market.
  • Buckwheat, potatoes and onions – high demand in the domestic and foreign markets, a high share of exports of buckwheat and raw materials, insufficient volumes during the off-season.
  • Sunflower seeds and refined sunflower oil are the risk of a decrease in security due to the high demand in the domestic and foreign markets for raw materials and oilseeds.

The list of goods with respect to the export of which from the territory of the Republic of Kazakhstan quantitative restrictions (quotas) are introduced:

Flour and wheat are high demand in the domestic and foreign markets. Unrefined sunflower oil and seed potatoes previously prohibited from export from Kazakhstan are included in the list of goods with respect to which quantitative restrictions are established (export quotas).

 

Sowing crops

As of May 6, 2011, in 13 regions of the republic (Akmola, Aktobe, Almaty, Atyrau, East Kazakhstan, Zhambyl, West Kazakhstan, Karaganda, Kostanay, Kyzylorda, Pavlodar, North Kazakhstan and Turkistan regions) pre-sowing work is carried out.

To date, moisture closure has been carried out on 16.3 million hectares, or 108% of the target (planned 15 million hectares), pre-sowing tillage – on 2.9 million hectares, or 41% (7 million hectares planned).

Crops are sown in 12 regions (Aktobe, Almaty, Atyrau, East Kazakhstan, Zhambyl, West Kazakhstan, Karaganda, Kyzylorda, Mangistau, Kostanay, Pavlodar, Turkistan).

In particular, 907 thousand hectares, or 6.2% of the target, were sown with grain and leguminous crops, 382 thousand hectares (12.6%) with oilseeds, 199 thousand hectares of vegetable and melon crops and potatoes (44.5%) , sugar beets – 17.4 thousand ha (83.3%), cotton – 54 thousand ha (45.2%), perennial grasses – 170 thousand ha (54.7%).

Spring field work is carried out as usual, while the sowing rate of 2020 is higher than that of the previous year for a similar date.

 

Supporting farmers, tax exemption

Government decrees provide for the following support measures:

  • until Dec. 31, 2020, agricultural producers were exempted from the land tax on agricultural land;
  • for all taxes, the interest on unfulfilled tax liabilities was suspended until Aug. 15, 2020, and the deadline for submitting tax reports was postponed to the 3rd quarter of 2020;
  • the list of imported goods for which VAT is paid by the offset method includes cattle and pedigree chickens;
  • until Oct. 1, 2020, the VAT rate on socially significant food products is set at 8%.

In addition, all subjects of small, medium, micro-business are provided:

  • deferral of tax and social payments until June 1, 2020;
  • all measures for the enforcement of tax and customs debt are suspended until June 1, 2020.

In addition, small and micro businesses are exempted from income taxes for three years.


News feed
21 January 2021, 19:26
Arman Dzhumabekov appointed Chief of Staff of the Ministry of National Economy
21 January 2021, 19:02
Gabidulla Abdrakhimov appointed vice minister of culture and sports of Kazakhstan
21 January 2021, 18:35
Urken Bisakayev dismissed as vice minister of culture and sports
20 January 2021, 14:13
Prime Minister Askar Mamin visits North Kazakhstan region on a working trip
19 January 2021, 11:02
By the end of 2021, it is planned to vaccinate up to 6 million Kazakhstanis — Ministry of Healthcare
19 January 2021, 10:58
Over 10 thousand police officers and military personnel of National Guard involved in quarantine actions — Yerlan Turgumbayev
19 January 2021, 09:45
Mass vaccination of population to start on Feb. 1 in Kazakhstan
18 January 2021, 21:46
Government session to be held Jan. 19 in Ukimet Uyi
18 January 2021, 20:01
Prime Minister Askar Mamin introduces new ministers of national economy, labor and social protection of the population
15 January 2021, 19:07
President took part in the Plenary Session of the Majilis of the Parliament
15 January 2021, 16:25
President Kassym-Jomart Tokayev signs decree appointing Askar Mamin as Prime Minister of the Republic of Kazakhstan
15 January 2021, 10:04
President Kassym-Jomart Tokayev signs Decree on Government of the Republic of Kazakhstan
12 January 2021, 20:12
American Valmont Industries to launch plant for production of advanced irrigation systems in Kazakhstan
12 January 2021, 14:16
Volume of oil and condensate production in Kazakhstan in 2020 amounted to 85.7 million tons — Nurlan Nogayev
12 January 2021, 13:13
Agro-industrial complex of Kazakhstan in 2020 showed positive dynamics of development
12 January 2021, 13:00
At the end of 2020, state budget revenues plan fulfilled by 102.7% — Yerulan Zhamaubayev
12 January 2021, 11:55
Production of vehicles had positive effect on growth of machine-building industry — Beibut Atamkulov
12 January 2021, 10:51
Income of National Fund at the end of 2020 remained positive — Erbolat Dossaev
12 January 2021, 10:43
In 2020, employment measures covered 1.4 million people, tax breaks were received by 700 thousand entrepreneurs — Ministry of National Economy
12 January 2021, 10:02
In 2020, real sector became the main factor in stability of Kazakhstan’s national economy
11 January 2021, 19:20
Government session to be held Jan. 12 in Ukimet Uyi
11 January 2021, 10:36
Prime Minister Askar Mamin voted in elections of deputies to Majilis from Assembly of the People of Kazakhstan
10 January 2021, 07:46
Prime Minister of Kazakhstan Askar Mamin voted in parliamentary elections
08 January 2021, 15:54
World Bank improved its estimates for economic dynamics of Kazakhstan in 2020
08 January 2021, 14:03
Kazakhstan is developing investment cooperation with the United States through AIFC platform
07 January 2021, 08:08
Prime Minister of Kazakhstan Askar Mamin congratulates Kazakhstanis on Christmas
01 January 2021, 00:10
Prime Minister Askar Mamin congratulates Kazakhstanis on New Year
30 December 2020, 19:54
Yeraly Tugzhanov gets acquainted with production of unique devices for treatment of lung diseases
30 December 2020, 13:47
Fifty schools for 170 thousand places to be built under public-private partnership in Kazakhstan PPP
29 December 2020, 11:49
By 2030, Kazakhstan plans to grow about 270 thousand tons of marketable fish per year – Magzum Mirzagaliyev
29 December 2020, 11:33
Kazakhstan developed draft new General Agreement for 2021-2023 on achievement of Decent Work concept
29 December 2020, 10:00
Government adopts Program for Development of Fishing Industry until 2030
29 December 2020, 09:38
Askar Mamin instructs to ensure effective control over observance of labor rights of citizens
28 December 2020, 22:40
Government session to be held Dec. 29 in Ukimet Uyi
28 December 2020, 14:16
Alikhan Smailov participates in meeting of Council of Eurasian Economic Commission
24 December 2020, 17:37
Prime Minister Askar Mamin chairs meeting of Council on Transition to Green Economy under President of Kazakhstan
24 December 2020, 17:13
Askar Mamin chairs meeting of State Commission for Control over Construction of Nur-Sultan
24 December 2020, 11:31
Yerzhan Kazanbayev appointed vice minister of trade and integration of the Republic of Kazakhstan
24 December 2020, 11:29
Azamat Askaruly relieved as vice minister of trade and integration
23 December 2020, 12:16
Expansion of Makinsk poultry farm to improve food security in Kazakhstan — Askar Mamin
22 December 2020, 18:35
Government considers progress in implementation of Nation's Plan "100 Concrete Steps''
22 December 2020, 18:21
Minister of Defense speaks on military equipment of Armed Forces and service during emergency
22 December 2020, 11:48
Introduction of water-saving irrigation technologies to reduce water consumption and increase yields – Saparkhan Omarov
22 December 2020, 11:16
Ministry of Justice of Kazakhstan: Government’s plan of legislative work for 2020 fully implemented
22 December 2020, 10:21
192 billion tenge to be allocated for digitalization of trunk canals within 5 years — Magzum Mirzagaliyev
22 December 2020, 10:00
Government considers Plan of Legislative Work for 2021
22 December 2020, 09:50
Government considers issues of using water resources
21 December 2020, 16:17
Government session to be held Dec. 22 in Ukimet Uyi
21 December 2020, 13:17
Askar Mamin launches production of Yutong buses in Saran
21 December 2020, 11:09
Production of Sputnik V vaccine begins in Kazakhstan
© 2019 - 2020 Press service of the Prime Minister of the Republic of Kazakhstan.
Developed by SoftDeCo.