The progress of the implementation of the State program for the development of the agro-industrial complex of the Republic of Kazakhstan for 2017–2021 was reviewed today at the Government meeting chaired by the Prime Minister of the Republic of Kazakhstan Bakytzhan Sagintayev.

The Head of State tasked the agro-industrial complex to increase labor productivity and export of processed agricultural products within five years by least 2.5 times. Taking into account the tasks set in July of this year, the Government updated the AIC Development State Program until 2021.

First Deputy Minister of Agriculture A. Yevniyev reported on the progress in implementing the updated state program. It should be noted that the implementation of the state program is for the first time managed in pilot mode using the project-based approach. For this purpose, a full-fledged project office has been created, which conducts operational control and spot monitoring of projects throughout their entire life cycle. The entire state program, in accordance with the standards of project management, has been decomposed into 10 sectoral, 14 regional programs, and other government agencies were involved in the development of 10 related subprogrammes on the development of the agro-industrial complex and rural areas.

A. Yevniyev reported on the progress of the sectoral programs. The sectoral program for the development of animal husbandry has been implemented since the second half of this year and is based on small and medium-sized farms. For its implementation, a special preferential loan product “Sybagha” has been launched.

“This year the plan has already been exceeded, despite the fact that we began its implementation only from the second half of the year. To date, over 600 farmers have received loans. The annual plan for the purchase of cattle by farms is 50 thousand heads. Over 11 months, applications for more than 67 thousand heads have already been received, loans have been approved and granted for 55 thousand heads. The plan for breed conversion of the broodstock is 1 million heads. Already today, about 977 thousand heads or 98% are involved in the breed transformation,” - A. Yevniyev reported.

According to the Ministry of Agriculture, for 11 months of this year, exports of beef amounted to 14.5 thousand tonnes. At the same time, according to A. Yevniyev, by the end of the year the Republic will exceed the planned 15 thousand tonnes of beef.

The sectoral dairy program provides for an increase in milk production over 10 years by 1 million tonnes. Target goals have been defined. Before 2027, it is planned to open 527 new family dairy farms with a capacity of up to 400 heads, 139 industrial CDFs starting from 400 heads.

“This year 15 dairy farms have already been commissioned. Of these – 10 are industrial with a total capacity of 7.4 thousand heads, and 5 family farms. By the end of the year, additional 10 farms are planned to be commissioned with a total capacity of 4.5 thousand heads. As a result of the implementation of the program with the same amount of state support, by increasing its efficiency, the volume of milk production just in organized farms for 10 months amounted to 1.3 million tonnes. For comparison, in 2015 they produced 900 thousand tonnes,” – A. Yevniyev said.

According to the Ministry of Agriculture of the Republic of Kazakhstan, it is precisely the organized farms that give the main milk growth. Thus, in 10 months they produced 7.8% more milk than in 2017. And this is real, accounted milk, which was received for processing. At the same time, personal subsidiary farms yielded a growth of only 1.9% over the same period.

As part of the sectoral program for the poultry industry, it is necessary to increase the level of poultry meat production by three times over the next 10 years and thereby ensure import substitution. This year, the Makinsk Poultry Factory project has already been launched with an annual capacity of 60 thousand tonnes. This is the most ambitious project at this stage in the poultry industry.

A. Yevniyev noted that the largest reserve in crop production exists in the development of irrigated agriculture. The state program envisages the involvement of 610 thousand hectares until 2021, including 65 thousand hectares in the current year, of which 42 thousand hectares of irrigated land have been introduced today. The remaining area will be introduced before the end of the year. In general, for the implementation of this task, jointly with the Islamic Development Bank and the European Bank for Reconstruction and Development, projects are being implemented to restore the irrigation and drainage systems of the irrigated lands in demand on an area of ​​128 thousand hectares amounting to more than 100 billion tenge.

In addition, within the framework of this sectoral program, additional 1.5 million hectares of new irrigated lands are planned to be brought into circulation, bringing the area up to 3.5 million hectares. Thus, the share of irrigated land in the total sown area will be 16%, and the gross output will be at 2.4 trillion tenge. Irrigation farming is not only vegetables and fruits, it is also guaranteed feed for livestock.

As part of the sectoral program for the development of intensive gardening, the task has been set to lay out intensive gardens on an area of ​​47 thousand hectares and thereby ensure import substitution over 10 years. In addition, related areas will be developed: the construction of fruit storage facilities, the creation of nurseries and laboratories for the production of virus-free seedlings, the reloading of processing facilities. The main regions where intensive gardens are located are Almaty, Zhambyl and Turkestan regions.

In addition, A. Yevniyev reported on the progress in the implementation of a number of system tasks aimed at providing the agro-industrial complex with the necessary resources. Thus, specific measures are envisaged in order to increase the accessibility of the AIC entities to financing.

First, this year the subsidization of interest rates on loans for fixed assets, as well as the leasing of agricultural equipment and agricultural animals, have been resumed.

“This allowed in just 10 months of this year to lend 2752 units of equipment worth over 50 billion tenge. For comparison, during the entire last year, 2400 vehicles worth 40.2 billion tenge were leased. And this is taking into account the fact that the program was launched in the second half of the current year. In general, in 2018, it is planned to allocate up to 60 billion tenge for leasing programs,” – A. Yevniyev informed.

Second, the approaches to investment subsidies have been changed. Now the share of compensation for investments is equalized on all passports to 25%, with the exception of infrastructure projects for irrigation of pastures, where the percentage of compensation will remain at 80%.

“This gave impetus to the initiation of new investment projects. If last year, 40 large investment projects worth 45.1 billion tenge were approved through KazAgro, from the beginning of the current one - 76 projects worth 104.5 billion tenge,” – the First Deputy Minister of Agriculture said.

Third, in the framework of improving the efficiency of state support, ineffective subsidies are being eliminated, such as, according to A. Yevniyev, per hectare subsidies in crop production, subsidizing of productivity in animal husbandry. According to the results of the reform, of the 54 types of subsidies, 34 will remain, which will be simplified to the maximum and fully automated by the end of the year. This will reduce the time for consideration of applications by an average of 2.5 times and reduce corruption risks. This year, for the first time, the process of issuing subsidies for mineral fertilizers is fully automated.

Work is also continuing to involve financial institutions in financing the agrarian sector by funding them with KazAgro. For two years, the volume of loans in this area increased from 21% to 37%. Since the beginning of this year, the Holding has funded financial institutions for 82.3 billion tenge.

Meanwhile, the loan guarantee system is being improved, thus from 2019 guarantees up to 30% of the loan amount can be obtained by small and medium businesses in priority agricultural areas, as well as those which lack collateral security for development. The relevant rules have been adopted.

In addition, as A. Yevniyev emphasized, work is underway to improve insurance systems in agriculture and credit partnerships, and a new financial instrument is being introduced - the agrarian receipt. To this end, a package of amendments to legislative acts has been formed, which is under consideration in the Mazhilis of Parliament.

In addition, structural changes were carried out this year in the National Agricultural Research and Education Center (NANOTS) in order to promote science, education and dissemination of knowledge to improve the quality of scientific research. The basis for this was the experience of countries which most successfully use innovations in the agro-industrial complex. These are the USA and Brazil, where the main emphasis is placed on the transfer of science to applied tasks and targeted training of scientists.

“This year, program-targeted funding has been increased by 1.8 times from 4.2 billion tenge to 7.6 billion tenge. In addition, since this year, for the first time, business associations have participated in making decisions on the financing of scientific research topics for the next three years. The next step will be the formation of the market demand for research through the introduction of co-financing subsidies. 4.1 billion tenge was allocated for updating the material and technical base of scientific organizations,” – A. Yevniyev said.

As the First Deputy Minister of Agriculture informed, the new knowledge dissemination system will rely on the system of agro-parks and regional centers, which will carry out the agro-maintenance, transfer of the necessary technologies for the farmers of the region and their observance, will use the scientific potential of research institutes and universities to transfer selective knowledge and necessary technological solutions based on regional centers.

“In order to ensure the availability of sales markets and export development, measures are being taken to protect the domestic market and expand foreign markets. The Chinese market is open to many agricultural products (for example - fish products, pedigreed horses, frozen lamb, honey, wheat, wheat bran, soybeans, slaughter horses, rapeseed meal, beef, alfalfa hay, flour, vegetable oil, barley, corn). Due to these measures, in the first nine months, exports of agricultural products to China increased by 42%,” – A. Yevniyev said.

Veterinary requirements for the supply of live sheep, frozen and chilled lamb, beef, and edible eggs are agreed with the Iranian side. This year, the Ministry of Agriculture of the Republic of Kazakhstan plans to harmonize the requirements for live cattle.

Restrictions on the supply of cattle and small ruminants to Saudi Arabia and the United Arab Emirates, as well as meat and meat products, chicken eggs to the UAE, have been lifted. 171 Kazakhstan enterprises are included in the Registers of foreign countries that have the right to export agricultural products. For example, 153 enterprises received the right to export to China various types of agricultural products, 17 fish processing enterprises have permission to export fish products to the European Union.

According to the First Deputy Minister of Agriculture, the International Epizootic Bureau (OIE) filed a dossier on the division of the territory of nine regions free of foot and mouth disease without vaccination into five zones, which will simplify international trade. Negotiations are planned with the veterinary and phytosanitary services of Israel, Kuwait, Malaysia, Japan, South Korea, and the European Union countries on the possibility of supplying Kazakhstani agricultural products. As a result, exports of agricultural products for the nine months increased by 28.3%, of which exports of processed products increased by 10%.

As part of the AIC Digitalization program, electronic field maps are being created, which are a key element of precision farming, 24 million hectares of arable land, or 100% of the total sown area, and 24.6 million hectares of pastures or 35% are digitized. By the end of the year it is planned to complete the full digitization of pasture fields.

“With regards to the automation of the subsidization process, out of 15 types of subsidies, 3 subsidies (fertilizers, herbicides, hectares) were launched with full automation of the process. Blockchain technology is used in electronic grain receipts, which made it possible to ensure the security of operations with grain receipts in the amount of 5 million tonnes of grain,” - A. Yevniyev said.

A. Yevniyev also reported that the measures and indications of sectoral programs were cascaded into regional programs. To date, all areas have developed and defended their programs.

“In order to monitor the implementation of the state program in the regions this year, instead of 103 indicators, which were previously monitored in the regions, a rating of regions by 30 indicators has been developed, aimed at encouraging regional leaders to take measures to increase labor productivity,” – A. Yevniyev assured.

According to the Ministry of Agriculture, in the country as a whole, there has been an increase in the volume of attracted investments in the fixed capital of agriculture, for 10 months it was 18.4%, and in food production - 34%. Diversification of crop acreage continued in crop farming.

In turn, Chairman of the Board of KazAgro R. Kurmanov said that according to the results for 10 months, the volume of funding of financial organizations amounted to 83 billion tenge, or 30% of the total lending. By the end of the year it is planned to reach the figure of 37%.

“In terms of increasing the level of technical equipment and intensifying production in the agro-industrial complex, 2752 units of equipment worth 50 billion tenge were leased, which is 20% more than in 2017,” – R. Kurmanov said.

Akims of Zhambyl region - A. Myrzakhmetov, Turkestan region - Z. Tuimebayev, Akmola region - M. Murzalin, West Kazakhstan region - A. Kulginov, Mangystau region - E. Tugzhanov also reported on the implementation of the state program in the regions.

Deputy Prime Minister and Minister of Agriculture U. Shukeyev said that a new sectoral program for the development of irrigated land is ready, which will be submitted to the Government in December. This program will include issues of subsidizing equipment for greenhouses.

This year, the AIC Development State Program for 2017–2021 was implemented at an intensive pace. And due to the fact that the agro-industrial sector is a fairly extensive field and has many areas, this program provides for the implementation of specific projects. At the level of the Ministry of Agriculture, work is carried out within the framework of project management. As a result, the entire program for the development of the agro-industrial complex should consist of specific projects: at the rural, district, and regional levels.

Summing up the consideration of the issue, Prime Minister Bakytzhan Sagintayev outlined the positive dynamics of changes in the indicators of the state program, while noting the lag behind the intended results in a number of regions. In this regard, the Ministry of Agriculture, together with the Akimats, is instructed to ensure the achievement of all target indicators and the positive dynamics of the main indicators of the development of the agro-industrial complex before the end of the year.

At the end of the year, the Government will hear reports of regional Akims on the work carried out as part of the project management on agriculture and the digital economy.

Published: 04 December 2018



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