23.09.2024, 16:33 1831

Olzhas Bektenov discusses agribusiness measures to support the agricultural sector within President's Address as well as harvesting campaign progress with representatives of agribusinesses

Olzhas Bektenov discusses agribusiness measures to support the agricultural sector within President's Address as well as harvesting campaign progress with representatives of agribusinesses
Images | primeminister.kz
Prime Minister Olzhas Bektenov held an extended meeting with representatives of domestic agribusinesses, which discussed issues of support for the agricultural sector and the progress of the harvesting campaign. Considered measures to achieve the goals outlined by the Head of State in the Address to the Nation "Fair Kazakhstan: law and order, economic growth, social optimism", primeminister.kz reports.

During the meeting considered approaches to long-term state support of the subjects of agro-industrial complex.

In his Address to the people of Kazakhstan, the Head of State placed special emphasis on business development and measures to support it. Sustainable development of agro-industrial complex is the guarantee of our food security, and therefore the Government will continue to support agriculture, which employs more than 1 million of our citizens," Olzhas Bektenov emphasised.


The Minister of Agriculture Aidarbek Saparov, Akims of Akmola, Kostanay, North Kazakhstan, Zhambyl regions reported on the implementation of measures of state support of agro-industrial complex.

On the instructions of the President this year the Government has created all necessary conditions for the successful conduct of spring field and harvesting works. For the first time the volume of preferential financing of the industry has increased more than 3 times and reached a record 580 billion tenge. These funds were allocated to agrarians for direct lending, interest rate reduction and forward purchase. Interest rate cheapening was carried out at the stage of attracting commercial funds by Baiterek Holding. Next year, a similar mechanism will be launched for financing of processing enterprises. In general, the government provides comprehensive assistance to agribusiness at all stages from the purchase of seeds and fertilisers to export support.

The President has set a task to increase the volume of financing for agribusinesses by switching from direct subsidies to affordable lending. From 2025, agrarians will be able to directly receive cheaper loans from financial institutions. Issues of subsidising will be fully entrusted to the Ministry of Agriculture. Thus, the farmer will be freed from unnecessary red tape in processing subsidies.

This year, a record volume of preferential lending has been achieved. From next year, the volume of financing of the industry is planned to increase and reach 700 billion tenge. Prime Minister Olzhas Bektenov emphasised that the first money of the next year should reach farmers in December this year.

Special attention was paid to the issue of preferential financing for the purchase of agricultural machinery. This year the Government has significantly increased the amount of allocated funds, which allowed more than 2,000 agricultural producers to renew the existing fleet. The country's agrarians purchased about 20 thousand units of agricultural machinery, the level of renewal was 5%. This indicator is planned to reach 5.5 per cent by the end of this year and 6.5 per cent next year. At the same time, taking into account the needs of the domestic market, instructed to ensure the increase in capacity of Kazakh enterprises for the production of agricultural machinery.

In March this year, the country introduced a mechanism of advance subsidies for the purchase of domestic fertilisers. Thanks to significant government support of spring field and harvesting operations, 1.2 million tonnes of fertilisers have been applied to the soil to date, which exceeds the level of last year by 2 times. Taking into account the Head of State's instruction to reduce degradation of agricultural land, akimats need to increase the volume of fertiliser application to 1.9 million tonnes in 2025.

When considering the development of domestic seed production, the importance of reducing the use of imported seed materials in crop production, especially for vegetable, fruit and melon crops, was noted. The Ministry of Agriculture was instructed to deal with this issue, qualitatively developing the system of breeding and seed production. The need to revise the subsidy mechanism in favour of domestic seed producers was also outlined.

The attention of the meeting participants was focused on the marketing of products through processing and export. According to the Ministry of Agriculture, this year's grain harvest is expected to be at least 20 million tonnes. The Ministry of Trade and Atameken Chamber were instructed to expand priority markets for export of agricultural products, not limiting themselves to the traditional ones, such as Central Asia, China, Afghanistan and Iran, but also to work out new directions - EU countries, North Africa, South-East Asia and others. In turn, the Ministry of Transport and KTZ should provide an effective mechanism to support the transport of exported agricultural products.

Prime Minister emphasised the importance of self-sufficiency of the country in food products. The state is taking all necessary measures to create favourable conditions and comprehensive support for the agricultural sector. At the same time, open and transparent work is expected on the part of business. In order to prevent inefficient use of funds allocated by the state, a large-scale agricultural census will be conducted in Kazakhstan in 2025, which will allow to update data on land and crop areas, animal population, agricultural machinery and infrastructure.

The President's Address sets specific tasks for the development of agriculture, increasing productivity and year-round employment of the rural population, ensuring effective and transparent financing of the industry. This work should be carried out in close co-operation between the state and business. Only in this way we will achieve significant results," Olzhas Bektenov emphasised.


***

During the discussion, domestic agribusinessmen voiced their proposals for further development of the industry, and also raised a number of topical issues.

I would like to note the tremendous work done this year to increase the financing of the agro-industrial complex industry. Agrarians have felt this support. Preferential loans allowed to work as it is necessary, and not on what was enough money. Quality seeds, fuel and lubricants, fertilisers were purchased in a timely manner. Applying correctly all agro-technologies and with such support from the state, we have no right to get bad harvests. Here we should talk about livestock farming: yes, it is a painstaking labour-intensive process, but in livestock farming people are busy all year round. Farms as a whole should be diversified, engaged not only in crop production, but also increase the number of livestock. Then we will not need any export quotas, we will be free to trade and conquer markets. Many of the participants in today's meeting do not keep cattle. Colleagues, we need to get involved, I urge everyone to do so," Gennady Zenchenko, Chairman of the Public Council on the development of agro-industrial complex, founder of the company "Zenchenko and K", spoke on behalf of the farming community.


The entrepreneur also raised the issues of development of domestic science in the field of crop production, veterinary medicine, and noted the importance of training professional staff.

Director of "Tan LTD" LLP of Kyzylorda region Imamzada Shagirtayev reported that as a result of intergovernmental agreements reached with neighbouring countries, the agrarians of the region were provided with irrigation water this year. This year the company planted more than 2 thousand hectares of areas with agricultural crops, of which about 1.5 thousand hectares were allocated for rice. Laser planning of rice fields was carried out, which allowed to ensure 30% saving of irrigation water. As of today, over 50% of the crop has been harvested. The entrepreneur made a proposal to consider the possibility of developing additional support measures for farmers to introduce water-saving technologies.

Alexander Khilnichenko, head of the limited partnership "Khilnichenko and K" from Zhetisu region, also spoke: "A vivid example of the effectiveness of state support is the sugar industry in our region. Literally within a year there are results: sugar beet crops have doubled from 7 thousand hectares in 2023 to 13.7 thousand hectares in 2024; a record harvest of 600 thousand tonnes has been obtained for the last decade. All this is the result of compliance with agro-technologies: we worked with quality seeds, used fertilisers, and carried out timely treatment, thanks to which high yields were ensured. Sugar beet producers are ready to further increase their productivity. In 2024, our own sugar production will grow 2-fold, reaching 22% of the country's demand. I would like to note that an important step was the increase in the amount of subsidies for sugar beet production as a priority crop from 15,000 to 25,000 tenge per tonne processed".

According to the Ministry of Agriculture, farmers in Zhambyl region and Zhetisu are expecting a high sugar beet harvest this year, thanks to measures taken to introduce agro-technologies and the results of ongoing diversification. Regarding the sale of sugar beet it is noted that 450 thousand tonnes from Zhambyl region will be processed at Merken sugar factory, the remaining 100-150 thousand tonnes will be processed at Aksu sugar factory located in Zhetisu region. In turn, the processing of the harvest will produce 120,000 tonnes of sugar, which will significantly increase the country's self-sufficiency in sugar.

Armat Bisenov, Chairman of Farmers' AgroCentre, which includes more than 60 advanced farms of West Kazakhstan region, head of AgroService-Batys Company, spoke on behalf of young farmers of the country. He noted the importance of the introduction of the programme "KenDala-2", which allowed to multiply the coverage of commodity producers with preferential lending and comply with agro-technologies.

Agrarians from a number of regions made proposals in the videoconference mode. General Director of "Experimental Farm of Oilseeds" Farid Abitaev (East Kazakhstan region), head of the agricultural production cooperative "Zhetysu" Isagulov Zhanat (Almaty region), LLP "Tulpar LTD" Valery Goloukhov raised the issues of use of mineral fertilizers, pricing of agricultural products, as well as on the mechanisms of preferential lending under the programme for the construction of dairy farms.

Raimbek Batalov, Chairman of the Presidium of Atameken NCE, also voiced a number of topical issues, including the importance of digitalisation of the agro-industrial complex.

***

In addition, the issues on the current agenda the progress of the harvesting campaign were considered. The total harvesting area of agricultural crops in the country this year is 23.3 million hectares. As of today, 11.3 million hectares of grain and leguminous crops have been harvested, or 67.9% (last year the similar indicator for the period was 42.8%). With an average yield of 14.7 c/ha, 16.7 million tonnes of grain have been harvested, which indicates the correct application of agro-technologies. The share of elite seeds increased from 7.1 to 9%.

Prime Minister stressed that the issue of preserving the new harvest and improving the quality of bread is important. The total storage capacity of grain in the republic is 30 million tonnes. According to the Ministry of Agriculture, this amount of capacity is sufficient for the planned harvest, taking into account the carryover residues of previous years. Bread receiving enterprises have received 2.5 million tonnes of grain, including 1.8 million tonnes of wheat. The work on moving and selling grain to free elevators to receive the new harvest is being carried out. Thus, in August and 15 days of September of this year Prodkorporatsiya and KTZ transported 1.2 million tonnes of grain cargo, of which 1 million tonnes were exported. Part of the grain is exported to Uzbekistan and China, while the remaining volumes are sent for domestic needs. In September, KTZ increased the plan to 1.9 million tonnes to ensure transportation of grain of the new harvest. The return of Kazakhstani grain to its traditional market - Iran - is noted.

This year, farmers are provided with a sufficient amount of discounted fuel and fertilisers for quality agricultural work. The regions have already shipped 226.2 thousand tonnes of discounted diesel fuel, or 64% of the plan. The work in this direction continues. The Ministry of Energy has additionally allocated 67.7 thousand tonnes of diesel fuel for the drying of grain and oilseed crops.

Head of the Government outlined the key priority of the current work - to complete the harvesting campaign in optimal terms, to preserve the harvested crops and to ensure the sale of products. Here the importance of coordinated work of all interested state bodies and organisations was noted.

***

Following the results of the meeting Prime Minister instructed state bodies to ensure quality completion of the harvesting campaign in the country, as well as to work out all the proposals of business.
 

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