It is profitable to invest in Kazakhstan’s agro-industrial sector, PM says

ASTANA (TCA) — On October 25 Kazakhstan’s Prime Minister Bakytzhan Sagintayev took part in the first international forum on the development of the agro-industrial sector, Astana Agro Forum 2018. More than 800 representatives of the international expert community and the non-governmental sector, agricultural producers, and heads of local executive bodies participate in the two-day program events, the official website of the Prime Minister of Kazakhstan reports.

During the plenary session, Deputy Prime Minister and Minister of Agriculture of Kazakhstan Umirzak Shukeyev said that the export of agricultural products from Kazakhstan for eight months of this year increased by 30%. The inflow of investments in the agricultural sector increased by 14% (239.7 billion tenge), and in food products by 32% (76.8 billion tenge). Shukeyev told investors about the work being done to increase the availability of financing for the agro-industrial sector, the reform of agrarian science and education, and the creation of conditions for the development of animal husbandry and export potential.

World Bank expert on agriculture Sergiy Zorya spoke about global trends in world meat demand, its safety and development. Head of the Meat Union of China and President of Grand Farm Meats Chen Xibin spoke about the current situation in the development of the Chinese meat market, cooperation with other countries, as well as prospects for cooperation with Kazakhstan in terms of export of meat products.

Following the speeches at the plenary session, Prime Minister Sagintayev said that the agro-industrial complex of Kazakhstan is becoming very attractive for investments. Businesses are very profitable to invest in the development of agriculture in Kazakhstan, which provides access to the largest sales markets, including one of the largest markets in the world — China. Kazakhstan is rapidly developing the agro-industrial sector through the adoption of various government programs, while taking into account international experience. One of the main priorities of the development of agriculture is the science and technological re-equipment of the sector, which will help expand markets, increase supplies to foreign countries and improve competitiveness.

“Last year, in his Address ‘Third Modernization of Kazakhstan: Global Competitiveness,’ the Head of State clearly stated that it is agriculture that is the driver of the [Kazakh] economy. This year, the President reiterated in his Address ‘Growing Welfare of Kazakh Citizens: Increase in Incomes and Quality of Life’ that it is necessary to increase labor productivity by 2.5 times over five years. In additions 100 billion tenge should be allocated annually for the program, 600 billion tenge from the National Bank to develop the economy, of which 200 billion must be sent to the agriculture. To the existing funds 300 billion tenge were added. Now the World Bank is ready to invest $500 million in the form of loans,” said Sagintayev.

At the same time, it was noted that the state support system is aimed at export-oriented agricultural enterprises.

On the sidelines of the forum, Sagintayev held a collective meeting with representatives of large transnational companies working in the field of agriculture — Farm Frites Beheer B.V., Grand Farm Meats, Hyundai Corporation, Grand Farm Meats, AGCO, CLAAS, Dal Holding Investment Co, and Valmont Middle East FZE. Investors presented projects implemented in Kazakhstan. These are the construction of a plant for the production of french fries, the production of agricultural tractors, the assembly of agricultural machinery, a modern plant for sugar production, the construction of a greenhouse Agropark, etc.

Currently, projects of such multinational companies as AGCO from the US, the Irish company Dunbia, the Italian company Inalca, the German company CLASS, and the South Korean Hyundai are being implemented in Kazakhstan. Investments in the agricultural sector increased by 14%.

Sergey Kwan

TCA

Sergey Kwan has worked for The Times of Central Asia as a journalist, translator and editor since its foundation in March 1999. Prior to this, from 1996-1997, he worked as a translator at The Kyrgyzstan Chronicle, and from 1997-1999, as a translator at The Central Asian Post.
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Kwan studied at the Bishkek Polytechnic Institute from 1990-1994, before completing his training in print journalism in Denmark.

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