Government • 29 May, 2018

PM instructs to analyze multiplier effect of development of agricultural cooperatives

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At the meeting of the Government chaired by the Prime Minister Bakytzhan Sagintayev on May 29, First Vice Minister of Agriculture Arman Yevniev reported on the further development of agricultural cooperatives, reports primeminister.kz.

At the beginning of his speech, Arman Yevniev noted that the adoption of the law "On Agricultural Cooperatives" in 2015 eliminated the main barriers to the development of cooperation: the members of cooperatives were given the right to distribute profits among themselves, conditions for the development of the institute of audit unions for an annual audit of cooperative activities were created, instead of three laws, a single special tax regime is extended to agricultural cooperatives, and the activities of agricultural cooperatives are clearly identified.

According to statistics, as of April 1, 2849 cooperatives with the association of more than 62 thousand people were registered.

At the same time, there is a number of open issues. In this regard, as part of the work to update the current State Program for the Development of the Agro-Industrial Complex, six key areas have been identified, according to which it is necessary to replace the existing target indicators. This are labor productivity, production competitiveness, technical equipment, knowledge, profitability from product sales, balance of extra costs.

The purpose of the agro cooperatives development program is to determine the constant increase in labor productivity and competitiveness of agricultural cooperation participants.

"It is proposed to introduce three measurable key indicators with an annual growth of at least 10%: growth in labor productivity of cooperative members, growth in revenues from sales of products (including exports) and provision of services, growth in investment in fixed assets of agricultural cooperatives," Yevniev said.

According to the Ministry of Agriculture, the proposed target indicators stimulate participants in cooperatives and local executive bodies to economically analyze the entire chain of production, technological and marketing processes, identify and eliminate constraints.

Arman Yevniev also reported on specific measures and tools for implementing the sectoral cooperation development program. One of the tools is equal conditions for subsidizing agricultural cooperatives for all available measures of state support.

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