Government • 19 June, 2018

Government considers actualization of State Program for Development of Agro-Industrial Complex

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June 19 at the meeting of the Government chaired by the Prime Minister Bakytzhan Sagintayev, the issue of updating the State Program for the Development of the Agro-Industrial Complex was considered, reports primeminister.kz.

The Head of State in his Address "New Opportunities Under the Fourth Industrial Revolution" gave the agro-industrial complex the task of increasing labor productivity and export of processed agricultural products by at least 2.5 times in five years.

First Vice Minister of Agriculture Arman Yevniev reported that long-term sectoral programs have been created with a period of 10 years or more to develop meat and dairy farming, poultry farming, irrigated lands, and the sugar industry.

"State Program of the Agro-Industrial Complex will provide for solution of the main conceptual issues of the industry and related areas, such as digitalization of agribusiness, technical regulation, taxation, rural areas and will be a kind of open platform, on which sectoral and related programs will be applied as part of the state program," Yevniev said.

The basis for the Livestock Development Program will be small family farms in the form of anchor cooperatives consisting of farms for growing cattle, industrial fattening areas and modern meat processing complexes.

It is planned to create more than 80,000 family farms engaged in cattle breeding, sheep and horse breeding, expand the area of pastures from 58 million hectares to 100 million hectares, increase the number of cattle to 15 million heads, and sheep — to 30 million.

For participants in the program for the development of meat cattle breeding, individual support conditions will be offered: priority allocation of land plots, preferential crediting of farms to purchase livestock, purchase of machinery and equipment, and creation of pasture infrastructure.

The program of dairy farming will also be built on the principle of anchor cooperation consisting of family farms for milk production, industrial dairy farms and modern mills. It is planned to increase the number of family farms from 380 to 930, large dairy farms — from 108 to 170 and mills — from 163 to 174. As a result, the task is to increase the volume of milk production by 1 million tons.

Under the Poultry Development Program, poultry production will be increased fourfold or 560,000 tons (from 180 to 740,000 tons), of which 150,000 tons will be exported; eggs for food — 1.5 times or 2.5 billion eggs (from 5 billion pieces to 7.5 billion pieces), of which 1.5 billion will be exported.

Arman Yevniev also said that this year a new mechanism for subsidizing seed production will be introduced, providing for 100% reimbursement of farmers' expenses for the purchase of seeds according to established standards. At the same time, the state reimburses to seed-growing farms the full cost of elite seeds or seeds of the I reproduction to the farmer. At the same time, according to the vice minister, farmers do not need to collect a lot of documents for getting subsidies.

The task of increasing technical equipment will be solved by subsidizing the interest rate on leasing and the amount of investment subsidies. Thanks to these measures, for five years the park of agricultural machinery will be brought to the optimal level, which will allow in the following years to reach the normative rate of renewal at the level of 6% per year. Since this year, within the framework of investment subsidies, the refund rate will be 25%.

Within the framework of the State program, it is planned to bring the total area of irrigated land to 2 million hectares. Work will also be carried out to reform the agricultural science. On the instructions of the Head of State, it is planned to assign agricultural research institutions status to agrarian higher educational institutions. Financing of agrarian science is planned to be increased to 1% of the gross agricultural output in 2030, including up to 0.5% in 2021.

"The draft state program provides for a set of measures for the development of rural areas, which will be implemented through the development of programs adjacent to the agro-industrial complex. The project approach will solve the problem of bureaucratic barriers in the development and harmonization of program documents, as well as provide flexibility in decision-making," Yevniev summarized.

Minister of National Economy Timur Suleimenov in his turn noted that the adjustment of the State Program for the Development of Agro-Industrial Complex will make it possible to attract 4 tenge of private investments for 1 tenge of budget funds. Taking measures to import breeding stock for further breed transformation will increase gross production in cattle breeding by 200 billion tenge or 10%.

"In general, the implementation of the State program will allow increasing the index of the physical volume of gross agricultural products (services) by 2021 in comparison with 2015, the index of the physical volume of investment in fixed assets in agriculture will increase five times in 2021 to the level of 2015. The volume of investments attracted through subsidies in 2021 will be 751,2 billion tenge, the export of processed agricultural goods will be $2.2 billion, wich is more than 2.3 times higher than the level of 2015 ($945 billion),” Suleimenov summed up.

The meeting participants also heard the information of Chairman of the Board of the NMH KazAgro N. Malelov, Chairman of Atameken NCE A. Myrzakhmetov.

Director of the representation of the Asian Development Bank in Kazakhstan Giovanni Capanelli shared his opinion on the program of irrigated lands.

Also in the course of consideration of the issue were the akims of the regions: Aktobe — B. Saparbayev, South Kazakhstan — Zh. Tuimebayev, North Kazakhstan — K. Aksakalov.

Comments on the discussion were given by Deputy Prime Minister Erbolat Dossaev, Deputy Prime Minister, Minister of Agriculture Umirzak Shukeyev, Chairman of the Board of Samruk-Kazyna SWF Akhmetzhan Yessimov.

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