Economy • 20 February, 2020

Kazakh Agriculture Ministry on the change of subsidizing rules for egg producers

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The state has always paid special attention to the production of eggs as one of the socially important food products. In 2010, the country produced 3.3 billion units of eggs, which closed domestic consumption by only 70% (the country imported 150 million eggs a year). At the same time, 64% of the production was produced in agricultural enterprises, and the rest in private farmsteads.

Subsidizing egg production in Kazakhstan started in 2010. During the 10 years of subsidizing, production in agricultural formations increased by 83% and reached 4.3 billion eggs per year. In total poultry farms received about 75 billion tenge of state subsidies.

Relying on government support to the poultry farmers of Kazakhstan has restored and conducted a technical re-equipment of all existing poultry farms.

Meanwhile, the State program for the development of agriculture of the Republic of Kazakhstan for 2017-2021 provides for the optimization of support measures with a gradual reduction of product-specific subsidies, the so-called "subsidies per unit of production". The state Program plans to reduce commodity-specific subsidies in animal husbandry from 2020.

At the same time, the reduction does not mean the complete exclusion of subsidies. For poultry farms, support measures will be maintained in the form of cheaper interest rates on loans and leasing, as well as compensation for investment costs for expanding production facilities.

In addition, in December 2019, the government of the Republic of Kazakhstan approved the plan of the Ministry of agriculture to revise subsidies for farmers, taking into account the analysis of their effectiveness and tasks for replacing imports of food products.

In accordance with this decision, the Ministry of agriculture plans to exclude commodity-specific subsidies for a number of industries that have a level of self-sufficiency. Egg poultry farming is one of these industries for the above reasons.

Further development of the industry should be aimed at expanding sales markets and diversifying production by switching to deep processing. The development of deep processing of eggs will allow the production of egg powder, melange, dry fermented protein and yolk, dry egg mixtures, etc., which are not currently produced in the country. This will provide the domestic confectionery and food industry with a high-quality and affordable product. In this regard, the state is ready to support domestic egg producers.

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