(MENAFN- Trend News Agency) BAKU, Azerbaijan, January 10. Kazakhstan took
steps to address some of the challenges it had in the agriculture
sector in 2022, and this approach seems to remain high on the
agenda of decision-makers in 2023, trend reports.
One of the key problems, which topped the agenda of the
government and decision-makers in Kazakhstan, was the food security
issue. Geopolitical risks and uncertainty, rampant inflation, and
the post-pandemic economic recovery-induced consumption increase
forced the government to pay more attention to guaranteeing
security in this sector.
Below are some of the key developments in the agricultural
sector of Kazakhstan in 2022.
Investments in new projects
In retrospect, the current year can be labeled as a year of
preparation. The government of Kazakhstan, as well as local
authorities, tried to reshape the future of the agricultural sector
of the country. Significant investments were attracted for
implementing various projects to accomplish the objective of
guaranteeing the food security of the country.
Kazakhstan expects to implement 800 agricultural projects with a
total investment value of 2.6 trillion Kazakh tenge (around $5.6
billion) by 2025, Yerbol Karashukeev, Minister of Agriculture of
Kazakhstan said in December.
By that time, Kazakhstan has already implemented 227 projects
with a value of 214 billion Kazakh tenge ($460.1 million), an
equivalent of 96 percent of the annual plan.
The minister also highlighted that the Government is working on
expanding the capacity of vegetable stores in the country. To meet
the existing demand, additional vegetable stores, with a capacity
of 135,000 tons, will be built.
An additional 113.6 billion tenge ($244.2 million) has been
allocated by the government for the development of the
agro-industrial complex of the Kostanay region.
Out of these funds, 45.7 billion tenge ($98.2 million) was
allocated to subsidize agricultural producers, of which 13.9
billion tenge ($29.8 million) for crop production, 7.5 billion
tenge ($16.1 million) for animal husbandry, and 24.3 billion tenge
for other areas ($52.2 million).
This year, the area of spring sowing in the Kostanay region
amounted to 4.9 million hectares, including 4 million hectares for
cereals and legumes. The areas of oilseeds reached 748,300 hectares
and increased by 141,000 hectares compared to last year.
In order to meet the needs of the population of the region in
socially significant food products, the areas of such crops as
buckwheat, sunflower, potatoes, and vegetables have been
increased.
Production numbers
Kazakhstan harvested 486,900 tons of rice by November 2022.
After processing, about 221,200 tons of rice groats were sent to
warehouses.
The annual demand of the domestic market is about 165,000 tons,
which is much less than the volume produced. So, the new crop will
be enough to meet the needs of the population of Kazakhstan in
rice.
Moreover, the excess crop is exported to other countries. For 8
months of 2022, 67,800 tons were exported.
At the same time, in 2022, the sown area of rice in Kazakhstan
amounted to 87,800 hectares, which is 8,400 hectares less than in
2021. The main reason for the decline in production is the problem
with irrigation water needed during the growing season.
Minister of National Economy of Kazakhstan Alibek Kuantyrov
noted that Kazakhstan recorded a growth in agricultural
production.
The gross output value of agriculture increased by 8.2 percent.
The positive rise in production was recorded in 16 regions. The
Kostanay, Akmola, Mangystau, and North Kazakhstan regions showed
the greatest growth rate,' Kuantyrov said at a government
meeting.
As the minister noted, positive growth on all indicators is
observed in Kostanay, Akmola, Jambyl, East Kazakhstan, and
Kyzylorda regions, as well as in Almaty and Shymkent cities.
Some 8.07 trillion tenge ($17.2 billion) accounted for
agriculture alone, including 5.1 trillion ($11.02 billion)
accounting for plant growth, and 2.9 trillion tenge ($6.2 billion)
- for animal husbandry.
The increase in the agriculture, forestry and fishery gross
output during the reporting period was due to the increase in egg
output by 4.9 percent, milk by 1.8 percent, and plant growth by
12.7 percent.
North Kazakhstan region leads by the total value of agriculture,
forestry, and fishery gross output, which reached 1.02 trillion
tenge ($2.1 billion) from January through October 2022, showing a
12.8-percent increase compared to the same months of 2021.
This includes 793.3 billion tenge ($1.6 billion) worth of plant
growing output and 223.7 billion tenge ($479.1 million) of animal
husbandry output.
Second and third places accounted for Akmola and Turkestan
regions.
The value of agriculture, forestry, and fishery gross output in
the Akmola region amounted to 976.6 billion tenge ($2.09 billion),
which is 18.6 percent more than during the same period last
year.
This includes 708.09 billion tenge ($1.5 billion) worth of plant
growing output and 264.2 billion tenge ($565.8 million) of animal
husbandry output.
Agriculture, forestry, and fishery gross output in the Turkestan
region amounted to 950.6 billion tenge ($2.03 billion), which is 2
percent more than during the same period of 2021.
This includes 623.5 billion tenge ($1.3 billion) worth of plant
growing output and 321.2 billion tenge ($687.8 million) of animal
husbandry output.
An increase in agriculture, forestry, and fishery gross output
were observed in 16 Kazakh regions during the reporting period.
Almaty city is one of the largest producers of agricultural
goods in the country. From January through November 2022, the city
output amounted to 279.2 billion Kazakh tenge (nearly $605
million).
Government initiatives
In the context of agriculture and the efforts of the government
to retain control over this strategically important sector of the
economy, it is critical to look at some of the state initiatives
for 2023.
The Minister of Agriculture, Yerbol Karashukeev, said that from
2023, a new approach to forward financing for the supply of
socially significant food products will be introduced. This
approach will be implemented in 3 stages.
First, it is a forward purchase of autumn and early vegetables
before August 1 and September 1 respectively, with their subsequent
delivery to the market in the off-season.
The second stage provides for the financing of working capital
for the purchase of raw materials from buckwheat, rice, and
sunflower processing enterprises.
The third stage is financing through state support mechanisms
and the sale of cheaper grain.
Karashukeev also said that the work on improving the system of
subsidizing the agro-industrial complex is nearing completion. The
minister added that a compromise option that will minimize
corruption risks, take into account the opinion of the farming
community, and provide the domestic market with sufficient food
products has been developed.
The government is also looking to decrease the number of
intermediaries to control the prices of agricultural products.
Speaking on a different date, Minister Karashukeev stated that
Kazakhstan increased the production of certain types of vegetables,
and now the wholesale price for these types ranges from 500 Kazakh
tenge ($1.08) to 600 Kazakh tenge ($1.30).
Karashukeyev added that inflated prices are observed as a
consequence of numerous unproductive intermediaries.
'The work to eliminate unproductive intermediaries is currently
underway. It is important to control the markup together with the
Ministry of Trade and Integration, and local executive bodies,' the
minister concluded.