Government considers new agro-industrial development program for 2017-2021

Government considers new agro-industrial development program for 2017-2021

Agro-industrial complex can become one of the powerful drivers of Kazakhstan's economy in the coming years. The government presented a new project of the five-year agricultural development program. By 2021, all the key indicators of Kazakhstan's agro-industrial complex should increase significantly. In particular, it is planned to boost gross output of agricultural products up by 30% to more than 4 trillion tenge; labor productivity will grow twofold.  Export volumes will rise by 17% to $2.5 billion. The large-scale development of cooperatives was prioritized in the program. Farmers who have private and small farms will be offered to join cooperatives, which will simplify harvesting and sales system and increase the proportion of recycling and as a result remove the overload at processing plants. Finally, as per the plan, 1,200 cooperatives will operate in Kazakhstan in 5 years. 500 private and small peasant farms will be united for this purpose.



Since logistics is built on the harvesting of these products, we expect that there will be reduction in the trade margin by another 15-20%. These measures, according to our calculations, will attract about 300 billion tenge revenue for agricultural products in villages.


The state program provides for optimization of subsidies and lending. State support mechanisms will be reviewed. In particular, the main condition for concessional lending will be ensuring sufficient load at processing enterprises. According to the new program, Kazakhstan's machine builders will receive support as well. The Ministry of Agriculture considers building a full-fledged plant for manufacturing of agricultural machinery. The initial agreements with machines and equipment manufacturers from Russia and Belarus have been already concluded.



It is more beneficial to be a domestic manufacturer than just an equipment supplier when it comes to adjustment of VAT charging system with importers. Other questions are actively discussed at the Ministry of Agricuture. We are ready to invite our major partners such as the Ministry of Industry of Belarus to discuss key issues on cooperation in the near future.



All these complaints that are being expressed will be taken into account. We have time until the end of the year to discuss it with all stakeholders and start the implementation of the new program.


The diversification of crop areas will be continued due to the new document which is expected to come into force early next year. Feed production volumes will be also increased and the list of subsidized pesticides will be expanded. Scientists are set to develop technologies relevant to villagers. The Ministry of Agriculture also intends to closely work on introduction of innovations. A group of experts is being already created to generate the best ideas and projects.