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EXPERTS OF NCE PROPOSED THE PLAN OF DEVELOPMENT OF DOMESTIC AGRICULTURAL INDUSTRY

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Recently it became known that the Roadmap of AIC, which was developed by the National Chamber of Entrepreneurs of the Republic of Kazakhstan was adopted by the Government.

Quite soon domestic farmers will be able to solve their urgent problems and topical issues that prevent them from successful and rapid growth of their business. Over the years, despite the support provided by the state, there are still lots of them. Moreover, today many entrepreneurs, especially those who are engaged in livestock breeding - meat, dairy and poultry products, due to the fall of the Russian ruble experience some difficulties. Due to the fact that the cheaper products of Russian competitors surged the Kazakh market, local farmers face the problem of marketing their products. Food industry entrepreneurs are in a similar situation.

Circumstances had forced them to seek for help at the National Chamber of entrepreneurs. Experts of NCE get signals about the problems of farmers on daily basis and actively seek for the best solutions.

Of course, they cannot be solved without close cooperation with the state, and then in August 2014 the National Chamber of Entrepreneurs organized a meeting to discuss agricultural issues, inviting the First Deputy Prime Minister of Kazakhstan Bakytzhan Sagintayev.

First deputy head of the Government, having listened carefully to the problems of domestic farmers, offered to NCE to develop a road map of agriculture, which would include all the issues of the industry, which described in detail the entrepreneurs themselves. And perhaps it was the right decision, because then, in the best sense of the word "ambitious" document was needed to save domestic farmers, tired of the series of different challenges that they have faced.

The expert of the National Chamber of entrepreneurs Aman Suleimenov, who oversees the livestock sector and, in particular, the poultry industry, was directly involved in the development of the Roadmap of AIC, states that the implementation of the proposed measures will increase the volume of agricultural production for the main product. According to him, Kazakhstan producers need to have the same conditions in which their competitors operate, for example, from Russia.

As said Aman Suleimenov, following a meeting was held "round table" with participation of government agencies and associations, which actively discussed the problems of AIC. "First and foremost, we wanted to cover as much as possible the business in the process, we were inviting to  the meetings of the working group not only industry associations, but also active market players. The meetings of the working groups were also attended by representatives of state bodies, and we discussed all the problems and ways of their solution together. By the way, the discussion revealed new problems of farmers", - said the agricultural expert. According to Suleimenov, with the concurrence of some of the issues, representatives of government agencies often delayed the response.

The result of such "confrontations" between business and government was the truth born in hot dispute, and start of the development of an action plan to address the pressing issues of the subjects of agro-industrial complex, which contains 18 items. That is, the road map that contains the steps that would solve the problem of agrarian business.

So, what exactly is offering this document, which farmers have been waiting for, what would it give to them? "One of the first items that we was included in the Roadmap of AIC was the improvement of the rules of granting subsidies to reimburse expenses incurred by entities of agro-industrial complex during investments", - said the expert of NCE. He stressed that in the priority is retrospective study of subsidizing investment projects, which was introduced earlier in 2014.

According to the representative of NCE, in this regard appeared fundamental disagreements with the Ministry of National Economy of Kazakhstan. It is understandable, there was needed a political decision to obtain additional funding for investment subsidies. A few months was spent for getting a "consent", it didn’t give any result. In the end, the project of Roadmap of AIC got to the table of the First Deputy Prime Minister of Kazakhstan without the consent of NEM on the matter. Meanwhile, experts of NCE say that delay in this case is fraught with consequences.

"Now is the time when agricultural producers have a critical moment. Today the leaders of dairy farms told about theirs problems. For example, one large dairy farm in Kostanai region literally poured out on earth 30 tons of milk, and a high-quality, marketable milk that meets all health standards, which would be allowed in kindergartens, schools and other public institutions",- said Aman Suleimenov.

This happened because the processing plants that were previously purchased milk from them, switched to a dry powder imported from Russia. Accordingly, it is cheaper and easier to produce milk from powder. All farm leaders unanimously incurred huge losses. On average, according to experts, they loose from 750 thousand to 1 million tenge per day. "Now milkmen forced to cut production, which negatively affects the industry as a whole, whereas we have the lowest level of self-sufficiency in milk in EAEU" - said Suleimenov.

Poultry farmers have problems with sales. "On one of the poultry farms in Karaganda recently been the whole warehouse was packed with egg products. "Gray" import comes from the Russian Federation, and no one can guarantee the quality, labelling does not meet the requirements", - complains the expert. Meanwhile, according to NCE, domestic production has all the quality standards, respecting labelling, and all poultry farmers in Kazakhstan are bona fide suppliers.

Now on behalf of the Head of State is held the capaign to support domestic producers "Buy in Kazakhstan!". But, according to NCE, these activities are slow and signed with Akimats memoranda on the sale of the national products don’t give the desired effect.

How to domestic help agricultural producers in the current situation? Aman Suleimenov is sure that it will help to spread the existing rules of investment subsidies for projects introduced before 2014, but it is necessary to allocate additional funds from the state budget. In his opinion, it is a quality state tool, which is used in many European countries.

"We have studied the experience of Germany and other advanced agricultural countries, namely livestock industry, where investment subsidies are being applied. What is it? Suppose the entrepreneur built a dairy farm with 600 units of kettle, spending for this purpose a certain amount of time. After some time, the farmer will work at full capacity, and the state will reimburse up to 20 percent of the costs for businesses, for some items the amount of compensation will be up to 80 percent", - said Aman Suleimenov.

According to him, it's pretty substantial assistance, a good foundation for further business expansion.

"The state gives money to a businessmen not just to buy a villa somewhere in Spain, but these funds are intended for the purchase of additional equipment, livestock, improvement of the technological line of production", - he explained.

The current rules of granting subsidies are intended for the projects, which were launched as of beginning of 2014. Meanwhile, says Aman Suleimenov, livestock breeding is very heavy business. In Kazakhstan there are entrepreneurs who in recent years have shown their worth by producing high-quality and natural products.

According to the expert of NCE, retrospective subsidizing of investment projects will help to increase production, reduce credit load. Entrepreneurs engaged in the production of livestock products, now face problems of implementation, in one voice they declare that this situation will help them. "Also on investment subsidies we offer to lower the threshold of investment subsidies, further include areas of agrarian business, which not included in the current list of priority areas", - states the expert.

In addition to other activities, the Roadmap proposed to revise the existing standards of subsidies in areas such as the production of milk, meat, poultry, eggs.

"Automation of submission of applications on agricultural subsidies, consideration of combinations of basic types of subsidies in crop production in one, as will be discussed in the framework of implementation of the Roadmap",  - summed Suleimenov.

Total road map includes 18 items and a few paragraphs, the execution of which is entrusted to a number of ministries and NCE.

Karlygash ZHUSUPBEKOVA

 

 


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