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NCE RK "Atameken" and the Ministry of Agriculture will launch 4 pilot cooperatives in 2016

On 29th of October 2015 the President of Kazakhstan Nursultan Nazarbayev signed the Law "On agricultural cooperatives," which provides the basis for the economic unification of various agricultural producers. In this regard, the National Chamber of Entrepreneurs "Atameken" and the Ministry of Agriculture prepared a joint action plan for the development of agricultural cooperatives. So, until the end of 2016 it is planned to organize activities of 4 pilot cooperatives: in Almaty region (vegetables), in Zhambyl region (milk), North Kazakhstan region (oilseeds), and in Aktobe region (meat).

The Minister of Agriculture Asylzhan Mamytbekov and chairman of the Board of NCE RK Ablay Myrzakhmetov spoke during the meeting about the advantages of cooperation for domestic agricultural producers.

According to Myrzakhmetov, the new law addresses many issues of legal relations of the cooperative members, enabling them to get a decent profit. "I say without exaggeration that the practical implementation of the Act has not only economic but also social and political importance, because it is a way of life of many people. We have a lot of work. Without the joint efforts of local authorities, associations and NCE RK, these problems will not be solved. It can’t be solved by mere administrative pressure, it is necessary to conduct a full-scale outreach in the regions to convey to the ordinary farmers basic principles and benefits of cooperation", - he said.

"In addition to food security, social problems, the problem of competitiveness will be solved. Because it is not profitable for farmers to work in small groups. We joined the WTO, we felt like the union states began to enter our markets", - added the head of the Board of NCE RK.

Mamytbekov, speaking at the meeting, also cited their arguments in favor of the merger. "There are companies that buy milk for 65 tenge. In fact, they use powerless position of milk producers. Although the price of milk has risen. So they get super margin. Therefore, these typical cooperatives are very important. On this basis we need to hold seminars and to show the farmers that the union - is not scary, you have nothing to lose, on the contrary, you will win", - he said.

The minister also said that holding "KazAgro" is ready to develop a special loan product for cooperatives. "Appropriate associations of farmers will get loans under the approved investment subsidies without collateral. The purchased equipment itself or a business will serve as a subject of collateral", - he said.

"We agreed with Asylzhan Sarybaevich that pilot projects will be implemented in the next year. That is, we won’t stretch the implementation of our plan. The law was adopted, the four areas identified. We will get to work immediately in compliance with the plan to show in the autumn the results of the "pilots", - added Ablay Myrzakhmetov.


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