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A potential threat for the export of animal products of Kazakhstan

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Recently, the question concerning the abolition of veterinary control at the Kazakh-Kyrgyz border is actively being discussed in the Kyrgyz media.

In this regard, we asked the Deputy Chairman of NCE RK "Atameken" Dana Zhunusova to comment on the situation on the interaction of the Kazakh and Kyrgyz sides in the veterinary safety issue within the EAEU:

-Since the issue in recent years, in fact, gains a certain resonance in the media, especially on the part of our Kyrgyz neighbors, I would like to clarify the issue.

To a greater extent this applies to the continuing veterinary control of the Kazakhstani veterinary service at the Kazakh-Kyrgyz border.

There is no point to deny, that is a need to explain the objectivity of such a decision by the national competent authorities, guided, first and foremost, by the duty to ensure the veterinary safety of the country and, accordingly, the development of domestic livestock.

First of all, I want to stress that Kazakhstan - is an agrarian country, with historical nomadic culture, the main measure of well-being of which is a big herd.

In turn, for the business, which is engaged in breeding, cultivation, livestock breeding, it is quite important to sell it at foreign markets. Therefore, perhaps the defining criterion of export potential in this matter should be good veterinary situation of the country as a whole.

I think, there is no need to have special knowledge to understand that in practice the situation is as follows: if a very dangerous disease of the animal is detected, all animals are slaughtered, sick and ones in contact with them, and in the region, where the disease was registered, quarantine is declared or restrictions are imposed. That is, farmers are deprived of the opportunity to export their products outside.

On the macro-regional level, to carry out appropriate measures to eliminate the infection outbreak, according to the requirements of the Office International des Epizooties (OIE), the entire country can be closed.

In this regard, the National Chamber of Entrepreneurs "Atameken", on behalf of the domestic business, insists on the need to comply with all the veterinary requirements for the Kyrgyz products, exclusively for their own safety.

- What issues of veterinary cooperation have been regulated in the framework of the Treaty on the Eurasian Economic Union?

- For a proper understanding of the situation, it is necessary to note the fact that the Kyrgyz Republic has expressed a desire to accede to the Union after the signing of the EAEU Treaty between Russia, Belarus and Kazakhstan.

The legal basis for accession of Kyrgyzstan was the decision of the Supreme Eurasian Economic Council dated by 29th of May 2014 "About the plan of activities ("Roadmap ") on accession of the Kyrgyz Republic to the Customs Union of Belarus, Kazakhstan and the Russian Federation" number 74 and "the Treaty of Accession of the Kyrgyz Republic to the Treaty on the Eurasian economic Union dated by 29th of May 2014 ".

As part of these documents, there has been envisaged a number of activities, the implementation of which by the Kyrgyz side will serve as the basis for removal of veterinary control between the countries - participants of the Union in relation to the Kyrgyz Republic, guaranteeing the safety of this step.

I would like to note that, according to the EAEU Treaty, the decision to withdraw veterinary control is adopted by all Member States of the EAEU, and the matter can’t be resolved bilaterally. That is “non removal" of the control on the Kazakh-Kyrgyz border is not an exclusive requirement of the national veterinary service.

In 2015-2016, veterinarians from countries of the Union and representatives of the Eurasian Economic Commission visited to inspect the enterprises in Kyrgyzstan, producing products of animal origin.

As a result of inspections, there was revealed a number of significant violations of the requirements and regulations of the Eurasian Economic Union in the veterinary field, which, in turn, can carry significant risks, both in terms of the possibility of importation of infectious animal diseases, and from the point of view of health hazards for the population of EAEU member states.

As far as I know, the Kazakh side has repeatedly appealed to Kyrgyz colleagues with proposals for consultation, to contribute to the elimination of violations.

In addition, we can’t forget that in the conditions of free movement of goods through the territory of the Member States of the Union, we have a responsibility to our partners.

Let me remind you also that not so long ago, along the border of the Kazakh-Russian were established pints of preliminary notification for control of movement of goods, subject to phyto-sanitary control. This measure was dictated, in particular, due to the identification of contaminated fruits and vegetables resulting from Kyrgyzstan, going through Kazakhstan to EAEU countries.

I would also like note that livestock production situation is complicated by the need not only to destroy the entire population, but also the closure of the territory, depending on the level of risk for an indefinite period.

Therefore, the business of Kazakhstan is concerned about the withdrawal of veterinary control without obtaining positive results of the audit (assessment) of the system of veterinary-sanitary control (supervision) of the Kyrgyz Republic, conducted jointly by the Member States of EAEU.

-  What consequences can the abolition of veterinary controls at the Kazakh-Kyrgyz border have for the domestic business today?

- Currently, the republic has set a clear policy of increasing the existing stock, increasing livestock production and the expansion of geography of national exports.

Thus, according to official statistics, as of 1st of January 2016, the number of cattle in Kazakhstan in 2015 amounted to more than 6.1 million heads, and export of meat and meat products has exceeded 12.6 thousand tons, which is financially equivalent to 23.2 million US dollars.

The Government is fully focused on the support of domestic livestock enterprises. This is evidenced by a number of ongoing state support programs, such as "Agribusiness-2020", "A program of lending for agribusiness entities for the purchase of cattle breeding stock ("Sybaga"), "The lending program for the purchase of small ruminants ("Altyn asyk" ) "and others. At the same time, significant state funds are allocated for the development of this direction. For example, around 3 393.2 billion tenge were allocated for the implementation of the program "Agribusiness - 2020" in the years 2013-2020.

In addition, much attention is paid to the processing of livestock products. Thus, according to the Ministry of Agriculture, between 2010 and 2015, the level of subsidization of livestock production and processing increased from 15.7 million tenge in 2010 to 71.6 million tenge in 2015.

All this is reflected in the increase in breeding stock in the total herd, which grew twice since 2010, exports of domestic livestock production, also has a positive dynamics of growth - exports of meat and meat products, which was 2498 tons in 2010, in 2015 reached 16 134 tons, and exports of milk and dairy products increased from 31 thousand tons to 105 thousand tons.

The risk of bringing in the hazardous animal diseases is directly related to the reputation of the republic in the eyes of the importers of domestic livestock production, and loss of its exports (in the case of entry of dangerous animal diseases). It will be rather palpable for Kazakh entrepreneurs and for the economy as a whole.

Along with this, in the case of bringing in particularly dangerous animal diseases from the territory of the Kyrgyz Republic, Kazakhstan will not only lose the existing status of well-being, but will be forced in the next 24 months to stabilize the veterinary situation in the country, and then be able to apply to the OIE in order to restore the status. In practice, this means there will be no export of animal products about three years outside of Kazakhstan.

In addition, I remind you that last year, Kazakhstan has become a member of the World Trade Organization and now must comply with international requirements and standards of the OIE.

Currently, Kazakhstan has received FMD zone status without vaccination for 9 regions, that is the first step towards the export of animal products export to WTO countries has been done.

In case of bringing in of dangerous animal diseases at this stage of development of Kazakhstan, as a WTO member, the country will lose the reputation of safe and at the same time, business will not be able to push the boundaries and markets for their products.

Summing up, I want to note that by creating a Eurasian Union, we expect both fair competition and on observation of the balance of the interests of the Parties. However, we understand that the economies are directly linked to business activity, one task is to create a favorable and safe business environment.

In addition, it is necessary to remember that a fundamental principle of the Union is a consensus that calls for a joint decision on the removal of veterinary inspection for all EAEU countries, taking into account the implementation of agreed measures and compliance with statutory requirements by the Kyrgyz side.

 


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