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Cooperation helps farmers to survive

- East-Kazakhstan Region
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125 agricultural cooperatives were registered since the beginning of 2016 at the east of the country
Since 1st of January 2016 came into force the laws "On agricultural cooperatives" and "On amendments and additions to some legislative acts concerning agricultural co-operatives".

The essence of cooperation is that a special tax regime and a number of other preferences will be applied to them.
The merger into cooperatives allows small farmers to obtain the necessary financial assistance from the state, to borrow loans from banks, as well as to get equipment in lease.

"Every day farmers face many problems, which it is hard to solve alone. And here in the first place, it is failure and sometimes complete lack of collateral base among small farms, because of which many farmers are experiencing difficulties in obtaining financial resources", - said Head of Agribusiness Division of the Chamber of entrepreneurs Kairat Mamyrbayev.
The lack of credit resources, in turn, gives rise to other problems for business in rural areas – it is weak technical equipment and small-scale production. In such cases, good help for farmers is to unite in cooperatives.

But there are administrative barriers.


Thus, to identify the practical problems of agricultural cooperatives, the Chamber analyzed cooperatives established in 2016.
Problems of taxation, subsidies, funding of agricultural co-operatives are very crucial.

 It turned out that in every district the State Revenue Department interpreted the provision on taxation of agricultural cooperatives its own way, as a result many farms raised the question: Do we need cooperation?
'Small-scale of production leads to problems with sales, procurement of material and technical resources, access to funding, veterinary safety, a stable source of raw materials, etc. All these affects the quality and competitiveness of their products", - said Kairat Mamyrbayev.

According to international experience, the main solution to the problem is the development of small-scale agricultural cooperation. Thus, the adoption of the new law "On agricultural cooperatives" aims to solve the above mentioned problems, rather than to create new ones.
It is worth noting that the first marketing cooperative was created in EKR, which included more than 1,000 small beekeepers from different regions of the country.


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