Timur Kulibayev: Kazakhstan should consider import substitution of food as a component of economic security
Chairman of the Atameken Presidium Timur Kulibayev has expressed this opinion at the working meeting of the Committee of Agroindustrial Complex (the AIC Committee).
The head of the Atameken NCE RK noted that a high proportion of imports affects the rise in food prices.
“We are highly susceptible to import inflation. Prices on the food market imported into a country instantly react to fluctuations in the tenge exchange rate, which in turn affects inflation. To ensure the industrial and economic security of the country, it is necessary to develop domestic food production, taking into account potential import substitution niches,” Timur Kulibayev said.
Statistics for the last three years show an increase in the price of imported goods by almost a third, these are sugar, butter, cheese, etc.
According to official data, in 2018, the share of imports rose from 3.4 billion USD to 3.6 billion USD. At the same time, as the meeting participants noted, Kazakhstani farmers can reduce imports for a billion dollars by supplying domestic products such as milk and dairy products, poultry meat, eggs, etc. to the market.
However, although having potential of the Agro-industrial complex there are a number of constraining factors in Kazakhstan. For example, since the introduction of the subsidy system in the early 2000s it has not yielded the expected growth in production figures. The reason is the low incentive component of subsidies. At the same time, most of the state support is received by large and medium-sized enterprises. The task for the Atameken NCE RK is to create equal conditions for small enterprises and cooperatives with the support of the AIC Committee. The government support should motivate farmers to efficiently produce and introduce new technologies.
The head of the Atameken Presidium is sure that the AIC should be on the list of the main directions of the country's development. It is important to take into account the full range of support measures to achieve real results from personnel issues and employment to subsidies and integration of science into the sphere of agriculture.
“It is necessary to ensure the employment of the rural population, which is almost half of the people of Kazakhstan, villagers should have year-round work with a permanent salary. Employment in the countryside is generated by agriculture and SME services. They are processing and selling goods and services to the neighboring districts and regions. The economic study, which is currently underway, will reveal key niches and opportunities for new industries and services. The enterprises for the deep processing of agricultural raw materials can play an important role here. It is necessary to carry out comprehensive work on the development of supporting villages with all the necessary social infrastructure: roads, hospitals, schools, sports complexes, and so on. It is necessary to raise the level of rural life so that the villagers feel comfortable. Young specialists, agronomists, veterinarians, engineers and machine operators return to the villages and work there. The local authorities should provide them with housing, loans for improvement, create conditions,” he said.
He also spoke in favor of reviving the former experience of agronomy in Kazakhstan. Kazakhstani science requires a cardinal reset due to the fact that scientific institutes and universities do not give adequate results. First of all, it is necessary to finance both from the state budget and other sources to increase the efficiency of the work of experimental farms in testing and adapting new varieties and technologies to achieve maximum performance.
The experience of other countries with developed agriculture will be useful for Kazakhstan, as well as investments from outside. For example, the Kazakh-German Business Council has credit resources that can be directed to projects for the deep processing of grain. Attracting German investments will provide best practices, technology and marketing of agricultural products in the EU.
Timur Kulibayev instructed the AIC Committee to discuss all proposals for resolving problematic issues with all associations, work out a consolidated position for further discussion at the level of the competent authorities and Government.
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