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Direction of agribusiness development

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The agro-industrial complex is the driver of third modernization


"For me, as for the head of the organization, contributing to the consolidation of the business community, it is encouraging that the Address is focused on the development of entrepreneurship, and, most significantly, AIC, which is one of the most important sectors of the economy, forming the economic and food security of the country. The agro-industrial complex is the driver of the third modernization", - said the director of the branch of the Chamber in Irtysh district Erlan Zhetpisov.

According to him, today it is necessary to make every effort for the development of the agricultural sector. The new program of development of agro-industrial complex is quite encouraging. Its main priorities will be the saturation of the domestic market and the development of export potential of the domestic product, the maximum involvement of small and medium-sized farms in the agricultural production cooperatives, the efficient use of water resources and the development of trade and logistics infrastructure.

Taking the direction of the development of agriculture, principles of distribution of subsidies will be revised and the gradual transition to the insurance of production, instead of covering the cost factors. After all, experience has shown that the existing conditions and subsidy mechanisms do not give us the desired effect. The effectiveness of the financial state support measures will be enhanced. For its achievement it is planned to introduce significant changes in the existing system of subsidizing agribusiness entities. For example, currently 67 thousand beneficiaries receive state support in the form of subsidies. Thus 7 tenge of produced agricultural products account for 1 tenge of subsidies.

In this context 6 kinds of inefficient subsidies will be eliminated from the existing 56 types of subsidies and the criteria for 34 types of subsidies will be changed. It is planned to increase the number of recipients of subsidies from 67 thousand to 500 thousand by 2021. Thus,13 tenge of agricultural products will account for 1 tenge of subsidies.

Changes in crop subsidies are aimed at encouraging the introduction of new technologies, purchase of high-performance agricultural machinery and equipment, i.e. factors directly affecting yield increase, quality and its production cost, respectively, to achieve the maximum effect from the production.

Another good measure is to shift from large farms to support of multiple farms on the basis of cooperation. In general, the emphasis in agriculture state support will be revised from large agro-formations to support of small and medium-sized enterprises, through their cooperation. Today, half of the gross product of agriculture is made the forces of private farms. Their income is limited by the lack of opportunities for primary processing, storage and marketing of its products, as well as by virtue of their small-scale. In addition, they often have no access to state support measures. These issues will be addressed through the accelerated development of cooperatives in rural areas.

The good effect will be achieved through increase of the degree of product processing, technological equipment of the industry, as well as the adjustment of the collection, storage, transportation and marketing of goods. At present, 70-80% of milk and meat are produced by private farms. However, the volume of animal products does not fall in the processing due to the unresolved issues of procurement and marketing of products, as a result processing plants are loaded only to 60% (milk from 35 to 60%, meat by 10 to 60%). In this context, the key point is to bring together smallholders in agricultural cooperatives for centralized organization of production and marketing of agricultural products through the creation of a network of points of milk collection, as well as the establishment of family feedlots.

To ensure the access of agricultural cooperatives to the retail space, assistance will be provided through creation of a network of wholesale and distribution centers in all major cities of the country. They will consist of warehouses, pavilions and other facilities for the wholesale trade of agricultural products, at which will be generated manufacturing operations for the storage, packaging, marketing and transportation of agricultural and food products

 


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