Kazakhstan: government plans on spending 33 billion euros on implementation of national agro-industrial project
By 2028 the Kazakh government plans to double the volume of gross agricultural output to 33 billion euros, which is stated in the draft government resolution on the approval of the national project for the development of the agro-industrial complex. The project, which is called the "Strong Agro-Industrial Complex", will last from 2024 until 2028.
The document was developed by the Ministry of Agriculture and will be available for public discussion on the Open Legal Entities portal until May 10, 2024. “To increase gross output in agriculture to 33 billion euro's, it is necessary to ensure compliance with all agrotechnological work, increase the level of renewal of agricultural equipment and implement priority investment projects. State support is also provided in the form of preferential lending and subsidies. In the context of climate change, the primary task will be the transition to sustainable agriculture with an emphasis on environmental protection,” the draft resolution notes.
When implementing the national project, it is planned to:
· Annually update agricultural machinery up to 8-10%.
· Increase labour productivity by two times, to 18.900 euro.
· Double the export of agricultural products to 8.9 billion euro.
· Increase the influx of investment in agriculture by 3.3 times up to 6.7 billion euro.
· Increase the share of processed agricultural products milk, meat, oilseeds, rice, corn, buckwheat up to 70%.
The implementation of the national project “Strong Agro-Industrial Complex for 2024-2028” will require 33 billion euro. “Including repayable funds in the amount of 22 billion euro or about 67% of the total financing,” the draft resolution says. It is planned to allocate 19.8 billion euro from the national budget for the implementation of the national project, 5 billion euro from the local budget, and extra-budgetary funds will amount to more than 8 billion euro. “In 2024, 4 billion euro will be required, in 2025 7.6 billion, in 2026 7.8 billion, in 2027 at 8.2 billion, in 2028 5.3 billion,” the draft resolution specifies.
The following tasks are set within the framework of the national project.
1. Accelerated diversification of the structure of crop areas and stimulation of the introduction of agricultural technologies.
To achieve this task, it is necessary: accelerated diversification of the structure of crop areas: transition to highly profitable crops (oilseeds, corn, fodder) and reduction of moisture-intensive crops; stimulating the introduction of agricultural technologies: provision of quality seeds in the amount of 2.5 million tonnes; increasing the volume of fertiliser application to 3.2 million tonnes; intensive renewal of agricultural machinery up to 8-10% on-year; introduction of water-saving technologies on an area of at least 150 thousand hectares per year.
It is indicated that in order to implement these measures, it is necessary to resolve issues with ensuring financing of the industry, including through the provision of preferential loans (with an interest rate of no more than 5% per annum) for spring field and harvesting work (for the purchase of seeds, fertilisers, pesticides, fuels and lubricants) and financing the forward purchase of agricultural products in the amount of at least 3.2 billion euro annually. It is also planned to provide agricultural machinery on preferential leasing in the amount of at least 945 million euro annually, with a rate of no more than 5% per annum.
2. Implementation of priority investment projects in the agro-industrial complex.
To increase the export potential of the agricultural sector, import substitution and saturate the domestic market with certain types of socially important food products, as well as increase the incomes of the rural population by creating permanent jobs, it is necessary to implement investment projects in the agricultural sector in the following areas:
· Production of poultry meat with an additional capacity of 255.3 thousand tonnes, which will fully supply the domestic market with these products;
· Milk production with an additional capacity of 612.0 thousand tonnes, which will increase the utilisation of processing enterprises to 85%;
· Production of vegetables in greenhouses 142.4 thousand tonnes, which will reduce imports by 13%;
· Creation of storage infrastructure for 980 thousand tonnes, which will provide the domestic market with domestic products during the off-season;
· Irrigation projects, where water-saving technologies have been introduced on 1,062.2 thousand hectares, which will provide savings of 2.5 billion cubic metres. metres of water and so on.
In general, in order to fulfil the instructions of the head of state to double the gross agricultural output, as well as the objectives of this national project, it is planned to: double the volume of state support for the agricultural sector; provide preferential loans to farmers for spring field and harvesting work in the amount of at least 3.2 billon euro annually; increase annual preferential leasing to 945 million euro to finance the purchase of agricultural machinery, equipment for updating agricultural machinery at the level of 8-10% on-year and financing of investment projects in the amount of 1.7 billion euro annually, including the replication of the experience of the North Kazakhstan region at least 840 million euro.
Source: www.kaptial.kz