New suppliers receive only 10% of quotas in poultry meat market of Kazakhstan

APDC has identified systemic problems in the poultry meat market. The analysis revealed that the distribution of tariff quotas in this market remains uneven: 90% of quotas are received by historical suppliers, while new participants receive only 10%. This restricts competition and prevents the emergence of new market participants.

Despite a 12% increase in chicken meat production in 2023, domestic consumption needs are being met by 66% own production. Import dependence remains at the level of 34%. The main reason for this situation remains the high cost of production, where 68% is formed by feed, subject to fluctuations in prices for imported components. In addition, delays in subsidies are an additional obstacle for producers, which negatively affects their financial stability and the ability to expand production.

According to the results of the analysis, notices of abuse of a dominant position were sent to wholesale suppliers in the East Kazakhstan region and the Ulytau region, including restrictions on the resale of goods on a territorial basis and the use of different prices. According to the revealed facts of excess of trade surcharges reaching more than 15%, which directly affect the price increase for consumers, appeals were sent to the regional departments of the Ministry of Trade and Integration of Kazakhstan on the facts of excess of trade surcharges in Astana and Mangystau region, the Agency noted.

Based on the results of the APDC analysis, recommendations were made to the authorised bodies for taking systemic measures to promote competition. These include automating the processes of notification of subsidies, reviewing the criteria for their distribution, eliminating discrimination against market participants, and strengthening control over compliance with deadlines for government support measures.

By Dinara Zhusupbekova for Kazinform.