Food industry

food industry-1

The total area of agricultural land in Kazakhstan is 215.6 mln ha, of which 24.6 mln ha (11.2%) are horticultural land, hayfields – 4.8 mln ha (2.2%), pastures – 182, 1 mln ha (84.8%). More than 74% of the country’s territory is suitable for agricultural production, but only 25% of the land is arable.

Agriculture accounts for approximately 6% of Kazakhstan’s economic production.

Farmers raise sheep and cattle, and livestock products include dairy goods, leather, meat, and wool.  The country’s major crops are wheat, barley, cotton, and rice, with wheat exports a major source of hard currency.  Kazakhstan is one of the top 10 grain exporters in the world, exporting to over 70 countries. The International Grains Council (IGC) forecasts wheat production in Kazakhstan for 2016-17 as 13.5 million tons.

STRATEGIC PLANS

According to the data of the Ministry of agriculture of Kazakhstan, the year 2016 has become one of the most successful for the country’s agricultural sector. The growth in agricultural production amounted to 5.5%. Gross harvest of grain amounted to 23.7 mln t, which is 4 mln t more than last year. The harvest of vegetable and melon grew by half a million t and reached the level of 5.8 mln t. At the same time, production of plant growing increased by 7.8%, livestock – by 2.7%, food – by 4%. Investments in fixed assets increased 1.5 times, Imports decreased by 13%. Export of grain amounted to 8.6 million tons, or 21% more than in 2015.

Recognizing the key role of foreign investment in the expansion and modernization of the agribusiness, the Government of Kazakhstan pays great attention to the development of the agricultural sector and has chosen the production of export-oriented products as a key strategy, including the production of meat and wheat. The government also takes measures to assist local producers to implement international quality standards.

The long-term development goals of the Kazakh agribusiness are defined in the Kazakhstan-2050 Strategy and in the Strategic Development Plan of the Republic of Kazakhstan 2020. These strategic documents for the agribusiness sector point out to the following key development indicators:

  • by 2020, labor productivity in the agribusiness should be increased by at least 4 times;
  • the yield of wheat is planned to be 1.4 tons per hectare;
  • the share of domestic production of food products would attain 80%.
  • the training of specialists in agriculture,
  • the search for effective world technologies,
  • renewal of the agricultural machinery,
  • increasing the efficiency of land use and increasing the area of irrigated land, and watering pastures.

The implementation of the strategies for 8 years provides investments of more than 3 trln KZT, which is expected to attract more than 10 trln KZT of private investments into the industry.

TRADE

The competitive location of Kazakhstan between Asia, Europe and the Middle East opens access to emerging markets like Russia, China and India, as well as countries of the Eurasian Economic Union  with a total population of about 170 mln people.

Accession of Kazakhstan to the WTO in 2015 imposes the country to perform certain obligations. The legal basis for the assumption of the obligations in agriculture commitments is the WTO Agreement on Agriculture.

INVESTMENT OPPORTUNITIES

  • Halal sector
  • Agricultural equipment
  • Assembling of agricultural machinery
  • Fodder production
  • Dairy Farms
  • Poultry farms
  • Greenhouses
  • Vegetables growing
  • Irrigation systems
  • Feedlot platforms
  • Grain processing
  • Meat processing plants
  • Breeding farms (reproducers)
  • Production and processing of fine wool
  • Production and processing of leather
  • Fisheries development
  • Processing of fruits and vegetables
  • Trade and logistics complex
  • Production and processing of oilseeds
  • Growing of cereals

WEB RESOURCES

COLLABORATE WITH US IN KAZAKHSTAN

15 benefits of initiating a licensing program in a food industry