Government 2008 review: agricultural industry

ASTANA. January 9. KAZINFORM. What were the main priorities in Government?s activity in 2008? What are the main indices of social and economic development of the country in this period? Kazinform offers its readers referral information on agricultural industry.

Agro industrial complex of Kazakhstan is characterized by dynamic and stable development, which guarantees the food safety of the state and is the main factor of stability of domestic food market of the country. In the expired year the annual production of agricultural products is estimated at KZT 1,3 bln, the share of agricultural production in the gross domestic product of the country ? approximately 6%. Crop farming is steadily developing. Due to measures taken to diversify agriculture, in 2008 the areas of crops were enlarged by 5,1%, oil-bearing crops by 35 %, vegetables and fruits by 17 %, sugar beet ? by 39%, which creates good basis for further increase of the export potential of the industry and saturation of domestic food market. Stable temps of development are preserved in cattle-breeding industry too. Here the average annual temps of growth of the cattle head count are about 5-7%. As of December 1 2008 in comparison with the same date of the previous year number of cattle increased by 2,8%, sheep and goats? by 5,0%, pigs ? by 1,0%, horses ? by 6,0% , camels? by 3,4%, poultry ? by 10,5%. A similar trend is observed in the output of livestock products. Processing of agricultural products increases every year. Due to measures provided by the state for subsidizing the rates interest over the banks lending and leasing companies, new technologies are being introduced, increasing the share of agricultural processing and expanding the range of products. In 2008, considering the situation on the world food market, the issue of providing the food safety has become one of the key issues in economic and social life of all countries. In order to prevent the slowdown in the development of the industry, curb inflation and saturate domestic market in food and on that basis to ensure the stability of the standard of living, the Government of the Republic of Kazakhstan took a number of systemic and operational measures, which resulted in the current stable situation in the domestic food market. Ensuring food security of the country, increasing the production of the crops, that do not fully meet the needs of the domestic market. Significant role in meeting the needs of domestic market in food played stabilization funds for socially important kinds of the food. In particular, they were established for wheat, rice, vegetable oil, dry milk, meat, and butter and used to stabilize the situation in the food market. In December 19, 2008 there was made purchases to the government resources in the amount of 420.6 thousand tons, including through the spring and summer financing - 270.9 thousand tons, by the autumn procurement - 149,7 thousand tons. Besides, to solve the issues of stabilizing the domestic market of grain purchases were planed up to 600,0 thousand tons into stabilization resources. As of December 19 2008 579,6 thousand tons of grain was purchased. In order to saturate the domestic market with vegetable oil, the Government introduced temporary prohibition for export of sunflower seeds, soybeans, seeds of rape and oil thereof until April 1 2009, as well as the zero rate of the customs fee for the import of vegetable oil. Besides the Kazakh Government took a decision to prohibit the export of dry milk until January 1 2009. JSC ?NC ?Food Contract Corporation? within the frame of development of fruit and vegetable cluster in the southern region has started to implement the project ?Development of fruits and vegetables with technologies of drop irrigation in the South-Kazakhstan region?. In 2008 the measures were taken to restore the idle storages and greeneries and to construct the new ones. Until the end 2009 at the expense of assets of JSC ?National Holding ?KazAgro? 10 constructions with capacity of storing 34,9 thousands tones are planned to be commissioned. Import fees for socially important food products (sausage products, fish, milk and cream, butter, cheese and curd, margarine, potato, watermelons, fruits and berries) are lowered or completely banned. The work on creating the food belt around Astana is actively being done. In general in subsidiaries of JSC NH KazAgro? 58 projects were approved at the amount of over KZT 13,8 bln. The same work has started in Almaty. In future, taking into account Astana and Almaty experience such food belts are planned to be created around all regional centers of Kazakhstan.