Positive grain forecasts in Kazakhstan

ASTANA. February 16. KAZINFORM : Kazakhstan?s Agriculture Minister, Akylbek Kurishbayev, forecasts a positive grain harvest in 2009? ?Weather conditions are expected to be more favorable this year? he said and plans exist to increase areas under crops listed by the Government as priority crops. The Minister announced that in 2008, Kazakhstan?s grain harvest (net weight) reached 15.6 million tons. Export potential for 2009 (based on 2008 figures) is estimated at 6 million tons, he added.

Minister Kurshbayev noted that financing of spring farming works is an urgent issue. ?To facilitate financing, we have set rules? subsidy amounts have been doubled for farmers applying water-saving technology?. KazAgro, the National Agriculture Holding Company, will allocate KZT 130 billion in credit facilities to finance spring farming works. The loans to individual farmers will be extended at 12%. According to the Agriculture Ministry, the total area under crops in Kazakhstan 2008 reached 19.9 million hectares, including 16.2 million hectares under grain (13.6 million hectares of wheat). In 2007 Kazakhstan had a record high grain harvest of over 20.1 million tons (net weight), including 16.6 million tons of wheat ? exporting over 8 million tons. BACKGROUND - Gross agricultural output growth rates in 2008 reached 17%. - Capital investments in the sector grew by 21%, and the monthly average wages by 21.5% - For eleven months of 2008, agricultural produce exports grew by 57% to reach USD 2.9 billion. - Stabilization funds were created accumulating grain, vegetable fat, rice, powdered milk and butter. - Respective memoranda were signed to raise responsibility of businesses in terms of foodstuff supply to the internal market. - Work is under way to create food security belts around Astana and Almaty. - In 2008, financing of social and engineering infrastructure in rural areas [per rural resident] grew by 60%, Kazinform cites press service of the Kazakh Embassy in the UK.