Expert: Without an investor or government assistance, farmers will not be able to build a multifarious farm themselves

NUR-SULTAN. KAZINFORM - There is a milk shortage of about 2 million tons per year in Kazakhstan. To eliminate it, it is necessary to implement new dairy farm projects (MCF), and farmers will not be able to do this without credit support from state development institutions and government subsidies. This opinion was expressed by the Deputy Chairman of the Board of the Association of Farmers of Kazakhstan Ermek Abuov, reports MIA Kazinform.

The shortage of milk, according to the deputy head of the Farmers Association, persists at the current level of production - about 6 million tons per year.

“According to the Ministry of Agriculture, it is planned to build 25 large dairy farms annually. This gives an increase in production of 150 thousand tons per year. But the deficit will continue to grow: the population is growing, and with it demand,” says Abuov.

To cope with the deficit, he says, it is necessary to increase milk production through the construction of MTF. But it will be difficult to do this without government support.

“Dairy farming has a continuous cycle of work and high costs. Nowadays they are building multi-farm farms from 400 heads of livestock and above. But without an investor and the help of state development institutions from the KazAgro group, the business will not be able to build this on its own. Projects cost billions – who has that kind of money?” - says the speaker.

According to Ranking.kz, investments in the agricultural industry have been growing by an average of 26.8% per year over the past 5 years. An important role in this is played by Agricultural Credit Corporation JSC (ACC), a subsidiary of KazAgro NMH JSC. In 2020 alone, ACC financed 48 investment projects worth 41.6 billion tenge. Of these, 15 are MTF projects worth over 12.7 billion tenge.

Ermek Abuov notes that these projects have a long payback period - from 7 years and above. Therefore, loans with low interest rates are needed so that loans do not become a burden for farmers. ACC, by the way, has a loan rate starting at 1.5% per annum for some programs.

Financial support for farms engaged in dairy farming will result in the provision of a domestic market with access to export.

The construction of the MTF helps improve life in rural areas. According to Abuov, it is dairy farming that makes it possible to provide villagers with employment all year round. People are busy 365 days a year because cows need to be milked, fed and generally cared for every day.

“Why are young people leaving? Because there is no work. Farms that engage in dairy farming keep people busy all year round. There is no outflow of population, the infrastructure is developing,” adds the deputy head of the association.

https://www.inform.kz/ru/ekspert-bez-investora-pomoschi-gosudarstva-fermery-ne-smogut-sami-postroit-...