Kazakhstan is increasing exports of agricultural products and plans to increase production of agricultural machinery
16.11.2024 18:43:55 2187
In order to replace imports and increase competitive advantages in Kazakhstan, effective measures are being taken to develop the agricultural sector. The volume of concessional financing of the agro-industrial complex is increasing, the subsidy system is being reformed, production and leasing of agricultural machinery are growing. All this is yielding results, and today Kazakhstan is not only striving to meet domestic needs, but also increasing exports of agricultural products.
The growth of agricultural exports
According to JSC NC Kazakhstan Temir Zholy (KTZ), Kazakhstan has recorded an increase in grain exports since the beginning of this year, while new directions of transportation are being developed. In particular, there has been a multiple increase in shipments of barley, lentils and corn.
"Kazakh barley has started to be imported by Iran again with an eight-fold increase in the last two months. In 10 months, the export transportation of barley amounted to 710 thousand tons with an increase of 69%," the KTZ press service reported.
The export of corn grain has increased 1.5 times this year and amounted to 117 thousand tons. Transportation to Tajikistan increased by 38%, to Uzbekistan – by more than 3 times. Also this year, transportation of corn grain to Iran has begun.
Lentil exports increased sevenfold, reaching 80 thousand tons, with most of them coming from European countries.
According to KTZ, transportation of peas has tripled. Imports from Kazakhstan to Afghanistan have doubled, and to Uzbekistan – three times. Rice producers also increased exports by +47% (52 thousand tons) with the development of new markets in Azerbaijan and Belarus.
In addition, in the 2024/25 marketing year, Kazakhstan intends to break the record for the export of fat and oil products to China, reaching $250 million.
According to the Chairman of the Board of the National Association of Oilseed Processors (NAPMC) Yadykara Ibragimov, one of the factors contributing to the growth of exports was the opening of the Chinese market for high-protein feed produced in Kazakhstan, for which Chinese buyers offer a high price. Kazakhstan's creameries have already signed contracts worth $56 million at the Chinese International Import Exhibition, which was held in Shanghai. According to Yadykar Ibragimov, this year 12 creameries present Kazakh oil and fat products in Shanghai.
Today, China is the leader in the import of Kazakh fat and oil products in monetary terms. The Chairman of the Board of the National Association of Oilseed Processors emphasizes the importance of support from the relevant ministries — the Ministry of Trade and Integration of the Republic of Kazakhstan and the Ministry of Agriculture of the Republic of Kazakhstan, which facilitated the prompt inclusion of 24 Kazakh creameries in the register of Chinese customs. An important aspect is also the coordinated work with JSC NC Kazakhstan Temir Zholy on the uniform distribution of monthly export volumes of vegetable oils. Oil processors plan to reach the volume of exports of vegetable oils and meal/cake to China at the level of $300 million in two years.
Kazakhstan's participation in CIIE-2024 was an important step in expanding the export of fat and oil products to the Chinese market and strengthening the country's trading position in Asia.
The export potential of agriculture in Kazakhstan is quite large, due to its proximity to major markets: China, Russia, Iran, Uzbekistan, Afghanistan, as well as the countries of the Persian Gulf.
Support measures for the renewal of the agricultural machinery fleet
According to the Union of Industrial Investors, the annual volume of agricultural machinery production in Kazakhstan is 263 billion tenge, and it is projected to grow to 300 billion tenge in 2025. Tractors and combine harvesters are produced in the agricultural machinery industry at 8 enterprises, which already fully meet the annual demand of farmers for this equipment. More than 20 enterprises produce trailed and mounted agricultural machinery and equipment, reducing dependence on imports. To date, welding, cutting, cutting, bending and painting operations are performed for each model of tractors, combines, as well as for mounted and trailed agricultural machinery. Ahead of schedule, welding and painting of tractor cabins have been mastered, as well as the manufacture of plastic parts of the body elements of energy-saturated tractors. Next year, manufacturers plan to master operations for the manufacture of grain bins, inclined chambers, shredders and combine booths. The country's largest localization center for agricultural machinery in Kostanay annually produces 25 thousand units of assemblies, aggregates, components and spare parts for agricultural machinery and the automotive industry.
The decision to subsidize farmers when purchasing domestic agricultural machinery this year is already having an effect: leading foreign manufacturers are showing interest in our market. Thus, according to the Ministry of Agriculture, the world-famous John Deere company plans to expand its local presence in Kazakhstan through assembly cooperation.
Deere & The Company, Eurasia Group and Baiterek Holding have signed a memorandum aimed at expanding John Deere's local presence in Kazakhstan through assembly cooperation. This strategic partnership is designed to stimulate innovation, strengthen local production capacities, contribute to the sustainable economic growth of the country and will focus on the introduction of advanced technologies, digital transformation and efficiency improvement in agriculture and industry in Kazakhstan, the Ministry of Agriculture stressed.
"By using advanced technologies and supporting knowledge sharing, we are laying the foundation for sustainable growth that will benefit both the economy and the local population," said John Deere President of Agriculture and Lawn Coverings in the CIS and Central Asia, Chaba Leiko.
Eurasia Group is the official dealer of John Deere equipment in Kazakhstan.
It should be noted that the following programs have been implemented this year as part of the measures taken by the Ministry of Agriculture to update the agricultural machinery fleet:
1. new mechanisms for subsidizing agricultural machinery have been adopted:
- as part of the implementation of the investment subsidy program, the possibility of subsidizing imported analogues of equipment, the production of which is established in Kazakhstan, is excluded;
- a differentiated mechanism for subsidizing interest rates on loans/ leasing for the purchase of agricultural machinery has been applied (when purchasing equipment of domestic production, the interest rate is subsidized to 6%, for imported up to 15%).
New approaches make it possible, without attracting additional budget funds, to increase the volume of subsidies for agricultural machinery of domestic enterprises by more than two times.
2. Since June of this year, a large–scale program of preferential leasing of agricultural machinery of domestic production in the amount of 120 billion tenge with a remuneration rate of 5% per annum has been launched for the first time.
Next year, it is planned to increase the budget of the preferential leasing program to 200 billion tenge.
The measures taken are yielding results. There is a positive trend in the increase in the purchasing power of farmers for machinery.
Thus, according to KazAgroFinance JSC, as of October 1 of this year, 8,796 units of agricultural machinery were sold, which is an increase of 52% compared to the same period last year (5,795 units).
The Ministry of Agriculture emphasizes that the implementation of these state support measures will significantly increase the volume of purchases of domestic agricultural machinery, as well as have a multiplier effect on the development of domestic agricultural machinery enterprises.

Source : https://www.gov.kz/memleket/entities/moa/press/news/details/880363