As part of discussions with business representatives on the development of the industry, the Minister of Agriculture A. Saparov met with representatives of the meat livestock industry. During the meeting, the advantages and disadvantages of simplified financing, fiscal instruments for the development of the industry, as well as the regulation of the live livestock market were discussed.
The Ministry of Agriculture of the Republic of Kazakhstan is carrying out planned work to increase the effectiveness and transparency of state support. In this regard, it is planned to replace subsidies for selection and breeding work with other support instruments. In particular, the issues of changing the subsidy standards for the sale of livestock to meat processing plants and feedlots and providing the industry with simplified financing are being considered.
Meat livestock, like other sectors of the agricultural sector, needs affordable working capital. Therefore, this year the ministry plans to launch a 5% soft loan program for a period of 15 months. In addition, the possibility of financing investment loans at a preferential rate is being discussed.
Another important issue is fiscal measures.
“In addition to the issue of VAT (Value Added Tax), which is currently being actively discussed, it is necessary to take into account that fiscal instruments contribute to the “coming out of the shadows” of the agricultural products market. In particular, tax incentives can become an advantage for processing enterprises and give an impetus to the collection and processing of wool, leather, fruit and vegetable products,” explained Azamat Shalmagambetov, director of MB4 LLP.
The minister noted the need for a comprehensive discussion of tax changes with government agencies and business representatives. In addition, he noted that stimulating measures to “bring out of the shadows” of agricultural products trade is one of the priority areas.
One of the important topics of discussion was the increase in prices for meat, especially beef.
“The administrative bans and restrictions introduced earlier have had a negative impact on the industry. "As a result of bans and quotas, the profitability of livestock farming has decreased, and some farmers are stopping livestock breeding," said Dauren Salykov, director of the Angus Kazakhstan Republican Chamber.
"The increase in meat prices is primarily due to the activity of speculators. They are exporting livestock in various ways. We understand that administrative bans hinder the development of the industry. But in order to open the cattle market, it is important to ensure the stability of the domestic market. We will discuss solutions together, and your suggestions will be considered," said A. Saparov.
Following the meeting, expanded discussions will be held with business representatives within the framework of the working group on the development of beef cattle breeding established under the Ministry of Agriculture of the Republic of Kazakhstan.

Source : https://www.gov.kz/memleket/entities/moa/press/news/details/936933