The Food Contract Corporation has supported about 2,000 farmers over the past 3 years

The Food Contract Corporation has supported about 2,000 farmers over the past 3 years

01.02.2025 20:38:35 1021

Since 2022, the Food Contract Corporation has supported nearly 2,000 farmers and agricultural businesses. The largest amount of assistance was provided in 2024, when 832 agricultural producers received support from the state operator.
The main tools for supporting farmers were the forward financing program for seasonal field work, commodity loans, including seed supplies, and direct purchases of surplus grain from small and medium-sized farmers.
In 2023-2024, 590 agricultural producers were financed for 129.1 billion tenge on preferential terms within the framework of forward purchases and commodity loans.
For the first time, forward financing contracts for 6 thousand tons of rice were concluded with rice producers in the Kyzylorda region.
In order to ensure guaranteed grain sales by farmers, the Food Contract Corporation has been purchasing crop products at prices above market prices for the past two years.
In particular, in 2023, the state operator purchased 350 thousand tons of low-quality wheat from farmers for 27 billion tenge. This measure made it possible to financially support agricultural producers who found themselves in difficult situations when the quality and yield of grain decreased due to adverse weather conditions.
Agriculturalists spent the funds received on spring sowing and other production needs.
In December 2024, the state operator made the first payments in the amount of 3.5 billion tenge to agricultural producers who supplied wheat under the intervention grain purchase program. First, funds from the Food Contract Corporation reserve were transferred to small farms, helping them maintain profitability.
Participation in grain programs and transparency of the process of funding allocation are ensured through regional coordination councils.
According to Asylkhan Dzhuvashev, Chairman of the Board of the Food Contract Corporation JSC, by supporting farmers, the corporation not only ensures the financial stability of agricultural enterprises, but also creates conditions for the development of the agricultural sector.
“State support measures have a multiplier effect for the agro-industrial complex: the stable work of agricultural producers has a positive impact on the country's food security. The state reserve is replenished through the purchase of grain. If necessary, the Food Contract Corporation provides grain to mills, poultry and livestock enterprises at reduced prices, which allows maintaining food prices at a reasonable level. This is systematic work,” said the head of the Food Contract Corporation.
For example, in 2023, to maintain the price of social bread, the Food Contract Corporation delivered 89 thousand tons of wheat to mill enterprises. These mills provided bakeries with discounted flour for the production of 162 million loaves of social bread.
According to Asylkhan Dzhuvashev, state operators of China, the USA, India and other major grain importing and exporting countries operate under a similar system.
“Large state corporations ensure the food security of their countries by supporting farmers and stabilizing food prices. This is very important in the face of geopolitical and climatic challenges,” explained the chairman of the board.
The volume of grain in the warehouses of the Food Contract Corporation is 1.7 million tons. This reserve will fully cover Kazakhstan's domestic needs for food and feed grains and allow for stable grain exports abroad.
In conditions of unstable market prices, the state operator pays special attention to maintaining grain reserves to ensure long-term food security.

Source : https://www.gov.kz/memleket/entities/moa/press/news/details/926021