The latest updates of Kazakhstan agricultural sector

The latest updates of Kazakhstan agricultural sector are available in August release of Economic Newsletter on Kazakhstan issued by the Economic Section of the Embassy of the Kingdom of the Netherlands. The newsletter summarizes economic news from various Kazakhstani and foreign publications.

Agreement on construction of greenhouse compound in Turkestan signed

In Turkestan, a five-sided investment agreement was signed between the administration of Turkestan region, Kazakh Invest, Eco-Culture Agro-Industrial Holding, Green Land Alatau and the Eurasian Development Bank on the construction of a 500-hectare greenhouse complex in Keles district.

The volume of planned investments will amount to $1.1 billion.

On May 17 this year, Alexander Rudakov, the Chairman of the Board of Directors of the Eco-Culture Holding, and the Prime Minister Askar Mamin, have already signed a memorandum. The project of the greenhouse mega-complex will be implemented with the help of the Russian partner of the ECO-Culture Agribusiness Holding, the Kazakhstan company Green Land Alatau.

To date, the regional Department of Energy and Housing and Communal Services has made calculations to connect the necessary infrastructure in the selected area.

The construction of the greenhouse complex will be carried out in several stages. The complex will be equipped with a modern computerized climate control system. About 50 thousand tons of products are planned to be collected here annually, Kapital reported.

Kazakhstan seeks investor for potato processing plant

In Pavlodar region, they plan to arrange processing of potatoes for $20 million. According to the data, currently work to attract investors is underway.

“The preliminary cost of the project is about $20 million. The capacity is 140 thousand tons of potatoes per year. It is planned to produce 21 thousand tons of starch and 2.8 thousand tons of protein,” the department added.

Finished products will be delivered not only to the domestic market, but also to China and the EU.

“The average price of potato starch in China is $842 per ton, and in the EU it is 900 euro per ton. The first deliveries of Kazakhstan starch are planned in early 2022,” the Ministry of Agriculture summarised.

Meanwhile, Almaty region will begin to produce French fries. The project is estimated at 43.1 billion tenge. The plant should start operating in 2020, LS reported.

Kazakhstan collects more than 4.1 million tons of grain

According to the report of the Ministry of Agriculture of Kazakhstan, as of August 28, grain crops in the republic were threshed on 3,465.8 thousand hectares, which is 22.8% of the area.

To date, 4,143.1 thousand tons of grain have been obtained with an average yield of 12 quintal/ha. Last year, on the same date, the average yield was 14.7 quintal/ha, and threshing was 2,298.8 thousand tons.

According to the Committee on Statistics of the Ministry of National Economy of Kazakhstan, the sown area of crops in 2019 amounted to 22.2 million hectares.

Of the total cultivated area, 15.4 million hectares, or 69.2%, of crops, 3.3 million hectares, or 15.1%, and oilseeds, 2.9 million hectares, are sown with cereals and legumes. 13%, vegetables and melons, root crops and tubers on 0.5 million hectares or 2.1%.

The main part of cereals and legumes falls on Akmola region at 4.4 million hectares or 28.9%, Kostanay at 4.0 million hectares by 25.8%, North Kazakhstan no 2.9 million hectares by 18.6%.

According to the forecasts of the Ministry of Agriculture, this year Kazakhstan expects to harvest grain at the level of last year, or at least 20.3 million tons, Kazakh Zerno reported.

Arabian SALIC plans to invest in agriculture of Kazakhstan

A meeting between the Ambassador of Kazakhstan in Saudi Arabia, Berik Aryn, and the head of the Saudi Agricultural and Livestock Investment Company, Matthew Jensen, was held in Riyadh.

During the meeting, issues of establishing cooperation between Kazakhstan and the company were discussed, as well as the possibility of attracting Saudi investments in Kazakhstan, the press service of the Ministry of Foreign Affairs of Kazakhstan reported. In this regard, the ambassador spoke in detail about the agricultural sector and the agricultural industry of Kazakhstan, and the measures taken by the Government to develop these areas.

He also informed about the preferences and privileges provided in the country to foreign investors, legislation and institutions for the protection of their rights and investments and submitted a number of investment projects in the field of agriculture to the company for consideration. Along with this, the Kazakh diplomat briefly told on the activities of the Astana International Financial Centre and the Islamic Organization for Food Security, created on the initiative of the First President Nursultan Nazarbayev.

The head of SALIC, M. Jensen, received information on the agriculture and agro-industrial complex of Kazakhstan and the available investment opportunities with great interest. He expressed the company's interest in establishing mutually beneficial cooperation with Kazakhstan. Following the meeting, an agreement was reached on organizing a visit of a company delegation to Kazakhstan to study the existing investment opportunities on the spot.

SALIC was created to ensure the food security of the kingdom, and its founder is the State Investment Fund. The company is engaged in investing in foreign countries, where there are favorable conditions for the crops and the development of livestock. The resulting products are imported into Saudi Arabia. Today the company implements a number of large investment projects in Canada, Australia, Ukraine, Europe and other countries, In Business (Kazakhstan) reported.

The full version of the latest Economic Newsletter is available here: https://drive.google.com/file/d/1sA5RUDajCBeQ1L-ijxKNfLWP97YG5dv8/view?usp=sharing

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