Kazakhstan to change farmers' funding mechanism
By Aynur Jafarova
Kazakhstan plans to change the mechanisms of allocating funds to farmers, Kazakhstan's First Deputy National Economy Minister Marat Kusainov said.
"There is an urgent need to review the existing funding system. Measures to improve the mechanism have been proposed at a government meeting. The proposals have been offered in three categories," he said.
Current measures are focused on certain areas, including review of funding mechanism in seed-farming, the revision of the mechanism for irrigation water supply funding, stimulating of the production growth, export of livestock and expansion of the access to investment funding.
Kusainov also noted the measures provide transparency and simplifies administrative procedures on subsidies granting.
They will promote cooperation expansion, performance improvement, and construction of an effective structure of subsidies, which will comply with the principles and criteria of the WTO in the future.
If the proposed measures are approved at the level of the president's administration by the authorized body in the sphere of agriculture, the Agriculture Ministry in collaboration with the concerned government agencies will develop a detailed road map for improving the system of funding and make appropriate changes and additions to the existing regulations.
Agriculture is considered to be one of the key sectors of the Kazakh economy. The country is rich in land resources: over 74 percent of its territory is suitable for agricultural production, representing 5.5 percent of GDP and employing over 20 percent of the labor force, with 43 percent of the population living in rural areas.
Kazakhstan is one of the world's major wheat and flour exporters. It is among the 10 largest wheat producers. The main grain crop is milling wheat, which is typically high in quality and protein. Kazakhstan also exports large amounts of cotton, leather and wool.
The stockbreeding is a traditional and dominant agricultural sector in Kazakhstan as well. No less than three quarters of all agricultural land is used for grazing.
Sheep breeding is predominant, while cattle breeding and the raising of pigs, horses and camels are also well developed. Animal husbandry typically accounts for about 45-50 percent of the production value in agriculture in Kazakhstan.
Primary meat products include beef, veal, chicken, horse, lamb, pork and rabbit.