Agricultural industry of republic of Kazakhstan and food security

The main characteristics, problems of agricultural industry and food security of Republic of Kazakhstan are studied in the manuscript. The special attention is paid to the ways to solve them.

Food security is a subject of special attention of every sovereign State wishing to maintain their independence and the sustainability of development. Food security means a condition of the economy in which the state provides the population with its own production of basic foodstuffs and essential priority is the most vulnerable, the poor of its layers, under the condition of physical and economic availability of food in a quantity and quality that are required for the preservation and maintenance of human life and viability, full or the maximum possible independence of the state from external food sources. [1] Food security implies the bulk of food production in the country through the creation of material, financial, labor and socio-economic conditions for the growth of agricultural production. This is especially relevant for the determination of the optimal balance between domestic production and imports, which is important to the realization of import substitution. [2]

In modern conditions of development of the economy to ensure a high quality of food, in the required quantity and the country at an affordable price for the consumer - this is an indicator of food security. The extent and quality of the food security of the country depends on the condition of agriculture and related agribusiness sectors.

The natural conditions of Kazakhstan, their diversity present a significant potential for the development of agriculture, which, in turn, contributes to food security. Traditionally our republic is engaged in the following animal species in the country: sheep breeding, horse breeding, camel, cattle breeding.

Huge Land Fund of Kazakhstan with extensive areas of agricultural land, which includes arable land, grassland and pastures, promotes the development of large-scale agriculture. Arable farming of Kazakhstan gives slightly less production than livestock, but it involved the majority of the working population of the

village. Arable farming or crop production is considered a leading branch of agriculture of Kazakhstan, and grain farming is the main branch of the country's agriculture. It provides the population with grain products, and livestock - feed. Kazakhstan produces a sufficient amount of high-quality commodity grain. The total area under crops is 21,244.6 hectares [3]. In recent years, the overall grain crops occupied more than 80% of the sown area of agricultural crops. The northern regions of the country are specialized in the cultivation of crops and livestock, the southern regions, where irrigation is essential, have a greater diversification of crops - grain, oilseeds, fruit and berry crops, vegetables , cotton. Kazakhstan exports of agricultural products comprise mainly vegetable products, whose share in the total export of the Republic since 1995 ranges from 9.6 to 4%. And the export volume mainly made up due to grain, more than 70% in the export of agricultural and food products belong to it.

Kazakhstan has significant potential for the export of grain and flour. Every year, Kazakhstan, on average sold for export 6-8 mln. tons of grain, including about 2 million tons of flour, which in terms of wheat is 2.8 mln. tons. The main directions of export of Kazakhstan grain and flour are the CIS countries, the European Union, the Middle East and North Africa. In his message to the people of Kazakhstan "Social-economic modernization - the main vector of development of Kazakhstan" Nazarbayev N.A said: "Agricultural sector of Kazakhstan has huge export abilities and high potential for investments. Food necessity will grow every year. We can't miss this chance"[7].

Nowadays for agricultural sector of economy it is grain export, in the future - meat and meat products, pasta and cereals. Kazakhstan is one of the leading world exporters of grain and in view of the plans to raise the level of exports to 10 million tons per year, taking into account the fact that the capacity of the markets of neighboring countries is estimated in the region of 15 million tons.

Agriculture for January 2016 showed the rate of growth (compared to January 2015,%) 101,9. At the end of 2015, Kazakhstan threshed 19.95 million tons of grain, which is 16% more than last year. As indicated in the summary of the Ministry of Agriculture, grain is harvested from the 14.73 million. hectares, which is 99.99% of the total harvesting area. The average yield increased to 13.5 cwt / ha to 12.5 cwt / ha in 2014. These figures give the country the right to stay in third place in the CIS after Russia and Ukraine. The growth of grain production contributes to increase the volume of its sales and increase profitability of the industry. In the 2014-2015 crop year (July-June), Kazakhstan has exported more than 6.6 mln. tons of grain. In addition, exports of about 1,3-2,2 mln. tons of flour [3]. Minister of Agriculture Assylzhan Mamytbekov informed that Kazakhstan managed to agree with China on the supply of grain in 2016 up to 500 thousand tons. This will help to solve the problem of grain export.

Yields of grain (including rice) and legume crops from 8.8 cwt / ha in 2004. The figure increased to 11.7 cwt / ha in 2014, of which wheat from 8.4 cwt / ha to 10.9 cwt / ha. [4].

The southern regions of the country with artificial irrigation give high yields of cotton (in total exports of agricultural products of the country is about 15%), sugar beet, tobacco, rice.

Currently, agriculture uses 1.5 thousand crop species. The main areas of crop coincide with the main areas of distribution of arable land and perennial plantings. Following cultivation distinguished in agriculture structure: cereals (wheat, rice, corn, rye, millet, buckwheat, etc.), Technical (oil, sugar, fiber), root vegetables (potatoes, cassava, etc.), Vegetables, melons and horticultural crops, as well as a variety of subtropical and tropical fruits and plants. The most important sector is grain farming.

The current level of agricultural development is directly related with the development of virgin lands, which had a strong impact on both the crop and livestock production. For the record short terms during the virgin lands more than 25 mln. hectares of untilled before land have been involved into economic circulation. 21.9 ha or 3.1 times more compared to 1953 were employed under the crops. At the same time a major food crops - wheat was given to 18.0 million hectares, or 82.5% of the cereals. Only for 1955-1960s in the development of agriculture of the republic were invested more than 4.5 bln. rubles, which was 22% of the total investments in agriculture.

As a result of the development of virgin land areas under crops in the country increased from 7 million in 1953 to 25.6 million hectares in 1981 that is 3.7 times more. Before the development of virgin lands in the 19491953 years Kazakhstan produced an average annual 1.8 million tons of grain, in 1956-1960 years - 18.8 million tons, which is 10 times more. In subsequent years, this harvest was repeated several times. Thus, through the development of the virgin lands Kazakhstan has turned into the largest granary of the former Soviet Union. Creation of large-scale agricultural enterprises on the virgin lands contributed to deepening of the process of specialization of farms, the concentration of crop and livestock sectors, the development of inter-farm cooperation and agro-industrial integration. By the eighties there already functioned quite highly developed and efficient agricultural sector, whose share in the national agribusiness accounted for productive assets - more than 40%, by number of employees - more than 32%, and gross production - more than 34%. Reform Period aggravated and added a lot of problems. The period from 1991 to 1996 must be viewed in the context of a deep economic crisis and the catastrophic decline of intensification volumes [5].

A serious problem in agriculture was the rational use of arable land. One of the most important legislative acts in the sphere of land relations was the Decree of the President of the Republic of Kazakhstan having the force of law "About Land" dated December 22, 1995, according to which the private ownership of land was recognized officially. It was recognized that a possible transfer to private ownership of land plots of citizens of the Republic, intended for private farming, gardening, construction of cottages and a house. In addition, as has been recognized as an opportunity to transfer to private ownership of land to non-state entities, includingforeigners, for construction purposes. According to this decree, agricultural land, as well as defense of land, forest and water reserves, protected areas, land with natural complexes and objects having special ecological, scientific, historical, cultural, recreational, medical and recreational purposes, public in settlements, could not be privately owned. Further development of the market economy and the emergence of new issues in land relations required the adoption of a new land legislation - June 20, 2003, new Land Code of the Republic of Kazakhstan was adopted. The new Land Code has allowed private ownership of natural and legal persons of the Republic of Kazakhstan on agricultural lands for farming and commercial farming. In the agricultural area, there are three kinds of land - permanent, temporary (hire) and private property. The Constitution of the Republic of Kazakhstan on August 30, 1995, the sixth article states that "the earth and its subsoil, water, flora and fauna, and other natural resources are state-owned. The land may also be privately owned on terms, conditions and within the limits established by law. "The basic law of the land is - the Land Code of the Republic of Kazakhstan. Kazakhstan has the largest land. The total area of the land fund of 272 million ha.

According to intended purpose land is divided into the following categories:

  • agricultural land;
  • land settlements;
  • land for industry, transport, communication, defense and other non-agricultural purposes;
  • land of specially protected natural areas, recreational land, recreational, historical and cultural destination;
  • forest lands;
  • water fund land;
  • reserve lands (including all of the land is not provided in the ownership or use of land under the jurisdiction of district executive authorities).

In the structure of the land fund of the country is dominated by reserve land - 104.8 million hectares (40.1%) and agricultural land - 96.3 million hectares (36.9%). According to the information on November 1, 2015, 77,0% of the land fund is concentrated in these categories, in all other categories - 23.0%. A positive trend in the stock of land involving the use of various sectors of the economy continued (Figure).

The largest agricultural region in the Republic of Kazakhstan is Almaty region, which provides 15.1% of gross domestic product in the industry. In comparison with the I half of 2014 the volume of production ofagricultural enterprises in the region increased by 13.3%. South Kazakhstan follows Almaty area with the figure of 13.8% of the volume of production in the agricultural sector of Kazakhstan. In the year figure increased by 38,5%. The East Kazakhstan region, which formed 13.2% of the production industry, closes the top three. For the year grew by 18.3% in the region[3]. Table 1 presents data on GDP by production for the second half of 2015 compared to the same period in 2014.

The development of agriculture has an important multiplying effect for the country. So on the one hand, the industry provides a variety of valuable raw materials for a number of industries, and on the other - is a major consumer of the domestic industry, in particular, agricultural machinery, fuel and lubricants, as well as construction and transport. This largely public sector provides employment in other sectors of the economy and demand for their products.

According to the Ministry of Agriculture of Kazakhstan, the volume of gross agricultural output increased by 4.4% in 2015 and amounted to 2.7 trillion. tenge. This growth is due to an increase in crop production by 5,6% (1,5 bln. tenge) and animal products by 3,2% (1,2 bln. tenge). In addition, 28% increased the volume of investments in fixed assets and the food industry amounted to 55.9 billion. tenge.

GDP by production method. Agriculture, forestry and fisheries. Regions of Kazakhstan. II half of 2015, billion tenge

 

Total

Increase to the total

The share by the

Republic of Kazakhstan

2015 / II

2014 / II

2014

/ II

2015 / II

2014 / II

Kazakhstan

435,2

360,8

120,6%

74,4

100,0%

100,0%

Almaty region

65,9

58,2

113,3%

7,7

15,1%

16,1%

South Kazakhstan region

60,2

43,5

138,5%

16,7

13,8%

12,1%

East Kazakhstan region

57,5

48,6

118,3%

8,9

13,2%

13,5%

Karaganda region

35,6

31,0

114,9%

4,6

8,2%

8,6%

Jambul region

32,9

31,0

106,1%

1,9

7,6%

8,6%

Kostanay region

32,5

29,4

110,6%

3,1

7,5%

8,1%

North Kazakhstan region

28,1

24,0

116,7%

4,0

6,4%

6,7%

Akmola region

26,6

23,8

111,8%

2,8

6,1%

6,6%

Aktobe region

25,5

23,5

108,4%

2,0

5,9%

6,5%

Atyrau region

18,8

10,9

173,3%

8,0

4,3%

3,0%

West Kazakhstan region

16,0

13,7

117,4%

2,4

3,7%

3,8%

Pavlodar region

15,4

12,9

119,5%

2,5

3,5%

3,6%

Kyzylorda region

12,2

6,4

192,0%

5,9

2,8%

1,8%

Mangistau region

5,4

2,7

200,2%

2,7

1,2%

0,7%

According to materials on NEM RK Statistics Committee [3]

Table 1- GDP by production method. Agriculture, forestry and fisheries

 

The index of physical volume of the gross (services), agriculture

Total

crop production

animal products

Kazakhstan

102,9

100,0

103,0

Akmola region

109,0

100,0

109,2

Aktobe region

100,2

100,0

100,2

Almaty region

99,5

100,0

99,5

Atyrau region

101,7

100,0

101,8

East Kazakhstan region

102,5

100,0

102,5

Jambul region

102,9

100,0

103,0

West Kazakhstan region

104,8

100,0

105,0

Karaganda region

103,1

100,0

103,1

Kostanay region

101,3

100,0

101,3

Kyzylorda region

100,0

100,0

100,0

Mangistau region

104,1

100,0

104,6

Pavlodar region

107,1

100,0

107,1

North Kazakhstan region

105,5

100,0

105,5

South Kazakhstan region

102,6

100,0

102,6

Astana city

81,0

100,0

72,2

Almaty city

37,4

100,0

36,9

According to materials on NEM RK Statistics Committee ∣3∣

Table 2 - Indexes of physical volume of gross production (services) of agriculture in 2015 (% ratio to 2014)

Agricultural production of the country today is the small-scale, which is the main reason for its weak competitiveness. As international experience shows, the basis of fortification of production in the agricultural sector are the various forms of cooperation. Small commodity producers at the expense of cooperation can work together to solve common problems of technical and technological re-equipment, processing and marketing of products grown without intermediaries, service, and that is the basis of competitiveness. To create a legal framework for the development of cooperation following laws were adopted "On the rural consumer cooperatives of the Republic of Kazakhstan" (1999), "On agricultural partnerships and associations (unions)" (2000), "On consumer cooperatives" (2001), "On the rural consumer cooperative water users "(2003). Also, since January 1, 2016 entered into force the laws "On agricultural cooperatives" and "On amendments and additions to some legislative acts concerning agricultural co-operatives. "As IA" Kazakh-Grain" reported, these laws provide for transfer of agricultural cooperatives from the category of non-profit status in the commercial and the possibility of profit distribution in the agricultural cooperative; the ability to enter into cooperative revisory associations to conduct an annual internal audit; preserving the principle of democracy (one member - one vote); the introduction of the principle of the sale of goods (works, services) to its members at cost price; exception unnecessary detail relations regulation, applying dispositive rules, union laws on rural consumer cooperative water users, socio- entrepreneurial corporations in a single law, the introduction of standard documentation; distribution of a special tax regime on agricultural cooperatives with the expansion of the list of activities in its application; subsidies to 50% of the cost of internal audit of cooperatives [4]. "To stimulate the development of cooperation ministry plans to revise the existing subsidy mechanisms in the agricultural sector in terms of raising standards of subsidies for cooperatives," - noted in the Ministry of Agriculture. Also, the Ministry together with ""NMH" KazAgro" corporation plans to develop a new product at a reduced lending of agricultural cooperatives.

According to the Ministry of Agriculture, as of June 1, 2015, the country registered 1 481 rural consumer cooperative, 489 rural water users' consumer cooperatives, agricultural associations 43 1843 cooperatives in agribusiness, which is less than 2% of the total number of agricultural enterprises. In 2015, the amount of subsidies to agribusiness totaled 157.3 billion tenge, which is almost 1.8 times more than in 2013, when the industry subsidies amounted to 87.2 billion tenge [6].

Problem points:

  • unavailability of agricultural enterprises and rural population to unite, misunderstanding the benefits of cooperation, as well as to develop mechanisms;
  • the absence of an established logistics for the sale of products manufactured by cooperatives, as well as their limited access to the trading platforms;
  • illiquid collateral, represented by cooperatives;
  • the imperfection of the tax legislation, in terms of non-proliferation of tax breaks cooperatives (according to the Tax Code of the Republic of Kazakhstan benefits apply to cooperatives , participants are only peasant (farmer's) economy).

Lack of adequate credit system in agriculture has made the loss of working capital virtually irreplaceable.

All this has led to the disruption of farming systems, lack of demand for new technologies, high- quality seeds of crops, breeding livestock and poultry, fertilizers, etc. It is important to pay special attention to the increase in the volume of subsidies, improving the investment climate, reducing the interest rates on loans granted in order to increase the competitiveness of domestic production of food and raw materials, in addition, necessary to create a state of equal conditions for food producers and retailers in order to improve competition. We need competitive economy. This requires the implementation of a number of protectionist measures: restriction of access to the national market of imported products and the promotion of national exports. In order to regulate the import market experts suggest to establish tariff quotas, to create the conditions for the development of import-substituting domestic production and the formation of healthy price competition. Also very relevant is the introduction of innovative and updating existing technologies, processing and storage of agricultural products. The introduction and implementation of the necessary changes and innovations would help to achieve a significant reduction in the proportion of imports of agricultural products and raw materials, and ensure the achievement of food security and independence of the country and most fully provide the population with qualified food. Our country works on the implementation of "Agribusiness -2020" program and its realization will raise the situation in the agrarian and industrial complex on an essentially new level.

 

Список литературы:

  1. Вечканов Г. С. Экономическая безопасность: Учебник для вузов / Санкт-Петербург: Питер, 2007. - 384с.
  2. Шахов Д.В. Продовольственная безопасность в системе национальной безопасности государства. - Режим доступа: http://www.ostu.ru.
  3. Официальная статистика Министерства Национальной экономики Республики Казахстан. Комитет по статистике. - Режим доступа: http:// www.stat.gov.kz.
  4. Данные с официального сайта Казах-зерно. - Режим доступа: http://kazakh-zerno.kz.
  5. Гендельман М.А., Крыкбаев Ж.К. Научные основы землеустройства и кадастра: Учебник / Астана: Фолиант, 2004. - 172 с.
  6. Данные с официального сайта Министерства сельского хозяйства РК. - Режим доступа: http://www.mgov.kz.
  7. Послание Н.А. Назарбаева народу Казахстана в 2012 году "Социально-экономическая модернизация - главный вектор развития Казахстана". Режим доступа: http://www.akorda.kz.
Year: 2016
City: Karaganda
Category: Economy