The Republic of Kazakhstan has been developing its agro-industrial sector since 2013 by means of the “Agribusiness 2020” program, which aims to modernize its industry, avoid deficits and achieve a national food production of 80% of the total volume of its resources. Hence, it is expected that in 2020 the increase in productivity and efficiency in the agricultural sector will multiply by four.
Although the country produces twice as many vegetables as it consumes, for various reasons it has a sustained deficit, especially in the winter period, when these products are imported from China and Uzbekistan. The reason for not having a better use of the production is due to the lack of an adequate processing industry. As an example of improving its industry, the goal is to reach 200 hectares of greenhouses, since the country had only 60 Has when the program started. For the 140 hectares under development the Kazakhs have local agricultural enterprises interested in greenhouse equipment, although the government does not have funds to finance it.
The “Agribusiness 2020” program aims to attract more than 10 billion tenge of private investment in the sector. To this end, the Investment Law of the Republic of Kazakhstan has been improved, guaranteeing investor rights and contract stability (tax benefits, significant increase in subsidies and loans to the agricultural sector, land ownership period increasement…). Kazakhstan is considered one of the leaders of the CIS countries in terms of favorable conditions for investment. Besides, it has a very favorable geographical position, which facilitates access to the markets of the EAEC and China.
ICP Consulting has promoted the interest of large technological companies in the agricultural sector with the capacity to invest in the country, providing both technological and financial partners, seeking to constitute joint ventures or leasing companies in the Kazakh agricultural sector, mainly in two lines:
Exploitation of technological greenhouses and integral agricultural services.
Improvement of canning industry.