...

Kazakhstan to allocate record funds for agricultural development in 2025

Economy Materials 26 February 2025 07:45 (UTC +04:00)
Kazakhstan to allocate record funds for agricultural development in 2025
Madina Usmanova
Madina Usmanova
Read more

ASTANA, Kazakhstan, February 26. In 2025, approximately 1.5 trillion tenge ($3 billion) will be allocated for the development of investment projects in the agricultural sector through the Agrarian Credit Corporation (ACC) and KazAgroFinance, Trend reports via Kazakhstan's Ministry of Agriculture.

The funds will be directed towards spring fieldwork, harvesting, implementing investment projects, purchasing essential supplies, replenishing working capital, and leasing agricultural machinery.
When financing projects, priority will be given to the following areas:

Processing of agricultural products and food production (priority to socially significant food products);

Irrigation development (sprinkler systems, irrigation structures, drip irrigation);

Industrial greenhouses (reducing seasonal price fluctuations of vegetables);

Infrastructure development (packaging, storage, transportation).

Development of large-scale feed production. Investment project financing will focus on increasing investment in the agricultural sector, developing domestic production to reduce food inflation imports, ensuring a stable supply of domestic products to the internal market, and realizing export potential.

To expand project coverage, credit limits for projects through ACC will be increased from 7 billion tenge ($14 million) to 15 billion tenge ($30 million), the scope of the Baiterek Guarantee Fund will be extended, guarantees from Damu Fund will be provided for large long-term ACC projects, and the mandate of the Export Credit Agency of Kazakhstan will be expanded to support agricultural product exports. Under leasing programs, KazAgroFinance will prioritize support for domestic agricultural machinery, which will increase the multiplier effect of this support measure for farmers on industrial enterprises.

Additionally, Baiterek Holding is forming a pool of poultry farms and continuing to expand export opportunities for agricultural producers. Negotiations are underway with Malaysia to explore new markets and create a new trade fund, which will allow the export of grain to increase to 4200 million. In the long term, this figure is planned to reach $1 billion. Export expansion and new markets Within the export strategy, insurance, reinsurance, and guarantee tools are being expanded for domestic producers. An important task is entering new markets and providing comprehensive solutions for Kazakh exports. In this regard, Baiterek is launching a trade fund and forming a pool of export-oriented projects, including poultry farming and crop production. Key export directions:

Consolidating large producers and traders of crop products (grains, oilseeds, and legumes) to expand export channels;

Creating stable export supply chains and expanding export geography (China, Central Asia, EU);

Reducing speculative factors in pricing and stabilizing the market;

Partnership with large foreign buyers (COFCO and others);

Investment support and attracting the private sector to trading activities.

Improving conditions for agricultural producers in transport and logistics services. In the long term, the fund is planned to transform into the Food Security Fund with a broader mandate to ensure food security in the CIS and Middle Eastern countries. Export support tools through the Export Credit Agency of Kazakhstan (ECA) include: Guarantees; Reinsurance; and Composite services.

These measures will help bring Kazakh products to new markets and strengthen the position of domestic producers.

Tags:
Latest

Latest