The livestock industry is ready to work without subsidies


The problems of the development of the livestock industry were discussed at the next business breakfast on January 27, 2023, Deputy Prime Minister - Minister of Trade and Integration Serik Zhumangarin with the heads of enterprises engaged in the livestock industry. The meeting was attended by representatives of all industries and organizations that make up the links of the technological chain of the meat market:  industry associations and the Union of retail chains, breeding reproducers and feedlots (Azat Agro LLP, Aktep Group, Terra Group, Atameken-Agro LLP), cattle breeding, meat processing and canning (Kubley LLP, BEEFEXPORTGROUP LLP, Astana Agroproduct LLP, meat processing plant "BIJAN"), chilled products (Meat Processing Group LLP), NPP "Atameken", government agencies, reports.  

Serik Zhumangarin addressed representatives of the livestock business with a proposal to voice the main problems of the industry and a vision for its development.

This year we are ready to start replicating the successful experience of the North Kazakhstan Region in a number of areas, thanks to which we plan to close the country's domestic demand for milk, poultry meat and vegetables, and increase the volume of irrigated land.  We are ready to consider animal husbandry projects for the next years.   And to determine clear vectors of development, we need your expertise Serik Zhumangarin 

Maksut Baktibayev, head of the Meat Union, spoke about the main stages of the formation and development of the livestock industry in Kazakhstan, starting in 2008, when the country began to develop livestock breeding, before the creation of feedlots and support for small farms.

Over the past three years, we have seen a decrease in activity in the industry by about 80%, as well as a significant decrease in investment attractiveness. The purchase of livestock has decreased by about 5 times, a third of enterprises are inactive, the rest have significantly reduced the volume of purchased livestock, meat processing plants are idle for the most part. The main reason is restrictions on the export of livestock and meat. The historical maximum of the export volume was noted in the pre-pandemic 2019, when 80 thousand tons of meat equivalent were exported together in live form and in meat. Due to export restrictions and the pandemic, everything put pressure on the domestic market, the wholesale price decreased by 20% and a wave went through the entire chain:  no exports – no purchase of livestock by market participants from farmers - reduction of livestock - exit from business. It is time to solve the issue cardinally. We are ready to work without subsidies if there are stable exports and foreign exchange earnings Maksut Baktibayev

In order for the industry to develop, we need not subsidies, but a fair price. How to achieve it – there are several options:  there is no need to restrict exports, but to make a SWOT analysis of what gives live cattle exports and what gives meat exports to the top 10 countries with high prices. We need cheap feed. There are a lot of questions about statistics, not only in animal husbandry, but also with vegetables Nurlan Sagnalin, GC "Aktep", Aktobe region

Following the results of the business breakfast, the participants agreed that representatives of the livestock industry will form the main problems of the industry in a short time with proposals for solutions. They will be considered in a month, at the government level.

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