agribusiness investment climate · world bank «doing business» ranking ministry of agriculture of...

Ministry of Agriculture of the Republic of Kazakhstan

Astana, 2015

AgribusinessInvestment climate

www.minagri.gov.kzMinistry of Agriculture of the Republic of Kazakhstan 2

The employed population by the types of economic activity in 2014

18,9%

12,8%

8%

11,5%

Agriculture

Industry

Construction

Education

The proportion ofthe employedpopulation of thetotal populationresiding in theRepublic ofKazakhstan is 48,9%

www.minagri.gov.kzMinistry of Agriculture of the Republic of Kazakhstan3

Объем валовой продукции сельского хозяйства

105,6 104,6 104,0 103,8 104,2 102,3 102,699,6 96,2 102,4

103,894,6 109,3 105,0

84,3124,8 77,4

158,972,4

120,798,4

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014*

livestock,% plant production,%

bn. tenge

*January-December

113,3696749 826

1089

1404

1641

1443

2286

1999

25092386


Export of agricultural products

mln. USD

991.5858.5

1277.5

2276

3140

1,703

2,0631,872

3,0022,789

2,617

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

in nearly 3 times


Fixed capital investments in agriculture

95,1

44,1 49 44,152,6

73,6 77,5

83,6

109,4

133,9139,6

166,4

39.9 43.7 36.3 43.961.3

72.8 81.4107.2 133.2 136.7 163,9

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014*

Own fonds Total

bn. tenge

* January-December


Kazakhstan takes the 9th place in the world by territory

957.4

616.6

517.7

413

409

395.9

297.9

297.2

280.3

267.6

1. USA

2. Russian Federation

3. Japan

4. Italy

5. China, Hong-Kong

6. Netherlands *

7. China

8. Germany *

9. France

10. South Korea *


The largest importers of beef in 2014

* Data for 2013

thousands tons


Import of processed agricultural products

95,1

bn. USD

1.9

2.3

2.8 2.93.1

2.9

2009 2010 2011 2012 2013 2014

121%

121,7%

103,5%106,9% 93,6%


Global prerequisites

• Population growth

• World's agricultural potential is exhausted

Population growth


bn. people

+25%7,3

9,1

Exhaustion of the world's agricultural potential



Local prerequisites

1. Political stability2. Market mechanisms of agricultural sector functioning3. Investor protection4. A favorable tax climate in the agricultural sector5. Land use conditions to foreign companies6. Advantages of EEU7. New instruments of state support in the agricultural sector8. Kazakhstan's accession to WTO

World Bank «Doing Business» ranking


TAXATION

49 - Russia60 - Belarus68 – Germany95 - France122 - Japan

PROTECTING MINORITYINVESTORS


REGISTERINGPROPERTY


The amount of VAT in the Customs Union countries

12

1820

0

5

10

15

20

25

Kazakhstan Russia Belarus

in %



Land use conditions to foreign companies

Extending the lease of agricultural land to foreigncompanies to 25 years (it was 10 years)

146.3

17.4

9.53 5.9

Population of EEU countries, mln. people

Russia Kazakhstan Belarus Armenia Kyrgyzstan

The main macroeconomic indicators of Eurasian Economic Union countries in 2014


1,869

21276 11 7

GDP of EEU countries, bn. USD

17

The forthcoming Kazakhstan accession to WTO

Ministry of Agriculture of the Republic of Kazakhstan www.minagri.gov.kz

bn. tenge

200,3 218,1199,3

www.minagri.gov.kzMinistry of Agriculture of the Republic of Kazakhstan

bn. tenge

The cost of support to agriculture

32.135.7

42.9

150.0

153.1

2011 2012 2013 2014 2015Republican budget Local budget

262,8249,3 242,2

320,8295,9

213,6230,7

145,9 167,7199,3

19

95,1

A list of projects with foreign partners№

Name of project Power Transnational partnerThe project

cost,bln. tenge

meat processing / feedlots1 «Eurasia Agro Holding» LLP

(East Kazakhstan region)17 thousand tons of processed meat per

year

Austrex (Australia), Industria Lavarazione Carni Ovine (Italy), Naba Carni (Italy) (deep processing of meat

of sheep and horses) 8,3

2 "Umut“ LLP(Almaty, Pavlodar, South

Kazakhstan, East Kazakhstan , Karaganda regions)

10 thousand tons of processed meat per

year

-12,0

3 "Moyynkum agro“LLP(Zhambyl region)


year

-3,0

4 "Dairy history" LLC (Aktobe region)


year

Gesellschaft fur Schlacht und Fordertechnik (Germany) (manufacturers of equipment for the processing of beef) 10,81

TOTAL for meat processing / feedlots 34,1poultry farms

5 "Tehno kus“ LLP(Akmola region)

20 thousand tons of meat and meat

products per year

International company "Tehno" (Ukraine)(production of equipment for poultry and swine) 12,0

6 "Ustkamenogorskaya Poultry“LLP(Akmola region)


products per year

"Aitas Group» LLP, Stork (Australia), Hatshtek, Naihaus, Mavitek, Ishido, Challer (Holland) (production of

equipment for poultry), the World Bank - 12%, European Bank for Reconstruction and Development - 12%, Citic

Kazyna Investment Fund - 12%37,0

7 «Capital Projekt» LLP(Akmola region)


products per year

-12

TOTAL for poultry farms 61,0Ministry of Agriculture of the Republic of Kazakhstan

www.minagri.gov.kz

20

95,1

A list of projects with foreign partners

№ Name of project Power Transnational partner The project cost,bln. tenge

production of milk / milk processing1 "Kaiyndy“LLP

(Almaty region)3,000 head of cattle,100 tons of processing

per day

The German company «Agrial» (Germany) (meat, vegetables,

fruits production)8,5

2 «Milker» LLP(Aktobe region)

1280 head of cattle, 60 tons of processing

per day7,3

3 "Agrotrade Trading“ LLP(Akmola region)

3000 head of cattle,50 tons of processing

International company«Megli» 8,0

TOTAL for production of milk / milk processing 23,8TOTAL for livestock 118,9

production of fat-and-oil products1 "EFKO« Group of companies

(North Kazakhstan region)Processing 145.0 thousand tons of

oilseeds per year, producing 55.0 thousand tons of

vegetable oils per year

"EFKO« Group of companies (Russian Federation) 17,0

2 "EFKO« Group of companies(Almaty region)

Soybean processing up to 350 thousand tons per year

"EFKO« Group of companies (Russian Federation) 9,6

3 «Oil extraction factory -NKR» LLP(North Kazakhstan region)

570.0 thousand tons of oilseeds 18,0

TOTAL for production of fat-and-oil products 44,6deep processing of grain crops

1 "Nomad“ LLP(Karaganda region)

Processing of 54.7 thousand tons of grain per year 7,8

2 "Verny Capital“ LLP(Almaty region)

Processing of 100.0 thousand tons of grain per year 18,5

TOTAL for deep processing of grain crops 26,3TOTAL for plan production 70,9

TOTAL for livestock and plan production 189,8

www.minagri.gov.kzMinistry of Agriculture of the Republic of Kazakhstan


«Eurasia Agro Holding» LLP

Location: East Kazakhstan region, Ayaguz districtThe essence of the project: A cluster in sheep: construction ofmeet-packing factory with deep processing, the creation of feedlot sheep, leatherprocessing and washing hair with a further software exports.

Power: 17 thousand tons of processed meat per year

Project cost: 8.3 billion tenge

www.minagri.gov.kz22

95,1

Measures to improve the investment climate

Ministry of Agriculture of the Republic of Kazakhstan

Remove restrictions on turnover of agricultural land

Improve the legislation in the field of grain

Improve the legislation in the field of seed production

Revise the tariff for irrigation water

Automate the process of subsidies in the agricultural sector

Improve the legislation on agricultural cooperation


Remove restrictions on turnover of agricultural land

• Simplification of procedures and conditions for theacquisition of agricultural land in private ownership;

• Lifting of restrictions on land transactions in the secondarymarket (simplification of the procedures for changing the category of land and transfer it

in mortgage, shortening the registration of transactions, etc.).


Improving of the legislation in the field of grain

The introduction of electronic grain receipts toincrease trust and investment attractiveness of the grainreceipts


Improving of the legislation in the field of seed production

The transition from the authorization status of the State register of breedingachievements to the recommendation status.


Establishment of effective water tariff


Automate the process of subsidies in the agricultural sector

Analysis of subsidizingprocesses on the feasibilityof inclusion in the Register(or changes in theRegister)

Thestandardization ofpublic services

Optimization ofpublic services

Automation ofpublic services

+ Advantages of automation

1. Minimizing contact between the Service Provider and customer;2. Speeding up the process of obtaining subsidies;3. Increasing the transparency of the process of obtaining a subsidy.


Draft Law "On Agricultural Cooperation"

1. Lifting of the ban on the distribution of profits;

2. One law instead of five;

3. Special tax regime for agricultural cooperatives;

4. Subsidizing the cost of the audit of agricultural cooperatives.


Thank you for attention!

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