Investments in Kazakh livestock sector grow

ASTANA – The focus of investment interest in agriculture is increasingly shifting towards livestock, as the investment growth rate in cultivating seasonal crops has slowed compared to the previous year, reported finprom.kz. Investment in livestock has hiked almost 15 billion tenge (US$44.49 million), or 51 percent, since January.

Photo credit: pymnts.com

Photo credit: pymnts.com

“Over eight months of this year, 162.4 billion tenge (US$481.67 million) was supplied in the development of enterprises and other participants in the agricultural market, or 7.2 percent more than in the same period last year,” noted the report.

The largest share of investments in the industry has traditionally supported crop production, namely the cultivation of seasonal crops. The inflow amount was 99.3 billion tenge (US$294.5 million).

The investment growth rate in the area, however, is slowing. The figure increased 1.3 billion tenge (US$3.85 million) this year compared to January-August 2016, when the increase was 41.2 billion tenge (US$122.19 million). The investment flow in cultivating perennial crops dropped 8.4 billion tenge (US$24.9 million) to 3.5 billion tenge (US$10.38 million).

Investors are increasing financing in livestock, although the volumes are noticeably less than in crop production. During the first eight months, 43.7 billion tenge (US$129.6 million) was directed to livestock enterprises and farms.

The amount is the sharpest increase in the last five years. As a result, 26.9 percent of all agricultural investments were directed to developing the livestock sector.

Investments in livestock mainly come from private funds, which this year have hiked from 17.1 billion tenge (US$50.7 million) to 38.7 billion tenge (US$114.78 million). At the same time, the volume of funds borrowed from creditors fell 2.4 billion tenge (US$7.1 million) to 5 billion tenge (US$14.8 million).

Enterprises and farms engaged in cultivating seasonal crops, however, have relied this year on borrowed funds and bank loans. From January-August, 18.8 billion tenge (US$56 million) in loan funds was attracted to the sector, a 3.2 billion tenge (US$9.5 million) increase since last year.

To improve the effectiveness of state support to industry enterprises, the Ministry of Agriculture presented road maps recently to develop priority agricultural areas and improve state support for the agro-industrial complex. Road maps have been developed in the main areas of seed growing, agro-chemistry, producing plant protection products, intensive technical re-equipment of the agro-industrial complex, fodder production (forage balance), transhumance sheep breeding and developing a network of wholesale distribution centres.