of February 14, 2017 No. 420
About approval of the State program of development of agro-industrial complex of the Republic of Kazakhstan for 2017-2021 and modification and amendments in the Presidential decree of the Republic of Kazakhstan of March 19, 2010 No. 957 "About approval of the List of state programs"
1. Approve the enclosed State program of development of agro-industrial complex of the Republic of Kazakhstan for 2017 - 2021 (further - the Program).
2. To the government of the Republic of Kazakhstan:
1) to develop and approve the Actions plan on program implementation in coordination with Administration of the President of the Republic of Kazakhstan in a month;
2) to provide in Administration of the President of the Republic of Kazakhstan information on course of execution of the Program in the terms and procedure established by the Presidential decree of the Republic of Kazakhstan of March 4, 2010 No. 931 "About some questions of further functioning of System of state planning in the Republic of Kazakhstan".
3. To the central and local executive bodies, and also state bodies, directly subordinate and accountable to the President of the Republic of Kazakhstan to take measures for program implementation.
5. Declare invalid the Presidential decree of the Republic of Kazakhstan of April 4, 2014 No. 786 "About the State program of water resources management of Kazakhstan and entering of amendment into the Presidential decree of the Republic of Kazakhstan of March 19, 2010 No. 957 "About approval of the List of state programs" (SAPP of the Republic of Kazakhstan, 2014, No. 25, the Art. 189).
6. To impose control of execution of this Decree on Administration of the President of the Republic of Kazakhstan.
President of the Republic of Kazakhstan
Approved by the Presidential decree of the Republic of Kazakhstan of February 14, 2017 No. 420
The state program of development of agro-industrial complex of the Republic of Kazakhstan for 2017-2021
The assignment of the President of the Republic of Kazakhstan given at the enlarged meeting of the Government of the Republic of Kazakhstan of September 9, 2016
Ministry of Agriculture of the Republic of Kazakhstan
Ministry of Agriculture of the Republic of Kazakhstan, Ministry of national economy of the Republic of Kazakhstan, Ministry of Finance of the Republic of Kazakhstan, Ministry for Investments and Development of the Republic of Kazakhstan, Ministry of Education and Science of the Republic of Kazakhstan, Ministry of Labour and Social Protection of the population of the Republic of Kazakhstan, Ministry of Internal Affairs of the Republic of Kazakhstan, Department of Energy of the Republic of Kazakhstan, Ministry of information and communications of the Republic of Kazakhstan, akimats of the cities of Astana and Almaty, areas
Ensuring production of the competitive products of agro-industrial complex demanded in the markets (further - the AIC)
1) involvement of small and average holdings in agricultural cooperation;
Achievement in 2021 of the following indicators:
The total expenses provided in republican and local budgets on program implementation in 2017-2021 will constitute all the 2nd 374, 2 billion tenges (the Republic of Belarus - 1 216 billion tenges *, MB - 904 billion tenges *, other sources - 306, 2 billion tenges), including:
in total - 359, 7 billion tenges;
The Republic of Belarus - 198, 2 billion tenges;
MB - 144, 5 billion tenges;
other sources - 17, 0 billion tenges;
in total - 397, 9 billion tenges;
The Republic of Belarus - 202, 0 billion tenges;
MB - 151, 0 billion tenges;
other sources - 44, 9 billion tenges;
in total - 429, 4 billion tenges;
The Republic of Belarus - 207, 9 billion tenges;
MB - 158, 4 billion tenges;
other sources - 63, 1 billion tenges;
in total - 558, 8 billion tenges;
The Republic of Belarus - 281, 6 billion tenges;
MB - 193, 6 billion tenges;
other sources - 83, 6 billion tenges;
in total - 628, 4 billion tenges;
The Republic of Belarus - 326, 3 billion tenges;
MB - 204, 5 billion tenges;
other sources - 97, 6 million tenges
* - the amounts will be specified according to the government budget for the corresponding financial year
The agrarian and industrial complex is one of important sectors of economy which creates food and economic safety of the country, and also the labor and settlement potential of the rural territories.
The AIC of the Republic of Kazakhstan (further - RK) has good perspectives for further development: export line items of oily, meat sectors amplify, and on grain and flour Kazakhstan in the shortest possible time was among the largest exporting countries in the world. Membership of Kazakhstan in the Eurasian Economic Union (further - EEU) and the World Trade Organization (further - the WTO) creates opportunities and at the same time imposes high requirements of competitiveness as on internal, and the foreign markets. In this regard the role of state regulation of the AIC is extremely important.
For the period independence nine program documents on the basis of which state policy in the field of the AIC was implemented were developed: The program of social and economic development "Aul" for 1991-1995 and for the period till 2000, the Conceptual development program of the AIC for 1993-1995 and till 2000, the Development program of farm-production for 2000-2002, the State agrofood programme for 2003-2005, the State program of development of the rural territories for 2004-2010, the Concept of sustainable development of the AIC for 2006-2010, the Program of first-priority measures for implementation of the Concept of sustainable development of the AIC of RK for 2006-2010, the Development program of the AIC for 2010-2014 and the Program for development of the AIC in RK "Agrobusiness — 2017".
For the purpose of agricultural production growth in volumes with emphasis on the most demanded types of food and development of export of the processed agricultural products, during the forthcoming period it is necessary to provide the maximum scope of agricultural producers (further - SHTP) with the state support by creating favorable conditions and infrastructure for production of slaughtering, storage and sale of competitive products.
This State program of development of the AIC of RK for 2017 - 2021 (further - the Program) is developed according to the assignment of the Head of state given at the enlarged meeting of the Government of RK of September 9, 2016 according to the strategic objectives of development of RK designated in respect of the nation of "100 specific steps" and Strategy Kazakhstan-2050.
Thus, this Program will be aimed at providing internal requirements of the population by demanded types of agricultural products, determination of purposeful export policy.
The program is developed on the basis of integration of the Program for development of the AIC into RK "Agrobusiness — 2017" and the State program on water resources management of Kazakhstan.
In agricultural industry about 5% of gross domestic product (further - GDP) the countries are created. In 2015 gross production of agricultural industry constituted 3, 3 trillion tenges that in real terms there is lower than the level of 2011 on % 4,1.
Chart 1. Dynamics of gross output of agricultural industry, one billion tenges
In structure of gross output of industry the high share of products of personal subsidiary farms is observed. About 80% of products of agricultural industry made in Kazakhstan are implemented in the form of raw materials, without conversion, and the finished goods have weak competitiveness.
SWOT analysis of industry of the AIC
on the area of the territory Kazakhstan takes the ninth place in the world;
low share in GDP of the country (% 4,8);
possibility of growth in volumes by all types of agricultural products in connection with the growing number and change of structure of power supply of the population;
adverse changes of climatic conditions, instability of weather conditions;
Annual average growth rates of production volumes of provisions in general are not in time behind growth rates of consumption and the income of the population therefore the free niche in the market is filled due to import and its share in internal consumption remains very essential.
Gross release of production of food in 2015 constituted 1, 1 trillion tenges that in real terms there is higher than the level of 2011 on % 12,5.
The main share in structure of production of foodstuff is occupied grain processing industry (% 22,3), milk (% 16,7), bakery (15%), meat-processing (% 13,6), oil and fat (% 7,9), fruit and vegetable (% 7,6) and other industries (% 16,9).
Chart 2. Production of products of conversion of agricultural products in terms of money in 2015, one million tenges
The amount of the foreign trade goods turnover on products of conversion of agricultural raw materials and the food industry of the country in 2015 made 3, 2 billion US dollars that there is 17,7% less than an amount of 2011 (3, 8 billion US dollars).
The export volume on products of conversion of agricultural raw materials and the food industry decreased by % 6,5 (with 1,0 to 0, of 9 billion US dollars)
The import volume in 2015 in comparison with 2011 decreased by 21,6 of % and made 2, 3 billion US dollars.
The high share of import remains on the highest technology productions. On average in five years on products of conversion of animal production the greatest share of import is the share of cheeses and cottage cheese (51%), sausages (46%), canned and meat and cereal meat (40%) and desi (% 36,4). On products of conversion of crop products the greatest share of import is noted on sugar (42%), and taking into account delivery of reed raw sugar import reaches 97%. At the same time production capacities of sugar mills are loaded on % 37,1. Import of fruit and vegetable canned food in 2015 constituted 98,7 of one thousand tons or 84% of internal consumption, in case of load of the companies for conversion of fruits and vegetables at the level of 27%. The import share in internal consumption of fat-and-oil products reaches 30-40%. At the same time, capacities of the oil and fat companies are loaded for 45-50%. The problem of shortage of high-quality raw materials for utilization of capacity is particularly acute for all recycling industry in general. Production
grain and torments are completely provided by internal consumption (see appendix 1 to this Program).
Chart 3. Export, import and balance of products of the AIC, one billion US dollars
The production volume of potatoes processed and tinned was constituted by 0,4 of one thousand tons, import share in internal consumption - 98%. Production capacities of the companies for conversion of potatoes are loaded for 23%.
The domestic market is fresher, the cooled and frozen fish it is evaluated at the level of 70 thousand tons. The import share in internal consumption constitutes 75%.
Capacities of the companies for conversion of fish make 64 thousand tons per year, load - 43%.
Placement of fish processing capacities is tied to large trade reservoirs. The main amount of release falls on Atyrau and Kyzylorda areas.
In 2015 the production volume of the fresh fish cooled or frozen made 24,7 of one thousand tons, fishes of the prepared or tinned 9,4 of one thousand tons.
Export constituted 24,9 of one thousand tons on the amount 52, of 6 million US dollars. Import of fish and fish products constituted 52,2 of one thousand tons on the amount 61, of 5 million US dollars (see appendix 2 to this Program).
Chart 4. Production and sales of products of conversion in 2015, in %
The carried-out analysis shows that at the domestic market of food substantially there is import, and and by those types of provisions which were traditionally made on domestic enterprises, - oil creamy and vegetable, cheeses and cottage cheese, sausages and sugar, fruit and vegetable and canned meat. At the same time the low share of conversion of the agricultural products made in the country and nedozagruzhennost of production capacities of processing enterprises are noted.
In the field of technical regulation of the AIC 12 technical regulations within EEU and lists of standards to them are accepted. Development of 4 more technical regulations of EEU is planned for main types of products of the AIC. These regulations are developed for the purpose of safety of products of the AIC. However there are facts of realization of low-quality products.
One of basic reasons of the current situation is backwardness of system of procurement and promotion of agricultural products from SHTP to the markets, including the companies for conversion of agricultural raw materials. Strengthening of role of intermediaries in realizable network almost completely excluded interrelation of producers and processors of raw materials. Low purchase prices on agricultural products do not stimulate growth in volumes of their production that as a result conducts to low share of conversion of agricultural raw materials, nedozagruzhennost of capacities of processing enterprises and eventually to high share of import of provisions.
Products of small and average domestic SHTP considerably lose on quality and packaging and are not able to compete with foreign suppliers successfully. The organization of own conversion of meat, milk and other products not in power to most farms because of shortage of means and qualified personnel, need of high costs for accomplishment of health requirements, imperfection of the tax legislation. Absence of own retail chain stores which creation and content are available not to each company affects.
The most effective tool of the solution of the specified problems is cooperation of SHTP.
Before adoption in October, 2015 of the Law of the Republic of Kazakhstan "About Agricultural Cooperatives" two models of the mechanism of the state support of development of rural cooperation were effective:
through the Ministry of Agriculture of RK (further - the MCX RK) through JSC Agrarian Credit Corporation by providing preferential crediting under 5% for 5-7 years for creation of rural consumer cooperative;
through the regional joint-stock companies "Social business corporation Oil Company (Ontust_k, Zhetysu, "Ertys", Tobol, "Batys", "Sara Arch", Caspian Sea) by creation of service storage centers (further - SZTs) on providing agroservices to rural consumer cooperatives.
However, despite the taken measures of the state support, rural cooperation did not gain due development.
The analysis allowed to reveal the main problems constraining their development:
mistrust of SHTP and rural population to cooperation because of insufficient work on explanation of benefits of cooperation and mechanisms of functioning of cooperatives;
low professional training of managerial personnel and shortcoming of specialists;
insufficient stimulation of cooperation processes by the state;
violation of the basic cooperative principles (voluntariness, democratic character, 1 member = 1 voice, etc.);
combining SHTP for the purpose of receipt of soft credit, but not for provision of services to the members;
creation of "pseudo-cooperatives" for the benefit of one large-scale farm which is initiator, the pledger, actually the owner of cooperative, the manager of all profit on activities of cooperative as this economy performs purchase and sales of products;
insufficient or illiquid mortgage providing;
lack of stimulation of combining SHTP in agricultural cooperatives, in particular, lack of possibility of net income allocation of cooperative between his members in connection with the non-commercial status of cooperative.
The amount of gross output of crop production in 2015 made 1, 8 trillion tenges that in real terms there is lower than the level of 2011 on % 10,5. The industry share in structure of all gross production of agricultural industry constituted % 55,2.
Cultivated area of crops over the last 5 years constituted about 21 million hectares and changed slightly, the main changes were noted in its structure. The considerable share of crops was allocated for wheat, but thanks to policy of the diversification of crop production directed to leaving from monoculture and expansion of the areas of other cultures, since 2011 crops of wheat were reduced with 13,8 of one million hectares to 11,8 of one million hectares in 2015 (see appendix 3 to this Program).
For the specified years the areas of barley on 578, of one thousand hectares or on 37,6 of %, oats - on 66,3 of one thousand hectares (% 45,2), corn (maize) - on 40,4 of one thousand hectares (% 41,0), oily - on 193,6 of one thousand hectares (% 10,7), fodder - on 1,0 of one million hectares (on % 40,8), ovoshchebakhchevy cultures - on 37,8 of one thousand hectares (% 19,2), potatoes - on 6,2 of one thousand hectares (% 3,4) increased.
Chart 5. Dynamics of acreage for 2011-2015, one million hectares
For 2011 - 2015 years the cultivated area of grain crops was reduced with 16, to 15,0 of one million hectares. For these 5 years annual average collection of grain constituted 18, one million tons that is 10,1% more than similar indicator for 2006 - 2010. At the same time average productivity of grain crops made 12,3 of c/hectare (10,4% more) (see appendix 4 to this Program).
Cultivated area of oil-bearing crops in 2015 constituted 2,0 of one million hectares or 9,6 of % of total area under crops. In comparison with 2011 the specific weight of sunflower in total area of oily decreased by 15,6 of percent points, at the same time the share of colza increased by 3,6 of percent points, flax - on 13,4 of percent points, soy - on 1,3 of percent points (see appendix 5 to this Program).
In 2015 the area of feed crops constituted 3,5 of one million hectares that there is 40,8% more than the level of 2011. The share of acreage of feed crops to total area under crops constituted % 16,6 against % 11,8 in 2011.
For the specified period of the area of perennial grass increased on 16,1 of %, annual grass - in time 3,3. However, total yield of feed crops is insufficient for ensuring requirement of livestock production (see appendix 6 to this Program).
From 2011 for 2015 the cultivated area of vegetable cultures increased by % 8,4, at the same time production increased by % 23,9. The import share in internal consumption in 2015 constituted 11% (see appendix 7 to this Program).
Chart 6. Disposition of sown area and total yield of oil-bearing crops on average for 2011-2015
The area of constructions of glass-covered ground in 2015 constituted 967, hectare, total yield of hothouse vegetables - 147,7 of one thousand tons that on 120 thousand tons it is more, than in 2011. Security of the population in hothouse vegetables during off-season makes 60%.
In 2015 the cultivated area of potatoes constituted 190,6 of one thousand hectares, total yield - 3 521,1 thousand tons that also 14, of %, respectively there is more than the level of 2011 on 3,4 of % (see appendix 8 to this Program). At the same time potatoes made by large SHTP completely go for the markets of the cities, seeds and export.
In 2015 the areas of fruit cultures and vineyards constituted 57,5 of one thousand hectares, total yield - 280, one thousand tons that the % and 19,2 of %, respectively there is more than the level of 2011 on 5,. The specified amount allows to provide requirement of the population of the republic for 54%, the deficit is covered at the expense of import products (see appendix 9 to this Program).
In 2015 the cultivated area of sugar beet constituted 9,2 of one thousand hectares that there is 49,5% less than the level of 2011. For the period 2011-2015 the annual average production volume of sugar beet made 122,9 of one thousand tons that on 99,5 of one thousand tons or 45% it is less in comparison with indicator for 2006-2010. Because of insufficiency of production volumes of sugar beet reed raw sugar by amount of 255 thousand tons annually is on average imported to the republic (see appendix 10 to this Program).
Production of seed cotton is concentrated in the Southern Kazakhstan area. Within the taken measures for diversification from 2011 for 2015 decrease in acreage of cotton constituted 61,3 of one thousand hectares or 38,2 of %, total yield of seed cotton decreased by 62,1 of one thousand tons or 18,5 of % in case of annual average productivity of 25,9 of c/hectare (see appendix 11 to this Program).
In structure of production costs of crop products to 70% occupy the costs which are directly influencing productivity (seeds, fuels and lubricants, fertilizers, remedies of plants and fixed asset depreciation).
In 2016 production costs of SHTP on 1 hectare of cultivated area of grain crops (wheat, barley, oats) average 31657-36834 tenges on hectare, corn on grain - 114488 tenges, oily - from 26487 tenges (colza) to 40159 tenges (sunflower), sugar beet - 215407 tenges.
In the republic production and the realization of seeds of crops are enabled by 362 certified producers of seeds, at the same time the vast majority (74%) is engaged in production of seeds of grain crops, 66 subjects, to fodder herbs - 55, to corn - 9, to sugar beet - 2 are certified for oil-bearing crops. In this regard the amounts of seeds of the specified cultures made in the republic do not cover the need for them and the considerable share of import of seeds is observed.
Chart 7. Share of the crops sowed by seeds of different reproductions, %
Due to the change since 2015 of the mechanism of subsidizing of seed farming with transition to subsidizing of seeds of the 1st reproduction on the minimum regulations the share of the crops sowed by elite seeds decreased. So, in 2011 this indicator constituted % 4,4, in 2014 - % 6,3, in 2015 - % 3,4 (see appendix 12 to this program).
The area of introduction of organic fertilizers in 2015 constituted about 69 thousand hectares that there is lower than the level of 2011 on % 29,1. Annual need of the republic for organic fertilizers in case of the arable land of 21-22 million hectares makes about 100 - 110 million tons in case of scientifically based regulation of introduction of 5 tons/hectare.
Chart 8. Dynamics of use of fertilizers
On average for 2011-2015 it was annually brought procedure for 109,1 of one thousand tons of fertilizers in active ingredient. The annual need of agricultural industry for fertilizers makes 1,0 of one million tons in active ingredient or procedure for 2,5 of one million tons in physical weight. At the same time 48%, on share of phosphoric - 51%, on share of potassium fertilizers - 1% fall to the share of nitrogen fertilizers (see appendix 13 to this Program).
Chart 9. Dynamics of subsidizing of crop production, one billion tenges
Instruments of subsidizing in crop production are directed to pogektarny subsidizing of agricultural priority cultures and gardens. At the same time, the analysis showed low performance of this type of subsidizing: first, it does not stimulate SHTP to increase in level of agrotechnologies, productivity and quality of the made products; secondly, often decisions on hectare subsidy are made by members of the interdepartmental commission (further - MVK) without the actual verification of presence of crops; thirdly, SHTP overestimate amounts of completed work (the acreage sizes).
Besides, in crop production the cost of fertilizers, herbicides, bioagents (entomophages) and biological products, seeds, costs for examination of quality of seed cotton and cotton-fiber, and also purchase of sugar beet for production of white sugar are subsidized (see appendix 14 to this Program).
Phytosanitary safety is in the republic at the satisfactory level. Application of bioassay techniques of pest control develops. At the same time, new types of quarantine objects (bacterial burn of fruit-trees, the South American tomato moth) which centers locally increased in recent years are revealed. The area of distribution of quarantine objects and especially dangerous harmful organisms as of 2016 constitutes 5 085,4 thousand hectares (see appendix 15 to this Program).
Actions for carrying out chemical treatments against quarantine objects and especially dangerous organisms, except for quarantine weeds on lands of SHTP, are financed by the republican budget (further - the Republic of Belarus). Actions against harmful organisms are financed by the local budget (further - MB). Fight against quarantine objects and especially dangerous harmful organisms is performed by direct involvement of SHTP in process of ensuring phytosanitary wellbeing.
Chart 10. Dynamics of distribution of separate quarantine objects in the territory of RK, hectare
In industry there are following problems:
1. Insufficient rates of diversification of acreage of crops.
2. Irrational use of lands of agricultural purpose.
3. Non-compliance with recommended scientifically based crop rotations.
4. Insufficient development of seed farming.
5. Insufficient application of SHTP of means of chemicalixation (fertilizers, pesticides, etc.).
6. Low level of technical and technology equipment of SHTP.
7. Low productivity of the main crops.
8. Discrepancy to requirements of the applied technologies, standards, systems of certification and quality management.
9. Lack of works on determination of the sadoprigodny territories with binding to regions.
10. Availability of threat of loss of gene pool of crab apple - progenitresses of all cultivars because of weak accounting, control and penetration into the country of especially dangerous harmful organisms.
11. Absence in the phytosanitary legislation of mechanisms of introduction of prohibitions and restrictions, regulations on carrying out the analysis of phytosanitary risk.
12. Low level of phytosanitary literacy of SHTP on holding phytosanitary actions for fight against harmful, especially dangerous organisms and actions for localization and liquidation of quarantine objects.
13. Increase in risk of introduction and distribution of the quarantine objects which are earlier not registered in RK with expansion of trading partners and goods turnover within membership in EEU and the WTO.
14. Low degree of availability of subsidies to most SHTP.
15. Lack of binding of subsidizing to resulting effect and specialization of regions.
16. Low performance of hectare subsidy.
The amount of gross output of livestock production in 2015 made 1, 5 trillion tenges that in real terms there is higher than the level of 2011 on % 5,1. The industry share in structure of gross production of agricultural industry constituted % 44,4.
As of January 1, 2016 the number of number of cattle in comparison with 2011 increased by 8,3 of %, horses on 28,7 of %, sheep on 1,5 of %, bird on % 8,3.
In production of animal production for 2015 (further - LPH) it is the share of share of personal subsidiary farms on meat of 62%, on milk - 80%, on egg - 26% of total production.
As of January 1, 2016 production of all types of meat constituted 931,0 of one thousand tons, this indicator decreased on % 0,9 in comparison with 2011.
Chart 11. Number of livestock of animals, one million heads
In structure of consumption following the results of 2015 the share of import of beef constituted - 3,7 of %, pork - 3,9 of %, horse-flesh - 3%, mutton - % 0,01 that speaks about the high export potential of these types of products. Despite increase in production of fowl, importozavisimost degree on these products remains high (54%).
The milk manufacture of all types in 2015 constituted 5182,4 of one thousand tons. In structure of consumption of products of conversion of milk the share of import constitutes from 10 to 40%.
Internal production of eggs almost completely covers requirement of the domestic market. Export of commercial egg constitutes about 2% of total production (see appendix 16 to this Program).
The structure of production costs of animal production of 65-70% of costs occupies forages. Cost of production on industrial basis of beef - 870-930 tg for kg, milk for liter - 70-75 tg, fowl for kg - 430-450 tg, eggs (apiece) - 15-15,5 tg, mutton for kg - 690-720 tg, pork for kg - 610-620 tg, horse-flesh for kg - 550 tg.
Within the last five years average productivity of farm animals at domestic SHTP increased, but there is lower than the level of developed countries. For example, the average yield of milk of milk in the country constitutes 2200 kg on milk cow whereas in Canada this indicator is higher, than by 4 times (see appendix 17 to this Program).
Now on one conditional head 14 centners of fodder units are made that is twice lower than zoopractical standard. Production of compound feeds for 2015 constituted 1,2 of one million tons in case of cumulative capacity of the companies - 2,5 of one million tons.
The share of breeding livestock of all types of farm animals and bird considerably increased and following the results of 2015 constituted: the krupnorogaty cattle (further - KRS) - 10,6 of %, sheep - 15,1 of %, pigs - 19,9 of %, horses - 7,9 of %, camels - 13,1 of % and bird - % 17,1 (see appendix 18 to this Program).
Instruments of subsidizing in livestock production are directed to reduction in cost of cost of the acquired breeding animals, costs for conducting selection and breeding work, artificial fertilization of farm animals, reduction in cost of manufacturing cost of products of livestock production (see appendix 19 to this Program).
The amount of the state support of livestock production in 2015 increased in comparison with 2011 by 3 times. Measures of the state support cover all directions of livestock production.
Chart 12. Dynamics of subsidizing of industries of livestock production, one billion
From beef total production subsidizing covered 6%. At the same time more than 70% of production volume of beef are the share of LPH which is not subsidized.
Chart 13. Scope subsidizing of products of livestock production in 2015, one thousand tons
From milk total production subsidizing covered % 4,7. At the same time 80% of production volume of milk are the share of JIPX (see appendix 20 to this Program).
In 2015 248 centers of sharp infectious diseases therefore for number of the areas of Kazakhstan export of animal production was prohibited were registered (see appendices 21 and 22 to this Program).
Chart 14. Epizootic situation by especially dangerous diseases of animals (quantity of cases)
Chart 15. Epizootic situation by chronic diseases of animals (quantity of cases)
In industry there are following problems:
1. Low productivity of farm animals and bird.
2. Insufficient security with food supply.
3. Low share of breeding livestock of animals and bird.
4. Insufficiency of acreage under feed and fodder crops.
5. Irrational use of pastures.
6. Shortage of current assets at the formula-feed companies.
7. Incomplete scope of farm animals veterinary prophylaxis.
8. Imperfection of the veterinary legislation regarding harmonization with the international requirements.
9. Untimely providing regions with means (products) and attributes for identification of farm animals.
10. Incomplete scope of rural settlements high-speed high-quality Internet communication.
11. Low degree of availability of subsidies to most SHTP.
12. Lack of binding of subsidizing to resulting effect and specialization of regions.
13. Lack of priority of products in livestock production industries.
For today the main fish resources are caught in Kazakhstan in natural bodies of water, at the same time the aquaculture is poorly developed. So, the amount of cultivation of fish in 2015 made 0,7 of one thousand tons, and fish crop and other water animals in natural bodies of water - 41,5 of one thousand tons.
Cultivation of fish is performed by more than 75 fish-breeding farms, from them: 42 lake and commodity fish-breeding economy (further - OTRH), 17 pond, 10 industrial fish-breeding farms with installations of the closed water supply (further - UZV), 3 basin and 3 cage fish-breeding farms.
Nevertheless, in industry there are following problems:
1. Neediness of family fish-breeding households of specialized sterns.
2. Lack of information and consulting providing entrepreneurs with modern technologies of cultivation of fish.
Transition to maintaining intensive agricultural industry, wide use of genetically modified organisms (further - GMO), agricultural chemicals, fertilizers, antibiotics and stimulators of productivity of animals exert negative impact not only on the environment and human health, but also on economic and social stability of society in general. By means of the maximum use of biocapacity of the soil, plants, animal the organic agricultural industry is capable to minimize environmental, social and economic risks, and also to give opportunity to villagers to increase the level of the income, to improve quality of life. Production of ecoproducts for the Kazakhstan landowners is perspective, but still insufficiently developed that opens for them new opportunities. It is the innovation direction, and one of its tasks - preserving local traditions and culture, and also use of positive experience of the farming inherited from the senior generations.
Besides, production and realization of organic agricultural products are objective national competitive advantage of the AIC of Kazakhstan.
The Law of the Republic of Kazakhstan "About Production of Organic Products" provides refusal of use of pesticides, synthetic fertilizers, regulators of growth, artificial food supplements, and also prohibits use of GMO. Receipt of organic products is followed by maintenance and improvement of health of the soil, natural ecosystems, minimizes the threats connected with instability of development, creates conditions for health and wellbeing of the population.
The national production system and turnover of organic products shall be compatible to international and consider specifics of agricultural industry of Kazakhstan.
Forming of system of maintaining organic agricultural industry does not mean refusal of industrial farm-production: both organic, and industrial systems of maintaining farm-production can function effectively in parallel each other, being gradually transformed to such agrarian technology which will be able to satisfy the current and possible demands in organic products in the internal and international markets.
The official statistics as of 2016 does not keep account of the companies performing production of organic products.
According to the Kazakh research institution of economy of the AIC and development of the rural territories, in the territory of the republic 29 producers of organic products and 19 companies certified for conversion, storage, transportation and other transactions with organic products act. In 2015 production of organic products constituted about 300 thousand tons from which 62 thousand tons on the amount about 10 million US dollars were exported to Great Britain, Italy, Germany, France, Belgium, the Netherlands, Poland, Russia, Ukraine and other countries (see appendix 23 to this Program).
Development of production of organic products is constrained by the following problems:
1. Absence in the country of own system of certification of production of organic products.
2. Absence in the country of specialized laboratories by product quality determination.
3. Low awareness of SHTP and population on benefits of production and consumption of organic products.
4. Insufficient level of minimization and reuse of waste in the AIC of Kazakhstan.
Based on the analysis of geographical arrangement of Kazakhstan, market capacities of agricultural products, transport availability it is possible to draw conclusion that the countries of EEU, the CIS, China, Iran, Afghanistan and the UAE remain the potential markets.
The exported products leading on amount following the results of 2015 are:
crop products - wheat, barley, corn, maslosemena;
animal production - beef, pork, mutton, fowl.
In general, in structure of import of such countries as Russia, Uzbekistan, Kyrgyzstan and Tajikistan, by separate types of products of crop production products from Kazakhstan occupy more than 86%. So for 2015 from all amount of the imported wheat of Russia wheat share from Kazakhstan constituted % 86,6. In import of Uzbekistan on wheat, flour and maslosemena products share from Kazakhstan constitutes 100%, 99,2 of % and 98,7 of % respectively.
On animal production, considering internal security with national production, beef, pork and mutton have the export potential. The greatest import volumes of these products are observed in such countries as China, Russia, Iran and the UAE. (see appendix 24 to this Program).
The main amount of water resources in Kazakhstan is provided by surface waters in annual average amount 101 km3. From them 56% are created locally, and other 44% at the expense of drain of the cross-border rivers of China, Uzbekistan, Russia and Kyrgyzstan (see appendix 25 to this Program).
Additional sources of sweet water are the underground waters approved to operation inventories of which constitute 15,4 km3 (from them 1,2 km3 in year is got now), desalinated sea waters and other sources.
The total amount of the guaranteed water resources constitutes 23,2 km3 in year, except for necessary for use in the nature protection purposes, providing obligatory overflow to the adjacent states.
In case of adverse climatic and cross-border hydrological situations reduction of surface runoff across Kazakhstan on 11,4 km3 in year by 2040 is in the long term predicted. Forecast decrease in inflow of water on the cross-border rivers by 2040 is observed in two scenarios: the first - neighboring countries completely choose the limit according to agreements or in case of equal division of water resources, the second - current trends on increase in water intake by neighboring countries remain, exceeding the established quota (see appendix 26 to this Program).
Chart 16. Security of the water basins of Kazakhstan, km3
The total amount of water intake in 2015 constituted 22, km 3, including for needs of agricultural industry - 15, km3 in year from which 12,2 km3 in year is taken away for needs of regular irrigation, on the area of 1,35 of one million hectares, and remained 3,3 km3 in year are distributed between agricultural water supply, lemon irrigation, the gulf of haymakings and watering of pastures.
For agricultural consumers of loss when transporting water are explained by low efficiency (further - efficiency) (from 0,6 to 0,65) of irrigational systems. Use of water saving technologies of giving and watering of water in agricultural industry constitutes less than 7% of the used irrigated lands or 95,8 of one thousand hectares. The forecast average amount of water intake for needs of agricultural industry makes 21 km3 in year.
The low cost of service in water supply for the final consumer leads to inefficient consumption of the SHTP water resources and does not induce to use of technologies and crops, effective from the point of view of water conservation, does not allow to provide in full maintenance, operation and repair of water management and irrigational systems.
The water intake amount for needs of the industry makes 3,8 km3 in year from which 3,2 km3 in year constitutes use and 0,6 km3 in year - irretrievable water consumption. By 2040 increase in irretrievable water consumption by the industry to 2,6 km3 in year (on average on % 1,1 in year), caused by increase in production for 4% a year and on condition of annual increase in efficiency of use of water the industry on % 0,5 in year on the existing capacities, and also improvement of efficiency of new capacities in comparison with existing for 30% is expected. Growth is provided, mainly, with the following industries: production and conversion of gas, oil, mining industry, food industry.
Quality evaluation of water resources
Because of pollution of water objects quality of water is unsatisfactory. In 2012 only 13 of 88 reservoirs were classified by indicator of impurity as "net". Besides, data demonstrate that over time the level of pollution of water increases (since 2006 the indicator of impurity of water grew for 8 large reservoirs).
Surface water objects of the republic intensively become soiled the companies of the mining, metallurgical and chemical industry, agricultural industry, municipal services. The contaminating industries annually dump about 50% of water without cleaning that means 1,5-2 km3 the crude drains in year. Because of lagging on availability of systems of water disposal in Kazakhstan only 29% of waste waters of settlements before dumping undergo repurification (in Great Britain 94%, Israel and Singapore of 100%). Also underground waters on sites of arrangement of waste products and consumption are subject to pollution.
At the same time, quality of water of the rivers depends not only on organized dumpings of waste waters behind which constant control, but also considerably from vulgar washout in water sources of different waste (dumps of overburden breeds, ash dumps) is conducted with the territories of settlements, the chemicals which are washed away from fields.
Imbalance between anthropogenous load of water objects and their capability to recovery led to the fact that ecological trouble became characteristic practically of all large basins of the rivers and poses real ecological threat.
Prevention of harmful effects of waters
In years, regular on climatic conditions, water objects do not cause special problems to life of the population and national economy. In years, extreme or close to them, under the terms of forming of water drain even the waterways which are completely drying up in the summer pose in themselves threat of emergence of emergency situations.
The floods caused by spring or spring and summer flood are noted on the rivers practically in all regions of Kazakhstan. The probability of emergence of such situations comes on the rivers of the Southern Kazakhstan in February-June, Southeast and East Kazakhstan on the mountain rivers - in March-July, on the flat rivers - in March-June.
The emergency situations connected with harmful effects of waters can result from deterioration in technical condition of the water retaining and water regulating hydrotechnical constructions (accident on water storage basin Kyzylagash in 2010).
In Kazakhstan there are 643 hydrotechnical constructions having different departmental accessory and pattern of ownership.
On water management objects in connection with long operation and insufficient amounts of the performed rescue and recovery operations there is destruction of the main designs of constructions, silting of water storage basins and the high probability of emergency situations of technogenic nature is created, especially when passing spring high waters and floods.
The shallow cycle of water availability also causes significant damage to national economy, especially agricultural industry.
In recent years for prevention of the emergency situations connected with harmful effects of waters large water management projects, such as construction of the Koksaraysky counterregulator on the Syr Darya River, regulation of bed of the Syr Darya River and northern part of the Aral Sea (the I phase) are implemented.
The analysis of the operating state policy in the water sphere
In Kazakhstan bases of development of water industry in the conditions of the market relations with separation of managerial and economic functions are framed. The basin principle of water resources management is implemented.
For the purpose of creation of the legislation of development of the water sphere, rational and complex studying and use of subsoil, including resources of underground waters the Water code of the Republic of Kazakhstan, the Law "About Subsoil and Subsurface Use", and also the relevant bylaws are accepted.
In the field of management and regulation
In the field of water resources management it is noted:
Lack of necessary coordination between different functions of the interested state bodies, and also transparency in system of observance of normative requirements from the organizations performing operation of infrastructure facilities, municipal services, industrial enterprises, water users, sufficient monitoring system and control.
The fragmented property on objects of water management infrastructure and the indistinct scheme of decision making concerning investments results in lack of system and integrated approach taking into account interests of all industries during the planning and design of actions in the water sphere.
Insufficient inventory count of infrastructure facilities at all levels result in lack of due reasons for decision making in the field of planning and investment, and also to limited understanding of risks in the field of water supply and quality of the water resources arising in connection with depreciation of water management objects.
The insufficient number of the personnel having necessary skills and abilities in the field of water resources management, and also personnel in inspection services.
In the field of tariff setting
Lack of essential measures for stimulation of water conservation in case of the current levels and structures of rates in agricultural and municipal services, the industry is the reason of low performance of water consumption. Now costs for water constitute less than 1% of cost of the main crops (% 0,9 for wheat, % 0,1 for cotton) that it is significantly less, than in other countries (4-13% for wheat, 2-10% for cotton in such countries as India, the People's Republic of China, Australia, the Republic of South Africa, the USA and Israel). In absolute expression the current price level on water in agricultural industry is one of the lowest in the world, is 2-10 times less, than in such countries as Australia, Great Britain, the People's Republic of China, Greece, and 20 times less, than in Israel. Besides that the rate for water for the final consumer is extremely low (the average rate constitutes 0, tenge/m3 in agricultural industry), it does not stimulate effective consumption of water resources. The current rates provide uniform rate in comparison with the rates increasing in process of increase in demand, or depending on technology of irrigation and do not provide any economic incentives of effective water consumption. Besides, some tariff subsidies represent the negative incentives inducing to use of technologies and crops, inefficient from the point of view of water conservation (for example, 50% of subsidies for irrigation of paddies).
Price level for industrial consumers varies within 120-260 tenges for m3 and, thus, is comparable with the price level applied in other countries. The used tariff level covers all-in cost of providing with water (capital expenditures and operating costs). In addition to water supply cost covering, industrial consumers are, as a rule, forced to subsidize utility consumers: in the city of Semey the rate for industrial consumers covers 186% of all-in cost (including operating costs and capital expenditures, but not including investments on necessary upgrade) whereas rates for utility consumers cover only 62% of all-in cost. The current rates for industrial enterprises are connected only with water consumption level that practically does not create incentives for use of returnable water consumption and turnover use of water.
Rates for utility consumers rather low and usually not completely cover operating costs (for example, in the city of Semey the covering of operating costs constitutes 78%). The average level of rates in Kazakhstan is lower, than in other countries (the average rate in Kazakhstan constitutes 0, the 5th US dollar in comparison with average rate 1, 2 US dollars in a number of such countries as Russia, Ukraine, the People's Republic of China, Australia). Now the average amount of the account on fee of economic and drinking water supply constitutes all 0,2 of % of average earnings of household in comparison with average value of 0,8 of % in other countries (in Russia - 0,5 of %, Germany - % 1,1).
As a result of low price level water is perceived as free resource, and most of consumers do not try to use water economically. It leads to low performance of use of water resources by end users and unproductive expense from agricultural consumers and the population. In the industrial sector the current rates for water consumption provide only insignificant economic incentives for investment of means into water saving technologies.
Rates for water disposal services also do not provide sufficient stimulation of decrease in extent of pollution and activated sludge process. Rates for waste waters for the industry do not depend on quality of water and extent of its cleaning. Despite availability in Kazakhstan of in details developed techniques, their application is complicated by lack of permanent and universal monitoring of quality of water and the weak mechanism of compensation of damage. The regulatory base regulating quality of waste waters in Kazakhstan considerably lags behind other countries.
In agricultural industry rates for waste waters are not applied owing to what there are no incentives for maintenance of drainage systems.
Forming of the control system of water consumption across the nation for the purpose of implementation of planning and management requires universal providing with metering devices. For today the utility sector is provided with them only for 80% (from the number of connections), nevertheless, their considerable part is worn-out (there are in operation more than 10 years), and their servicing and replacement are carried out insufficiently often.
Providing with individual metering devices constitutes less than 30% that creates additional obstacles for stimulation of water conservation among final consumers by means of rates.
In agricultural industry the current level of providing with metering devices constitutes less than 60%, at the same time the most part of technologies of carrying out measurements became outdated therefore more than 30% of total amount of water consumption are not measured. Besides that accounting of water consumption in agricultural industry incomplete, measurements are often performed manually, and data are stored at the local level. It makes impossible management system by water economy according to the principle by which there live developed countries: "consume and pay".
Cross-border cooperation in the context of water safety of the Republic of Kazakhstan
Owing to geographical arrangement of the Republic of Kazakhstan drains of 7 of 8 river basins are created in neighboring states (the People's Republic of China, the countries of Central Asia, Russia) and have cross-border character.
Considering that 44% of water fund are replenished at the expense of external sources, the question of cross-border cooperation in the context of water safety of the Republic of Kazakhstan is very important and requires strategic and integrated approach.
In this regard, along with the solution of internal matters of water resources management important effective interaction with the People's Republic of China, Russia, Kyrgyzstan, Tajikistan and Uzbekistan in the field of use, protection and water division of the cross-border rivers, and also with the organizations of the UN system and other international organizations and the countries in the field of experience exchange of water resources management, water conservation and the water legislation, attraction and implementation of advanced technologies is.
Positive tendency is the cooperation of Kazakhstan on Chu's rivers and Talas: The Chu-Talas commission created in 2006 is example of the functioning joint body within the bilateral agreement. The Chu-Talas commission became the model tool by means of which the countries located below on current of the rivers can take part in management of the dikes and other hydrotechnical constructions located in the territory of the countries which are above on current.
As other positive example of cross-border cooperation it is possible to call the bilateral agreement signed between the Government of the Republic of Kazakhstan and the Government of People's Republic of China about protection of quality of waters of the cross-border rivers signed in 2011.
Kazakhstan is the party of a number of international agreements with the adjacent states, and also international conventions. The realization of regulations of agreements with the adjacent countries is enabled within the intergovernmental commissions.
In industry of water economy there are following problems:
1. Unsatisfactory technical condition of water storage basins, main and distribution ducts of water management and hydromeliorative value.
2. Imperfection of normative requirements to water conservation and control on use of water resources.
3. The current value of service in water supply (rate) does not meet the requirements of effective content, maintenance and development of water management systems.
4. Unsatisfactory condition of accounting of water and insufficient stimulation of water conservation.
5. Balance sheet dissociation of irrigational infrastructure within one irrigated array.
6. Shortage of water storage basins for accumulation of thowing waters.
7. Tendency of growth of material damage from harmful effects of waters owing to floods, floods, change of coast of water objects, flooding of the territories underground waters, bogging and salinization of lands, water erosion, lack of water.
8. Weak material equipment of the companies for operation of water management constructions of state-owned property.
9. Low performance of repeated and turnover water consumption in the industry.
Total area of agricultural holdings of Kazakhstan constitutes 177,8 of one million hectares, including pastures - 146,9 of one million hectares, ploughland and deposit - 26,7 of one million hectares, haymakings - 4,2 of one million hectares (see appendix 27 to this Program).
Following the results of inventory count of 2012 - 2014 7,4 of one million hectares of not used lands, including arable lands - 0,9 of one million hectares, deposits - 1,2 of one million hectares, haymakings - 0,08 of one million hectares, pastures - 5,2 of one million hectares, long-term plantings - 0,01 of one million hectares was revealed.
From million hectares of lands which are not used by 7,4 development by former land users of 3,36 of one million hectares is begun, lease agreements on 3,0 of one million hectares from which it is involved in agricultural turnover of 1,7 of one million hectares are terminated (see appendix 28 to this Program).
In all regions of the republic the steady tendency to quality degradation of lands, decrease in content of humus, nutritive matters, specific structure of vegetation and its productivity are noted that reduces farm-production potential (see appendix 29 to this Program).
Events for increase in fertility of arable lands and watering of pastures are not fully held.
Following the results of 2015 soils with low content of humus (less than 4%) in structure of ploughland on rain crop constituted 14,6 of one million hectares or 72,8 of % of the area of the inspected ploughland, with the average content of humus (4 - 6%) - 5,3 of one million hectares or 25,9 of %, high (more than 6%) - 0,3 of one million hectares or 1,3 of %. In the conditions of irrigation farming low-secure are 0,8 of one million hectares or 98,2 of % of the area of the inspected ploughland, average income - 15,05 of one thousand hectares or 1,8 of %.
Soils with low content of easily hydrolyzable nitrogen occupied the space of 11,3 of one million hectares or 55, of % of the area of the inspected rain crop ploughland, with average - 4,4 of one million hectares or 22, of %, with high - Ploshchad 4,5 of one million hectares or 22,2 of %. In the conditions of irrigation farming low-secure are 0,8 of one million hectares or 89,5 of % of the inspected arable land, average income - 0,03 of one million hectares or 3,5 of % and prosperous - 0,06 of one million hectares or 7,0 of %.
In structure of rain crop it was the share of the soils low-provided with mobile phosphorus 9,3 of one million hectares or 46,2 of %, on average income - 7,9 of one million hectares or 39,5 of % and on prosperous - 2, to one million hectares or 14,3 of %. In the conditions of irrigation farming of the soil with low content of mobile phosphorus occupied the space of 0,2 of one million hectares or 26,2 of %, with average - 443,2 of one thousand hectares or 51,6 of % and with high - 190,7 of one thousand hectares or 22,2 of % of the inspected arable land.
On exchangeable potassium arable lands in the conditions of bogharic agriculture are provided as follows: are low provided - 1,9 of one million hectares or 9,4 of %, vysokoobespechena - 16,4 of one million hectares or 81,4 of % of the inspected arable lands. In the conditions of irrigation farming of the soil with low content of mobile potassium occupy the space of 0,1 of one million hectares or 13,7 of %, average - 0,3 of one million hectares or 33,3 of % and high - 0,5 of one million hectares or 53,0 of %.
Besides, agricultural activities are followed by considerable emissions of greenhouse gases in the atmosphere from livestock production, generally emissions of methane in the course of enteral fermentation of animals, methane and carbon dioxide gas in case of storage and use of manure, carbon dioxide gas on pastures from excrement of the grazed animals. From crop production emissions of carbon dioxide gas and the nitrogenous compounds connected with entering into the soil of mineral and organic fertilizers, receipt into the soil of biological remaining balance of harvest, release of nitrogen from mineralization of organic substance in the soil, emissions of methane from rice production.
For example, on the ploughland remaining constantly in crop rotation, inventories of soil carbon in the horizon of the soil of 0-30 cm for 2015 decreased on average by 17% by 1990 in this connection increase in scales of farm-production without upgrade of technologies and the relevant management will be followed by strengthening of flows of carbon dioxide gas and nitrous oxide from the soil of the arable and pasturable lands.
High-quality materials soil and the geobotanic inspections reflecting high-quality condition of agricultural holdings provide all 27,8 of one million hectares that constitutes 14,8 of % of total requirement.
At the same time, information on high-quality condition of lands of agricultural purpose is basis for their rational and effective use.
Besides, quality of agricultural holdings directly influences their cadastral (estimative) cost which is determined based on base rates payment for the earth using correction factors. In view of lack of high-quality materials soil and geobotanic inspections coefficients are applied on the materials made till 1990.
Results of the above-stated inspections along with other types of researches, land management and land and cadastral works provide forming of data of the state land cadastre (further - GZK) to RK.
Maintaining GZK is performed by non-commercial joint-stock company (further - the NAO) "The Government for Citizens state corporation of the Ministry of information and communications of RK. Financing and the organization of works on maintaining GZK are performed by the Management committee the RK land resources MCX.
No. 308 "About modification of the Presidential decree RK of May 6, 2016 No. 248 "About introduction of the moratorium on application of separate regulations of the land legislation" the existing moratorium is extended by the decree of the Head of state of August 18, 2016 till December 31, 2021.
This decision was made according to the offer of the Commission on the land reform created by the order of the Prime Minister of RK and proved by need of receipt of reliable information about quantitative and high-quality condition of lands of agricultural purpose.
For this purpose for operation of the moratorium carrying out the analysis of land fund of the republic is necessary.
Receipt of reliable information about quality of agricultural holdings requires carrying out large-scale soil and geobotanic inspections and bonitation of soils on the area at least 66 million hectares.
Soil and geobotanical maps following the results of the carried-out researches are stored on papers that significantly complicates their use for rendering services in representation of the relevant information to the population and the interested state bodies.
In this regard there is need of transfer available and production of new materials of soil and geobotanical researches in electronic format for possibility of modification during the entire period of their operation, carrying out analyses, tracking of dynamics of changes of parameters of soil and plant cover with forming of necessary references, tables, charts, etc.
At the same time, the annual amount of financing from the Republic of Belarus on holding the above-stated actions does not satisfy the existing need for receipt of up-to-date information about high-quality condition of agricultural holdings and requires increase.
In the field of land relations there are following problems:
1. Quality degradation of lands and their productivity.
2. Small amount of high-quality materials on soil and to geobotanic inspection of agricultural holdings, appraisal of quality of soils.
3. Lack of up-to-date data for determination of cadastral cost of lands of agricultural purpose.
4. Low level of development of distant pastures in type of their insufficient water content.
6. Emissions of carbon dioxide gas from agricultural industry.
The instrument of investment subsidizing is directed to partial compensation (from 20% to 80%) investment costs on installation and construction works, the machinery and equipment in 19 directions (48 passports). In total since the beginning of realization (2014 - 2015) of this measure of the state support there were prosubsidirovana of 2 729 subjects of the AIC for the total amount of subsidies - 19, 1 billion tenges, the amount of the involved investments constituted 67, 8 billion tenges.
The main share of the involved investments at the expense of investment subsidies is the share of industry of livestock production of 55% (37, to 6 billion tenges), of crop production - 35% (23, 2 billion tenges), for conversion of animal and crop production of 10% (7 billion tenges).
Following the results of two years of realization of this measure of the state support insufficient funding constituted 35, 4 billion tenges.
On the instrument of subsidizing of rates of remuneration on the credits of subjects of the AIC, leasing of agricultural machinery and animals, processing equipment the interest rate for credit/leasing agreements is reduced the price: for replenishment of current assets, acquisition of fixed assets, etc. in national currency - for 7%, in foreign currency - for 5%; for acquisition of agricultural machinery and the equipment in industries of livestock production and forage production, decrease in rate of remuneration in national currency - on 10% per annum and in foreign currency - for 7%.
For 2014 - 2015 subsidizing of interest rate is performed according to obligations of 4 601 subjects of the AIC for the total amount of principal debt 243, by 2 billion tenges, including on 12 254 units of agricultural machinery acquired by subjects the AIC.
On types of activity the main share of participants is the share of crop industry of 48,8 of %, conversion of animal and crop production of 29,8%, livestock production of 7,8 of % and other types of activity of 13,4 of %.
For the purpose of decrease in credit load of subjects of the AIC and risks of their bankruptcy since 2013 measures of financial improvement of obligations of subjects of the AIC are implemented. Conditions of financial improvement provide prolongation of terms of crediting up to 9 years, decrease in rate of remuneration to 14% from which 7% are subsidized from the government budget, and also write-off by financial institutions of penalties and penalty fee.
For 2013 - 2015 in case of realization of financial improvement of subjects of the AIC requests of 404 subjects of the AIC for the total amount of debt of 520 billion tenges are approved. Since 2016 acceptance of new requests for participation in the program of financial improvement is not performed.
2 billion tenges were allocated for subsidizing of interest rate within financial improvement of subjects of the AIC in 2013 - 2014 7,. In 2015 - 18, 9 billion tenges, including 5, 8 billion tenges of means of National RK fund which were completely mastered. For 2016 means in the amount of 24, by 7 billion tenges are provided in the Republic of Belarus. Annually subsidizing of rates of remuneration requires about 20 billion tenges that will constitute 164, 3 billion tenges till 2024.
Chart 17. Dynamics of all-industry subsidies in 2013-2016, one million tenges
On types of activity the main share of the amount of the revitalized debt is the share of crop industry of 73%, livestock production of 2%, conversion of agricultural products of 3% and other types of activity of 22%.
From the total amount of the debt of 72% approved to improvement or 376, 4 billion tenges fall on loans of large agroholdings.
Within subsidizing of insurance and guaranteeing loans of subjects of the AIC the tariff charge of insurance company or the guarantor is subsidized. In 2015 under insurance coverage are lent 3 SHTP, the total amount of the attracted loan constituted 7, 9 billion tenges.
Subsidizing of tax amount on value added (further - the VAT) to procurement organizations is begun in 2016 for the purpose of reduction in cost of products of procurement organization in the amount of the calculated VAT. Payments are made on the amount of 140 million tenges to 15 procurement organizations.
According to National Bank of Kazakhstan, the amount of the issued credits both on industries of economy of RK, and annually grows in agricultural industry. At the same time the share of the credits in the field of the AIC in 2015 constituted 8% that is 54% lower than indicator of 2011.
In 2015 the amount of the credits issued to subjects of the AIC constituted 603, 5 billion tenges that is 61% less, than in 2014.
Chart 18. The amount of the issued credits
As of January 1, 2016 total credit portfolio of banks of the second level (further - BVU) and joint-stock company "The national managing holding "Kazagro" (further - JSC NUH Kazagro) in agricultural industry constituted 1 448, 0 billion tenges, from them 66% fall on BVU and 34% for JSC NUH Kazagro group of companies.
The amount of arrears of subjects of the AIC to BVU as of August, 2016 constitutes 48, 7 billion tenges that is 44,6% less in comparison with similar date 2014.
Chart 19. Amount of arrears of subjects of the AIC to BVU
** - Sharp decrease in the amount of overdue debt in 2015 is connected with effect of program implementation of financial improvement of subjects of the AIC
BVU mainly credit large-scale steady farms for replenishment of current assets on ensuring short-term production process. At the same time the share of agricultural industry in structure of bank crediting is steadily reduced. So, if in 2012 it constituted % 6,2, in 2015 - % 1,9.
In the lending market of agricultural industry the financial institutions of JSC NUH Kazagro providing services of crediting and leasing at the rates of remuneration dominate is much lower than market. As a result, long-term investments in agricultural industry began to depend on public financing generally.
For 2011 - 2015 through the financial organizations which are part of JSC NUH Kazagro from means of the Republic of Belarus 5 billion tenges, from them were allocated 410, to 318 billion tenges in the form of short-term budget credits, 92, 5 billion tenges are directed to replenishment of the authorized capital of the companies.
JSC NUH Kazagro is oriented to investment support of small and medium business. Through JSC Kazagrofinance more than 60% of the equipment in the country are annually acquired. Participation of BVU and other private financial organizations in financing of small and medium business (further - MSB) in the agrarian sector is insignificant.
The operating system of insurance consists of compulsory and voluntary insurance.
The legal basis of compulsory insurance is the Law of the Republic of Kazakhstan "About Compulsory Insurance in Crop Production" (further - the Law) which obliges to insure grain, oil-bearing crops, sugar beet and cotton.
Chart 20. Dynamics of growth of quantity of insurance companies and societies of mutual insurance (SMI)
Now only two insurance companies, the number of societies of mutual insurance work at this market (further - OVS) is unknown for today, officially 14 OBC addressed for compensation of insurance payments. Considerable part of crops are only formally insured by OVS.
During operation of the Law (2006 - 2015) was insured on average 5, of one million hectares of cultivated area a year, from them 558 thousand hectares were exposed to the adverse natural phenomena (10%) (see appendix 30 to this Program).
Voluntary insurance in agricultural industry is applied in imputed form by provision in leasing of the equipment and farm animals. The imputed form is applied to licensed cereal receiving points.
Guaranteeing obligations of subjects of the AIC to financial institutions is performed mainly by social business corporations (further - joint project company) and BVU.
BVU and joint project company for release of guarantees the fee on average from 1% to 7% of the guarantee amount is charged.
The joint-stock company "The Food Corporation national company (further - JSC Prodkorporation Oil Company) under guarantee of joint project company for 2011 - 2016 was financed by 9 063 SHTP for total amount 85, in 8 billion tenges.
In the field of financial measures of the state support there are following problems:
1. Low degree of availability of the credits and subsidies for most SHTP.
2. Lack of binding of subsidizing to resulting effect and specialization of regions.
3. Focus of investment subsidizing on large-scale productions in case of unavailability to small SHTP and weak control of execution of target indicators.
4. Subsidizing of rates of remuneration when crediting subjects of the AIC, leasing agricultural machinery and animals, processing equipment does not stimulate BVU and the leasing companies to decrease in loan interest rates and leasing.
5. Risks of repeated emergence of problems of non-execution of obligations on loans and bankruptcy threat, despite financial improvement.
6. Lack of due interest of insurance companies and guarantors to the mechanism of subsidizing of insurance and guaranteeing loans of subjects of the AIC because of high credit risks of industry.
7. Imperfection of the mechanism of subsidizing of VAT amount to procurement organizations: subsidies are paid following the results of year; subsidies are considered as a part of gross annual income that reduces share from realization of the agricultural products which are the main condition of subsidy payment
8. Shortage of liquid mortgage providing in the rural zone.
9. Dependence of SHTP on sufficiency of financial resources in the crediting organizations of JSC NUH Kazagro.
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