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23 august 2021
5 min
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Agricultural economic development

Agricultural economic development

Kazakhstan's economy remains dependent on raw materials. Literally in every message of the Head of State they spoke about the development of industries, which allows the country to get off the "oil needle". But where does Kazakhstan have a promising future? The correspondent of the World of NAN tried to answer this question.

AGRICULTURE IS PROFITABLE.

Over the past eight years, Kazakhstan's agricultural production has maintained a stable position, not exceeding the maximum indicator of 4.7% of the country's Gross Domestic Product.

If we take the example of the United States, where agriculture and food export are most developed, the share of agriculture in GDP is only 0.9%. But we should not jump to conclusions.

According to official data, the U.S. GDP figure in 2020 was 20 trillion 800 billion dollars. If we subtract the share of agriculture from this amount, it will amount to approximately 187 billion dollars. And in Kazakhstan, last year's total GDP was only 163 billion dollars. Thus, agriculture in the United States brought in more money than the entire production of Kazakhstan.

Isn't this an indicator that the development of the agricultural economy can have a positive impact on the country's economy as a whole?

Sergei Zvolsky, a deputy of the Majilis and a member of the Committee on Agrarian Affairs, fully agrees with this conclusion: "Agriculture must become the foundation of our economy. Today the President and the government have set just such goals.

KAZAKHSTAN HAS POTENTIAL.

Kazakhstani agriculture cannot be called highly developed. Thus, according to the assessment of a deputy of the Mazhilis, Kazakhstan realises only 20% of its agricultural potential.

"We produce about 20-22 million tons of grain. The Chinese say: "We can produce 220mln tonnes of grain on your land. Do you see our potential? They do not just say that, they see our industry," explained Sergei Zvolsky.

Indeed, our country has a huge potential for the development of agriculture. So far, according to official figures, the area of irrigated farmland in Kazakhstan is 1.5 million hectares. At the same time, the Ministry of Ecology plans to increase it to 600 thousand hectares this year 2021. In terms of pastures, we rank 5th in the world, which also gives us a definite advantage. Plus, there are huge markets for agricultural products around Kazakhstan.

 

ALL IN THE HANDS OF FARMERS.

According to Marketingcenter.kz there are 17,669 registered organizations in Kazakhstan engaged in agricultural activities (not including forestry and fisheries). Their number is growing every year.

It's no secret that the engine of any progress is businessmen and agriculture is no exception. The authorities of the country do everything to support businessmen of this sector. There are a lot of different programs and strategies. For example, in the framework of the development of agriculture, the state only in 2021 will allocate 779.5 billion tenge.

"Personally, I think that the most favorable conditions have been created for the farmers who really work and move in the right direction. That is, everything is done to ensure that they develop their business. But it is worth understanding that any state has its priorities for development. That is, if they see that the domestic market is in short supply, they try to develop this particular area," said the Speaker.

Today any state pays very close attention to food security issues. Therefore, the development of priority areas is very logical and understandable. And if the businessman is engaged exactly in that direction to which the state gives priority, naturally it will be easier to develop and grow than others.

According to the deputy, if you start a business in agriculture, you should not rely on help from the state, you should work yourself.

"Often people go into agriculture with the idea that it is easy and that they will succeed. But no, to really get into this business a person must be interested in implementing his idea, only then he will develop, but otherwise he will not get any success. No one has ever received a lot of money in agriculture. Any business must have a development strategy for at least 10-15 years ahead," said Sergey Zvolsky.

Kazakhstan has everything for the development of agriculture. The state contributes to this in every way, but to a greater extent everything depends on agribusinessmen. The future of the country's agricultural economy lies entirely on the shoulders of farmers.

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