Farmers refuse to build dairy farms

Farmers refuse to build dairy farms

The issue of supporting local producers of dairy and flour products was discussed at the National Chamber of Entrepreneurs, World of NAN reports.

Thus, Zeinulla Salmenbaev the owner of Andas Agro LLP said that it is necessary to suspend all construction of dairy farms, because there is no place to store the milk.

“I built the farm, it's still standing. We are turning the project into a vegetable storehouse, and we will not be involved in milk. Since it is not profitable, nobody needs it, why do it?", the entrepreneur said.

He has already invested about eight billion tenge in the project. According to him, in 2023, dairy products worth $400 million were imported into Kazakhstan. And domestic producers are not protected in any way, and Russia does not allow Kazakh products into the market.

“We are not allowed into Russia at all: they find sticks in the products, something else, where they can no longer prove their case. Also, dairy products from Russia cost the same duties, taxes, and markups as from Kazakh producers. This seems like a big flaw to me. In Belarus there are many relaxations in the tax regime and in the percentage markups of networks. The price premium for their goods needs to be increased, and for ours reduced,” added Marina Reidina, director of EcoDom-Pavlodar LLP.

Entrepreneurs proposed adopting technical regulations for the delivery of milk in 2024. Set requirements for countries exporting products to Kazakhstan that mirror the criteria they impose on Kazakh dairy products and milk, and also build the following proportion of domestic products to foreign ones on the shelves in retail outlets of the Republic of Kazakhstan: 70% to 30%.

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