How will farmers benefit from the establishment of the WDC?

Elbegi Abdiyev, a member of the Public Council for Trade and Integration, deputy chairman of the Union of Trade Networks, told Inform.kz about the benefits of WDCs for domestic farmers, World of NAN reports.

Three types of WDCs will be created in Kazakhstan: storage, trade and distribution.

WDC-storage will be as close as possible to farmers in the areas where their products grow; they will provide services for the acceptance, storage and primary processing (washing, calibration, packaging, etc.) of products for subsequent sale.

"Why will the WDC storage facilities be built next to the fields? It's to consolidate the product and provide logistics. Today, neither the farmer nor the retail chains have such competencies. Thanks to the creation of the WDCs food losses will be reduced. To date, 30-40% of goods are lost due to transportation, storage. If we provide proper storage and effective logistics, I think that losses can be reduced to 10%," explained Elbegi Abdiyev.

The WDCs will be able to receive and store 2.1-2.2 million tons of products per year.

WDCs will be located in the suburbs of regional centers and major cities; they will provide farmers, wholesale traders, distributors, importers and buyers (retail chains, stores and markets, catering, hotels, restaurants, etc.) free access to trading infrastructure for the sale and purchase of products.

"Products passing through the WDC will be traded in a transparent manner. That is, there will be invoices and payments. These measures will take us out of the shadow market, the state will receive more revenue in taxes. Also, the creation of the WDC will lead to the development of export potential. We will be able to produce and export more goods," the expert explained.

Thus, according to him, the share of shadow economy will be reduced from 51% to 31%.

WDC-distribution centers will be located in cities or suburbs; they are designed to provide logistics services for temporary storage (up to 14 days) and distribution of wholesale lots of domestic producers and imported goods for the needs of retail facilities (networks, shopping malls, supermarkets, stores, catering, etc.).

"WDC will not lead to the ruin of small and medium-sized businesses. On the contrary, it will influence the creation of better conditions for the development of domestic producers, especially the agro-industrial complex. Farmers need to create special conditions for the outlet, it is necessary to develop and create conditions for export. WDC can contribute to the development of agro-industrial complex in Kazakhstan, "- summed up the expert Elbegi Abdiyev.

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