Deputies predict collapse of new dairy farms

At the government hour, Majilis deputy Bolatbek Aliyev commented on the Ministry of Agriculture's grandiose plan to finance the construction of dairy farms for import substitution, reports World of NAN.

Recall, the state is going to finance the construction of dairy farms at 2.5% per annum for 10 years. This year, 100 billion tenge was allocated for this purpose. However, it is still unclear how the new enterprises will be able to compete with products from Kyrgyzstan, Russia and Belarus.

"Today, milk costs 70 to 130 KZT on the stock exchange in Russia, and in our markets it costs more than 200 KZT. How do you try to block milk from neighbors, when we have open borders and no protection at all. Wouldn't we then have to save these billion-dollar projects after a certain period of time?" the deputy wondered.

The risks for farmers are of course huge because they take loans of up to 8 billion tenge for the construction of dairy farms. And how will they be able to cover these debt obligations if they face with price dumping.

It should be noted that the Vice-Minister of Agriculture Yerbol Taszhurekov could not give an answer on how they will protect local producers from price dumping. Therefore, the situation remains unclear and the future of new dairy farms is in a precarious position.

Смотрите больше интересных агроновостей Казахстана на нашем канале telegram, узнавайте о важных событиях в facebook и подписывайтесь на youtube канал и instagram.