M. Baktibayev: we need preferential loans for fodder to prevent the loss of livestock

Due to the tense situation with fodder in the country, some experts predict an increase in wholesale prices for meat.  Some managed to voice the amount of 4-5 thousand tenge. President of the Meat Union Maksut Baktibayev does not agree with this assessment, he believes that prices will not rise above 2-2.2 thousand tenge per kilogram, reports World of NAN, referring to LS.

"We live and work in the world market. There is always meat at a competitive price from Belarus and Brazil. It will substitute if we have very expensive meat. There will be more imported. Its price with delivery and customs clearance will not exceed 2 thousand tenge at most, "- said Baktibaev.

Prices for hay rose sharply at the beginning of the season by two or three times. This is due to a decrease in grass and gross volume of hay, according to the interlocutor. However, according to Baktibayev, this is the first reaction of the market, and soon the cost of hay will adjust.

"In fact, there is hay, if you look for it. There are forest lands, there are unused lands. And now people have started to mow those areas that they didn't mow before, going to the market. And somewhere, I think, 80-90% of it will be provided by farmers themselves. The main thing is that hay is physically there, I don't see total deficit, at least in our northern regions. Accordingly, hay prices will go down now, but they will still be higher than last year, "- said Baktibaev.

At the same time, the President of the Union noted a sharp rise in the price of barley.

"The main fodder, besides hay, is barley. Now its price reaches 90-95 thousand tenge per ton at the elevator. It's a very high price, if you compare it to what it was before. In the south, it goes up to 150 thousand tenge. Prices have risen 1.5 times," Baktibayev added.

Farmers will now have to reduce livestock to provide enough fodder for the winter, he said. But in the long run, this will lead to the fact that the number of animals will have to be restored for several years.

"The Meat Union suggested that the Ministry of Agriculture urgently allocate preferential loans under a simplified scheme at a rate of 50 thousand tenge per head of livestock to purchase the necessary amount of fodder, which is not enough to prevent the discharge of livestock. If a farmer has no hay, no fodder, they will start cutting livestock for meat and sell it. This will lead to lower wholesale prices, and farmers will again be short on profits. And then, when all this excitement subsides, the next four or five years this herd will have to be restored. It will cost much more, and farmers will have to raise meat prices to recoup investment. Many breeders might just go bankrupt," Baktibayev said.

If farmers spend a lot of money on fodder, they will be forced to recoup the cost through the selling price of the meat, the Meat Union head continued. And that could bankrupt many farmers.

"Right now, our wholesale prices have already dropped. If before they were 1,600-1,800 tenge, now we are seeing 1,400-1,600 tenge. This is bad for farmers, because they won't get the money they need to compensate for their expenses," Baktibayev complained.

The expert suggests several measures to support farmers.

"First of all - issuing soft loans for the purchase of fodder, so that they prevent the reduction of livestock. Secondly, restructuring and prolongation of loans so that this year cattle breeders will save this money and use it for fodder again. And, thirdly, permission to mow lands of forest fund, lands of reserves. The last question Akimats have already decided, "- explained the interlocutor.

But if these measures are not implemented, Baktibaev expects that the wholesale prices of meat could be at least 2-2.3 thousand tenge per 1 kg.

"Well, you can talk about 10 thousand tenge, but no one will buy this meat, imported goods will take us for 2 thousand tenge. We will turn from a cattle breeding country into importers", - said Baktibayev.

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