Kazakhstan is a largest grain producing country in the world, where agriculture sector is the foremost employer for the majority of the population. In country, a high proportion of the population (approx 43%) lives in rural areas. Additionally, incomes of approximately 30% of the economically active population are generated by the employment in agricultural sector.
In Kazakhstan, farms are categorized into three categories: private (or peasant) farms, agricultural enterprises, and subsidiary household plots. Private farms are usually family farms and are significantly smaller than agricultural enterprises. These farms like agriculture enterprises produce commodities generally for sale rather than for the private consumption. Agricultural enterprises tend to be wide-scale operation and are concerned strictly in the commercial production of commodities. Subsidiary household farms are small personal subsidiary plots, which are used to produce crops and livestock chiefly for the personal consumption.
According to study, “Kazakhstan Agriculture Market Trends, Statistics, Growth, and Forecasts” key companies of Kazakhstan agriculture market are involved in a variety of strategic collaborations to augment its market share, such as innovative product launch, tactical collaborations, and regional product launches.
Livestock farming is the traditional sector of country’s agriculture that provides food to people and raw materials to consumer products industry. Livestock products include meat, dairy goods, leather and wool. Country’s major crops are barley, wheat, cotton, rice and wheat. Wheat exports a major source of foreign currency. Kazakhstan country is one of the top ten grain exporters in the globe, exporting to over 70 countries. To enhance livestock efficiency & strengthen the country’s export potential, Kazakhstan adopted novel programs for beef & dairy cattle industries development. The program is specially designed to double the lamb and beef production, with the aim of exporting to Saudi Arabia, China, Iran, and Vietnam. However, the major sector of country’s agriculture is represented by crop production that produces approximately 60% of total agricultural products in the country. The wheat export market is a largest contributor to the republics economy.
The Kazakhstan agriculture market is driven by growth in technological advancements, followed by favorable climate conditions and rise in demand from both domestic and internationally. However, limited investment in agricultural production and restrictions on biotechnology may impact the market. Moreover, improvement in economic conditions, Foray of new companies and growth in technological advancements are key trends for market.
Kazakhstan’s Ministry of Agriculture has developed various strategies to increase crop production in country. The plan focuses mainly on growing yield rather than expanding area. Proposed measures include technology-driven augment in yield through the continued government subsidies for fertilizer, pesticides, herbicides and high-quality seed, introduction of oilseed crops into the rotation mainly sunflowers in the drier areas & rape in the northern or less arid regions, increase in use of reduced tillage that would enable the grain producers in arid regions to reduce the risk of drought & amount of fallow, expansion of sown area through the improvement of potentially productive and increase in pulse area for improving the soil fertility etc. It is anticipated that market will be reached at rapid pace as a result of favorable climate conditions during the forecast period.
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Ankur Gupta, Head Marketing & Communications