food & agriculture
Content1. Country Facts
2. Country Background
3. Food and Agriculture Sector
4. Food and Agriculture Production
5. Food & Agriculture Export
6. Export Subsectors
7. Export Support Measures
8. Useful Links
9. Industry Exhibitions
10. Some Well-Known Export Brands
KAZAKHSTAN KEY AGRICULTURE REGIONS
GDP in 2011 per capita
Exports per capita 2010
2 724 900 km2ninth largest country in the world
16,7 mln. peopleAstana (0.7 million)Almaty (1.5 million)131 ethnicities including Kazakh, Russian and German
tenge (KZT)exchange Rate 1 USD = 150 KZT
Kazakh, Russian11,300 $highest in Central Asia
4000$50% higher than global average
2,2 mln. people
The Republic of Kazakhstan is located at the heart of EuroAsia between dynamic high-growth markets such as China, Turkey, India and Russia. As the 9th largest country in the world larger than the entire Western Europe there is consequently an incredible diversity of captivating landscapes, flora and fauna within the country. Kazakhstan is also the worlds largest landlocked country, bordered by Russia, China, Kyrgyzstan, Uzbekistan and a substantial part of the Caspian Sea. Counterpointing the vast expanse of the country, the major cities Astana and Almaty boast every convenience a visitor could hope for. There is an abundance of five star hotels, high class restaurants and leisure facilities. The capital, Astana, was effectively built from scratch starting in 1996, and is by definition a truly modern city, showcasing an incredible array of breath-taking buildings and stunning architecture.
Since declaring its independence in 1991, Kazakhstan has enjoyed a sustained period of political stability and economic growth. Kazakhstan has a large number of ethnic groups and indeed is thriving as a peace-ful multi-ethnic nation. Perhaps it is this familiarity with variety and difference which accounts for the wonderful welcoming character of the Kazakhstani people. Visitors to Kazakhstan never feel like strangers. It is no wonder that a recent programme on a leading international TV channel characterised Kazakhstan as a country of open hearts, open minds and wide open spaces. In fact, the derivation of the name Kazakhstan is in itself revealing Kazakh meaning free spirited or independent and stan which is land. The land of the free spirited!
Like the rest of Central Asia, Kazakhstan experiences hot summers and very cold winters. During the hot-test months, average daily temperatures are in the high 20s in Astana and Almaty. During the winter months of December, January and February, temperatures are typically below freezing.
Education is a high priority for Kazakhstan, and in 2009, the country ranked first of UNESCOs Education for All Development Index by achieving near-universal levels of primary education, adult literacy, and gender parity. In fact education is universal and mandatory through secondary level and the adult literacy rate is virtually 100%.
Kazakhstans priceless treasure lies in its natural resources. Kazakhstan is one of the worlds most abundant countries in terms of mineral resources. It also benefits from vast energy and agricultural resources. In such a vast yet thinly populated country, it is hardly surprising that there is massive potential for agricultural development. The potential is embellished because of the many different agricultural and climatic environments, which support the cultivation of a wide and diverse range of agricultural produce.
It is testimony to a growing prosperity that since 2000 per capita income has doubled, the unemployment rate has been halved, and there has been a radical decrease in poverty.
Exports are a major catalyst of growth, expanding at an average of almost 20% annually in the last decade, with the rate of increase accelerating over the past few years. During the same period imports have also been increasing at a significant rate, reflecting a growing economy and rising incomes.
The Government of Kazakhstan has set up a number of institutions and initiatives to provide direct support to private businesses towards helping them create and grow new export-oriented high-tech industries.
According to the World Bank Doing Business indicators, Kazakhstan has the most accessible business environment in Central Asia. It registered a ranking of 49th among the 185 countries reviewed, and is steadily improving its relative position.
A Custom Union agreement between Kazakhstan, Russia and Belarus was established in 2010, creating an enlarged open market of 170 million people and signalling a major change in the path of regional integration.
Food and Agriculture Sector
6Source: Kazakh State Statistics Agency
Kazakhstan has a unique comparative advantage in the sector. A small population spread across an area larger than Western Europe means that agricultural land is a plentiful resource.
While there persists a continuing global decline in agricultural land usage, there remains a massive potential to increase the deployment of agricultural land in Kazakhstan.
The low density character of agricultural production in Kazakhstan bestows a natural organic character to the sector.
The sector benefits from a natural compliance with global environmental and food safety requirements Kazakhstan ranks #1 in the World in terms of lowest levels of chemicals application in crop production (just 0.1 tonnes per hectare of cultivated area).
The total area of rural and agricultural land in Kazakhstan is 223 million hectares an area equivalent to 82% of the country.
Because it is such a large territory, Kazakhstan experiences a wide variety of climatic conditions which facilitates a diversity of agricultural production within different regions eg the northern region is particularly conducive to cereal production, the central region to cattle breeding and the southern part is more associated with rice growing and fruit and vegetable cultivation .
An ever increasing demand for food in those major markets which are geographically close to Kazakhstan (China, Central Asia, Russia), while actual supply in those markets is declining.
Kazakhstans developing logistics infrastructure and its unique location between major markets of food consump-tion - China, Russia, the Middle and Near East and Europe.
7Food and Agriculture ProductionThe food and beverages industry represents a substantial part of the economy, generating over US$ 5.16 bln,
which is equivalent to about 25.5 percent of manufacturing output. The sector employs almost 19% of the total manufacturing labour force.
Within the food and agricultural sector alone, there are substantial numbers of enterprises involved in production: 10,860 in agriculture; 933 in fishery resources; 2,683 engaged in food processing of agricultural products; and 586 in processing of non-food agricultural raw materials (textile and tobacco industries). The vast majority of the enterprises involved in food processing are small to medium entities and they account for about 30% of the total number of manufacturing enterprises. In line with the overall development of the sector, labour productivity is growing all the time.
As of January 2012, already 357 of the largest export-oriented agri-businesses of Kazakhstan had attained the ISO and HACCP international standards of quality control. Kazakhstan is a member of the Codex Alimentarius Commission and of the International Organisation of Standardization (ISO). Issues of protection of human health in general and in particular from food-borne risks, which come under the SPS Agreement, are addressed through the Law on Sanitary-epidemiological Safety of Population (2009) and the Veterinary Legislation (2002). The adopted amendments (2009) underline the priority attached to being in total conformity with international safety standards.
The volume of agricultural production is almost 7 million tonnes per year. Average annual growth in food production is 7%.
According to gross volume of food production the milling industry accounts for about 71% of the entire food industry of Kazakhstan. This underpins Kazakhstans position within the Worlds top 10 largest exporters of grain and milled grain products.
The major sectors within the Kazakhstan food and agriculture industry are flour, pastas, rice, meat, dairy produce, mineral waters and beverages, sugar and confectionery, oils and fats.
Food Processing, mln. tonnesSubsectors 2008 year 2009 year 2010 year 2011 year
Flour & macaroni 4,142 4,498 4,615 4,724
Beverages 0,546 0,559 0,743 0,711
Meat & Dairy products 0,459 0,461 0,527 0,581
Oils & Fats 0,179 0,203 0,238 0,239
Sugar & Candy 0,586 0,475 0,46 0,374
Fish 0,028 0,027 0,036 0,021