The Ministry of Agriculture plans to replace subsidies for breeding and genetic work with other forms of state support. Discussions are also underway regarding changes to the subsidy regulations for delivering animals to meat processing plants and fattening farms. This information was revealed during a meeting between the head of the ministry, Aidarbek Saparov, and representatives of the meat livestock sector, as reported by a correspondent from the business information center Kapital.kz, referencing the ministry's press service.
The Minister explained that in 2025, the ministry intends to launch a preferential lending program for farmers at a rate of 5% for a period of up to 15 months. Additionally, the possibility of directing funds towards investment loans at a preferential rate is being discussed. During the meeting, farmers raised questions regarding fiscal measures.
“In addition to the actively discussed VAT, it’s important to remember that fiscal tools stimulate the 'whitening' of the agricultural product market. Specifically, this concerns procurement offices, for which tax incentives can provide advantages and stimulate the collection and processing of wool, hides, and fruit and vegetable products,” explained the director of MB4 LLP, Azamat Shalmagambetov.
The Minister emphasized the necessity of detailed discussions on tax changes with government agencies and businesses, and highlighted that measures to encourage the 'whitening' of agricultural product trade are among the priorities. The issue of meat prices also became a significant topic of discussion.
“Previously adopted administrative bans and restrictions have negatively affected the industry. Bans and quotas have led to livestock farming becoming less profitable, and several farmers are ceasing cattle breeding,” said the director of the Republican Chamber of "Angus Kazakhstan," Dauren Salikov.
The Minister noted that the rise in meat prices is primarily linked to the active operations of intermediaries who are exporting livestock through various means.
“We understand that administrative bans are barriers to the development of the industry, but for the opening of markets, particularly for cattle, it is crucial to ensure stability in the domestic market. Solutions need to be discussed, and your proposals will be considered,” said Aidarbek Saparov.
Earlier, the Ministry of Agriculture commented on the results of an audit regarding the effectiveness of subsidies. The ministry noted that during the analyzed period from 2022 to 2023, the audit managed to cover 943 billion tenge, while financial violations were identified amounting to 2 billion tenge, which is 0.2% of the total amount.
Over the past 5 years, approximately 2 trillion tenge has been allocated from Kazakhstan's budget for agricultural subsidies. This was stated by the Chairman of the Supreme Audit Chamber, Alikhan Smailov, during a plenary session of the Mazhilis. “However, a number of systemic problems have limited the effectiveness of subsidies,” he noted.