Kazakhstan changed the system of oilseed production subsidies this year

30 October 2017

Kazakhstan changed the system of oilseed production subsidies this year

Published: Blackseagrain

In the course of his working trip, Kazakhstan’s Prime-Minister assessed the progress of implementing the EFCO ALMATY investment project and the development prospects of the country’s fat-and-oil sector, efko.kz reports.

LLC EFCO ALMATY is now a major Kazakh oilseed crusher and fat-and-oil producer capable of making up to 180 KMT of relevant products a year. EFCO ALMATY’s fat-and-oil cluster comprises a soybean oil extraction plant, a sunoil pressing plant, a plant producing specialized fats and margarines, and a vegoil bottling line.

Within the framework of the Industrial Development Map, the company has invested more than KZT 11 Bl in upgrading its production facilities since 2015. Also, it has introduced state-of-the-art production technologies and entered foreign markets with its finished products.

Reportedly, an important, timely decision has been made on the instructions of the President for solving the problem of feedstock shortages in the fat-and-oil branch within the framework of reforming the agricultural sector. So, from 2017 onwards, the government shall switch from paying subsidies per hectare to paying them per ton of oilseed supplied to Kazakh crushers, at a rate of KZT 4,000/MT. However, this subsidy size is not enough to prevent taking the raw material abroad.

To achieve the above goal, the subsidy rate for growers supplying oilseeds for processing within Kazakhstan needs to be raised to KZT 25,000/MT in 2018. This is the only measure able to protect the national fat-and-oil sector and become an additional financial stimulus for local growers, who will be interested in raising oilseed yields, gross crops and quality.

“Our company intends to further build up fat-and-oil production and exports that will enable Kazakhstan to become a key fat-and-oil supplier in Central Asia as soon as 2025,” said the company head.

Print version