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Report of the Minister of Agriculture at the XII Forum of Interregional Cooperation of Russia and Kazakhstan

Dear Nursultan Nazarbayev, Vladimir Vladimirovich.!

Dear participants of the Forum!

Dear participants of the Forum!

Agrarian sector of Kazakhstan is one of the most important areas of social and economic development of the country. In the agricultural sector accounts for almost one-fifth of all economically active citizens.
In this regard, from the first days of our independence agribusiness defined priority industries, and today, thanks to the transition to a market consisting governance model in the agricultural sector has become economically attractive industries.
Over the past 10 years, the volume of agricultural production has increased almost 4 times. Exports of agricultural products increased by 3 times. The inflow of investments in fixed capital in agriculture has increased from 44 bn. In 2004 to 166.4 billion. Tenge in 2014, or almost 4 times.
(Reference: The volume of gross agricultural output in 2014 totaled 2.5 trillion. Tenge, that in comparison with 2004, an increase of close to 4 times (695.8 million. Tenge) in nominal terms. The issue of livestock production for the period increased 3.9 times crop production – by 3.4 times. The share of investment in fixed capital in agriculture compared with 2004 (44.1 bln) increased by 3.8 times and amounted to 166.4 billion. tenge).
Throughout the time of our agricultural sector becoming a reliable partner of the Russian Federation.
Over the past 10 years, trade in agricultural products and products of its processing between the two countries increased by almost 3 times. Increased volumes of export of Kazakhstan to the Russian market and the import to our country Russian production.
(Reference: trade turnover between Kazakhstan and Russia on agricultural products and processed products for 2014 amounted to 1.80 bln. Dollars. United States, which is 2.6 times more than in 2005 (0.70 bln. Dollars. USA). In including export from Kazakhstan to Russia amounted to 312.7 million. dollars. United States, which is 32.6% more than in 2005 (235.8 million. dollars. USA). Imports from Russia to Kazakhstan amounted to 1.49 billion. dollars. United States, which is 3.2 times more than in 2005 (469.7 million. dollars. USA)
However, of course, much greater potential for cooperation. We have all the prerequisites in order to not only increase the volume of our bilateral trade, but also to develop all areas of cooperation in the agricultural sector.
The regions of Kazakhstan and Russia have traditional agricultural specialization.
In many cases, our products are competing in the Eurasian market. That’s not bad, but here it should be noted that in most cases the production of competing products subsidized by the governments of our countries, that is, in fact, we are reducing the effectiveness of state support for each other, or in other words, financing the trade confrontation.
Defining cross-country specialization and synchronize state support, we would avoid these problems and focus on the development of those industries that are most promising for our countries. prospects to be primarily due to the climatic conditions.
At the same time, we continue to offer a shift in emphasis of state from yellow to green basket.
I would like to lead, in my view, vivid examples of how we have not fully used the potential of the existing mutually beneficial cooperation in the Union.
We offer direct their efforts to the use of various tools for the development of priority sectors of the agricultural sector of each country.
For example, for beef. In accordance with the commitments of the Russian Federation to the WTO in quota rate of customs duty on the import of beef is 15%, out-of-quota rate of 55%. However, the commitments provided for the abolition of quotas. In this case it will set a solid import duties on meat cattle at the level of 27.5%.
Cancel Russian Federation beef import quota regime will enhance the competitiveness of the Russian and Kazakh beef on the Community market.
We have positive experience of mutually beneficial cooperation in the field of export financing selhoztehnkii .In 2013-2014, “KazAgroFinance” were entered into loan agreements with OJSC “Russian Agricultural Bank” and OJSC “Gazprombank”. In 2014 it was purchased 1563 units of Russian agricultural machinery. As in Kazakhstan, the annual demand of agricultural machinery is about 20 thousand. Units.
Crediting “KazAgroFinance”, Russian financial institutions provide access for agricultural production for the Russian Kazakh selhotovaroproizvoditeley.
We offer to continue cooperation in this direction, in order to create more favorable conditions for cooperation, including with regard to cost reduction and increase in terms of funding.
In addition to the positive effects of Eurasian integration, we encountered some problems related to the lack of control on the border of our countries.
One of them is to increase the presence in our markets of counterfeit products.
Along with deliberate misleading consumers about the properties and origin of products, these products directly affects the health of the population and contributes to unfair competition in the food market. It is therefore necessary to actively cooperate in the fight against the manufacturers and sellers of such products.
We should not carry a one-sided fight with the producers and distributors of counterfeit products.United, and mutually recognizing the results of monitoring of such products, and then taking appropriate measures for its removal from the circulation and suppress the production, we can improve the efficiency of our services to combat counterfeiting and forgery.
Special attention in the framework of cooperation between our countries should be paid to logistics relationships.
Carrying SWAP-operations could be mutually beneficial to our countries – Kazakhstan, in terms of reducing transport costs, the Russian Federation at the expense of increasing the share of exports of Russian wheat on world markets.
Also as part of the creation of the union of our countries we are faced with the problem of taking into account the mutual trade turnover . Now, reporting on export-import operations is declarative in nature, that in the absence of customs posts leads to underestimation of the data on import and export products. This complicates the task of forming a real picture of the consumption of products in the country, as well as our trade relations. It even helps the difference in VAT rates between our countries.
It is necessary to accelerate the adoption of measures that will establish a system of reliable accounting of mutual trade, including through the use of specialized information systems.
Also, I would like to highlight one of the problems in the framework of our bilateral cooperation – the area of plant protection. Every year there is a threat of migration gregarious locust pests in the territory of the republic with the border areas of the Russian Federation. One of the factors contributing to this are the differences in the mechanism of financing of locust control activities. For example, in Kazakhstan, these activities are financed from the national budget, and Russia’s only state reserve land are handled by the federal budget, while the land of economic entities – by land users and land owners.
As a result, there is incomplete coverage of the work on the fight against locusts, which has led, for example, this year the aerial to the territory of Kostanay oblast by the Orenburg region.
Therefore, in order to prevent migration of locust pests in adjacent territories, we propose to carry out active work together to:
– Inform each other of outbreaks of mass emergence and spread of locusts;
– Coordination of actions to eliminate hotbeds of mass emergence and spread;
– Monitoring surveys territories.
All sounded me questions, problems of Russian-Kazakh cooperation related not only to the development of agro-industrial complexes, but somehow with the problem of food security in our countries. Together taking steps to address these and other issues, we can better ensure that improve food security.
In our opinion, taking into account the functioning of our countries in a single economic space, there is a need of forming a unified concept of food security. Now we can start the work on a bilateral basis, and then transfer it to the level of alliance.

Thank you for attention!

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