Atameken Chamber chief: Food import substitution must be viewed from the security point of view
High imports content is taking its toll on high prices, National Chamber of Entrepreneurs Chief Timur Kulibayev says, the Atameken Chamber of Entrepreneurs website has informed.
“We are still greatly influenced by the import of inflation. Prices for food products imported to the country for the currency are instantly affected by tenge swings, which in turn impact on inflation. Given the industrial and economic security of the country, it is necessary to develop the domestic output of food products based on potential import substituting niches,” said Timur Kulibayev.
According to the official date, in 2018 the import share rose from US $3.4bn to US $3.6bn. However, the meeting’s participants note that Kazakh agrarians could cut the import share by supplying domestic products such as milk and dairy products, poultry meat, eggs for roughly US $1bn.
Notwithstanding the evident potential of Kazakhstan’s agro-industrial complex, there are said to be some limiting facts as a subsidy system introduced in the early 2000s has not produced the hoped-for results. The reason is the lack of “pull” factors. State support is mostly received by large- and middle-sized enterprises.
The statistic date for the last three years fixed the increase in prices for imported goods by one-third, including sugar, butter, cheese, and so on.
The Atameken National Chamber of Entrepreneurs aims at creating equal conditions for small enterprises and cooperatives, with State support intended to motivate farmers to produce effectively and introduce new technologies.
The Chamber chief is sure that the Atameken National Chamber of Entrepreneurs should be in a list of the country’s key areas of development. It is necessary to consider a full range of support measures to achieve results from personnel issues and employment to subsidies and science’s integration into the agro-industrial complex and agriculture.
“There is a need for engaging the rural population, half of the total population, in year-round works with permanent income. Rural employment is not only about agriculture but also SME services, processing, marketing goods and services to neighboring districts and regions. The ongoing screening will enable to reveal the key niches and possibilities for new production facilities and the sphere of services. The major role could be played by enterprises in the deep processing of agricultural commodities. It is necessary to carry out comprehensive work to develop villages with all necessary social infrastructure: roads, hospitals, schools, sports facilities, and so on. It is significant to increase living standards in rural areas so that rural persons feel comfortable, and when young agronomists, veterinarians, engineers, and mechanizers once got grants return to do compulsory community service, they receive accommodation, loans for settling, as well as to create conditions,” the National Chamber of Entrepreneurs chief offered.
He also spoke of recovering the experience in agricultural science in Kazakhstan. Despite the presence of the scientific institutions and universities, Kazakh science does not produce due results and requires a major overhaul. First off, public funds, as well as funds from other sources are needed, as well as better performance of experienced farms in testing and adapting new types and technologies to reach best results.
The experiences of the countries where agriculture is developed well will be useful for Kazakhstan, as well as investments. For instance, the Kazakhstan-Germany Business Council has credit funds that could be allocated to deep grain processing projects. German investments will allow for an exchange of best practices, technologies, and marketing agricultural goods in the EU.
During the meeting, Chamber Chief Timur Kulibayev tasked the Atameken Chamber of Entrepreneurs Committee to discuss all proposals to deal with problematic issues together with all associations, as well as to elaborate a common position for further discussion at the competent authorities and Government level.
The Chamber of Entrepreneurs represents interests of small, medium and large businesses, covering all the areas of entrepreneurship, including domestic and foreign trade. The Atamekеn NCE’s mainly focuses on protecting business interests and ensure wide coverage and engagement of businessmen in creating a legal framework for business. Among its activities is the enhancement of the investment climate, stability and development of the country’s business environment both for national and international investors.
Photo credit: Atameken National Chamber of Entrepreneurs
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