Updating Agro-industrial Complex Equipment Accelerated Almost Threefold

The results of the agricultural subsidy system audit by the Supreme Audit Chamber were announced at a plenary session of the Majilis of Parliament, Orda.kz reports.

In 2023, agricultural producers receiving subsidies harvested 18.5 centners per hectare in crop production, almost twice the national average (10 c/ha). 

In 2024, the yield increased further - to 25-30 c/ha. Strong growth is also observed in livestock farming. For example, Kazakhstan increased meat supply in poultry farming from 55% to 73%.

The Aytas holding increased production volumes by 5.5 times, and Aulie Ata Phoenix doubled them - from 5 to 10 thousand tons in three years.

In dairy production, the average milk yield was 7,800 liters per year per cow, and for industry leaders, it was 11 thousand liters, which meets world standards. However, in 2021, it did not exceed 4,400 liters per year.

The audit results specify that in 2023, Kazakhstan provided its market with 100% of 10 commodities, including flour, potatoes, meat, and butter. The total provision for 14 key products was 80% and higher, which reduces dependence on imports.

One main achievement is a significant increase in the renewal rate of agricultural machinery. If in 2014 only 2% was renewed (5 thousand machines were purchased), then in 2023, it was already 5.5%. Farmers purchased 22 thousand units of new machinery. 

In 2024, half of the 450 billion tenge in subsidies was spent on financial instruments, mainly to reduce interest rates on loans and leasing. Banks and financial institutions received these funds. Thanks to this state support, farmers received loans at 5%. 

The Supreme Audit Chamber Head, Alikhan Smailov, also noted at the Majilis meeting that the audit results sometimes become grounds for criminal investigations.

Materials on four cases of receiving subsidies for equipment not purchased have already been transferred to law enforcement agencies. They also recorded instances of receiving subsidies for entrepreneurial activity, even though individuals were not registered as entrepreneurs with tax authorities.

Original Author: Maria Kravtsova