00:00Music
00:10Kazakhstan aims to become a food processing hub.
00:13Processed products accounted for 60% of agricultural output last year,
00:17while exports of processed foods rose by 35%, reaching over 2.5 billion euro.
00:23The government now wants value-added products to dominate agricultural exports.
00:29Welcome to East-West Connect.
00:31We're highlighting business and economic opportunities in Kazakhstan and the wider Central Asian region,
00:36connecting with Europe and beyond.
00:38With oil seed processing capacity at 5 million tons per year,
00:42Kazakhstan ranks among the top three suppliers of sunflower meal to the EU
00:47and the world's top 10 exporters of sunflower oil.
00:50It produced 890,000 tons of vegetable oil last year, up 17% from 2024.
00:56The country is also the EU's second largest supplier of durum wheat
01:00and already processes 5 million tons of grain annually.
01:04By 2028, it plans to add 6 million tons of deep grain processing capacity,
01:09focusing on higher-value products such as amino acids, syrups and vitamins.
01:15For more on the country's food processing ambitions,
01:17we spoke to Kazakhstan's Vice Minister of Agriculture, Yerbol Tashjurekov.
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01:50energy ofْ Broadcasting and non- calleboards,
01:51of the agro-industrial complex.
01:53Today, we have formed a particular pipeline of initiatives
01:57that we are monitoring and monitoring
01:59with investors and regions,
02:02where we have set clear periods.
02:04The production power, which we have planned,
02:06will help us to increase the overall
02:09amount of production of the APK
02:12and its next export.
02:14How is Kazakhstan aligned its
02:16food safety regulation
02:18with EU standards?
02:19Particularly in meat, fish and honey.
02:23We increase every year
02:25and look at the requirements
02:29to our export products.
02:31In the last year, we bought
02:33about 7 of the best
02:36research materials
02:37that were accredited
02:39from the European Union.
02:41If we had before
02:43our export products,
02:45including import products,
02:47on 7 components,
02:48now we can provide our product
02:50for 72 components.
02:52This is a quite broad and
02:54thorough control of our production.
02:57In this regard,
02:59we have already
03:01a certificate
03:03and a certificate
03:04for the export,
03:05for example,
03:06for the European Union.
03:07we use meat,
03:09meat,
03:09and now we are prepared
03:11for the export
03:13of our Kazakhstan meat.
03:16for being with us today.
03:20Elsewhere in the sector,
03:21the dairy industry
03:22processes about 2.7 million tons
03:24of milk annually,
03:25while meat processing enterprises
03:28produce 450,000 tons.
03:30Against that backdrop,
03:32one of the sector's leading companies
03:34is expanding its processing capacity.
03:39Kazakhstan's poultry experts
03:40are partly driven
03:41by the ITAS holding group,
03:43which plans to nearly
03:43quadruple total output
03:45to 350,000 tons by 2030.
03:49The group owns Central Asia's
03:50largest poultry farm,
03:51located in Kazakhstan's Akmola region.
03:54The Makinsk poultry complex
03:55produces 90,000 tons of meat per year
03:58and offers 80 products across
03:59the full value chain,
04:01from chilled meat to further processed
04:03and ready-to-cook items.
04:04If you look at the last year,
04:07Kazakhstan exported
04:08only 31,000 tons of meat
04:11but here,
04:12our company is 11,000 tons.
04:15If you say,
04:16who we sell,
04:17in which countries,
04:18it can be called
04:18the Russian Federation,
04:20Kyrgyzstan,
04:21Tadjikistan,
04:22Uzbekistan
04:23and Belarus.
04:24And now,
04:25we are working on it
04:26to expand the market
04:27to look at China
04:29and Central Asia.
04:32The Makinsk poultry farm
04:33was launched in 2015
04:34with support from
04:35the European Bank
04:36for Reconstruction
04:37and Development
04:38and the Baytirek Venture Fund
04:39with a credit line
04:40from the Development Bank
04:42of Kazakhstan.
05:00As Kazakhstan
05:01rubs up production,
05:02the sector is increasingly focused
05:04on expanding capacity
05:05and boosting experts.
05:08to discuss financing for the sector
05:10and how this growth
05:12is being supported.
05:13We're joined by
05:14Marat Yulibayev,
05:15Chairman of the Board
05:16of the Development Bank
05:17of Kazakhstan.
05:20Mr. Yulibayev,
05:21thanks for joining us.
05:22Thank you,
05:23Mr. Yulibayev.
05:23What are the main barriers
05:24to shifting from raw
05:25commodity exports
05:26to deep value
05:28and what conditions
05:29are still needed
05:31to accelerate the sector's
05:32development?
05:32Kazakhstan has abundant
05:34resources of land,
05:36so we have more than
05:36200 million hectares
05:38of agricultural land
05:39and we have more than
05:4025 million hectares
05:42of arable land.
05:43So, we produce a lot
05:46of raw materials,
05:47but primarily grain,
05:49its oil products,
05:51not really processed products.
05:54So, just to give an example,
05:57in terms of grain production,
05:59last year we produced
06:00more than 25 million tons
06:02of grain,
06:02but only one-fifth
06:04had been processed
06:05in Kazakhstan.
06:06And if you talk about
06:07deep processing,
06:08it's only a few percentage percentage.
06:10So, we have a strong base
06:13of raw materials.
06:14And the question mark
06:15how is it going to process
06:16and produce
06:17and to create more value,
06:20additional value products
06:22in Kazakhstan.
06:24And here is a very important point
06:26is to build new production facilities
06:30in Kazakhstan
06:30which is going to use
06:31those raw materials
06:33and create new products.
06:36If the food industry
06:37is to drive growth,
06:39what segments offer
06:42the strongest
06:42long-term financing potential
06:44and what DBK instruments
06:45are currently most in demand
06:48to modernize
06:49food production?
06:50We see a lot of potential there.
06:53We're talking about
06:54deep grain processing,
06:56production of biotanol,
06:58production of lesine,
07:00syrup,
07:00some dairy products,
07:02production of oil
07:03and fat ingredients,
07:05et cetera, et cetera.
07:06where we see strong potential
07:09in Kazakhstan.
07:11Development Bank of Kazakhstan
07:12focuses on two main directions.
07:15The first one, I would say,
07:16we focus on developing
07:17new investment projects.
07:20So, it's long-term financing
07:21to create new production facilities
07:24in Kazakhstan.
07:25And the second direction
07:26is export financing.
07:28So, when the export company,
07:31the local company
07:32want to export,
07:33they potentially could apply
07:34for us
07:35in terms of getting
07:36export financing
07:37in order to help them
07:39to sell their products abroad.
07:42Both directions,
07:43I would say,
07:44are having a strong interest
07:46from the entrepreneurs.
07:49Mr. Gelibayev,
07:50thanks so much
07:50for your time today.
07:51Thank you, Botagos.
07:54That's all for now.
07:55See you in the next episode.
07:56I'll see you.
07:57Goodbye.
07:57Connect.
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