Agriculture in Kazakhstan and Greenhouse Business

The role of agriculture means a lot for country’s economy. Agriculture is one of the key
sectors of the Kazakhstani economic system. The rich soil and climate provide ideal conditions
for growing wheat, barley, rice, corn, millet and buckwheat. Kazakhstan is the third in grains
production within CIS after the Russian Federation and Ukraine. The climatic conditions favor
vegeculture, melon-growing, to cultivate sunflower, flax plant, tobacco, etc. Kazakhstan has
more arable land per person than anywhere in the world with the exception of Australia.
The Kazakhs have been cattle-breeding since ancient times, and that factor has in general
determined the current agricultural approach of the country. Sheep, horses, camels, cows and so
on, are bred in Kazakhstan. These sources of production are used for meat and dairy products.
The vast territories and availability of fertile land, mainly dry, allow development of crops. The
primary agricultural regions of Kazakhstan are the north-central and southern parts of the
republic.
Kazakhstan is an important producer and exporter of high-quality wheat, it is the main crop.
Average annual production is about 13 million tons, but output is highly dependent on weather
and in recent years has fluctuated between 10 and 17 million tons. Sugar-beet is widely
distributed in the south-east, where there are also many gardens and vineyards. Grain production
is especially important in the north-central region, and cotton and rice predominate in the south
of country also is a major producer of meat and milk.
Aided by good weather and a three-year rural revival program, agricultural output grew by 6.7
percent in 2005 after averaging 1.6 percent growth in the previous four years. The volume of
gross agricultural output in 2014 in the whole country amounted to 7 601 395$ that more than in
the corresponding period of the previous year by 1%.
Subsidizing interest rates is carried out within the Republican Budget Program 227 -
Reimbursement of Interest Rates on Loans (Leasing) for Agriculture Support. There were
adopted numerous state funded sectorial programs on agricultural industry and rural areas
development and support within last 10 years in order to grow up the rural economy in
Kazakhstan. The National holding KazAgro was established in 2006 in order to improve the
industrial state support system. The holding's activity covers a wide range of issues such as state
policy implementation in the sphere of food provision, crediting activity, agriculture insurance,
the development of agricultural markets, rural areas development, etc.
One of the most important points related to the agriculture is greenhouses. They are used in
winter for the production of off-season vegetable crops and for the production of vegetable
transplants for summer crop production. Until the 1990s, Kazakhstan had more than 20 large
greenhouses and operations were expanding. Most large greenhouses were built near cities and
industrial centers during 1970s to 1990s. In this period greenhouses replaced almost all hotbeds
on farms.
Eighty-seven percent of all greenhouses in Kazakhstan have been built in the South
Kazakhstan Region. In 2013 the area under the region’s greenhouses increased to 720 hectares.
South Kazakhstan also gathered a record high vegetable harvest of more than two million tons.
Last year South Kazakhstan exported 300$ million worth of agricultural products, 13 percent
more than planned. Nowadays, off-season vegetable production is focused in Almaty and
Karaganda regions.
 According to the JSC KazAgroMarketing in 2008 there were 108 greenhouses with a total
area of 58, 6 hectares. In 2016, according to Committee of Kazakhstan on Statistics, the used
area of greenhouses was already 1061 hectares. Thus, it has grown up in ten years by 18 times.
It is worth to note, that National Holding “KazAgro” has financed 41 projects for
establishment of greenhouses with a total value of 141 329 000$. 36 greenhouses with the total
area of 119 ha and production capacity of 47k tones were commissioned. Currently, a draft law
on food security is pending in the Senate, specifying the provision for subsidizing greenhouse
vegetables once the law has been enacted.
KazAgro Сompany also supports construction of mini greenhouses via its affiliated
companies: the Financial Agricultural Support Fund and Agricultural Credit Corporation. These
companies have already provided loans to 29 greenhouses with a total capacity of 36.4 thousand
tones of vegetables
Today’s horticulture sector in Kazakhstan has made significant steps towards a smarter high
tech industry using such systems as Greenhouse Irrigation system, Hot water heating system,
Climate & Fertigation control systems. Moisture-saving technologies are widely used in the
country. In Kazakhstan the number of Dutch hyper modern greenhouses has risen in a relatively
short period of time. Vegetable greenhouse BRBAPK LLP is a great example of such a high tech
project in Almaty, Kazakhstan.
It is possible to grow oranges, bananas, coffee, pineapples and other fruits in Kazakhstan even
in winter, through the use of underground greenhouses.
In peasant or private farms, 471,0709 hectares of land were sown with vegetables in
greenhouses. 81,9825 tones of vegetables were collected in this category of farms, with a growth
of 8.1%. In the households the area of sown vegetables was 378.4396 hectares, and the harvest
was 48011,6 tones, exceeding by 5.4% in comparison with the previous year. Agricultural
enterprises planted vegetables in greenhouses on the territory of 185.7 hectares, and collected
29,4411 tones with an increase of 12.2%.
The greenhouse industry of Kazakhstan is only beginning its development and has a vision for
the future as the land for such industry development is available in abundance.
While oil prices reduce and financial sector begin to experience difficulties, agriculture is
considered as one of the promising industries nowadays. It may contribute to sound economic
development and to intensify the further strategy of exports diversification. Furthermore being a
one of the priorities in economic development, agriculture has a huge potential, and great
resources to cultivate most of temperate crops and to grow cattle in different Kazakhstan's
climatic conditions. Agriculture in Kazakhstan has such specific aspects as vast territories and
low density of population, geographical remoteness from sales markets and no access to
seaways.
Agriculture requires the development of the material-and-technical base, introduction of the
new technologies. Kazakhstan almost completely restored the grain production since 1990s, but
still has a decrepit infrastructure of grain storage and transportation, primarily export. The
transshipments storages and transport infrastructures in Kazakhstan are in need of fundamental
changes.

Aigerim Assylkhan
References:
1) http://factsanddetails.com

(Jeffrey Hays - Agriculture in Kazakhstan)

2) http://www.kazakhembus.com/

(Agricultural Sector in Kazakhstan)

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4) https://www.pecad.fas.usda.gov/

(Kazakhstan Agricultural Overview)

5) http://www.hortibiz.com/

(Dutch tech for Kazakh greenhouse sector)

6) http://www.hortidaily.com/article/6885/Greenhouse-agriculture-booming-in-Kazakhstan

(Greenhouse agriculture booming in Kazakhstan)

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(Dmitriy Sheikin, Gaukhar Shinkeyeva - Agriculture of the Republic of Kazakhstan)

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12) Vegetable Production in Central Asia: Status and Perspectives
13) http://www.greenhousesmanagement.com/

(New greenhouse complex will be launched in Kazakhstan)

14) http://tengrinews.kz/