February 4, 2013

Kazakhstan boosts meat production over livestock subsidies' new rules

Through new rules on livestock subsidies, Kazakhstan has announced efforts to boost meat production, including increased funding allocation and reduced payment times on grants.

According to an official message from Kazakhstan's Ministry of Agriculture, the country's Prime Minister, Serik Akhmetov, recently signed governmental decrees approving subsidies, which will be allocated per head of cattle, to support livestock breeding, â„– 35, and subsidies to increase productivity and quality of animal products, â„– 36, which should become the base for a new system of government support for meat producers.

"Their goal is to maximise the provision of state support to farmers, to develop livestock breeding and increase the volume and quality of meat production in the country," said representatives at the ministry.

"In particular, the rules provide a year-round deadline for applications on government subsidies. Subsidies will be made only based on actually produced and sold products, which should be confirmed by relevant documents."

Press secretary of the Ministry of Agriculture of Kazakhstan, Talgat Makhanov, added, "If, previously, a meat producer was forced to wait until the end of the year to receive government grants, it will now take no more than two months, as long as the farmer complies with the requirements, because the timing of payment of subsidies has been significantly reduced. We have also significantly reduced the number of documents that must be attached to the application."

Additionally, subsidies will be allocated per head of cattle, not per kilogramme of carcase weight as before. Compensation for the growing of pedigree bulls in the public herd will rise two-fold to KZT104,000 (US$689). The new rules also include the provision of new lines of subsidies, such as the selection and breeding of cattle.

Due to the changes, total support to the livestock industry in the country is expected to grow by 25% in comparison with the level in 2012 to KZT40 billion (US$265 million).