US, Kazakhstan cooperate in cattle farming and meat production

US Global Beef Company, which specialises in feeding and genetic study of cattle, and Kazakhstan's meat producer Kazmeat have signed an agreement on the establishment of a joint venture, which will focus on the breeding of highly productive breeds of cattle and production of meat products in Kazakhstan.

The joint venture called KazBeef was established on a parity basis.

Both companies are expected to start the construction of feedlots designed for 5,000 head of cattle with full cycle of meat processing and slaughtering facilities this month. A plant for the production of meat products will also be constructed.

During the next two years the new joint venture plans to build an additional 15 feeding sites, which will allow it to start meat exports overseas. The US company has already provided guarantees for the supply of 2,000 head of cattle of Angus and Hereford beef breeds to Kazakhstan.

Total cost of the project is about US$35 million, of which US$8 million will be invested in the construction of feedlots. Payback period of the project is six to seven years.

All the construction work is scheduled to be completed by the end of this year.