October 4, 2012

Kazakhstan allocates forage grain to support poultry producers

Kazakhstan supports its poultry producers by allocating forage grain at a fixed price to fulfill their requirements.

Producers also receive direct subsidies from the state budget for increasing the productivity and quality of poultry products. Due to this support, the number of poultry in the country is steadily growing. According to September statistics, from the beginning of the year, the number of poultry across the country increased by 1.3%. 

Experts, however, say that the amount of government support for the producers is too low. "The amount of aid is not sufficient to compete with the poultry production companies abroad. Thus, the volumes of feed grains allocated for farmers is less than one third of the minimum requirements (over 540,000 tonnes) of the whole poultry sector of the country', said recently elected member of parliament, Rauan Shaekin.

"Subsidies on egg production will amount to US$26 million. However, in accordance with approved standards, about US$ 37 million is required. Clearly, such a situation in the context of increasing competition in the common customs area affects the activity of the domestic poultry egg direction."

According to Shaekin, another serious problem for the poultry industry is that in the border regions of Kazakhstan, there is uncontrolled importation of eggs at dumping prices, which could potentially be a source of infectious diseases. Also because of the unlimited importation of products from Russia and Belarus, the Kazakhstan poultry industry is suffering significant losses.