DEVELOPMENT OF THE FAT AND OIL INDUSTRY OVER THE YEARS OF INDEPENDENCE

Oct 29, 2021
The oil and fat industry has achieved significant success in all areas and can rightfully be considered one of the most dynamically developing in the republic. By supplying quality food to the population, the industry makes a significant contribution to ensuring food security in Kazakhstan and continues to retain the potential for implementing the import substitution program.
Since 2011, our country has been steadily strengthening its position as a producer of oilseeds. According to the Ministry of Agriculture of the Republic of Kazakhstan, since 2012, within the framework of the program for diversifying sown areas, sown areas for oilseeds have grown by more than 1 million hectares, and the average annual production of oilseeds has increased by 1 million tons. Nevertheless, the high interest of representatives of the fat and oil industry in establishing closer contacts with Kazakhstani producers of oilseeds and vegetable oils is primarily due to the annually growing consumption of fat and oil products within the country.
Kazakhstan is the only country in the world that has made such a rapid breakthrough in a short time: over 10 years, the country from the TOP-10 importers of sunflower oil has confidently entered the TOP-10 exporters of sunflower oil.
Oilseeds grown in Kazakhstan have increased demand by several times in comparison with previous years. This indicates that in the production of fat and oil products, more attention is paid to traditional oils than palm oils, which is one of the significant reasons for the lack of raw materials on the market. However, if the government takes restrictive measures on the export of raw materials, then the fat-and-oil industry of Kazakhstan can increase the output of finished products by providing both the population of the country and increasing the volume of exports.
The state, at the level of local executive bodies, provides assistance in the provision of land plots.
When carrying out spring field work, the state provides fuel and lubricants at a reduced price, assists in the acquisition of elite seed material, the purchase of organo-mineral fertilizers is subsidized up to 50%, the use of substances to protect crops from pests is subsidized.
The creation of production facilities for the storage, processing and shipment of agricultural products is being stimulated. From 20 to 50% of the cost of creating enterprises for breeding livestock, processing meat and milk, processing plant products, processing wool is stimulated by the state.
In order to ensure the profitability of agricultural production, as well as to provide processors with raw materials, the state subsidizes the purchase of agricultural products by processing enterprises at fixed prices.
In accordance with the strategy “Kazakhstan 2050” in the agro-industrial complex, the main directions in the industry were to increase the food security of the country, the formation of an agricultural business, an increase in the competitiveness of domestic products and an increase in sales volumes, both in the domestic and foreign markets, a decrease in the level of food imports, the introduction of an effective system of state support for agricultural production.
All of the above trends observed in the fat and oil industry are most likely due to the fact that this market is a priority for the economy of Kazakhstan. Agricultural producers are supported by the state within the framework of the Program for the Development of the Agro-Industrial Complex of the Republic of Kazakhstan for 2017-2021.
The main driver of the development of the fat-and-oil industry is a stable increase in acreage for oilseeds and work on an average yield through the development of agricultural technologies. Thus, within the framework of the program for the development of the fat-and-oil industry, sown areas for oilseeds in Kazakhstan are planned to be expanded from the current 3.39 million hectares to 5 million hectares by 2030, and their average yield will be increased from 10.5 to 14 centners per hectare. This program is integrated into the national agro-industrial complex development program, which is operated by the government of the Republic of Kazakhstan, the Ministry of Agriculture of Kazakhstan and key line ministries. Also, the main factor for the successful development of the fat and oil industry is active trade in products due to the increase in global demand for fat and oil and protein foods, especially since the export potential of organic fat and oil products from Kazakhstan to the markets of Central Asia, Europe and China is quite high.
An important role is also played by the high share of spare capacity in butter factories. For example, currently two large plants are under construction in the Republic of Kazakhstan, the launch of which is scheduled for 2021. Two more applications have also been submitted for the construction of two more oil extraction plants in the cities of Kostanay and Petropavlovsk with a processing capacity of 1,000 and 3,000 tons / day. respectively. In particular, in Kostanay, it is urgently necessary to build a modern oil extraction plant for processing sunflower with a capacity of 310 thousand tons per year, which could significantly improve the situation with the shortage of crude sunflower oil in the domestic market. High-tech and European equipment of advanced brands will significantly reduce the cost of processing, and anchor cooperation of sunflower producers in the northern and central regions of Kazakhstan with the support of service centers will make it possible to increase the sown area of ​​this oilseed crop by 4.5 times.
As you know, the agro-industrial complex has been chosen by the government of Kazakhstan as a new driver of the economy. The direct operators of the created program for the development of this sector are the government and the Ministry of Agriculture of the Republic of Kazakhstan, the Atameken National Chamber, as well as associations, business entities and agricultural enterprises. The national plan for the development of the agro-industrial complex is an increase in production and effective processing of highly profitable crops, as well as the development of intensive dairy and beef cattle breeding, poultry farming, fodder farming, processing and marketing of agricultural products, improving veterinary and phytosanitary safety, improving the availability of financial services, efficient use of land resources, developing rural areas and, finally, the digitalization of the agro-industrial complex. The oil and fat industry is of key importance in almost all areas: for poultry farming, feed producers, as well as for the development of the dairy and confectionery industries.
The article was prepared by the junior researcher of AB LLP “KazRIPFI” Zh.K. Zhadrasyn.

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