State Program of the Development of Agro-industrial Complex of the Republic of Kazakhstan for the period 2017-2021.

State Program of the Development of Agro-industrial Complex of the Republic of Kazakhstan for the period 2017-2021 is a nationwide multi-sectoral policy document setting forth the goal of ensuring the production of competitive agro-industrial commodities in demand in the markets. The demand for products implies the identification of priority commodity groups, the production of which is necessary to meet the needs of the domestic market and the implementation of the export potential of the agro-industrial complex. To meet the domestic demand for food it is necessary to develop the production of the following priority products: poultry, meat products, dairy products, fish, vegetable oil, fruits and vegetables and sugar. The greatest export potential exists for the following priority types of products, domestic consumption of which is currently fully covered by domestic production: beef, lamb, pork, as well as for products in high demand on foreign markets: grain, oilseeds, potatoes and their processed products (including organic products).
The competitiveness of products implies solving the issues of resource provision, infrastructure development and implementation of the stimulating state policy in the agro-industrial complex.
The objectives of State Program shall be as follows: (a) involvement of small and medium-sized farms in agricultural cooperation; (b) saturation of the domestic market and development of the export potential of domestic products; (c) effective use of financial measures of state support; (d) efficient use of water resources; (e) creation of conditions for the effective use of land resources; (f) increasing the provision of agricultural producers with machinery and agrochemicals; (g) development of trade and logistics infrastructure; (h) scientific and technological, staffing, information and marketing support of the agro-industrial complex.
Target indicators include: (a) increase in labour productivity in agriculture; (b) increase of production output in agriculture; (c) increase of export of agricultural commodities; (d) reduction of import of agricultural commodities; (e) increase of wholesale trade of foodstuffs; (f) reduction of the consumption of irrigation water; (g) increase of surface water resources; and (h) promote reuse and recycling of water supplied for industrial purposes. Efficient use of water resources will be expressed in the provision of irrigation water necessary for agricultural development of regular and liman irrigation lands, improvement of ameliorative condition and rehabilitation of irrigation infrastructure, improvement of water use efficiency in industry.
The following changes to the subsidy system will be introduced from 2017: (a) preferential transition from subsidizing in relative terms, as a percentage of the cost of goods, works and services, to subsidizing in absolute terms, in value terms; (b) optimization of the terms for granting subsidies in accordance with the timing of technological processes in the industry; and (c) priority subsidizing according to the following priorities: import substitution, export orientation, other directions. The main measures to improve the system of crediting and guaranteeing obligations will be aimed primarily at expanding the coverage of customers, the involvement of small and medium-sized farms and cooperatives.