Contacts: in Almaty: Elena Karaban (7-3272) 980-580 Email: [email protected] in Astana: Oxana Guzeeva (7-3172) 580-555
Email: [email protected]
ASTANA, April 28, 2005 ¾ The World Bank today approved a US$24 million loan for the Kazakhstan Agriculture Competitiveness Project. The project will help to increase the competitiveness of the agricultural sector in Kazakhstan by facilitating access to markets and knowledge. To achieve this goal, the project will support measures to improve the quality and safety of agricultural products, enhance access to information, and harmonize standards. It will also help to increase the quality, quantity, and relevance of applied agricultural research, and will help farmers gain more knowledge.
The agricultural sector in Kazakhstan is of critical importance to the country. Currently, it contributes to 8% of Kazakhstan’s GDP and generates 22% of overall employment. Furthermore, agriculture also generates employment in areas of high poverty. Agriculture has a significant potential for development, with considerable room for improvement in both crop yields and livestock productivity. However, to unleash this potential the sector must tackle a number of problems, among which are appropriate access to markets, know-how and technology, and the right scale of credit.
Expansion of agricultural production in both internal and external markets requires increasing the competitiveness of Kazakhstani agrofood products and agricultural raw materials. To achieve this competitiveness, modern standards and methods of quality control throughout the food chain need to be introduced for major products. Kazakhstan’s new agricultural structure, based on small-scale commodity production, makes this need even greater.
The development of cooperative marketing associations and unions and a marketing information system for market agents and entrepreneurs are also necessary. Enhancement of the image of Kazakhstani agricultural produce, and the development and implementation of an environmental certification system and eco-marking will contribute to the growth of competitive advantages of Kazakhstani agricultural production. Public financing of research on agriculture will also greatly help the sector.
“The relative weight of agriculture in the economy has been diminishing because of strong growth in other sectors – particularly in those directly or indirectly related to extractive industries. The Government is carrying out a comprehensive effort to diversify the country's economy away from its high dependence on oil, whose price volatility is notorious. The development of a competitive agriculture sector is an important pillar of this effort,” said Loup Brefort, Country Manager for Kazakhstan.
The project, with a total cost of USD$83.1 million, of which USD $24 million will be financed by a loan from the World Bank, consists of the following four components:
- Quality and safety management of agricultural products. This component will enhance control and quality certification trough harmonization, development and monitoring of international quality standards.
- Agricultural marketing. This component will strengthen market information systems and develop market-oriented infrastructure.
- Applied agricultural research and extension. This component will help to develop, implement, and monitor reorganization of existing agriculture research and extension services in Kazakhstan.
- Institutional and Agricultural policy. This componentwill help create an institutional structure to implement project activities, evaluate the project and establish agricultural policy.
The World Bank loan for the Agricultural Competitiveness Project has a maturity of 20 years with a five-year grace period. Since joining the Bank in 1992, commitments to Kazakhstan have totaled approximately US$ 2 billion for 25 projects. The overall share of loans in the Agriculture sector of Kazakhstan have amounted to US$136 million. For more information about the World Bank's work in Kazakhstan, visit www.worldbank.org.kz |
