Food security – a new driver of cooperation between Kazakhstan and EU

With a natural agricultural potential, sound investment climate and unprecedented state measures, Kazakhstan can become a reliable partner of the European Union in enhancing regional and global food security, writes Yerbol Karashukeyev.

Yerbol Karashukeyev is the minister of agriculture of the Republic of Kazakhstan.

The European Union has always been at the forefront of world’s agriculture and food industry thanks to a combination of the rich traditions of its member-states in this field and ground-breaking and innovative agroindustry, making it an exemplary industry worldwide.

However, changes in global agricultural markets and the changing geopolitical situation have shown the weaknesses of food systems. These changes require new approaches to implementing agricultural policies and the involvement of new partners.

With a natural agricultural potential, sound investment climate and unprecedented state measures, Kazakhstan can become a reliable partner of the European Union in enhancing regional and global food security. The scale of agricultural land and weather conditions enable our country to become one of the world’s top agricultural exporters.

Taking into account its potential, the development of the agricultural sector has been set among priority objectives for the Kazakh government.

The main principles of Kazakhstan’s agricultural policy are reflected in the 2030 Concept of Agribusiness Development and the National Agribusiness Development Project for 2021–2025.

In addition, the government is constantly monitoring regional developments and continues adjusting our economic and agricultural policies to ensure that our citizens can purchase food products at reasonable prices.

The measures towards increasing domestic production, enhancing competitiveness and food security have proven efficient in tackling these issues.

According to the 2022 Global Food Security Index, Kazakhstan ranked 32^nd out of 113 countries, for the first time taking the leading position in the wider region (among the countries of the former Soviet Union). Kazakhstan also came 2^nd out of 32 landlocked countries about the high inflow of foreign direct investment.

Despite challenges arising from volatility in global agricultural markets, food production grew by 3.9 % in 2022, reaching $6.5 billion. The production growth helped us boost the capital investment in agriculture by 6.7% ($1.9 billion) last year and by 15.7% ($311 billion) in food production. This trend has continued in 2023: in the first four months, the agriculture sector received more than $600 million of capital investments, which is 30,8% higher than in 2022.

Our mid-term goal is to create a favourable investment climate in agriculture that would attract more than 900 projects by 2026 worth 2.8 trillion tenge (around $6.2 billion). To do so, we have in place a preferential tax policy for agricultural industry; the government’s support to the agroindustry will amount to $1 billion this year.

In line with the policy of sustainable agriculture, we are promoting the introduction of water-saving technologies. In the past few years, we transferred 30,000 hectares of irrigated land to drip irrigation and sprinkler irrigation. In the coming years, we will transfer to advanced irrigation up to 130,000-150,000 hectares annually. This will allow us to switch up to 750,000 hectares to water-saving technologies by 2030.

Training of farmers is another important area of agricultural development. We have launched large-scale training programs on farming technologies for 100,000 people.

In livestock production, our farmers frequently choose to work with European producers of genetics and breeds. The size of pasture lands enables us to grow environmentally friendly forage and to obtain high-quality meat.

The investment project financing in agriculture launched in all the regions of Kazakhstan is expected to release over 100 billion tenge of investments (around $222 million). These funds will be used to build over 65 dairy farms.

One of our key goals is to develop the export potential of the Kazakh agricultural industry. In 2022, Kazakhstan’s agricultural export reached $5.6 billion – 46% higher than in 2021. Specifically, the grain export grew by 34.7% ($1.9 billion), the export of oil crops by 66% ($603 million), and processed agricultural produce grew by 64%, reaching $2.3 billion.

Kazakhstan now exports 531 types of food products to 67 countries worldwide. Among our main consumers are the members of the Eurasian Economic Union, countries of Central Asia, Afghanistan, Türkiye, Latvia, Italy, Belgium, Iran, and China. With an annual production of 20 million tons of grain, we meet the grain and flour demand of the whole Central Asia and Afghanistan and have the potential to increase wheat supplies to Europe and China.

In the coming years, the untapped capacity will allow us to double the export of agricultural products and scale up their processing. In parallel, our companies and farmers are working on increasing organic food production. A draft law, “On production and distribution of organic products,” currently considered by the Parliament of Kazakhstan, outlines regulatory harmonisation with international organics rules and standards.

Last March, the European Commission positively assessed the veterinary control measures in Kazakhstan that allowed new exports from our country of fishery products into the EU market. We are now applying for an export certificate for organic honey products. Our talks with the EU member-states show strong interest in importing meat and dairy products from Kazakhstan. To respond to the growing demand, we are prioritising improving quality compliance of our agricultural products with the EU standards. Certain harmonisation of phytosanitary and veterinary regulations will help our companies to register as a supplier to the European single market.

On the other hand, Kazakhstan’s demand for high-quality European seed grain, technologies and innovations is growing. Production of certain European products or innovations in Kazakhstan is a promising investment field for the European agroindustry. I can assure the EU investors will find fertile ground for their investment in Kazakhstan in livestock breeding, crop farming, advanced grain processing, and baby food production. Food corporations and agroindustry considering relocation in the region should choose Kazakhstan – a country that provides the EU producers with an attractive investment climate.

Earlier in June, I discussed this prospect with my colleague, EU Commissioner for Agriculture Janusz Wojciechowski who paid a visit to Kazakhstan on 8-9 June. During the meeting with President Kassym-Jomart Tokayev, his speech at the Astana International Forum on the issue of global food security, as well as our constructive discussions, the Commissioner confirmed the potential to strengthen our cooperation as two major food producers and exporters.

“The EU intends to lead the path to sustainable food security; but it is a path we cannot take alone”, he said.

I agree with his statement that by sharing our perspectives on these challenges, we can build a strong cooperation for food security and sustainability.

We believe that global food security can be better addressed with the participation of new so-called middle power partners in agriculture, transportation, and energy sectors. Kazakh companies and farmers are ready to respond to the growing international demand and enhance their production. The European Union, which is at the forefront of global food security, can demonstrate support to its reliable international partners by facilitating the exchange of innovation, encouraging investment cooperation, and creating new joint supply chains that will widen the network of food suppliers.