Huge investments from China

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4 large agribusiness transnational Chinese companies enter the market of Kazakhstan

The Ministry of Agriculture of Kazakhstan and Chinese companies CITIC, COFCO, Rifa Holding Group and Ai Ju have signed today an action plan on cooperation in order to attract strategic investment for the development of production and processing of agricultural products.

Thus, the company “Rifa Holding Group” has decided to invest in the construction of the meat-processing plant in East Kazakhstan region with annual capacity of 17 thousand tonnes of lamb and beef and feedlots for 50 thousand heads of small cattle and 1000 heads of big cattle. According to the press service of the Ministry of Agriculture, 80% of companies will be focused on exports to China. The total project cost is estimated at 7.9 billion tenge. The share of the company “Rifa Holding Group” in the project will amount to 49%.

The company also intends to cooperate with a number of Kazakh companies in the production of beef. Currently, the company “Rifa Holding Group” carried out the audit of Kazakhstani companies “Aktepa” in Aktobe region, “North Agro-N” in Kostanai region and "Arkharly maybuyrek" in Almaty region. The signing of investment agreements between said Kazakh companies and “Rifa Holding Group” are pending.

In the livestock sector Kazakhstan intends to invest in one of the leading investment corporations in China “CITIC”. Currently it signed an agreement with the holding "Baiterek" on the implementation of investment projects in agriculture. The Corporation intends to invest in the construction of feedlots on an industrial scale broiler and poultry farms.

The industrial group “AIJIU” jointly with LLC “Total Impex” in the North-Kazakhstan region implement an investment project of deep processing of oilseeds and grains in the amount of 58 million dollars. The design capacity of the plant in a year is 80 thousand tons of vegetable oil, 200 thousand tons of flour, 200 thousand tons of feed.

The company “COFCO” intends to invest in the production and processing of tomatoes in Kazakhstan, these will be projects in Kyzylorda, East Kazakhstan and West Kazakhstan regions worth over 80 million dollars. The Kazakh side will provide land plots for cultivation of tomatoes and production of tomato products. (The Ministry of Agriculture noted that the term of the lease for foreign investors was increased from 10 to 25 years.) As a result of joint projects it is planned to increase the production of tomatoes for 120 thousand tons.

Hong Kong financial group “Oriental Patron” makes the greatest contribution to investment, which together with the UCS partner intends to invest in the development of the Kazakh company "Kazexportastyk" to work together for the development of Kazakhstan in the deep processing of agricultural products. The total investment could reach about 500 million dollars.

Zhanar Serdalina