Milk producers and processors have discussed the possibility of cooperation

The market of dairy industry in Kazakhstan resembles a huge flea market where all vendors operate separately and each is an individual owner. How to direct the industry forward in a civilized manner? How to support the farmers, and most importantly, how to ensure that people are supplied not with surrogate powder, but with a natural and environmentally friendly product?

Representatives of the Ministry of Agriculture, the Fund for Financial Support of Agriculture, Research Institute of agribusiness and dairy companies "Sunny", "Food Master", "Amiran", "Adal" "Raimbek Group", "Raimbek Agro", "Danone Berkut" SEC "Aksut". This was discussed at the Workshop on the development of cooperation in the production and processing of milk at the Chamber of Entrepreneurs of Almaty.

"With the entry of the Republic of Kazakhstan to the EAEU, the WTO, the rules of the game will be dramatically changed. The situation is changing on a monthly basis. And to be on the crest of the events, we need to meet and to discuss relevant issues. I would like to inform you that if cooperatives were previously regulated by four laws at the present time there is just one. It is the law "On Cooperation". The Ministry of Agriculture started work in 10 areas in the framework of the law, and one of them concerns the processing of milk. The processors of dairy products must be the bridge that will unite all producers of milk", - said Erbol Eseneev, secretary of the Secretariat of the Committee of the food industry NCE RK "Atameken".

The chairman of the board of the Fund for Financial Support of Agriculture Narmukhan Sarybaev believes that the development of milk production must be based on the co-operation of dairy farms, and service-procuring centers. In his speech, he specified what assistance will be given to farmers in the framework of the law "On Cooperation". Under the state program "Yrys", the loans of up to 60 million tenge will be granted for the purchase of cattle breeding stock, the necessary machinery and equipment, working capital in the total amount of not more than 15% of the loan amount. Loan term - up to 7 years, the interest rate - 4% per annum, an initial contribution of leasing - at least 15% of the value of the leased asset.

"By 2020, the Republic of Kazakhstan should fund about 666 dairy farms, about 100 of them in the Almaty region. The problem is that to get a loan in the amount of, for example, 60 million tenge, it is required to provide collateral in the amount of 85.7 million tenge. This amount can be collected, together, let's say, 10 farmers (each putting 8.6 million tenge). On the other hand, cooperation will make it cheaper to buy fuel, forage, less organized veterinary control. The principle of the market it is always cheaper to buy in bulk. We had a good example of a cooperative in the NKR, where a society was selling grain directly to European exchanges: the prime cost is lower and revenue is higher", - said Narmukhan Sarybaev.

The head of the SEC "Ak syt" Nelly Salikhova is puzzled weather the state program enable peasants to stay afloat. For more than a year the businesswoman is engaged in the production and processing of milk products: butter, cottage cheese, cheese and other dairy products, which are delivered to shopping centers in Almaty. Citizens appreciate the naturalness of its goods, even though its high price - the cost of just 1 liter of milk "Ak day" is 250 tenge.

"We are kind of pioneers in the establishment of peasant cooperatives. And, you know, how did this process go? After the announcement of the state program for our support, there were 50 wishing to join the co-op, 16 people gathered for the second meeting to discuss the charter and at the third meeting there were only three people to sign it. It turned out that the majority didn’t even have cows! About what kind of cooperation can we talk? Today milk producers are represented by private farms, which prefer to trade on their own at the markets of Almaty. It is not profitable for milk dairy companies to sell milk for pennies, and they can’t afford amalgamation into unions. Here you write that for the financing of the cooperative there must be 100 units of cattle. Why not 20? Who currently has such capabilities? In the development of this latest government program, I recommend that the authors take a ride through the villages, explore the hinterland, its realities. Otherwise, people will perceive this program as the collectivization – everyone is urged to amalgamate, risking acquired property. Farmers will not go for this today", - shared his experiences Nelly Salikhova.

Fortunately, the conditions of the state program are still under discussion. The developers claim that will listen to all the opinions and arguments, and such meetings will improve the document in order to ensure maximum effect and the progressive development of the industry.