Kazakhstan’s meat oligarchs pushed away from budgetary feeder

Finally, among the top officials of Kazakhstan, there was a man who was not afraid to push meat oligarchs from the budget feeder.  We are waiting for the reaction of the “shymkent guys” who have been “squeezing” all the juices out of the agro-industrial complex of the country for a dozen years, getting fat before their eyes.  At the same time, the industry itself cannot become the driver of the economy, contrary to the orders of Elbasy.

Minus billions

On October 1, the meat oligarchs of Kazakhstan had a day of mourning.  The fact is that the Prime Minister of the Republic of Kazakhstan, Askar Mamin, when specifying the republican budget, did not support the allocation of new billions of dollars, which people who were close to shoving into their pockets, close to Asylzhan Mamytbekov and his patron, Umirzak Shukeyev, learned to shove their pockets.  All of them are part of the notorious Meat Union of Kazakhstan, which, thanks to the efforts of the former head of the Ministry of Agriculture of the Republic of Kazakhstan, managed to become the main channel for devouring state support.  Without the slightest benefit to the industry.

 So, since the appetite comes with eating, in the summer, meat oligarchs, with the support of their people, in the Ministry of Agriculture of the Republic of Kazakhstan prepared a presentation for Askar Mom’s meat project.  Behind the beautiful wrapper, which consists of all the morbid false promises to increase meat production several times, expand the population and reach large export volumes, the same rotten core was hidden – “give money”.

 So, reputable cattle breeders have calculated (see table) that with 54 billion tenge allocated by him for this year, another 16 billion is needed!  Next year, 2020, even cooler – 46 billion were allocated, and they need 140 billion!  And so on, for the next five years.

Indicators

Year

2019

2020

2021

2022

2023

2024

Total

Sources of financing

Import of cows

Is required

70

140

140

140

105

42

637

KazAgro

Is available

54

46

47

45

45

45

282

The acquisition of domestic breeding cows

Is required

10

           

KazAgro

Is available

 
The acquisition of uterine

Is required

11,2

13,5

18

22,5

27

36

128,2

KazAgro/Food employment

Is available

8

9

12

14

16

18

77

Feedlot financing

Is required

25

           

KazAgro

Is available

12

         

12

 Askar Mamin, presumably, was a little stunned by the impudence of the meat oligarchs.  And he sent them to angus.  That is, to their angus.

 The head of the Meat Union of the Republic of Kazakhstan, Maksut Baktibayev, on his page in the FB immediately burst into hypocritical tears:

 “The Prime Minister at the next meeting of RBC did not support the allocation of funds for the livestock industry.  In short, everything you wanted to know about supporting business in the Republic of Kazakhstan. ”

 However, the regrets of the ex-official, who had been dismissed by their Ministry of Agriculture of the Republic of Kazakhstan after a corruption case, did not find support from users.

 “That is business support in Kazakhstan.  The question is whose business it is”, one of the users of the social network commented caustically.

Do not make me laugh

Dimash Kerim spoke very thoroughly on this topic.  Baktibaev tried to enter into a discussion with him, but he was very “blown away” very quickly – the “asphalt kid” did not have any arguments to answer the experienced farmer.

“This channel of theft has long been time to close!”, wrote Dimash Kerim.  “This is not support at all, it’s a division between my own … I live in the village, many relatives, friends and acquaintances have been engaged in animal husbandry since ancient times.  Now they are their children.  And not one of them took or received a penny from the state!  We know the whole mechanism of the “distribution” of subsidies and the issuance of soft loans from the inside, I helped some to draw up a feasibility study!  They have only one conclusion – everything can be decided with officials only for bribes!”

 Therefore, the villagers conclude as follows: in order to develop successfully, you need to rely only on yourself, and not on state support.  All subsidies are for “their own”, you cannot count on them.

 Maksut Baktibaev tried to argue with this opinion, noting that recently all applications for subsidies have been accepted online, and there is no need to intersect with officials.  This maxim caused a laugh from Dimash Kerіm:

“Do not make me laugh!”, he answered Baktibaev. “The vast majority of farmers do not know how to access the Internet …”

 One more user drew a real picture of how billions from the budget allocated for the purchase of cattle under the Sybaga program were spent.  He said that a huge part of the cattle purchased with the participation of the state does not remain in Kazakhstan to expand its livestock (although this is the purpose of the program – “KazakhZerno.kz”), but goes to Uzbekistan.  In fact, our budget now supports livestock production in a neighboring country!  But the Meat Union does not care – they get their own fat in any case.

 At the same time, no one thinks about the development of meat processing – it is much more profitable for cattle breeders to quickly scroll through money selling raw materials than to invest in long-term projects.

 “The Uzbeks, with the money allocated from our state, export thousands of cattle and cattle from Kazakhstan to develop livestock production.  And soon they will sell back to us already processed products!”, wrote one of the users.

 And he is right.  After all, one can recall that due to the same slurred position of the Ministry of Agriculture of the Republic of Kazakhstan in 2011, at that time headed by Asylzhan Mamytbekov, at one time Uzbekistan managed to develop its own flour-grinding industry, buying grain from Kazakhstan.  And now, Uzbeks have reached such volumes of flour production and export that they threaten to move Kazakhstan this year from the second position of the largest flour exporters in the world.

 The same thing is repeated in meat.

Duel of former ministers

Particularly loud gnashing of noise among cattle breeders was caused by the fact that the principal opponent of Asylzhan Mamytbekov, Askar Myrzakhmetov, received government approval for his agricultural project.

 Recall that Myrzakhmetov took the post of head of the Ministry of Agriculture of the Republic of Kazakhstan immediately after Mamytbekov.  And he was not afraid to reveal all the ins and outs of his predecessor.  Namely, the fact that 50% of state aid went to the benefit of 1% of large agricultural enterprises.  Naturally, close to the “throne” of the head of the agrarian department.

 Myrzakhmetov started a reform of this vicious practice by proposing a program to support personal subsidiary plots – that base, which keeps up the country’s agriculture and the rural population as a whole.  After all, a personal subsidiary farm for the inhabitants of the outback is the only source of income.

 Unfortunately, Myrzakhmetov’s plans were drowned in the wave of posts that were carried away in the regions.  Real cooperatives were never created (or rather, there were units).  So, very quickly Askar Myrzakhmetov lost the post of minister, and went south to the Zhambyl region.

But the leadership of the region (all the more so, mainly agar) only strengthened Myrzakhmetov in his innocence – the aim in state support should be done on private farms.  They are the future of the country’s economy and to this day provide the bulk of the production of meat and milk.

 Since the Akim of the Zhambyl region can’t make plans on a national scale, he developed and proposed a pilot project at the regional level.  The key point where budget support is required: to create a cooperative in each rural district with the necessary equipment, equipment and working capital.

 This will allow, according to the region, to turn any subsidiary farm into an effective source of income for the villagers.  Also for this you need to solve a few more questions: to support interesting projects, to give the opportunity to use the land.

 To finance this project, the akimat of Zhambyl region requested 46.4 billion tenge in the government.  The effect is expected as follows: more than 130 thousand families (about 600 thousand people) will be provided with stable income on average in the amount of 128 thousand tenge per month, and 68 thousand self-employed and unemployed will become individual entrepreneurs.  In addition, the gross agricultural output in the region will increase by 34 percent, and the utilization of raw milk and meat processing enterprises by 30 percent.

 Askar Mamin and his colleagues in the government supported this project – it will be implemented in a pilot mode, to work out all the nuances.  And if the example turns out to be positive, scaling will follow throughout the country.  Thus, those funds that are poured into grain holdings and meat clusters from year to year without any return will be redistributed in favor of a much larger number of ordinary villagers.  And with much more effective returns for the agricultural sector and the whole country.  A bonus is a solution to social problems, because rural employment will increase.

 What the meat oligarchs are not happy with, it’s understandable – having remained without farm laborers (namely, such roles in the meat chain were assigned to them by Mamytbekov and Shukeyev in their projects), as well as without generous injections, the entire Meat Union will collapse like a house of cards: no one of their villagers will agree for  a penny to do all the dirty work, while the oligarchs take off all the financial cream, sitting in private skyscrapers in the center of the capital.

Myrzabek Smagulov

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