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The problem of a lack of storage facilities for oilseed crops and, as a result, crop losses, was raised by members of the Majilis in April. In response to the parliamentarians' request, Deputy Prime Minister Serik Zhuminagarin stated that small farms need to build small storage facilities in the regions. According to information from the APK News agency.
Previously, local oil producers supplied about 50% of the domestic market and a small portion of exports. However, over the past five years, vegetable oil production has significantly increased. This growth was due to actual production rather than sunflower processing. In recent years, two to three refineries often preferred to import refined oil from Russia rather than work with local sunflower, noted the MPs.
Russian producers, due to their high concentration, have a higher technological level. In addition, they have more accessible raw materials than Kazakh competitors. All of this allows them to produce a product that is usually more affordable in price.
Expanding the cultivation of oilseed crops requires significant investment in the technological process, which is directly borne by the farms. Additionally, equipment for receiving, drying, and storing oilseed crops needs to be provided.
The bottleneck in this chain is the lack of the possibility for prompt acceptance, processing, and drying of the produced products by oilseed processors during harvest.
MPs also noted that last year there were difficulties with this issue in the Akmola and Kostanay regions, and there were crop losses of oilseed crops in farms for this reason.
According to the plans for 2025, the area of oilseed crop cultivation should increase to 3.3 million hectares. In particular, sunflower plantings should be expanded by 121.2 thousand hectares to reach a total area of 1.4 million hectares, said Serik Zhuminagarin.
To encourage diversity, the country uses comprehensive measures of state support for agricultural commodity producers. Farmers are provided with basic subsidies for the purchase of seeds, mineral fertilizers, plant protection products, as well as subsidizing the volumes of products delivered for processing.
Furthermore, investment support is provided for the purchase of agricultural machinery and equipment. In 2024, 2.6 billion tenge was allocated for subsidizing oilseed crops. Akmola region received 400 million tenge, Zhambyl - 347 million tenge, Zhetisu - 262.5 million tenge, West Kazakhstan - 507.6 million tenge, Kostanay - 1,142.3 million tenge.
Regarding the existing storage infrastructure, there are industrial capacities throughout the country that can store about 13.2 million tons of agricultural crops. The total storage capacity is 30.6 million tons, allowing to fully meet the needs for accommodating last year's harvest and remaining stocks, said S. Zhuminagarin.
However, the geographical distribution of large storage facilities does not always meet the needs of small agricultural producers who have to incur significant transportation costs for storing relatively small volumes. In this regard, creating small storage facilities located near production sites is a relevant task.
In accordance with the above, investment subsidies are provided for the construction and reconstruction of storage facilities, including facilities for oilseed crops with a full technological cycle: reception, processing, cleaning, drying, storage, and shipment.
According to current regulations, up to 25% of the costs of construction or expansion of such facilities are supported. In addition, measures of state support, including preferential loans for replenishing working capital and exemption from VAT by 70% when selling products, are provided to increase capacities for processing and storing oilseed crops, according to the response from the Deputy Prime Minister.
Furthermore, each year, if necessary, fuels and lubricants are allocated for drying installations, and up to 30% of the costs of acquiring mobile dryers are reimbursed.
The implementation of the above measures will significantly reduce the logistical costs of agricultural producers and provide the necessary storage facilities for agricultural products, concluded S. Zhuminagarin.
