Kazakhstan: SOS signal from pig farmers
It seems that the subsidy fever cannot escape any branch of the domestic agro-industrial complex. It is difficult, however, to predict which one is next in line. As soon as the issue of paying off subsidies to dairy producers was resolved, the pig breeders became feverish. Since the second half of the year, the industry has not received state support.
According to statistics, almost a third of citizens in the republic consume pork. This is explained not only by the country's multi-confessional nature. Pig meat is more affordable in cost compared to beef, horse meat and lamb.
Currently, Kazakhstan produces 80-90 thousand tons of pork annually. The number of pigs in the first six months of this year amounted to almost 970 thousand heads. During the same period, pork production increased by almost 4%. Consumption has also grown, having increased since 2018 by almost 13%. The positive dynamics was ensured by subsidies.
It is thanks to the state support that the pig-breeding industry in Kazakhstan has not "bent", but has started to grow. According to experts, in 2018, more than 2 billion tenge was sent to the industry in the form of subsidies, in 2019 - 1.5 billion tenge, in 2020 - about one billion tenge. That is, over 3 years the amount of subsidies decreased 2.7 times. If in 2019 the number of pigs increased by 3.3%, then later it began to decline. The share of pig breeding in the total volume of state support for the agro-industrial complex in 2018 accounted for 2.8%, in the past - 1.4%, in the current one - 1.1%.
The first blow to the industry came from a pandemic. The main points of sale - markets - were closed, and potential buyers, due to restrictions on movement, could not get into shops where pork could be bought. For example, in July, sales fell by almost 10%, and the industry lost about a billion tenge in revenues.
Farmers are forced to change the timing of feeding. As you know, the most effective is 180 days. In this case, the production of one kg of meat requires 4 to 4.5 kg of feed. If the terms are increased, then with the same amount of feed, we will get only 600-700 grams. In addition, the share of lard will increase, which means that the price will also decrease by at least 15%. We are talking about the loss of the industry of several billion tenge of income, and if the quarantine is not lifted in the near future, they will still grow.
At the same time, the industry has a considerable export potential. In 2018-2019, pork exports from Kazakhstan increased by 83%. And this is not the limit.
Next to the republic is China with its huge consumer market. They prefer pork to other types of meat. The demand for it, like the price, is constantly growing there.
Experts believe that in order to save the industry, it is necessary to urgently compensate for the loss of income due to coronavirus infection in the amount of 4.7 billion tenge, and resume subsidies from the second half of 2020.
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