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59ECONOMIC SCIENCES
THE ROLE OF ANIMAL HUSBANDRY IN THE SUSTAINABLE DEVELOPMENT OF AGRICULTURE FOR FOOD SECURITY AND NUTRITION
Abdikerimova G.,
candidate of Economic Sciences, Associate Professor M.Auezov South Kazakhstan State University, Shymkent, Kazakhstan
5 Tauke Khan Street Moldabekov B. doctoral student, 8D04110 M.Auezov South Kazakhstan State University, Shymkent, Kazakhstan
5 Tauke Khan Street
Abstract
In this general context, different livestock systems are exposed to different economic risks and have different capabilities. Determining factors include: the degree of integration into international markets and urban distribution systems; the degree of dependence on external resources (such as feed); the degree of market concentration both in the stages preceding livestock production and in the processes of subsequent processing and marketing of livestock products.
Within the framework of the broad theme of agricultural development, which is reflected in the title of the scientific article, it focuses on the livestock components of agricultural systems, since they are the engine for the development of the agri-food sector, a catalyst for deep economic, social and environmental changes in food systems around the world and a starting point for analyzing the entire range of problems related to the sustainable development of agriculture as a whole.
The scientific article examines the main trends and factors affecting agriculture, including the livestock sector, according to various prognostic scenarios for the period up to 2050. The main principles are outlined and possible ways and actions are proposed to overcome these problems both on a global scale and in the context of specific agricultural systems, including obstacles to their implementation. At the same time, various perspectives, points of view and concepts are considered regarding the ways that can potentially ensure the sustainable development of agriculture.
Keywords: agriculture, animal husbandry, food security, economic efficiency, development trends.
Livestock production has been a key economic activity in Kazakhstan for centuries, and remains the main source of employment, nutrition, and income for the rural population.
Kazakhstan's vast pastures provide an important production base, while the improved local and global price environment creates opportunities for livestock development, especially for developing small and medium-sized producers. Before the transition period, the livestock industry accounted for 60 % of the GDP of agriculture. Today, the sector accounts for 42 %. Profits from livestock activities account for 76 % of the agricultural income of the local population, which is 15% of the total family income, according to the Household Income survey.
The revival of animal husbandry can significantly contribute to the growth of agriculture, support the growth of local incomes, especially for low-income households, and promote the use of vast land resources [1]. The Government has a key role to play in the recovery of the livestock industry and is called upon to help revive it with policies and programmes aimed at supporting developing private farms, suppliers of raw materials, processing, trading enterprises, and support services enterprises, which in turn stimulate institutional reforms, thus ensuring that social issues are addressed, reducing the need to maintain household farms for life support [2].
Changes in the economy, increasing urbanization and the openness of competition in global markets create the need for competitive production that meets the needs of the market, and a more integrated market system that meets the diverse needs of the developing regional agricultural production system.
The Government plays an important role in the development of animal husbandry that is able to respond and adapt to new conditions [3]. The Government is developing a system of appropriate mechanisms and incentives to encourage the economy of the developing private livestock sector.
This article examines the potential sources of comparative advantage and the underlying conditions for ensuring the growth of the industry and supporting fast-growing enterprises [4]. Special attention is paid to strategic areas that will enable the Government to support livestock production and address the main constraints on productivity growth in the respective production systems that benefit from comparative advantages.
The livestock sector continues to grow steadily at 4%. The volume of gross output at the end of the year increased to 2.3 trillion tenge.
The measures implemented last year through lending and additional subsidies have had their effect.
Over the four months of this year, there is a positive trend in the growth of the number of farm animals:
cattle by 4.1%, sheep and goats by 2.7%, horses by 7.6%. Meat production increased by 3.6% and amounted to 314 thousand tons, milk by 3.2 % and 1.5 million tons. Egg production decreased by 6%, due to lower demand in foreign markets.
The volume of production of processed animal products is also growing. Thus, the production of sausages increased by 20.9% (18.8 thousand tons), canned meat by 9% (3 thousand tons), processed fish by 51.3% (3.9 thousand tons). For dairy products, growth remains at an average of 10%, with the exception of processed milk due to a decrease in demand during the quarantine period and the reorientation of the main raw materials to the production of dairy products with a longer shelf life.
According to the Ministry's plans, in the current year, an additional increase in the production of livestock products is projected at 4.2% (IFI) or 2.6 trillion tenge. For 4 months of this year, the volume of gross output amounted to 656 billion tenge, the growth of IFI - 2.2%. The planned indicators in the context of each region are defined and all the prerequisites are available for achieving them.
In the meat sector, the main measures are aimed at increasing the breeding stock of cattle. Since 2018, a program of lending to farms for the purchase of breeding stock has been launched. During this time, more than 1.5 thousand farms received loans and purchased livestock. In the medium term, the task is to develop anchor cooperation with the involvement of multinational companies. The expected volume of investments due to the creation of farms will amount to 350 billion tenge and bring beef exports to $370 million by 2025. More than 42 thousand will be created. jobs by farms.
Three main indicators have been identified for meat farming: accelerated growth of the breeding stock of cattle due to lending to farmers; increase in livestock productivity due to the breed transformation of the breeding stock; development of the beef production chain by putting steers on industrial feedlots and meat processing plants. In 2019, farms imported 63 thousand heads of cattle. As a result, the share of breeding stock increased to 12%. It is planned to credit farms for the purchase of 95 thousand heads. In general, the akimats of the regions need to step up their efforts to involve farms, including those with ready-made infrastructure, in the purchase of cattle.
Last year, the mechanism of lending secured by purchased livestock was piloted, and this year this mechanism is used everywhere.
An important component is the continuous operation of the beef production chain. The republic already has a network of feedlots for 279 thousand cattle and meat processing plants for 240 thousand tons. To ensure their loading, a plan is provided for the delivery of steers. The sales season falls on the autumn periods, however, since the beginning of the year, farms have sold 41.7 thousand heads of steers to feedlots. In addition, to encourage farmers, a subsidy mechanism has been introduced for the live weight of a steer sold to an industrial feedlot or meat processing plant.
In addition, for meat processing plants and feed-lots, funding for replenishment of working capital is
provided in the presence of an export contract. In sheep breeding, the main task is to increase the number of livestock and develop anchor cooperation.
The project of anchor cooperation in sheep breeding in Zhambyl region is being successfully implemented. Currently, a project for the construction of a modern meat processing complex for the processing of lamb with the German company «Bauman» is being worked out in the «Almaty region».
To ensure the year-round operation of the enterprise, it is planned to create a network of feedlots in five regions. For this purpose, the Ministry has already provided subsidies for part of the investment in the construction of feedlots.
Last year, 1,059 farms were financed for the purchase of 374 thousand breeding sheep. This year, according to the plan, we plan to credit the purchase of 360 thousand heads. In fact, 28 thousand heads have been financed at the present time.
Sheep farming has a great prospect in increasing exports. Kazakhstan's exporters have a positive experience of supplying Kazakh lamb to the markets of the Persian Gulf countries and the People's Republic of China. But given the low interest of farmers in increasing the number of livestock, the current measures to support sheep farming were revised this year. Subsidy mechanisms have been finalized.
In the dairy sector, in accordance with the task of import substitution, projects are being implemented to create and expand a network of dairy farms. In 2019, 8 industrial and 14 family farms with a capacity of 44 thousand tons of milk were introduced (for comparison, in previous years, only 3 MTF were introduced in the republic). However, there are imports in the amount of 464 thousand tons.
There is an ambitious task for the annual implementation of 25 industrial dairy farms.
In general, in 5 years, it is planned to completely close the issue of import substitution by increasing processed milk by 500 thousand tons. Together with the regional akimats, potential projects for the construction of dairy farms have been worked out. This year, the regions have proposed potential projects for the construction of 29 industrial MTFs and 39 modernization of family farms.
Financing issues have been resolved for 7 industrial projects, and one project is being implemented at its own expense.
For the remaining projects, funding will be provided this year from the additional 400 billion tenge allocated under the «Economy of Simple Things» program. At the same time, the Ministry, together with JSC «NCH «Kazagro», has now reviewed collateral requirements for financing investment projects, introduced a mechanism to guarantee up to 85% of the loan amount to STB in the event of a shortage of collateral during the implementation of the investment project, as well as financing the purchase of cows, machinery and equipment against collateral received in the future.
For investors who have launched dairy farms, support will be provided in the form of subsidizing part of
the investment investments under the investment project, as well as reducing the cost of sold milk for processing.
The analysis of the main grain-growing regions was also carried out and it was revealed that 270 farms with a total area of about 4 million hectares of arable land are not engaged in animal husbandry. This potential should be used, as they have experience in the production of feed, which is a great advantage in the implementation of livestock projects.
In addition, in the production of poultry meat over the past year, due to the introduction of one new poultry farm and the modernization of 5 projects, poultry meat production increased by 14% (223 thousand tons).
Nevertheless, the share of imports in consumption is 45%. Here, measures for import substitution of poultry meat will continue to be implemented through the introduction of new capacities.
In the medium term, it is planned to implement 12 more projects of broiler poultry farms with a production capacity of 174 thousand tons. Due to these measures, as well as the full capacity utilization of poultry farms, poultry meat production will be increased by 2.2 times. The initial investment will amount to 110 billion tenge. 4.7 thousand jobs will be created. According to the Minister of Agriculture, pork production is a promising direction in increasing the export of livestock products.
Currently, 11 projects with a capacity of 187 thousand tons are at the implementation and design stage. Construction works are underway on 6 projects. Most projects are private investments. In general, due to these projects, it is planned to ensure a 2.7-fold increase in production volumes in the coming years. The volume of investments will amount to 271 billion tenge. An additional 3.8 thousand jobs will be created. The Ministry, together with the regional akimats, is taking
measures to attract multinational companies and strategic investors to the sector of processing livestock products on the anchor basis.
Additionally, by the end of the year, 2 modern meat processing complexes will be put into operation in the cities of Nur-Sultan and Kostanay. Financing of the project on industrial fish farming with the American company «AGCO» has been started. In the milk processing sector, negotiations are underway with the European company United Green on the implementation of an investment project. In general, the implementation of these projects will attract additional investments in the amount of 717.2 billion tenge.
This year, it is planned to purchase 5 thousand heads of cattle and 17 thousand sheep. In 2021, investments in agriculture are planned in the amount of 23.3 billion tenge with an increase of 120% by 2020.
At the stage of implementation, an investment project to create a large sheep farm in the amount of 20 billion tenge with implementation in 2020-23, with deep processing of lamb. The required area of pasture land is reserved. Since last year, a project has been implemented to create a pig breeding complex for 25 thousand heads.
The issue of creating 3 industrial dairy farms is also being worked out at the expense of the «Economy of Simple Things» program and through the «SEC» Saryarka, at the expense of the regional budget in the amount of 5 billion tenge, with a total production of 19 thousand tons of milk per year. This work continues.
According to the Statistics Committee of the Ministry of National Economy of the Republic of Kazakhstan, the number of cattle at the beginning of 2020 was 7,436. 4 thousand heads, pigs 813.3 thousand heads, sheep and goats - 19,155. 7 thousand heads, horses-2,852. 3 thousand heads, camels-216.4 thousand heads, birds of all kinds-45.0 million heads.
Table 1.
The number of livestock in all categories of farms of the Republic of Kazakhstan as of January 1 __(at the beginning of the year), thousand heads _
Year Cattle Sheep and goats Pigs Horses Camels Poultry, million heads
2017 6 247,2 17 947,1 831,1 2 113,2 172,5 37,8
2018 6 764,2 18 329,0 815,1 2 415,7 193,1 39,9
2019 7 150,9 18 699,1 798,7 2 646,5 207,6 44,3
2020 7 436,4 19 155,7 813,3 2 852,3 216,4 45,0
As of January 1, 2020, the number of cattle in all categories of farms increased by 19.0% compared to the beginning of 2017 and amounted to 7,436.4 thousand heads, horses-by 35% and 2,852. 3 thousand heads, respectively, camels - by 25.5% and 216.4 thousand heads, sheep and goats - by 6.7% and 19,155. 7 thousand heads, poultry - by 19.1% and 45.0 million heads. The number of pigs at the beginning of 2020 decreased
by 2.1% compared to the beginning of 2017 and amounted to 813.3 thousand heads.
It is worth noting that more than half (59.6%) of the livestock population at the beginning of 2020 was used for birds. The second place is occupied by sheep and goats (25.4%), followed in descending order by cattle (9.9%), horses (3.8%), pigs (1.1%) and camels (0.3%).
Table 2.
Number of livestock and poultry in the Republic of Kazakhstan by category of farms __(at the beginning of the year), thousand heads _
Cattle Sheep and goats Pigs Horses Camels Poultry, million heads
All categories of farms
2017 6 247,2 17 947,1 831,1 2 113,2 172,5 37,8
2018 6 764,2 18 329,0 815,1 2 415,7 193,1 39,9
2019 7 150,9 18 699,1 798,7 2 646,5 207,6 44,3
2020 7 436,4 19 155,7 813,3 2 852,3 216,4 45,0
Agricultural enterprises
2017 580,3 771,2 247,0 134,5 14,3 25,5
2018 662,9 835,1 221,1 146,8 13,6 28,7
2019 712,8 830,0 214,3 163,4 14,2 32,4
2020 717,9 874,2 241,0 181,1 15,2 32,8
Peasant or farm farms
2017 1 948,4 6 808,9 117,2 939,2 68,5 0,4
2018 2 224,5 6 731,4 110,5 1 054,0 77,3 0,5
2019 2 409,8 7 061,8 93,2 1 186,5 82,9 0,5
2020 2 624 252 7 573,3 78,7 1 321,2 87,4 0,7
Households of the population
2017 3 718,5 10 367,5 466,9 1 039,4 89,6 11,9
2018 3 877,2 10 762,5 483,6 1 214,9 102,3 10,7
2019 4 028,4 10 807,3 491,2 1 296,7 110,5 11,4
2020 4 094,3 10 708,2 493,6 1 349,9 113,8 11,6
Studies show that the largest number of livestock (except birds) falls on the farms of the population, and the number of birds predominates in agricultural enterprises, most likely, these are large poultry farms.
To ensure the dynamic development of domestic cattle breeding and maintain positive trends in other livestock industries, innovative organizational and economic mechanisms for the functioning of the agro-industrial complex are necessary.
They should be based on the economic methods of the state administration's influence on the production, processing and sale of agricultural products, aimed at financial and logistical support for production, improving the social conditions of agricultural workers and the intensive introduction of modern technologies [5].
The novelty of approaches to solving this problem lies in the theoretical justification of methodological approaches to the formation of the domestic market of livestock products and the development of a strategy for the balanced development of the main branches of animal husbandry in the overall system of ensuring food security of the country.
In Kazakhstan, the problem of providing food proteins of animal origin is particularly acute. The lack of dietary protein, mainly due to insufficient milk production, has a negative impact on the health of the population [6]. From an economic point of view, milk protein is the least affordable for the population of our country due to high retail prices for dairy products and the cheapest in production after poultry products. The need to solve this problem is reinforced by the emerging negative trends in the economy of our country.
On the one hand, in recent years, the productivity of animal husbandry has been gradually increasing, on the other hand, the increase in the consumption of milk and beef per capita has stopped due to the low purchasing power of most social groups. As a result, due to the
lack of paid demand, the development of livestock production is hindered.
In this regard, when choosing a strategy for the development of animal husbandry, it is necessary to develop theoretical, methodological and practical recommendations that are adequate to modern economic conditions and changes in the organizational and economic mechanism of the functioning of the agro-industrial complex of our country. The economic justification of the development strategy is particularly relevant in the context of the low level of efficiency of livestock industries and the decline in paid demand.
References
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3. Socio-economic development of Kazakhstan in 2020 //http://www.stat.gov.kz.
4. Livestock and poultry / / Data of the Ministry of National Economy of the Republic of Kazakhstan of the Committee on Statistics, http://www. stat.gov.kz/getImg?id=ESTAT081399
5. Production of certain types of livestock products / / Data of the Ministry of National Economy of the Republic of Kazakhstan of the Committee on Statistics // http://www.stat.gov.kz/getImg?id=ESTAT087988
6. Konyrbekov M. Zh. Studying the features of the growth of the livestock sector in Kazakhstan in market conditions / / Actual problems of economics. - Kiev: National Academy of Management, 2015. - №7 (169). -Pp. 79-87
