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National distribution system to comprehensively solve issues of reducing food chain losses and stabilizing prices — Bakhyt Sultanov

Tuesday, 06 October 2020, 14:36:53

At a government conference call chaired by Prime Minister Askar Mamin, issues of saturation of the domestic market with domestic food were considered. Minister of Trade and Integration Bakhyt Sultanov, Akims of Akmola region Ermek Marzhikpaev, Almaty region — Amandyk Batalov reported on the work carried out in this direction.

In order to saturate the domestic market with quality goods and provide favorable conditions for domestic producers, work is underway to create a National Distribution System. It will make it possible to comprehensively solve the issues of reducing losses in the food chain, stabilizing prices, developing trade infrastructure and creating export channels.

"The new complex infrastructure for the distribution of goods will become the main infrastructure of the Eurasian food hub, the creation of which was mandated in the President's Address," Sultanov said.

The national commodity distribution system will act as an anchor infrastructure for uniting clusters, farmers, buyers, transport workers, retailers and consumers. The core of the proposed system will be a single network of three types of wholesale distribution centers.

First. The wholesale distribution center-storage is as close as possible to the farmers, they will provide services for acceptance, storage and initial processing (washing, calibration, packaging) for subsequent sale.

Second. The wholesale distribution center-trade will be located in the suburbs of regional centers and large cities.

"Their function is to provide farmers, wholesale traders and distributors, as well as such buyers as retail chains, shops and markets, with free access to the trade infrastructure for the sale of products, temporary storage for the period of sale, revision and other related services," said Sultanov.

Third. Wholesale distribution center - distribution will be located within cities or suburbs. Their purpose is to provide logistics services for the temporary storage and transshipment of wholesale consignments of products of domestic producers and imported goods for the needs of retail facilities.

Thus, the National Commodity Distribution System will provide free access for producers to sales markets "from field" to "counter", and consumers with quality products.

“All three types of such objects of wholesale distribution centers will provide a full range of services for the preservation and redistribution of products. The capacity and size of each type of these facilities will be determined based on the needs of trade and consumers,” the minister said.

According to him, the proposed model of the National Distribution System is based on the principles of public-private partnership through a private financial initiative. As part of the network creation, it is proposed to build 24 wholesale distribution centers. The infrastructure of the National Distribution System will ensure the acceptance, storage and transshipment of more than 2.1 million tons of goods and create jobs for 5 thousand people. The range of wholesale distribution centers will amount to more than 20 thousand product names.

The construction of the proposed facilities is planned in 3 stages.

At the first stage, it is planned to conclude public-private partnership agreements for 7 objects: 4 wholesale distribution centers (storage) and 3 wholesale distribution centers (distribution) by the end of this year, at the second stage — 7 facilities — in the spring of 2021, at the third stage 10 facilities — in the fall of 2021.

“To date, an application has been received from a consortium of private investors in the form of a private financial initiative to implement the first stage of the project for the construction of 7 facilities. This consortium includes manufacturers of agro-industrial products and participants in the trading system. These facilities will be located in the village of Michurino and the city of Aksu, Pavlodar region, the city of Kapchagay, Almaty region, the city of Shu, Zhambyl region, as well as in the cities of Nur-Sultan, Shymkent and Almaty,” the minister explained.

The infrastructure of wholesale distribution centers will also allow integration with the trade and distribution systems of neighboring countries, such as Russia, Uzbekistan and Kyrgyzstan, which will ensure mutual supplies of goods and their transit through the territory of the EAEU countries, as well as open access to the markets of Iran, Pakistan, India, Afghanistan and others.

“The total export potential is about 1.4 million tons of products. In general, the increase in the economic effect in the process of designing public-private partnership agreements for the implementation of the national distribution system project will amount to about 1.2 trillion tenge over a period of 14 years. The productivity of agricultural producers will increase to 460 thousand tons of fruits and vegetables. Reducing losses of producers in the post-harvest period will amount to about 350 thousand tons of vegetable products,” Sultanov said.

In turn, the Akim of Akmola Region Marzhikpaev informed that one of the important campaigns of the current agricultural year — the harvesting of grain and leguminous crops is completed.

Grain threshing was carried out on an area of ​​4.4 million hectares. With an average yield of 11.8 c / ha, more than 5.2 million tons of grain have been threshed. Indicators of the quality of this year's harvest are much higher than last year: 95% of the grain corresponds to the 3rd class (last year 65%).

A positive trend in food production continues in the region. The total production of all types of meat amounted to 63 thousand tons (109.6%), milk was produced 282 thousand tons (101.6%), eggs were produced — 566.2 million pieces (95.5%).

The region has sufficient production capacity to produce processed products.

Processing enterprises produced food products worth more than 73.4 billion tenge, which is 109.4% compared to the same period in 2019 (67.1 billion tenge), incl. meat products for 28 billion tenge (an increase of 17%), dairy products for 13.2 billion tenge (an increase of 1%), flour 12.2 billion tenge (an increase of 29%), vegetable oil 466.6 million tenge (an increase of 21%).

“This year, it is planned to introduce 41 investment projects for a total amount of 67 billion tenge, of which 22 projects have already been launched. I would especially like to note the construction of the second stage of the Makinsk poultry farm, with the commissioning of which its capacity for the production of poultry meat will increase by another 25 thousand tons. As a result, after reaching the design capacity by the end of 2021, the volume of poultry meat production will reach 80 thousand tons, which is almost twice the production volume in 2019. These volumes exceed the region's own needs by 6.7 times,” akim of Akmola region informed.

A breakthrough project is the launch of a modern processing complex LLP Agrofirma TNK, aimed at deep processing of grain crops with an assortment of production of more than 10 types of cereals. All manufactured products will be fully export-oriented. A new mill complex with a production capacity of 80 thousand tons was launched.

Through the implementation of these projects since the beginning of the year, over 57 billion tenge of investments have been attracted to the agro-industrial complex.

Every day the regional enterprises supply about 80 tons of meat and meat products, 200 tons of dairy products, about 700 thousand pieces. eggs and 25 tons of flour.

Akim of Almaty region Batalov said that harvesting work in the region is nearing completion. Harvested 409 thousand hectares of grain crops or 87.1% of the plan, harvested 874.2 thousand tons with an average yield of 21.4 centners per hectare. At present, the harvesting of corn, oilseeds and sugar beets has begun.

In terms of saturation of the domestic market with food products in the region, out of 29 types of food products, for 10 types (beef, lamb, horse meat, pork, eggs, potatoes, carrots, peppers, rice), the provision is 100% or more, 15 each (flour, bread , pasta, vegetable oil, onions, cabbage, beetroot, tomato, cucumbers, apples, poultry, milk, dairy products, fish) - up to 90%. For 4 types of food products, measures are being taken to increase production (sausages, butter, cheese and cottage cheese, sugar).

In the domestic market of the region, the share of domestic food products is 85%, imported — 15%. The volume of exports of agricultural products compared to the corresponding period of 2019 increased by 17.8%.

In the region, a pool of 76 investment projects in the agricultural sector has been formed for a total of 65.1 billion tenge.

The region occupies a leading position (39%) in the republic in the production of poultry meat. After 6 years of inactivity, the Otan Green Food poultry farm with a capacity of 29 thousand tons was restored and modernized.

Projects are underway for the construction of two more poultry farms in the Ili and Uygur regions with a total capacity of 50.6 thousand tons of poultry meat.

In the region, much attention is paid to dairy farming. The capacity of 21 milk processing enterprises and workshops is 280 thousand tons of milk per year, which is 81% loaded. There are 82 dairy farms for 25.7 thousand heads to load dairies.

This year, the sown area of ​​sugar beet was brought to 16.1 thousand hectares. The areas will increase annually, taking into account the involvement of irrigated lands in the circulation.

“I would also like to dwell on the development of gardening. This year, an additional 1.2 thousand hectares of orchards were planted (apple trees — 0.6 thousand hectares), the total area has been increased to 24.7 thousand hectares, of which Aport apples — 1.6 thousand hectares, intensive gardens — 2.4 thousand hectares We plan to harvest 139 thousand tons of fruits, including 91.8 thousand tons of apples,” Batalov said.

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