Kazakhstan’s agricultural sector produces only 4.7% of country’s GDP – Tokayev

“We should admit that despite our potential, the paces of development of agricultural production lag behind the average statistical indicators of economic growth. Agrarian sector produces only 4.7% of the country’s GDP. The level of agricultural productivity remains the lowest compared to other sectors,” Tokayev said.

“Due to the absence of up-to-date soil cultivation technologies as well as lack of quality seed grain and modern harvesting vehicles, yielding capacity in Kazakhstan remains low, compared to EEU countries,” he added.

“As per preliminary data, in 2015, the productivity of the sector made slightly more than $5600 per one employed that is 3.5 times less than the average indicator of the country and much less than in developed countries. This proves that agricultural production growth is achieved mostly due to extensive factors, but not due to wide application of effective technologies, modern equipment and research achievements,” he noted.

In this view, as the Senate Speaker pointed out, the accession of Kazakhstan to the WTO and EEU is a real chance to bring the agricultural sector of the country to a brand new level of development, to enhance its positions at the global food market. “The achievement of this goal requires serious changes in the structure of agricultural production, in the principles of its functioning and in government’s approaches to agricultural policy. First of all, the point at issue is the effectiveness and competitiveness of the domestic agrarian sector amid its functioning in global economy where competition rises nearly in all areas,” Tokayev concluded.

According to him, agrarian sector is a large consumer of the market of services and industrial commodities. About half of Kazakhstan’s population is working in agricultural sector. 42% of Kazakhstani people live in rural areas, the majority of which is employed in trade and processing of agricultural products.