24.04.2026, 00:33

Senate proposes to simplify access to financing for agribusiness in cities

It is proposed to ease land requirements and introduce alternative mechanisms for participation in support programs

In Kazakhstan, proposals have been put forward to adapt preferential support programs for farmers to the specifics of urban entrepreneurship. This initiative was voiced by Senator Alisher Satvaldiev.
According to him, systemic barriers have emerged in Shymkent for farmers seeking to participate in the “Igilik” and “Bereke” preferential lending programs. The current requirements do not fully take into account the specifics of farms operating in urban environments. In this regard, it is proposed to simplify the minimum land size requirements for cities of republican significance or introduce alternative mechanisms. It is also suggested to recognize feed supply agreements on leased land as valid grounds for participation, develop dedicated financing instruments for urban farmers, and expand state support measures for the agricultural sector of Shymkent.

The senator уточнил that, under the current program conditions, to purchase pedigree cattle, a borrower must possess agricultural land of a certain size. Specifically, at least 1 hectare of arable land or 3 hectares of pasture is required per head of livestock. While such requirements are appropriate for rural areas, they are difficult to meet in urban settings. This is due to the fact that, under existing legislation, agricultural land within city boundaries is not classified as a separate category.

As a result, potential investors interested in developing livestock farming in Shymkent face limited access to financing due to the current requirements.

At the same time, statistics indicate a high agricultural potential of the city. The total area of Shymkent is about 116 thousand hectares, nearly half of which is agricultural land.

Currently, eight feedlots with a total capacity of 16.5 thousand heads are operating in the city. Annually, about 70 thousand tons of milk and 8 thousand tons of meat are produced. However, this volume is insufficient to fully meet the needs of the population exceeding 1 million people. The level of supply is about 35% for dairy products and only 12% for meat.

In addition, about two-thirds of dairy farms and feedlots that are supposed to form a food belt around the мегаполис are currently underutilized, the senator concluded.

 

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