02.08.2024, 18:50
🥛 Doubling Subsidies – A Step Towards Protecting the Dairy Industry from Import Pressure
🔹 Marat Itegulov, the head of the Association of Milk and Dairy Product Producers of Aktobe region and the chairman of the board of directors of JSC "Ice", proposes to double the state subsidies for the dairy sector in Kazakhstan to support producers facing intense competition and pressure from cheap imports from Russia.
🔹 There is an urgent need to subsidize transportation costs for delivering products, especially to foreign markets such as Uzbekistan and other Central Asian countries, to make Kazakhstani products competitive.
🔹 Unfair trade conditions due to the full compensation of transportation expenses by Russian manufacturers force Kazakhstan to reconsider the level of support for its dairy farmers in the face of rising inflation and increasing production costs.
Marat Itegulov, the head of the Association of Milk and Dairy Product Producers of Aktobe region and the chairman of the board of directors of JSC "Ice", suggests doubling government subsidies for the dairy industry. He states that this would be a crucial step in supporting producers who are struggling with the influx of cheap dairy products from Russia, as reported by www.eldala.kz.
Currently, the factory's products are delivered not only to the western regions of Kazakhstan but also to major cities such as Astana and Almaty. The factory's management aims to double the processing volumes within the next two years, but emphasizes the need for increased government support to maintain competitiveness against the growing imports.
Itegulov also focuses on the need to subsidize transportation costs for delivering products both domestically and abroad. He highlights Uzbekistan and other Central Asian countries as promising markets. He points out the unequal conditions for Kazakhstani and Russian producers, noting that Russian manufacturers receive full compensation for transportation expenses when exporting their products to Kazakhstan, which makes the competition particularly fierce.
Considering the level of inflation and the rising cost of production components, Itegulov calls for the necessity of doubling the current subsidy rates to stimulate the development of the industry and support local producers.