Livestock Farmers to Receive Preferential Loans: What is the Ministry of Agriculture Offering?

The Ministry of Agriculture of Kazakhstan continues its efforts to develop the livestock industry, discussing key support measures with sector representatives. During a meeting with businesses, Minister Aidarbek Saparov addressed topics such as preferential lending, tax regulations, and market stabilization for live cattle.

State Support: New Tools Instead of Subsidies
The Ministry plans to reform the subsidy system by shifting away from financing selective breeding work in favor of other support mechanisms. One of the proposed changes is the adjustment of subsidy regulations for livestock deliveries to meat processing plants and feedlots.
The sector is in urgent need of accessible credit resources. In 2025, the Ministry will launch a preferential lending program with an annual interest rate of 5% for up to 15 months. Additionally, investment loans with favorable terms are under consideration to encourage long-term business development.

Fiscal Measures and Market Formalization
Another key aspect is tax incentives for agricultural producers. Business representatives believe that fiscal instruments can help legalize livestock trade. In particular, tax benefits could support procurement enterprises engaged in processing wool, hides, and fruit and vegetable products.
The Ministry intends to work on this issue in collaboration with government agencies and the business community, emphasizing that combating the shadow market for agricultural products remains a top priority.

Meat Market: The Impact of Restrictions and Price Trends
A major focus of the discussion was on meat prices, particularly beef. Participants noted that previous administrative restrictions, such as export quotas and bans, have negatively impacted the industry. As a result, some farmers have been forced to abandon cattle breeding.
The rise in meat prices is largely driven by middlemen who find various ways to export livestock abroad. While the Ministry acknowledges that restrictions hinder industry growth, it also stresses that ensuring domestic market stability is a prerequisite for opening export opportunities.
Aidarbek Saparov emphasized that the government is open to considering business proposals on this matter. Further discussions will continue within the working group on livestock development under the Ministry of Agriculture, where businesses will have the opportunity to actively participate in shaping national policy in this sector.

The development of the livestock industry requires a comprehensive approach to supporting producers. Preferential lending, tax incentives, and subsidy revisions could provide farmers with the financial resources needed for growth. However, sustainable development will be difficult to achieve without reforms in administrative restrictions and effective market regulation. The open dialogue between the government and businesses, initiated through the working group, represents an important step towards creating a balanced and competitive system for the production and distribution of meat products in Kazakhstan.

Key Takeaways:
🔹 State support is changing – breeding subsidies may be replaced with preferential loans at 5% for up to 15 months. Investment loans for long-term growth are also being considered.
🔹 Taxes and market formalization – tax incentives for procurement enterprises processing wool, hides, and agricultural products could help bring the market out of the shadows.
🔹 Export outlook – farmers struggle with restrictions, but opening foreign markets requires stabilizing domestic supply. The government is looking for a balance between business and consumer interests.