Yerkin Tatishev: Agriculture in Kazakhstan on the Rise

By Joseph West

Feb 18, 2020 03:18 PM EST

farms(Bigstock) (Credit: Getty Image)

The renewal of Kazakhstan's agricultural industry is starting to attract major investments from American companies, highlighting the enormous potential of the sector and the country's growing economy. Kusto Group and Yerkin Tatishev, the company's Chairman of the Board of Directors, have played a significant role in establishing several joint ventures with leading American agro-business companies,  and the Government of Kazakhstan that will have a transformational impact on the country's agriculture industry.

The Government of Kazakhstan has introduced important economic reforms in cooperation with private businesses to encourage further growth and development in the country's agricultural sector. A broad initiative has been launched to expand and modernize the industry, beginning with beef production.

Kazakhstan: A wealth of potential

"Kazakhstan is differentiating itself through innovation, attracting international investors and heading towards the front the pack [of the group of developing middle-income economies]," says Yerkin Tatishev. "Global business leaders can't fail to take notice."

Last summer, Moody's Investors Service upgraded Kazakhstan's investor outlook to positive, reflecting economic resilience, robust growth and rising incomes. Kazakhstan is currently ranked 25th among 190 of the world economies on the World Bank's Ease of Doing Business annual ratings. The country's ranking has improved by 38 positions in ten years.

Kazakhstan is the ninth largest country in the world. The country has made economic diversification a priority to promote long-term, sustainable growth. The country's vast expanses of wide-open space, fertile land and its geostrategic location make it uniquely positioned to become a leading food producer in the Central Asian region and beyond.

A strong agricultural heritage coupled with a new push to revitalize the traditional agricultural sector through the introduction of new technologies and modern best practices has the potential to not only increase crop yields but inspire an overhaul of the industry that could lead to sustainable growth in jobs and income across the region.

Kusto Group develops significant partnerships with American firms

Large American agricultural firms have taken notice of Kazakhstan's emerging agricultural potential in the region. The country's proximity to large export markets such as China and Russia make it an advantageous investment location, especially during a time when American agricultural producers are increasingly feeling the squeeze of trade disputes.

From Left: Yerkin Tatishev of Kusto Group, Askar Mamin, Prime Minister of Kazakhstan, and Steve Stouffer of Tyson Fresh Meats sign an agreement to develop a modern meat production facility in Kazakhstan.
 From Left: Yerkin Tatishev of Kusto Group, Askar Mamin, Prime Minister of Kazakhstan, and Steve Stouffer of Tyson Fresh Meats sign an agreement to develop a modern meat production facility in Kazakhstan.

Tyson Fresh Meats, a division of Tyson Foods, one of the world's largest food companies, recently signed an agreement with Kusto Group and the government of Kazakhstan to collaborate on a project that will include the construction of a modern meat processing facility in the country. The plant is expected to have a harvest capacity of 2,000 head per day and create hundreds of skilled jobs.

The project is projected to have an annual agricultural economic benefit well in excess of one billion dollars, making the deal the largest in the agricultural sector since Kazakhstan's independence.

Earlier last year, Kusto Group signed a deal with US-based Valmont Industries to build a factory to produce precision irrigation equipment in Kazakhstan. Valmont Industries is a leading producer of global infrastructure products. Currently, only seven percent of Kazakhstan's land is irrigated, and this land accounts for 40 percent of total crop yield. The introduction of modern irrigation technologies will undoubtedly, have a transformative effect on Kazakhstan's agricultural sector.

Kusto Group's local KazBeef operation has also expanded with the recent construction of a new meat processing facility in the Akmola region of Kazakhstan. KazBeef was the first company to import world-class pedigree Angus and Hereford livestock to the country, helping to establish a strong genetic foundation for their herd.

The company also developed a specialized division within its agricultural operations, KazSeed, dedicated to the development and production of high-yield, non-GMO seeds bred specifically for the climate and soil conditions of Kazakhstan. KazSeed was established through a joint venture with the American-based Baumgartner Agriculture Science and Service.

Kusto Group aspires to become a future seed hub for Central Asia, aiming to significantly reduce expenses for farmers and increase the profitability of crop production through the production of high-quality seeds.

Kusto Group: Inspiring growth and prosperity

Through its holistic approach to agriculture, Kusto Group aims to help build a strong and sustainable infrastructure that can support a modern agro-industrial sector in Kazakhstan.

Since its inception, Kusto Group has focused on instituting reforms that achieve growth and success beyond their own operations. The group of young entrepreneurs that established the multi-sector international company now based in Singapore got their start revitalizing a small mining operation in Kazakhstan.

"Thinking about how a project affects local stakeholders such as a town or community is very important," Daniel Kunin, a managing director at Kusto Group, explained. "At Kusto, there is a deep sense of ethical responsibility to all stakeholders that goes beyond the usual slogans."

The investment of leading American firms in Kazakhstan's agricultural industry represents a strong vote of confidence in the country's economy. These deals would not be possible without the support of the government and the cooperation of strong local businesses.

"The development of deep, long-term partnerships with major American agricultural firms, based on knowledge-sharing and technological advance, represents a major economic opportunity for my country and the region at large," said Tatishev on the growing relationship between Kusto Group and its American Partners. "There has never been a more exciting time to be involved in agriculture and nowhere more exciting to develop it than Kazakhstan."

 

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