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Major industry of Kazakhstan

To Develop Food Industry of Kazakhstan

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Meruert Seidumanovf, Research Fellow, KazISS under President of Kazakhstan, the "Kursiv», № 23 (500) 13 June 2013

President Nazarbayev in his annual address to the nation of Kazakhstan "Strategy Kazakhstan-2050 - a New Policy for the Established State" set the achievement of a leading position in the global food market and increase in agricultural production as a priority task for the near future. Having a developed food industry in Kazakhstan is particularly relevant amidst the changes in external environment; the Customs Union and future joining the WTO and the internal conditions; population growth, increase in food consumption and alteration of the consumption patterns toward more diverse and higher quality products.

According to the Statistics Agency, in January-October 2012 the physical volume of food production in relation to the corresponding period in 2011 was 103% and in the beverage industry the figure was 114.9%. In terms of the GDP structure, the share of food industry is 15.5%, ranking second only to the metallurgical (37.9%).

Export of animal products and vegetables as well as processed food is 3.5%, while import account for 9.1%. In January-September 2012, food imports exceeded exports significantly. Kazakhstan increased its food import from the CIS countries. In the meanwhile, it exports much more to the rest of the world.

As for the export structure, the largest share is flour (68.1%), wheat, cereals and rice (41.9%), fish and fish products (30.4%). Kazakhstan’s agriculture is increasingly integrated into the global food markets shaping the balance of trade taking up 17.6% of total world exports and 15.3% of total world imports.

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