Agricultural complex: State support and market mechanisms

At extended session of the Cabinet of Ministers on December 20, President Gurbanguly Berdimuhamedov outlined number of objectives, which are aimed at the provision of steadfast development of the country in 2019.

The main objective is to support stable high growth rates by intensive development of all spheres of the economy and its diversification, implementation of major investment projects that have international and regional importance.

Improvement of profitability of the branches and competiveness of national production, growth of volumes of export oriented goods, reduction of import, investment activity, privatization of the state property, creation of favourable conditions for private sector are among the main directions of work next year.

These priorities are reflected in the state agrarian policy.For the last several years, large-scale changes have been carried out in this strategic sphere.The main goal of these reforms is to provide the abundance in food market, which is important factor of improvement of life quality of the citizens of the country.

Systematic work for improvement of production of agricultural crops and land fertility, active development of virgin lands, solution of land improvement and water supply issues are the base of successful development of national grain and cotton production.

Significant investments are allocated for renewal of technical fleet of agricultural complex, which is supplemented with modern tractors, harvesters and other equipment of latest modifications from the leading manufacturers.

State procurement of production, exemption of farmers from taxes, provision of beneficial conditions for technical service, purchase of seeds, mineral fertilizers, pest control chemicals, all these measures of financial and economic stimulation give positive effect and support the interest of agricultural producers in the results of work.

Special attention is paid to rational use of land, water and other natural resources, environment protection, development of agrarian science, selection and breeding, introduction of innovative technologies, advanced management methods, training of qualified specialists, creation of modern social infrastructure, etc.

Adoption of the State Programmes for import substitutive production and increment of export volumes was important step toward further development of food segment of national economy, satisfaction of the population requirement in wide variety and quality food products.

It is planned to implement more than 110 projects including in agriculture and food industry under these programmes.At the same time, the main role is given to the state and private partnership, in other words, to the consolidation of the efforts of the state and private sector for the achievement of outlined objectives.

Big livestock and poultry complexes of full production cycle, starting from the cultivation of forage crops and feeding of young animals to meat processing and diary production, have been built and are continued to be built in every region of the country.

The facilities produce various cheeses, sausages, milk, yoghurt, sour cream, butter, etc.Hothouse farms producing tomatoes, cucumbers, pepper, eggplants as well as mushrooms, green, etc.provide the population with fresh vegetables all year around.

Production of canned fruits and vegetables, natural juices, drinks, pasta, bakery and confectionary has been developed.For example, livestock farming complex, which was built by the order of Guş toplumy private company, which production is very popular in Turkmenistan and abroad, has been put into operation this year in Ahal velayat.

Poultry complex, which was opened in Ahal Velayat in 2009, has become the first private facility of this type.Its success helped to arrange efficient system of cooperation between private section and state sector, foreign suppliers and banking structures.

In fact, technology of the state support of private sector, which is drive engine of economic growth in the world, has been successfully tested.Production output of new facility of Guş toplumy is 200 tons of meat per year.

At present, there are 200 cattle, which is planned to be increased to 800.There are all conditions for breeding of the animals.More than 300 hectares of land have been allocated to the entrepreneurs for long lease. 290 hectares are used for cultivation of forage crops.

More than 60 cattle of Simmental breed have been bought for the farm from Austria.The complex has specialized equipment from United Kingdom, Austria, Italy and Israel.Automatic equipment allows milking up to 30 cows simultaneously.

Average milk production will be 22-25 litres per day.Chipping of the animals at the farm, which allows remote monitoring the condition of the cattle in online mode, is another know-how.

Ajaýyp ussat halal önümler business entity, the member of the Union of Industrialists and Entrepreneurs, which specializes in production and processing of agricultural products, continues expanding its activity.Several years ago, the entrepreneurs have built the first meat and dairy complex in Baherden etrap.

Cows of the most famous breed the Golstein, which is known by its record milking, and the Simmental, which is productive both milk and meat and adopts well in different climate conditions, have been brought from Germany.

There are more than 1,100 sheep at the farm.In addition, fruit garden has been made on the territory of Archman farming association where 50,000 seedlings of fruit trees have been planted on 75 hectares.

Open grounds are used for the vegetables.Livestock complex, which was built by Ajaýyp ussat halal önümler business entity and would be specialized in meat production including marble beef, has become another step toward the formation of strong livestock complex in Ahal Velayat.

For this purpose, several dozens of Aberdeen Angus cows have been bought in Germany.At present time, there are about 600 animals at the farm.It will produce 150 tons of meat per year including 15 tons of marble’ beef juicy and tender meat with thing layers of fat.

It is the meat with “Certified Angus Beef” label that is the most required.Therefore, there are opportunities to arrange export supplies of this product, which is on high demand by the world restaurant networks.

Livestock complex, which was built in Tejen etrap by Azapkeş Individual enterprise, is among new facilities built in Ahal Velayat.Production output of the complex is 3,000 tons of milk and 100 tons of meat per year.

In addition to local breeds of cows, the farm has more than 300 cattle of elite breeds from Germany and Ukraine.Agricultural infrastructure of Lebap Velayat was supplemented with poultry complex for production of 500 tons of high quality meat and 2.5 million eggs.

It was built by the personnel of “Eshret” farming company, the member of the Union of Industrialists and Entrepreneurs, in Lebap Velayat.Big livestock complex has also been opened in Serdar etrap, Balkan Velayat, which plans to produce 500 tons of meat per year.

At present time, there are 440 cattle at the farm.The entrepreneurs plan to increase the livestock up to 3,000 and to open processing facilities.Hothouse complex of the Ministry of Agriculture and Water Management has been put in operation in Kunyaurgench etrap, Dashoguz Velayat.

It will provide 1,800 2,000 tons of high quality and environmentally friendly production per year.Similar hothouse facility growing tomatoes was opened in Aktepe etrap of the northern region.

Project output capacity of new poultry complex, which was built in Mary Velayat, is 5 million eggs and 500 tons of chicken meat.In particular, more than 130,000 birds can be bred simultaneously at the farm.

In its turn, livestock complex, which was built by the members of the UIET in Murgab etrap, is designed for production of 100 tons of milk and 100 tons of meat per year.

The farm has 750 cattle including 150 cows of Goldstein breed.At the same time, the work for establishment of new facilities processing agricultural production and conditions of its seasonal storage is carried out.

For example, plant for production of canned fruits and vegetables including jams, juices, pickles, marinades with output capacity of one million of cans per year has been opened in Chekir village, Kerky etrap, Lebap Velayat.

New plant for production of pastry has been put into operation in Balkanabat.It is provided with modern equipment from Italy.Production capacity of technology line is 270 tons per year.

At present time, it produces ten varieties of pastry.Cold store designated for storage of 2,000 tons of fruits and vegetables has been put into operation in Bagtiyarlyk etrap of Ashgabat.

It was built by the request of the Ministry of Agriculture and Water Management and provided with specialized equipment from the leading producers of Germany, Holland and Turkey.Storage facility, which was built in Turkmenabat, is able to receive 3,000 tons of fruits and vegetables.

It has three big warehouses, auxiliary premises, sorting line, laboratory and sanitary and living facility.Efficient measures taken by the government for support of national producers, stimulation of agricultural production allowed reducing the import of food products and increasing the export.

This fact has been mentioned in the reviews of agricultural and food policies, which was published in 2016 2018 by the UN Food and Agricultural Organization under its regional initiative in Europe and central Asia “Development of Agricultural Trade and Access to International Markets”.

International experts directly connect this with the outcomes of the implementation of the programmes for import substitution and export increment initiated by President Gurbanguly Berdimuhamedov.Beneficial credits for financing of the projects in agriculture, processing and food industry to the Union of Industrialists and Entrepreneurs, additional taxes on certain imported goods are among other factors that provided rapid development of national economy.

In addition, the state supports the Trade and Industry Chamber in organization of specialized fairs and exhibitions as well as other profile structures in publishing of magazines, opening of websites, national trade representative offices abroad.

It supports the promotion of competitive local goods in foreign markets, establishment productive relations with potential importers of agricultural production from other countries.It is worth reminding that in 2015, our country received special award of the UN Food and Agricultural Programme for the achievements in the provision of food security as one of the Sustainable development goals.

Availability and variety of local goods observed before New Year in the markets and shopping centres of capital and all velayats also indicate successful solution of the objectives on production of import substitutive goods including food products.

According to the decisions of the People’s Council and Resolutions of President Gurbanguly Berdimuhamedov, special land funds of agricultural purpose have been made from arable lands of farming associations.

The lands have been given for long-term lease to joint stock ventures, farming entities and other agricultural producers. 70 percent of the lands allocated from the first fund will be used for growing of wheat, cotton and other crops included to the State order.

Remaining land can be sown with other crops for scientifically grounded crop rotation.Land plots allocated from the second fund are designated for cultivation of vegetables, potato, grape and fruit trees.

In addition, starting from the next year, the state purchasing price for cotton and wheat will be increased to encourage agricultural producers.Farming associations, agricultural joint stock ventures, scientific and research institutes, leasers, private entrepreneurs and other producers will be able to receive beneficial bank loans for 10 years.

At the same time, it is planned to have staged privatization of available livestock farms with all available livestock of the Ministry of Agriculture and Water Management.Therefore, new levels will be reached in agricultural sector in 2019, which will be held under slogan “Turkmenistan the Home of Prosperity”.

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