Kazakhstan occupies the leading position in terms of potato production in Central Asia. After the crisis in agriculture in the 1990s, the republic quickly brought the sub-sector to a qualitatively new level. And today it not only fully provides itself with potatoes, but is also a stable exporter of them.
Quantum leap
Modern potato growing in the Republic of Kazakhstan (RK) was formed in the period from 2007 to 2014. Since then, productivity and product quality have been growing due to an increase in the level of agricultural production and the competence of farmers.
“Potatoes are a socially significant and very important product for the region,” explains the Chairman of the Board of the Union of Potato and Vegetable Growers of Kazakhstan Kairat Bisetaev. – In conditions of economic crises and geopolitical challenges, culture effectively solves the issues of food security of entire countries.
There are about 160 farms in the republic that grow potatoes on an industrial scale. The total area under crops in 2023 exceeded 36 thousand hectares. The average yield for small peasant farms is 15-25 t/ha, for larger ones - 30-45 t/ha. In the south of the country, representatives of the sub-industry manage to harvest two full harvests a year, the first of which “closes” the off-season in the period from June to July inclusive.
“In October, the farm finished harvesting potatoes from an area of 205 hectares, eight of which were under seeds,” says the agronomist of Agropeasant Dvor TOO. Alexander Matvienko. – In an effort to increase the profitability of crops, we introduce advanced technologies into the production process. As a result, in some areas we receive up to 63 tons of products per hectare.
“At the beginning of the season, 336 hectares were allocated for potatoes,” says the director of Baimyrza Agro-2018 LLP. Maxim Bukaemsky. – The lower yield level that our company adheres to is 40 tons per hectare. However, depending on the year, this figure can increase up to one and a half times.
“The area under crops has been increased from five to 500 hectares in two decades, and we are not going to stop,” assures the director of Astyk-STEM LLP. Sergei Zvolsky. – In 2022, the drip-irrigated enterprise received up to 57 tons of potatoes per hectare with an average yield of 38-40 tons.
“This season we have planted crops on 416 hectares,” the director of Naydorovskoe LLP continues the topic. Pavel Lushchak. – Mass cleaning on the farm usually starts on September 21 and ends three weeks later. In rare years, the deadlines are shifted, as this time. Due to heavy rains, we started digging potatoes on September 43, but the average yield was higher than last year: 37 tons per hectare versus XNUMX.
Powerful shoulder
About 10 years ago, the first industry associations and unions appeared in the republic, which systematically began to protect the interests of farmers. Their task is to convey the necessary information to the state and, together with it, take the steps necessary to solve problems.
“The Union of Potato and Vegetable Growers of Kazakhstan, created in 2008, has been fully operational since 2016,” says Kairat Bisetaev. “Since then, we have been providing up-to-date data on the state of affairs in the sub-industry to the authorities. The result of the dialogue that we managed to establish is the emergence of unprecedented measures of state support. For example, subsidizing half of farmers’ costs for organizing irrigation, purchasing mineral fertilizers and pesticides.
From 2023, the previous 25 percent subsidy for the construction of potato and vegetable storage facilities has increased to 40 percent. If a manufacturer installs refrigeration equipment to store products from the previous harvest in the summer, he will be compensated for 50% of the costs. State support is provided to those who purchase agricultural machinery, equipment, and in many other areas.
“50% of the cost of seeds of the first reproduction is also subsidized,” adds Pavel Lushchak. – In addition, the state returns 75% of the cost of paying for water delivery services using mechanical lifting for irrigation.
There is potential
Agricultural enterprises in Kazakhstan mainly grow potato varieties of German and Dutch selection. Farmers buy foreign elite material and propagate it in their fields to the first and second reproductions.
“Domestic crop varieties cannot compete with European ones, being inferior to them in terms of marketability, keeping quality, and disease resistance,” I am convinced Kairat Bisetaev. – All of them were bred for the south-eastern regions of the republic, although potatoes are mainly grown in the north of the country, where varieties with a shorter growing season are needed.
“We have been using European seeds for many years now,” confirms Pavel Lushchak, – but when problems with logistics began, their costs increased sharply. Therefore, this season we took a batch of seeds from Turkey for testing, which, including delivery, cost us exactly half as much.
“At this stage there is a need to focus on seed production,” says Maxim Bukaemsky. – In 2021, on the initiative of the Kazakhstan Union of Potato and Vegetable Growers, a project was launched in which the Dutch company NAK, together with Belgian experts, inspects fields with seed potatoes, for example, on our farm, in a pilot mode. This gives the republic a real chance to rise to the level of European producers.
“Every year we test new potato varieties,” says Alexander Matvienko, – we select for ourselves those that are well stored, show high yield and decent quality. Now we are seriously thinking about our contribution to the development of seed production. By buying super elite in Europe or Russia, we can propagate seeds and provide the domestic market with elite.
“In selection and seed production, we are still completely dependent on imports,” concludes Kairat Bisetaev. – But we have all the opportunities for successful cultivation of seed potatoes: sharply continental climate, vast territories, large areas under irrigation. Today, the Union, together with the Institute of Plant Biology and Biotechnology, with funding from the Ministry of Agriculture of the Republic of Kazakhstan, is preparing a legislative framework that will allow the transition to an inspection and certification system similar to the European one. The project with the participation of NAK, which has already been discussed, is aimed at creating conditions for cooperation with Western companies. They are just looking for countries where they can grow seeds for sale in the growing markets of Asia.
Europe – Asia
Field, warehouse equipment, equipment and irrigation machines in Kazakhstani farms are mainly of European and North American production.
“Our potato growers,” he assures Kairat Bisetaev, - in terms of technical equipment, the level of technology for growing crops and storing crops, they are practically not inferior to Western farmers.
“There are three major dealers of global manufacturers of agricultural machinery in the republic,” notes Alexander Matvienko. – They offer a wide range of products. Any machines and units are in stock, and for some components pre-order is required.
“When buying Western equipment, we focus on its reliability,” explains his choice Sergey Zvolsky. – We try to take cars with additional functions in order to make the most of their capabilities. For example, we have a tractor with artificial intelligence and a self-propelled harvester that handles all the harvesting.
Access to sources
The republic's farms that grow potatoes on an industrial scale are equipped with modern irrigation systems.
“We use flood waters, collecting them on special rafts in the spring, when the snow melts,” says Pavel Lushchak. “Due to irrigation, we managed to increase the yield several times, and one hectare of irrigated field replaced 30-35 hectares of dry land.
“We have circular-type sprinklers,” he shares his experience. Maxim Bukaemsky. – We cannot afford frontal ones due to the terrain. But working in hilly areas has its advantages. This is how we gain access to water sources located along the hills.
“Today the area of irrigated land on the farm is 600 hectares,” explains Alexander Matvienko, – but next year it will increase by another 200. Unfortunately, this is the limit, otherwise during the season we will not have enough water received from the Podlesnenskoye reservoir.
“The problem of water shortage, as in many countries, is very relevant,” states Sergey Zvolsky. “In solving it, we started drilling wells and found several sources, where now there are reservoirs with a volume of 8-10 thousand cubic meters.
Stop factors
A number of objective reasons hinder the realization of the republic’s enormous potential in potato growing.
“One of the main difficulties remains the lack of working capital,” says Kairat Bisetaev. – For this reason, not all farmers comply with technology and cannot get a decent harvest and high quality products. Small manufacturers operating without hired employees are severely lacking the necessary competencies.
“The shortage of specialists in the industry is close to critical,” he laments Alexander Matvienko. – And even graduates of specialized educational institutions do not want to work in agriculture. Good agronomists, machine operators, and technologists are worth their weight in gold, and they are trying with all their might to retain them.
“Our company, when solving personnel issues, looks for suitable guys while they are still studying at school or college,” says Sergey Zvolsky.– And so that people do not leave for a better quality of life, we are trying to erase the line between city and village, creating favorable conditions for employees.
According to the Union of Potato and Vegetable Growers of Kazakhstan, modern storage facilities equipped with climate control are designed for simultaneous storage of over 500 thousand tons of products. But due to the increase in area and increase in yield, there is a need for additional capacity.
“Our potato growing project began with the construction of a storage facility for 12 thousand tons,” notes Maxim Bukaemsky. “We understood that it was impossible to build a successful business in this area otherwise. Manufacturers who do not have the funds to organize storage lose a significant share of their profits.
Markets determine
The republic's farmers more often sell their products through intermediaries, and many are not satisfied with the conditions put forward by retail. Single networks work directly with manufacturers, including under forward contracts. In such cases, farmers receive advance payment with fixed prices during the period of preparation for spring field work to replenish working capital.
“The specificity of Kazakhstan is that markets, or bazaars, play the most important role in the sale of agricultural products,” notes Kairat Bisetaev. – According to the Union’s estimates, over 80% of potatoes are supplied to retail or directly to the end consumer through bazaars. Some of them also serve as wholesale distribution networks.
“About half of the harvest goes to wholesalers,” explains Pavel Lushchak, – and we supply the other one to retail chains. We are not in a hurry to sell, we put the potatoes in storage until the start of the new season and sell them monthly in equal parts.
“We have to withstand serious competition,” says Maxim Bukaemsky. – Russian, Kyrgyz, and Iranian potatoes are widely represented on the market. And yet our products reach consumers thousands of kilometers away, for example, in Moscow.
“During the pandemic, Kazakhstanis lost the Uzbek market, losing it to Russia,” recalls Alexander Matvienko. – In 2021, we again actively sold potatoes to our neighbors, and in 2022, sales took place mainly within the country. But here farmers who grew low-quality products reduced our prices.
“The reason for price jumps is that the market is not regulated in any way,” I’m sure Sergey Zvolsky. – One year, demand is higher than supply, and the cost of potatoes soars. In another, the number of players aimed at easy profit increases, and we get an overproduction of culture.
Specified trajectory
“The Union of Potato and Vegetable Growers of Kazakhstan continues its mission,” emphasizes Kairat Bisetaev. – Now we are deciding how to make entry into the potato business, which is not cheap at all, more accessible, especially for small farmers. In addition, we are actively looking for foreign investors for a very important segment for us - potato processing. This area needs to be developed practically from scratch, and this is a real challenge for us.
“Potato growers are hampered by limited opportunities to sell their products,” he believes Pavel Lushchak. – The volumes that go to neighboring republics or Russia are, in my opinion, not enough for full exports. Therefore, new markets are needed.
“Next to us is Uzbekistan with a population of forty million,” he reasons. Maxim Bukaemsky, – and other countries in the Asian region, where potatoes have become one of the main foodstuffs. I think we have prospects for growth, and quite good ones at that.
“Since we took this matter seriously,” he says Sergey Zvolsky, – and we have specialists, we have gained some experience, the issues of quality and storage of the crop have been resolved, sales chains have been established, we will go further in our development. And we will definitely reach new heights.
Irina Berg