Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Agriculture in Kazakhstan: A success story

27.10.2011
IAMO study shows: Agro-boom eradicates rural poverty

Kazakhstan extended its cereal acreage by five million hectares in the past ten years, doubled its added value in the grain sector and eradicated rural poverty as workers were becoming increasingly scarce.

These insights emerge from a study of the Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO) that was recently presented to the World Bank in Washington, USA. Future productivity increases, however, require continued political reforms in terms of regulation of land and capital markets as well as intensified promotion of education and research.

In view of increasing global demand for basic foodstuffs, export countries with large cultivation areas have a key function for food security. Concerns are being voiced, on the other hand, that worldwide intensification of agricultural production in favour of export products fails to adequately consider the needs of local population groups. Against this background the study presented by IAMO documents the development in Kazakhstan’s northern grain region. Previously unpublished statistics and local case studies collected by researchers Martin Petrick, Jürgen Wandel and Katharina Karsten verify the enormous economic upswing achieved by this sparsely populated region in the last ten years.

While the grain acreage was extended by some 50 percent to 15 million hectares, state-of-the-art agricultural machinery and equipment and higher utilisation of mineral fertilizers almost doubled the value added in the agricultural sector between 2001 and 2009. Markedly raised grain prices are a major cause of the observed agro-boom. ‘We were amazed to see that farm-worker wages rose at almost double the speed of grain prices’, explains the senior researcher of the study, Dr. Martin Petrick. Productivity gains and high cereal prices are typically passed on to employees in this region that is dominated by wage-based agricultural enterprises. The decisive factor for the broad increase in rural income was an incremental scarcity of farm-workers. ‘Farm managers unanimously reported difficulties in getting and maintaining qualified employees’, Petrick adds. This was especially true to say of skilled workers capable of operating modern, satellite-controlled agricultural machines. This scarcity combined with intensification of agricultural production has highly positive effects for rural populations. The study demonstrates that consumption expenses of rural households doubled within six years, while the percentage of households with below-poverty-line incomes dropped from 40 percent ten years ago to five percent in 2010.

A surge in revenues from oil exports and relative political stability under president Nursultan Nasarbayev, who has been in office for 20 years, furthered the recent agricultural upswing. Current agro-political framework conditions, however, may rather hamper future developments, said Dr. Petrick during presentation of the study to the World Bank in Washington D.C., USA. Capital and land markets in the former Soviet republic are still under heavy government influence. Most land is still in state ownership, under long-term leases and non-transparent assignment procedures and state-controlled leasing rates ensure that not always the best farmers are considered. The state holding ‘KazAgro’ grants interest-subsidised agricultural credits through its subsidiary ‘KazAgro-Finance’, commercial banks have largely withdrawn from agricultural business in recent years. The Kazakh government should replace its active interference into capital and land markets by a stepped-up commitment in education, research and further infrastructure extension, said Petrick in Washington. The study was supported by the German-Kazakh Agriculture Policy Dialogue and the Analytical Center of Economic Policy in the Agricultural Sector (ACEPAS) in Astana. It is available as discussion paper for downloading at the IAMO website.

About IAMO
The Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO) is an internationally renowned research institution. With more than 60 scientists and in cooperation with further leading research institutions, it is addressing urgent scientific and social issues in agricultural and food economics and rural areas. Main regions under review include Central and Eastern Europe as well as Central and Eastern Asia. Since its foundation in 1994, IAMO has been part of the Leibniz Association, a German community of independent research institutions.
Academic contact
Dr. Martin Petrick
Tel. +49 345 29 28 120
petrick@iamo.de
Public relations contact
Rebekka Honeit
Tel. +49 345 29 28 330
honeit@iamo.de

Rebekka Honeit | idw
Further information:
http://www.iamo.de/en
http://www.iamo.de/dok/_3903.pdf

More articles from Agricultural and Forestry Science:

nachricht New 3-D model predicts best planting practices for farmers
26.06.2017 | Carl R. Woese Institute for Genomic Biology, University of Illinois at Urbana-Champaign

nachricht Fighting a destructive crop disease with mathematics
21.06.2017 | University of Cambridge

All articles from Agricultural and Forestry Science >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Manipulating Electron Spins Without Loss of Information

Physicists have developed a new technique that uses electrical voltages to control the electron spin on a chip. The newly-developed method provides protection from spin decay, meaning that the contained information can be maintained and transmitted over comparatively large distances, as has been demonstrated by a team from the University of Basel’s Department of Physics and the Swiss Nanoscience Institute. The results have been published in Physical Review X.

For several years, researchers have been trying to use the spin of an electron to store and transmit information. The spin of each electron is always coupled...

Im Focus: The proton precisely weighted

What is the mass of a proton? Scientists from Germany and Japan successfully did an important step towards the most exact knowledge of this fundamental constant. By means of precision measurements on a single proton, they could improve the precision by a factor of three and also correct the existing value.

To determine the mass of a single proton still more accurate – a group of physicists led by Klaus Blaum and Sven Sturm of the Max Planck Institute for Nuclear...

Im Focus: On the way to a biological alternative

A bacterial enzyme enables reactions that open up alternatives to key industrial chemical processes

The research team of Prof. Dr. Oliver Einsle at the University of Freiburg's Institute of Biochemistry has long been exploring the functioning of nitrogenase....

Im Focus: The 1 trillion tonne iceberg

Larsen C Ice Shelf rift finally breaks through

A one trillion tonne iceberg - one of the biggest ever recorded -- has calved away from the Larsen C Ice Shelf in Antarctica, after a rift in the ice,...

Im Focus: Laser-cooled ions contribute to better understanding of friction

Physics supports biology: Researchers from PTB have developed a model system to investigate friction phenomena with atomic precision

Friction: what you want from car brakes, otherwise rather a nuisance. In any case, it is useful to know as precisely as possible how friction phenomena arise –...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Closing the Sustainability Circle: Protection of Food with Biobased Materials

21.07.2017 | Event News

»We are bringing Additive Manufacturing to SMEs«

19.07.2017 | Event News

The technology with a feel for feelings

12.07.2017 | Event News

 
Latest News

NASA looks to solar eclipse to help understand Earth's energy system

21.07.2017 | Earth Sciences

Stanford researchers develop a new type of soft, growing robot

21.07.2017 | Power and Electrical Engineering

Vortex photons from electrons in circular motion

21.07.2017 | Physics and Astronomy

VideoLinks
B2B-VideoLinks
More VideoLinks >>>