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USDA International Egg and Poultry


29 January 2014

USDA International Egg and Poultry: Kazakhstan’s Poultry SituationUSDA International Egg and Poultry: Kazakhstan’s Poultry Situation

Poultry meat production is unofficially estimated to reach 125,000 metric tons (MT) in 2013, a 2% increase over 2012 production levels (123,000 MT).
USDA International Egg and Poultry

Production

Production in Kazakhstan has been increasing since the mid 1990’s and saw a 20% increase from 2011 to 2012; however expansion in 2013 was heavily affected by high feed costs. About 61% of production in 2012 came from large, modern agricultural enterprises in comparison to 48% in 2007. Kazakhstan’s Ministry of Agriculture plans to produce over 230,000 MT by 2016 with the construction of new and the modernization of existing establishments.

Government Production Support and Strategy

In 2013 Kazakhstan’s Ministry of Agriculture made supporting domestic poultry production a priority by releasing the Kazakhstan Agricultural Development Program (2013-2020). The Program details its goals of doubling poultry production to 246,000 MT by 2020 and procuring subsidized day-old chicks and hatching eggs. Kazakhstan plans to increase broiler chicken procurement from 287,000 to 433,800 by 2002, layer chick procurement from 737,000 to 1,011,000 by 2020, and hatching egg procurement from 433 million eggs a year to 5.1 million eggs per year by 2020.

The Ministry of Agriculture outlined measures the Government is using and will continue to use to support the industry. These include: the provision of inexpensive loans that include leasing and investment subsidies for the construction of new and the modernization of existing farms, assistance in establishing local breeding genetics for meatbreeds of poultry, establishment of epizootic situation control and realization of biosafety international standards at farms, utilization of market protection measures from low quality imports and unfair trading practices, provision of professional trainings for poultry specialists, provision of subsidies for feed costs, and sourcing poultry farms with forage grain at fixed prices.

Primary challenges to these goals include: a lack of qualified staff; underutilized capacity; biological and food security threats; high production costs due to high feeding costs, power costs, and expensive genetic; poorly developed local scientific studies on technology and feeding; lack of local cross breeds for meat and egg poultry making Kazakhstan dependent on imports; and a lack of good quality and low cost veterinary drug supplies.

In 2013, Kazakhstan reported 8.5 billion Tenge ($56 million US Dollar (USD)) was used to subsidize poultry production, a 30% increase from 2012. This included: hatching egg subsidies of 91.9 million Tenge ($600,000 USD) or a 3% increase from 2012, subsidies for day old chicks at 123.7 million Tenge ($820,000 USD) or a 400% increase from 2012, and the announcement of a new investment subsidy to partially compensate poultry farms for construction costs effective 2014.

The Government of Kazakhstan announced subsidy levels for the purchase of breeding stocks, and in 2013 the subsidy for meat breed grandparent stock day old chicks is not more than 50 of the purchase price or 303 Tenge ($2 USD) per chick, layer breed parents stock day old chicks is also not more than 50% or 50 Tenge ($0.33 USD) per chick, and for hatching eggs not more than 50% or 21 Tenge ($0.14 USD) per egg.

The US signed a bilateral US-Customs Union certificate for day old chicks and hatching eggs in March 2013, which now allows for these US products to be shipped to Kazakhstan. A copy of the certificate can be found at: http://www.aphis.usda.gov/regulations/vs/iregs/animals/downlaods/ru_ chicks_hateggs_cert.pdf

Consumption

Poultry meat consumption continues to expand having reached 315,100 MT in 2012 or more than double the level in 2005 (156,100 MT). In Kazakhstan beef is the primary meat consumed, however poultry is the second most consumed meat despite its more competitive pricing. Per capita consumption of eggs has increased from 172 in 2005 to 232 in 2012.

Trade

Kazakhstan is largely dependent on poultry imports with last year seeing levels of about 60% of poultry meat being imported in comparison to 40% being produced domestically. The US is the largest supplier of poultry to Kazakhstan.

In 2013, Kazakhstan had a Tariff Rate Quota (TRQ) of 110,000 MT for poultry; however the release of these quota volumes was severely delayed with the second tranche being released in mid-October 2013 (75,000 MT). As a result of the delay, US poultry exports were sharply lower from January-September 2013 in comparison to previous years. Yet with the release of the quota large volumes of US poultry were shipped to Kazakhstan in the 4th quarter of 2013. Conversely, the delay in the TRQ release resulted in increased shipments from Russia (19,000 MT) and the Ukraine (over 17,000 MT) from January- September 2013. Officials from Kazakhstan’s Ministry of Agriculture have asserted domestic producers have been hurt by some Ukrainian and Russian suppliers selling at dumping prices, not following Customs Union requirements, and injecting water into poultry at levels exceeding norms. On October 30, 2013 the Customs Union announced TRQ volumes for 2014 with poultry levels for Kazakhstan unchanged (110,000 MT).

Source: USDA FAS Gain Report December 19, 2013: Poultry Sector Update / USDA FAS Gain Report October 24, 2013: Kazakhstan Agricultural Development Program 2013-2020 / USDA FAS Gain Report October 22, 2013: Kazakhstan Distributes Remaining 2013 Meat TRQ Allocation / USDA FAS Gain Report November 1, 2013: Eurasian Economic Commission Announced 2014 Meat, Poultry, and Whey TRQs

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