COUNTRY REPORT ▶▶▶
the egg industry in 2019, but state aid will still be provided to the broiler farms.
“The government allocates direct subsidies to existing pro- ducers, plus the reimbursement of the capital costs to the new ones, when they are building new farms. We urge the government to expand state support by establishing the National Forage Fund, from which poultry farmers could buy feed grains at guaranteed prices. This would reduce risks of price volatility on the domestic grain market,” Mr Sharipov said.
Taking down the US importers Kazakhstan farmers are prepared to battle against the Rus- sian and the US poultry meat suppliers. In 2017, the country imported 172,000 tonnes of broiler meat, including 140,000 tonnes of frozen poultry from the US. The local companies call poultry from the US “the Bush legs” which is a prevailing term in the post-Soviet states that denotes chicken leg quar- ters from North America. Local poultry farmers believe these products have extremely poor quality. “We have to compete on our domestic market with imported poultry injected with water and phosphates. This is a widely-used practice aimed to increase the total weight of the broiler cuts, and hence to sell it with better margins on the market,” Mr Sharipov explained.
Ruslan Sharipov, chairman of the Union of Poultry Breeders of Ka- zakhstan, be- lieves the export potential of Ka- zakhstan poul- try industry is enormous.
The Union of Poultry Breeders of Kazakhstan has filed an ap- peal to the national government, requesting that the current standards on moisture content in imported poultry products be revised, as well as to restrict importing broiler meat with phosphate content. This proposal has already been support- ed by the Agricultural Minister of Kazakhstan Umirzak Shuk- eyev. If approved, it would not only protect the domestic market from “the unfair competition”, but also would protect the citizens in the country from the products with rather poor quality. Kazakhstan took on obligations to keep importing
poultry meat under the terms of its WTO membership, but the country is still free to limit imports by introducing safe- ty-related barriers. So far, it is unclear when some actual measures could be put in place.
Halal and organic Kazakhstan is a Muslim country and is planning to export products certified in accordance to the halal standards pri- marily to other Muslim countries, according to Ruslan Shari- pov. There are not so many Muslim countries able to export poultry products in the world, so Kazakhstan plans to fill this niche, and meet the growing demand for broiler meat on markets such as Iran and Afghanistan. “Kazakhstan is a grain-producing country and we can afford to feed our broil- ers with clean grain. We believe that this is our main com- petitive advantage on the foreign markets, as our products have better taste parameters as compared to other coun- tries, as so it will be in high demand among customers,” Mr Sharipov said.
For example, the major turkey meat producer in the country, Ordabasy Kus LLP poultry farm sells nearly 40% of its total production in Moscow and Moscow Oblast, where the cus- tomers have probably the most sophisticated taste in the Eurasia Union. Being part of the Eurasia Economy Union, Ka- zakhstan has very strict veterinary rules for growing broilers. The local poultry farmers are not using growth promoters or genetically modified organisms in feeding their birds. “We al- ready have halal certificates, while organic certificates are the next stage. By producing organic chicken we can sell it to more customers and at higher prices,” Mr Sharipov said.
Egg export soaring In addition to the strong increase in broiler meat output Ka- zakhstan also aims to boost egg production from 5.2 billion in 2017 to 7.5 billion in 2027. The country began egg exports in 2014, and in 2017 foreign sales reached 280 million. Ten years from now Kazakhstan farmers would be able to sell 2 billion eggs and some egg products outside the country. Maxim Bozhko, chairman of the Kazakhstan Egg Producers Association estimated that the country could easily increase the annual production to 7.5 billion eggs by 2021. Mr Bozhko explained that at this point it is only a matter of sufficient de- mand, and so Agricultural Ministry is working hard to open new sales markets for eggs and egg products.
In 2016 Kazakhstan got approval to export eggs to Afghani- stan, and in 2017 managed to supply 180 million eggs to this country. In 2018 the country was granted permission to ex- port eggs to Iran, and in 2019 authorised to sell eggs to Chi- na, according to Mr Bozhko. This would take the egg industry in Kazakhstan to a new level of development. “We are able to sell 300 to 400 million eggs to China per year. This country
30 ▶ POULTRY WORLD | No. 1, 2019
PHOTO: RADMIR
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