How Baiterek Holding supports agricultural manufacturers

Agriculture is the second largest industry in Kazakhstan by the number of people employed. About 42% of the population lives in rural areas, while 1.5 million people are employed in the agricultural sector. Kazakhstan is the world's ninth biggest country in terms of area, and about 74% of its territory is cultivable land.

Baiterek National Managing Holding is the country's main institution that aims at developing agriculture. The Holding's subsidiary – the Agrarian Credit Corporation – finances agricultural manufacturers.

According to Niyaz Koshkimbayev, Managing Director of Baiterek Holding, the Holding's main goal is to provide Kazakhstani farmers with financial resources.

– We strive to create favorable conditions for the development of the country's agro-industrial complex. Our subsidiaries offer various loan and leasing programs that allow farmers to receive affordable financing, – he said.

In 2022, Baiterek Holding issued 16.2 thousand loans for 393 billion tenge so far. It is 10% more than last year. Farmers are financed through the Agrarian Credit Corporation and its subsidiary KazAgroFinance JSC.

This year, the Agrarian Credit Corporation financed more than 12 thousand projects for 272 billion tenge. In total, the corporation plans to allocate 330 billion tenge to finance agribusinesses in 2022.

– President Kassym-Jomart Tokayev ordered to increase Kazakhstan's food security in the next three years and keep the spring field campaign under special control. The Corporation is working on this task. The amount of financing for spring field and harvesting work was doubled this year compared to last year, – said Almat Ashirbekov, Chairman of the Board of the Agrarian Credit Corporation.

Besides financing the sowing and harvesting campaigns, the corporation issues loans to medium-sized and small agribusinesses so they can purchase and upgrade their equipment and facilities, and replenish working capital. It is worth noting that one can submit an online application for a loan of less than 6 million tenge. An application can be submitted here. The corporation makes a decision in 3 minutes, and a loan agreement can be drawn up in just one day.

AkkolBeef LLP is one of the companies that received financing from the Agrarian Credit Corporation. The farm located in the Akmola Region uses up-to-date technologies such as windpumps, electric shepherds, and automatic seed-sowing machines equipped with GPS navigators.

– Last year, we purchased a harvester, a baler, a rotary hay harvester, a harrow, and a feed chopper with the money received from the Agrarian Credit Corporation. We now have 500 Kazakh white-headed cows and 300 horses. AkkolBeef is a breeding farm. Out of 8,000 hectares of land, 1,000 hectares are arable land and 200-300 hectares are hayfields. We prepare animal feed ourselves and also grow wheat and barley, – said Rasul Seyitkamzin, director of AkkolBeef LLP.

This spring, the farm received a loan from the Agrarian Credit Corporation as well. Next year, they plan to sow another 4,000 hectares of land and purchase a tractor on lease.

The farm, which started with horse breeding, has turned into one of the country's most technologically advanced farms thanks to funding and effective management.

To get a loan, a potential borrower needs to visit the corporation's regional branch (they operate in all major cities) or the central office. The client then needs to collect documents. A complete package of documents and a business plan must be sent for consideration. The corporation will make a decision in less than 30 days (if a loan exceeds 6 million tenge).

It should be noted that Baiterek Holding has suggested extending the repayment period of the second budget loan for 70 billion tenge allocated for spring field and harvesting works until December 2023. If this proposal is approved by the government, the financing for the 2023 sowing season will start earlier.