Kazakh Entrepreneurs Prepare for Subsidy Reductions: Europe's Experience as a Basis for Development
Source: eldala.kz
Kazakh farmers are preparing for changes in the dairy industry amid potential reductions in state subsidies.
Experts believe that now is the time to improve production efficiency, drawing from the experience of European farmers who have successfully operated without government support by strictly adhering to technologies and achieving high livestock productivity.
According to Stepan Ten, Managing Director of "Bek+" LLP, who represented Kazakhstan at the EuroTier livestock exhibition in Hanover from November 12 to 15, preparations for changes in government policy must begin immediately.
"Starting in 2028, subsidies for milk production in Kazakhstan may be abolished, which will result in a 20% average decrease in the income of dairy farms. To compensate for these losses, milk productivity and the productive lifespan of cows must be increased," noted Stepan Ten.
The European approach has already proven its effectiveness: the average milk yield on European farms reaches 35–40 liters per day, while advanced farms in Kazakhstan average around 30 liters. European farmers achieved these results 10–15 years ago and now operate without subsidies, despite higher labor and energy costs.
"We must make up for this 15-year gap. The most important thing is to strictly follow the technologies; then profitability will remain even without subsidies," emphasized Stepan Ten.
Participation in EuroTier has become an important step in preparing Kazakh farmers for future challenges. In addition to learning from experience, the delegation from Kazakhstan is actively familiarizing itself with the latest equipment, feeding solutions, and livestock breeding practices presented by European manufacturers. The exhibition also hosts daily seminars and expert lectures organized by DLG, covering all aspects of livestock farming.
"We plan to attend masterclasses and hold negotiations with manufacturers. The technological solutions we see here will help us adapt to changing market conditions," added Stepan Ten.
At the same time, Kazakh farmers are discussing the prospects of introducing new technologies in domestic enterprises. Key areas of focus include improving the feed base, genetic selection of livestock, and automating production processes. European companies with experience operating without state support offer not only equipment but also ready-made models for managing dairy farms, which particularly interest the Kazakh participants.
Experts predict that the dynamics of the Kazakh milk market will change significantly in the coming years. To not only maintain but also strengthen their competitive positions, leading farming enterprises in Kazakhstan are already actively preparing for operations under new conditions. By adopting the best practices from Europe, they aim to bring Kazakhstan’s dairy industry to a new level of efficiency.
In the face of growing competition, Kazakh farmers see the future in combining modern technologies with cost optimization, which will enable the sustainable development of the industry even with minimal support.
According to Stepan Ten, Managing Director of "Bek+" LLP, who represented Kazakhstan at the EuroTier livestock exhibition in Hanover from November 12 to 15, preparations for changes in government policy must begin immediately.
"Starting in 2028, subsidies for milk production in Kazakhstan may be abolished, which will result in a 20% average decrease in the income of dairy farms. To compensate for these losses, milk productivity and the productive lifespan of cows must be increased," noted Stepan Ten.
The European approach has already proven its effectiveness: the average milk yield on European farms reaches 35–40 liters per day, while advanced farms in Kazakhstan average around 30 liters. European farmers achieved these results 10–15 years ago and now operate without subsidies, despite higher labor and energy costs.
"We must make up for this 15-year gap. The most important thing is to strictly follow the technologies; then profitability will remain even without subsidies," emphasized Stepan Ten.
Participation in EuroTier has become an important step in preparing Kazakh farmers for future challenges. In addition to learning from experience, the delegation from Kazakhstan is actively familiarizing itself with the latest equipment, feeding solutions, and livestock breeding practices presented by European manufacturers. The exhibition also hosts daily seminars and expert lectures organized by DLG, covering all aspects of livestock farming.
"We plan to attend masterclasses and hold negotiations with manufacturers. The technological solutions we see here will help us adapt to changing market conditions," added Stepan Ten.
At the same time, Kazakh farmers are discussing the prospects of introducing new technologies in domestic enterprises. Key areas of focus include improving the feed base, genetic selection of livestock, and automating production processes. European companies with experience operating without state support offer not only equipment but also ready-made models for managing dairy farms, which particularly interest the Kazakh participants.
Experts predict that the dynamics of the Kazakh milk market will change significantly in the coming years. To not only maintain but also strengthen their competitive positions, leading farming enterprises in Kazakhstan are already actively preparing for operations under new conditions. By adopting the best practices from Europe, they aim to bring Kazakhstan’s dairy industry to a new level of efficiency.
In the face of growing competition, Kazakh farmers see the future in combining modern technologies with cost optimization, which will enable the sustainable development of the industry even with minimal support.
