"Subsidies Are Delayed Significantly" - Ivan Sauer
According to Ivan Sauer, director of Agrofirm Rodina, the state support program for dairy farming has proven effective, but chronic payment delays undermine trust in the system.
"Subsidies are significantly delayed. There are outstanding debts from even last year. When a business plans a project, it relies on timely fulfillment of obligations. As the saying goes, timing is crucial," noted Ivan Sauer.
Additionally, current subsidy rules do not reflect the industry's realities. The cost norms for equipment and feed remain at a decade-old level, while modern technology requires significantly more investment."Everything changes. The rules were written when self-propelled feed distributors and mixers were only seen at prestigious exhibitions. Today, they are part of everyday life and no longer surprising. However, subsidy rules provide minimal support for these justified costs. New technologies, like crushers and feed shredders, are now available, but funding is delayed and insufficient," commented the head of the agrofirm.
Particular concern arises from the difference in subsidies for domestic and imported breeding livestock. Purchase of local cattle receives 200,000 tenge, while imports get 400,000 tenge.
"There is a waiting list of a year and a half for local breeding cattle. Yet, the state continues to support imports more than local production. This is discrimination," emphasized Ivan Sauer.
Another issue is the unified rules for all regions of the country, despite significant differences in climate and yield.
"Kazakhstan itself is vast. Even within the Akmola region, there are different soils and yields. But programs are designed as if the whole country is a single point. The President rightly highlighted the need for a differentiated approach," stressed Ivan Sauer.
Meanwhile, EAEU competitors receive not only more subsidies but also more effective marketing support.
"Domestic producers can be substantially supported even through marketing. We understand that fresh milk isn't imported from afar. What they bring isn't fresh milk, yet it's sold because they invest in advertising and attractive packaging. Moreover, there is no sense of patriotism in our networks. In Belarus, for example, the Belarusian flag is prominently displayed, and local products are showcased. One can't miss it. In our networks, the concept of priority and patriotism is absent," noted Ivan Sauer.
Azhmat Saginbayev, Executive Director of the Republican Chamber of Dairy and Combined Breeds KRS QazaqSut, confirms that the industry is chronically underfunded. According to him, even milk subsidies, the most transparent form of state support, have not been paid in several regions since spring 2024.
The reason is a lack of funds in regional budgets.
"Investment subsidies cover only 10–12% of actual costs, whereas rules state they should compensate 25%. In EAEU countries, the mechanism is different: subsidies are based on actual expenses. In Russia, a farmer receives up to 50–60% reimbursement. Our producers receive support five times less than a colleague in Tatarstan," explained Azhmat Saginbayev.
The situation is further complicated by issues with animal imports. After the transit through Russia was closed, some complexes are idle. Importing breeding cattle by air without additional subsidies becomes unprofitable.The address by President Kassym-Jomart Tokayev in 2025 highlighted the importance of leveling the playing field for domestic producers.
Azhmat Sagimbaev, Chairman of the Kazakhstan Dairy Union, emphasized that the industry is at a critical point: companies' debts have exceeded 300 billion tenge.
"We hope the state will allocate additional resources. If only declarations are made, imports will continue to displace domestic products," noted the expert.
