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Tengrinews.kz — Why Kazakhstan has restricted beef exports and how this is expected to affect the market and small slaughterhouses was explained by Agriculture Minister Aidarbek Saparov in response to a parliamentary inquiry.
Context
Until December 31, Kazakhstan has introduced an export quota for beef. The restrictions apply to fresh, chilled, and frozen cattle meat. The total quota volume is 13,000 tonnes. These export rules apply both to EAEU countries and to third countries.
What is the reason?
The Ministry of Agriculture says the introduction of quotas and tighter control over meat exports is a necessary measure to “prevent a meat shortage on the domestic market and stabilize beef prices.” According to the ministry, these measures will not affect market competitiveness.
“The introduced approach is not aimed at creating an oligopoly or restricting competition. On the contrary, its goal is to form a civilized, transparent, and responsible model of beef production based on a complete industry cycle,” the response says.
The ministry also stated that the new measures will prevent small slaughterhouses from reselling livestock to neighboring countries. Previously, companies would buy animals and export them without fattening, including to Uzbekistan.
As the ministry notes, this distorted the market and led to higher beef prices inside the country.
“Thus, the introduction of quotas is aimed at eliminating export middlemen who do not engage in breeding and fattening livestock, but merely resell animals. Their activities lead to unjustified increases in beef prices and do not contribute to the development of the sector,” the Ministry of Agriculture noted.
Subsidies
The ministry also reported that subsidies are available for farmers. The state reimburses part of the costs of purchasing breeding stock.
For example, 260,000 tenge is paid per head for domestically sourced livestock; 390,000 tenge for imports from CIS countries and Ukraine; and 525,000 tenge for livestock from Europe, America, and Australia.
Reminder: In September of this year, beef prices in Kazakhstan rose sharply. In stores, meat was selling for 5,000–6,000 tenge per kilogram.
