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There are too many mills in Kazakhstan and many of them are currently on standby, Tengrinews reports citing Kazakhstan Minister of Agriculture Assylzhan Mamytbekov as saying at the briefing in the Central Communications Service. “We currently have an excess of mills. There was the time when a lot of entrepreneurs were opening mills, some were supported by state programs. But it was done without a preliminary study of their markets, capacities and sales. They are currently on standby,” the Minister said. According to Mamytbekov, 60% of the existing mills are the "excessive milling capacity". “For example, starting from 2009 KazAgro fully changed its investment policy and no mills have been financed since 2009. We are calling managers of other state programs to stick to this policy as well. Unfortunately, our Damu Fund does not always coordinate its financing programs with us. It is wrong to subside and support construction of new mills amid the existing excess,” he said. “What is their future? This is market economy. Most probably, they will go bankrupt. We have to reshape these companies. Some of them that eying deep processing as we speak: production of starch, molasses, etc.,” the Minister said. By Altynai Zhumzhumina
There are too many mills in Kazakhstan and many of them are currently on standby, Tengrinews reports citing Kazakhstan Minister of Agriculture Assylzhan Mamytbekov as saying at the briefing in the Central Communications Service.
“We currently have an excess of mills. There was the time when a lot of entrepreneurs were opening mills, some were supported by state programs. But it was done without a preliminary study of their markets, capacities and sales. They are currently on standby,” the Minister said.
According to Mamytbekov, 60% of the existing mills are the "excessive milling capacity".
“For example, starting from 2009 KazAgro fully changed its investment policy and no mills have been financed since 2009. We are calling managers of other state programs to stick to this policy as well. Unfortunately, our Damu Fund does not always coordinate its financing programs with us. It is wrong to subside and support construction of new mills amid the existing excess,” he said.
“What is their future? This is market economy. Most probably, they will go bankrupt. We have to reshape these companies. Some of them that eying deep processing as we speak: production of starch, molasses, etc.,” the Minister said.
By Altynai Zhumzhumina
