The green future of Kazakhstan

International trends | Spring 2021
BY RUEDIGER CLAAS
The green future of Kazakhstan

Thirst for innovation and sustainability grows in Central Asia.

As sustainability takes center stage around the world, it’s not enough to produce greater yields faster; it has to be achieved responsibly. That becomes even more important when talking about a country poised to become the most important agricultural hub in Central Asia. The government of Kazakhstan has increased subsidies in recent years to attract investment in its agricultural sector, to become more sustainable and improve resource conservation. Their plans include introducing modern technologies and irrigation innovations to local farmers.

Agriculture, a growing sector of Kazakhstan economy

“The U.N. Food and Agriculture Organization recognized Kazakhstan’s potential as a top 5 global agriculture producer, and potentially a top player in ensuring regional and international food security in the coming years,” says Askar Mamin, prime minister of Kazakhstan.

According to the World Bank, agriculture produces only 5% of Kazakhstan’s gross domestic product but employs almost one-third of the country’s working population, highlighting improved efficiency in this sector as essential for improving food security and earning power.

Kazakhstan’s ag sector at a glance

Kazakhstan is the ninth-largest country in the world by land mass. With its vast land resources, it is well suited to extensive crop and livestock production. Of the total land area, approximately one-third is classified as agricultural land. Steppe grazing land accounts for approximately two-thirds (156 million acres) of this total, and arable land (59.3 million acres) accounts for most of the rest.

Irrigation is the key

The previous statistics demonstrate that agriculture is already an important economic sector in Kazakhstan; however, there is room for further growth through improved efficiency. For example, 81% of Kazakhstan land can potentially be cultivated, and 80% of the country is predominantly arid steppe or desert. Furthermore, in 2018, 67% of the nation’s total water consumption was for irrigation. These additional statistics, along with the country’s underutilized water channels and hydroelectric system, bring the necessity of introducing precision irrigation to the region into sharper focus.

Look at the opportunity this way: In the entire world, over the last 50 years the amount of irrigated land has more than doubled. Still, irrigated land represents only 20% of all farmland, yet it produces 40% of all yields. In Kazakhstan, about 3.7 million acres are currently irrigated land, mostly in the south. Magzum Mirzagaliyev, minister of ecology, geology and natural resources, notes that Kazakhstan plans to increase the area of irrigated land to 4.9 million acres by 2022 and to 7.4 million acres by 2030. Plus, the country is prepared to allocate up to the equivalent of $239 million for the introduction of modern irrigation technologies.

The future is sustainable

The textbook definition of sustainable agriculture means farming in ways that meet society’s present food needs, without compromising the ability for current or future generations to meet their needs as well. So how can the region achieve everything they want — increased yields, better water efficiency and overall sustainability — at the same time?

In Central Asia, the agriculture sector’s exposure to production and price risk is increasing. Climate change is increasing production risks in the short- to medium-term by increasing the frequency and severity of droughts and floods and in the longer-term by reducing the availability of water for irrigation due to accelerated glacial melt. The modernization and commercialization of agricultural production and processing, which is critical for sector growth, also raises the sector’s exposure to price risk at a time of high volatility on international markets for agricultural commodities.

An effective response to these risks requires a broader, more integrated approach for Kazakhstan, such as

  • better land use diversification.
  • more crop diversification.
  • precision irrigation technology.
  • local farmers trained in responsible water management.
  • a modernized canal system.
Valley Vice President and General Manager of International Irrigation Josh Dixon and Valmont President and CEO Steve Kaniewski participate in a virtual signing of the investment agreement.
Valley Vice President and General Manager of International Irrigation Josh Dixon and Valmont President and CEO Steve Kaniewski participate in a virtual signing of the investment agreement.

Valley Irrigation is supporting the Kazakh government in improving their existing canal system, parts of which have not been used to their full potential. At the request of Minister Mirzgaliyev, members of the Daugherty Water for Food Institute recently visited Kazakhstan to examine the water scarcity situation within the Arys River basin and the Turkistan Canal.

In addition, Valley recently announced a joint venture with private holding company Kusto Group. The strategic, multiyear project will improve sustainability and resource conservation, introduce advanced farm technology to local farmers in the region, and serve as the foundation for making the country an agricultural hub in Central Asia. The agreement will also reduce irrigation costs for growers by 50%, add 77,000 permanent new jobs to the Kazakh economy and result in the purchase of 4,000 irrigation machines over the next 12 years.

“Kazakhstan has tremendous potential to be an agricultural leader in Central Asia. The government of Kazakhstan is looking to Valley to support implementation of best practices for farming that are sustainable and that produce higher and better yields while using fewer resources,” says Josh Dixon, Valley vice president and general manager of international irrigation. “This collaboration is an honor to participate in, as it is economically beneficial for all parties involved and will bring food security and economic diversification to Central Asia’s agricultural sector.”

Ruediger Claas is vice president of key accounts, international irrigation and Kazakhstan project advisor at Valmont Industries Inc.
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