Final Report

Almaty-Bishkek Economic Corridor Kazakhstan National Wholesale Market Master Plans and Wholesale Distribution Center Development Strategy

Prepared by: Steve Allen December 2018

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents.

Acknowledgements This report was prepared by Steve Allen, assigned by Asian Development Bank as International Wholesale Markets Development Specialist and Team Leader. With technical support from the local wholesale market specialist in Kazakhstan, Aiman Tursynkhan (Kaz). Further support has been provided by international specialists Anders Frigaard, Value Chain specialist and David Michael, policy and regulatory expert. Other contributors include Asian Development Bank in Kazakhstan and Kyrgyz Republic – By Almas Baitenov (KAZ) - and by ADB Operations Coordination Division, Central and West Asia Department (CWRD) and its Economist, Kristian Rosbach. ABBREVIATIONS ACC – Agrarian Credit Corporation AIFC – Asian International Finance Centre BCP – border-crossing point BCI – border-crossing infrastructure BRC – British Retail Consortium OICMR – Officer in Charge of Market Rules PNAC – Producer Nominal Assistance Co-efficient SPK – Social Price Corporation WSDC – wholesale distribution center WDC – wholesale distribution center

DATA SOURCES

The main sources of statistical data for this study were official information resources: 1) World Trade Organization Trade Statistics Database www.trademap.org 2) Portal of the Eurasian Economic Commission www.eurasiancomission.org 3) Statistical portal and databases of the UN Food and Agriculture Organization http://www.fao.org/faostat/en, http://www.fao.org/economic/ess/countrystat/en/ http://statistics.amis-outlook.org/data/index.html 4) Specialized sections of the portal of the Committee on Statistics of the MNE RK on agriculture http://stat.gov.kz/faces/wcnav_externalId/homeNumbersAgriculture?_afrLoop=39365309

82850268#%40%3F_afrLoop%3D3936530982850268%26_adf.ctrl- state%3D1cr3othu1f_50 domestic trade http://stat.gov.kz/faces/wcnav_externalId/homeNumbersDomesticTrade?_afrLoop=3936 631506602816#%40%3F_afrLoop%3D3936631506602816%26_adf.ctrl- state%3D1cr3othu1f_158 on foreign trade and on mutual trade of the member countries of the Customs Union http://stat.gov.kz/faces/wcnav_externalId/homeNumbersCrossTrade?_afrLoop=3936669 983208555#%40%3F_afrLoop%3D3936669983208555%26_adf.ctrl- state%3D1cr3othu1f_210 transport http://stat.gov.kz/faces/wcnav_externalId/homeNumbersTransport?_afrLoop=393684926 6787813#%40%3F_afrLoop%3D3936849266787813%26_adf.ctrl- state%3D1cr3othu1f_262 5) Indicators of foreign trade of the Customs Control Committee of the Ministry of Finance of the Republic of Kazakhstan http://kgd.gov.kz/ru/exp_trade_files 6) Indicators of tax revenues of the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan http://kgd.gov.kz/ru/services/taxpayer_search Additional alternative data sources were the results of quantitative research in the form of interviews with the received answers from 526 agribusiness entities in Kazakhstan. The online questionnaire, along with responses from respondents, is available at: https://docs.google.com/forms/d/1bBdpFTIXdYmMZFDyqfAohzGKTj8tiwZsftRdEu3rMY8/edit #responses

Contents 1 Executive Summary ...... 6 Recommendations:...... 6 2. Development Principles ...... 9 3. Wholesale Markets and Wholesale Distribution Centres Current Situation ...... 11 3.1 Existing Wholesale Markets ...... 12 3.2 Current WSM and WDC Locations ...... 15 3.3 Aggregation Points by Market ...... 16 3.4 Consumption by Main City and Aggregation Points by Market ...... 17 3.5 Average Population Statistics ...... 18 3.6 Business Sector response to Preferred WSM Location and Business support needs – survey 19 4. The Functions and Characteristics of the Value Chain ...... 20 4.1 Wholesale markets ...... 20 4.2 Wholesale Development Centers and Trade Logistics Centers ...... 21 4.3 Wholesale market impact ...... 22 4.4 Aggregation ...... 22 5. Regulatory Position Recommendations ...... 23 5.1 Recommended Changes to Trade Law and Regulation: ...... 23 5.2 General Policy Recommendations ...... 24 5.3 WSM Ownership Options ...... 24 5.4 Harmonization and Coordination ...... 24 6. Development Models for the WSM Infrastructure ...... 25 6.1 Proposed Locations and Rationale for WSM Development ...... 25 6.2 WSM Development Objectives ...... 38 6.3 Design Concept for Full Service WSM (7- 25-hectare model) ...... 41 7. Development Options for an Alternative and more competitive Supply Chain to support WSM Sites and Infrastructure ...... 43 7.1 The regional competitor Uzbekistan - a benchmark analysis ...... 43 7.2 Target and growth markets for horticultural products ...... 43 7.3 Alternative Supply Chain Creation - Recommendations ...... 44 8. Early-Stage Interventions - Digital Trading Platform Kazakhstan ...... 44 8.1 Supermarkets ...... 45 8.2 Organic Production ...... 46 8.3 Processed fruits and vegetables ...... 47 8.4 Potential export markets ...... 47 9. The Suggested Way Forward – National Wholesale Market Masterplans ...... 49 9.1 Master plan Development Scenarios: ...... 49 10. Financial Models, Recommended Structure and Delivery Options ...... 52 10.1 Revenue and Development Costs ...... 52 10.2 Suggested Financing Model ...... 52

10.3 Investment Benefits ...... 52 10.4 Recommended Delivery Structure and Recommended Stakeholder Structure/PMU 52 10.5 Specific Regulatory Model Requirement ...... 53 11. The Regional Context – Bishkek - the Kyrgyz Republic ...... 54 APPENDICES ...... 55 Appendix A: Legislation & Regulations Characteristics Matrix ...... 55 Appendix B Regulation of All Activities Occurring on the Wholesale Market Land ...... 58 Appendix C: Master Plan Data Analysis, Charts and Statistics Report...... 60 Appendix D Feedback on the Proposals of the Draft Master Plan ...... 170

1. Executive Summary

The purpose of this Master Planning report is to assist the Kazakhstan government and the Ministry of Agriculture to plan for the development of several new agricultural wholesale markets (WSM’s) and Wholesale Distribution Centers (WDC’s) across the country (Definitions in Section 6). The following analysis has been undertaken based on existing documents and country consultations: i. The existing WSMs, their infrastructure, supply chains, trans-logistics and re-export routes ii. The WSM function in the supply chain of fresh produce iii. The Financial and operational management structures iv. The WSM regulatory framework – food safety and traceability v. The planned WSM investments, agreements and financial models – private and public sector vi. The WSM value chains in terms of production capacity and throughput and alternative supply chain developments vii. Options to achieving full traceability, building export potential, creating access for smaller farmers, maintaining food security

Furthermore, detailed analysis has been undertaken to: i. The site options for Astana and Almaty and Shymkent and the proposed sub-hubs in Aktobe, Karaganda and Pavlodar. ii. To assess the business case/feasibility of WSMs in the view of the private sector the proposed location and main financial operating conditions; iii. To analyze the regional impact of WSMs within the Almaty-Bishkek Economic Corridor (ABEC); iv. To review the impact and competitive risk associated with the largest wholesale market operator in the country and determine alternative or developing competitive options v. To review and suggest financial models (likely PPP based) models to assist the desire for a private sector led master plan development but with strong reference to the public-sector function of food security and price stabilization (SPK) and regulatory systems for SPS vi. To review legal structures for markets/tenants and visitors and the basis of charges levied, gate fees, and rental fees; and vii. To assess the position of WSMs within city development plans.

Recommendations: We observe the following recommendations as fundamental to the modernization and transition of the Kazakhstan Horticultural Market Systems and the main strategic driver for Transition of the sector.

1. Improving WSM function in the fresh food value chains. Improved Food Security through reduced price fluctuations and food waste by introducing appropriate short and medium-term storage facilities [changing from a daily trading system to a 3-5 days hub and spoke trading system], strong government preference on low and stable prices for some socially relevant commodities. Modern WSMs can benefit downstream supply chains and agricultural producers through pull-effect of increased exports and provides access to markets for producers/collectives. 2. Involving local governments in the ownership structure of WSMs and WDCs. Partial public ownership can support the public oversight role to guarantee food 6

security, food safety and minimized price fluctuations. Public stake can also help dilute the ownership structure of the current WSM system and has significant revenue potential for local governments. 3. Modernization of existing WSMs. Modern WSM infrastructure can accelerate growth of horticulture exports from Kazakhstan and their safety, quality and export certification standards through SPS controls, export certification, customs clearance, and aggregation in appropriate cold storage which can be used for exports and imports if close to major consumption points. Certification for exports also reduces border crossing risks for horticulture products and hence reduces costs and risks for exports. The modernized WSMs can accommodate specialized zones for producers and service providers. 4. Greenfield development for growing consumption points and cross-logistics nodes. Newly established WSMs and WDCs can lead to diluted ownership and introduce more competition in the agri-trade and across the supply chain. Careful consideration of ownership structure and involvement of private operators with 5. Improved and expanded regional integration for supply consistency. Harnessing specific seasonality supply issues, such as availability from Kyrgyz Republic in July- December and re-export trade to Russia and re-exports for imports for Kyrgyz Republic, through in-transit trade via Kazakhstan January-June. Improving contractual arrangements between WSMs in Almaty and Bishkek for formalized exports due to quality and safety risk of informal trade, in absence of proper SPS and certification (system of trust and relationship). Improving public and private sector commitment to expand production base in ABEC to reduce dependency on Russian imports. A second set of recommendations below aim to deal with Master Planning and Wholesale Market Development Specifics and their base for implementation. These are also discussed in detail in sections 2 – 10 of the National Master Plan Report. 6. Master Plan and Wholesale Market Scale The analysis of the Market and Systems Food Account for Kazakhstan shows a country largely in balance with its Horticultural production levels, consumption levels and import and export position based on 2017 figures of 10.6m tonnes of production, 847,000 tonnes of Imports and 774,000 tonnes of exports. We can also see that the split of the 10.6m tonnes of production is transacted as follows: Through Wholesale Markets – 4.63m tonnes To processing – 5.97m tonnes If we consider consumption, we can see that the proposed WSM centres of Astana and Almaty and Shymkent transact 264,048 Tonnes, 974,981 tonnes and 248,756 tonnes respectively through their WSM’s From this we can conclude our scale of the WSM’s in Astana, Almaty (inc Almaty Oblast), Shymkent as Astana 17,440 sqm, Almaty as 68,016 sqm and Shymkent 17,004 sqm of buildings.

7. Proposed Wholesale Market Locations Although there is a preference for an Astana led WSM National Master Plan development, this goes against the evidence that the main Horticulture and Market Systems is Almaty and the Almaty Food Metropolis. This is based both on the evidence of production aggregation levels, consumption and In-Transit Flows both ABEC and wider Uzbekistan and China. We see Astana as a sub-Hub focused very much on the consumption needs of the fast-growing City, with a smaller outward trade function. However, the recommendation would be to construct and implement new WSM HUBs in Astana and Almaty at the same time to ensure that the food system is not disrupted by differing standards of operation and facilities and maximise opportunities for through trade to Russia. 8. Wholesale Market Sites and WSM Development Models (including Financial Models) It is clear that the WSM Master Plan development success is dependent on site availability and to a certain extent this is compromised by the fact that the existing WSM’s occupy the key locations. However, this is also seen as an advantage as existing markets systems can be built on quickly to accelerate the overall WSM Countrywide Master Plan. Section 6 looks in detail at all the current site locations, options, facilities, functions and master plan developments including new and alternative site developments to the existing WSM’s. Alternative supply chain developments are also reviewed in Section 4 of the report to demonstrate how the horticulture sector is beginning to change though the growth of supermarkets and the use of digital trading platforms. There is growing momentum from investors and the private sector operators looking to secure the trading opportunity for Horticulture in Kazakhstan and the ABEC. The issue of site availability can also influence the regulatory and financial models for the WSM master plan development. Recommendations of a change in the Wholesale Market Trading Law to B2B only have been made within this report as well as setting down a suggested set of definitions for WSM’s and this could impact on the ability for the current WSM operators to develop their existing site due to the traditional bazaar style facility and therefore the entanglement and lack of separation between wholesale and retail. This also impacts on the proposed financial model and its range and scope. This report looks to recommend a financial model that has the flexibility to deal with the site constraints by connecting to the Akimats and their ability (through the SPK requirements) to regain land for use where it is necessary for the stabilisation system and food security. A PPP structure is also recommended to meet the Governments objective of a private sector led master plan development and divesting more operational control. However, the PPP model also provides an important opportunity for the Government to stay in the role as main Strategic Sponsor, Regulator and provider of a function of Public good, either in a transitional period to help subsidise the high investment costs through land or other incentives or as short-term asset holder before exiting to the 8

private sector in say 5 – 7 Years. The exact rate of intervention and cost to the government of this transition period cannot be quantified at this stage as we do not have land values or proposed development and construction costs. However, when we compare with International projects of this structure, we see a typical range of public sector intervention as between 10 and 30% of project cost. 9. As a conclusion we highlight the strength and value of the regional integration with the Kyrgyz Republic and the WSM’s in Bishkek, Dordoi Food and Alamedin. If is evident that at least 25% of Kazakhstan’s imported produce comes from Kyrgyz Republic via Bishkek and Almaty, with seasonal produce of high quality. Border systems and Border logistics and aggregation will become more and more important for both country’s working together to stem the flow of Chinese and Uzbekistan produce and to meet the consumption needs of cities such as Astana and Almaty’s growing population. 10. Following on from the presentation of the draft final report to the Republic of Kazakhstan, Ministry of Agriculture a further consultation meeting was held with the main WSM Operator. During that meeting, positive and comprehensive feedback was given from a private sector operator perspective on the Master Plan proposals and in addition a number of alternative suggestions to incorporate. The detailed feedback from the above meetings is presented in the Appendix.

2. Development Principles

Throughout this process the Government of Kazakhstan and the ministry of Agriculture has given clear guidance on their view of the WSM Concept and their understanding of the future food systems and WSM requirements. 2.1 Principles: KAZ Government MOA 1. Food security, food safety, and horticulture exports are high national priorities. 2. Private sector will lead the operation of the WSMs. Public sector should get involved through a public-private partnership involving local governments and/or KAZAgro. The Ministry of Finance will play a coordination and oversight role. 3. The existing market infrastructure in Astana and Almaty have good site locations and are established as a key part of the local farmers access to customers to sell their produce. This local produce supply chain is the source of many of the social fund products and fair pricing. The public sector could capitalize on this existing strength by investment in the sites and infrastructure and promotion of deeper downstream integration and access for small local farmers. 4. The existing market infrastructure is confused by the mix of bulk wholesale storage and trading and retail bazars located within the same zones. This leads to price disruption, congested sites with problems for logistics and site circulation and difficulties with rules and regulations enforcement. A change in the Kazakhstan Law of Trading Activities is recommended to separate wholesale from retail activities

either by site location or site zoning. This is discussed fully in the section Recommended Regulatory Changes (section 5). 5. Development through prioritizing Almaty and Astana in the first phase, and Shymkent, Aktobe and Karaganda in a second phase. 6. The future Development and Financial model should enable control over regulatory and operational management changes e.g. strong link to food security, price stabilizations and waste/import substitution and future production increases and export development 7. The development of the Wholesale Market platform can be the starting point for economic growth of the Horticulture sector. Improved access for the domestic production base to more domestic/regional and International customers and a better understanding of their safety, quality and produce supply volume will lead to a pull through of increased and diversified production. The introduction of better packaging and logistics and storage systems will protect perishable produce and reduce in transit and spoilage waste, increasing the volume for sale. The increased supply will reduce the need for expensive imports and develop a surplus for supply to export markets, leading to economic gains through trade and currency reserves.

3. Wholesale Markets (WSM) and Wholesale Distribution Centres (WDC) Current Situation

Introduction The following tables are designed to substantiate and provide a planning framework for the proposed and new Wholesale Market System: The charts and tables can be used to develop sensitivity analysis on the throughput and scale of the proposed WSM and therefore provide a tool for working alongside investment and construction cost and tenant affordability rates or producing flexible development plans that can phase the proposed WSM projects. The tables below have been used to inform likely scale, throughput and produce consumption rates at each of the key WSM Urban centers, i.e. Astana, Almaty and Shymkent. The charts have been used to inform the difference in the type of function and trade flows in the different WSM Urban locations i.e. the difference between a main function of aggregating domestic production and distributing to the internal Kazakhstan food economy or a function of In-Transit and export and re-export of produce flowing both ways between China and Uzbekistan and to a lesser extent Russia. The data presented also indicates the growth in population and therefore gives a good indicator of per capita consumption rates in the future and the likely impact of growth of the proposed WSM’s. Finally, the results of a business interview (with private sector food and market sector businesses) validate the preferred locations of the proposed WSM’s when trading with and/or transporting produce from production point to the WSM’s. The tables are as follows: 1. Wholesale Markets – As Is Assessment (3.1) 2. Wholesale Markets - Locations and Transit Systems (3.2) 3. Domestic Production (Tons), Imports/Exports (Tons), Trade Split between – Wholesale and Retail and Supplies for Processing (Tons) (3.3) 4. Consumption by Main City and Aggregation Points by Market (3.4) 5. Average Population Statistics (3.5) 6. Business Sector Response to preferred Wholesale Market Location Survey (3.6)

3.1 Existing Wholesale Markets

Site Option/ Location Supply Chain Expansion Regulatory Operational Tenant Stakeholder Potential and Area Functionality Land/Expansion Position Management Costs Position/Relationshi Existing and Plans Agreement p to City Investment Model Market Ownership Masterplans/Zoning/ Infrastructure Urban Food Systems

Altyn Orda Almaty (just 90% market share of KAZ 42 hectares Altyn Orda acts From 3am 7 Gate fee- 1.5m people visits per Has MOU with MOA Wholesale outside of supply chain reduced by 0.2 as the price days per based system month and in place to develop Market Almaty City hectares after setting week range of $9 – approximately Wholesale jurisdiction) Vertical Integration to largest land mechanism for operation 20 where 400,000 vehicles per Development 42 Hectares Supermarket chain – rationalization for all Horticultural split 50% average month. Altyn Orda Centers and Trans but subject to Magnum ($700m per year new road products sold in wholesale maximum has a significant Logistic and Re-

land and site T/O) and single source system, but new KAZ and and 50 retail truck sizes is impact on the Almaty export Centers in supplier rationalization master plan supplied from 20MT and City Centre Master KAZ Cities. due to road shows Kyrgyz. 12-month $20 plan development Main supply chain system to widening reconfiguration Tenant both as part of the Has agreed 3 internal markets in Astana, scheme onto reduced Altyn Orda agreement Storage costs impact on roads financing options Shymkent, Tashkent and site. Has operates price are $2.7 per systems, circulation with MOU as Private land Russia (Food City Complex) regulation on sqm follows: expansion land and congestion and ownership, on opposite side behalf of the as the underpinning Throughput of Altyn Orda up 1. MOA will Private of road 30 MOA and the mechanism for social to 2m MT’s per year subsidize Operator hectares+ stabilization fund food prices Infrastructure In flow from Uzbek, China, stabilization and the All sorting, build costs Kyrgyz (partnership with City’s Food Security grading of 2. Funding will be Bishkek Dordoi Food 20% of and Urban Food Belt produce is done provided in the all Kyrgyz production goes Strategy on site and SPS form of a loan to AO), Pakistan controls on site from KazAgro

Outflow – KAZ markets and and Lab for Infrastructure build retail and consumption Veterinary costs are estimated points and via trans logistics certificate. On at $5m per unit per system to Russia and as a site Abattoir. site master plan re-export system for China

Site Option/ Location Supply Chain Expansion Regulatory Operational Tenant Stakeholder Potential and Area Functionality Land/Expansion Position Management Costs Position/Relationshi Existing and Plans Agreement p to City Investment Market Ownership Masterplans/Zoning/ Model Infrastructure Urban Food Systems

Shareem Astana, 3 Daily system to provide for 800sqm chilled SPS controls on 24/7 Gate fee- 7 – 10,000 vehicles Owner would Wholesale Hectare site, retail and food service warehouse for sift fruit site and Lab for operation based system per day resulting in not want public Market 5km from city consumption points in Veterinary $3 – 9 significant congestion sector Centre, Astana. In flow from Almaty Land in City certificate 12 monthly dependent on problems. City is involvement – Private land – Altyn Orda – other Ownership next to site Tenant vehicle size looking to relocate the City would and operation countries direct 8 Hectares that could Basic health and Agreement market further out of provide Poland/Turkey/China/Uzbek be used or possible safety/ fire reg Monthly city center expansion – Out flow – internal market 200-hectare FEZ operation license-based and/or Astana and some trans- rent structure alternative land logistics movement to for units $100 as part of PPP Russia (Siberia) – 300 per structure month

Cost include cleaning, Infrastructure security and build costs are waste estimated at charges $300 per sqm

Shymkent Shymkent –2 Objective to develop Kygros 400 – 650 Hectares Regulation of n/a n/a n/a PPP with public Greenfield Dry Port Style infrastructure. inward supply land provision sites chain from Objective to establish Uzbek 1. IDZ 400 streamline customs transit Hectares 2. facilities and regulate inward FEZ on illegal trade from Uzbekistan Uzbek border – 650 Hectares

Almaty IDZ Almaty City n/a Currently has no n/a n/a n/a n/a PPP Oblast capacity for WSM as only 7 hectares are 490 hectares available. A new

(250 hectares greenfield site to the to be built West of the IDZ could out, 240 be acquired by the Hectares for City but ownership is City in small private lots infrastructure and land assembly likely 10 years Public land Ownership

3.2 Current WSM and WDC Locations

Import/Exports and In-Transit Markets Systems and Horticulture Trade Lanes (chart 1) and Trade WSM Flows (chart 2)

3.3 Aggregation Points by Market Domestic Production (Tons), Imports/Exports (Tons), Trade Split between – Wholesale and Retail and Supplies for Processing (Tons) Consumption by Main City and

Sale to the Industrial Total Domestic Total population consumption Total Total freight Turnover in Kazakhstan as a whole (2018 Import as% of Export as% of wholesale & market consumption in% of and losses% of supplies for Exports trade- turnover of estimate), tons turnover turnover retail trade, Kazakhstan per capita in domestic domestic processing, Imports trade- out flows, Kazakhstan, tons tons kg / year consumption consumption tons in flows, tons tons tons Tomatoes 970,845 53.30 44% 56% 12% 2% 424,864 545,981 120,249 24,348 995,193 Cucumbers 508,370 27.91 91% 9% 3% 1% 464,210 44,160 15,378 7,604 515,974 Apples 364,272 20.00 42% 58% 45% 0% 153,364 210,908 163,103 1,465 365,737 Pears 364,272 20.00 42% 58% 3% 0% 153,364 210,908 11,439 - 364,272 Apricots 36,087 1.98 93% 7% 60% 16% 33,457 2,630 25,499 6,651 42,738 Peaches 2,773 0.15 93% 7% 60% 16% 2,571 202 1,960 511 3,284 Cherry 22,913 1.26 93% 7% 60% 16% 21,243 1,670 16,191 4,223 27,136 Cherries 17,433 0.96 93% 7% 60% 16% 16,163 1,270 12,319 3,213 20,646 Plum 14,136 0.78 93% 7% 60% 16% 13,106 1,030 9,989 2,605 16,741 Strawberry 13,150 0.72 93% 7% 60% 16% 12,192 958 9,292 2,424 15,574 Raspberries 18,763 1.03 93% 7% 60% 16% 17,396 1,367 13,258 3,458 22,221 Currant 8,638 0.47 93% 7% 60% 16% 8,009 630 6,104 1,592 10,230 Grapes 221,287 12.15 49% 51% 60% 5% 109,289 111,998 140,783 11,520 232,807 Carrot 589,302 32.35 44% 56% 6% 1% 257,892 331,409 36,517 6,132 595,434 Beetroot Dining Room 179,634 9.86 44% 56% 6% 1% 78,612 101,022 11,131 1,869 181,503 Bulb onions 723,412 39.72 44% 56% 6% 13% 316,582 406,830 50,423 109,733 833,145 Garlic 42,921 2.36 44% 56% 7% 0% 18,783 24,138 2,992 - 42,921 Eggplant 57,416 3.15 44% 56% 10% 0% 25,127 32,289 5,572 - 57,416 Peppers 225,886 12.40 44% 56% 5% 0% 98,853 127,033 11,411 6 225,893 Potatoes 3,382,901 185.72 44% 56% 3% 8% 1,480,437 1,902,464 119,201 302,556 3,685,457 Cabbage 339,325 18.63 44% 56% 6% 41% 148,497 190,829 32,931 238,437 577,762 Pumpkin 139,227 7.64 44% 56% 0% 1% 60,929 78,298 - 738 139,965 Melons 746,617 40.99 28% 72% 3% 1% 209,225 537,391 24,550 3,958 750,575 Watermelon 1,382,021 75.87 28% 72% 0% 1% 387,286 994,735 - 7,327 1,389,348 Peas 231,390 12.70 50% 50% 0% 0% 115,695 115,695 504 114 231,504 Flowers 11,385 0.63 100% 0% 15% 75% 11,385 - 6,627 34,006 45,391 10,614,376 583 4,638,530 5,975,846 847,423 774,493 11,388,869

3.4 Consumption by Main City and Aggregation Points by Market

Total South- Regional markets cosnumption in Kazakhstan, Total Central- Total South- West Trade tons North Trade East Trade Hub

Hub (Astana Hub (Almaty (Shymkent

Akmola region Akmola

Astana City Astana

karaganda Region karaganda

Pavlodar Region

Kostanay Region Kostanay

North Kazakhstan North

Almaty Region Almaty

Almaty City Almaty

Zhambyl region Zhambyl

East Kazakhstan Kazakhstan East

Turkestan region Turkestan

(former South

Kazakhstan)

Shymkent city Shymkent

West Kazakhstan West

Kyzylorda region

Mangystau Mangystau

Region Aktobe Region Aktobe WSM) WSM) Atyrau region WSM) Tomatoes 39,413 55,393 73,569 40,222 46,636 29,724 284,957 107,768 96,766 59,642 73,703 337,878 104,828 52,185 34,548 41,892 35,430 45,870 33,256 348,009 Cucumbers 20,638 29,006 38,523 21,062 24,420 15,565 149,214 56,431 50,670 31,231 38,593 176,926 54,892 27,326 18,091 21,936 18,553 24,019 17,414 182,230 Apples 14,788 20,784 27,604 15,092 17,498 11,153 106,919 40,436 36,308 22,378 27,654 126,776 39,333 19,580 12,963 15,718 13,294 17,211 12,478 130,577 Pears 14,788 20,784 27,604 15,092 17,498 11,153 106,919 40,436 36,308 22,378 27,654 126,776 39,333 19,580 12,963 15,718 13,294 17,211 12,478 130,577 Apricots 1,465 2,059 2,735 1,495 1,733 1,105 10,592 4,006 3,597 2,217 2,740 12,559 3,897 1,940 1,284 1,557 1,317 1,705 1,236 12,936 Peaches 113 158 210 115 133 85 814 308 276 170 211 965 299 149 99 120 101 131 95 994 Cherry 930 1,307 1,736 949 1,101 702 6,725 2,543 2,284 1,408 1,739 7,974 2,474 1,232 815 989 836 1,083 785 8,213 Cherries 708 995 1,321 722 837 534 5,117 1,935 1,738 1,071 1,323 6,067 1,882 937 620 752 636 824 597 6,249 Plum 574 807 1,071 586 679 433 4,149 1,569 1,409 868 1,073 4,920 1,526 760 503 610 516 668 484 5,067 Strawberry 534 750 996 545 632 403 3,860 1,460 1,311 808 998 4,577 1,420 707 468 567 480 621 450 4,714 Raspberries 762 1,071 1,422 777 901 574 5,507 2,083 1,870 1,153 1,424 6,530 2,026 1,009 668 810 685 887 643 6,726 Currant 351 493 655 358 415 264 2,535 959 861 531 656 3,006 933 464 307 373 315 408 296 3,096 Grapes 8,984 12,626 16,769 9,168 10,630 6,775 64,951 24,564 22,056 13,594 16,799 77,013 23,894 11,895 7,875 9,548 8,076 10,455 7,580 79,323 Carrot 23,924 33,623 44,656 24,415 28,308 18,043 172,969 65,415 58,737 36,203 44,737 205,092 63,630 31,676 20,971 25,428 21,506 27,843 20,186 211,241 Beetroot Dining Room 7,293 10,249 13,612 7,442 8,629 5,500 52,725 19,940 17,904 11,035 13,637 62,517 19,396 9,656 6,392 7,751 6,556 8,487 6,153 64,391 Bulb onions 29,368 41,275 54,819 29,971 34,750 22,149 212,332 80,302 72,104 44,441 54,918 251,766 78,111 38,885 25,743 31,215 26,400 34,180 24,780 259,314 Garlic 1,742 2,449 3,252 1,778 2,062 1,314 12,598 4,764 4,278 2,637 3,258 14,937 4,634 2,307 1,527 1,852 1,566 2,028 1,470 15,385 Eggplant 2,331 3,276 4,351 2,379 2,758 1,758 16,852 6,373 5,723 3,527 4,359 19,982 6,200 3,086 2,043 2,477 2,095 2,713 1,967 20,581 Peppers 9,170 12,888 17,117 9,359 10,851 6,916 66,301 25,074 22,514 13,877 17,148 78,614 24,390 12,142 8,038 9,747 8,244 10,673 7,738 80,971 Potatoes 137,336 193,015 256,350 140,154 162,503 103,574 992,932 375,517 337,179 207,822 256,816 1,177,334 365,272 181,837 120,384 145,971 123,456 159,835 115,880 1,212,635 Cabbage 13,776 19,361 25,713 14,058 16,300 10,389 99,597 37,667 33,821 20,846 25,760 118,094 36,639 18,239 12,075 14,642 12,383 16,032 11,623 121,635 Pumpkin 5,652 7,944 10,550 5,768 6,688 4,263 40,865 15,455 13,877 8,553 10,570 48,454 15,033 7,484 4,955 6,008 5,081 6,578 4,769 49,907 Melons 30,310 42,599 56,577 30,932 35,865 22,859 219,143 82,878 74,416 45,867 56,680 259,841 80,617 40,132 26,569 32,216 27,247 35,276 25,575 267,632 Watermelon 56,106 78,853 104,727 57,257 66,387 42,313 405,644 153,411 137,748 84,902 104,917 480,978 149,225 74,286 49,180 59,634 50,436 65,298 47,341 495,399 Peas 9,394 13,202 17,534 9,587 11,115 7,084 67,916 25,685 23,063 14,215 17,566 80,529 24,985 12,438 8,234 9,984 8,444 10,933 7,926 82,944 Flowers 462 650 863 472 547 349 3,342 1,264 1,135 699 864 3,962 1,229 612 405 491 415 538 390 4,081

430,911 605,616 804,337 439,756 509,877 324,981 3,115,478 1,178,244 1,057,951 652,073 805,800 3,694,068 1,146,098 570,542 377,722 458,006 387,363 501,508 363,591 3,804,830 10,614,376

3.5 Average Population Statistics Average annual population of the Republic of Kazakhstan * inhabitats 2012 2013 2014 2015 2016 2017 2018 All population The Republic of Kazakhstan 16,792,089 17,035,550 17,288,285 17,542,806 17,794,055 18,037,776 18,214,884 Akmola 732,084 734,190 736,086 740,490 739,394 736,656 739,469 Aktobe 791,130 802,428 815,771 828,682 840,244 851,695 860,616 Almaty 1,927,808 1,965,702 1,977,565 1,934,720 1,965,508 2,000,371 2,021,935 Atyrau 549,079 561,515 574,610 587,950 601,020 614,106 623,943 West Kazakhstan 615,158 620,910 627,070 633,518 639,246 644,220 648,193 Zhambyl 1,062,804 1,077,077 1,091,429 1,104,619 1,113,028 1,116,264 1,118,995 Karaganda 1,360,373 1,366,218 1,373,890 1,381,466 1,383,772 1,381,636 1,380,288 Kostanay 879,876 880,542 881,268 882,688 881,470 877,375 874,979 Kyzylorda 719,795 733,209 746,364 759,030 769,100 778,150 785,965 Mangistau 556,779 577,600 597,137 616,808 634,799 651,571 664,738 South-Kazakhstan / Turkestan since 2018 2,650,106 2,705,896 2,760,480 2,814,388 2,859,754 2,903,916 1,966,771 Pavlodar 748,184 751,057 754,354 757,194 757,804 755,934 754,646 North-Kazakhstan 581,736 577,822 573,887 570,712 566,447 560,942 557,686 East Kazakhstan 1,394,564 1,394,228 1,394,927 1,395,742 1,392,794 1,386,656 1,382,799 Astana 760,506 796,282 833,611 862,694 922,638 1,001,634 1,039,272 Almaty city 1,462,107 1,490,874 1,549,836 1,672,105 1,727,037 1,776,650 1,815,506 Shymkent city 0 0 0 0 0 0 979,083 Urban population The Republic of Kazakhstan 9,202,707 9,355,723 9,635,300 9,936,301 10,142,840 10,336,836 10,529,102 Akmola 343,015 345,328 346,876 349,290 349,960 348,689 348,673 Aktobe 487,818 494,744 504,727 515,912 526,482 538,530 551,132 Almaty 448,279 454,859 486,086 468,387 472,868 469,585 460,534 Atyrau 264,418 266,691 269,765 278,863 287,610 294,358 298,627 West Kazakhstan 300,108 305,093 309,750 314,875 320,900 328,861 336,460 Zhambyl 425,024 432,141 439,562 446,100 449,090 446,283 444,493 Karaganda 1,065,839 1,072,950 1,082,836 1,092,463 1,097,620 1,098,823 1,099,029 Kostanay 448,737 452,886 457,561 463,818 468,050 470,815 473,971 Kyzylorda 306,014 313,331 320,854 329,337 337,261 343,514 349,129 Mangistau 284,837 290,434 280,609 269,839 272,555 271,392 270,794 South Kazakhstan 1,036,937 1,059,001 1,158,453 1,262,510 1,289,908 1,321,527 1,387,131 Pavlodar 516,417 521,655 527,468 532,246 534,599 534,072 251,365 North-Kazakhstan 238,899 240,316 242,284 246,083 249,115 250,072 381,135 East Kazakhstan 813,752 819,138 825,022 831,779 837,147 842,031 847,680 Astana 760,506 796,282 833,611 862,694 922,638 1,001,634 1,047,966 Almaty city 1,462,107 1,490,874 1,549,836 1,672,105 1,727,037 1,776,650 1,829,019 Rural population The Republic of Kazakhstan 7,589,382 7,679,827 7,652,985 7,606,505 7,651,215 7,700,940 7,743,328 Akmola 389,069 388,862 389,210 391,200 389,434 387,967 391,324 Aktobe 303,312 307,684 311,044 312,770 313,762 313,165 312,389 Almaty 1,479,529 1,510,843 1,491,479 1,466,333 1,492,640 1,530,786 1,566,060 Atyrau 284,661 294,824 304,845 309,087 313,410 319,748 328,575 West Kazakhstan 315,050 315,817 317,320 318,643 318,346 315,359 313,000 Zhambyl 637,780 644,936 651,867 658,519 663,938 669,981 676,276 Karaganda 294,534 293,268 291,054 289,003 286,152 282,813 281,009 Kostanay 431,139 427,656 423,707 418,870 413,420 406,560 400,370 Kyzylorda 413,781 419,878 425,510 429,693 431,839 434,636 439,644 Mangistau 271,942 287,166 316,528 346,969 362,244 380,179 398,365 South Kazakhstan 1,613,169 1,646,895 1,602,027 1,551,878 1,569,846 1,582,389 1,575,381 Pavlodar 231,767 229,402 226,886 224,948 223,205 221,862 221,340 North-Kazakhstan 342,837 337,506 331,603 324,629 317,332 310,870 305,422 East Kazakhstan 580,812 575,090 569,905 563,963 555,647 544,625 534,173

3.6 Business Sector response to Preferred WSM Location and Business support needs – survey Share of Location of respondent responses Akmola region 57.5% Aktobe region 0.3% Alma-Ata's region 1.9% East Kazakhstan region 0.3% Jambyl Region 1.3% West-Kazakhstan region 1.6% Karaganda Oblast 0.3% Kostanay Region 2.5% Kyzylorda Region 66.0% North-Kazakhstan region 1.0% South-Kazakhstan region 30.5% TOTAL 100.0%

Share of Form of respondent organization responses Peasant farming 67.9% Private part-time farm 19.5% Rural consumer cooperative 1.2% Limited Liability Company 11.5% TOTAL 100.0%

Share of Production sector responses Grain growing, rice growing, oilseed cultivation 38.9% Meat cattle breeding 62.3% Vegetable growing 3.5% Food industry (agro-processing) 1.4% Wholesale and retail trade in agricultural products 0.4% TOTAL 100.0%

total 1 point 2 point 3 point 4 point 5 point responses Location of WSM share Almaty - Altyn Orda 3.3% 1.7% 8.3% 11.7% 75.0% 12.3% Almaty - North Ring (Flea market district) 23.8% 4.8% 0.0% 23.8% 47.6% 4.3% Almaty - Industrial Zone in Alatau District (Avtotsion District), departure to BAKAD 31.3% 6.3% 0.0% 6.3% 56.3% 3.3% Almaty - Talgar or Enbekshikazakh district, BAKAD 38.5% 7.7% 7.7% 7.7% 38.5% 2.7% Almaty - FROM Bereke, departure to BAKAD 36.4% 18.2% 9.1% 27.3% 9.1% 2.3% Astana - wholesale markets along the Alash highway 1.0% 1.0% 5.2% 12.4% 80.4% 20.0% Astana - departure to Karaganda highway 0.0% 1.8% 8.9% 19.6% 69.6% 11.5% Astana - departure to Tonkeris 3.8% 0.0% 23.1% 28.8% 44.2% 10.7% Shymkent - Saryagash district with. Zhibek-Zholy 26.7% 13.3% 20.0% 26.7% 13.3% 3.1% Shymkent - IZ Ontustik 5.1% 4.2% 3.4% 9.3% 78.0% 24.3% Aktobe - From Aktobe 12.5% 0.0% 16.7% 29.2% 41.7% 4.9% Aktobe - Martuk 28.6% 0.0% 28.6% 14.3% 28.6% 1.4% Karaganda - SEZ Sary Arch 28.6% 0.0% 0.0% 14.3% 57.1% 1.4%

4. The Functions and Characteristics of the Value Chain

4.1 Wholesale markets The wholesalers play a central role in the logistics operations, like packaging, distribution, transportation, and delivery to retailers, supermarkets and consumers (Rana, 2014). They are also involved in export and import. The wholesale markets are also important for the vertical coordination of food markets while equilibrating supply with demand and setting prices. In this way, they help reduction of marketing costs while promoting stable markets for local farmers and producers. Ideally the wholesale markets support in agro-food distribution mainly in two ways. Firstly, they contribute to competition by establishing conditions for transparent price policy at relatively low costs. Secondly, they enhance access to market information for different actors. Traders and mediators play a significant role in the marketing of products between wholesalers and consumers (Figure 16) (FAO, 2017).

Six chains are identified in the supply of agricultural products from the farm gate to the consumer. The chains and their share of the total sales is shown in Figure 11. Small farmers bring their produce direct to the market bazaars (retailer). They sell directly from their cars and small trucks outside the bazaar. This chain handles small volumes amounting to around 5% of the total production. Small farmers sell their products from the farm gate to traders who will bring the products to the large wholesales' markets. It is estimated that 35% of the production passes by this supply chain. Around 30% of the production goes to processing industries, which collect directly at all sizes of farms thereby passing the wholesales markets. Larger farmers will use collectors and truck companies to aggregate their product who sell to wholesalers who then sell to the retailer. This chain handles around 20% of the distributed products. Large national farms and cooperatives will bypass the wholesale/retail market and transport direct to storages for further export. This chain amounts to around 5% of the product distributed. Larger national farms use Trade Logistic Centers (TLC) and Wholesale Distribution Centers (WDC) and supermarkets’ own logistic centers to reach the supermarkets directly. Estimations show that around 5% of the production goes through this chain

Figure 11. Overview of downstream value chain

4.2 Wholesale Development Centers and Trade Logistics Centers

Definitions: • Trade Logistics Centre (TLC): function to take produce from production (field) and process (clean, grade, pack) and store for collection by transport and logistics company to deliver to Wholesale Market (WSM), Supermarket or Processor. Has no front-of-house-sales or buyers-walk-facility. Single entity.

• Wholesale Distribution Centre (WDC): Same function as TLC but can be made up of many businesses, usually acting as a co-operative. In Kazakhstan TLCs are not well developed and do not play an important role in the distribution. Most of the aggregated products from the farms are loaded from cars to vans to trucks before final transport to the wholesale markets. Due to the location and scale of the producers there have been several attempts to develop local centers with capacity to collect and store produce. These units differ in size and functions and are often referred to as TLCs. Some structures are left from the Soviet Union where there were local centers to collect the production. A few of these are in working conditions and operated by cooperatives. New TLC projects have been implemented by private investors with support from donors or impact investors. These are still few in numbers and have problems to get into the business. Several projects in both countries are established with good structures but they are lacking business opportunities. A third type of TLCs are being established by the supermarket chains. These have a clear target to supply the supermarkets and have thereby easier access to markets. Kazakhstan’s TLC is relatively small in capacity but appears as a key segment of the transportation sector of Kazakhstan, with a great potential for improvement and expansion. There is a significant need for modern multifunctional and multimodal TLCs based on the regional characteristics of cargo distribution (export, import and transit).

One tool for logistics advancement in Kazakhstan is the development of logistics infrastructure (logistics centers, logistics parks, logistics areas, distribution centers, warehouses etc.). According to the Transport strategy of the Republic of Kazakhstan (until 2015) and the State program for the development and integration of transport infrastructure of the Republic of Kazakhstan (until 2020), the country plans to establish transport and logistics centers in all regions of Kazakhstan with the expansion in the transport and logistics services (Raimbekov et al., 2016). 4.3 Wholesale market impact The way that business is conducted at the current wholesale markets has a significant impact on the overall performance and development potential of the agriculture produce sector. wholesale markets cannot only alleviate congestion at the existing wholesale markets but also provide new facilities and opportunities for trade and supply, developments and market innovations. Modern or new wholesale markets will, however, not be able to resolve all existing constraints and problems but they can contribute to the development and innovation in the sector by introducing new trade standards, facilitating value-adding activities and creating more transparency and efficiency in trade and supply arrangements. The wholesale sector has the potential to become one of the most important agricultural sub-sectors in terms of economic growth, rural employment and income generation. A problem for all actors in the value chain is the huge amount of food spoilage. Significant volumes of food are handled in wholesale markets, but information gaps exist about food waste during the process, including storage and transportation. Important measures needed to be taken to alleviate the damaging effects of food spoilage is to gather detailed information on how much food is lost and wasted at the wholesale level, to improve logistic efficiencies in urban markets and to manage waste across the sector. Developing best practices for designs and operations of wholesale markets and ensure efficient flow of information along the urban food supply chains, will not only cut down on food losses and waste but also enhance producers' access to markets, improve food handling, and enable fresher, safer produce more equally available to city consumers. 4.4 Aggregation The analysis of the agricultural value chain in Kazakhstan recognizes that the current source-to- destination flow of agricultural products, from farm gate to domestic and export markets, is well functioning. Collection from the farm gates is done by a large number of aggregators who use their own trucks or vans to gather the products at the farms. The aggregators bring the products to the wholesale markets or deliver them to local collection spots after which the products are transported to the wholesale markets. In both countries the supply chain to the wholesale market is a non-transparent network of intermediary the domestic aggregation is organized and operated using cash, packaging materials (boxes), cultural and personal relations to keep the trade in a fixed structure– preventing inexperienced players to enter the value chain. All activities are operated by individuals or non- disclosed companies. There are strong indications that the networks are controlled by very few actors and that they sometimes function as monopolies with limited competition. The farmers are financially weak and depend on cash immediately after having harvested their products. When offering their produce for sales they are usually left with only one option offering upfront cash payment. If farmers had stronger financial conditions or credit options, they would have flexibility and options to postpone the sales or pursue alternative sales options. Attempts to establish local storage and cooling facilities have been performed in the countries. However, only a few of them have been successful. Failures have been due to above mentioned cash situation preventing farmers from postponing their sales. The present structure, with many small producers with limited knowledge about the market and business, hampers the possibility to establish well-functioning collection centers at the farm level. Efficient local centers must be

22 operated by farmers to have the requested impact. This require that farmers have the needed skills and market understanding. Attempts to establish collection centers as cooperatives have been carried out in both countries but with very limited success. Cooperatives or sales associations are workable solutions to strengthening producers’ position in the value chain – however, in all cases, these initiatives require strong competent farmers. The present system is working well, regarding the collection of products and payment to the farmers. However, there is no flow of information backwards in the value chain and so the farmers are not aware of grades, quality and prices or which species to produce to maximize the value created. The insufficient farmer to market connection results in behavior leading to food waste and low quality

5. Regulatory Position Recommendations

Key Regulatory Change affecting the development of Master Plans and WSM’s 5.1 Recommended Changes to Trade Law and Regulation: The following are proposed changes to Section 11 of the Wholesale Trade Law and designed to assist the WSM’s to determine a B2B Operation only. Article 11. Wholesale trade 1. Wholesale trade is carried out in stationary shopping facilities and the trade markets within the Category 1 – 4 Trading facility range as specified under Chapter 3 Domestic Trade Article 10: Trading Facilities and types of Domestic trade. 2. Definitions of Wholesale Trade or a Wholesale Market: • A platform for all food buyers and sellers (Fruit and veg, meat, poultry, fish and seafood, flowers, added value and dry goods) sales (B2B), distribution, added-value processing, storage, cross-docking (where product is broken up into smaller quantities or transferred to another logistics/transport system for re-export) and front- of-house (display-based) sales in a ‘covered buyers walk’. • Comprises many entities (wholesalers, transporters and logistics companies, processors, distributors and collective services and some retail and grower markets for public sales)

• Has support services for food safety and Quality Inspection/Documentation/export documentation and facilities management.

• Has short to long-term storage facilities depending on product requirement e.g. short –term local refrigeration for 1-3-day trading of say soft fruit for small wholesaler, 1 week to 1+ month for larger wholesale storage and 3 months storage

3. Where non B2B entities, (retail and grower markets for public sales) are included in the Wholesale Market, they should be located within dedicated shopping facilities, that are covered and permanent. The individual trading spaces should be less than 100 square meters and combine selling space and produce receiving space. The facility should not restrict or impede the flow of logistics and traffic circulation required by the Wholesale B2B trading.

5.2 General Policy Recommendations • To enable access to land in a favourable urban location and access to critically important services including SPS and associated food safety facilities, along with access to reliable and low-cost amenities (electricity, water, roads, customs, logistics, communications).

• Encourage WSM Operators, Public or Private to adopt best practice international guidelines (WUWM guide on ‘good hygienic practices specific to wholesale market management’ - ref: World Union of Wholesale Markets publication ‘Community Guide to Good Practice Health and Food safety 2009) and operating rules and regulations that are integrated with both national and local government legislation and regulations.

• Establish real time economic information infrastructure and services to improve efficiency of the wholesale market product price setting. This will help create transparent and efficient fruit and vegetable markets where prices reflect all available information, a basic feature of market efficiency.

• Cooperatives legislation should be modified to encourage structural change and stimulate development of service-oriented cooperatives including conditional relaxation (meaning compliance with all other rules) of minimum member numbers to 2 and adding encouragement for all cooperatives to be active, not inactive. 5.3 WSM Ownership Options Future Legal and Regulatory Models – Operational Management: We would see an extensive development of both the Legal and operational regulatory environment to facilitate different types of ownership, investment (e.g. PPP and/or concessionary) and operational management for example Good Practice for Health and Safety and Food Safety and Joint Management structures of management and ownership and wider ranging regulation linked to securing the quality and traceability of produce and Professional Management Codes for Wholesalers and their relationship to the Producer/Supplier and Customers. It would also consider the way sites are zoned and businesses are located to enable efficiency in logistics and furthermore regulation of the tenant’s operations are required to achieve best practice and a differentiate between function such as cross docking, storage and processing and selling and buying areas. Two key components of Operational Regulatory Best Practice relating to Good Practice for Wholesale Market Management – Health and Safety and Food Hygiene (Best Practice World Union of Wholesale Markets) and Updated National Operating Regulations for Wholesale Markets in a PPP and/or Concessionary Agreement Investment structure (case study Food center, Amsterdam). Furthermore, this can be the basis for the Business and Financial Investment model, where greater wholesaler and market Business participation can be achieved both in terms of Business investment in their own infrastructure and key roles in the design of an agreement of service and facilities management functions. This Joint Management model was successfully implemented in the Amsterdam Food center development to ensure a balance of risk and control between the Concessionaire (Private Sector Developer/Contractor) and the Wholesale Market Businesses. This model could be applied to wholesale markets in Kazakhstan to achieve the same balance and de-risking An examination of international wholesale produce markets ownership comparisons is shown in (Appendix A) 5.4 Harmonization and Coordination The policies and regulations governing WSM require harmonization with the overall development strategies and plans of the national, regional and local governments. Regulation of All Activities Occurring on the Wholesale Market Land Appendix B

6. Development Models for the WSM Infrastructure

In this section we look to provide guidance on the potential structural model for the WSM’s, both Definitions of Activity and their Infrastructure requirements. This is led by a City and Site Location based assessment and reflects the key points of urban consumption and domestic production aggregation. (see table 3.4 Consumption by Main City and Aggregation Points by Market Section 3) 6.1 Proposed Locations and Rationale for WSM Development

6.1.1 North Centre HUB (Astana)

Astana has the following WSM operational capacity:

• Shareen 8 ha site

• Aly site 85 ha including 27,000sqm warehouse and transport terminal

• Karaganda 70 ha site with warehouse built and 90% occupied - phase 1 at a cost of 8 billion tenge, phase 2 projected cost of 10 billion tenge – there are plans for warehouses/chilled warehouses/cross-docks/selling halls/customs interface/BCP access – a masterplan is under development by a private sector investor.

• WSM Location Astana-Karaganda road

South East HUB (Almaty) Almaty is the economic center of Kazakhstan. Almaty takes 1st place in the country in terms of GRP (20.9% in 2014) and is the center of development of small and medium-sized businesses. GDP per capita of the city in 2014 amounted to 5023.0 thousand tenge or 28 thousand USD. Almaty GRP structure is similar to many developed cities in the world where trade accounts for more than 30% of the city's economy, and the services sector accounts for more than 50%.

Industry accounts for only 5% of the gross regional product of Almaty and is in large represented by the food industry. Most of the sectors of Almaty economy shows growth dynamics. Almaty is a regional center of attraction - the growth of the population over the past 3 years amounted to 4% per year and reached 1.6 mln. people in 2014 due to migration and natural population growth. The median age in 2014 was 33.4 years. Almaty is a major logistics hub on the Western Europe - Western China highway. The city provides about 20% of foreign trade turnover of the country. City connects with the main intercity and international roads, railways, and air links. The food industry, which includes more than 30 specialized branches, sub-branches and individual enterprises, is the largest sector of the industrial complex of the city of Almaty. The share of food production in total production figures increased from 27.8% to 32.3% during 2012 - 2014. Development of the food belt Workload processing enterprises of the city is calculated at 63%. The main directions of use are as follows: meat group – 90%; dairy group – 60%; oil and fat group - 48%; Fruit and vegetable group - 52%.

Regular agricultural fairs are organized to ensure the subsistence support. Nine citywide fairs with the participation of agricultural producers of Almaty, Zhambyl and South Kazakhstan regions were held in 2015. The total volume of sales amounted to 1920 tons of produce in the amount of 1 170 mln. tenge. In addition, "weekend" fairs are held in all areas of the city of Almaty on a weekly basis with participation of agricultural commodity producers from surrounding areas of Almaty region, as well as commercial and industrial enterprises of the city of Almaty. 602 food fairs were conducted in the districts Almaty since the beginning of 2015, the commodity turnover of which amounted to 1.7 bln. tenge. Food belt and food industry For the development of the food sector and ensuring food security of the city, it is planned to develop a food belt, the network of industries for processing of agricultural products and trading and logistics centers. Development of a network of production facilities for processing agricultural products, logistics centers; Provision of state support (invest subsidies) to agricultural producers, processing industries and enterprises on storage, delivery of food;

Assistance in obtaining loans at a reduced interest rate and the presence of the grace period.

Trade and inter-regional cooperation Interregional cooperation and transport-logistics services

The program “100 Specific Steps” provides for the development of Almaty as an international transport and logistics hub by building a new world-class airport, new interchanges and highways (including BAKAD), as well as the development of related logistics services. Through the mechanism of the concession, funding for major infrastructure projects, as well as the effective management of created objects will be provided. Such projects include the Big Almaty Ring Road (BAKAD), which will become a part of the highway “Western Europe – Western China.” This project will allow relieve the load on the city’s transport network by redirecting transit traffic.

Integration with Almaty Food Metropolis Long-term development of the city will be built with and in coordination with the development of Almaty metropolis. The area of influence of the Almaty metropolis include: center (nucleus) of Almaty - Almaty, five administrative districts of Almaty region: Karasai, Talgar, Ili, Enbekshikazakh and Zhambyl regions, as well as the territory of the Kapshagay city. The most important direction of development should be the formation of optimal metropolis transport frame, designed to ensure the spatial and functional unity of the territory, availability of rational transport for residents to the major centers of activity, as well as the implementation of the transit Agricultural areas adjacent to the metropolis, is a source of raw materials for the food industry of the city. Therefore, the section of the agglomeration area will be developed as a food belt. It is therefore necessary to provide agricultural producers in the surrounding areas with access to the Almaty market for the sale of production at fair prices. This ensures food security in the region. Almaty WSM Locations

6.1.3 Shymkent South West HUB (Shymkent) – Greenfield sites – Border Crossing Infrastructure There is little or no information or progress to support the development of the planned WSM and BCI within Shymkent. At this stage there is only a prospective site and zone location as detailed below.

6.1.4 Aktobe Location information available to the Master Plan process

6.1.5 Karaganda Karaganda has 70 ha site with warehouse built and 90% occupied - phase 1 at a cost of 8 billion tenge, phase 2 projected cost of 10 billion tenge – there are plans for warehouses/chilled warehouses/cross-docks/selling halls/customs interface/BCP access – a masterplan is under development by a private sector investor. 6.1.6 Korday In-Transit and Re-Export site close to Bishkek and the Kyrgyz Republic Border

Almaty Wholesale Markets

1. Altyn Orda (just outside of Almaty City) 42 Hectares

2. Barys IV (close to Altyn Orda) 6 hectares

Prime Capital have the following WSM Investment plan

Short-term objectives 2018 - 2019 • Establishing the temporary storage warehouse (TSW) • Creating and launching the specialized site for the product movement and trade • Involvement of transport companies for the WSDC maintenance Mid-term objectives to 2020 • Attracting investments for the WSDC development • Expansion of the trade geography • Construction and development of the site in the Shu station area • Creating an e-commerce platform with the mutual settlements function • Preparing and creating conditions for the development of processing and production • Development of the logistics activities Long-term objectives to 2023 • Development of the WSDC into the international logistics and production center • Development of infrastructure for primary processing, processing of agricultural products and production - Industrial zone • The development of international e-commerce and commodity exchange - the E-Commodity Exchange. • Accreditation of warehouses in other regions • Preparing for IPO

Barys2 WSM (Kordoy) Establishing the WSM – Regional and In-Transit Capacity In order to provide access for agricultural producers to retail sites and to such technological operations as storage, packaging, marketing and transportation of agricultural and food products under the State Program for the Development of the Agro-Industrial Complex, it is planned to establish the WSM’s. The main goal for establishing WSM.s will be to reduce and optimize links between manufacturers and retailers and create the necessary infrastructure, which will ensure transparency in the price formation. The geographical location of the Barys2 market is the key advantage for the WSM development, since it is in the relative proximity to large markets, which are convenient for logistics: Almaty, Bishkek, Taraz, Shymkent, and Tashkent cities. In addition, most cargo traffic to the northern regions from the south and back runs along the transport corridor where the Barys2 market is located. Establishment of a temporary storage warehouse will save the exporters' and importers' time and money for the cargo customs clearance and registration. Barys2 market is located on the territory of 34 hectares, with additional 15ha of spare area free land for expansion, the territory is fenced and has the infrastructure necessary for functioning of the universal market. The market territory includes the following: • warehouses of more than 10,000 sq. m. • 14 permanent buildings with total area of more than 5,000 sq. m. • indoor pavilion of more than 8,000 sq. m. • more than 1,000 roofed outlets • TSW • asphalted parking lots

Once the WSDC is developed, the market territory will allow to increase the warehouse and industrial premises area to 250,000 sq. m. and create more than 1,500 jobs and give an impetus to the development of SMEs in the region.

Altyn Orda – Master Plan and WSM Development - plans below 1. current Land and Site detail 2. Current Site Infrastructure

Altyn Orda – Master Plan and WSM Development - plans below 1. New Master plan – indicative uses and Zoning and New Master plan – indicative circulation systems and infrastructure

Almaty WSM/WDC Alternative Developments

BCC OYSA Bank BCC OYSA has developed a concept for a WDC with National Agricultural Kompany (NAK) in Almaty City 25 hectares but this is for storage after production and processing, there is no front of house sales function. The bank is looking for a PPP transaction to enable the next steps

Kuldzhinskaya highway

Issyk

BAKAD (in perspective)

24 km from

Almaty city

Dostar (KAZ Investor) – Semmaris (Rungis International – Operator) A Feasibility for a WSM and Agri-Food (and Pharma) In-Transit good Logisitcs Center has been prepared for the private sector kazakhstan company, Dostar, on an 115 hectare site located on the Northern Road to Kygros (site location area as per map below) Dostar KAZ (a company involved in everything from Logistics to Pharma/Healthcare and Heavy Construction equipment) are the Lead Investor for the development of a two Phase Agri- Logisitcs, Wholesale and Processing Centre located on a 115 Hectare site on the A2/A3 Baiserke Road – near to the Almaty SEZ, but outside of the Almaty City boundary. Phase 1 is completely focused on Fruit and Veg, Meat and Fish and provides built out accommodation of 80,000sqm for Wholesale Market, Cross Docking, Farmers (Market) and Longer-Term Storage and has 30,000sqm of roads and circulation space. Its throughput is 800,000 tonnes of produce 90% Fruit and Veg and 8% Meat, 2% Fish. The buildings sizes range from 15sqm for a small farmer and 5000sqm for a wholesaler and they expect 200 Business in total to occupy the entire space. Phase 2 is planned for Grading, Processing and Packing and Non-Food Pharma/Healthcare Products storage. They expect to use 60 hectares of the 115-hectare site in Phase 1 and the balance will be left for expansion and non-food in Phase 2 but is subject to viability. The declared objective of Dostar and Phase 1 is to compete with Altyn Orda and provide access to farmers in the region that do not want to deal with Altyn Orda. The Total Cost including Land of Phase 1 is 160 million Euros. Rungis have signed an exclusivity agreement with Dostar for 6 years to work through the feasibility and Investment and construction and Operation (they will be the operator).

Almaty City Development Zones

Although in theory the Almaty SEZ’s present an ideal location and site infrastructure for establishment of a new WSM Concept, this is not possible due to lack of availability of land and complicated land and site assembly issues. It has been suggested that it is possible to reverse land back into public ownership and this applies to the Bereke site at 300 Ha – however information suggested that this would take 10 years or more to transact and this has been further complicated by title agreements that have been agreed on these plots after their re-acquisition.

We are aware of alternative sites for development of a WSM at:

The original Mizam Fresh produce WSM that failed, within Almaty City A 12 hectares site to the North of Almaty City that Altyn Orda have taken an option on for possible WSM expansion.

6.2 WSM Development Objectives

6.2.1 WSM Definition

Wholesale Market (WSM) – a platform for all food buyers and sellers (Fruit and veg, meat, poultry, fish and seafood, flowers, added value and dry goods) sales (B2B), Distribution, added value processing, storage, cross-docking (where product is broken up into smaller quantities or it just transfers to another logistics/transport system for re-export) and front of house (display based) sales in a ‘buyers walk’. Many entities (wholesalers, transporters and logistics companies, processors, Horeca distributors and collective services and some retail and grower markets for public sales) Often has support services for food safety and Quality Inspection/Documentation/export documentation and facilities management. Can include food education and training colleges and office, business center and hotel functions where logistics 38 companies have to have periods of layover. Has short to long-term storage facilities depending on product requirement e.g. short –term local refrigeration for 1–3-day trading of say soft fruit for small wholesaler, 1 week to 1 month for larger wholesale storage and longer term 3 months storage for product such as potatoes, apples and where ripening is required.

6.2.2 Reflecting the core WSM functions According to the rules, the WSDC shall have the following functions: • formation of an electronic database (collection and analysis of data on volumes and prices for food products, information on demand and supply, the dynamics of their change); record sellers and buyers, their registration in the electronic database; • provision of retail areas to producers of food products, agricultural cooperatives, procurement organizations for the direct sale of food products or their purchase for further implementation; • search for and creation of sales channels for food products; • pre-sale preparation of products; • bundling of consignments; • storage of food products; • information support of the WSM participants, analysis of production and movement of food products

6.2.3 Creating New opportunities for agricultural producers

• As known, for lack of capacities to store the products and difficulties to find the alternative buyers (consumers) many producers (especially agricultural producers) have to sell their products within shortest time, despite the market conditions and price levels. • Availability of sufficient depositories (including refrigeration and technological facilities) to store the manufactured products will enable to store, increase the storage periods, and to find buyers (consumers) • The e-tendering system will help the company to sell its products quickly and at a favorable price without search for and personal contact with the buyer or a group of buyers (consumers). • The electronic site organizer will guarantee the qualitative and quantitative indicators and terms of shipment, and there will be no need for the seller (producer) to demonstrate and prove them to buyers (consumers)

6.2.4 Proposed Sources of WSM Development funding

• Jambyl oblast Akimat. Under the Unified program for business support and development "Business Road Map 2020", it is planned to finance the supply of missing infrastructure to the sites: • As part of the republican budget - within the site territory • As part of the republican budget and with co-financing of the local budget and within the site • Ministry of Agriculture, Under the Rules for Subsidy to Reimburse Part of the Expenses incurred by the agro-industrial complex site, with investments, part of the costs will be reimbursed by the RK Government. According to this Program, up to 30% investments for the market construction under the above-mentioned program shall be subject to reimbursement. • Social entrepreneur corporation Taraz. At the expense of local budget, as Jambyl oblast Akimat is interested in developing the market, creating jobs and increasing revenues to the budget.

• Private investments under development of the market and production and storage facilities • Investors of the Kyrgyz Republic interested in export of their goods. • IРО -at the AIFC in Astana city.

6.2.4 WSM Development Future Centers and Regional Connectivity

Thanks to the WSM functions established by the state, the geographical location and material base, the Barys2 market can further develop and transform into the international logistics center and establish of the Electronic Commodity Exchange. In the Medium-term and long-term objectives, the plan can be:

• Attraction of investments for the development of the WSDC - at the second stage, it is expected to attract private investors for further development and transformation of the WSDC into an international production and logistics center • Expansion of the trade geography - since the WSDC establishment, its further development and transformation is planned to achieve the long-term plans, i.e. expansion of the geography for cooperation and trade (Kazakhstan, Uzbekistan, the Kyrgyz Republic, Turkmenistan, and Russia) • Establishment of an e-commerce platform with the mutual settlements function - considering the current trends, with the purpose of raising competitiveness, it is planned from the beginning of activities, to create a website for advertisements, which in the medium term should be transformed into a software application, and in the long run - into the e-commerce platform Electronic Commodity Exchange. • Preparing and creating conditions for the development of processing and production. Since the establishment, it is planned to create conditions and develop infrastructure for the primary processing of products (washing, filling and packaging), and in the long-term, it is planned to create conditions and facilities for deep processing and producing of new products • Development of the logistic activity - at the initial stage, it is planned to immediately start creating applications and an electronic database of the logistics and transport companies with the purpose to reduce costs for the producers and buyers.

6.3 Design Concept for Full Service WSM (7- 25-hectare model)

Storage for export and Produce in and access to Out/Gatehouse rail linkage

Entrance Storage 1 month

Producers Wholesale and/or Open Wholesale and Market Storage Storage 1 3 – 5 days day

Market Management Centre – Hotel – Office Accommodation – data management centre

. The model above changes the existing Market System – achieving full traceability, creating value addition – building downstream production and export potential - creating access for small farmers and future food security. This model above to show how produce can move through its 1 day, 3 – 5 days. 1 month and 6 – 12 months life cycle and therefore change the system and to make gains from lower post-harvest losses, market price variation and value addition through better quality and traceability. The model does not disrupt the historic nature of bringing produce to market from the field and farmer or the importer, it just allows different points of access for each one and various levels of intervention with the produce. The master plan model also shows a full-service center environment and expansion to tourism interest which is a common part of European Wholesale Markets model. The concept model below can deliver up to 255,000 sqm of circulation and accommodation space and a range of 2 -3m Metric Tonnes of throughput for the wholesale market, with an estimated capital investment cost of between $50 - $100m per single wholesale market development, dependent on the specification for items such as food safe paneling, floor loadings, internal refrigeration.

The concept model is shown above in Elevation and Built form.

7. Development Options for an Alternative and more competitive Supply Chain to support WSM Sites and Infrastructure

Inspiration can be found in the European Union’ system that supports and encourage fruit and vegetable producers to establish producers’ organizations (PO). These are getting investment subsidies, advise and credit facilities to be able to form organizations and compete stronger in the value chain. The initiatives by the European Union (EU) has been targeted the situation where markets are getting more and more controlled by few large players and farmers are left without negotiation power. The EU interventions are made to increase competition - as reduced competition has not only a negative impact for the farmers, but also for the consumers and for the generation of value in general – and thereby for the welfare of the entire country.

The scale of the wholesale markets is not a problem. The challenge is due to the fact that alongside the small farmers and medium sized wholesalers, there are operators, such as Altyn Orda, that are also large and active players in the buying and selling of produce.

In comparisons, European wholesale markets are only providing a trading platform and a number of private companies are operating and competing using that platform.

7.1 The regional competitor Uzbekistan - a benchmark analysis

For the horticultural production the main regional competitor is Uzbekistan. This country has a quite centralistic political system, the productivity at farm level is higher than in Kazakhstan indicating that there is a more effective use of production inputs and more knowledge and effectiveness in the agricultural production. In order to address weaknesses and potential for improvements of the agricultural sector in Kazakhstan and a benchmark analysis has been performed using Uzbekistan as the benchmark model.

The study identified several hurdles that Kazakhstan need to overcome to increase productivity in the agricultural sector and food value chain the hurdles include but are not limited to: • quality and yield of agricultural products • limited knowledge among farmers concerning both new production technologies and management • lack of technologies for production, processing and storage of organic products • limited diversification of agriculture production • and lack of regulatory frameworks for easy business registration. However, also Uzbekistan seems to have similar gaps in the value chain concerning productivity at the farm level; price information and quality issues

7.2 Target and growth markets for horticultural products

The market for horticultural products in the region is strengthening its position, thus providing several opportunities for horticultural products the following scenarios for growth are identified:

Maintenance of the domestic market by retainment of the strong supply chain of fresh produce to the major cities.

Gaining a stronger position in the closest market in Russia, targeting the cities of Yekaterinburg, Chelyabinsk, Omsk and Novosibirsk. Quality improvements and increased quantities in the supply chain would enable the two countries to keep up with the markets in the Russian cities. The Russian economy is growing, and it is given that it will affect the market for quality foods. Russian consumers mention health as one of the most important parameters when consuming.

Development of alternative high price markets e.g. by organic produce delivered to the door or through high end shops in the cities with supply directly from farmers.

Development of niche markets for export of high value products to China and the Middle East.

7.3 Alternative Supply Chain Creation - Recommendations

Technical facility building for improved productivity and quality With the focus of increasing quality, it is suggested to establish local cooling and storage facilities, operated by local business people. These storages should be maintained by special support schemes were capital and knowledge are provided to local entrepreneurs Information and communications technology (ICT) solutions have the potential to increase competition, logistics and information about prices in all stages in the value chain. An obstacle for the introduction of digital platforms is the current use of cash in the trade. It is crucial to make efforts to establish digital money transfer platforms. Initially pilot projects could be conducted for the development of suitable systems.

There is currently very limited trust between sellers and buyers in the value chain. Few agreements are made at distance, but often one of the parties are backing out from the agreement. Without payment effectuated it is difficult to enforce. Online payment will have significant impact as valid agreements can be made at distance. Risk position of trading agreements on online system – relationships between buyer and seller.

Implementation of standards for quality and food safety cannot be emphasized enough as it is a key issue for increasing the profitability of the sector and gaining access to the export markets. The initial step would be to standardize grades and qualities for the current domestic markets and thereafter by a step-by-step approach the export markets where higher quality is requested.

Cluster building and contract farming. The establishment of sales associations and cooperatives need to be supported to increase the negotiation power at producers’ level. A fundamental request is that members who take part in a producer organization are obligated to sell their produce through the organization. This will ensure the negotiation power and is seen as the key for the success of the organizations. Further, contract farming has the potential to introduce new alternative supply channels and will also contribute to increased competition.

8. Early-Stage Interventions - Digital Trading Platform Kazakhstan

The model below sets out a full-service structure for the management of all aspects of the agri- food chain functions, be that environmental and production conditions or upstream trading and price setting conditions.

The model predicts control over all agri-food services through APP based Technology. This is an early-stage plan for intervention as we have seen no evidence of a relevant industry study and development of an initial requirements document to develop the Information Management System (IMS) This develop could be integrated into the proposed Service Centers at the WSM’s.

8.1 Supermarkets

The consumers in the region are slowly turning to self-service stores, losing interest to the unorganized trade. Systematic discounts and promotions play significant role in attracting the buyers to stores and supermarkets. However, the bazar trade plays an important social role and is still providing an attractive price/quality in comparisons with the supermarkets, especially for fruit and vegetable products.

In 2016 the supermarket Magnum led sales in Kazakhstan, recording the biggest increase in sales value and a 24% rise in revenue. Magnum’s success can be attributed to its offering of good products at affordable prices. As a result of the economic crisis and devaluation of the national currency, cheap products were especially in demand in 2016 and prices at Magnum are 5% lower than those of other grocery stores in Kazakhstan. In 2016, Almaty Mall opened a new hypermarket called Magnum Atak with a selling space of 4 thousand m2. In order to attract more consumers, Magnum offered several discounts, special offers and tasting sessions in their stores. Magnum considers the bazaars as their main competitor and are trying to get market shares from them. They are working to exclude the intermediaries. However, there are problems to get supply directly from the producers and it is hard to get contracts with the farmers since they lack critical business knowledge and not aware of quality issues etc. Therefor Magnum is dependent on import from Russia and China.

Magnum source most of their fruits and vegetables through the company BN Orda. They try to do supply contracts with farmers. However, there is limited trust in both directions when dealing directly with farmers. Altyn Orda, BN Orda and Magnum Supermarket all share ownership. The monopoly position of this business group has made it difficult for new supermarket groups to establish themselves in Almaty. Several has tried and but have had to close.

Grocery retailer chains such as Ramstore are expected to continue to expand. In addition, the Russian player, Fix Price, will also enter the market in Kazakhstan. It is possible that some leading international companies could enter the market by buying domestic chains which are no longer strong enough to compete. Other factors that could attract new players are cheap prices of land and construction costs resulting from the devaluation of the national currency (Euromonitor International, 2018).

METRO runs a retail supermarket and four business outlets, mainly for hotels and restaurants (HORECA). They have a special have special storage inside Almaty, from where all their supply goes through. Farmers can make agreements to supply to those two points. According to METRO the biggest challenge is to insure to get the right quality from the suppliers

8.2 Organic Production

Food production is an increasingly vital economic sector in Kazakhstan. The industry’s development has been earmarked for attention by the government, with billions of dollars of investment expected until at least 2020. A modernization program for the industry is on the way, opening the door for foreign brands to offer their equipment, machinery and technology to this growing market (interfoodastana.kz). Kazakhstan has identified organic agricultural production as a promising means of improving the competitiveness and export potential of domestic products. However, the absence of a certification system and labelling requirements is currently hindering development of both internal and export markets for organic products. The FAO project “Support to development of organic farming and institutional capacity building in Kazakhstan” is now working to strengthen capacities in the sector through improved legislation, institution building and strategic planning. Activities include training for farmers, agricultural specialists and policy- makers on various issues related to organic agriculture (FAO, Kazakhstan and FAO). Consumption of fruit amongst Kazakhstan’s 18 million population amounts to 937 thousand ton corresponding to roughly 52 kg per capita. Kazakhstan faces a domestic fruit production shortage of roughly half a million tons a year and relies on import. Data from the Kazakhstan’s State Statics Commission show that 628 thousand tons of fruit was imported in 2015 where the import of tomatoes amounted to 65 thousand tons, apples to 127 thousand tons and potatoes to 77 thousand tons. The import mainly came from Poland, Moldavia and China. Zooming in on apples local experts estimate the current market share of imported apples is about 55% of the consumption. A governmental program aims for the apple import to fall to 5% by 2020. A rise in the production of apples would enable Kazakhstan both to satisfy the internal market demand and enter new export markets like Russia and China.

8.3 Processed fruits and vegetables

Food processing accounts for 25% of Kazakhstan’s total manufacturing output and the food processing industry is expected to attract USD 30 billion in private investments and to double output by 2020. Key product for the processing industry areas include processed fruits and vegetables, canned fruits and veg, canned meat, baked goods and dairy.

Kazakhstan is aiming to become a major food producer and continues to develop its food processing sector. The main challenges for the processing industry are the market supply shortages. The current delivery situations are signified by low product quality, limited variety and uncompetitive pricing compared with imports. While Kazakhstan does manufacture a number of processed products, the country depends on overseas companies to keep its population supplied with processed fruits and vegetables. The main part of vegetable sauces, canned goods, or frozen fruit and vegetables that are sold in Kazakhstan has been imported. There is a production/demand imbalance. Illustrated by the fact that 19 thousand tons of processed fruit and vegetable products are manufactured yearly still import volumes are more than 11 times higher reaching around 229 thousand tons a year. This trend that is likely to continue. By 2020 the levels of consumption are expected to hit 252 thousand tons, growing at an annual rate of 2% per annum.

8.4 Potential export markets

The primary markets for export are Russia and China, where forecast shows that China will be the main regional market driver in the future. Unlike the majority of West European countries where consumption of vegetables and fruit has declined recently the consumption in Russia and China is rising,

The transport corridor between Kazakhstan and Republic-China-Pakistan opens up for better export possibilities to China as it gives access to the harbour of Karachi in Pakistan. Further there is no language barrier and the cultural and ethical connections between Kazakhstan, and Northeast China are considered good. Kazakhstan also has good relations to Russia and with a high consumption of fresh fruit and vegetables that is increasing it is as well is regarded as a booming market. Russia is, however, putting focus on getting self-sustainable in agricultural production and increased competition from regional competitors such as Uzbekistan and Azerbaijan is expected to During recent five years Russian market of fresh fruit and vegetables demonstrated steady growth. The trend of market volume increase was mainly driven by growing import. The consumption of specifically potatoes has though been decreasing for the past two decades much due to lower food use and decreasing industrial consumption. The overall increased consumption of fresh fruits and vegetables in Russia is directly related to changes in consumer preferences and shift to healthy living standards (foodmarket.spb.ru). Consumption is mainly driven by large urban areas as Moscow and Moscow Region, Krasnodar Territory, Saint Petersburg, Sverdlovsk Region and Rostov Region. The fresh fruit is among the most important in the consumer basket of Russia. Retail sales also demonstrate positive dynamics. The ascending trend of sales with rather high growth rates has been seen during the recent decade. In 2012 sales value of fresh fruit/berries increased by 9% and exceeded the amount of RUR 341 billion; in Q1 2013 sales saw 15% growth

The production volume of fruit in Russia is not enough to satisfy the domestic demand, so import is high and according to estimations, 67% of Russia's planting area of fruit trees and berries is declining and has since 2005 been reduced by more than 15%. On the other hand, the cultivation 47 of greenhouse vegetables is growing steadily, demonstrated by the Russian company, Agriculture, which has started expanding with a 27-ha greenhouse that will be used for the propagation of young plants and the cultivation of cucumbers and tomatoes. Further the Russian Food Security Doctrine has set a target of 95% self-sufficiency in potato production in Russia.

Russia has neither technologies nor facilities for long storage of fruit and berries. That is why apples in Russia are cheap only during harvest time, and the rest of the year consumers have relay imported products. Import to Russia is mainly driven by 5 fruits: bananas, apples, tangerines, oranges and grapes, which also to a great extent reflect consumer preferences. Apples are the most popular fruits in Russia and captures alone 20% of the fruit market. Half of demand for apples is satisfied by domestic production, and the rest of supply comes from abroad, mainly from Poland, Moldavia and China (foodmarket.spb.ru). “Tander” CJSC (owner of retail chain “Magnet”) is the largest importer practically of all categories of fruit and berries. Other large importers are “Megafrukt” LLC (Moscow), “GlavProdImport” LLC (Moscow), “Rassvet (Dawn)” LLC (Saint Petersburg) and Some other companies

Export of fruit/berries from Russia is insignificant and is mainly driven by re-export. According to “GRC”, Russia exports only 0.5% of domestically produced fruit/berries and about 80% of this volume is provided by melons.

Forecasts project that the real value of world agri-food demand in 2050 is projected to be 77% higher than in 2007 and that 43% of this future demand is deriving alone from the Chinese market (richardcolbeck.com.au). Chinese customers prefer imported products and in 2017 China imported 4.4 million tons of fresh fruit, with a value of USD 5.59 billion, increasing year-on-year by 12% and 5% respectively. Overall, the composition of the list of top ten fresh fruit exporters to China remained similar to that of 2016. China's fresh fruit exports fell slightly in 2017 where fresh fruit exports came in at a volume of 3.5 million tons and a value of USD 4.89 billion, declining year-on- year by 2% and 4% respectively (producerreport.com). Amid the slight overall slowdown, China's exports of fresh fruit to Indonesia shot up by 57% year-on-year, making Indonesia into the number three market for China's fresh fruit exports. Russia, with its long-shared border with China, was in the number four spot. Exports to the following eight markets accounted for 74% of China's total fresh fruit exports by value in 2017: Thailand, Vietnam, Indonesia, Russia, Hong Kong, the Philippines, Malaysia, Kazakhstan. China's top performing export fruit categories in 2016 largely followed the country's traditional fruit cultivations strengths and included apples, table grapes, citrus and pears (producerreport.com).

In 2015, European countries imported € 31.7 billion worth of fresh fruit and € 18.7 billion worth of fresh vegetables (including intra-EU trade). 50% of the fresh fruit and over 80% of the fresh vegetables that are imported concern re-exported or locally grown products. Germany, the UK and France are the largest final destinations, accounting for around 48% of the product value imported from both within and outside Europe in 2016. The Netherlands and Belgium are responsible for 20% of the import value and re-export to other European markets. Italy and Spain have a 10% share in the European import value of fresh fruit and vegetables, but they are also net exporters because of the large volumes of their own production. Eastern Europe has growth potential; well- known tropical fruits such as pineapples, lemons and limes are finding their way through western European ports to new, upcoming markets in eastern Europe (cbi.eu).

9. The Suggested Way Forward – National Wholesale Market Masterplans

9.1 Master plan Development Scenarios:

Existing Markets Infrastructure: It is recommended that to work with (co-create) and modernize the existing wholesale (assembly) market system of Altyn Orda, Almaty, Shareem Market, Astana and the regional market of Dordoi Food, Bishkek, would enable an accelerated development of the National wholesale markets masterplan (Kazakhstan) and their modernized supply chain function and this could be replicated in other regional centers such as Shymkent and Karaganda and Aktobe.

The Value and/or Supply Chain Function: We observe that the existing supply chain and markets function within the ABEC is fundamentally integrated by the flow of produce in the existing market system i.e. at least 90% of the Regional Domestic Flow and Imported produce flow within the Uzbek/China corridor is transacted at the centers of Altyn Orda, Shareem Bazaar and Dordoi Food (Bishkek). Furthermore, these supply chain flows are seasonal in nature and show the key Gaps in production capacity with Kazakhstan for example during the winter season November to May over 450 tonnes of vegetables per day is received from China. In the summer season fruit from The Kyrgyz Republic and Uzbekistan is up to a combined 500 tonnes per day. This shows the key production gaps but also highlights the interdependence within the ABEC trade corridor and increasing supply chain flows of China.

The Markets Regulatory Status: We observe the existing regulatory position in terms of food safety and traceability within markets operation and the external supply chain has a good basis for development as a one stop shop environment for all Horticultural, Red Meat and Dairy based food safety assessments and customs certification.

The Regulatory Status – Certifications: We observe that adopting a devolved SPS (to WSM sites) and Animal Inspection service center model would accelerate the introduction of minimum food safety standards. This model could be expanded to expand standards from for example SPS which secures the domestic and Eurasian market trade, to capacity to build wider ISO9002 and BRC standards that would enable export of produce to the wider market of the European Union. It could also link to the E-Government system for digital filing and access to all certifications at each producer transaction point.

The Markets Operational Regulatory Status: The Operational regulatory environment within the current markets is at a basic level but is consistent with Legal and Regulatory structures in International Markets and law for Tenants within a Landlord and Tenant structure. Its reach at present only extends to regulation of license, lease and service costs and compliance with basic safety conditions of tenant operation e.g. health and safety and fire risk.

The existing Financial Conditions and the Tenants/Businesses – Costs of Operation: The main financial conditions for Tenants and Market owners seem to be consistent across all markets within Kazakhstan, whether an assembly wholesale or internal consumption market. Owner and operator revenue is derived from Gate fees and parking fees linked to vehicle size and weight and storage fees based on sqm use. At an average gate fee of $10 and an average per sqm storage fee range of $250 - 1000 psqm per month at Altyn Orda (Large Units) and $100 - $300 psqm at Shareem, Astana smaller retail storage units for basic storage, future investment viability seems positive particularly with the high volume of trade visits per day. However, Tenant affordability will need to be considered to avoid displacement of the smaller traders. This revenue and transaction-based system is consistent with many Asian and African markets and some European markets and would not therefore need to change. However, most EU markets do not charge a gate fee, and this will need to be considered in the light of a desire to increase access for smaller domestic producers, where this could be prohibitive.

Existing Commercial Development Options: We observe the site Options Appraisal as detailed shows a clear view of the realistic options and their future implementation and delivery structures. It is acknowledged that these options reflect prioritization towards the largest wholesale market operator and existing wholesale market centers and this is also reflected in the Business Survey Location preference – Altyn Orda 75%, Astana 80% and Shymkent 78% (Section 3 – Table 3.6.) We share this opinion based on establishing future conditions that would guarantee food security, fair access to the marketing system for small farmers and downstream supply chain developments, greater transparency in and live market price and systems information and co- working/co-location with the developing alternative supply chain infrastructure of supermarkets and the cost efficiencies that can be gained through site location efficiency, larger scale aggregation and their logistics systems.

A Transformational Master Plan Concept: We observe there is a need to develop the future masterplan infrastructure with a clear vison of how added value and produce traceability and produce shelf life gains will develop as part of the wholesalers and market transactions. We have included this model above to show how produce can move through its 1 day, 3 – 5 days. 1 month and 6 – 12-month life cycle and therefore change the system and to make gains from lower post- harvest losses, market price variation and value addition through better quality and traceability. The model does not disrupt the historic nature of bringing produce to market from the field and farmer or the importer, it just allows different points of access for each one and different levels of intervention with the produce. The master plan model also shows a full-service center environment and expansion to tourism interest, which is a common part of the European Wholesale Markets model. The concept model can deliver up to 255,000 sqm of circulation and accommodation space for the wholesale market with an estimated capital investment cost of between $50 - $100m per single wholesale market development, dependent on the specification for items such as food safe paneling, floor loadings, internal refrigeration, integrated docks and office and sales zone construction

Integration with City Centre Master Plans: We observe that the wholesale market master plans should not be developed in isolation from its corresponding City center master plan developments. An integrated and future sustainable Urban City Food System will determine the function of the future wholesale and logistic system. It will also influence how a city evolves its retail, leisure, tourism and community developments, particularly when applied to the offer of retail markets, bazaars, and supermarkets. This is particularly relevant to the core cities connected to the master plan sites i.e. Astana and Almaty. The City Master Plans in each location indicate that retail food bazaars and markets will be reduced or modernized and relocated outside of the City and in addition will provide outlets for stabilization produce distribution. The impact of the local internal food system and food access system needs to be integrated into the master plans to avoid disconnected and random food establishments setting up that are not within the desired City Food offer or meet the set food regulation system.

Future Legal and Regulatory Models – Operational Management: We would see an extensive development of both the Legal and operational regulatory environment to facilitate different types of ownership, investment (e.g. PPP and/or concessionary) and operational management for example Good Practice for Health and Safety and Food Safety and Joint Management structures of management and ownership and wider ranging regulation linked to securing the quality and traceability of produce and Professional Management Codes for Wholesalers and their relationship to the Producer/Supplier and Customers. It would also consider the way sites are zoned and businesses are located to enable efficiency in logistics and furthermore regulation of the tenant’s operations are required to achieve best practice and a differentiate between function such as cross docking, storage and processing and selling and buying areas. Two key components of Operational Regulatory Best Practice relating to Good Practice for Wholesale Market Management – Health and Safety and Food Hygiene (Best Practice World Union of Wholesale Markets) and Updated National Operating Regulations for Wholesale Markets in a PPP and/or Concessionary Agreement Investment structure (case study Food center, 50

Amsterdam). Furthermore, this can be the basis for the Business and Financial Investment model, where greater wholesaler and market Business participation can be achieved both in terms of Business investment in their own infrastructure and key roles in the design of an agreement of service and facilities management functions. This Joint Management model was successfully implemented in the Amsterdam Food center development to ensure a balance of risk and control between the Concessionaire (Private Sector Developer/Contractor) and the Wholesale Market Businesses. This model could be applied to wholesale markets in Kazakhstan to achieve the same balance and de-risking.

Alternative Supply Chain Developments – Displacement and Competition Risk: We observe that there is a very low risk in the investment in the modernization of infrastructure and the supply chain of the existing wholesale market systems and locations. In terms of an alternative developing supply chain we see a number of alternative private sector proposals for WSM’s in Almaty and Astana, which is the beginning of a basis for good competition. Supermarkets are also trying to address their issues of inconsistency of supply and the lack of production volume. They are trying to address this through backward integration to production and their own land, storage and distribution system. This is also an opportunity for the wholesale markets as they capture the requirements of the supermarkets at their single point of aggregation to guarantee supply. Another alternative supply chain development would be the use of retail markets to supply local catering and restaurants outlets. However currently, the quantities are small, and the culture is for the chef to come to the market to see and feel the produce. As City's evolve their restaurant and food service culture, there will be a shift to remote ordering by the chef and larger volumes that only wholesale markets could cope with. We therefore expect a shift of this sector away from the retail markets to the new wholesale market facilities.

The Benefits of Public Sector Investment the Public sector in the form of the Ministry of Agriculture and KazAgro (the Agencies responsible for the development of the Agricultural and Horticultural Sector in Kazakhstan) have a limited role in the development and operational management of wholesale markets (apart from where markets are linked to the social fund for food distribution) and the sector is entirely in private sector land and operational ownership. It may be beneficial for the public sector to take a stake in the development and implementation of new and/or wholesale market masterplans and facilities to ensure that the wholesale markets ‘Function of Public Good’, The transformation or modernization of facilities and the subsequent new operational regulatory structures are maintained. Where there are modernizations and transformations like this in other countries it has become important for the public sector to sponsor and/or give guarantees to private investors to ensure that the developments are successful. Public sector sponsoring, or intervention is often in the form of land contribution, or state guarantees, or ensuring that the legal constitution and operating models of the new wholesale markets are based on not-for-profit distribution to ensure that funds are reinvested in the infrastructure and facility. Furthermore, Public Sector sponsorship can enable the Agricultural development agencies to get closer to the food supply chain activity and understand more of what the sector needs in terms of business support and subsidies, if appropriate.

The Do-Nothing Approach given all the above analysis We observe we are in good position to see the impact of a Do Nothing Approach i.e. no activity (as described above) in Kazakhstan and no investment support. We see the following impact of this: 1. Kazakhstan is the gateway and corridor to facilitating trade and logistics flows through the ABEC and creating an outreach to an export market in the EU, without investment this will not transform or diversify the Kazakhstan economic situation but furthermore it will not pull through the gains in produce and production capacity of the Kyrgyz Republic 2. Without the investment and build out of the wholesale market and agri-logisitcs infrastructure in Kazakhstan, to capitalize on the re-export market for produce flows from China, Kazakhstan will not enjoy the growth and economic gains associated with this core function of land locked countries. 3. Without the opportunity to influence the regulation and ownerships structures on the build 51

out of new wholesale market facilities in Kazakhstan then the risk of leaving it to evolving markets forces, may result in increasing dominance of the China re-export and import supply chain, which displaces local production and downstream small producer initiatives with a correspondent impact on the KAZ economy. 4. Furthermore, if there is no investment and supporting strategy then the development of alternative supply chains in the form of production specialization and for example organic production for export markets in the EU is unlikely to happen. 5. In summary given the potential impact of a Do Nothing Approach We observe that the Strategy and progress of the ABEC Corridor will be significantly undermined.

10. Financial Models, Recommended Structure and Delivery Options

10.1 Revenue and Development Costs Revenue is derived from gate and/or entry fee and parking fee for trucks (using and average 20mt truck entry fee is $1.1 and a 3 days parking facility(average) would be $30. On average 40,000 trucks per year enter the market. Rental costs for a warehouse are $2.6 per sqm per month with 100,000 sqm of warehouse. The average construction/reconstruction budget for the development sites such as Altyn Orda is $45 million over 2 years or a private sector greenfield example such as the BIC Ousa or Dostar project has expected investment costs of euro 160m. 10.2 Suggested Financing Model A financing model may contain the elements below as key enablers: Public sector provides land and infrastructure for possibly 7 – 10 years(short-term) then exits to private sector operation in full or in part. A PPP structure is used – to acquire from the public sector or private sector owner e.g. where it is deemed the Akimat/SPK has needs in the interests of food security. This land could form the public-sector investment of the PPP as equity or be retained and leased to a private sector operator. It is possible that the private sector operator can also act as anchor tenant and possible future exit investor or this may come from other smaller wholesalers investing and funded as group. There may also be opportunities from External Investors on a co-financing basis, e.g. those linked to supermarket or processing and packaging businesses. 10.3 Investment Benefits Ensures modernized WSM infrastructure at WSM HUBS in Astana and Almaty. Reduced border closure risks at Almaty/Bishkek border and improved food security supply as storage creates ‘stock holding’ to ensure continuity of supply Improved regulatory systems SPS and customs certification at Almaty/Bishkek border Ensures utilization of existing asset base and current markets to develop Astana and Almaty HUB’s to serve consumption needs of the cities and act as an import/export center for production in Karaganda/Pavlodar/Aktobe and exports and imports to Russia (usually Food City)

10.4 Recommended Delivery Structure and Recommended Stakeholder Structure/PMU The following agencies and private sector groups are recommended as key structures for development and implementation of the proposed WSM HUB’s 52

MOA KazAgo – although there is perceived constraint that they cannot receive further funds and can only finance activities linked to production and processing. The WSM is classed as a trading center, not production or processing. KazAgro recommend an Akimat led model as they can acquire land by reversing it back into public ownership. ACC Akimat/SPK Fund – where land is deemed to needed for food security issues National and Regional Chamber of Entrepreneurs Markets Operators 10.5 Specific Regulatory Model Requirement A proposed change in law is has been suggested to define Wholesale Trade as B2B only – with the provision for occasional or temporary retail activity to be considered. The suggested revised Trade Law text is detailed below.

Article 11. Wholesale trade 4. Wholesale trade is carried out in stationary shopping facilities and the trade markets within the Category 1 – 4 Trading facility range as specified under Chapter 3 Domestic Trade Article 10: Trading Facilities and types of Domestic trade. 5. Definitions of Wholesale Trade or a Wholesale Market: • A platform for all food buyers and sellers (Fruit and veg, meat, poultry, fish and seafood, flowers, added value and dry goods) sales (B2B), distribution, added-value processing, storage, cross-docking (where product is broken up into smaller quantities or transferred to another logistics/transport system for re-export) and front-of-house (display-based) sales in a ‘covered buyers walk’. • Comprises many entities (wholesalers, transporters and logistics companies, processors, distributors and collective services and some retail and grower markets for public sales)

• Has support services for food safety and Quality Inspection/Documentation/export documentation and facilities management.

• Has short to long-term storage facilities depending on product requirement e.g. short – term local refrigeration for 1-3-day trading of say soft fruit for small wholesaler, 1 week to 1+ month for larger wholesale storage and 3 months storage

6. Where non B2B entities, (retail and grower markets for public sales) are included in the Wholesale Market, they should be located within dedicated shopping facilities, that are covered and permanent. The individual trading spaces should be less than 100 square meters and combine selling space and produce receiving space. The facility should not restrict or impede the flow of logistics and traffic circulation required by the Wholesale B2B trading.

11. The Regional Context – Bishkek - the Kyrgyz Republic

ABEC Border HUB’s – Bishkek – Dordoi Food 25 Hectare site and site to East of Bishkek near to production areas of Kant and Tokmak. Regional Influence – Bishkek Two existing market centers form the basis of trade flows between Bishkek and Almaty and wider (e.g. to Astana) that is Alamedin and Dordoi Food. Alamedin is the internal market system (and daily produce system) serving the Bishkek population consumption needs and Dordi Food is the export center for production from Tokmak/Issy-kul/Kant and Osh going to Almaty (to be aggregated at Altyn Orda) and 50% of that approximately 250 tonnes per day goes to Kazakhstan and 250 Tonnes per day is distributed onward to Russia (Food City). Alamedin has a requirement for a $10m investment in expanded business accommodation in a multi-story construction. This could also be complimented by an investment in a wholesale and production consolidation center at a Greenfield site near Tokmak or Kant to improve the daily produce system with storage to extend shelf life to 3 – 5 days and improve product margin Dordi Food has a requirement for a $7 - $12 m investment in packaging systems and expanded storage facilities at or near the existing site A further site on the KAZ side at Kordoy is being promoted as a solution to the risks of border closure, a basis for improvements in customs certification, SPS safety and quality controls and customs control and as a storage center to hold buffer stock in the event of border issues. It is also promoted as a holding point and monitoring point to control the high levels of unregulated trade and for in transit trade between China and Russia (particularly vegetables) and re-exports from Uzbekistan We observe that the consideration of expansion and growth of the infrastructure at the Kazakhstan locations could also include the development of the internal consumption and Trans Ag-Logistics centers at Bishkek, Alamedin Bazaar, and the Greenfield site option at Stepnoye and the Almaty Oblast/Bishkek border Trans-Ag-Logistics and consolidation site at Kordoy on the Almaty/Bishkek border (part of the Prime Capital, Altyn Orda owned markets operation with a rail link to Shymkent). There are two key drivers for the integrated supply chain relationship with the above locations at or near the Kyrgyz border and these are the inflows and outflow within the Uzbekistan and China corridor and the cross-border influence of the Fergana Valley rich production zone. There is a correspondent ADB workstream currently being finalized on the impact of the Fergana Valley and potential alternative supply chain consolidation and aggregation structures at or close to the field or production point. These will be detailed further in the full draft master plan concept report.

APPENDICES

Appendix A: Legislation & Regulations Characteristics Matrix Wholesale Markets: ABEC & Selected Countries

Characteristic Kazakhstan Kyrgyz Netherlands France (Lyon Spain (Mercasa) (e.g. Altyn Republic (e.g. (Amsterdam) MIN Baseline Orda, Almaty) Dor Doi, Template) Bishkek)

www.mercasa.e s

Objectives Directed at Reliable Sale, trade and Reduce costs, Support, food security supply & distribution of improve quality promotion & and distribution of potatoes, and make modernization of competition in fresh produce vegetables, transactions markets; sale, trade & through WSM fruit, meat, fish transparent improve supply distribution or retail or and beverages & distribution processing

Legislative & Mixture of Mixture of Municipality Markets of State owned Regulatory regional, regional, driven. National enterprise. Support municipality & municipality & Decentralized, Interest (MIN). Shareholders: private private. EAEU not a food Regulations Ministry companies. rule business but enable Agriculture; EAEU rule compliance. EU laws on creation of Ministry compliance. Import tariffs food safety market in Finance; Import tariffs relatively low. apply; consultation Municipality. EU relatively low. SPS rules municipal rules with traceability SPS rules enforced. for registration Municipality. enforced. Some etc. Food EU traceability Some traceability but businesses traceability but not to EU responsible. not to EU standards. EU traceability standards. PPP PPP legislation Legislation not complete

Administratio Ministry of Ministry of Cooperative Ministry of State Owner & n Agriculture, Agriculture, Food Centres Agriculture; manager of 23 Private Boards Private Boards Ministry of wholesale food incl. Altyn incl. Trade markets Orda and conglomerate covering Prime Capital styled Dordoi 7.7mm2, 50% Association share of fresh market

Board Varies Varies 4-25 members 4-25 members Drawn from Structure according to according to drawn from of Technical Ministry administration administration Food Centre Advisory Shareholders owner, private owner, private operators. Committee or public or public Elected drawn from municipality Chairperson & government, Appointed producers, Director market operators & other users

Operations Infrastructure Infrastructure Infrastructure & Infrastructure Infrastructure & & service & service service & service service provider. provider. provider. provider. provider. Doesn’t buy or Doesn’t buy or Doesn’t buy or Doesn’t buy or Doesn’t buy or sell produce sell produce. sell produce. sell produce. sell produce.

Organization Wholesale Wholesale Wholesale Wholesale Wholesale markets; markets; markets and markets; markets; complementar complementar complementary exclusive complementary y activities y activities value adding areas for activities (e.g. (e.g. grading, (e.g. SPS food activities complementar cold storage) & SPS food safety PPP) y activities land safety

Hygienic WTO & EAEU WTO & EAEU EU & WHWM EU & WHWM EU & WHWM Management compliant compliant compliant compliant compliant

Market Limited but Limited & not Not evident Not evident Not evident Information some distributed to availability & users not distributed to users

National Not evident Not evident Must comply Must comply Must comply Sustainable Urban Plan Influence

Anti-trust National anti- National anti- Not evident but Mix of Not evident but monopoly monopoly but have to comply exclusive & have to comply enforced, no with specific non-exclusive with specific especially on enforcement anti-monopoly rules & comply anti-monopoly vertical evidence general rules with EU anti- EU general rules integration including EU monopoly

‘One-stop- One-stop-shop SPS laboratory In-part but not Not evident In-part but not shop’ legislation in & collection categorized as categorized as place test facilities ‘one-stop-shop’ ‘one-stop-shop’

Users Producers, Producers, Operators Producers, Over 3,000 traders, traders, (Entrepreneurs sellers, companies retailers, retailers, ) & Customers. brokers, including processors processors Others: groups, farmers as Suppliers professional sellers buyers

Subsidies Yes, but Not available Yes. PNAC of Yes. PNAC of Yes. Yes. PNAC relatively low but understood 1.22, EU 1.22, EU of 1.22, EU for agriculture to be very low, average average average at PNAC of less than 4% 1.04

Import tariffs 6.9% for fruit & 6.9% for fruit & 10.5% for fruit 10.5% for fruit 10.5% for fruit & vegetables vegetables & vegetables & vegetables vegetables

Acceptance Based on legal Legal entity & Legal entity Legal entity & Legal entity and into WSM entity and satisfactory and satisfactory satisfactory satisfactory quality satisfactory quality quality quality quality

Location & Proximity to Close to city Strategic C Strategic Strategic Construction city and central & location & location & location & complies with complies with complies with complies with complies with construction, construction, construction, construction, construction, maintenance & maintenance & maintenance & maintenance & maintenance & food safety food safety food safety food safety food safety

Occupancy Lease Lease Lease, Lease, Lease, Legal information, information, information, Obligations safety, labour safety, labour safety, labour & & employment & employment employment

Functioning Days & hours Days & hours Days & hours Days & hours Days & hours set by set by set by set by set by Municipality Municipality Municipality Municipality Municipality

Access & Maybe part Maybe part Not open to Not open to Not open to Circulation open to public. open to public. public. National public. public. National National road National road road rules & National road road rules & rules & more rules & more more rules & more more

Lease, Negotiate with Negotiate with Set by Negotiate with Negotiate with service WSM director WSM director negotiation WSM director WSM director charges & with Director, entry fees annual review

Services Admin, water, Admin, water, Admin, water, Admin, water, Admin, water, electricity, electricity, electricity, electricity, electricity, roads, roads, parking, roads, parking, roads, parking, roads, parking, parking, security, security, security, security, security, cleaning, cleaning, cleaning, waste cleaning, cleaning, waste waste etc. waste etc. etc. waste etc. etc.

General laws All practices All practices All practices All practices All practices & rules cover

Compliance WSM manager All practices Warnings, Market Market manager enforces penalties, manager enforces all fines, enforces all rules suspension rules etc.

Unique Significant Large Cooperative National Large national features investor conglomerate structure interest tests International technical assistance

Appendix B Regulation of All Activities Occurring on the Wholesale Market Land

Definitions

o Wholesale Market Rules (WSMR) means the agreed standards and procedures adopted by a Wholesale Market to meet its objectives and strategies in a way that’s consistent with legislation, regulations, policies and codes of conduct. o Wholesale Market Board (WSMB) refers to the governing Board of the Wholesale Market Legal Organization. o Wholesale Market Legal Organization. The WSM will be managed by a legal registered organization. o Wholesale Market Land (WSML) refers to the land on which the wholesale market is located and under control of the WSMB. o Compliance Officer refers to the Compliance Office appointed by the WMB to encourage and enforce compliance with the WSMR. o Tribunal refers to the organisation established by WSMB to receive complaints, inquire into and settle Wholesale Market Disputes. 1. All agreements made between WSMB and any person or organization or institution which creates a proprietary interest in land or buildings or activities taking place on the said land or buildings is and will be subject to these WSMR and contain clauses in all agreements stating that they are subject to the WSMR. 2. The WSMB has authority to make WSMR with respect to all activities undertaken on the said land or within the said buildings. 3. Any WSMR currently in force will remain in force unless repealed, varied or amended by the WSMB. 4. The WSMR will be applied to any new wholesale market development. 5. The WSMB shall have power to prescribe sanctions or penalties against persons or organizations located on the WSML and in breach of WSMR. These penalties may include fees, charges and termination of agreements or licenses. The Enforcement of Wholesale Market Rules

− The WSMB shall appoint a permanent Officer-in-Charge of Market Rules (OICMR).

− The OICMR shall have the power and authority to issue written notices of breaches of rules to persons/organizations in breach of rules.

− The notice of a breach rules shall state: 1. The market rules breached 2. The date and time of the breach 3. The person(s) and organization(s) involved with the breach including sub-contractors 4. The sanctions imposed for the breach including costs and time and penalties for non- compliance or delayed compliance

5. In the event of non-compliance or delayed compliance with a sanction for a breach the OICMR may enforce and give notice of termination of a license to occupy land or buildings on the WSML 6. In the event of delayed compliance with sanctions the OICMR may revive/restore the license to occupy land or buildings on the WSML.

− The OICMR shall provide to the WSMB detailed monthly reports of compliance with WSMR and breaches and sanctions applied if any including restorations. Dispute Resolution Procedures 1. The WSMB will appoint a 3-person Tribunal to hear and consider grievances/disputes in relation to sanctions and license terminations and related matters. 2. The WSMB will have the authority to remove and reappoint Tribunal members. 3. The time limit for lodging a grievance/dispute shall be within 30 calendar days from the time of the notice of the event by the OIMR causing a sanction or termination of license. 4. Grievances are to be lodged with the General Manager of the Wholesale Market. 5. The cost of lodging a grievance will be zero unless determined otherwise at the discretion of the General Manager. 6. Hearings of disputes will be received by the 3-person Tribunal which will not comprise any members with a conflict of interest in the dispute. Where a conflict of interest exists with a Tribunal member then an alternative member may be appointed. 7. The OICMR will prepare within 7 days for the Tribunal a detailed but brief report of the circumstances causing the breach of WMR and justification for the penalties applied. 8. The Tribunal shall select a time and place to hear the grievance within 14 days of lodgement of the dispute. 9. The Tribunal will have full regard to the WSMR. 10. Tribunal hearings will not be open to the public or to legal representatives of either parties. Witnesses may be called by OICMR or the disputing party.

Table 1: Basic List of Rules & Regulations for Functioning WSM

1 General Provisions & Purpose, responsibilities, accountability, transparency, health Definitions & hygiene, scope, management, ownership, Internet trading etc.

2 Administration of the WSM Registered organization and ownership, powers of enforcement, governing laws, management, WSM promotion

3 Board Member numbers & eligibility (including from tenants and investors), chairperson, terms

4 Operations Secretariat, authorities, market conduct, competitive behaviour, powers of enforcement, accountabilities, scope, site access, market times & hours, loading & unloading, parking & traffic control, waste management, cleanliness & hygiene, biosecurity, identifications and security

5 Trading Produce & Products Eligible produce, packaging

6 Users Traders, producers, processors, retailers, customers, services, sub-contractors

7 Communication & Consultation Communication & consultation with users & key stakeholders including local government

8 Applications & Acceptance Procedure & application forms, tenant categories, occupancy, legality, quality commitment, renewal

9 Temporary Users Seasonal occupiers, special conditions

10 Locations, Leaseholders, Terms of occupation, rules for breaches, fees and services, 3rd Permanent Users parties, rights & entitlement, development plans, inspections & compliance, food safety etc

11 Legal Obligations Provide information, food safety, labour compliance, fire safety, electrical safety, hazards & incidents reporting, general regulations

12 Functionality Days/hours, amendments, supply, sales, ‘one-stop-shop’,

13 Traffic rules Movements, general traffic rules, not open to public

14 Lease, service charges & entry All fees and charges and amendments fees

15 Services Water, lighting, parking, waste, cleaning, maintenance, amenities, security, training

16 General Rules Cleaning, presentation, standards, certifications, Frequently Asked Questions

17 Disciplines Penalties, sanctions, Regulatory Impact Assessments etc

18 Specific Regulations Traffic, parking, logistics, waste management, food safety & hygiene, quality control, skills development & training, imports & exports, EAEU, anti-monopoly etc

Appendix C: Master Plan Data Analysis, Charts and Statistics Report

Commodities and Markets

For the purpose of the project focus on target commodity groups, a marketing analysis of the consumption and production markets was carried out for 24 commodity groups using 4-digit HS codes or 54 types of products allocated by priority groups.

Table 2. Priority A. Fruits and vegetables products of open and closed ground, as well as flowers, melons and gourds and beans produced in Kazakhstan and the Kyrgyz Republic (total 13 product groups under the TN VED code, or 20 product names). № product name Custom code (HS)

1 Tomatoes Custom Code 0702

2 Cucumbers Custom Code 0707

3 Apples and pears Custom Code 0808 4 Apricots, Peaches, Cherries, Cherries, Plums, Strawberries, Raspberries, Currants Custom Code 0809

5 Grapes Custom Code 0806

6 Carrots, beets, turnips, radishes Custom Code 0706

7 Onion and garlic Custom Code 0703

8 Peppers Custom Code 0904

9 Potatoes Custom Code 0701

10 Cabbage, eggplants, squash Custom Code 0704

11 Gourds (pumpkin, melon, watermelons) Custom Code 0807

12 Peas Custom Code 0708

13 Flowers, thousand pieces Custom Code 0603

Table 3. Priority B. Fruit and vegetable products not produced in Kazakhstan and the Kyrgyz Republic, participating in the commodity market of fruits and vegetables as imports № product name Custom code (HS) 1 Manioc, Jerusalem artichoke, sweet root vegetables Custom Code 0714

2 Coconut, Cashew, Brazilian and Other Nuts Custom Code 0801- 0802 3 Bananas and Plantains Custom Code 0803

4 Dates, figs, pineapples Custom Code 0804

5 Citrus fruit Custom Code 0805

6 Dried fruits Custom Code 0813

Table 4. Priority C. Export Livestock Products Proposed by the Ministry of Agriculture of the Republic of Kazakhstan for Analysis № product name Custom code (HS) 1 Red meat and offal Custom Code 0201- 0206 2 Poultry meat and offal Custom Code 0207

3 A fish Custom Code 0302- 0305 4 Packaged Dairy Products Custom Code 0401- 0404 5 Butter, cheese and cottage cheese Custom Code 0405- 0406

The territory of Kazakhstan in food logistics is divided into 4 main trade macro-regions: 1. Central or Northern, focused on mutual trade with the Siberian Federal District of Russia - Astana, Akmola, Pavlodar, Karaganda, North Kazakhstan and Kostanay regions. Here, the center of trade accounts for food in the Astana-Karaganda conurbation, and the most active border trade in the North Kazakhstan and Kostanay regions. 2. Southeast, focused on foreign trade with China - Almaty, Almaty and East Kazakhstan region. Here, trade on the domestic market is concentrated in Almaty, and foreign trade with China and Russia is mainly carried out through the ICBC Khorgos.

3. Southern, focused on the acceleration and distribution of incoming deliveries of agricultural products from the countries of Central Asia and from the southern regions of Kazakhstan - Shymkent, Turkestan, Kyzylorda and Zhambyl regions. 4. Western, focused on trade with the Ural and Volga Federal Districts of Russia, as well as trade with the Caspian countries - Aktobe, West Kazakhstan, Mangistau and Atyrau regions. This region is scarce in most types of agricultural products and is under the direct influence of Russia.

Table 5. Per capita consumption of key products in Kazakhstan Average consumption in Kazakhstan per capita foods per month Y 2012 Y 2013 Y 2014 Y 2015 Y 2016 Y 2017 Y 2018

bakery products and cereals 10,3 10,4 10,5 10,8 10,9 11,1 11,4

meat and meat products 5,6 5,8 5,9 6,1 6,1 6,1 6,1

Fish and seafood 0,9 0,9 0,9 0,9 0,9 0,9 0,9

milk and dairy products 18,4 19,0 18,8 19,5 19,6 19,8 20,0

eggs (pieces) 13,0 13,2 13,1 13,7 13,7 14,0 14,4

oils and fats 1,5 1,5 1,6 1,6 1,6 1,6 1,7

Fruits 4,9 5,1 5,1 5,4 5,1 5,4 5,7

apples and pears 1,5 1,5 1,5 1,6 1,5 1,6 1,7

apricots, peaches, nectarins, berries 0,5 0,5 0,5 0,5 0,5 0,5 0,6

Grape 0,5 0,5 0,5 0,5 0,5 0,5 0,5

melons, watermelons 2,4 2,6 2,5 2,7 2,6 2,7 2,9

Vegetables 13,6 14,7 15,7 17,3 18,6 20,3 22,2

Tomatoes 3,5 4,0 4,6 5,3 6,1 7,0 8,1

cucumbers 2,9 3,4 3,9 4,5 5,1 5,9 6,8

other vegetables 7,2 7,3 7,2 7,5 7,4 7,4 7,4

Potatoes 4,1 4,1 4,0 4,0 4,0 3,9 4,0

sugar, jam, honey, chocolate, confectionery 3,2 3,3 3,3 3,5 3,4 3,4 3,5

Source - Committee on Statistics of the MNE RK

The total consumption capacity of fruits and vegetables in Kazakhstan is estimated in 2018 at the level of 10.6 million tons, including industrial processing, including consumption by the population without processing at 7 million tons or about 70%.

Figure 1. Structure of trade in fruit and vegetable products in Kazakhstan Import Export 7% 6%

Domestic Retail Sales 38% Processing 49%

Table 6. Assessment of the total capacity of the fruit and vegetable market in Kazakhstan Commodity Fresh turnover in market- Kazakhstan as a Sales to the Industrial whole (2018 population consumption Import Exports estimate), tons in% of and loss% of in% of from Domestic Total per domestic domestic turnover turnover% market of capita consumption consumption Kazakhstan, consumption without tons (2017) in kg / year processing

Tomatoes 970 845 53,30 44% 56% 12% 2%

Cucumbers 508 370 27,91 91% 9% 3% 1%

Apples 364 272 20,00 42% 58% 45% 0%

Pears 364 272 20,00 42% 58% 3% 0%

Apricots 36 087 1,98 93% 7% 60% 16%

Peaches 2 773 0,15 93% 7% 60% 16%

Cherry 22 913 1,26 93% 7% 60% 16%

Cherries 17 433 0,96 93% 7% 60% 16%

Plum 14 136 0,78 93% 7% 60% 16%

Strawberry 13 150 0,72 93% 7% 60% 16%

Raspberries 18 763 1,03 93% 7% 60% 16%

Currant 8 638 0,47 93% 7% 60% 16%

Grapes 221 287 12,15 49% 51% 60% 5%

Carrot 589 302 32,35 44% 56% 6% 1%

Beet table 179 634 9,86 44% 56% 6% 1%

Onion 723 412 39,72 44% 56% 6% 13%

Garlic 42 921 2,36 44% 56% 7% 0%

Eggplant 57 416 3,15 44% 56% 10% 0%

Peppers 225 886 12,40 44% 56% 5% 0%

Potatoes 3 382 901 185,72 44% 56% 3% 8%

Cabbage 339 325 18,63 44% 56% 6% 41%

Pumpkin 139 227 7,64 44% 56% 0% 1%

Melons 746 617 40,99 28% 72% 3% 1%

Watermelons 1 382 021 75,87 28% 72% 0% 1%

Peas 231 390 12,70 50% 50% 0% 0%

TOTAL tons (without colors) 10 602 992 582 6 974 287

Source - calculations according to the Statistics Committee of the MNE RK Taking into account all areas of fruit and vegetable trade, total turnover in Kazakhstan is about 11.3 million tons per year, including 38% of retail sales, 49% of industrial processing, 7% of imports and 6% of export shipments to foreign markets.

Table 7. General commodity circulation for fruits and vegetables in Kazakhstan Commodity turnover in Total Total turnover Kazakhstan as a whole supplies for Import Export of the Republic (2018 estimate), tons Total retail processing, supplies, shipments, of Kazakhstan, trade, tons tons tons tons tons

Tomatoes 424 864 545 981 120 249 24 348 995 193

Cucumbers 464 210 44 160 15 378 7 604 515 974

Apples 153 364 210 908 163 103 1 465 365 737

Pears 153 364 210 908 11 439 - 364 272

Apricots 33 457 2 630 25 499 6 651 42 738

Peaches 2 571 202 1 960 511 3 284

Cherry 21 243 1 670 16 191 4 223 27 136

Cherries 16 163 1 270 12 319 3 213 20 646

Plum 13 106 1 030 9 989 2 605 16 741

Strawberry 12 192 958 9 292 2 424 15 574

Raspberries 17 396 1 367 13 258 3 458 22 221

Currant 8 009 630 6 104 1 592 10 230

Grapes 109 289 111 998 140 783 11 520 232 807

Carrot 257 892 331 409 36 517 6 132 595 434

Beet table 78 612 101 022 11 131 1 869 181 503

Onion 316 582 406 830 50 423 109 733 833 145

Garlic 18 783 24 138 2 992 - 42 921

Eggplant 25 127 32 289 5 572 - 57 416

Peppers 98 853 127 033 11 411 6 225 893

Potatoes 1 480 437 1 902 464 119 201 302 556 3 685 457

Cabbage 148 497 190 829 32 931 238 437 577 762

Pumpkin 60 929 78 298 - 738 139 965

Melons 209 225 537 391 24 550 3 958 750 575

Watermelons 387 286 994 735 - 7 327 1 389 348

Peas 115 695 115 695 504 114 231 504

TOTAL tons (without colors) 4 627 145 5 975 846 840 796 740 487 11 343 478

Figure 2. Total consumption per capita (including processing) in kg per year

Consumption per capita/kg/annual

185,72 185,72

75,87 75,87

53,30 53,30

40,99 40,99

39,72 39,72

32,35 32,35

27,91 27,91

20,00 20,00 20,00

18,63 18,63

12,70 12,70

12,40 12,40

12,15 12,15

9,86 9,86

7,64 7,64

3,15 3,15

2,36 2,36

1,98 1,98

1,26 1,26

1,03 1,03

0,96 0,96

0,78 0,78

0,72 0,72

0,47 0,47 0,15 0,15

Population consumption of fruit and vegetables in Kazakhstan in 2017 reached almost 7 million tons, including 1.2 million tons of fruits and berries (18%), over 4.8 million tons of vegetables (70%) and about 0.9 million tons of potatoes (12%).

Table 8. Population consumption of fresh fruits and vegetables without processing in Kazakhstan, tons per year Domestic consumption, tonnes per year Y 2012 Y 2013 Y 2014 Y 2015 Y 2016 Y 2017 Y 2018

fruits 987 375 1 042 576 1 051 422 1 136 774 1 088 996 1 164 916 1 241 361

apples and pears 296 212 312 773 315 426 341 032 326 699 349 475 372 408

apricots, peaches, nectarins, berries 98 737 104 258 105 142 113 677 108 900 116 492 124 136

grape 100 753 102 213 103 730 105 257 106 764 108 227 109 289

melons, watermelons 491 672 523 332 527 123 576 807 546 633 590 723 635 527

vegetables, excluding potatoes 2 746 514 3 003 947 3 261 731 3 637 513 3 981 479 4 396 299 4 858 612

tomatoes 58 772 68 568 80 023 93 381 108 927 126 981 147 462

cucumbers 49 201 57 401 66 991 78 174 91 187 106 302 123 447

other vegetables 1 450 836 1 492 314 1 497 563 1 578 853 1 580 112 1 596 902 1 607 697

potatoes 826 171 838 149 838 862 842 055 854 115 845 954 874 314

total horticulture market in Kazakhstan 4 560 060 4 884 671 5 152 014 5 616 342 5 924 590 6 407 168 6 974 287

The total population of Kazakhstan in 2018 reached 18,214,884 people. The average population growth rate in Kazakhstan is about 2.5% per year, but the most rapidly growing consumption markets are Almaty, Astana, and Shymkent.

Table 9. Average annual population of the Republic of Kazakhstan, people Year 2012 2013 2014 2015 2016 2017 2018

The Republic of 16 792 17 035 17 288 17 542 17 794 18 037 18 214 Kazakhstan 089 550 285 806 055 776 884

Akmola 732 084 734 190 736 086 740 490 739 394 736 656 739 469

Aktobe 791 130 802 428 815 771 828 682 840 244 851 695 860 616

Almaty 1 927 808 1 965 702 1 977 565 1 934 720 1 965 508 2 000 371 2 021 935

Atyrau 549 079 561 515 574 610 587 950 601 020 614 106 623 943

West Kazakhstan 615 158 620 910 627 070 633 518 639 246 644 220 648 193

Zhambylskaya 1 062 804 1 077 077 1 091 429 1 104 619 1 113 028 1 116 264 1 118 995

Karaganda 1 360 373 1 366 218 1 373 890 1 381 466 1 383 772 1 381 636 1 380 288

Kostanay 879 876 880 542 881 268 882 688 881 470 877 375 874 979

Kyzylorda 719 795 733 209 746 364 759 030 769 100 778 150 785 965

Mangystau 556 779 577 600 597 137 616 808 634 799 651 571 664 738

SKO / Turkestan since 2018 2 650 106 2 705 896 2 760 480 2 814 388 2 859 754 2 903 916 1 966 771

Pavlodar 748 184 751 057 754 354 757 194 757 804 755 934 754 646

North Kazakhstan 581 736 577 822 573 887 570 712 566 447 560 942 557 686

East Kazakhstan 1 394 564 1 394 228 1 394 927 1 395 742 1 392 794 1 386 656 1 382 799

Astana 760 506 796 282 833 611 862 694 922 638 1 001 634 1 039 272

Almaty city 1 462 107 1 490 874 1 549 836 1 672 105 1 727 037 1 776 650 1 815 506

Shymkent 0 0 0 0 0 0 979 083

The key markets for food consumption are cities, the total share of urbanization in Kazakhstan is 57.8%.

Table 10. Urban and rural population of the Republic of Kazakhstan, people Год 2012 2013 2014 2015 2016 2017 2018

Urban population

The Republic of 9 202 9 355 9 635 9 936 10 142 10 336 10 529 Kazakhstan 707 723 300 301 840 836 102

Akmola 343 015 345 328 346 876 349 290 349 960 348 689 348 673

Aktobe 487 818 494 744 504 727 515 912 526 482 538 530 551 132

Almaty 448 279 454 859 486 086 468 387 472 868 469 585 460 534

Atyrau 264 418 266 691 269 765 278 863 287 610 294 358 298 627

West Kazakhstan 300 108 305 093 309 750 314 875 320 900 328 861 336 460

Zhambylskaya 425 024 432 141 439 562 446 100 449 090 446 283 444 493

Karaganda 1 065 1 072 1 082 1 092 1 097 1 098 1 099 839 950 836 463 620 823 029

Kostanay 448 737 452 886 457 561 463 818 468 050 470 815 473 971

Kyzylorda 306 014 313 331 320 854 329 337 337 261 343 514 349 129

Mangystau 284 837 290 434 280 609 269 839 272 555 271 392 270 794

South Kazakhstan 1 036 1 059 1 158 1 262 1 289 1 321 1 387 937 001 453 510 908 527 131

Pavlodar 516 417 521 655 527 468 532 246 534 599 534 072 251 365

North Kazakhstan 238 899 240 316 242 284 246 083 249 115 250 072 381 135

East Kazakhstan 813 752 819 138 825 022 831 779 837 147 842 031 847 680

Astana 1 001 1 047 760 506 796 282 833 611 862 694 922 638 634 966

Almaty city 1 462 1 490 1 549 1 672 1 727 1 776 1 829 107 874 836 105 037 650 019

Rural population

The Republic of 7 589 7 679 7 652 7 606 7 651 7 700 7 743 Kazakhstan 382 827 985 505 215 940 328

Akmola 389 069 388 862 389 210 391 200 389 434 387 967 391 324

Aktobe 303 312 307 684 311 044 312 770 313 762 313 165 312 389

Almaty 1 479 1 510 1 491 1 466 1 492 1 530 1 566 529 843 479 333 640 786 060

Atyrau 284 661 294 824 304 845 309 087 313 410 319 748 328 575

West Kazakhstan 315 050 315 817 317 320 318 643 318 346 315 359 313 000

Zhambylskaya 637 780 644 936 651 867 658 519 663 938 669 981 676 276

Karaganda 294 534 293 268 291 054 289 003 286 152 282 813 281 009

Kostanay 431 139 427 656 423 707 418 870 413 420 406 560 400 370

Kyzylorda 413 781 419 878 425 510 429 693 431 839 434 636 439 644

Mangystau 271 942 287 166 316 528 346 969 362 244 380 179 398 365

South Kazakhstan 1 613 1 646 1 602 1 551 1 569 1 582 1 575 169 895 027 878 846 389 381

Pavlodar 231 767 229 402 226 886 224 948 223 205 221 862 221 340

North Kazakhstan 342 837 337 506 331 603 324 629 317 332 310 870 305 422

East Kazakhstan 580 812 575 090 569 905 563 963 555 647 544 625 534 173

When recalculating the average per capita consumption of fruits and vegetables by the allocated trade macro-regions within Kazakhstan, the total market capacity can be estimated at 10.6 million tons per year, including the Central macro-region 29.4%, the Southeast macro-region 3 million tons per year or 28.7%, Southern macroregion 2.8 million tons or 26.6%, Western macroregion 1.6 million tons or 15.4%. The level of urbanization of the population varies greatly in selected macro regions. This directly affects the size and nature of the consumption of fruits and vegetables, as well as the development of major trade channels. Table 11. The level of urbanization of the trade macro-regions of Kazakhstan at the beginning of 2018 Macroregion Whole Urban population population, Rural population, Urbanization level capita capita capita %

Central 5 346 340 3 602 139 1 744 201 67,4%

Southeastern 5 220 240 3 137 233 2 083 007 60,1%

Southern 3 731 819 1 387 131 2 344 688 37,2%

West 3 916 485 2 402 599 1 513 886 61,3%

Graph 1. Map of trade macro-regions of Kazakhstan

29.4% market for fruit and 28.7% market for fruit and vegetable products vegetable products Russia 67.4% urbanization 60.1% urbanization

China

Iran Caucasu s

Central Asia 15.4% market for fruit and vegetable consumption 15.4% market for fruit and

61.3% urbanization vegetable consumption

61.3% urbanization

Central or Northern macro-region with the center in Astana - 3.1 million tons per year or 29.4% of the total domestic market of Kazakhstan. The population of the macroregion includes 5 346 340 people at the beginning of 2018, including 67.4% of the level of urbanization.

Table 12. Market Capacity Assessment of the Central Macro-Region Regional Akmola Astana Karaganda Pavlodar Kostanay North TOTAL consumption, city Kazakhstan North tons Central HUB (Astana WSM)

Tomatoes 39 413 55 393 73 569 40 222 46 636 29 724 284 957

Cucumbers 20 638 29 006 38 523 21 062 24 420 15 565 149 214

Apples 14 788 20 784 27 604 15 092 17 498 11 153 106 919

Pears 14 788 20 784 27 604 15 092 17 498 11 153 106 919

Apricots 1 465 2 059 2 735 1 495 1 733 1 105 10 592

Peaches 113 158 210 115 133 85 814

Cherry 930 1 307 1 736 949 1 101 702 6 725

Cherries 708 995 1 321 722 837 534 5 117

Plum 574 807 1 071 586 679 433 4 149

Strawberry 534 750 996 545 632 403 3 860

Raspberries 762 1 071 1 422 777 901 574 5 507

Currant 351 493 655 358 415 264 2 535

Grapes 8 984 12 626 16 769 9 168 10 630 6 775 64 951

Carrot 23 924 33 623 44 656 24 415 28 308 18 043 172 969

Beet table 7 293 10 249 13 612 7 442 8 629 5 500 52 725

Onion 29 368 41 275 54 819 29 971 34 750 22 149 212 332

Garlic 1 742 2 449 3 252 1 778 2 062 1 314 12 598

Eggplant 2 331 3 276 4 351 2 379 2 758 1 758 16 852

Peppers 9 170 12 888 17 117 9 359 10 851 6 916 66 301

Potatoes 137 336 193 015 256 350 140 154 162 503 103 574 992 932

Cabbage 13 776 19 361 25 713 14 058 16 300 10 389 99 597

Pumpkin 5 652 7 944 10 550 5 768 6 688 4 263 40 865

Melons 30 310 42 599 56 577 30 932 35 865 22 859 219 143

Watermelons 56 106 78 853 104 727 57 257 66 387 42 313 405 644

Peas 9 394 13 202 17 534 9 587 11 115 7 084 67 916

Flowers, 336 819 thousand pieces 46 587 65 474 86 958 47 543 55 124 35 134

TOTAL fruit and vegetable products, tons 430 449 604 966 803 474 439 284 509 330 324 632 3 112 136 per year (without flowers)

Market share in Kazakhstan% 4,1% 5,7% 7,6% 4,1% 4,8% 3,1% 29,4%

Southeast macro-region with its center in Almaty - 3 million tons per year or 28.7% of the total domestic market of Kazakhstan. The population of the macro-region includes 5,220,240 people at the beginning of 2018, including 60.1% of the level of urbanization. The largest consumer market is concentrated in Almaty, and the center of foreign trade in the Almaty region through the ICBC Khorgos. The main shipments for export to Russia are through the trade channels of the East Kazakhstan region.

Table 13. Evaluation of the market capacity of the Southeast macro-region Regional consumption, tons TOTAL Southeast HUB (Almaty East WSM) Almaty region Almaty City Kazakhstan

Tomatoes 107 768 96 766 73 703 278 236

Cucumbers 56 431 50 670 38 593 145 695

Apples 40 436 36 308 27 654 104 397

Pears 40 436 36 308 27 654 104 397

Apricots 4 006 3 597 2 740 10 342

Peaches 308 276 211 795

Cherry 2 543 2 284 1 739 6 567

Cherries 1 935 1 738 1 323 4 996

Plum 1 569 1 409 1 073 4 051

Strawberry 1 460 1 311 998 3 769

Raspberries 2 083 1 870 1 424 5 377

Currant 959 861 656 2 476

Grapes 24 564 22 056 16 799 63 419

Carrot 65 415 58 737 44 737 168 889

Beet table 19 940 17 904 13 637 51 482

Onion 80 302 72 104 54 918 207 324

Garlic 4 764 4 278 3 258 12 301

Eggplant 6 373 5 723 4 359 16 455

Peppers 25 074 22 514 17 148 64 737

Potatoes 375 517 337 179 256 816 969 512

Cabbage 37 667 33 821 25 760 97 248

Pumpkin 15 455 13 877 10 570 39 901

Melons 82 878 74 416 56 680 213 974

Watermelons 153 411 137 748 104 917 396 076

Peas 25 685 23 063 17 566 66 314

Flowers, thousand pieces 127 382 114 377 87 116 328 875

TOTAL fruit and vegetable products, tons per year (without 1 176 980 1 056 817 804 935 3 038 733 flowers)

Market share in Kazakhstan% 11,1% 10,0% 7,6% 28,7%

The southern macro-region with the center in Shymkent - 2.8 million tons per year or 26.67% of the total domestic market of Kazakhstan. The population of the macro-region includes 3 731 819 people at the beginning of 2018, including the 37.2% level of urbanization. The largest consumer market is concentrated in Shymkent, and the center of foreign trade with the Kyrgyz Republic is in the Zhambyl region. Deliveries from Uzbekistan go through the city of Shymkent. Table 14. Evaluation of the market capacity of the Southern macroregion Regional TOTAL consumption, tons Southern HUB Zhambyl Turkestan Kyzylorda (Shymkent region region Shymkent city region WSM)

Tomatoes 59 642 104 828 52 185 41 892 258 546

Cucumbers 31 231 54 892 27 326 21 936 135 384

Apples 22 378 39 333 19 580 15 718 97 009

Pears 22 378 39 333 19 580 15 718 97 009

Apricots 2 217 3 897 1 940 1 557 9 610

Peaches 170 299 149 120 739

Cherry 1 408 2 474 1 232 989 6 102

Cherries 1 071 1 882 937 752 4 643

Plum 868 1 526 760 610 3 765

Strawberry 808 1 420 707 567 3 502

Raspberries 1 153 2 026 1 009 810 4 997

Currant 531 933 464 373 2 300

Grapes 13 594 23 894 11 895 9 548 58 931

Carrot 36 203 63 630 31 676 25 428 156 937

Beet table 11 035 19 396 9 656 7 751 47 838

Onion 44 441 78 111 38 885 31 215 192 652

Garlic 2 637 4 634 2 307 1 852 11 430

Eggplant 3 527 6 200 3 086 2 477 15 291

Peppers 13 877 24 390 12 142 9 747 60 156

Potatoes 207 822 365 272 181 837 145 971 900 902

Cabbage 20 846 36 639 18 239 14 642 90 366

Pumpkin 8 553 15 033 7 484 6 008 37 078

Melons 45 867 80 617 40 132 32 216 198 832

Watermelons 84 902 149 225 74 286 59 634 368 047

Peas 14 215 24 985 12 438 9 984 61 622

Flowers, thousand 305 601 pieces 70 497 123 907 61 682 49 516

TOTAL fruit and vegetable products, 651 374 1 144 869 569 930 457 515 2 823 687 tons per year (without flowers)

Market share in Kazakhstan% 6,1% 10,8% 5,4% 4,3% 26,6%

Western macro-region with the center in Aktobe - 1.6 million tons per year or 15.4% of the total domestic market of Kazakhstan. The population of the macro-region includes 3,916,485 people at the beginning of 2018, including 61.3% of the level of urbanization. The largest consumer market is concentrated in Aktobe. The center of foreign trade with Russia is located in the West Kazakhstan region - Uralsk. The center of trade with the Caspian region on agro products is located in Aktau, Mangystau region. The largest center of the catering market is located in the city of Atyrau, Atyrau region. Table 15. Market Capacity Assessment for the Western Macro-Region Regional consumption, tons TOTAL Western HUB (Aktobe West Magystau Atyrau WSM) Aktobe Kazakhstan region region

Tomatoes 45 870 34 548 35 430 33 256 149 105

Cucumbers 24 019 18 091 18 553 17 414 78 077

Apples 17 211 12 963 13 294 12 478 55 946

Pears 17 211 12 963 13 294 12 478 55 946

Apricots 1 705 1 284 1 317 1 236 5 542

Peaches 131 99 101 95 426

Cherry 1 083 815 836 785 3 519

Cherries 824 620 636 597 2 677

Plum 668 503 516 484 2 171

Strawberry 621 468 480 450 2 020

Raspberries 887 668 685 643 2 882

Currant 408 307 315 296 1 327

Grapes 10 455 7 875 8 076 7 580 33 986

Carrot 27 843 20 971 21 506 20 186 90 507

Beet table 8 487 6 392 6 556 6 153 27 589

Onion 34 180 25 743 26 400 24 780 111 104

Garlic 2 028 1 527 1 566 1 470 6 592

Eggplant 2 713 2 043 2 095 1 967 8 818

Peppers 10 673 8 038 8 244 7 738 34 692

Potatoes 159 835 120 384 123 456 115 880 519 555

Cabbage 16 032 12 075 12 383 11 623 52 114

Pumpkin 6 578 4 955 5 081 4 769 21 383

Melons 35 276 26 569 27 247 25 575 114 667

Watermelons 65 298 49 180 50 436 47 341 212 254

Peas 10 933 8 234 8 444 7 926 35 537

Flowers, thousand 176 242 pieces 54 219 40 836 41 878 39 308

TOTAL fruit and vegetable products, tons per 500 970 377 317 386 948 363 201 1 628 435 year (without flowers)

Market share in Kazakhstan% 4,7% 3,6% 3,6% 3,4% 15,4%

TARGET COMMODITIES TRADE BALANCE

Table 16. The potatoes are processed (HS 0701) 2013 2014 2015 2017 2018 2012 year 2016 year performing index year year year year year (fact) (fact) (fact) (fact) (fact) (fact) (forecast)

5 440 5 578 6 039 5 105 400 5 804 400 5 921 000 6 161 274 Resources in tons: 500 400 942

3 343 3 410 3 551 3 126 400 3 521 000 3 545 700 3 566 256 Production 600 500 100

Import 69 846 114 002 56 385 103 536 36 026 46 146 119 201

Stocks at the 1 982 2 111 2 442 beginning of the 1 909 154 2 179 864 2 339 274 2 475 817 898 515 697 year

Consumption in 5 440 5 578 6 039 5 105 400 5 804 400 5 921 000 6 161 274 tons: 500 400 942

Consumed in the 2 648 2 682 3 927 2 649 500 2 745 100 2 843 800 4 140 528 domestic market 900 200 764

Production 836 783 200 755 900 770 900 800 600 818 400 1 000 000 consumption 596

Implemented by 1 884 1 904 2 005 1 861 200 1 941 000 1 972 800 2 037 972 the population 300 600 121

271 5 008 8 556 6 311 3 577 52 276 302 556 Export 047

815 505 600 713 300 765 200 795 200 811 200 800 000 Storage loss 000

Stocks at end of 2 078 2 131 1 297 1 950 300 2 264 100 2 266 000 1 220 746 year 300 000 178

Export share of 0,2% 0,3% 0,2% 0,1% 1,5% 7,6% 8,5% production

Import dependence of the domestic 3% 4% 2% 4% 1% 1% 3% market

Share of population consumption in% of 70% 71% 71% 71% 69% 51% 49% the domestic market

Share of consumption by processors 30% 29% 29% 29% 31% 49% 51% (enterprises) in% of the domestic market

Table 17. Greenhouse vegetables (HS 0702, 0707) tomatoes and cucumbers 2017 2018 2012 year 2013 year 2014 year 2015 year 2016 year performing index year year (fact) (fact) (fact) (fact) (fact) (fact) (forecast)

116 183 214 224 221 265 328 Resources in tons: 360 511 756 614 535 945 633

60 90 152 147 159 173 193 Production 200 100 700 600 500 434 007

56 93 62 77 62 92 135 Import 160 411 056 014 035 511 627

116 183 214 224 221 265 328 Consumption in tons: 360 511 756 614 535 945 633

Consumed in the 116 182 214 220 216 244 296 domestic market 302 891 296 951 082 887 681

Production 8 56 67 49 15 11 25 consumption 328 922 282 396 968 604 772

including 107 125 147 171 200 233 270 Implemented by the 973 969 014 555 114 283 910 population

3 5 21 31 Export 58 620 460 663 453 058 952

Export share of 0,1% 0,7% 0,3% 2,5% 3,4% 5,1% 16,6% production

Import dependence of 48% 51% 29% 35% 29% 38% 46% the domestic market

Share of population consumption in% of 93% 69% 69% 78% 93% 95% 91% the domestic market

Share of consumption by processors 7% 31% 31% 22% 7% 5% 9% (enterprises) in% of the domestic market

Table 18. Open field vegetables, except potatoes (HS 0706, 0703, 0704, 0904) 2017 2018 2012 year 2013 year 2014 year 2015 year 2016 year performing index year year (fact) (fact) (fact) (fact) (fact) (fact) (forecast)

3 176 3 525 3 642 3 826 3 822 3 959 4 029 Resources in tons: 200 910 718 041 166 620 877

3 001 3 151 3 317 3 417 3 635 3 791 3 878 Production 300 400 200 300 700 100 899

174 374 325 408 186 168 150 Import 900 510 518 741 466 520 978

3 176 3 525 3 642 3 826 3 822 3 959 4 029 Consumption in tons: 200 910 718 041 166 620 877

Consumed in the 3 111 3 493 3 600 3 775 3 770 3 881 3 673 domestic market 151 485 200 475 540 784 700

Production 1 660 2 001 2 102 2 196 2 190 2 284 2 066 consumption 315 171 637 623 428 881 003 including 1 450 1 492 1 497 1 578 1 580 1 596 1 607 Implemented by the 836 314 563 853 112 902 697 population

65 32 42 50 51 77 356 Export 049 425 519 566 626 836 178

Export share of 2,2% 1,0% 1,3% 1,5% 1,4% 2,1% 9,2% production

Import dependence of the domestic 6% 11% 9% 11% 5% 4% 4% market

Share of population consumption in% of 47% 43% 42% 42% 42% 41% 44% the domestic market

Share of consumption by processors 53% 57% 58% 58% 58% 59% 56% (enterprises) in% of the domestic market

Table 19. Melons (watermelons, melons, pumpkins, cantaloupes, etc. (HS 0807) 2012 2013 2014 2015 2016 2017 2018 performing index year year year year year year year (fact) (fact) (fact) (fact) (fact) (fact) (forecast)

1 676 1 759 1 989 2 094 2 073 2 239 2 279 Resources in tons: 383 109 157 011 478 963 889

1 649 1 713 1 928 2 087 2 070 2 231 2 255 Production 900 000 000 600 900 398 338

26 46 61 6 2 8 24 Import 483 109 157 411 578 565 550

1 676 1 759 1 989 2 094 2 073 2 239 2 279 Consumption in tons: 383 109 157 011 478 963 889

Consumed in the 1 673 1 752 1 979 2 085 2 059 2 109 2 267 domestic market 669 233 009 183 887 838 865

1 181 1 228 1 451 1 508 1 513 1 519 1 632 Production consumption 996 901 885 376 253 115 338 including Implemented by 491 523 527 576 546 590 635 the population 672 332 123 807 633 723 527

2 6 10 8 13 130 12 Export 714 876 149 828 591 125 024

Export share of 0,2% 0,4% 0,5% 0,4% 0,7% 5,8% 0,5% production

Import dependence of the 2% 3% 3% 0% 0% 0% 1% domestic market

Share of population consumption in% of the 29% 30% 27% 28% 27% 28% 28% domestic market

Share of consumption by processors (enterprises) 71% 70% 73% 72% 73% 72% 72% in% of the domestic market

Table 20. Pome fruit fresh (HS 0808) 2012 2013 2014 2015 2016 2017 2018 year performing index year year year year year year (forecast) (fact) (fact) (fact) (fact) (fact) (fact)

324 339 381 405 352 365 416 041 Resources in tons: 655 234 610 838 364 863

185 192 210 196 239 220 241 499 Production 000 300 700 100 700 410

139 146 170 209 112 145 174 543 Import 655 934 910 738 664 453

324 339 381 405 352 365 416 041 Consumption in tons: 655 234 610 838 364 863

Consumed in the 324 339 380 385 351 364 414 576 domestic market 549 143 664 050 770 053

Production 28 26 65 44 25 14 42 168 consumption 336 370 237 018 071 578

including 296 312 315 341 326 349 Implemented by the 372 408 212 773 426 032 699 475 population

20 1 1 465 Export 107 91 946 788 595 810

Export share of 0,1% 0,0% 0,4% 10,6% 0,2% 0,8% 0,6% production

Import dependence of 43% 43% 45% 54% 32% 40% 42% the domestic market

Share of population consumption in% of 91% 92% 83% 89% 93% 96% 90% the domestic market

Share of consumption by processors 9% 8% 17% 11% 7% 4% 10% (enterprises) in% of the domestic market

Table 21. Stone fruit and fresh berries (HS 0809)

2012 2013 2014 2015 2016 2017 2018 performing index year year year year year year year (fact) (fact) (fact) (fact) (fact) (fact) (forecast)

155 218 204 129 175 168 158 Resources in tons: 909 325 499 636 909 385 571

65 59 64 59 62 63 63 Production 421 661 672 862 633 473 960

90 158 139 69 113 104 94 Import 488 664 827 774 276 912 611

155 218 204 129 175 168 158 Consumption in tons: 909 325 499 636 909 385 571

Consumed in the 155 216 201 124 161 149 133 domestic market 804 850 011 781 261 826 894

Production 57 112 95 11 52 33 9 consumption 067 592 869 103 361 335 758

including Implemented 98 104 105 113 108 116 124 by the population 737 258 142 677 900 492 136

1 3 4 14 18 24 Export 105 475 488 855 648 559 677

Export share of 0,2% 2,5% 5,4% 8,1% 23,4% 29,2% 38,6% production

Import dependence of 58% 73% 70% 56% 70% 70% 71% the domestic market

Share of population consumption in% of 63% 48% 52% 91% 68% 78% 93% the domestic market

Share of consumption by processors 37% 52% 48% 9% 32% 22% 7% (enterprises) in% of the domestic market

Table 22. Grapes (HS 0806) 2012 2013 2014 2015 2016 2017 2018 performing index year year year year year year year (fact) (fact) (fact) (fact) (fact) (fact) (forecast)

165 104 158 205 207 219 232 Resources in tons: 004 546 185 637 338 038 807

71 68 70 63 75 81 92 Production 700 000 300 401 041 223 025

93 36 87 142 132 137 140 Import 304 546 885 236 298 815 783

165 104 158 205 207 219 232 Consumption in tons: 004 546 185 637 338 038 807

Consumed in the 163 102 155 203 195 196 221 domestic market 360 773 961 347 998 376 287

Production 62 52 98 89 88 111 consumption 607 560 231 090 234 149 998

including Implemented 100 102 103 105 106 108 109 by the population 753 213 730 257 764 227 289

1 1 2 2 11 22 11 Export 644 773 224 290 341 662 520

Export share of 2,3% 2,6% 3,2% 3,6% 15,1% 27,9% 12,5% production

Import dependence of 57% 36% 56% 70% 67% 70% 64% the domestic market

Share of population consumption in% of 62% 99% 67% 52% 54% 55% 49% the domestic market

Share of consumption by processors 38% 1% 33% 48% 46% 45% 51% (enterprises) in% of the domestic market

Table 23. Fresh Cut Flowers in the range (HS 0603) 2012 2013 2014 2015 2016 2017 2018 performing index year year year year year year year (fact) (fact) (fact) (fact) (fact) (fact) (forecast)

Resources in 24 27 25 24 29 49 45 thousands of pieces: 726 141 541 486 725 604 391

21 20 21 20 24 44 38 Production 953 176 487 635 760 097 764

2 6 4 3 4 5 6 Import 773 966 054 850 965 507 627

Consumption in 24 27 25 24 29 49 45 thousand pieces: 726 141 541 486 725 604 391

Consumed in the 24 27 25 24 29 49 45 domestic market 726 141 541 486 725 604 391

Implemented by the 24 27 25 24 29 11 11 population 726 141 541 486 725 216 385

1 12 10 4 18 38 34 Export 285 140 207 453 674 388 006

Export share of 5,9% 60,2% 47,5% 21,6% 75,4% 87,1% 87,7% production

Import dependence of 11% 26% 16% 16% 17% 11% 15% the domestic market

Share of population consumption in% of 100% 100% 100% 100% 100% 100% 100% the domestic market

Share of consumption by processors 0% 0% 0% 0% 0% 0% 0% (enterprises) in% of the domestic market

Table 24. Red meat and edible offal (HS 0202,0203,0204,0205,0206) 2012 2013 2014 2015 2016 2017 2018 performing index year year year year year year year (fact) (fact) (fact) (fact) (fact) (fact) (forecast)

1 114 1 117 1 144 1 146 1 160 1 187 1 193 Resources in tons: 616 244 368 209 993 215 009

844 871 900 931 960 991 990 Production 722 012 224 004 687 317 000

249 218 191 187 180 174 167 Import 787 938 389 375 651 168 917

including from CIS 54 57 41 50 51 51 51 countries 881 438 650 944 030 115 201

including from other 194 161 149 136 129 123 117 countries 906 500 739 431 621 151 004

Stocks at the 20 27 52 27 19 21 35 beginning of the year 107 295 755 830 655 730 091

1 114 1 117 1 144 1 146 1 160 1 187 1 214 Consumption in tons: 616 244 368 209 993 215 029

Consumed in the 1 085 1 061 1 107 1 114 1 126 1 139 1 151 domestic market 748 472 621 632 881 264 783

Of the total 847 774 769 884 876 869 862 consumption by type 799 317 612 160 740 381 084 of economic activity:

Implemented by the 237 287 338 230 250 271 294 population 949 155 009 472 141 490 660

1 3 8 11 12 12 13 Export 574 017 916 922 382 859 356

including to CIS 1 3 8 11 12 12 13 countries 574 017 905 801 287 794 321

including to other - - countries of the world 11 121 95 74 58

27 52 27 19 21 35 48 Stocks at end of year 295 755 830 655 730 091 890

Export share of 0,2% 0,3% 1,0% 1,3% 1,3% 1,3% 1,3% production

Import dependence of 23% 21% 17% 17% 16% 15% 15% the domestic market

Share of population consumption in% of 22% 27% 31% 21% 22% 24% 26% the domestic market

Share of consumption by processors 78% 73% 69% 79% 78% 76% 74% (enterprises) in% of the domestic market

Table 25. Poultry and edible offal (HS 0207) 2012 2013 2014 2015 2016 2017 2018 performing index year year year year year year year (fact) (fact) (fact) (fact) (fact) (fact) (forecast)

343 333 343 331 334 346 360 Resources in tons: 621 957 795 103 850 942 881

123 135 134 146 152 159 160 Production 057 796 201 128 715 599 000

203 174 159 161 165 169 173 Import 725 988 557 750 561 461 454

including from CIS 47 46 37 43 43 43 44 countries 216 159 287 246 511 778 046

including from other 156 128 122 118 122 125 129 countries 509 830 270 504 050 702 463

Stocks at the 16 23 50 23 16 17 27 beginning of the year 839 173 037 225 574 881 427

343 333 343 331 334 346 359 Consumption in tons: 621 957 795 103 850 942 470

Consumed in the 319 281 315 306 308 309 311 domestic market 019 281 108 632 190 756 329

Of the total 219 189 129 228 221 215 209 consumption by type 949 404 573 742 963 384 001 of economic activity:

Implemented by the 99 91 185 77 86 95 105 population 070 877 535 891 228 457 674

1 2 5 7 8 9 10 Export 429 639 462 897 779 760 850

including to CIS 1 2 5 7 8 9 10 countries 429 639 462 897 779 760 850

including to other - - - - countries of the world - - -

23 50 23 16 17 27 37 Stocks at end of year 173 037 225 574 881 427 291

Export share of 1,2% 1,9% 4,1% 5,4% 5,7% 6,1% 6,8% production

Import dependence of 64% 62% 51% 53% 54% 55% 56% the domestic market

Share of population consumption in% of 31% 33% 59% 25% 28% 31% 34% the domestic market

Share of consumption by processors 69% 67% 41% 75% 72% 69% 66% (enterprises) in% of the domestic market

Table 26. Prepared and preserved meat, meat by-products or animal blood products 2012 2013 2014 2015 2016 2017 2018 performing index year year year year year year year (fact) (fact) (fact) (fact) (fact) (fact) (forecast)

106 110 113 122 120 107 106 Resources in tons: 441 315 464 134 825 812 711

60 64 68 68 73 73 72 Production 516 635 387 373 319 136 953

40 41 39 37 35 34 33 Import 508 459 395 325 620 676 757

including from CIS 40 40 38 36 35 34 33 countries 100 383 804 961 236 676 757

including from other 1 - countries 408 076 591 365 384 -

Stocks at the 5 4 5 16 11 - beginning of the year 416 221 682 436 886 -

106 110 113 122 120 107 106 Consumption in tons: 441 315 464 134 825 812 711

Consumed in the 101 103 95 108 101 106 105 domestic market 053 817 148 915 736 408 211

Production 56 51 84 76 70 74 72 consumption 434 752 202 164 058 254 575

Implemented by the 44 52 10 32 31 32 32 population 619 066 946 751 678 153 636

1 1 1 1 1 1 Export 167 815 880 333 672 405 500

including to CIS 1 1 1 1 1 1 countries 167 815 880 330 582 405 500

including to other - - - countries of the world 0 3 90 -

4 5 16 11 17 - Stocks at end of year 221 682 436 886 417 -

Export share of 1,9% 1,3% 2,7% 1,9% 2,3% 1,9% 2,1% production

Import dependence of 40% 40% 41% 34% 35% 33% 32% the domestic market

Share of population consumption in% of 44% 50% 12% 30% 31% 30% 31% the domestic market

Share of consumption by processors 56% 50% 88% 70% 69% 70% 69% (enterprises) in% of the domestic market

Table 27. Sausage products (HS 0210) 2012 2013 2014 2015 2016 2017 2018 performing index year year year year year year year (fact) (fact) (fact) (fact) (fact) (fact) (forecast)

77 80 77 75 77 72 73 Resources in tons: 979 351 642 186 547 913 502

39 41 41 40 44 43 44 Production 570 914 965 189 721 352 037

34 36 33 32 29 29 29 560,7 Import 751 074 775 738 657 465

including from CIS 34 35 33 32 29 29 29 countries 410 074 256 424 457 561 465

including from other 1 - countries 341 000 519 313 200 -

Stocks at the 3 2 1 2 3 - beginning of the year 659 363 902 260 170 -

77 80 77 75 77 72 73 Consumption in tons: 979 351 642 186 547 913 502

Consumed in the 75 78 75 71 73 72 73 domestic market 602 411 061 566 307 620 002

Of the total 28 23 22 4 11 10 9 consumption by type 351 769 617 124 876 267 714 of economic activity:

Implemented by the 47 54 52 67 61 62 63 population 251 642 444 442 431 352 287

Export 15 37 321 451 611 293 500

including to CIS countries 15 37 321 448 609 293 500

including to other - - - - countries of the world 3 2 -

2 1 2 3 3 - Stocks at end of year 363 902 260 170 630 -

Export share of 0,0% 0,1% 0,8% 1,1% 1,4% 0,7% 1,1% production

Import dependence of 46% 46% 45% 46% 40% 41% 40% the domestic market

Share of population consumption in% of 62% 70% 70% 94% 84% 86% 87% the domestic market

Share of consumption by processors 38% 30% 30% 6% 16% 14% 13% (enterprises) in% of the domestic market

Table 28. Fish, crustacea and mollyusok processed and preserved (HS 0301-0307) 2012 2013 2014 2015 2016 2017 2018 performing index year year year year year year year (fact) (fact) (fact) (fact) (fact) (fact) (forecast)

96 93 86 89 87 80 82 Resources in tons: 077 624 499 936 504 397 342

32 28 33 34 35 38 42 Production 460 191 185 481 135 499 185

57 55 44 47 43 41 40 Import 078 503 808 648 715 898 157

including from CIS 15 16 16 18 20 19 19 countries 207 627 180 639 821 955 126

including from other 41 38 28 29 22 21 21 countries 870 876 628 009 894 943 031

Stocks at the 6 9 8 7 8 - beginning of the year 540 930 505 807 654 -

96 93 86 89 87 80 82 Consumption in tons: 077 624 499 936 504 397 342

Consumed in the 66 66 59 59 58 58 58 domestic market 043 619 248 740 176 287 288

Of the total 48 46 40 22 25 29 33 consumption by type 154 783 602 656 741 246 229 of economic activity:

Implemented by the 17 19 18 37 32 32 33 population 888 836 646 084 435 922 415

20 18 19 21 22 22 21 Export 105 499 444 542 438 110 786

including to CIS 11 10 9 13 13 13 13 countries 896 014 994 231 495 298 103

including to other 8 8 9 8 8 8 8 countries of the world 209 485 450 311 943 812 683

9 8 7 8 6 - Stocks at end of year 930 505 807 654 890 -

Export share of 61,9% 65,6% 58,6% 62,5% 63,9% 57,4% 51,6% production

Import dependence of 86% 83% 76% 80% 75% 72% 69% the domestic market

Share of population consumption in% of 27% 30% 31% 62% 56% 56% 57% the domestic market

Share of consumption by processors 73% 70% 69% 38% 44% 44% 43% (enterprises) in% of the domestic market

Table 29. Processed and canned vegetables, except potatoes; products and prepared foods from vegetables 2012 2013 2014 2015 2016 2017 2018 performing index year year year year year year year (fact) (fact) (fact) (fact) (fact) (fact) (forecast)

108 100 104 94 86 82 87 Resources in tons: 861 478 868 857 684 246 534

17 16 17 18 21 24 27 Production 807 521 879 039 074 221 838

75 68 71 61 56 58 59 Import 149 925 350 362 400 025 696

including from CIS 18 15 22 19 24 25 25 countries 200 356 050 060 507 213 939

including from other 56 53 49 42 31 32 33 countries 950 569 300 302 893 812 757

Stocks at the 15 15 15 15 9 - beginning of the year 905 032 639 456 210 -

108 100 104 94 86 82 87 Consumption in tons: 861 478 868 857 684 246 534

Consumed in the 91 83 86 84 74 82 87 domestic market 705 858 836 552 621 246 534

Production 75 69 70 55 42 47 51 consumption 940 172 979 990 412 543 504

Implemented by the 15 14 15 28 32 32 33 population 764 686 856 562 209 692 182

2 2 1 1 2 2 Export 125 981 576 095 420 011 848

including to CIS 2 2 1 1 2 3 countries 078 869 535 038 286 011 145

including to other - countries of the world 47 113 41 57 134 -

15 15 15 9 10 - Stocks at end of year 032 639 456 210 643 -

Export share of 11,9% 5,9% 14,4% 6,1% 6,7% 8,3% 10,2% production

Import dependence of 82% 82% 82% 73% 76% 71% 68% the domestic market

Share of population consumption in% of 17% 18% 18% 34% 43% 40% 38% the domestic market

Share of consumption by processors 83% 82% 82% 66% 57% 60% 62% (enterprises) in% of the domestic market

Table 30. Potatoes and vegetables are processed (HS 0710-7013,2001-2005) 2012 2013 2014 2015 2016 2017 2018 performing index year year year year year year year (fact) (fact) (fact) (fact) (fact) (fact) (forecast)

9 11 13 13 14 15 16 Resources in tons: 722 766 251 250 529 242 697

Production 501 449 482 528 627 745 884

8 10 11 12 13 14 15 Import 699 812 753 187 292 498 813

including from CIS 4 6 6 6 6 7 8 countries 663 302 149 060 669 340 078

including from other 4 4 5 6 6 7 7 countries 035 510 604 127 623 159 738

Stocks at the 1 beginning of the year 523 505 016 536 610 694 791

9 11 13 13 14 15 15 Consumption in tons: 722 766 251 250 529 242 990

Consumed in the 9 10 12 12 14 15 15 domestic market 195 722 616 597 406 098 822

Production 6 10 12 11 13 13 15 consumption 720 156 046 458 748 942 154

Implemented by the 2 1 1 population 475 566 571 139 658 156 668

Export 22 29 99 43 79 144 264

including to CIS countries 22 28 99 43 79 144 264

including to other - - countries of the world 0 0 0 - -

1 - Stocks at end of year 505 016 536 610 44 -

Export share of 4,5% 6,3% 20,5% 8,2% 12,6% 19,4% 29,9% production

Import dependence of 95% 101% 93% 97% 92% 96% 100% the domestic market

Share of population consumption in% of 27% 5% 5% 9% 5% 8% 4% the domestic market

The share of consumption of fast food and catering in% 73% 95% 95% 91% 95% 92% 96% of the domestic market

Table 31. Fruits, berries, nuts, processed and preserved, including juices and juice concentrates and purees (HS 0810-0813, 2006-2009) 2012 2013 2014 2015 2016 2017 2018 performing index year year year year year year year (fact) (fact) (fact) (fact) (fact) (fact) (forecast)

154 162 151 167 150 145 142 Resources in tons: 719 887 530 784 459 756 350

2 2 1 3 3 3 3 Production 379 542 074 651 850 153 000

151 159 146 158 145 142 139 Import 266 023 202 670 932 603 350

including from CIS 136 138 118 133 117 114 112 countries 332 227 240 234 304 628 013

including from other 14 20 27 25 28 27 27 countries 934 796 962 436 628 975 337

Stocks at the 1 1 4 5 - beginning of the year 074 322 255 463 678 -

154 162 151 167 150 145 142 Consumption in tons: 719 887 530 784 459 756 350

Consumed in the 123 130 123 151 141 140 136 domestic market 295 106 660 964 565 116 709

Production 102 107 93 132 126 109 105 consumption 682 413 364 845 398 820 958

Implemented by the 20 22 30 19 15 30 30 population 613 692 296 119 167 296 751

30 28 22 15 8 5 5 Export 102 527 408 143 529 640 641

including to CIS 30 28 22 15 8 5 5 countries 097 523 391 042 306 640 641

including to other - countries of the world 5 4 17 101 224 -

1 4 5 - Stocks at end of year 322 255 463 678 365 -

Re-export share from 19,9% 17,9% 15,3% 9,5% 5,8% 4,0% 4,0% import

Import dependence of 123% 122% 118% 104% 103% 102% 102% the domestic market

Share of population consumption in% of 17% 17% 24% 13% 11% 22% 22% the domestic market

Share of consumption by processors 83% 83% 76% 87% 89% 78% 78% (enterprises) in% of the domestic market

Table 32. Vegetable oil of all types, except for sunflower (HS 1508-1510) 2012 2013 2014 2015 2016 2017 2018 performing index year year year year year year year (fact) (fact) (fact) (fact) (fact) (fact) (forecast)

439 450 508 518 544 552 564 Resources in tons: 381 646 894 534 508 991 355

292 280 329 290 312 336 361 Production 604 820 394 284 334 059 586

94 116 118 166 161 157 155 Import 657 756 767 441 391 716 667

including from CIS 82 103 104 155 147 139 131 countries 964 624 154 475 218 400 997

including from other 11 13 14 10 14 18 23 countries 693 131 613 967 173 316 670

Stocks at the 52 53 60 61 70 59 47 beginning of the year 120 071 733 809 783 216 101

439 450 508 518 544 552 564 Consumption in tons: 381 646 894 534 508 991 355

Consumed in the 351 356 398 404 430 471 423 domestic market 065 117 694 083 714 450 886

Production 208 193 232 128 213 210 207 consumption 735 446 378 226 994 832 716

Implemented by the 142 162 166 275 216 213 210 population 330 671 316 857 719 517 361

35 33 48 43 54 81 140 Export 246 796 390 669 578 541 469

including to CIS 33 31 37 29 25 21 18 countries 846 836 988 152 069 558 539

including to other 1 1 10 14 29 59 121 countries of the world 400 961 403 517 509 983 930

53 60 61 70 59 47 5 Stocks at end of year 071 733 809 783 216 101 809

Export share of 12,0% 12,0% 14,7% 15,0% 17,5% 17,6% 16,3% production

Import dependence of 27% 33% 30% 41% 37% 24% 21% the domestic market

Share of population consumption in% of 41% 46% 42% 68% 50% 61% 58% the domestic market

Share of consumption by processors 59% 54% 58% 32% 50% 39% 42% (enterprises) in% of the domestic market

Table 33. Sunflower oil (HS 1512) 2012 2013 2014 2015 2016 2017 2018 performing index year year year year year year year (fact) (fact) (fact) (fact) (fact) (fact) (forecast)

334 303 353 371 380 406 436 Resources in tons: 391 430 188 729 091 685 069

223 206 236 225 230 259 306 Production 536 043 469 781 141 521 916

70 61 69 104 96 87 79 Import 799 094 685 693 763 948 153

including from CIS 70 60 69 104 96 80 72 countries 776 983 675 682 748 225 202

including from other 7 6 countries 23 112 10 11 15 723 951

Stocks at the 40 36 47 41 53 59 50 beginning of the year 056 293 034 256 187 216 000

334 303 353 371 380 406 436 Consumption in tons: 391 430 188 729 091 685 069

Consumed in the 282 249 294 300 315 360 386 domestic market 049 208 904 442 667 931 069

Of the total 151 83 182 121 162 90 112 consumption by type 050 447 360 203 324 961 798 of economic activity:

Implemented by the 131 165 112 179 153 219 223 population 000 760 543 239 343 970 270

16 7 17 18 21 45 50 Export 048 189 029 101 084 755 000

including to CIS 14 5 14 11 10 21 22 countries 648 465 420 136 005 016 966

including to other 1 1 2 6 11 24 27 countries of the world 400 724 609 965 079 738 034

36 47 41 53 43 50 50 Stocks at end of year 293 034 256 187 340 000 001

Export share of 7,2% 3,5% 7,2% 8,0% 9,2% 17,6% 16,3% production

Import dependence of 25% 25% 24% 35% 31% 24% 21% the domestic market

Share of population consumption in% of 46% 67% 38% 60% 49% 61% 58% the domestic market

Share of consumption by processors 54% 33% 62% 40% 51% 39% 42% (enterprises) in% of the domestic market

Table 34. Margarine and spreads, vegetable fats (HS 1511-1517) 2012 2013 2014 2015 2016 2017 2018 performing index year year year year year year year (fact) (fact) (fact) (fact) (fact) (fact) (forecast)

92 99 98 99 103 106 102 Resources in tons: 980 500 394 719 121 915 292

52 56 57 57 64 64 68 Production 795 681 999 772 921 779 018

27 27 29 29 26 34 29 Import 326 959 674 194 959 532 274

including from CIS 23 26 27 27 25 32 27 countries 443 108 653 370 644 847 845

including from other 3 1 2 1 1 1 1 countries 883 850 021 824 316 685 429

Stocks at the 12 14 10 12 11 7 5 beginning of the year 859 860 721 753 241 604 000

92 99 98 99 103 106 102 Consumption in tons: 980 500 394 719 121 915 292

Consumed in the 71 81 78 81 82 88 77 domestic market 053 593 813 602 319 933 794

Production 46 57 61 61 65 65 52 consumption 955 721 481 163 084 837 793

Implemented by the 24 23 17 20 17 18 19 population 098 872 332 439 234 096 001

7 7 6 6 13 17 24 Export 067 186 828 877 199 982 498

including to CIS 7 7 6 6 13 17 24 countries 067 186 805 726 105 853 323

including to other - - countries of the world 22 150 94 128 175

14 10 12 11 7 5 6 Stocks at end of year 860 721 753 241 604 000 000

Export share of 13,4% 12,7% 11,8% 11,9% 20,3% 27,8% 36,0% production

Import dependence of 38% 34% 38% 36% 33% 39% 38% the domestic market

Share of population consumption in% of 34% 29% 22% 25% 21% 20% 24% the domestic market

Share of consumption by processors 66% 71% 78% 75% 79% 80% 76% (enterprises) in% of the domestic market

Table 35. Dairy products except butter, cottage cheese and cheese (HS 0401-0404) 2012 2013 2014 2015 2016 2017 2018 performing index year year year year year year year (fact) (fact) (fact) (fact) (fact) (fact) (forecast)

845 918 1 060 1 013 985 957 905 Resources in tons: 627 604 007 383 920 301 760

586 686 725 712 729 744 758 Production 427 937 198 595 418 056 988

164 172 176 155 151 141 140 Import 725 813 446 725 728 911 000

including from CIS 147 155 159 140 132 124 122 countries 754 523 354 298 601 022 351

including from other 16 17 17 15 19 17 17 countries 971 290 092 427 127 890 649

Stocks at the 94 58 158 145 104 71 6 beginning of the year 475 854 363 063 774 334 773

845 918 1 060 1 013 985 957 905 Consumption in tons: 627 604 007 383 920 301 760

Consumed in the 782 736 884 891 894 921 870 domestic market 058 261 822 205 935 237 000

Production 487 353 632 580 629 620 570 consumption 398 606 270 623 198 000 000

Implemented by the 294 382 252 310 265 301 300 population 660 656 552 581 736 237 000

4 23 30 17 19 29 35 Export 715 981 121 405 651 291 000

including to CIS 4 23 29 17 19 29 35 countries 715 976 960 380 568 291 000

including to other - - countries of the world 4 161 25 83 -

58 158 145 104 71 6 Stocks at end of year 854 363 063 774 334 773 760

Export share of 0,8% 3,5% 4,2% 2,4% 2,7% 3,9% 4,6% production

Import dependence of 21% 23% 20% 17% 17% 15% 16% the domestic market

Share on the domestic 38% 52% 29% 35% 30% 33% 34% market

Share of consumption by processors 62% 48% 71% 65% 70% 67% 66% (enterprises) in% of the domestic market

Table 36. Butter (HS 0405) 2012 2013 2014 2015 2016 2017 2018 performing index year year year year year year year (fact) (fact) (fact) (fact) (fact) (fact) (forecast)

28 64 32 30 27 26 26 Resources in tons: 005 359 140 293 399 476 619

12 14 18 16 15 16 18 Production 245 075 794 564 600 840 000

8 8 10 7 8 6 6 Import 135 822 377 574 869 316 000

including from CIS 6 6 7 5 6 4 4 countries 614 130 988 541 010 280 066

including from other 1 2 2 2 2 2 1 countries 521 692 390 033 859 036 934

Stocks at the 5 2 2 6 2 3 2 beginning of the year 876 826 969 156 930 321 619

28 64 32 30 27 26 26 Consumption in tons: 005 359 140 293 399 476 619

Consumed in the 25 61 25 24 23 23 25 domestic market 151 141 877 244 704 857 853

Of the total 19 1 1 6 5 6 consumption by type 875 318 269 166 657 857 853 of economic activity:

Implemented by the 24 41 24 23 17 18 19 population 277 823 608 078 047 000 000

3 342,1 Export 28 249 108 120 374 350

including to CIS 3 countries 28 249 106 110 374 342 350

including to other - - - countries of the world 1 9 0 -

2 2 6 2 3 2 Stocks at end of year 826 969 156 930 321 619 766

Export share of 0,2% 1,8% 0,6% 18,8% 2,4% 2,0% 1,9% production

Import dependence of 32% 14% 40% 31% 37% 26% 23% the domestic market

Share of population consumption in% of 97% 68% 95% 95% 72% 75% 73% the domestic market

Share of consumption by processors 3% 32% 5% 5% 28% 25% 27% (enterprises) in% of the domestic market

Table 37. Cheeses and curds (HS 0406) 2012 2013 2014 2015 2016 2017 2018 performing index year year year year year year year (fact) (fact) (fact) (fact) (fact) (fact) (forecast)

47 50 52 59 52 59 71 Resources in tons: 326 072 027 260 142 943 476

19 22 22 30 24 24 25 Production 177 120 211 104 218 904 609

22 22 22 21 20 28 38 Import 451 612 328 203 774 153 153

including from CIS 20 20 20 18 17 23 32 countries 355 549 015 564 672 950 457

including from other 2 2 2 2 3 4 5 countries 096 063 313 639 102 203 696

Stocks at the 5 5 7 7 7 6 7 beginning of the year 697 340 488 953 150 886 713

47 50 52 59 52 59 71 Consumption in tons: 326 072 027 260 142 943 476

Consumed in the 41 42 43 50 43 52 63 domestic market 254 034 372 359 586 230 484

Of the total 12 14 15 20 10 15 22 consumption by type 151 932 349 236 163 000 138 of economic activity:

Implemented by the 29 27 28 30 33 37 41 population 104 103 023 123 423 084 146

1 1 Export 731 549 703 750 670 147 200

including to CIS 1 1 countries 731 549 703 750 654 147 200

including to other - - - - countries of the world - 16 -

5 7 7 7 6 7 7 Stocks at end of year 340 488 953 150 886 713 992

Export share of 3,8% 2,5% 3,2% 5,8% 6,9% 0,6% 0,8% production

Import dependence of 54% 54% 51% 42% 48% 54% 60% the domestic market

Share of population consumption in% of 71% 64% 65% 60% 77% 71% 65% the domestic market

Share of consumption by processors 29% 36% 35% 40% 23% 29% 35% (enterprises) in% of the domestic market

Table 38. Wheat flour (TN VED 0101) 2012 2013 2014 2015 2016 2017 2018 performing index year year year year year year year (fact) (fact) (fact) (fact) (fact) (fact) (forecast)

3 935 3 550 3 479 3 618 3 826 3 983 4 135 Resources in tons: 300 900 000 700 800 074 625

3 688 3 493 3 423 3 404 3 658 3 819 3 986 Production 100 100 900 300 500 123 798

3 2 5 9 3 4 5 Import 900 900 600 700 600 251 000

including from CIS 3 2 5 9 3 4 5 countries 800 800 600 600 500 251 000

including from other - countries 100 100 100 100 100 -

Stocks at the 243 55 49 204 164 159 143 beginning of the year 300 000 400 600 600 700 827

3 935 3 550 3 479 3 618 3 826 3 983 4 135 Consumption in tons: 300 900 000 700 800 074 625

Consumed in the 1 661 1 625 1 429 1 630 1 270 1 523 1 495 domestic market 000 300 100 900 200 320 784

Of the total 1 246 1 190 905 1 164 754 1 052 1 013 consumption by type 700 500 100 000 300 120 204 of economic activity:

Implemented by the 414 434 524 467 515 471 482 population 300 700 100 000 900 200 580

2 219 1 876 1 845 1 823 2 396 2 315 2 500 Export 300 300 200 100 900 926 000

including to CIS 1 703 1 447 1 203 1 038 915 884 955 countries 600 700 800 300 700 765 088

including to other 515 428 641 784 1 481 1 431 1 544 countries of the world 700 600 500 800 200 161 912

55 49 204 164 159 143 139 Stocks at end of year 000 400 600 600 700 827 841

Export share of 60,2% 53,7% 53,9% 53,6% 65,5% 60,6% 62,7% production

Import dependence of 0% 0% 0% 1% 0% 0% 0% the domestic market

Share of population consumption in% of 25% 27% 37% 29% 41% 31% 32% the domestic market

Share of consumption by processors 75% 73% 63% 71% 59% 69% 68% (enterprises) in% of the domestic market

Table 39. Cereals other than rice husked 2012 2013 2014 2015 2016 2017 2018 performing index year year year year year year year (fact) (fact) (fact) (fact) (fact) (fact) (forecast)

298 329 297 288 273 269 261 Resources in tons: 047 292 575 246 558 201 241

151 190 208 212 227 244 245 Production 650 993 158 261 952 803 000

34 26 34 32 15 7 3 Import 178 872 686 837 771 574 638

Stocks at the 112 111 54 43 29 16 12 beginning of the year 219 426 731 148 836 824 603

298 329 297 288 273 269 264 Consumption in tons: 047 292 575 246 558 201 914

Consumed in the 136 215 196 186 176 166 157 domestic market 959 123 296 587 473 906 858

Of the total 74 127 70 10 95 901 8 523 consumption by type 359 248 479 072 267 131 835 of economic activity:

Implemented by the 62 87 125 176 81 37 17 population 600 875 818 516 206 359 187

49 59 58 71 80 89 100 Export 662 438 130 823 262 692 230

111 54 43 29 16 12 6 Stocks at end of year 426 731 148 836 824 603 825

Export share of 32,7% 31,1% 27,9% 33,8% 35,2% 36,6% 40,9% production

Import dependence of 25% 12% 18% 18% 9% 5% 2% the domestic market

Share of population consumption in% of 46% 41% 64% 95% 46% 22% 11% the domestic market

Share of consumption by processors 54% 59% 36% 5% 54% 78% 89% (enterprises) in% of the domestic market

Table 40. Husked rice and polished 2012 2013 2014 2015 2016 2017 2018 performing index year year year year year year year (fact) (fact) (fact) (fact) (fact) (fact) (forecast)

245 249 235 230 195 195 190 Resources in tons: 191 730 469 260 236 462 141

113 144 150 164 173 183 185 Production 955 054 528 545 927 844 000

25 17 24 21 9 3 1 Import 046 030 208 881 137 815 593

49 50 49 27 1 - Other admission 421 246 685 278 - 000

Stocks at the 56 38 11 16 12 7 2 beginning of the year 769 400 048 556 172 803 548

245 249 235 230 195 195 190 Consumption in tons: 191 730 469 260 236 462 141

Consumed in the 160 185 167 152 118 170 170 domestic market 718 262 484 424 182 000 000

Implemented by the 109 136 145 138 59 120 140 population 570 008 899 785 538 000 000

46 53 51 65 69 72 76 Export 072 420 429 664 252 914 771

38 11 16 12 7 2 Stocks at end of year 400 048 556 172 803 548 832

Export share of 40,4% 37,1% 34,2% 39,9% 39,8% 39,7% 41,5% production

Import dependence of 16% 9% 14% 14% 8% 2% 1% the domestic market

Share of population consumption in% of 68% 73% 87% 91% 50% 71% 82% the domestic market

Share of consumption by processors 32% 27% 13% 9% 50% 29% 18% (enterprises) in% of the domestic market

1. LOCAL PRODUCTION

Table 41. Production of fruits and vegetables in 2017 in closed ground The area of Region including: including by crops: Total crop per year, centners closed ground in share all flowers flowers the regions of by large medium (thousand (thousan growing small cucumber cucumber tomatoe the Republic of growin companie companie tomatoes flowers pieces, d pieces, area sq.m farmers s s s Kazakhstan, in g area s s horticulture open sq.m. % ) field)

The Republic of 100,0 11 195 3 724 6 281 214 2 193 975 5 276 691 4 676 266 741 024 993 311 17 816 6 519 Kazakhstan % 096 431 540 553

Akmola 0,4% 41 057 40 597 460 - 18 320 - - 15 816 4 218 4 353 1 760

Aktobe 1,6% 178 708 157 448 21 260 - 104 808 - 73 900 36 977 20 380 - -

Almaty 6,7% 749 943 316 550 426 513 6 880 326 961 422 981 - 84 290 181 587 4 963 849

Atyrau 1,1% 126 279 11 958 114 321 - 101 309 24 970 - 16 730 3 533 - -

West Kazakhstan 0,2% 19 238 737 18 501 - 18 573 665 - 3 873 15 - -

Zhambylskaya 2,6% 289 874 62 100 227 774 - 233 016 56 859 - 22 739 3 334 - -

Karaganda 2,2% 242 692 206 950 35 742 - 111 210 123 070 8 412 36 917 17 529 244 3 186

Kostanay 0,0% 5 200 5 200 - - 5 200 - - 393 - - -

Kyzylorda 0,2% 20 678 - 16 875 3 803 12 118 8 560 - 1 346 392 - -

Mangystau 2,8% 317 202 92 881 224 321 - 273 689 43 513 - 32 992 900 - -

South 3 712 5 421 Kazakhstan 78,8% 8 816 803 925 531 4 178 925 347 3 313 780 609 81 414 415 697 725 057 1 978 7

Pavlodar 1,1% 127 272 115 272 12 000 - 40 272 40 023 46 977 20 118 2 303 6 214 45

North Kazakhstan 0,3% 30 000 30 000 - - 4 500 25 500 - 1 548 1 438 - -

East Kazakhstan 0,9% 96 000 96 000 - - 48 000 48 000 - 8 704 2 489 - -

Astana 0,3% 28 101 26 700 - 1 401 14 011 14 090 - 2 680 3 219 - -

Almaty city 0,9% 106 050 106 050 - - 50 500 51 700 3 850 40 205 26 919 64 671

Total area of greenhouse 15,8 15,8 83 in hectares (growing area) 1 120 219 528 372 468 628 21

Table 42. Production of fruits and vegetables in 2017 on open ground Region including: including: all growing Total Apples, hectares in fruiting share by area crops in age growing large medium small large medium small hectares centners area % companies companies farmers companies companies farmers

The Republic of Kazakhstan 100,0% 32 955,4 6 909,6 18 468,8 7 577,0 1 810 569 112 260 1 065 961 632 348

Akmola 0,6% 200,7 8,0 0,0 192,7 13 492 10 0 13 482

Aktobe 0,2% 59,9 0,5 1,0 58,4 11 327 0 0 11 327

Almaty 39,8% 13 113,2 3 188,9 7 194,0 2 730,4 746 301 79 777 457 474 209 051

Atyrau 0,8% 266,8 163,3 93,0 10,5 1 072 99 487 487

West Kazakhstan 1,0% 316,5 148,0 44,7 123,8 7 674 0 130 7 544

Zhambylskaya 7,8% 2 567,1 180,0 1 833,5 553,6 197 732 4 608 135 198 57 926

Karaganda 0,3% 103,4 0,0 0,5 102,9 8 019 0 0 8 019

Kostanay 0,7% 241,3 40,0 37,3 164,0 10 893 5 0 10 887

100

Kyzylorda 0,7% 239,2 5,0 133,2 101,0 7 014 0 937 6 077

Mangystau 0,1% 24,7 0,0 24,6 0,0 254 0 254 0

South Kazakhstan 45,1% 14 871,9 3 154,2 8 893,7 2 824,0 687 354 27 762 464 882 194 710

Pavlodar 0,1% 20,9 0,0 0,0 20,9 5 687 0 0 5 687

North Kazakhstan 0,6% 189,3 0,0 0,0 189,3 45 210 0 0 45 210

East Kazakhstan 1,7% 561,2 0,0 213,3 347,9 60 311 0 6 600 53 711

Astana 0,0% 5,1 0,0 - 5,1 578 0 0 578

Almaty city 0,5% 174,3 21,7 0,0 152,6 7 651 0 0 7 651

Region including: including: all growing Total Pears, hectares in fruitful share by area crops in age growing large medium small large medium small hectares centners area % companies companies farmers companies companies farmers

The Republic of Kazakhstan 100,00% 1 921,7 131,8 819,5 970,4 142 306,5 735,9 61 957,2 79 613,4

Akmola 0,66% 12,8 0 0 12,8 747 0 0 747

Aktobe 0,10% 1,9 0,0 0,0 1,9 338,8 0,0 0,0 338,8

Almaty 50,34% 967,4 33,8 560,0 373,7 74 161,6 506,6 44 721,9 28 933,1

Atyrau 0,09% 1,8 0,0 0,0 1,8 85,0 0,0 0,0 85,0

West Kazakhstan 1,11% 21,3 0,0 0,6 20,7 1 108,5 0,0 0,0 1 108,5

Zhambylskaya 15,20% 292,0 4,0 162,4 125,6 23 184,8 50,0 10 826,6 12 308,2

Karaganda 0,57% 11,0 0,0 0,0 11,0 910,4 0,0 0,0 910,4

Kostanay 1,35% 25,9 3,0 2,1 20,8 1 909,5 4,9 0,0 1 904,6

Kyzylorda 0,68% 13,0 0,0 0,0 13,0 677,6 0,0 0,0 677,6

101

Mangystau 0,11% 2,0 0,0 1,9 0,1 3,8 0,0 1,0 2,8

South Kazakhstan 23,01% 442,1 91,0 92,5 258,6 23 293,7 174,4 6 407,8 16 711,5

Pavlodar 0,17% 3,2 0,0 0,0 3,2 975,1 0,0 0,0 975,1

North Kazakhstan 1,89% 36,3 0,0 0,0 36,3 7 523,8 0,0 0,0 7 523,8

East Kazakhstan 0,73% 14,0 0,0 0,0 14,0 2 917,9 0,0 0,0 2 917,9

Astana 0,25% 4,7 0,0 0,0 4,7 527,1 0,0 0,0 527,1

Almaty city 3,76% 72,2 0,0 0,0 72,2 3 941,6 0,0 0,0 3 941,6

Region including: including: all growing Total Apricots, hectares in fertile share by area crops in age growing large medium small large medium small hectares centners area % companies companies farmers companies companies farmers

The Republic of Kazakhstan 100,00% 3 262,9 598,2 1 356,4 1 308,4 171 071,2 5 344,3 72 249,0 93 477,9

Almaty 59,6% 1 944,2 469,5 1 062,3 412,5 97 539,5 2 195,8 57 065,0 38 278,7

Atyrau 0,4% 13,0 0,3 1,9 10,8 444,2 0,0 50,2 394,0

West Kazakhstan 0,9% 29,1 0,0 0,0 29,1 1 438,7 0,0 0,0 1 438,7

Zhambylskaya 3,5% 113,8 0,0 11,2 102,6 9 740,7 0,0 609,8 9 131,0

Karaganda 0,2% 6,7 0,0 0,0 6,7 610,6 0,0 0,0 610,6

Kostanay 0,0% 0,1 0,0 0,1 0,0 3 111,1 0,0 521,9 2 589,2

Kyzylorda 3,0% 99,0 0,5 25,7 72,8 220,5 0,0 213,0 7,5

Mangystau 0,7% 21,3 0,0 21,1 0,3 56 988,7 3 148,5 13 789,1 40 051,1

South Kazakhstan 31,7% 1 035,7 127,9 234,1 673,7 977,2 0,0 0,0 977,2

including: including:

102

Region all growing Total Cherry, hectares in fertile share by large medium small large medium small area crops in age growing companies companies farmers companies companies farmers hectares centners area %

The Republic of Kazakhstan 100,00% 1 338,8 52,4 31,3 1 255,0 108 619,8 11,2 1 157,5 107 451,1

Akmola 3,2% 42,8 1,0 0,0 41,8 2 820,0 4,0 0,0 2 816,0

Aktobe 1,6% 21,6 0,0 0,0 21,6 3 500,4 0,0 0,0 3 500,4

Almaty 15,2% 203,0 23,1 10,0 169,9 14 526,4 0,0 508,9 14 017,6

Atyrau 0,5% 6,8 0,0 1,9 4,9 253,9 0,0 50,0 203,9

West Kazakhstan 7,7% 102,6 0,0 5,0 97,6 6 052,5 0,0 0,0 6 052,5

Zhambylskaya 8,2% 109,1 0,0 0,0 109,1 9 211,9 0,0 0,0 9 211,9

Karaganda 7,1% 95,4 0,0 0,0 95,4 6 020,4 0,0 0,0 6 020,4

Kostanay 7,3% 97,5 16,0 0,1 81,4 6 353,3 7,2 0,0 6 346,1

Kyzylorda 3,3% 44,0 0,3 2,0 41,7 2 208,0 0,0 5,0 2 203,0

Mangystau 0,0% 0,1 0,0 0,0 0,1 2,9 0,0 0,0 2,9

South Kazakhstan 29,5% 394,7 12,0 12,3 370,4 24 191,3 0,0 593,6 23 597,7

Pavlodar 1,6% 21,1 0,0 0,0 21,1 3 500,6 0,0 0,0 3 500,6

North Kazakhstan 7,4% 99,4 0,0 0,0 99,4 17 042,8 0,0 0,0 17 042,8

East Kazakhstan 6,5% 87,3 0,0 0,0 87,3 12 281,0 0,0 0,0 12 281,0

Astana 0,1% 1,0 0,0 0,0 1,0 73,7 0,0 0,0 73,7

Almaty city 0,9% 12,4 0,0 0,0 12,4 580,8 0,0 0,0 580,8

including: including:

103

Region all growing Total Plum, hectares in fruiting share by large medium small large medium small area crops in age growing companies companies farmers companies companies farmers hectares centners area %

The Republic of Kazakhstan 100% 1 344,7 451,4 281,4 611,9 67 011,1 2 807,4 15 690,4 48 513,3

Akmola 0,5% 6,8 1,0 0,0 5,8 381,0 1,0 0,0 380,0

Aktobe 1,2% 15,5 0,0 0,0 15,5 1 900,8 0,0 0,0 1 900,8

Almaty 17,2% 231,8 92,9 10,0 128,9 8 624,3 131,5 499,2 7 993,6

Atyrau 0,4% 5,4 0,0 0,0 5,4 410,0 0,0 0,0 410,0

West Kazakhstan 4,4% 59,1 0,0 0,0 59,1 3 259,7 0,0 0,0 3 259,7

Zhambylskaya 8,8% 119,0 0,0 45,6 73,4 10 551,7 0,0 3 501,9 7 049,8

Karaganda 0,8% 11,1 0,0 0,0 11,1 1 044,6 0,0 0,0 1 044,6

Kostanay 1,1% 14,6 4,0 0,1 10,5 587,9 2,8 0,0 585,1

Kyzylorda 1,4% 18,6 0,0 0,0 18,6 1 094,6 0,0 0,0 1 094,6

Mangystau 0,1% 0,9 0,0 0,8 0,0 0,5 0,0 0,0 0,5

South Kazakhstan 55,9% 752,3 353,5 224,9 173,9 25 875,0 2 672,1 11 689,3 11 513,6

Pavlodar 0,6% 8,5 0,0 0,0 8,5 1 379,8 0,0 0,0 1 379,8

North Kazakhstan 1,0% 13,6 0,0 0,0 13,6 2 696,5 0,0 0,0 2 696,5

East Kazakhstan 4,1% 55,3 0,0 0,0 55,3 7 826,6 0,0 0,0 7 826,6

Astana 0,1% 0,8 0,0 0,0 0,8 76,5 0,0 0,0 76,5

Almaty city 2,3% 31,5 0,0 0,0 31,5 1 301,7 0,0 0,0 1 301,7

including: including:

104

Region all growing Total Strawberry, hectares in share by large medium small large medium small area crops in fruiting age growing companies companies farmers companies companies farmers hectares centners area %

The Republic of Kazakhstan 100% 977,6 11,7 293,1 672,8 62 338,4 211,2 5 161,5 56 965,8

Akmola 3,2% 31,4 1,0 0,0 30,4 1 961,4 1,0 0,0 1 960,4

Aktobe 5,4% 52,9 0,0 0,0 52,9 6 863,7 0,0 0,0 6 863,7

Almaty 13,2% 128,7 0,2 42,1 86,4 7 424,9 4,0 2 323,3 5 097,7

Atyrau 1,3% 12,3 0,0 3,1 9,2 90,0 0,0 80,0 10,0

West Kazakhstan 7,0% 68,3 0,0 0,0 68,3 2 727,1 0,0 0,0 2 727,1

Zhambylskaya 5,2% 50,5 0,0 0,0 50,5 4 324,7 0,0 0,0 4 324,7

Karaganda 32,1% 314,2 0,0 200,0 114,2 5 783,3 0,0 0,0 5 783,3

Kostanay 6,3% 62,0 0,0 0,0 62,0 3 890,3 0,0 0,0 3 890,3

Kyzylorda 0,2% 1,9 0,0 0,0 1,9 176,8 0,0 0,0 176,8

Mangystau 0,0% 0,0 0,0 0,0 0,0 5,0 0,0 5,0 0,0

South Kazakhstan 8,3% 81,6 10,0 46,6 25,0 4 922,1 206,0 2 688,2 2 027,9

Pavlodar 2,2% 21,0 0,0 0,5 20,5 2 835,6 0,0 50,0 2 785,6

North Kazakhstan 4,6% 44,9 0,0 0,0 44,9 6 615,9 0,0 0,0 6 615,9

East Kazakhstan 10,3% 101,2 0,5 0,8 99,9 14 312,7 0,2 15,0 14 297,5

Astana 0,2% 1,5 0,0 0,0 1,5 161,1 0,0 0,0 161,1

Almaty city 0,5% 5,3 0,0 0,0 5,3 243,8 0,0 0,0 243,8

Raspberry, hectares including: including:

105

Region all growing Total share by large medium small large medium small area crops in growing companies companies farmers companies companies farmers hectares centners area %

The Republic of Kazakhstan 100% 1 248,9 136,0 108,4 1 004,5 88 946,2 365,5 3 174,7 85 406,0

Akmola 12,1% 151,2 0,0 0,0 151,2 9 314,3 0,0 0,0 9 314,3

Aktobe 7,3% 91,0 25,3 4,0 61,7 8 368,9 350,0 10,0 8 008,9

Almaty 27,9% 348,0 97,1 91,3 159,6 10 425,4 15,0 1 871,5 8 538,9

Atyrau 0,0% 0,5 0,0 0,0 0,5 4,5 0,0 0,0 4,5

West Kazakhstan 3,7% 46,6 0,0 0,0 46,6 2 010,0 0,0 0,0 2 010,0

Zhambylskaya 3,8% 47,4 0,0 0,0 47,4 4 069,1 0,0 0,0 4 069,1

Karaganda 9,2% 114,3 0,0 0,0 114,3 6 319,8 0,0 0,0 6 319,8

Kostanay 5,8% 72,1 8,0 0,0 64,1 4 881,1 0,0 0,0 4 881,1

Kyzylorda 0,1% 1,3 0,0 0,0 1,3 108,1 0,0 0,0 108,1

Mangystau 0,0% 0,0 0,0 0,0 0,0 0,1 0,0 0,0 0,1

South Kazakhstan 5,1% 63,9 5,0 12,8 46,1 3 989,4 0,0 1 290,2 2 699,2

Pavlodar 3,0% 37,7 0,0 0,0 37,7 5 105,4 0,0 0,0 5 105,4

North Kazakhstan 8,1% 101,0 0,0 0,0 101,0 16 679,2 0,0 0,0 16 679,2

East Kazakhstan 10,3% 128,6 0,6 0,3 127,7 15 338,3 0,5 3,0 15 334,8

Astana 0,2% 2,0 0,0 0,0 2,0 265,3 0,0 0,0 265,3

Almaty city 3,5% 43,5 0,0 0,0 43,5 2 067,3 0,0 0,0 2 067,3

Currants, hectares including: including:

106

Region all growing Total share by large medium small large medium small area crops in growing companies companies farmers companies companies farmers hectares centners area %

The Republic of Kazakhstan 100% 469,4 28,6 11,5 429,3 40 949,5 9,1 225,4 40 715,0

Akmola 12,3% 57,7 0,0 0,0 57,7 3578,8 0,0 0,0 3578,8

Aktobe 2,2% 10,2 0,0 0,0 10,2 1441,4 0,0 0,0 1441,4

Almaty 14,0% 65,5 14,3 11,4 39,8 2813,6 6,1 223,4 2584,1

West Kazakhstan 5,3% 25,1 0,0 0,0 25,1 985,5 0,0 0,0 985,5

Zhambylskaya 3,1% 14,8 0,0 0,0 14,8 1965,5 0,0 0,0 1965,5

Karaganda 12,4% 58,4 0,0 0,0 58,4 3198,3 0,0 0,0 3198,3

Kostanay 10,4% 48,8 13,0 0,1 35,7 2362,5 1,1 0,0 2361,4

Kyzylorda 0,3% 1,2 0,1 0,0 1,1 106,2 0,0 0,0 106,2

Mangystau 0,0% 0,0 0,0 0,0 0,0 3,2 0,0 2,0 1,2

South Kazakhstan 3,6% 16,9 0,0 0,0 16,9 1135,0 0,0 0,0 1135,0

Pavlodar 1,7% 7,9 0,0 0,0 7,9 1094,6 0,0 0,0 1094,6

North Kazakhstan 16,8% 78,7 0,0 0,0 78,7 11803,8 0,0 0,0 11803,8

East Kazakhstan 15,2% 71,1 1,2 0,0 69,9 9852,3 1,9 0,0 9850,4

Astana 0,4% 1,8 0,0 0,0 1,8 235,5 0,0 0,0 235,5

Almaty city 2,4% 11,3 0,0 0,0 11,3 373,3 0,0 0,0 373,3

including: including:

107

Region all growing Total Grapes in a fertile age, share by large medium small large medium small area crops in hectares growing companies companies farmers companies companies farmers hectares centners area %

The Republic of Kazakhstan 100% 13 888,7 4 649,2 7 314,6 1 925,0 812 231,5 107 159,4 555 245,4 149 826,6

Akmola 0,00% 0,1 0,0 0,0 0,1 3,5 0,0 0,0 3,5

Aktobe 0,10% 13,8 0,0 0,0 13,8 812,8 0,0 0,0 812,8

Almaty 29,86% 4 147,2 2 283,2 1 578,4 285,6 196 535,7 40 115,1 133 626,9 22 793,7

Atyrau 0,05% 7,2 0,0 2,0 5,2 9,9 0,0 3,0 6,9

West Kazakhstan 0,12% 17,0 0,0 0,0 17,0 720,5 0,0 0,0 720,5

Zhambylskaya 1,10% 152,4 0,0 33,0 119,4 10 116,3 0,0 1 610,1 8 506,2

Karaganda 0,17% 23,6 0,0 0,0 23,6 1 994,1 0,0 0,0 1 994,1

Kostanay 0,07% 9,5 0,0 0,0 9,5 681,8 0,0 0,0 681,8

Kyzylorda 0,40% 55,6 0,0 10,6 45,0 3 020,5 0,0 166,0 2 854,5

Mangystau 0,01% 1,9 0,0 1,9 0,1 65,2 0,0 62,5 2,7

South Kazakhstan 67,35% 9 353,7 2 366,0 5 673,7 1 314,0 589 511,6 67 044,3 419 630,9 102 836,4

Pavlodar 0,02% 2,8 0,0 0,0 2,8 285,3 0,0 0,0 285,3

East Kazakhstan 0,53% 73,6 0,0 15,0 58,6 5 725,4 0,0 146,0 5 579,4

Almaty city 0,22% 30,5 0,0 0,0 30,5 2 748,9 0,0 0,0 2 748,9

Region including: including: all growing Total share by Carrots, hectares area crops in growing large medium small large medium small hectares centners area % companies companies farmers companies companies farmers

108

The Republic of 5 462 3 358 1 779 Kazakhstan 100% 19 946,3 1 623,8 11 312,3 7 010,2 656,4 324 619,5 295,6 741,3

Akmola 3,0% 603,3 137,0 86,0 380,3 115 078,4 37 512,0 8 385,0 69 181,4

Aktobe 3,0% 598,8 36,8 119,6 442,4 103 822,6 7 470,0 20 359,1 75 993,5

Almaty 18,4% 3 676,7 45,2 1 944,4 1 687,1 997 340,4 8 022,5 520 943,1 468 374,8

Atyrau 1,5% 295,5 13,8 150,0 131,7 88 122,0 1 911,0 49 500,0 36 711,0

West Kazakhstan 2,1% 413,3 1,5 179,3 232,5 56 282,0 270,0 22 215,0 33 797,0

Zhambylskaya 15,6% 3 109,5 84,0 2 426,8 598,7 937 280,9 7 002,0 785 921,9 144 357,0

Karaganda 3,3% 652,4 135,4 353,3 163,7 244 965,8 24 995,0 161 762,0 58 208,9

Kostanay 1,9% 373,8 37,6 151,4 184,8 125 319,4 16 219,9 42 498,2 66 601,3

Kyzylorda 3,7% 735,4 5,8 22,1 707,5 116 386,0 848,0 3 266,2 112 271,8

Mangystau 0,0% 0,7 0,0 0,5 0,2 1,1 0,0 1,0 0,1

South Kazakhstan 11,6% 2 315,0 152,6 1 238,1 924,3 463 066,1 21 043,0 256 742,6 185 280,5

1 535 1 327 Pavlodar 25,1% 5 005,8 843,4 3 997,9 164,5 394,8 150 859,9 608,9 56 926,0

North Kazakhstan 4,1% 820,7 66,5 153,4 600,8 311 586,5 22 309,2 38 324,9 250 952,4

East Kazakhstan 6,7% 1 335,1 64,2 489,4 781,5 365 121,0 26 157,0 120 767,9 218 196,0

Astana 0,0% 4,0 0,0 0,0 4,0 754,9 0,0 0,0 754,9

Almaty city 0,0% 6,3 0,0 0,0 6,3 2 134,6 0,0 0,0 2 134,6

Region including: including: all growing Total share by Beetroot, hectares area crops in growing large medium small large medium small hectares centners area % companies companies farmers companies companies farmers

109

The Republic of 1 619 Kazakhstan 100% 5 880,4 307,7 2 426,6 3 146,1 523,9 56 509,9 717 367,9 845 646,0

Akmola 5,5% 324,6 36,4 45,0 243,2 55 268,2 5 596,0 5 208,6 44 463,6

Aktobe 6,1% 361,6 9,1 73,7 278,8 61 042,6 1 692,0 12 182,6 47 168,0

Almaty 21,5% 1 262,1 6,2 592,3 663,6 364 536,1 1 488,7 172 221,2 190 826,2

Atyrau 3,3% 196,8 5,3 81,4 110,1 61 452,0 992,3 28 530,7 31 929,0

West Kazakhstan 4,6% 269,3 15,0 84,1 170,2 39 520,8 1 900,0 12 882,0 24 738,8

Zhambylskaya 7,2% 420,8 1,6 181,7 237,5 119 623,4 251,0 52 290,2 67 082,2

Karaganda 9,5% 560,1 76,0 384,5 99,6 244 080,5 12 050,0 197 464,2 34 566,3

Kostanay 3,7% 218,8 21,0 66,9 130,9 67 312,0 4 315,4 18 338,0 44 658,6

Kyzylorda 3,0% 174,5 3,0 1,9 169,6 27 146,1 450,0 191,1 26 505,0

Mangystau 0,0% 0,4 0,0 0,4 0,0 39,0 0,0 39,0 0,0

South Kazakhstan 11,3% 662,3 75,8 367,7 218,8 134 595,0 15 840,0 83 646,7 35 108,3

Pavlodar 8,2% 485,1 20,0 373,5 91,7 124 249,5 1 600,0 93 145,7 29 503,8

North Kazakhstan 7,8% 455,7 17,5 53,8 384,4 178 406,4 2 944,5 9 522,3 165 939,5

East Kazakhstan 8,2% 482,4 20,8 119,7 341,9 140 972,7 7 390,0 31 705,8 101 876,9

Astana 0,0% 1,7 0,0 0,0 1,7 262,5 0,0 0,0 262,5

Almaty city 0,1% 4,1 0,0 0,0 4,1 1 017,2 0,0 0,0 1 017,2

Region including: including: all growing Total share by Onions, hectares area crops in growing large medium small large medium small hectares centners area % companies companies farmers companies companies farmers

110

The Republic of 7 442 5 833 Kazakhstan 100% 26 665,3 2 593,5 19 927,2 4 144,5 635,5 720 536,0 296,7 888 802,8

Akmola 0,3% 84,6 0,0 0,0 84,6 13 974,3 0,0 0,0 13 974,3

Aktobe 1,1% 300,3 19,3 58,5 222,5 50 940,7 8 038,0 10 128,8 32 774,0

2 156 1 394 Almaty 22,4% 5 970,8 942,3 3 937,5 1 090,9 379,8 472 018,6 587,5 289 773,7

Atyrau 1,4% 376,6 26,1 233,6 116,9 125 988,9 4 397,4 91 197,4 30 394,1

West Kazakhstan 1,4% 382,8 15,0 126,7 241,1 80 281,9 1 750,0 43 976,9 34 555,0

3 919 3 695 Zhambylskaya 54,2% 14 461,9 926,8 13 105,7 429,4 590,6 119 636,0 258,3 104 696,3

Karaganda 0,2% 58,8 0,0 10,5 48,3 14 344,6 0,0 4 114,6 10 230,0

Kostanay 0,3% 79,8 1,5 33,2 45,1 13 544,4 13,0 3 843,9 9 687,5

Kyzylorda 1,5% 399,6 4,7 6,3 388,6 56 696,3 614,0 946,2 55 136,1

Mangystau 0,0% 0,0 0,0 0,0 0,0 3,1 0,0 3,1 0,0

South Kazakhstan 14,2% 3 774,3 593,9 2 265,3 915,1 824 969,4 91 461,0 549 072,6 184 435,8

Pavlodar 0,3% 84,6 0,0 59,0 25,6 21 523,2 0,0 15 938,4 5 584,7

North Kazakhstan 0,8% 225,2 20,9 0,0 204,3 51 374,6 2 293,0 0,0 49 081,6

East Kazakhstan 1,7% 459,1 43,0 90,9 325,2 111 491,0 20 315,0 24 229,0 66 947,0

Astana 0,0% 1,2 0,0 0,0 1,2 111,4 0,0 0,0 111,4

Almaty city 0,0% 5,9 0,0 0,0 5,9 1 421,3 0,0 0,0 1 421,3

all growing including: Total including: Region Garlic, hectares area large medium small crops in large medium small share by hectares companies companies farmers centners companies companies farmers

111

growing area %

The Republic of Kazakhstan 100% 2 001,6 87,4 920,3 993,9 388 307,6 6 299,2 211 139,6 170 868,7

Akmola 1,2% 24,8 0,0 0,0 24,8 4 434,4 0,0 0,0 4 434,4

Aktobe 1,3% 25,5 2,0 0,0 23,5 3 346,1 480,0 0,0 2 866,1

Almaty 27,5% 549,5 3,4 196,2 349,9 92 181,9 39,2 40 857,0 51 285,7

West Kazakhstan 0,6% 11,2 0,0 1,3 9,9 990,6 0,0 150,0 840,6

Zhambylskaya 41,7% 834,1 80,0 591,5 162,6 196 592,5 5 600,0 154 058,9 36 933,5

Karaganda 0,7% 14,4 0,0 0,0 14,4 2 538,7 0,0 0,0 2 538,7

Kostanay 0,8% 16,7 0,0 0,0 16,7 2 420,5 0,0 0,0 2 420,5

South Kazakhstan 16,6% 332,1 2,0 126,7 203,4 45 286,9 180,0 14 981,6 30 125,3

Pavlodar 0,4% 8,1 0,0 0,0 8,1 1 590,2 0,0 0,0 1 590,2

North Kazakhstan 2,6% 52,8 0,0 0,0 52,8 11 842,5 0,0 0,0 11 842,5

East Kazakhstan 6,3% 126,8 0,0 4,6 122,2 26 644,8 0,0 1 092,1 25 552,7

Astana 0,0% 0,4 0,0 0,0 0,4 72,4 0,0 0,0 72,4

Almaty city 0,3% 5,1 0,0 0,0 5,1 366,2 0,0 0,0 366,2

Region including: including: all growing Total share by Eggplant, hectares area crops in growing large medium small large medium small hectares centners area % companies companies farmers companies companies farmers

The Republic of Kazakhstan 100% 3 934,7 106,3 1 458,7 2 369,7 856 352,3 20 323,2 331 968,4 504 060,7

112

Akmola 1,7% 67,0 0,0 0,0 67,0 11 914,4 0,0 0,0 11 914,4

Aktobe 4,4% 171,7 1,0 24,2 146,5 25 734,0 350,0 3 748,0 21 636,0

Almaty 23,3% 918,3 7,7 533,4 377,2 244 472,6 1 700,0 141 564,0 101 208,6

Atyrau 3,7% 143,7 6,1 49,7 87,9 36 631,3 384,0 15 016,0 21 231,3

West Kazakhstan 3,1% 121,0 0,0 22,5 98,5 14 391,3 0,0 2 957,5 11 433,8

Zhambylskaya 11,6% 455,9 1,0 83,4 371,5 108 077,5 100,0 21 905,2 86 072,3

Karaganda 1,1% 44,1 0,0 0,7 43,4 11 098,7 0,0 167,9 10 930,8

Kostanay 2,3% 88,9 0,0 6,1 82,8 20 109,6 0,0 990,4 19 119,2

Kyzylorda 1,8% 69,8 0,0 0,0 69,8 8 624,6 0,0 0,0 8 624,6

Mangystau 0,9% 37,2 0,0 37,2 0,0 35,3 0,0 35,3 0,0

South Kazakhstan 36,0% 1 417,8 88,0 634,1 695,7 279 746,5 17 370,0 130 247,8 132 128,7

Pavlodar 2,3% 90,0 1,0 17,8 71,2 20 653,9 250,0 3 659,7 16 744,2

North Kazakhstan 1,4% 53,3 0,5 0,0 52,8 13 333,1 9,2 0,0 13 323,9

East Kazakhstan 6,2% 245,6 1,0 49,6 195,0 59 325,7 160,0 11 676,5 47 489,2

Astana 0,0% 0,5 0,0 0,0 0,5 99,0 0,0 0,0 99,0

Almaty city 0,3% 10,1 0,0 0,0 10,1 2 104,8 0,0 0,0 2 104,8

Region including: including: all growing Total share by Peppers, hectares area crops in growing large medium small large medium small hectares centners area % companies companies farmers companies companies farmers

The Republic of 2 031 1 176 Kazakhstan 100% 9 614,5 504,3 5 317,2 3 793,1 770,2 62 353,3 042,6 793 374,3

Akmola 0,7% 67,0 0,0 0,1 66,9 9 496,8 0,0 12,6 9 484,2

113

Aktobe 1,6% 150,3 1,0 47,7 101,6 20 550,8 250,0 7 477,0 12 823,8

Almaty 34,3% 3 298,6 90,4 2 189,2 1 019,0 793 263,1 13 810,0 527 760,1 251 693,0

Atyrau 1,3% 127,2 6,6 42,4 78,3 25 024,4 617,0 7 551,0 16 856,4

West Kazakhstan 1,2% 112,7 0,3 25,3 87,1 13 350,0 6,0 3 083,6 10 260,4

Zhambylskaya 9,8% 945,8 3,0 244,1 698,7 224 024,0 300,0 67 026,8 156 697,2

Karaganda 0,4% 43,0 0,0 0,8 42,2 10 450,3 0,0 203,0 10 247,3

Kostanay 0,9% 86,0 0,0 0,5 85,5 19 935,5 0,0 64,3 19 871,2

Kyzylorda 1,1% 108,1 0,0 4,5 103,5 15 509,9 0,0 831,5 14 678,4

Mangystau 0,1% 8,1 0,0 7,8 0,3 817,3 0,0 795,1 22,3

South Kazakhstan 42,2% 4 055,3 398,6 2 678,7 978,0 765 868,4 46 530,0 545 460,3 173 878,0

Pavlodar 1,0% 92,1 0,0 15,6 76,5 20 575,9 0,0 2 554,8 18 021,1

North Kazakhstan 0,6% 61,3 0,4 0,0 60,9 12 670,9 25,3 0,0 12 645,6

East Kazakhstan 4,6% 445,3 4,0 60,5 380,8 97 990,6 815,0 13 222,7 83 952,9

Astana 0,0% 0,6 0,0 0,0 0,6 71,4 0,0 0,0 71,4

Almaty city 0,1% 13,2 0,0 0,0 13,2 2 171,1 0,0 0,0 2 171,1

Region including: including: all growing Total share by Potatoes, hectares area crops in growing large medium small large medium small hectares centners area % companies companies farmers companies companies farmers

The Republic of 35 511 12 572 20 133 Kazakhstan 100% 182 894,7 14 192,2 61 772,1 106 930,4 135,7 2 804 966,4 429,3 740,0

2 810 2 303 Akmola 9,2% 16 917,5 1 797,6 1 432,4 13 687,5 905,3 345 401,5 162 472,8 031,1

114

Aktobe 3,4% 6 149,9 446,6 943,5 4 759,8 950 374,5 58 698,0 126 277,6 765 398,9

7 220 3 891 3 235 Almaty 21,3% 38 984,9 613,5 20 907,9 17 463,5 000,0 93 099,0 689,9 211,0

Atyrau 1,1% 2 008,9 46,1 1 308,4 654,4 258 278,8 2 401,0 183 830,2 72 047,6

West Kazakhstan 2,1% 3 917,3 408,7 985,9 2 522,7 585 593,0 73 053,0 185 966,0 326 574,0

2 046 1 215 Zhambylskaya 4,9% 9 011,0 340,0 5 146,3 3 524,7 271,3 23 410,0 423,7 807 437,6

3 224 1 367 1 098 Karaganda 7,3% 13 391,2 3 436,4 5 012,0 4 942,8 975,7 759 037,9 048,3 889,5

1 748 1 202 Kostanay 4,9% 8 933,2 714,0 2 351,3 5 867,9 093,8 149 971,6 396 075,3 046,9

Kyzylorda 2,3% 4 208,0 45,0 196,4 3 966,6 600 502,7 6 860,0 25 743,0 567 899,7

2 511 1 660 South Kazakhstan 7,8% 14 299,9 658,2 9 070,8 4 570,9 350,1 79 622,0 558,3 771 169,8

4 325 2 181 1 278 Pavlodar 9,3% 17 064,5 3 426,0 8 018,4 5 620,1 418,2 866 071,3 203,0 143,9

5 026 4 487 North Kazakhstan 15,0% 27 454,0 1 349,1 2 436,6 23 668,3 326,7 201 965,2 337 297,2 064,2

4 170 3 188 East Kazakhstan 11,1% 20 336,4 881,0 3 962,2 15 493,2 809,1 143 005,9 838 844,0 959,1

Astana 0,1% 129,7 30,0 0,0 99,7 18 246,7 2 370,0 0,0 15 876,7

Almaty city 0,0% 88,3 0,0 0,0 88,3 13 990,1 0,0 0,0 13 990,1

all growing including: Total including: Region Tomatoes, hectares area large medium small crops in large medium small share by hectares companies companies farmers centners companies companies farmers

115

growing area %

The Republic of Kazakhstan 100% 29 485,0 1 258,3 12 172,0 16 054,7 7 390 066 453 530 2 977 839 3 958 698

Akmola 2,4% 715,0 5,0 27,9 682,0 121 869 347 1 096 120 426

Aktobe 3,2% 944,3 15,9 168,1 760,3 152 729 1 920 27 984 122 825

Almaty 21,3% 6 289,6 465,1 3 647,5 2 177,0 1 824 847 126 215 1 072 283 626 349

Atyrau 1,9% 570,4 21,4 227,0 322,1 143 845 3 235 63 660 76 950

West Kazakhstan 2,4% 705,9 6,3 169,5 530,2 94 855 616 23 823 70 416

Zhambylskaya 14,1% 4 146,9 37,0 2 262,6 1 847,3 1 067 123 2 200 619 243 445 680

Karaganda 1,7% 499,7 5,0 23,4 471,3 163 774 100 4 848 158 826

Kostanay 2,0% 604,0 3,4 66,3 534,3 197 035 502 14 367 182 166

Kyzylorda 4,7% 1 389,7 8,3 273,0 1 108,4 252 635 831 43 450 208 353

Mangystau 0,6% 181,2 3,5 176,4 1,2 21 676 1 730 19 833 113

South Kazakhstan 34,9% 10 280,2 666,7 4 847,4 4 766,1 2 362 028 311 506 1 005 710 1 044 811

Pavlodar 1,6% 484,0 6,0 48,6 429,4 148 963 1 080 14 215 133 668

North Kazakhstan 3,8% 1 122,1 6,7 3,5 1 111,9 416 761 1 312 1 000 414 449

East Kazakhstan 4,9% 1 454,9 8,0 230,8 1 216,1 398 561 1 935 66 326 330 299

Astana 0,0% 8,6 0,0 0,0 8,6 1 499 0 0 1 499

Almaty city 0,3% 88,5 0,0 0,0 88,5 21 868 0 0 21 868

Cucumbers including: including:

116

Region all growing Total share by large medium small large medium small area crops in growing companies companies farmers companies companies farmers hectares centners area %

The Republic of Kazakhstan 100% 17 760,6 297,4 6 003,1 11 460,1 4 096 998 43 620 1 410 686 2 642 693

Akmola 3,7% 654,5 7,9 30,4 616,2 110 534 731 2 210 107 594

Aktobe 4,9% 864,8 14,6 149,7 700,5 132 622 1 964 25 587 105 070

Almaty 20,3% 3 598,8 39,6 1 973,6 1 585,6 980 472 9 828 546 439 424 206

Atyrau 3,2% 562,6 10,3 241,9 310,3 149 890 937 70 151 78 802

West Kazakhstan 3,6% 632,2 2,5 143,3 486,4 85 927 28 19 518 66 382

Zhambylskaya 11,1% 1 973,4 33,0 480,6 1 459,8 475 308 2 450 125 278 347 580

Karaganda 2,4% 420,1 5,0 111,4 303,7 110 712 100 27 862 82 750

Kostanay 2,4% 421,5 4,7 47,8 369,0 122 504 1 032 7 500 113 973

Kyzylorda 5,8% 1 032,3 3,7 51,2 977,4 190 103 597 10 072 179 435

Mangystau 0,6% 103,5 0,5 101,8 1,2 13 915 50 13 751 115

South Kazakhstan 28,8% 5 122,7 159,0 2 346,4 2 617,3 1 015 944 22 294 470 338 523 312

Pavlodar 2,1% 371,4 1,0 32,7 337,6 106 412 250 9 075 97 087

North Kazakhstan 4,1% 734,2 6,6 3,9 723,7 262 178 1 200 1 021 259 957

East Kazakhstan 6,9% 1 222,5 9,0 288,4 925,1 329 825 2 160 81 885 245 780

Astana 0,0% 6,9 0,0 0,0 6,9 1 218 0 0 1 218

Almaty city 0,2% 39,2 0,0 0,0 39,2 9 432 0 0 9 432

Cabbage, hectares including: including:

117

Region all growing Total share by large medium small large medium small area crops in growing companies companies farmers companies companies farmers hectares centners area %

The Republic of 5 050 2 670 2 203 Kazakhstan 100% 19 180,2 748,2 10 306,7 8 125,3 587,6 176 997,5 193,7 396,4

Akmola 3,2% 612,0 26,0 222,1 363,9 99 936,1 2 554,0 27 565,3 69 816,9

Aktobe 3,4% 651,5 20,5 137,6 493,4 119 339,5 5 254,0 24 816,2 89 269,3

1 063 Almaty 17,4% 3 343,6 21,6 1 703,2 1 618,8 288,9 4 588,1 569 094,6 489 606,2

Atyrau 1,1% 202,3 11,3 99,1 91,9 59 683,0 1 996,0 30 225,5 27 461,5

West Kazakhstan 3,5% 665,2 12,0 280,2 373,0 109 553,0 2 400,0 54 403,0 52 750,0

Zhambylskaya 7,1% 1 353,3 23,0 628,0 702,3 318 155,3 1 888,0 158 095,0 158 172,3

Karaganda 2,1% 394,6 37,1 189,0 168,5 134 837,0 4 060,0 70 411,2 60 365,9

Kostanay 2,2% 428,6 64,0 185,4 179,2 170 518,2 30 757,4 72 578,7 67 182,1

Kyzylorda 1,7% 318,9 3,1 1,0 314,8 44 687,0 365,5 123,8 44 197,7

Mangystau 0,3% 61,9 0,0 61,9 0,0 6 115,6 0,0 6 115,6 0,0

1 780 1 336 South Kazakhstan 41,1% 7 884,9 441,5 5 793,6 1 649,8 027,9 88 934,0 666,6 354 427,3

Pavlodar 1,7% 335,0 3,0 190,3 141,7 143 353,7 855,0 84 884,4 57 614,2

North Kazakhstan 6,4% 1 234,6 40,1 182,4 1 012,1 468 702,5 11 202,2 42 832,9 414 667,4

East Kazakhstan 8,7% 1 673,8 45,0 632,8 996,0 527 123,9 22 143,3 192 381,1 312 599,4

Astana 0,0% 1,9 0,0 0,0 1,9 217,0 0,0 0,0 217,0

118

Almaty city 0,1% 18,1 0,0 0,0 18,1 5 049,3 0,0 0,0 5 049,3

Region including: including: all growing Total share by Pumpkin, hectares area crops in growing large medium small large medium small hectares centners area % companies companies farmers companies companies farmers

The Republic of 1 373 Kazakhstan 100% 5 599,2 212,5 2 303,1 3 083,6 895,8 36 480,5 589 272,5 748 142,8

Akmola 1,0% 53,4 0,0 0,0 53,4 11 680,8 0,0 0,0 11 680,8

Aktobe 2,2% 125,1 4,0 73,0 48,1 24 413,4 850,0 16 716,4 6 847,0

Almaty 34,3% 1 919,4 26,1 1 104,6 788,7 574 662,0 9 502,0 327 747,0 237 413,0

Atyrau 1,2% 68,8 0,0 24,1 44,8 19 344,5 0,0 7 903,2 11 441,3

West Kazakhstan 2,1% 118,2 0,0 53,5 64,7 16 058,1 0,0 8 408,9 7 649,2

Zhambylskaya 5,5% 306,3 2,0 132,0 172,3 77 071,1 285,0 30 759,2 46 026,9

Karaganda 0,3% 19,3 10,0 0,0 9,3 2 815,4 260,0 0,0 2 555,4

Kostanay 0,5% 28,5 0,0 4,4 24,1 6 093,0 0,0 643,1 5 449,9

Kyzylorda 13,6% 762,2 19,5 107,0 635,7 112 668,9 2 598,5 18 598,0 91 472,4

Mangystau 0,5% 25,5 0,0 25,3 0,2 385,6 0,0 381,5 4,1

South Kazakhstan 22,1% 1 239,5 148,6 681,4 409,5 249 223,4 22 095,0 146 611,7 80 516,7

Pavlodar 0,3% 14,7 0,0 2,0 12,7 4 784,9 0,0 600,0 4 184,9

North Kazakhstan 1,2% 65,9 1,3 0,5 64,1 23 741,2 635,0 100,0 23 006,2

East Kazakhstan 15,1% 845,9 1,0 95,3 749,6 249 467,1 255,0 30 803,5 218 408,6

Astana 0,0% 1,1 0,0 0,0 1,1 173,2 0,0 0,0 173,2

Almaty city 0,1% 5,3 0,0 0,0 5,3 1 313,4 0,0 0,0 1 313,4

119

Region including: including: all growing Total share by Melons, hectares area crops in growing large medium small large medium small hectares centners area % companies companies farmers companies companies farmers

The Republic of Kazakhstan 100% 38 793,0 5 275,6 28 531,5 4 986,0 8 124 980 698 220 6 443 471 983 289

Akmola 0,01% 3,3 0,0 3,3 0,0 10 0 10 0

Aktobe 0,62% 239,9 14,5 147,2 78,2 38 983 1 193 27 069 10 721

Almaty 2,69% 1 043,2 11,5 740,7 291,0 251 447 2 167 185 196 64 084

Atyrau 1,16% 448,4 6,5 266,2 175,7 124 008 773 86 893 36 343

West Kazakhstan 1,45% 561,5 2,0 277,3 282,2 80 452 162 40 290 40 001

Zhambylskaya 1,86% 720,2 0,0 411,4 308,8 158 935 0 76 639 82 296

Karaganda 0,03% 10,1 0,0 7,8 2,3 1 281 0 859 422

Kostanay 0,18% 68,6 0,0 16,8 51,9 9 058 0 2 314 6 743

Kyzylorda 10,58% 4 103,5 162,0 605,5 3 336,0 762 070 24 091 97 614 640 365

Mangystau 0,64% 248,7 4,0 244,4 0,3 34 730 300 34 384 46

South Kazakhstan 78,87% 30 596,6 5 035,1 25 229,6 331,9 6 452 353 655 684 5 735 404 61 266

Pavlodar 0,10% 37,5 3,0 30,0 4,6 10 886 900 8 633 1 354

East Kazakhstan 1,83% 711,5 37,0 551,3 123,2 200 766 12 950 148 167 39 649

Region including: including: all growing Total share by Watermelons, hectares area crops in growing large medium small large medium small hectares centners area % companies companies farmers companies companies farmers

120

The Republic of 12 815 10 620 Kazakhstan 100% 54 589,1 6 228,7 43 337,2 5 023,2 100 1 171 492 549 1 023 060

Akmola 0,02% 9,1 0,0 8,1 1,0 818 0 650 168

Aktobe 1,30% 711,3 64,6 442,0 204,7 112 008 7 648 73 937 30 424

Almaty 6,74% 3 680,7 680,5 2 272,2 728,0 890 189 126 925 605 545 157 719

Atyrau 1,04% 567,0 9,2 416,3 141,4 171 386 1 610 140 648 29 129

West Kazakhstan 1,96% 1 070,8 8,8 611,4 450,7 152 884 792 90 665 61 426

Zhambylskaya 19,26% 10 511,9 388,5 9 752,9 370,5 2 825 854 43 995 2 690 249 91 610

Karaganda 0,03% 14,2 0,0 11,9 2,3 2 045 0 1 538 508

Kostanay 0,58% 317,8 45,0 207,5 65,3 22 666 2 480 11 476 8 710

Kyzylorda 5,77% 3 150,6 61,0 928,5 2 161,1 604 250 10 690 162 904 430 656

Mangystau 0,57% 311,0 5,0 305,9 0,1 46 243 500 45 728 16

South Kazakhstan 48,92% 26 704,1 2 485,1 23 655,5 563,5 6 043 382 474 122 5 468 140 101 120

Pavlodar 4,94% 2 694,0 2,0 2 677,2 14,8 777 179 80 773 866 3 233

East Kazakhstan 8,88% 4 846,7 2 479,0 2 047,9 319,8 1 166 196 502 650 555 203 108 342

Region including: including: all growing Total share by Peas area crops in growing large medium small large medium small hectares centners area % companies companies farmers companies companies farmers

The Republic of 1 311 Kazakhstan 100% 100 672,1 93 354,3 7 308,1 9,7 781,5 1 200 671,5 110 868,0 242,0

Akmola 13,1% 13 174,0 12 946,0 228,0 0,0 164 105,0 160 105,0 4 000,0 0,0

Almaty 0,0% 27,0 27,0 0,0 0,0 310,0 310,0 0,0 0,0

121

Karaganda 0,0% 0,7 0,0 0,0 0,7 13,4 0,0 0,0 13,4

Kostanay 51,9% 52 275,7 49 787,0 2 488,7 0,0 552 812,7 510 622,7 42 190,0 0,0

South Kazakhstan 0,2% 163,9 36,7 118,2 9,0 2 461,3 560,0 1 672,7 228,6

Pavlodar 1,2% 1 256,0 766,0 490,0 0,0 14 092,5 6 822,2 7 270,3 0,0

North Kazakhstan 26,7% 26 885,0 24 755,0 2 130,0 0,0 477 609,6 444 705,6 32 904,0 0,0

East Kazakhstan 6,8% 6 889,8 5 036,6 1 853,2 0,0 100 377,0 77 546,0 22 831,0 0,0

2. REGIONAL EXTERNAL TRADE

Table 43. All foreign and mutual trade in the main fruit and vegetable products in the regions of Kazakhstan for 2017 in tons

Nothern Trade macro region, imports

Hub share

Total North

Total % in Import by region in Hub import to on commodity 2017, tons (Astana

KZ North foreign

region regi

4digits WSM)

Kostanay Karaganda

AstanaCity trade

Kazakhstan

Akmolaregion

CustomsCode

Pavlodarregion Unit measureUnit of Custom Code 78 2 Tomatoes 0 0 1285 308 851 54 3,2% tons 0702 209 499

Custom Code 11 Cucumbers 0 86 75 9 9 8 1,6% tons 0707 372 188

Custom Code 145 70 Apples and pears 20 8161 6097 2646 50510 3379 48,7% tons 0808 452 813

Apricots, Peaches, Custom Code 105 2 Cherries, Cherries, 16 820 1224 145 617 0 2,7% 0809 046 821 Plums, tons Strawberries,

122

Raspberries, Currants

Custom Code 137 2 Grapes 450 297 127 216 1015 34 1,6% tons 0806 835 139

Carrots, beets, Custom Code 30 0 63 46,7 0,2 243 0 1,2% turnips, radishes tons 0706 461 352

Custom Code 93 3 Onion and garlic 120 404 92 59 3146 25 4,1% tons 0703 196 845

Custom Code 7 Peppers 1 26 6,8 23 33 79 2,2% tons 0904 546 169

Custom Code 45 4 Potatoes 582 788 752 884 638 704 9,6% tons 0701 473 348

Cabbage, Custom Code 37 eggplants, squash, 0 262 49 14 33 23 1,0% 0704 288 382 etc. tons

Gourds (pumpkin, Custom Code 8 melon, 0 0,3 0,6 0 3,1 20 0,3% 0807 565 24 watermelons) tons

Custom Code Peas 0 0,2 1,8 21,9 2 0 14,2% tons 0708 182 26

Flowers, thousand thousand Custom Code 5 3 0 425 1999 867 0 78 57,9% pieces pieces 0603 821 370

TOTAL for key products in tons (without 700 87 1189 10906 9756 4327 57101 4326 12,5% flowers) 626 606

The share of imports of key products in tonnes 1,4% 12,4% 11,1% 4,9% 65,2% 4,9% (without flowers)

123

South-Eastern Trade Macro Region, imports

Total

Hub share South-

Total % in City

Eastern Import by region in 2017, tons import to commodity Hub

KZ foreign 4digits Kazakhstan (Almaty

Almaty trade

Almatyregion WSM)

CustomsCode

Unit measureUnit of East East Custom Code 78 38 Tomatoes 8288 17377 13088 49,5% tons 0702 209 753

Custom Code 11 5 Cucumbers 978 3540 1195 50,2% tons 0707 372 713

Custom Code 145 25 Apples and pears 8923 12896 4048 17,8% tons 0808 452 867

Apricots, Peaches, Cherries, Cherries, Plums, Custom Code 105 42 5225 16895 20408 40,5% Strawberries, Raspberries, Currants 0809 046 528 tons

Custom Code 137 27 Grapes 2845 4913 19639 19,9% tons 0806 835 397

Custom Code 30 3 Carrots, beets, turnips, radishes 1298 993 752 10,0% tons 0706 461 042

Custom Code 93 16 Onion and garlic 1819 9752 4616 17,4% tons 0703 196 187

Custom Code 7 1 Peppers 19 988 5 13,4% tons 0904 546 012

Custom Code 45 16 Potatoes 5782 10683 441 37,2% tons 0701 473 907

124

Custom Code 37 13 Cabbage, eggplants, squash, etc. 4871 5103 3287 35,6% tons 0704 288 261

Custom Code 8 1 Gourds (pumpkin, melon, watermelons) 30 61 1035 13,1% tons 0807 565 125

Custom Code Peas 14 101 37 83,2% tons 0708 182 152

thousand Custom Code 5 Flowers, thousand pieces 92 800 3 15,4% pieces 0603 821 894

700 191 TOTAL for key products in tons (without flowers) 40092 83301 68551 27,4% 626 944

The share of imports of key products in tonnes (without flowers) 20,9% 43,4% 35,7%

South Trade Macro Region, imports

Hub share

Total South Hub % in Import by region in 2017, tons import to n (Shymkent commodity

KZ egion WSM) foreign

regio region

4digits

Zhambyl Kyzylorda

Turkestan trade

Shymkent &

CustomsCode Unit measureUnit of Custom Code 78 Tomatoes 29009 964 0 29973 38,3% tons 0702 209

Custom Code 11 Cucumbers 4712 166 0 4878 42,9% tons 0707 372

Custom Code 145 Apples and pears 8990 4399 16 13405 9,2% tons 0808 452

125

Apricots, Peaches, Cherries, Cherries, Plums, Custom Code 105 56750 1209 0 57959 55,2% Strawberries, Raspberries, Currants 0809 046 tons

Custom Code 137 Grapes 98364 1337 0 99701 72,3% tons 0806 835

Custom Code 30 Carrots, beets, turnips, radishes 23787 2527 0 26314 86,4% tons 0706 461

Custom Code 93 Onion and garlic 46920 22686 0 69605 74,7% tons 0703 196

Custom Code 7 Peppers 6207 0 0 6208 82,3% tons 0904 546

Custom Code 45 Potatoes 14676 118 0 14794 32,5% tons 0701 473

Custom Code 37 Cabbage, eggplants, squash, etc. 22718 137 0 22855 61,3% tons 0704 288

Custom Code 8 Gourds (pumpkin, melon, watermelons) 6027 588 0 6614 77,2% tons 0807 565

Custom Code Peas 0 0 2 2 1,1% tons 0708 182

thousand Custom Code 5 Flowers, thousand pieces 11 43 0 53 0,9% pieces 0603 821

700 TOTAL for key products in tons (without flowers) 318160 34132 18 352309 50,3% 626

The share of imports of key products in tonnes (without flowers) 90,3% 9,7% 0,0%

126

West Trade Macro Region, imports

Hub share

West

% in Total import Hub Import by region in 2017, tons commodity to KZ (Aktobe

West West foreign

region

4digits of measur of

WSM)

Mangystau trade

Kazakhstan

Atyrau region Atyrau

Aktoberegion

CustomsCode Unit Custom Code Tomatoes 78 209 13 19 381 6572 6985 8,9% tons 0702

Custom Code Cucumbers 11 372 0 6 3 585 593 5,2% tons 0707

Custom Code Apples and pears 145 452 10854 10694 6982 6837 35367 24,3% tons 0808

Apricots, Peaches, Cherries, Cherries, Plums, Custom Code 105 046 166 91 679 801 1737 1,7% Strawberries, Raspberries, Currants 0809 tons

Custom Code Grapes 137 835 332 2774 751 4740 8597 6,2% tons 0806

Custom Code Carrots, beets, turnips, radishes 30 461 94 22 338 299 753 2,5% tons 0706

Custom Code Onion and garlic 93 196 1966 136 315 1142 3559 3,8% tons 0703

Custom Code Peppers 7 546 135 18 3 1 158 2,1% tons 0904

Custom Code Potatoes 45 473 1142 1269 153 6860 9424 20,7% tons 0701

Custom Code Cabbage, eggplants, squash, etc. 37 288 139 65 249 337 790 2,1% tons 0704

127

Custom Code Gourds (pumpkin, melon, watermelons) 8 565 1,2 53 203 545 802 9,4% tons 0807

Custom Code Peas 182 0 0 0,1 3 3 1,4% tons 0708

thousand Custom Code Flowers, thousand pieces 5 821 386 934 179 5 1504 25,8% pieces 0603

TOTAL for key products in tons (without flowers) 700 626 14843 15146 10056 28721 68767 9,8%

The share of imports of key products in tonnes (without flowers) 21,6% 22,0% 14,6% 41,8%

North Trade Region, exports

Hub share

Total North % in Export by region for Total export Hub (Astana commodity 017, tonnes from KZ

North WSM) foreign

region region

4digits

Kostanay Karaganda

AstanaCity trade

Kazakhstan

Akmolaregion

CustomsCode

Pavlodarregion Unit measureUnit of Custom Code Tomatoes 15080 29 0 94 0 0 0 123 0,8% tons 0702

Custom Code Cucumbers 6187 36 1 447 0 0 39 523 8,5% tons 0707

Custom Code Apples and pears 1791 0 0 0 0 116 0 116 6,5% tons 0808

Apricots, Peaches, Cherries, Cherries, Custom Code Plums, Strawberries, 19086 0 520 0 0 29 0 549 2,9% 0809 Raspberries, Currants tons

128

Custom Code Grapes 22418 0 85 0 0 0 0 85 0,4% tons 0806

Carrots, beets, Custom Code 2821 0 112 0 97 0 99 308 10,9% turnips, radishes tons 0706

Custom Code Onion and garlic 65868 0 436 0 20 0 446 902 1,4% tons 0703

Custom Code Peppers 59 0 0 0 0 0 0 0 0,0% tons 0904

Custom Code Potatoes 271046 1407 205 10128 23990 5406 0 41136 15,2% tons 0701

Cabbage, eggplants, Custom Code 9307 0 0 0 0 44 137 181 1,9% squash, etc. tons 0704

Gourds (pumpkin, Custom Code 130125 0 0 0 72 0 502 574 0,4% melon, watermelons) tons 0807

Custom Code Peas 336 0 0 0 133 0 199 332 98,9% tons 0708

Flowers, thousand Custom Code 2540 43 0 1691 249 0 19 2002 78,8% pieces tons 0603

TOTAL for key products in tons (without 544 122 1472 1359 10670 24312 5594 1422 44 829 8,2% flowers)

The share of exports of key products in 3,3% 3,0% 23,8% 54,2% 12,5% 3,2% tonnes (without flowers)

129

South-Eastern Trade Region, exports

Total

Hub share South-

Total % in City

Eastern Export by region for 017, tonnes export commodity Hub from KZ foreign 4digits (Almaty

Almaty trade

Almatyregion WSM)

CustomsCode

Unit measureUnit of East East Kazakhstan Custom Code Tomatoes 15080 2683 19 10048 12750 84,5% tons 0702

Custom Code Cucumbers 6187 2172 0 968 3140 50,7% tons 0707

Custom Code Apples and pears 1791 358 18 985 1360 76,0% tons 0808

Apricots, Peaches, Cherries, Cherries, Plums, Custom Code 19086 0 7 18493 18500 96,9% Strawberries, Raspberries, Currants 0809 tons

Custom Code Grapes 22418 342,8 0 21626 21968 98,0% tons 0806

Custom Code Carrots, beets, turnips, radishes 2821 40 0 1324 1364 48,4% tons 0706

Custom Code Onion and garlic 65868 6026 255 2632 8914 13,5% tons 0703

Custom Code Peppers 59 0 8,6 0 9 14,7% tons 0904

Custom Code Potatoes 271046 0 40 0 40 0,0% tons 0701

130

Custom Code Cabbage, eggplants, squash, etc. 9307 55 0 2979 3034 32,6% tons 0704

Custom Code Gourds (pumpkin, melon, watermelons) 130125 8275 0 1196 9471 7,3% tons 0807

Custom Code Peas 336 3 0 0 4 1,1% tons 0708

Custom Code Flowers, thousand pieces 2540 30 0 0 30 1,2% tons 0603

544 80 TOTAL for key products in tons (without flowers) 19956 347 60250 14,8% 122 553

The share of exports of key products in tonnes (without flowers) 24,8% 0,4% 74,8%

South Trade Region, exports

Hub share

South Hub % in Code Total export

Export by region for 017, tonnes s (Shymkent commodity from KZ

WSM) foreign

region region

4digits

Region

Zhambyl Kyzylorda

Turkestan trade

Shymkent &

Custom Unit measureUnit of Custom Code Tomatoes 15080 755 0 253 1007 6,7% tons 0702

Custom Code Cucumbers 6187 2082 0 0 2082 33,6% tons 0707

Custom Code Apples and pears 1791 315 0 0 315 17,6% tons 0808

131

Apricots, Peaches, Cherries, Cherries, Plums, Custom Code 19086 37 0 0 37 0,2% Strawberries, Raspberries, Currants 0809 tons

Custom Code Grapes 22418 305 0 0 305 1,4% tons 0806

Custom Code Carrots, beets, turnips, radishes 2821 1149 0 0 1149 40,7% tons 0706

Custom Code Onion and garlic 65868 9189 46863 0 56052 85,1% tons 0703

Custom Code Peppers 59 50 0 0 50 84,5% tons 0904

Custom Code Potatoes 271046 134761 90690 0 225451 83,2% tons 0701

Custom Code Cabbage, eggplants, squash, etc. 9307 5919 173 0 6092 65,5% tons 0704

Custom Code Gourds (pumpkin, melon, watermelons) 130125 116890 1515 1674 120080 92,3% tons 0807

Custom Code Peas 336 0 0 0 0 0,0% tons 0708

Custom Code Flowers, thousand pieces 2540 1 0 0 1 0,1% tons 0603

TOTAL for key products in tons (without flowers) 544 122 271450 139241 1927 412619 75,8%

The share of exports of key products in tonnes (without flowers) 65,8% 33,7% 0,5%

132

West Trade Region, exports

Hub share

West

Total % in Hub Export by region for 017, tonnes export commodity (Aktobe

from KZ West foreign region 4digits WSM)

Mangystau trade

Kazakhstan

Atyrau region Atyrau

Aktoberegion

CustomsCode Unit measureUnit of Custom Code Tomatoes 15080 1199 0 0 0 1199 8,0% tons 0702

Custom Code Cucumbers 6187 442 0 0 0 442 7,2% tons 0707

Custom Code Apples and pears 1791 0 0 0 0 0 0,0% tons 0808

Apricots, Peaches, Cherries, Cherries, Custom Code Plums, Strawberries, Raspberries, 19086 0 0 0 0 0 0,0% 0809 Currants tons

Custom Code Grapes 22418 0 0 0 60 60 0,3% tons 0806

Custom Code Carrots, beets, turnips, radishes 2821 0 0 0 0 0 0,0% tons 0706

Custom Code Onion and garlic 65868 0 0 0 0 0 0,0% tons 0703

Custom Code Peppers 59 0 0 0 0 0 0,8% tons 0904

Custom Code Potatoes 271046 2149 2211 21 37 4419 1,6% tons 0701

Custom Code Cabbage, eggplants, squash, etc. 9307 0 0 0 0 0 0,0% tons 0704

133

Custom Code Gourds (pumpkin, melon, watermelons) 130125 0 0 0 0 0 0,0% tons 0807

Custom Code Peas 336 0 0 0 0 0 0,0% tons 0708

Custom Code Flowers, thousand pieces 2540 0 508 0 0 508 20,0% tons 0603

544 TOTAL for key products in tons (without flowers) 3791 2211 21 97 6121 1,1% 122

The share of exports of key products in tonnes (without flowers) 61,9% 36,1% 0,3% 1,6%

Table 44. All foreign and mutual trade in tropical fruits, nuts and dried fruits in the regions of Kazakhstan for 2017 in tons

Hub Total Hub

Import by Total North share % South- share %

Custom Total

region

City

region in Hub in Eastern in s Code import to 2017, (Astana commodi Hub commodi 4digits KZ

tons WSM) ty foreign (Almaty ty foreign

Almaty

AstanaCity Almatyregion

Akmolaregion trade WSM) trade

Pavlodarregion

Unit measureUnit of

Kostanay

East East Kazakhstan

Karagandaregion North Kazakhstan Manioc, Jerusale m artichoke 0 0 0 0 0 0 0,0% 0 3 3 20,2% , sweet 28 0 6 root Custom vegetabl ton Code es s 0714

Custom Coconut, Code 25 3 12 882 3 16 406 2555 7 15,2% 71 3734 8582 48,6% Cashew, ton 0801- 493 869 388 Brazilian s 0802 and

134

Other Nuts

Bananas Custom 32 1310 15 1034 12 and ton Code 0 629 0 1732 0 47,9% 2221 268 39,7% 275 8 469 0 828 Plantains s 0803

Dates, figs, Custom 33 101 8 11 2470 702 324 4417 10 26,7% 712 3090 8065 35,4% pineappl ton Code 521 9 943 867 es s 0804

Custom 57 8 1577 25 Citrus ton Code 16 2434 2970 247 2804 227 15,2% 5331 4816 45,2% 407 700 9 926 fruit s 0805

Custom 66 3 7 Dried ton Code 1097 357 682 10 1818 18 6,0% 9 1655 5358 10,6% 115 982 022 fruits s 0813

TOTAL for key products 214 1710 168 1332 40 2452 3716 70 4465 4125 262 19,1% 8343 32,6% in tons (without flowers) 839 0 3 7 962 8 4 036

The share of imports of 10,9 10,1 41,7 4,1 32,5 0,6 11,9 35,0 53,1 key products in tonnes % % % % % % % % % (without flowers)

Hub share Hub share

Customs South Hub % in West Hub % in

Import by region in 2017, tons Code (Shymkent commodity egion (Aktobe commodity gion

4digits WSM) foreign West WSM) foreign

region region re

Unit Unit of

Region

Zhambyl

measure

Kyzylorda Turkestan

trade Mangystau trade

Kazakhstan

Shymkent &

Atyrau r Atyrau Aktoberegion Custom Manioc, Jerusalem artichoke, Code 0 0 0 - 0,0% 0 0 0 22 22 79,8% sweet root vegetables tons 0714

135

Custom Code 4567 0 0 4 567 17,9% 602 1479 0 2588 4 669 18,3% Coconut, Cashew, Brazilian 0801- and Other Nuts tons 0802

Custom Code 2747 0 0 2 747 8,5% 960 23 11 236 1 231 3,8% Bananas and Plantains tons 0803

Custom Code 4899 71 0 4 971 14,8% 1562 2182 6 3991 7 741 23,1% Dates, figs, pineapples tons 0804

Custom Code 19490 47 0 19 537 34,0% 449 291 244 2260 3 245 5,7% Citrus fruit tons 0805

Custom Code 44395 3,1 0 44 398 67,2% 4773 5862 3 74 10 713 16,2% Dried fruits tons 0813

TOTAL for key products in tons (without 76098 122 0 76220 35,5% 8346 9837 266 9172 27621 12,9% flowers)

The share of imports of key products in 99,8% 0,2% 0,0% 30,2% 35,6% 1,0% 33,2% tonnes (without flowers)

Table 45 All foreign and mutual trade in meat, dairy and fish products in the regions of Kazakhstan for 2017 in tons

Hub Total Hub

Import Total North share % South- share %

by Custom Total

region

City

Hub in Eastern in region in s Code import to (Astana commodi Hub commodi 2017, 4digits KZ

WSM) ty foreign (Almaty ty foreign Almaty

tons AstanaCity Almatyregion

Akmolaregion trade WSM) trade

Pavlodarregion

Unit measureUnit of

Kostanay

East East Kazakhstan

Karagandaregion North Kazakhstan

136

Custom Red Code 25 5 4 meat 634 599 643 555 2914 60 21,3% 66 4102 413 18,1% ton 0201- 370 405 581 and offal s 0206

Poultry Custom 172 1106 1638 40 1155 3080 42 meat ton Code 1987 3629 6976 179 23,3% 84 24,6% 483 9 9 229 2 5 441 and offal s 0207

Custom Code 33 11 5 329 713 4096 2953 3105 38 33,5% 371 4275 1191 17,4% ton 0302- 583 234 837 A fish s 0305

Packag Custom 114 17 2667 4591 76 ed Dairy Code 95 1191 1647 7051 5041 2631 15,4% 4185 67,2% 328 656 8 3 776 Product ton 0401- s s 0404

Butter, cheese Custom 29 6 14 and Code 129 2200 2777 207 485 451 21,1% 7381 7173 132 49,6% 579 248 686 cottage ton 0405- cheese s 0406

TOTAL for key 375 2023 1774 2793 80 4604 9226 144 products in tons 3173 8331 3359 21,5% 6006 38,5% 343 3 3 3 772 8 7 321 (without flowers)

The share of imports of 10,3 25,0 22,0 34,6 31,9 63,9 key products in tonnes 3,9% 4,2% 4,2% % % % % % % (without flowers)

137

Exports Hub Total Hub by Total North share % South- share %

Custom Total

region

City

region region Hub in Eastern in s Code export from region a for (Astana commodi Hub commodi 4digits KZ

2017, WSM) ty foreign (Almaty ty foreign

Almaty

AstanaCity Almatyregion

tons Akmolaregion trade WSM) trade

Pavlodar

Unit measureUnit of

Kostanay

East East Kazakhstan

Karagand North Kazakhstan Custom Red Code 3 2 meat 127 34 0 380 1171 319 58,1% 80 152 0 6,6% ton 0201- 499 032 232 and offal s 0206

Poultry Custom 6 2 meat ton Code 267 426 0 136 0 2 12,9% 1828 0 771 40,5% 424 830 599 and offal s 0207

Custom Code 23 2 9 0 53 298 1507 179 97 9,3% 4929 941 3788 42,0% ton 0302- 013 134 658 A fish s 0305

Packag Custom 30 1212 24 6 ed Dairy Code 2759 0 0 4103 5403 80,2% 5026 995 0 19,8% 411 5 389 022 Product ton 0401- s s 0404

Butter, cheese Custom 2 1 and Code 367 0 0 167 97 267 35,8% 493 1082 0 62,6% 513 899 575 cottage ton 0405- cheese s 0406

TOTAL for key 65 1281 30 1235 20 products in tons 3520 513 298 6293 6850 46,0% 3170 4559 30,5% 860 0 284 7 086 (without flowers)

138

The share of exports of 11,6 20,8 22,6 42,3 61,5 15,8 22,7 key products in tonnes 1,7% 1,0% % % % % % % % (without flowers)

Hub share

Hub share n

Customs South Hub % in tan West Hub % in

Import by region in 2017, Region Code (Shymkent commodity (Aktobe commodity tons

4digits WSM) foreign West

region WSM) foreign

trade

Kazakhs Mangystau Mangystau

Shymkent & trade

Atyrau regio Atyrau

Aktoberegion

Unit measureUnit of

Zhambyl

Kyzylordaregion Turkestanregion Custom Code Red meat and offal 126 15 0 140 0,6% 6525 5499 393 2826 15 244 60,1% 0201- tons 0206

Custom Code 3741 22870 0 26 612 15,4% 32838 28391 757 1215 63 201 36,6% Poultry meat and offal tons 0207

Custom Code 4025 139 1 4 164 12,4% 8064 4023 56 205 12 348 36,8% 0302- A fish tons 0305

Custom Code 1511 7749 0 9 260 8,1% 6324 1609 1390 1314 10 637 9,3% 0401- Packaged Dairy Products tons 0404

Custom Code 339 2956 0 3 295 11,1% 3308 720 888 433 5 350 18,1% Butter, cheese and 0405- cottage cheese tons 0406

139

TOTAL for key products in tons (without 9742 33729 1 43472 11,6% 57059 40242 3484 5994 106779 28,4% flowers)

The share of imports of key products in 22,4% 77,6% 0,0% 53,4% 37,7% 3,3% 5,6%

tonnes (without flowers)

Hub share Hub share

Customs South Hub % in West Hub % in

Exports by region for Region Code (Shymkent commodity (Aktobe commodity 2017, tons

4digits WSM) foreign West

region WSM) foreign

trade

Kazakhstan Mangystau Mangystau

Shymkent & trade

Atyrau region Atyrau

Aktoberegion

Unit measureUnit of

Zhambyl

Kyzylordaregion Turkestanregion Custom Code Red meat and offal 103 279 0 382 10,9% 473 362 18 0 853 24,4% 0201- tons 0206

Custom Code 2964 30 0 2 994 46,6% 0 0 0 0 0 0,0% Poultry meat and offal tons 0207

Custom Code 2816 387 3071 6 274 27,3% 20 1038 3889 0,3 4 948 21,5% 0302- A fish tons 0305

Custom Code 0 0 0 - 0,0% 0 0 0 0 0 0,0% 0401- Packaged Dairy Products tons 0404

Custom Code 20 20 0 40 1,6% 0 0 0 0 - 0,0% Butter, cheese and 0405- cottage cheese tons 0406

140

TOTAL for key products in tons (without 5903 716 3071 9690 14,7% 493 1400 3907 0 5800 8,8% flowers)

The share of exports of key products in 60,9% 7,4% 31,7% 8,5% 24,1% 67,4% 0,0% tonnes (without flowers)

141

3. WSM TRADING AREAS AND VOLUMES

Table 46. North Hub Astana-Karaganda, external trade North Hub Astana-Karaganda Geography of Volume per Region trade with the Share from Region dominant Commodity annum, volume, EAEU KZ trade % sector trade dominant tonnes tonnes

Fruits and vegetables, 87 606 13% Kostanay region 10 954,1 imports from the EAEU

Fruit products, Kostanay / export to the 44 829 8% Pavlodar region 3 693,4 Karaganda EAEU

Tropical fruits and nuts, import from 40 962 19% Karaganda region 7 810,0 EEU and re- export

Meat-dairy and fish products, 80 772 22% Kostanay region 17 381,7 imports from the EAEU Kostanay Meat-dairy and fish products, 30 284 46% North Kazakhstan 13 925,1 export to the EAEU

TOTAL commodity 284 453 15,0% recommended location Karaganda turnover by key products

142

Figure 3. WSM Location Astana-Karaganda road

Table 47. South-East Hub Almaty, external trade South-East Hub Almaty

Share Geography of trade with from Region Region Volume per Commodity the EAEU KZ dominant volume, annum, tonnes dominant trade sector trade tonnes %

Fruits and vegetables, 87 606 12,5% Almaty City 10 954,1 imports from the EAEU

Fruit products, export to East 80 553 14,8% 11 925,3 the EAEU Kazakhstan ВКО

Tropical fruits and nuts, East import from EEU and re- 70 036 32,6% 22 831,3 Kazakhstan export

Meat-dairy and fish products, imports from 144 321 38,5% Almaty region 55 491,7 the EAEU Almaty Meat-dairy and fish region products, export to the 20 086 30,5% Almaty region 6 125,7 EAEU

TOTAL commodity Almaty turnover by key 402 602 21,2% recommended location region products

143

Figure 4. WSM Location Almaty Ring Road

Table 48. South Hub Shymkent, external trade South Hub Shymkent

Geography of trade Share Region Volume per Region dominant Commodity with the EAEU from KZ volume, annum, tonnes sector trade dominant trade % tonnes

Fruits and vegetables, imports 352 309 50% 177 158 from the EAEU

Fruit products, export Shymkent & 412619 76% 312 897 to the EAEU Turkestan region Shymkent Tropical fruits and city nuts, import from 76 220 35% 27 041 EEU and re-export

Meat-dairy and fish products, imports 43 472 12% Zhambyl Region 5 035 from the EAEU

144

Meat-dairy and fish Shymkent & products, export to 9 690 15% 1 426 Turkestan region the EAEU

TOTAL commodity turnover by key 894 310 47,0% recommended location Shymkent products

Figure 5. WSM Location Shymkent - Saryagash

Table 49. West Hub Aktobe external trade West Hub Aktobe-Aktau

Geography of trade Share Region Volume per Region dominant Commodity with the EAEU from KZ volume, annum, tonnes sector trade dominant trade % tonnes

Fruits and 6 vegetables, imports 68 767 10% Mangystau region 749,5 from the EAEU

Fruit products, export 6 121 1% Aktobe region Актау to the EAEU 68,8

Tropical fruits and 3 nuts, import from 27 621 13% West Kazakhstan 551,1 EEU and re-export

145

Meat-dairy and fish 30 products, imports 106 779 28% Aktobe region 376,8 from the EAEU Актобе Meat-dairy and fish products, export to 5 800 9% Atyrau region 510,8 the EAEU

TOTAL commodity turnover by key 215 087 11,3% recommended location Aktobe products

Figure 6. WSM Location Aktobe

4. Survey Results

In August the WSM consultants conducted a special survey on farmers’ opinion on potential WSM projects and value chain development measures in Kazakhstan. During the study, about 600 farmers from different sectors in all regions of Kazakhstan were surveyed. The Atameken Regional Chambers of Entrepreneurs and the regional directorates of agriculture provided assistance to the farmers’ survey. However, the largest number of responses received in Akmola, Kyzylorda and South Kazakhstan (now Turkestan) regions.

146

Table 50. Region of the respondent's location Region of the respondent's location share

Akmola region 35,2%

Aktobe region 0,2%

Alma-Ata's region 1,2%

East Kazakhstan region 0,2%

Jambyl Region 0,8%

West-Kazakhstan region 1,0%

Karaganda region 0,2%

Kostanay region 1,6%

Kyzylorda Region 40,5%

North-Kazakhstan region 0,6%

South Kazakhstan region 18,7%

Total 100,0%

More than 68% of all respondents are small farmers, not involved to value added and supply chains and not entered to market directly. At least 58% of all respondents’ business linked to breeding, and 39% to growing business. Others is a prospecting facility (food and beverages sectors), and some wholesale and retail trading companies on food market.

147

Graph 2. The size and type of business of respondents Size of reposnding companies Limited Rural Liability consumer Partnership cooperative 12% 1%

Medium farm 19% Small Farm 68%

Sector of activities Wholesale and retail Vegetable Food industry trade in growing 1% agricultural 3% products 0%

Grain, rice, oilseed Meat 37% Livestock 59%

Respondent, who is interesting on WSM project, not large and cannot supply large volumes of their production. Table 51. The scope of supply of products by respondents more The scope of supply of products by 501- less 20 21-100 101-500 than respondents 1000 1000

Fruits and berries (tons) 50,0% 12,5% 25,0% 6,0% 6,0%

Vegetables (tons) 33,3% 41,7% 16,7% 0,0% 8,3%

Flowers (thousand pieces) 100,0% 0,0% 0,0% 0,0% 0,0%

Meat and meat products (tons) 2,2% 20,1% 4,4% 5,9% 67,4%

148

Grain, oilseeds, cereals, including 5,6% 15,2% 20,2% 19,7% 39,4% rice (tons)

Semi-processed agro raw materials 0,0% 20,0% 0,0% 80,0% 0,0% (tons)

Ready-to-eat foods (tons) 55,0% 9,0% 9,0% 0,0% 27,0%

Ready-to-drink beverages (tons) 67,0% 0,0% 0,0% 17,0% 17,0%

Thus, farmers have not direct access to consuming markets – there less than 5% of all respondents able to supply to retailers. Table 52. Used agricultural product distribution channel shipment export to drop supply to to direct distributors ship Used agricultural product distribution channel wholesale buyers on retail markets abroad conditions chains ex

significant channel (over 20%) 30,1% 21,9% 31,5% 1,4%

I do not use this channel 25,8% 7,6% 24,2% 27,3%

non-priority channel (15% or less) 37,2% 10,3% 32,1% 1,3%

main channel (over 50%) 26,6% 20,5% 16,7% 1,9%

Answers of respondents 28,4% 17,9% 21,5% 4,6%

WSM location preference. In Almaty region most preferable location is Altyn Orda existing WSM. In Astana City most preferable is a existing location of food markets on Alash Road. In Shymkent City respondents prefer the territory of the SEZ Ontustik. In Aktobe City most popular location mentioned by respondents is SEZ Aktobe. Table 53. WSM locations WSM Location 1 rate 2 rate 3 rate 4 rate 5 rate

Almaty - Altyn Orda 3,3% 1,7% 8,3% 11,7% 75,0%

Almaty - North Ring (Flea Market) 23,8% 4,8% 0,0% 23,8% 47,6%

Almaty - Industrial zone in Alatau district (Avtozon district), departure 31,3% 6,3% 0,0% 6,3% 56,3% to BAKAD

Almaty - Talgar or Enbekshikazakh 38,5% 7,7% 7,7% 7,7% 38,5% district, BAKAD

Almaty - FROM Bereke, departure to 36,4% 18,2% 9,1% 27,3% 9,1% BAKAD

149

Astana - wholesale markets along 1,0% 1,0% 5,2% 12,4% 80,4% the Alash highway

Astana - departure to the Karaganda 0,0% 1,8% 8,9% 19,6% 69,6% highway

Astana - departure to Tonkeris 3,8% 0,0% 23,1% 28,8% 44,2%

Shymkent - Saryagash district with. 26,7% 13,3% 20,0% 26,7% 13,3% Zhibek-Zholy

Shymkent – SEZ ONTUSTIK 5,1% 4,2% 3,4% 9,3% 78,0%

Aktobe – SEZ Aktobe 12,5% 0,0% 16,7% 29,2% 41,7%

Aktobe - Martuk 28,6% 0,0% 28,6% 14,3% 28,6%

Karaganda - Sary Ark FEZ 28,6% 0,0% 0,0% 14,3% 57,1%

All respondents showed interest in off-take or contract farming business model with WSM in future. Graph 8. Deal model between WSM and farmers

Direct offy take contract between the direct buyer and his 47,7% farm to quality control

Rental of retail and warehouse space at the wholesale 9,7% distribution center with direct sale to consumers

Participation in the raw consortium through the service and 6,6% procurement center

Participation in a rural production cooperative under an 6,0% offtack buyer's contract

Creation of export cartel for consolidation of lots to foreign 5,6% markets

Registration on the commodity exchange and online auction 3,5% for the conclusion of futures and deliveries by lot

150

5. Export Statistics

Table 54. Export and import of the Republic of Kazakhstan on food products excluding grains 2017 year Customs 2017 year Import Price Export Price Code Commodity name Export Import USD/tons USD/tons (EAEU) tonnes USD thousands tonnes USD thousands Total 4 118 939,9 1 241 475,0 7 383 299,3 3 012 862,2 $408 $301 Meat of cattle, fresh or 0201 chilled 709,7 2 399,5 2 014,3 5 603,9 $2 782 $3 381 0202 Meat of cattle, frozen 147,5 575,9 14 064,3 38 206,4 $2 717 $3 903 0203 Fresh, chilled or frozen pork 303,5 789,9 2 393,0 4 534,5 $1 895 $2 603 Lamb or goat meat, fresh, 0204 chilled or frozen 836,6 4 210,9 44,5 306,1 $6 885 $5 034 Horse meat (horsemeat), donkeys, mules or hinny, 0205 fresh, chilled or ice cream 2,7 10,8 2 660,9 5 316,8 $1 998 $4 051 Edible offal of cattle, pigs, sheep, goats, horses, donkeys, mules or mules, 0206 fresh, chilled or frozen 1 222,0 1 683,4 3 555,3 3 886,8 $1 093 $1 378 Meat and edible offal of poultry listed in heading 0207 0105, fresh, chilled or frozen 5 954,6 9 994,9 173 765,5 148 402,2 $854 $1 679 Other meat and edible meat 0208 offal, fresh, chilled or frozen 120,3 454,7 21,5 74,8 $3 472 $3 781 Pork fat, separated from lean meat, and poultry fat, not melted or otherwise extracted, fresh, chilled, frozen, salted, in brine, dried 0209 or smoked 665,5 740,2 807,4 800,3 $991 $1 112

151

Meat and edible meat offal, salted, in brine, dried or smoked; fine meal and meal 0210 from meat or meat offal 246,6 85,1 139,3 341,4 $2 450 $345 0301 Live fish 24,3 396,6 $16 317 $0 Fresh or chilled fish, excluding fish fillets and other fish meat of heading 0302 0304 948,0 382,4 614,3 3 466,9 $5 644 $403 Frozen fish, excluding fish fillets and other fish meat of 0303 heading 0304 11 880,5 10 217,3 29 959,8 43 511,8 $1 452 $860 Fish fillets and other fish meat (including minced 0304 meat), fresh, chilled or frozen 7 354,4 40 233,5 2 711,1 4 432,9 $1 635 $5 471 Fish dried, salted or in brine; hot smoked or cold smoked fish; fine meal and meal, fish pellets, suitable for human 0305 consumption 1 307,3 1 943,9 662,8 3 286,7 $4 959 $1 487 Crustaceans, whether in shell or not, live, fresh, chilled, frozen, dried, salted or in brine; shellfish crustaceans, boiled or boiled, chilled or uncooled, frozen, dried, salted or in 0306 brine 231,7 97,7 773,9 3 490,8 $4 511 $422 Shellfish, in shell or without shell, live, fresh, chilled, frozen, dried, salted or in brine; aquatic invertebrates, 0307 other than crustaceans and 0,5 2,3 281,6 1 682,3 $5 975 $4 296 152

mollusks, live, fresh, chilled, frozen, dried, salted or in brine, fine flour

Aquatic invertebrates, other than crustaceans and mollusks, live, fresh, chilled, frozen, dried, salted or in brine; aquatic invertebrates, other than crustaceans and mollusks, smoked, not 0308 cooked or cooked 12,3 41,7 $3 405 $0 Milk and cream, non- condensed and without added sugar or other 0401 sweeteners 19 217,9 9 431,8 34 760,4 27 619,1 $795 $491 Milk and cream, condensed or with added sugar or other 0402 sweeteners 886,4 1 084,0 45 327,9 91 883,6 $2 027 $1 223 Buttermilk, curdled milk and cream, yogurt, kefir and other fermented or fermented milk and cream, condensed or not condensed, with or without added sugar or other sweeteners, with aromatic 0403 additives 6 759,1 5 903,3 32 409,6 36 130,9 $1 115 $873 Whey, condensed or condensed, with or without added sugar or other sweeteners; products from 0404 natural ingredients of milk, 89,8 180,3 8 150,7 8 314,0 $1 020 $2 008

153

with or without added sugar or other sweeteners

Butter and other fats and oils 0405 made from milk, milk pastes 342,1 1 440,1 7 016,3 26 710,6 $3 807 $4 210 0406 Cheese and curd 2 047,2 7 975,3 22 971,9 80 238,3 $3 493 $3 896 Eggs of birds, in shell, fresh, 0407 canned or boiled 19 407,8 15 600,8 3 263,2 7 781,0 $2 384 $804 Eggs of shellless eggs and egg yolks, fresh, dried, steamed or boiled, molded, frozen or otherwise preserved, with or without added sugar or other 0408 sweeteners 10,0 22,9 137,1 498,3 $3 636 $2 286 0409 Natural honey 83,1 210,8 436,8 1 854,0 $4 245 $2 536 Edible products of animal origin, not elsewhere 0410 specified or included. 57,9 61,6 $1 065 $0 0701 Fresh or chilled potatoes 271 047,5 35 750,1 46 145,6 12 802,4 $277 $132 0702 Fresh or chilled tomatoes 14 827,3 7 044,5 81 111,4 56 363,8 $695 $475 Onions, shallots, garlic, leeks and other bulbous 0703 vegetables, fresh or chilled 65 747,7 7 048,3 93 195,9 22 655,4 $243 $107 Head cabbage, cauliflower, kohlrabi, cabbage, and similar edible vegetables of the genus brassica, fresh or 0704 chilled 9 319,8 1 187,8 37 288,0 10 129,3 $272 $127 Lettuce (lactuca sativa) and chicory (cichorium spp.), 0705 Fresh or chilled 88,6 110,9 609,4 744,1 $1 221 $1 251 154

Carrots, turnips, table beets, salsify, celery root, radishes and other similar edible 0706 roots, fresh or chilled 2 709,1 606,2 30 486,2 6 163,7 $202 $224 Cucumbers and gherkins, 0707 fresh or chilled 6 238,8 5 524,7 11 400,0 6 977,0 $612 $886 Legumes, peeled or 0708 unshelled, fresh or chilled 335,7 129,0 180,6 142,3 $788 $384 Other vegetables, fresh or 0709 chilled 5 173,1 2 548,0 53 728,1 37 145,8 $691 $493 Vegetables (raw or cooked in 0710 water or steamed) frozen 363,6 178,1 3 071,0 3 361,0 $1 094 $490 Vegetables canned for short- term storage (for example, sulfur dioxide, in brine, sulfurous water or in another temporarily preservative solution), but in this form unsuitable for direct 0711 consumption 6,0 1,4 406,5 423,6 $1 042 $230 Dried vegetables, whole, cut, sliced, chopped or in powder, but not further 0712 processed 106,7 417,2 1 389,9 2 286,8 $1 645 $3 909 Legumes, dried, peeled, peeled, or unpeeled, 0713 chopped or not chipped 138 560,4 58 893,7 18 592,1 11 218,0 $603 $425 Manioc, arrowroot, salep, earthen pear, or Jerusalem artichoke, sweet potato, or sweet potato, and similar root and tuber crops with 0714 high starch or inulin content, 2,7 0,8 27,5 10,2 $372 $298

155

fresh, chilled, frozen or dried, whole or sliced

Coconuts, Brazil nuts and cashews, fresh or dried, shelled or not shelled, with or 0801 without peel 36,3 15,8 1 949,4 3 815,6 $1 957 $437 Other nuts, fresh or dried, shelled or unpeeled, with or 0802 without peel 4 279,8 2 908,7 19 377,8 35 098,0 $1 811 $680 Bananas, including 0803 plantains, fresh or dried 32 328,8 21 371,1 $661 $0 Dates, figs, pineapples, avocados, guavas, mango and mangosteen, or garcinia, 0804 fresh or dried 3 931,1 1 012,6 29 591,3 11 047,1 $373 $258 0805 Citrus fruits, fresh or dried 2 131,2 423,4 55 281,0 30 779,9 $557 $199 0806 Grapes, fresh or dried 22 627,1 1 463,4 137 814,9 95 987,4 $696 $65 Melons (including watermelons) and papaya, 0807 fresh 130 124,6 40 878,8 8 565,2 1 152,3 $135 $314 Apples, pears and quince, 0808 fresh 1 810,3 501,5 145 452,8 62 561,4 $430 $277 Apricots, cherries and cherries, peaches (including nectarines), plums and 0809 thorns, fresh 18 558,5 603,0 104 908,5 99 556,9 $949 $32 0810 Other fruits, fresh 8 202,3 689,2 67 892,6 44 817,2 $660 $84 Fruits and nuts, whether or not cooked in boiling water 0811 or steamed, frozen, with or 2,4 5,6 1 043,7 1 864,1 $1 786 $2 346

156

without added sugar or other sweeteners

Fruits and nuts, preserved for short-term storage (for example, sulfur dioxide, in brine, sulfurous water or in another temporarily preservative solution), but in this form unsuitable for direct 0812 consumption 293,6 97,7 $333 $0 Dried fruits, except for fruits of commodity items 0801 - 0806; mixtures of nuts or 0813 dried fruits of this group 3 211,9 824,3 63 083,2 36 668,4 $581 $257 Peel of citrus fruit or melon peel (including watermelon peel), fresh, frozen, dried or preserved. for short stored in brine, sulphureous water or others. temporarily 0814 preservative solution 1,3 7,2 $5 560 $0 Coffee, roasted or non- roasted, caffeinated or decaffeinated; coffee husks and shells of coffee beans; coffee substitutes containing 0901 coffee in any proportion 0,9 9,9 1 003,2 6 676,1 $6 655 $10 610 Tea with or without aromatic 0902 additives 1 864,2 8 886,1 33 268,8 122 794,6 $3 691 $4 767 0903 Mate (Paraguayan tea) 2,3 9,5 $4 057 $0 Pepper genus piper; fruits of 0904 the genus capsicum or 59,7 84,1 7 548,8 5 960,2 $790 $1 409 157

genus pimenta, dried, crushed or ground 0905 Vanilla 5,3 33,4 $6 277 $0 Cinnamon and Cinnamon 0906 Tree Flowers 0,0 0,2 77,3 136,8 $1 770 $9 286 Carnation (whole fruits, 0907 flowers and pedicels) 0,0 0,2 22,6 118,8 $5 261 $21 873 Nutmeg, mace and 0908 cardamom 0,0 0,3 12,4 61,6 $4 953 $22 015 Seeds of anise, star anise, fennel, coriander, Roman cumin, or Voloshsky cumin, 0909 or cumin; juniper berries 0,0 0,1 247,8 246,9 $996 $7 096 Ginger, saffron, turmeric (turmeric), thyme, or thyme, bay leaf, curry and other 0910 spices 81,8 116,8 1 431,6 2 170,7 $1 516 $1 428 1101 Wheat or wheat-rye flour 2 316 871,6 469 402,2 2 740,3 978,4 $357 $203 Flour from grain of other cereals, except wheat or 1102 wheat-rye 505,1 108,7 1 803,6 531,4 $295 $215 Groats, wholemeal flour and 1103 cereal granules 17 302,5 7 354,2 4 819,4 2 330,0 $483 $425 Grain cereals, processed in other ways (for example, flaked, rolled, processed into flakes, collapsed, chopped or crushed), except for rice of heading 1006; cereal seed germs, whole, rolled, flaked 1104 or ground 9 296,9 4 180,5 10 259,0 6 647,3 $648 $450

158

Flour fine and coarse, powder, flakes, potato 1105 granules 0,5 1,0 133,1 152,5 $1 146 $2 069 Flour, meal and powder of dried leguminous vegetables of heading 0713, of the core of sago palm, of root or tuber of heading 0714 or of 1106 products of group 08 123,7 155,1 $1 254 $0 Soybeans, crushed or not 1201 crushed 17 653,5 7 209,3 7 900,6 1 772,2 $224 $408 Peanuts, uncooked or not cooked in any other way, peeled or non-chopped, 1202 crushed or not chopped 469,1 117,7 8 520,7 7 234,1 $849 $251 Flour, coarse flour from seeds or oilseeds, except for 1208 mustard seeds 989,0 285,9 $289 $0 Pork fat (including lard) and poultry fat, other than that of 1501 heading 0209 or 1503 59,5 54,7 $919 $0 Fat of cattle, sheep or goats, 1502 other than fat heading 1503 80,0 92,5 733,5 531,4 $724 $1 156 Fats, oils and their fractions, from fish or marine mammals, unrefined or refined, but without changing 1504 the chemical composition 35,9 445,1 $12 397 $0 Other fats and oils, animals and their fractions, including unrefined or refined, but without changing their 1506 chemical composition 17,0 198,2 4,5 8,7 $1 920 $11 659

159

Soybean oil and its fractions, unrefined or refined, but without changing the 1507 chemical composition 17 911,9 14 349,6 6 489,2 4 884,3 $753 $801 Peanut oil and its fractions, unrefined or refined, but without changing the 1508 chemical composition 2,0 1,8 $935 $0 Olive oil and its fractions, unrefined or refined, but without changing the 1509 chemical composition 4,7 13,9 703,0 2 622,0 $3 730 $2 986 Other oils and their fractions obtained only from olives (olives), unrefined or refined, but without changing their chemical composition, including mixtures with oils 1510 from comm. pos. 1509 0,3 3,4 94,3 298,1 $3 162 $12 320 Palm oil and its fractions, unrefined or refined, but without changing the 1511 chemical composition 1 694,8 1 320,5 56 188,2 53 025,6 $944 $779 Sunflower oil, safflower or cottonseed and their fractions, unrefined or refined, but without changing 1512 the chemical composition 65 600,3 54 767,8 90 783,5 72 645,6 $800 $835 Coconut oil (frame), palm kernel oil or babassu oil and their fractions, unrefined or refined, but without changing 1513 the chemical composition 379,9 786,5 2 991,5 4 735,6 $1 583 $2 070

160

Rapeseed oil (from rapeseed, or a ring) or mustard oil and their fractions, unrefined or refined, but without changing 1514 the chemical composition 8 798,7 6 756,3 11,3 23,4 $2 061 $768 Other non-volatile vegetable fats, oils (including jojoba oil) and their fractions, unrefined or refined, but without changing the chemical 1515 composition 18 542,3 14 124,9 481,8 1 044,5 $2 168 $762 Animal or vegetable fats and oils and their fractions, fully or partially hydrogenated, transesterified, re-esterified or elaidinized, unrefined or refined, but not further 1516 processed 5 246,2 4 886,4 6 266,8 9 254,2 $1 477 $931 Margarine; edible mixtures or prepared products from animal or vegetable fats or oils or fractions of various fats or oils of this group, other than edible fats or oils or their fractions of heading 1517 1516 18 250,4 20 889,4 34 814,5 39 067,3 $1 122 $1 145 Sausages and similar products from meat, meat offal or blood, food products 1601 made from them 294,2 971,5 29 733,1 59 818,7 $2 012 $3 303

161

Other prepared or preserved meat, meat offal or blood 1602 products 1 114,4 3 535,9 5 349,7 12 403,1 $2 318 $3 173 Extracts and juices from meat, fish, crustaceans, mollusks or other aquatic 1603 invertebrates 3,2 9,2 $2 860 #ДЕЛ/0! Prepared or canned fish; sturgeon caviar and its substitutes made from fish 1604 eggs 892,3 2 122,6 7 480,9 16 830,4 $2 250 $2 379 Crustaceans, molluscs and 1605 other aquatic invertebrates 477,6 1 575,5 374,8 2 002,8 $5 344 $3 299 Cane or beet sugar and chemically pure sucrose, in 1701 solid state 37 939,1 18 562,8 452 432,7 217 465,0 $481 $489 Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups without added flavoring or coloring matter; artificial honey, mixed or not 1702 mixed with natural honey 18 273,9 5 803,6 7 935,7 4 844,0 $610 $318 Molasses resulting from the 1703 extraction or refining of sugar 5 923,9 434,5 $73 $0 Sugar confectionery (including white chocolate) 1704 that does not contain cocoa 27 089,6 38 207,1 35 639,6 67 351,6 $1 890 $1 410 Cocoa paste, non-fat or non- 1803 fat 87,9 58,2 $662 $0 1804 Cocoa butter, cocoa fat 25,8 187,4 $7 265 $0

162

Cocoa powder without added 1805 sugar or other sweeteners 84,8 182,3 1 305,7 2 937,5 $2 250 $2 150 Chocolate and other prepared foods containing 1806 cocoa 15 458,0 40 336,7 56 567,9 169 522,9 $2 997 $2 609 Pasta, whether or not cooked, with filling (from meat or other products) or without filling, or prepared by other means, such as spaghetti, pasta, noodles, cones, dumplings, ravioli, 1902 cannelloni; couscous 24 936,9 13 994,2 35 475,9 46 295,7 $1 305 $561 Tapioca and its substitutes prepared from starch, in the form of flakes, granules, pellets, grains or other 1903 similar forms 2,1 6,8 0,7 3,8 $5 117 $3 199 Prepared foods obtained by swelling or roasting grains of cereals or cereal products (for example, corn flakes); cereals (except corn grain) in the form of grain or in the form of flakes or grain, 1904 otherwise processed 376,0 808,0 5 914,1 8 084,3 $1 367 $2 149 Bread, flour confectionery, cakes, cookies and other bakery and flour confectionery products, whether or not containing cocoa; wafer wafers, empty 1905 capsules suitable for 10 028,2 18 936,4 75 337,9 136 116,3 $1 807 $1 888

163

pharmaceutical use, wafer wafers

Vegetables, fruits, nuts and other edible parts of plants, prepared or preserved with the addition of vinegar or 2001 acetic acid 338,6 327,9 7 195,9 5 973,0 $830 $968 Tomatoes, prepared or preserved without the addition of vinegar or acetic 2002 acid 1 119,4 851,4 23 223,7 18 160,6 $782 $761 Mushrooms and truffles, prepared or preserved without the addition of 2003 vinegar or acetic acid 1,0 2,7 2 996,5 2 450,6 $818 $2 876 Other vegetables, prepared or preserved, not added with vinegar or acetic acid, frozen, other than products 2004 of heading 2006 104,0 25,9 9 029,4 8 394,6 $930 $249 Other vegetables, prepared or preserved, not added with vinegar or acetic acid, not frozen, except for products of 2005 heading 2006 690,0 1 433,0 28 992,2 42 678,7 $1 472 $2 077 Vegetables, fruits, nuts, fruit peels and other parts of plants preserved in sugar (soaked in sugar syrup, 2006 candied or glazed) 23,5 7,1 398,7 519,8 $1 304 $302

164

Jams, fruit jelly, marmalades, fruit or nut mash, fruit or nut paste, obtained by heat treatment, including with the addition of sugar or other 2007 sweeteners 612,7 773,6 10 715,7 14 754,3 $1 377 $1 263 Fruits, nuts and other edible parts of plants, prepared or otherwise preserved, whether or not containing added sugar or other sweeteners or alcohol, not elsewhere specified or 2008 included. 1 152,9 2 944,3 29 976,2 63 782,9 $2 128 $2 554 Fruit juices (including grape must) and vegetable juices, unfermented and not containing added alcohol, with or without added sugar 2009 or other sweeteners 961,0 633,1 36 053,2 33 900,7 $940 $659 Extracts, essences and concentrates of coffee, tea or mate, or Paraguayan tea, and finished products based on them or based on coffee, tea or mate, or Paraguayan tea; roasted chicory and other roasted coffee substitutes and extracts, 2101 essences 1 645,6 8 553,7 8 979,0 44 424,3 $4 948 $5 198 Yeast (active or inactive); other dead unicellular 2102 microorganisms (except 211,2 123,5 6 195,6 6 653,6 $1 074 $585

165

vaccines of heading 3002); Ready Baking Powders

Products for the preparation of sauces and ready-made sauces; flavoring and seasoning mixed; mustard 2103 powder and finished mustard 5 628,7 6 211,1 45 177,3 59 674,7 $1 321 $1 103 Soups and broths ready and preparations for their preparation; homogenized 2104 compound prepared foods 356,8 1 032,4 5 806,6 9 685,8 $1 668 $2 894 Ice cream and other types of edible ice, not containing or 2105 containing cocoa 693,5 1 451,9 9 247,9 20 328,6 $2 198 $2 094 Food products not elsewhere 2106 specified or included. 823,1 6 076,1 22 383,6 118 328,2 $5 286 $7 382 Waters, including natural or man-made minerals, carbonated, without added sugar or other sweetening or flavoring agents, ice and 2201 snow 1 202,8 247,9 4 454 756,4 13 214,0 $3 $206 Waters, including mineral and carbonated, containing additives of sugar or other sweetening or flavoring substances, and other non- alcoholic beverages, with the exception of fruit or vegetable juices of heading 2202 2009 94 995,7 36 051,4 102 085,9 57 401,2 $562 $380 2203 Malt beer 8 732,5 3 179,8 64 047,2 31 862,6 $497 $364 166

Natural grape wines, including fortified; grape must, except as indicated in 2204 heading 2009 239,0 562,7 19 520,5 50 315,9 $2 578 $2 354 Vermouth and other grape natural wines with the addition of vegetable or 2205 aromatic substances 0,0 0,0 1 701,4 2 318,8 $1 363 $3 044 Other fermented beverages (apple cider, perry [pear cider], honey drink); mixtures of fermented beverages and mixtures of fermented beverages and non-alcoholic beverages, not elsewhere 2206 specified 624,2 270,9 1 295,4 1 515,9 $1 170 $434 Vinegar and its substitutes 2209 derived from acetic acid 0,8 3,6 986,6 797,2 $808 $4 412 Flour, meal and pellets of meat or meat by-products, fish or crustaceans, molluscs or other aquatic invertebrates, unsuitable for human consumption, 2301 cracklings 410,9 255,7 644,3 889,4 $1 380 $622 Bran, grains, dozens and other residues from sifting, grinding or other methods of processing grain of cereals or legumes, non-granulated 2302 or granulated 242 831,7 17 023,6 243,3 189,8 $780 $70 Cigars, cigars with cropped 2402 ends, cigarillos and 6 820,6 90 984,4 12 274,4 113 130,2 $9 217 $13 340

167

cigarettes from tobacco or its substitutes Other manufactured tobacco and manufactured tobacco substitutes; tobacco 'homogenized' or 'recovered'; tobacco extracts and 2403 essences 137,9 1 278,7 3 797,2 30 267,8 $7 971 $9 274 Salt (including table salt and denatured salt) and sodium chloride, pure, dissolved or not dissolved in water, as well as containing additives 2501 agents, sea water 320 765,2 16 025,9 41 161,9 5 824,0 $141 $50

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6. DOMESTIC MARKET PRICES

Table 55. Wholesale prices from farmers (without transport), trading to Almaty

Price KZT (VAT Product Period Place of Origin excluded) per 1 kg Cucumber June 2018 134 South Kazakhstan, Sary Agash Sweet Pepper June 2018 55 South Kazakhstan, Sary Agash Tomatoes June 2018 134 South Kazakhstan, Sary Agash Egg plants June 2018 150 South Kazakhstan, Sary Agash Zucchini (squash) June 2018 85 South Kazakhstan, Sary Agash Cabbage June 2018 38 South Kazakhstan, Sary Agash Potatoes June 2018 10 North Kazakhstan, Kostanai Onion June 2018 40 Zhambyl Oblast, Taraz Radish June 2018 24 South Kazakhstan, Shymkent Beet June 2018 48 Pavlodar Region Carrot June 2018 54 Pavlodar Region Apricot June 2018 160 Almaty, Chunja district Water melon June 2018 42 South Kazakhstan, Sary Agash Mellon June 2018 290 South Kazakhstan, Sary Agash Plum June 2018 55 South Kazakhstan, Shymkent Apples June 2018 225 Zhambyl Oblast, Taraz Apples June 2018 135 South Kazakhstan, Sary Agash Cherry June 2018 440 Almaty, Chunja district Almaty, Talgar and Enbekshikazakh 322 Strawberry June 2018 Districts Almaty, Talgar and Enbekshikazakh 350 Raspberries June 2018 Districts

169

Appendix D Feedback on the Proposals of the Draft Master Plan

Feedback from Prime Capital Altyn Orda. Comments to the ADB report:

• Taking into account higher capital costs (160 million euros) and the effect of traffic cannibalization, what is the economic effect of constructing a new Wholesale Distribution Centre in Almaty? Based on the figures, the construction of a new WDC is inappropriate when compared with modernization of the current WDC Altyn Orda in terms of invested funds and the existing traffic, as well as terms on the repayment of funding. • How will the state get a return on investment? What is the economic effect for the state? In practice, this can be a loss-making project for the state budget, while the state’s participation in the project for price stabilization will be ineffective, as the administrative leverage has no the appropriate effect in pricing. • How will prices be regulated in the new WDC? The Mizam example: it was built to ensure minimum prices in the city, but in fact it was only on paper - on the price tags for formal statistics, while the goods were sold hidden at higher prices. They offered areas with no rental and other benefits to traders, but they were unable to attract traffic. As a result, the project was recognized as a failure and the Akimat is planning to close this market. • Price stabilization in wholesale markets is difficult due to the shadow component; unless there is an active player, small and medium market participants would prefer to work in the shadow. Therefore, implementation of the state price stabilization programs through them will be impossible, as their flows are not supported by documents, they have no a sufficiently large guaranteed sustainable sales market and no infrastructure for supply to large networks, as well as no possibility to provide guarantees for returning the state funds. • As for recommendation on cooperation with the Bishkek markets – we already cooperate with Dordoi Food – we have created a joint venture between Altyn Orda and Dordoi for customs clearance services, whitewashing the whole flow of vegetable and fruit traffic coming to Altyn Orda from Dordoi Food. • Wholesale and retail trade cannot be separated! This will increase the cost of the chain and will become a negative factor in the formation of the general traffic and infrastructure load. The current market structure is not ready for such a change, it has not yet reached European equivalents with clear division - with only horeca and small stores in the wholesale markets; large networks have their own DC, farmers work strictly on order through cooperatives that can afford the construction of the largest DCs with advanced technologies (cold chain, etc.). • Import substitution is possible only for limited positions – roots from the soup set and apples are what can be stored (build warehouses with the regulated gas environment for apples, but it is quite expensive, and vegetables need warehouses with temperature and humidity control). Or arrange the production of tomatoes, cucumbers, peppers, eggplants in greenhouses (these are very capital-intensive projects and high competition from Uzbekistan and China). Seasonal vegetables, fruit and stone fruit that do not grow massively in the RK are imported from Uzbekistan and China and it is difficult to substitute them: bananas, citrus fruit, pomegranate, persimmon, peppers, peaches, apricots, grapes, various types of greens, nuts, exotic fruit and so on. It is not appropriate to create infrastructure for their storage during the offseason. • In order to unite farmers, it is not enough to create a storage infrastructure for them at the WDC and provide them with comprehensive services – starting from seeds

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and ending with shelves, providing marketing, funds for planting crops based on the order indicating the products quantity/quality/grade, providing agro-support (given very low professional level of the majority of farmers in the Republic of Kazakhstan). We attach the scheme, which we have proposed to the Ministry of Agriculture and supported by this Ministry. At the moment we are negotiating with the NASEC regarding agro-support pilot projects. Direct financing of farmers from the state or financial institutions bears high risks of non-repayment due to the lack of guaranteed sales markets and control over the work of the farmers. • What is the basis for the WDC – has the Ministry of Agriculture confirmed the requirements for the WDC and its description outlined in the report? • Within ABEC, the most relevant and effective project connecting the traffic of the Kyrgyz Republic and further the Republic of Kazakhstan and the Russian Federation is the construction of a trade and logistics center based on the Kordai market (Barys- 2). This project can be discussed separately from the modernization of the Altyn Orda market. • The supplier of fruit and vegetables to the Magnum network works directly with the farmers, where possible, excluding intermediaries and providing service level on supply and quality according to the network standards. As a result, the price on the shelf in the Magnum network is minimal, thus ensuring higher competitiveness compared to other networks. At the same time, when working directly with farmers, the supplier assumes all risks, gradually forming a pool of professional farmers who can ensure quality throughout the whole year, regardless of the seasonality of work of certain farmers. • The Metro network mentioned in the report occupies only 2-5% of the Almaty market, the same is with the Ramstore. • As for Section 10.1: the construction of a new WDC can draw up to 20-30% of traffic, with 160 million euros of investment, profitability will be… • As for Section 11: for long-term storage facilities (for 4-6 months in the off-season) only for root crops - the demand for Almaty is about 50 thousand tons. This volume is located on approximately 75 thousand m2, up to 30 hectares of land. At the same time, there are high risks of goods loss for technical reasons.

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