International cooperation

Today cooperation with foreign countries is carried out by Holding in several directions.

Cooperation concerning delivery of livestock production.

JSC KazAgroProduct cooperates on delivery of domestic livestock production with 11 countries of the foreign and neighboring countries, such as Russia, Ukraine, Belarus, Uzbekistan, Kyrgyzstan, Tajikistan, the United Arab Emirates, China, Turkey, Germany and Italy.

The main countries, on which first of all JSC KazAgroProduct production in a foreign market is focused, are Russia (meat and meat production, wool), Belarus (wool), Ukraine (wool), the People's Republic of China (wool, raw leather) and the European Union countries (raw leather and semi-finished products).

Cooperation with the international financial institutions.

The JSC National Operating Holding Kazagro has long experience of successful cooperation with leading international financial institutions.

Cooperation is carried out within bilateral loans on crediting of subjects of agrarian and industrial complex, export financing for purchase of various agricultural machinery and the equipment, replenishment of current assets and commercial purchase of grain.

Affiliated joint-stock companies of Holding honestly make repayments of a principal debt and remuneration on external loans according to repayment schedules.

Partners of group of companies of Holding are: Islamic Development bank, Program of development of the UN, BNP Paribas, HSBC Group, Societe Generale, RBS, Natixis, Citibank, LandesBank Berlin, Rabobank, Commerzbank.

Cooperation concerning delivery of agricultural machinery and the equipment.

For development of agro-industrial complex of the republic, JSC Kazagrofinance carries out systematic work on adjustment of the long-term relations with foreign countries - leading global manufacturers of equipment and the equipment for agriculture. Among suppliers there are known brands, as KLAAS (Germany), John Dir (USA), the Agrotechnology (USA), Grimm (Germany), SNSh America (USA), Agrotek (Germany), ST Agro (Germany), Agromashholding (Russia), Aypi Consult (USA), KAHAM of Endzhins (Canada) and others.

Cooperation on export of the Kazakhstan grain. Kazakhstan possesses considerable potential on grain export. Annually Kazakhstan realizes for export 6-8 million tons of wheat on the average , including about 2 million tons of a flour. The main directions of export of the Kazakhstan grain are CIS countries, the European Union, the Middle East and North Africa.The Kazakhstan grain is in steady demand thanks to the high quality, percentage of a gluten in grain of the third class makes 23-28%.

Participation in joint ventures

Grain terminal and milling complex in Baku port (Republic of Azerbaija)

In order to increase export of Kazakhstan grain and products of its processing to strategic important markets of Caspian countries and countries adjacent to it within implementation of investment projects "Construction of milling complex in Baku port" and "Construction of grain terminal in Baku port" a "Baku Grain Terminal" LLC joint Kazakhstan-Azerbaijan venture was established.

In project implementation from Kazakhstan side participated – "Ak Biday Terminal" JSC

– a subsidiary of "Food contract corporation" National company" JSC (included in "KazAgro" NMH" JSC) (50%) and from Azerbaijan side – "Planet-L" LLC (50%).

Grain terminal was commissioned in 2007, milling complex – in 2009.

Annual capacity of grain terminal is 350 thousand tons, productivity of milling complex – 500 tons of flour daily.

In 2012 through grain terminal 27 787 tons of grain were transferred.

 

Grain terminal in Amirabad port (Islamic Republic of Iran)

In order to further development of transport infrastructure of Kazakhstan grain export to perspective market of Iran and further to the markets of Persian region within investment project "Construction of grain terminal in Amirabad port (Islamic Republic of Iran)" a joint Kazakhstan-Iran venture was established – "Amirabad Grain Terminal" LLC.

From Kazakhstan side in the project participated – "Ak-Biday Terminal" JSC (50%), from Iran side – "Behdiz Tedzharat Alborz" LLC (50%).

Grain terminal in Amirabad port (Iran) was commissioned in the first half of 2010.

Annual capacity of the terminal is up to 700 000 tons of grain.

Transfer volume in 2012 amounted 650 354 tons of grain.

 

 

Feed lot and pedigree reproductive farms

In 2010 a subsidiary company of "KazAgro" Holding – "KazAgroOnim" JSC jointly with "GlobalBeefInvestorsLLC" American company started implementation of investment project "Establishment of feed lot with up to 5 000 head of cattle with developed infrastructure and two pedigree reproductive farms with up to 1000 mother head of cattle each" in Mamay village of Enbekshildersk district of Akmola region.

The project is included into Industrialization map of Kazakhstan for 2010-2014. Project implementation period – 2010-2011. Capacity of feed lot – production of up to 900 tons of meat annually.

Within the project implementation in order to accelerate development of meat livestock and increase meat cattle number, as well as improve quality indicators (average daily additional weight, increase of meat output from a carcass) Hereford and Angus strains of cattle were imported from USA (North Dakota) in number of 1347 heads.

Within the project the modern intensive technologies were introduced providing cattle keeping in light facilities and open lots. Application of this technology results in high adaptability that significantly decreases investments for construction and maintenance works and costs of powers and labour resources, bringing to reduction of ready products in price.

 

Memorandums (Protocols) signed jointly with foreign companies

Astana protocol

On March 17, 2011 the "Astana" Protocol was signed between "KazAgro" National management holding" JSC and John Deere International, Eurasia Group AG companies.

Within the Protocol a joint implementation of investment projects in crop production and livestock is planning. John Deere International and Eurasia Group Ltd. will provide projects with necessary consulting of experts, inform "KazAgro" National management holding" JSC on the last developments and innovations in agriculture, provide training courses for operators and mechanics.

John Deere International American company is a leading world manufacturer of agricultural machines, and Eurasia Group Ltd. is an official distributor of John Deere International in the Republic of Kazakhstan.

 

Protocol of intentions on cooperation with Toyota Tsusho Corporation

On November 15, 2010 the Protocol of intention on cooperation between "KazAgro" National management holding" JSC and Toyota Tsusho Corporation

Japanese company was signed to provide stable development of agriculture and adjacent industries in Kazakhstan.

In accordance with the Protocol the analysis of Kazakhstan grain market and products of its processing is carried out, that will be a basis for further bilateral cooperation, including on implementation of joint projects in agro-industrial complex.

The Protocol of intentions on cooperation also provides activation of work on grain export to the markets of South-East Asia countries and its transit through the territory of China.

 

Memorandum on mutual understanding with SAMSUNG C&T CORPORATION

On April 22, 2010 within the state visit of the President of the Republic of Kazakhstan Nazarbayev N.A. 

in the Republic of Korea the Memorandum on mutual understanding was signed between "KazAgro" National management holding" JSC and South Korean SAMSUNG C&T CORPORATION.

The objective of the Memorandum is development of Kazakhstan grain export to the markets of Korea, China and South-East Asia.

Together with the Ministry of agriculture of the Republic of Kazakhstan and SAMSUNG C&T CORPORATION within the Memorandum the measures are taken on Kazakhstan grain delivery to the Republic of Korea and countries of the South-East Asia.

In 2010 the meetings were taken of the management of "KazAgro" Holding with the representatives of SAMSUNG C&T CORPORATION, subsidiaries of the Holding and "Grain Union of Kazakhstan" Association of legal entities to discuss issues if the foregoing Memorandum implementation. During the meetings the representatives of SAMSUNG C&T CORPORATION were get acquainted with potential possibilities of Kazakhstan grain export to the Republic of Korea and countries of South-East Asia.

 

Memorandum on mutual understanding with COFCO

On April 9, 2008 within the visit of the Prime-minister of the Republic of Kazakhstan Massimov K.K. to the People's Republic of China the Memorandum on mutual understanding was signed between "KazAgro" National management holding" JSC and      

large China national cereals oils & foodstuffs imp & exp Corp. (COFCO), a main holder of quotas for food wheat import in China.

The objective of the Memorandum is a bilateral cooperation on expansion of Kazakhstan wheat export to China and establishment of condition for transit to the third countries.

In accordance with the Memorandum the subsidiary company of the Holding "Food contract corporation" National company" JSC in 2009 made a test supply of food wheat to Chinese market in amount of 24 tons. By results of this wheat grinding the Chinese flour mills gave a high evaluation of quality to the Kazakhstan wheat.

 

Perspective investment proposals for foreign investors

Passport of the Investment Project

«Creation of the Poultry Farm with the Capacity of up to 12 000 ton in Akmolinskaya oblast»

Location: Akmolinskaya oblast, Zerendinskiy region, near Akkol village

Applicant: "Saryarka Kus" LLP

Branch: Poultry Farm Construction

Type of products: Poultry meat

Project capacity: 12 000 ton a year

Project value: KZT9 424.43 mln. (USD63.2 mln.)

Investments required: KZT8 010.76 mln. (USD53.72 mln.)

Implementation period: 2013 – 2023

Payback period: 8.3 years

Summary of the Project implementation phase: Project had been approved by the Credit Committee of "KazAgroFinance" JSC on 09.07.2012.

 

Passport of the Investment Project

«Arrangement of the Combine Assembly Production in Akmolinskaya oblast with the Capacity of up to 300 Units a Year»

Location: Akmolinskaya oblast, Kokshetau city

Applicant: "Combine Factory Vector" LLP

Branch: Assembly Production

Type of products: "Vector" combines

Project capacity: 300 combines a year

Project value: KZT4 305.44 mln.(USD28.87 mln.)

Investments required: KZT3 372.44 mln. (USD22.61 mln.)

Implementation period: 2013-2022

Payback period: 10 years

Summary of the Project implementation phase: Project is being considered by "KazAgroFinance" JSC. The Applicant had purchased the production facilities with the land plot for the Project implementation for his own account.

 

Passport of the Investment Project

«Construction of the Sunflower Storage and Processing Plant with the Capacity of 7 400 ton oil per Year»

Location: West-Kazakhstan oblast, Terektinskiy region, Poima village (20 km near the oblast centre)

Applicant: "Batys Kunbagys" JSC

Branch: Agricultural Product Processing

Type of products: Refined Sunflower and Safflower Oils and Their Fractions

Project capacity: 7 400 thousand litres a year

Project value: KZT2 592.03 mln. (USD17.38 mln.)

Investments required: Floating assets of KZT200 mln. (USD1.34 mln.)

Implementation period: 2008 – 2017

Payback period: 10 years

Summary of the Project implementation phase: Project "Batys Kunbagys" JSC - is not operating due to the lack of the floating assets for purchase of the raw stock (sunflower seeds).

 

 Passport of the Investment Project

«Modernization of the Milk Processing Plant»

Location: Zhambylskaya oblast, Zhualynskiy region, B. Momyshuly village, 17, Koktem Street (60 km from Taraz)

Applicant: "Burnenskiy Cheese Plant" LLP

Branch: Agricultural Product Processing

Type of products: Milk products (cheese, butter, brynza, chechil, milk)

Project capacity: 15 500 ton a year

Project value: KZT227 mln. (USD1.52 mln.)

Investments required: KZT122 mln. (USD0.81 million)

Implementation period: 2009-2017

Payback period: 7 years

Summary of the Project implementation phase: Regarding the Project as of today the production of cheese, butter, brynza and chechil has been arranged. It is required to additionally complete the existing equipment in order to start up the milk production line, and the floating assets.

 

Passport of the Investment Project

«Leather Raw Stock Processing and Sale»

Location: Kostanaiskaya oblast, Arkalyk city, industrial zone, meat plant

Applicant: "Umut" LLP

Branch: Agricultural Product Processing

Type of products: Leather products

Project capacity: 1 440 ton a year

Project value: KZT143.3 mln. (USD0.96 mln.)

Investments required: KZT80 mln. (USD0.53 mln.)

Implementation period: 2009 – 2016

Payback period: 3 years

Summary of the Project implementation phase: Regarding the Project "Umut" LLP - "Leather Raw Stock Processing and Sale" - as of today the operation of the plant has been stopped due to the lack of customers and the raw stock, in view of that the founders of LLP and the Shanghai founders are negotiating now