UGH Creation

    General informations

The United Grain Holding (UGH) was established pursuant to the instructions of the Head of the State, announced on January 27, 2012, in the Address to the People of Kazakhstan, "Socio-economic modernization - main vector of development of Kazakhstan", and at the enlarged meeting of the Government of the Republic of Kazakhstan dated January 23, 2013.

The UGH was created on June 21, 2013, by concluding the contract on joint cooperation (Contract) between the NC Food Corporation JSC and Union of Farmers of Kazakhstan SPA, in the form of a simple partnership, i.e. unincorporated.

Participation in the UGH is open and voluntary, any member of the grain market has the right to join the UGH and withdraw from it (in the order prescribed by the Contract).

The UGH members have equal rights, as well as retain their legal and economic independence. Participation in the holding does not involve contribution by its members of financial deposits, assets or other fees, including for the maintenance of the authorities of the UGH.

The joint cooperation within the UGH is confined in the production of grain, its subsequent sales on the domestic and foreign markets and distribution of the revenues among the members of the UGH.

At the time, 110 grain producers from 7 regions of Kazakhstan, which are small and medium-sized farms with the acreage from 200 to 20 000 ha, are members of the UGH. Of them, the vast majority, or about 80% are small farms with the acreage of up to 5000 ha. Today, the total sown area of the grain producers, who have joined the UGH, is about 440 thousand hectares. 

 
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    THE CONCEPT OF THE BUSINESS OF THE UGH.pdf

    503кб

    Contract on Cooperation within the United Grain Holding.pdf

    230кб

    Regulations on the Public Council on the grain market.pdf

    295кб

 

 

List of the members of the UGH

 

NO

Name of the district

Name of the Farm

Date of signing the Agreement

Agreement No.

AKMOLA REGION

1

Akkol district

Iskra CF 

13.09.2013

0005

2

Diaz CF 

13.09.2013

0006

3

Novorybinskiy and Co. LLP

13.09.2013

0004

4

AF Novomarkovka-2002 LLP

14.02.2014

0065

5

Arshaly district

Yenbek-1 LLP

23.08.2013

0002

6

Balashov CF

13.09.2013

0007

7

V. P. Pitkovkiy CF

13.09.2013

0017

8

P. Y. Pitkovskiy CF

13.09.2013

0018

9

TNS-Agro LLP 

13.09.2013

0023

10

Mikhaylovskoye LLP

03.10.2013

0030

11

Astrakhan district

Dostyk-06 LLP

13.09.2013

0008

12

Sagadatov CF

14.02.2014

0106

13

Atbasar district

Bastau LLP

14.02.2014

0088

14

Yerementau district

Novomarkovka-2010 LLP

13.09.2013

0022

15

Zhaksy district

Shanyrak Agro - 2030 LLP

03.10.2013

0054

16

Zharkayin district

Darin CF

03.10.2013

0029

17

Zher 1 LLP

03.10.2013

0048

18

Dikhan 4 LLP

03.10.2013

0049

19

Inter CF

14.02.2014

0062

20

Tabys VCC

14.02.2014

0058

21

Urozhai GP

14.02.2014

0059

22

Zerendi district

AF Kara-ozek LLP

03.10.2013

0055

23

Narol LLP

03.10.2013

0056

24

Korgalzhin district

AF Taldy LLP

14.02.2014

0067

25

Tselinograd district

Akhmediya LLP

23.08.2013

0001

26

Manshuk-AE LLP

23.08.2013

0003

27

Iskakovs CF

13.09.2013

0009

28

Saturn CF

13.09.2013

0012

29

Tugan Zher CF

13.09.2013

0013

30

Akzhol CF

13.09.2013

0014

31

Sayadyr CF

13.09.2013

0021

32

Urozhainiy CF

13.09.2013

0025

33

Alimbet CF

13.09.2013

0027

34

Yesenzhol N LLP

13.09.2013

0015

35

Semyenovka-AE LLP 

13.09.2013

0019

36

Nura-2011 LLP

13.09.2013

0020

37

AF Rodina LLP

13.09.2013

0024

38

Shalkar LLP

13.09.2013

0026

39

AF Aktyk JSC

13.09.2013

0016

40

Akshanyrak CF

03.10.2013

0032

41

Rauan CF

03.10.2013

0035

42

Kadam NS LLP

03.10.2013

0034

43

Yen-Dala LLP

14.02.2014

0057

44

Shortandy district

Zolotaya Niva CF

13.09.2013

0011

Total in Akmola region:: 44 ACP

AKTOBE REGION

45

Algi district

Petrovka-1 CF

14.02.2014

0102

46

Martuk district

RAD-Agro LLP

14.02.2014

0100

47

Chromtau district

Akzhar-Agro LLP

14.02.2014

0101

Total in Aktobe region: 3 ACP

EAST-KAZAKHSTAN REGION

48

Borodulikhin district

Sakhnovskoye LLP

14.02.2014

0063

49

Glubokovskiy district

Agrofirm Serov and Co. LLP

14.02.2014

0061

50

Zyriyanovskiy district

Moyildi Baykonyr LLP

14.02.2014

0089

51

Nivy Tchapayevo LLP

14.02.2014

0090

52

OHMK Plus LLP

14.02.2014

0091

53

Shemonaikhinskiy district

Rulikha LLP

14.02.2014

0094

Total in the East-Kaz region: 6 ACP

KARAGANDI REGION

54

Ulytau district

Kengir CF

14.02.2014

0060

Total in Karagandi region: 1 ACP

KOSTANAY REGION

55

Arkalyk

Arshaly LLP

03.10.2013г.

0050

56

Shokan CF

14.02.2014г.

0064

57

Auliekol district

Aman CF

14.02.2014г.

0074

58

A. A. Guchigov CF

14.02.2014г.

0066

59

A. A. Kuanyshbayev CF

14.02.2014г.

0107

60

Plemzavod Sulukol LLP

14.02.2014г.

0108

61

Zhitikara district

AF Khaidar LLP 

13.09.2013г.

0010

62

Kamysty district

Myrza CF

03.10.2013г.

0038

63

Omir-2005 LLP

03.10.2013г.

0039

64

Agrofirm Karabatyr LLP

03.10.2013г.

0028

65

Karasu district

V. M. Lukashev CF

14.02.2014г.

0080

66

Buturlia CF

14.02.2014г.

0092

67

B. Nurgaliyev CF

14.02.2014г.

0104

68

Mendikari district

B. S. Mukhambetov CF

14.02.2014г.

0105

69

Naurzum district

Samryk CF

03.10.2013г.

0045

70

V. Y. Garashov CF

03.10.2013г.

0046

71

Syrymzhan CF

03.10.2013г.

0047

72

Yesmagzam Omarov CF

03.10.2013г.

0053

73

Kusemis LLP

03.10.2013г.

0052

74

B. Z. Ismadiyarov CF

14.02.2014г.

0073

75

P. I. Buga CF

14.02.2014г.

0078

76

S. S. Seliaykh CF

14.02.2014г.

0079

77

Yermukhanov CF

14.02.2014г.

0072

78

N. N. Kozlov CF

14.02.2014г.

0093

79

G. F. Karimova CF

14.02.2014г.

0096

80

Dana CF

14.02.2014г.

0103

81

Zhito LLP

14.02.2014г.

0081

82

Taranovskiy district

Zhiger CF

03.10.2013г.

0040

83

Shapagat CF

03.10.2013г.

0042

84

Adlet-T LLP

03.10.2013г.

0041

85

AF Kolos-II LLP

03.10.2013г.

0043

86

Uzunkol district

Miras CF

14.02.2014г.

0097

87

Obagan Village CF

14.02.2014г.

0098

88

A. K. Karabayev CF

14.02.2014г.

0099

89

Nadezhda CF

14.02.2014г.

0095

90

V. A. Slesar CF

14.02.2014г.

0109

Total in Kostanay region: 36 ACP

PAVLODAR REGION

91

Zhelezinskiy district

Toktushakov CF

03.10.2013г.

0051

92

Irtysh district

Niva CF

14.02.2014г.

0068

93

Zamandas CF

14.02.2014г.

0069

94

Zamandas Farm

14.02.2014г.

0070

95

Nur CF

14.02.2014г.

0071

96

Kornleben CF

14.02.2014г.

0085

97

Nan CF

14.02.2014г.

0086

98

Nam CF

14.02.2014г.

0087

99

LLP named after Abay

14.02.2014г.

0084

Total in Pavlodar region: 9 ACP

NORTH-KAZAKHSTAN REGION

100

Akkayin district

Salut LLP

14.02.2014г.

0076

101

Zhambyl district

Yegin Zhai Zerno LLP 

14.02.2014г.

0075

102

District named after G. Musrepov

Y. K. Beysenov CF

03.10.2013г.

0031

103

ZhigerKokshe Farm

03.10.2013г.

0033

104

Bais Farm

14.02.2014г.

0077

105

Aliyans CF

14.02.2014г.

0110

106

District named after M. Zhumabayev

Zhetisu Zher LLP

14.02.2014г.

0082

107

Torgai Amangeldi LLP

14.02.2014г.

0083

108

Kyzylzhar district

Alti-Garant LLP

03.10.2013г.

0044

109

Shal Akyn district

Yertaev CF

03.10.2013г.

0036

110

Musa CF

03.10.2013г.

0037

Total in the North-Kaz region: 11 ACP

TOTAL: 110 ACP

             

 

 News of the UGH

 

The United Grain Holding to be established in Kazakhstan

      24.06.2013 

 

The Agreement on cooperation within the United Grain Holding was concluded on June 21, 2013, in the National Managing Holding KazAgro. Hence, all the organizational arrangements on the foundation of the United Grain Holding are completed.

The Agreement was concluded between the National Company Food Contract Corporation and the Union of  Farmers of Kazakhstan Republican Association. The public association which represents the interests of the national grain producers, appeared as one of the authors of the document and became the first participant of the grain market to sign the Agreement.

The Agreement on cooperation was concluded within implementation of the instructions of the Head of the State concerning establishing of the United Grain Holding, which were given in his Address to the People of Kazakhstan dated January 27, 2012, as well as during the extended meeting of the Government of the Republic of Kazakhstan dated January 23, 2013.

As reflected in the document, the United Grain Holding shall be created on the principles of voluntary and equitable association of the participants of the grain market maintaining their judicial and economic independence, in order to achieve the following aims:

1) Ensuring the grain producers – participants of the Agreement with priority access to the financing of spring-field and harvesting works, as well as the guaranteed sale of grain in the autumn period at the market price;  

2) Sales of grain and further distribution among the grain producers – participants of the Agreement, of part of the net profit from the activities of the Food Contract Corporation;

3) Creation and development of the facilities of the infrastructure of storage and export and transshipment of grain.

The concluded Agreement creates a legal base to attract grain producers to enter and participate in the activities of the United Grain Holding. In order to represent the interests of the participants of the Agreement the Public Council on grain market created at Food Contract Corporation. The Public Council is aimed to ensure the balance of interests of the participants of the Agreement when decisions are made by the Food Contract Corporation's bodies.

Issues regarding determination of the volume and price of the grain purchased, determination of the grain selling price, as well as approving the size and terms of distribution among the grain producers – participants of the Agreement, of the net profit of Food Contract Corporation, are subject to mandatory approval by the Public Council.

Representatives of the Ministry of Agriculture of the Republic of  Kazakhstan, Holding KazAgro and Atameken Union National Economic Chamber of  Kazakhstan took part in the ceremony of signing the document. 

During the action it was noted that in order to expand the board of participants of the Agreement it is planned to carry out an awareness raising activities in July by organizing a series of meetings of the representatives of Food Contract Corporation, Union of Farmers of  Kazakhstan and Regional Akimats with the grain producers of the main grain growing regions of the country. Meetings shall be aimed to explain the key aspects of creating the grain holding, as well as explaining the main provisions of the Agreement on cooperation in order to attract the grain producers to participate in the joint cooperation.

 

The head of Community council on grain market is elected "Food corporation" NC" JSC 

03.07.2013

Within the activities of the United grain holding (UGH) the first meeting of the Community council on grain market of "Food corporation" NC" JSC was held. The meeting was held in "KazAgro" National management holding.

The members of the Council considered the issues of organization of further activities of the Community council, formation of Action plan for the 2nd half of 2013, and elected the Chairman and secretary of the Council.

By unanimous decision of the members of the Council The First deputy of the Chairman of "Atameken" Union" National economic chamber of Kazakhstan Rakhim Oshakbayev was elected as Chairman of the Community council.

Furthermore, in order to expand the participants of the United grain holding the members of the Council discussed the necessity to develop conditions of households entrance into the United grain holding and exit, as well as information and explanation works conducting among grain producers of main grain-sowing regions. The mentioned work is planning to carry out in July of the current year through organization of onsite meetings with grain producers jointly with  "Food corporation" NC" JSC, "Union of farmers of Kazakhstan" Republican community union, "Atameken" Union" National economic chamber of Kazakhstan and regional akimats.

The issues of grain market condition and perspectives of price conjuncture for the period till the end of the current marketing season also were discussed at the first meeting of the Council.

The Community council of grain market was established in order to present interests of participants of the agreement of joint activities closed on June 21, 2013 between "Food corporation" NC" JSC and "Union of farmers of Kazakhstan" Republican community union. The Council includes representatives of all categories of grain market participants, "Atameken" Union" National economic chamber of Kazakhstan and Majilis of the Parliament of RK.

The Community council aims to balance the interests of participants of the Agreement upon development and taking decisions by bodies of Food Corporation. Such issues as definition of volume and price of purchased grain, definition of sale price of grain, as well as approval of amount and terms of distributions among grain producers – participants of the Agreement of net profit of Food Corporation are subject to mandatory consultation with the Community Council.

We note, that on June 21, 2013 organizational actions were completed on creation of the United grain holding. The agreement on joint activities within the UGH was closed between "Food corporation" NC" JSC and "Union of farmers of Kazakhstan" Republican community union.

As it was noted, the Agreement was closed within the instructions of the Head of the state on creation of the United grain holding given in the Address to the people of Kazakhstan dated January 27, 2012, and at the expended meeting of the Government of RK dated January 23, 2013. The document is establishing a legal basis for attraction of grain producers to enter and participate in operation of the United grain holding.

 

Awareness raising activities to attract landowners to the United Grain Holding have begun

 

24.07.2013

From July 12 to 23, 2013, in the Akmol village, Tselinograd district, Stepnyak, Enbekshilder district, and Atbasar,  Atbasar  district, Akmola region, NC Food Contract Corporation JSC, The Union of Farmers of Kazakhstan and NECK Atameken Union held the first itinerant meeting within the awareness raising activities to attract the grain producers to participate in the United Grain Holding (UGH), joined in that effort by the Akmola region akimat. The meetings were held in accordance with the plan of measures on establishing and organizing the UGH, approved by the first Deputy Prime-Minister B. Sagintayev.

During the meetings the landowners obtained detailed explanations on the advantages of joining the UGH. These are the following: the prioritized access to the spring-summer financing, the guaranteed purchase of the produced grain, participation in sharing the revenues from its sales, absence of the membership fees, freedom of joining and cessation of participation etc.


Statements were made by the representatives of the Food Contract Corporation, the Union of Farmers of Kazakhstan and the regional akimat. The landowners in turn were given the opportunity to ask their questions and express their thoughts on further organization of the activity of the UGH. The meetings were held in the manner of the constructive and fruitful dialogue.

 It is necessary to note that the experience gained within the meetings held shall be widely used in holding further awareness raising itinerant meetings in other regions.

 

Reference

The United Grain Holding was established on the commission of the Head of the State, announced in the last year's Address to the people of Kazakhstan "Socio-economic modernization – main direction of development of Kazakhstan", as well as during the enlarged meeting of the Government of the Republic of Kazakhstan in January this year.

The UGH was established on 21 June 2013 by concluding the Contract on cooperation between the Food Contract Corporation and the Union of Farmers of Kazakhstan.

The Public Council of the Food Contract Corporation consisting of the representatives of the NECK Atameken Union, Union of Farmers of Kazakhstan and other public organizations, aimed at ensuring protection of the interests of the grain producers – participants of the UGH, was established and has already held its first meeting within the contract.

 

 The United Grain Holding included new members

 29.08.2013

As a result of the awareness raising work done in the regions of the country on establishing the United Grain Holding (UGH) the first applications from the farms to join the Holding started coming to the Food Contract Corporation.

That way, three applications from the farms of Akmola region were approved by the decision of the Public Council meeting dated August 16, 2013 No. 3 and the appropriate contracts were signed.

On August 23 of this year at the enlarged meeting of the board of the Food Contract Corporation with participation of its regional branches and subsidiary companies, the certificates of joining the UGH were presented to the representatives of these farms in the ceremonial setting.    

- I was invited to the very first meeting of the awareness raising group of Food Contract Corporation in the Akmol village, Akmola region. Generally, I liked the idea of the United Grain Holding. Food Contract Corporation as our permanent partner always supports us financially. At the same time, it is not enough to sow and   grow harvest, it should be effectively sold. In this regard Food Contract Corporation and the UGH will play key roles, - Timur Pshenov noted, Director of the Akhmediya LLP, one of the first members of the Holding.  

Moreover, the issues of preparing the regional representative offices and bread depots of the Food Contract Corporation to receiving the 2013 harvest were discussed at the meeting, as well as plans of activities of the UGH in the 2013-2014 marketing year.

 

New members in the United Grain Holding 

12.09.2013

On September 11, 2013, on the regular meeting of the Public council on the grain market of the NC Food Contract Corporation JSC which was held at the Atameken Union NECK, the issues of the current state and perspectives of development of the grain market in 2013 were discussed, and 24 applications to enter the United Grain Holding (UGH) from farms were reviewed.

All the applications were approved. On the grounds of the Decision of the Public council Food Contract Corporation had signed the appropriate contracts on cooperation with the grain producers.

Moreover, at this time another 37 applications to enter the UGH from the agricultural commodity producers filed in to Food Contract Corporation for approval.

 

Y. K. Zikirin elected a member of the Public Council on the grain market of the NC Food Contract Corporation JSC

30.09.2013

On September 30, 2013 the regular meeting of the Public Council on the grain market was held, on which the application of A. S. Barlaubayev was considered on cessation of participation in the Council. He was representing the interests of the members of the United Grain Holding (UGH) from the North-Kazakhstan region.  

As is known, in September this year Akan S. Barlaubayev was appointed head of one of the branches included in the group of companies of the NC Food Contract Corporation JSC.

The Union of Farmers of Kazakhstan nominated Y. K. Zikirin for the vacant position.

Yeltai K. Zikirin is head of the Poltavskoye CF. His candidacy was supported by the members of the Meeting held by the branch of the Union of Farmers of Kazakhstan in the North-Kazakhstan region and recommended to be elected to the Public Council on the grain market for representing the interests of the members of UGH from the North-Kazakhstan region.    

Y. K. Zikirin elected member of the Public Council on the grain market of the NC Food Contract Corporation JSC by the decision dated September 30, 2013.

Moreover, the applications to join the UGH from the grain producers of the Akmola, Kostanay and Pavlodar region were considered at the meeting of the Public Council.

 

56 grain producers joined the United Grain Holding since it was founded

04.10.2013

As of October 1, 2013 56 grain producers joined the Holding. 

These are 36 agricultural commodity producers from Akmola region, including 19 Limited Liability Partnerships, 16 Collective farms, 1 Joint-Stock Company; 14 agricultural commodity producers from Kostanai region (7 Limited Liability Partnerships, 7 Collective farms); 1 Collective farm from Pavlodar region; 5   agricultural commodity producers from North-Kazakhstan region (1Limited Liability Partnership, 3 Collective Farms, 1 farm). 

The total sowing area of the members of the UGH is 252 660 ha, from which 191 994 ha – in Akmola region, 52 019 ha – In Kostanai region, 5 527 ha – In Pavlodar region, 3 120 ha – In North-Kazakhstan region.

The United Grain Holding (UGH) was founded on June 21, 2013 and operates on the basis of the Contract on cooperation concluded between NC Food Contract Corporation JSC and Union of Farmers of Kazakhstan RPA. Grain producers join the Holding by signing the Contract of adhesion to the UGH with NC Food Contract Corporation JSC.

 

The United Grain Holding admits new members

14.02.2014

On February 13, 2014 the regular meeting of the UGH Governing council was held.

54 grain producers' applications to enter the UGH were considered and approved at this meeting. Thus, to date 110 grain producers with the total cereal acreage of 436,8 ha have joined the UGH.

Moreover, members of the Governing council discussed the current situation on the grain market, and the prospects of further cooperation and development of the UGH.