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The Grain Holding in action - the press service of the Union of Farmers Kazakhstan
Members of the United grain holding should have priority in financing of the sowing campaign this year, according to the Union of Farmers of Kazakhstan. The Managing Council of the UGH has developed specific proposals on financing of the spring-field works (SFW).
One of the proposals is that the financing of the members of the UGH should be carried out on the basis of the whole declared sown area.
- It's no secret that due to lack of funds Akimats often “spread” the allocated funds between all farms of the region and as a result a particular farmer does not receive the required 6000 tenge per 1 ha, but much less. Therefore, the members of the UGH have to be financed separately, not according to the lists formed by the coordinating councils of Akimats, but directly according to the UFK register, according to the head of the Union of farmers Auezkhan Darinov.
As the country's main farmer notes, this way, economic stimulus will be created for the farmers to join the Unified grain holding. Since there are no restrictions for farmers to join the UGH, these measures cannot be called discriminatory against the non-members of the holding.
- Our stand is, the state should not act by administrative methods of work, wringing the farmers hands, but rather stimulate by economic levers. The proposed tool is just one of that kind, - says Darinov.
Thus, the proposed measures will allow to strengthen the trust of the farmers in the idea of the head of the state on establishing the United grain holding, attract new members to join the holding and, along with a guaranteed sales of grain in autumn, will create a solid foundation for further work of the UGH.
It should be noted that the Managing Council of the United grain holding consists of 10 members, 5 of which represent the Food Contract Corporation, the remaining 5 members of the council are the representatives of the Union of Farmers of Kazakhstan. As farmers note, both the UFK and the Food Contract Corporation are willing to work jointly to justify these proposals in the interested structures and government agencies.
Since the establishment of the UGH in June, 2013, the Union of Farmers of Kazakhstan (UFK), together with the Food Contract Corporation have been working actively to solve organizational issues and prepare to support the members of the UGH in the period of spring-field works.
The UFK and the management of the Food Contract Corporation understand, that the fulfillment of the order of the President announced in his Address to the People of Kazakhstan dated January 27, 2012, and at the enlarged meeting of the Government of the Republic of Kazakhstan dated January 23, 2013 year, depends on the effectiveness and timeliness of the support provided to the farmers who have joined the UGH.
The United grain holding admits new members
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.
The issues of purchasing price of grain and the activity of the United Grain Holding were discussed in the Government
On October 7, 2013, the meeting was held presided over by the Prime-Minister S. N. Akhmetov, on which the issues of the purchasing price for grain were discussed.
During the meeting the issues of performing of the obligations by the agricultural commodity producers to the NC Food Contract Corporation JSC on the programs of spring-summer financing of 2012-2013 were discussed, as well as purchase of grain into the state resources, including fodder grain of the 2013 harvest.
Having discussed the issues mentioned above, the proposal of the Ministry of Agriculture and NC Food Contract Corporation JSC was supported on fixing the purchasing price for the wheat of 3rd class into the state resources at KZT 28 000 per ton for the businesses liable to VAT and KZT 25 000 per ton for those not paying VAT.
For the formation of the commercial resources of the NC Food Contract Corporation JSC by means of delivery of grain on the programs of spring-summer financing of 2012 and 2013 (under the guarantees of the Social Entrepreneurship Corporations) the proposal was supported to apply purchasing prices analogous to that determined for the purchase of wheat of 3rd class into the state resources.
For the agricultural commodity producers wiling to perform their obligations on the above mentioned programs of financing by means of delivering barley of the 2nd class, the purchasing prices were determined at the level of the market prices, namely KZT 20 000 per ton for the business liable to VAT and KZT 17 857 for those not paying VAT.
Also at the meeting A. Darinov, Chairman of the Union of Farmers of Kazakhstan (UFK), proposed to change the way of distributing the revenues from the activity of the United Grain Holding (UGH), set forth in the Concept of activity of the UGH. According to him, most of small and medium grain producers favor distribution of revenues received as a result of the joint cooperation as the difference between the purchasing and sales price for the grain of the UGH.
At the meeting other proposals related to the activities of the UGH were discussed. Within the proposals made, the Ministry of Agriculture, Holding KazAgro, NC Food Contract Corporation JSC and UFK were committed to jointly work out and make necessary decisions aimed at increasing the effectiveness of the activities of the UGH.
56 grain producers joined the United Grain Holding since it was founded
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.
Y. K. Zikirin elected a member of the Public Council on the grain market of the NC Food Contract Corporation JSC
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.
New members in the United Grain Holding
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.
The United Grain Holding included new members
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.
Awareness raising activities to attract landowners to the United Grain Holding have begun
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.
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 head of Community council on grain market is elected "Food corporation" NC" JSC
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.
The United Grain Holding to be established in Kazakhstan
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.