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Changing competitiveness of the wheat sector of Kazakhstan and sources of future productivity growth

Author: Longmire, J.L.
Author: Moldashev, A.
Year: 1999
ISSN: 0258-8587
URI: http://hdl.handle.net/10883/983
Abstract: Economic incentives in Kazakhstan have been radically reshaped since the Soviet era ended in 1991. In the first phase of transition, the economy and agricultural sectors declined by 40-50%. Overall economic growth refused in 1966, and agriculture is likely to enter a recovery phase soon. The economy of Kazakhstan is undergoing rapid structural change, and agriculture is experiencing strong inter-sectoral competition. The change to market-oriented and commercially-driven agriculture has altered fundamentally the incentives faced by Kazakhstan's wheat farmers. They have reduced use of inputs sharply because of the need to pay market prices for fertilizer, fuel, and other inputs, while severely curtailing investment in machinery and their farms generally. There is considerable potential for productivity improvements and adoption of new technologies in the wheat production and marketing sectors. Farmers are likely to resume investment only slowly and are likely to adopt only those changes that are low cost and which are based on low-input methods of production. Assessed under 1998 conditions, these wheat growing methods are about 20% more competitive than the energy and input-intensive technologies of the Soviet era. Because of the new commercial pressures brought on by the opening of the Kazakhstan economy to global market, the production methods of the Soviet era are no longer relevant to Kazakhstan's wheat farmers. A fundamental change of thinking and approach to the situation faced by farmers is required in research, extension, training and education. They new commercial circumstances of agriculture call for strategic analysis of the future for Kazakhstan's farming and of related policies, research and education. Action is required in this areas to reinvigorate Kazakhstan's agriculture, and programs should commence as soon as possible. The future for wheat in Kazakhstan is promising, providing there is concerted and strategic change in the mindsets, culture, and approaches of those working in and supporting the wheat industry.
Format: PDF
Language: English
Publisher: CIMMYT
Serie: CIMMYT Economics Working Paper
Copyright: CIMMYT manages Intellectual Assets as International Public Goods. The user is free to download, print, store and share this work. In case you want to translate or create any other derivative work and share or distribute such translation/derivative work, please contact CIMMYT-Knowledge-Center@cgiar.org indicating the work you want to use and the kind of use you intend; CIMMYT will contact you with the suitable license for that purpose.
Type: Book
Country focus: Kazakhstan
Region: Central Asia
Place of Publication: Mexico
Pages: 50 pages
Serie Number: 99-06
Agrovoc: ECONOMIC ANALYSIS
Agrovoc: ECONOMIC DEVELOPMENT
Agrovoc: CROP PRODUCTION
Agrovoc: RESEARCH PROJECTS
Agrovoc: ECONOMIC ANALYSIS
Agrovoc: ECONOMIC DEVELOPMENT
Agrovoc: CROP PRODUCTION
Agrovoc: RESEARCH PROJECTS


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This item appears in the following Collection(s)

  • Socioeconomics
    Including topics such as farming systems, markets, impact & targeting, innovations, and GIS
  • Wheat
    Wheat - breeding, phytopathology, physiology, quality, biotech

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