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Farm restructuring and agricultural recovery in Kazakhstan's grain region: An update

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  • Petrick, Martin
  • Wandel, Jürgen
  • Karsten, Katharina

Abstract

Against the rising global concern of how to achieve sustainable output expansion in food, we document the main outcomes of post-Soviet agricultural recovery and restructuring in the Kazakhstan grain region. Together with an expansion of cropland area and increasing capital input, real agricultural value added has almost doubled within the recent decade. Privatisation legislation has allowed private ownership of land. However, access to state land and capital continues to be strongly regulated, and private lenders even turn away from agriculture. There are now three dominant groups of agricultural producers in the region: large agricultural enterprises and smaller individual farms mostly engaged in grain, and tiny household economies focusing on vegetable and live-stock. While agricultural enterprises have been growing more persistently than individual farms in recent years, average land productivity of both farm types is practically identical and wheat yields are even higher in individual farms. Both vertically and horizontally integrated agroholdings have emerged among the agricultural enterprises and have brought outside investment and management to the region. With stable employment in agriculture, nominal consumption spending of rural households has tripled over the last decade and has risen much faster than the costs of living. While North Kazakhstan looks much like a success story, constrained factor markets are likely to dampen further growth. The Kazakh government should improve the legal conditions for a functioning land rental market, avoid driving commercial lenders out of the market, and make sure that future access to qualified labour in agriculture is warranted.

Suggested Citation

  • Petrick, Martin & Wandel, Jürgen & Karsten, Katharina, 2011. "Farm restructuring and agricultural recovery in Kazakhstan's grain region: An update," IAMO Discussion Papers 137, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
  • Handle: RePEc:zbw:iamodp:137
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    References listed on IDEAS

    as
    1. Kym Anderson & Johan Swinnen, 2008. "Distortions to Agricultural Incentives in Europe's Transition Economies," World Bank Publications, The World Bank, number 6502.
    2. Pomfret, Richard, 2007. "Distortions to Agricultural Incentives in Kazakhstan," Agricultural Distortions Working Paper 48360, World Bank.
    3. Martin Petrick & Michael R. Carter, 2009. "Critical masses in the decollectivisation of post-Soviet agriculture," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 36(2), pages 231-252, June.
    4. Lerman, Zvi*Csaki, Csaba*Feder, Gershon, 2002. "Land policies and evolving farm structures in transition countries," Policy Research Working Paper Series 2794, The World Bank.
    5. Reardon, Thomas & Barrett, Christopher B. & Berdegué, Julio A. & Swinnen, Johan F.M., 2009. "Agrifood Industry Transformation and Small Farmers in Developing Countries," World Development, Elsevier, vol. 37(11), pages 1717-1727, November.
    6. Koester, Ulrich & Petrick, Martin, 2010. "Embedded institutions and the persistence of large farms in Russia
      [Die Bedeutung eingebetteter Institutionen für den Fortbestand landwirtschaftlicher Großbetriebe in Russland]
      ," IAMO Discussion Papers 131, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
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    Citations

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    Cited by:

    1. Rajag M. Nag & Johannes F. Linn & Harinder S. Kohli (ed.), 2016. "Central Asia 2050: Unleashing the Region's Potential," Books, Emerging Markets Forum, edition 1, number centasia2050, August.
    2. repec:zbw:espost:176829 is not listed on IDEAS
    3. Tothova, Monika & Meyers, William H. & Goychuk, Kateryna, 2013. "Productivity growth and variability in KRU: evidence and prospects," Proceedings Issues, 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152378, International Agricultural Trade Research Consortium.
    4. Oshakbayev, Dauren & Taitukova, Regina & Petrick, Martin & Djanibekov, Nodir, 2016. "Kazakhstan’s cotton sector reforms since independence," Samarkand Conference 2016 249956, Institute of Agricultural Development in Central and Eastern Europe (IAMO).
    5. Petrick, Martin & Wandel, Jürgen & Karsten, Katharina, 2013. "Rediscovering the Virgin Lands: Agricultural Investment and Rural Livelihoods in a Eurasian Frontier Area," World Development, Elsevier, vol. 43(C), pages 164-179.

    More about this item

    Keywords

    agricultural transition; farm organisation; Kazakhstan; agricultural productivity;

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P32 - Economic Systems - - Socialist Institutions and Their Transitions - - - Collectives; Communes; Agricultural Institutions
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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