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Spain: Andalusian auxiliary industry promotes itself in Kazakhstan

A total of seven Andalusian companies from the sector of the auxiliary industry for agriculture have travelled to Kazakhstan to promote their products in the framework of a direct commercial mission to the country, organised by the Ministry of Economy and Knowledge from 25 to 27 September in Almaty and Astana.

The commercial mission will allow these Andalusian firms to identify the business opportunities existing in the Kazakh market, as well as to present their services both to the public administrations and the private sector.

Kazakhstan is the largest economy in Central Asia and one of the countries with the largest reserves of oil, uranium, silver, coal, iron and gold. Its GDP is generated mainly by hydrocarbon extraction and its auxiliary industry (50%), mining and its auxiliary industry (25%) and, thirdly, by agriculture and livestock (5%), a sector that employs 25% of the total population.

Greenhouse agriculture has been booming in the country since the end of 2013, when the acreage ​amounted to ​up to 720 hectares, where vegetables worth more than two million dollars are produced.

The southern region accounts for 87 percent of the country's greenhouses, with exports of agricultural products grown under plastic worth more than $ 300 million. In regions like Almaty and Karaganda there are also several projects of interest in the framework of the government's sector development plan (Agrobusiness 2020), such as the construction of ten greenhouse complexes with a total area of ​​314,000 square metres and capacity to produce 22 tonnes of vegetables per year.

This plan provides new support tools in the form of subsidies, insurances and secured loans, as well as measures to improve the poor technical conditions of current irrigation infrastructures or the state of agricultural machinery in use, which is currently reaching the end of its life cycle in 80% of cases.

Some of the objectives of this plan are to ensure that agriculture has a more relevant role in the national economy, so that it can account for 10% of the GDP; facilitate funding to producers and restructure the debt of entrepreneurs; give a boost to services and auxiliary sectors, such as irrigation, fertilizers, etc.; expand the acreage of arable land and become a leading exporter of horticultural products.

Andalusian companies in the mission
The Andalusian firms that have participated in the mission are mostly from Almeria (Criado y López, IDM, Inagro Gestión Agrícola, and New Growing System); as well as Seville (Viveros Orero and Laser Guadalquivir); and Cádiz (Hefe). The organization of this action by Extenda will be co-financed with funds from the European Union.

Andalusia is the fourth most important Spanish region when it comes to agricultural exports overseas in the first seven months of 2017, with a total of 386 million Euro sold from January to July, representing a growth of 8.7 percent over the same period last year.

Almeria leads the sector's foreign sales, with 26 percent of the total; that is, 101 million Euro exported in the first seven months of 2017, which is 8.6 percent more than in 2016. Next in the ranking are Seville, with 71 million, 18.3 percent of the total and an increase of 20.7 percent; Cordoba, with 68 million, 17.7 percent of the total; Malaga, with 41 million, 10.5 percent of the total and an increase of 70 percent; and Jaen, with 34 million, 8.8 percent and an increase of seven percent.

Andalusian agriculture's auxiliary industry sector exports mainly plates, sheets and foil, with 106 million sold; 27.5 percent of the total and a growth of 12.4 percent compared to the first seven months of 2016; oilseeds and industrial plants, with 96 million; 24.8 percent of the total and an 18.8 percent growth; and fertilizers, with 71 million, 18.4 percent of the total and an increase of 7.6 percent.

As for the main export destinations, the most noteworthy are European markets such as France, where sales from January to July 2017 have been worth 76 million, representing 19.6 percent of the total; or Portugal, with 57 million sold; 14.9 percent of the total. In third place is Morocco, with 24.6 million, 6.4 percent; followed by the United Kingdom, with 23.3 million, six percent of the total, and Italy, with 20.6 million, 5.3 percent.

Exports to Kazakhstan
For its part, Kazakhstan appears as a market with great potential for growth for Andalusian agriculture's auxiliary industry sector, as revealed by the fact that in the first seven months of 2017, exports have multiplied by six compared to the same one period of 2016, when shipments were worth 453,000 Euro.

The region of Andalusia is the Spanish sector's third largest exporter to Kazakhstan, with 14.9 percent of the total and the highest growth out of the ten biggest exporters. What Kazakhstan mainly buys from Andalusia is machines for cleaning and sorting, with 99 percent of the total, i.e. 450,000 Euro sold from January to July. The rest corresponds to oilseeds and industrial plants.

Source: Europa Press

Publication date: 10/2/2017


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