Yerkin Tatishev’s Kusto Group Signs Major Investment Deal with US-based Tyson Foods
Kusto Group has signed an agreement with US-based Tyson Fresh Meats, Inc., the beef and pork division of Tyson Foods, and the Republic of Kazakhstan on a project that will include the construction of a beef processing facility in Kazakhstan. The new modern processing facility will have an anticipated harvest capacity of 2,000 head per day.
Kusto Group's signs deal with Tyson Foods
On December 9, 2019, Kazakh Prime Minister Askar Mamin, Steve Stouffer, group president Tyson Fresh Meats, and Yerkin Tatishev, chairman of the board of directors of Kusto Group met at the Arkansas headquarters of Tyson Foods to sign the landmark agricultural investment deal.
The agreement between one of the world's largest food companies, the Kazakh government and a leading local beef producer is projected to provide an annual agricultural economic benefit to the country well in excess of one billion dollars (USD) and marks the largest deal in the country's agricultural sector since its independence in 1991.
This deal is an important collaboration between the private sector and the government of Kazakhstan that will bring new technologies and best practices improving the country's agricultural production and will lead to the creation of thousands of sustainable and skilled jobs.
"We are delighted to welcome Tyson Foods to Kazakhstan," stated Prime Minister Mamin. "Tyson is a world-class company with the expertise necessary to help Kazakhstan jump-start the transformation of our agro-protein capabilities and help us create an ecosystem that will increase our beef herd size and establish conditions to support thousands of new high-quality jobs in the country. We look forward to a long and mutually beneficial collaboration."
Investment deal is a milestone for Kazakhstan
The investment of a global leader in protein production in Kazakhstan represents an important vote of confidence in the modernization and development of the country's agricultural sector and in the economy in general. Tyson Foods has recognized Kazakhstan's potential to become a leading producer of beef for domestic and international markets.
"At Kusto, we believe in the tremendous potential of Kazakhstan to transform into a global agricultural player, helping provide first class products for consumers around the world," stated Yerkin Tatishev, chairman of the board of directors, Kusto Group. "Together with Tyson Foods, we are taking a first step in that direction today with our beef operations and look forward to getting underway".
Kazakhstan's continued efforts to attract foreign investors have been successful and this agreement will likely make others in the industry to take notice of the country's growth and expansion potential for business investment.
"Kazakhstan is differentiating itself from the rest through innovation, attracting international investors and heading towards the front the pack (of emerging economies worldwide)," says Yerkin Tatishev, Chairman of the Board of Directors of Kusto Group.
An agricultural revolution in Kazakhstan
Kazakhstan is the ninth largest country in the world. Its location in Central Asia means that it is close to large potential export markets in China, Russia and the Middle East. The country's government has identified the livestock and protein export industry as a key growth market.
This agreement between Tyson Foods, Kusto Group and the Kazakh government represents efforts to expand and modernize the country's underdeveloped agricultural sector, beginning with the beef production industry.
"We're pleased to execute an agreement with the Government of Kazakhstan and partner with Kusto," stated Steve Stouffer, group president Tyson Fresh Meats. "This opportunity supports one of our growth strategies to expand Tyson's global business, and we look forward to bringing our expertise and capabilities to the country of Kazakhstan."
Kusto Group aims to make Kazakhstan a leading player in global agriculture.
Kazakhstan's agricultural sector is currently experiencing a rejuvenation and Kusto Group has been a driving force in bringing investments and new technologies to establish the components required for a modern, sustainable industry. The Singapore-based holding company which operates in multiple sectors across multiple countries has roots in Kazakhstan.
"At Kusto, we are convinced of the value of partnerships and sharing best practices," says Tatishev. "Over the past 12 months, we have inked a series of investment partnerships with leading US firms to bring state-of-the-art farming methods and agricultural technology to Kazakhstan."
Earlier this year, Kusto Group signed a joint venture with US-based Valmont Industries, a leading producer of modern irrigation systems. The companies will work together to build an irrigation system production plant in Kazakhstan. Only seven percent of the country's arable land is currently irrigated. With vast open spaces of fertile, rich soil, the implementation of modern irrigation techniques will have a transformative effect on Kazakhstan's harvest potential.
The company has implemented a new protein strategy within its own Kazbeef operations aimed at raising the standards of the livestock industry across the country, making Kazakhstan one of the world's leading producers of high-quality beef.
Kusto Group' Kazbeef was the first to import superior breeding stock of Hereford and Angus cattle from the United States and has used leading genetic methods to establish the foundation of a premium quality beef herd. The company recently expanded its own operation with the construction of a new processing facility in the Akmola region of the country.
"This latest deal with Tyson is a great achievement for this strategy and the product of many months of hard work," said Yerkin Tatishev. "Most importantly, this deal will have an incredible impact on the lives of many Kazakhstanis in rural areas that need it most. It is all part of the modernisation, diversification and rebalancing of the Kazakh economy that is currently taking place to put the country on the path of sustainable growth."