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Kazakhstan-US Agribusiness Partnership of the Kusto Group

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(Credit: US-Kazakh collaboration in the field of agribusiness may be forthcoming.) US-Kazakh collaboration in the field of agribusiness may be forthcoming.
June 29
11:55 AM 2022

Kusto Group founder Yerkin Tatishev said Kazakhstan was long considered one of the breadbaskets of the Soviet Union. The country's social, economic, and environmental development depends heavily on agriculture. 

Kazakhstan has strengthened its agribusiness collaboration with the United States for many years. Furthermore, both the USA and Kazakhstan saw the need to explore opportunities and prospects for growing the agribusiness sector.

Kazakhstan and the United States have emphasized agribusiness's tremendous potential, specifically crop production, protein production, and mechanized irrigation. The aim is to develop an excellent bilateral relationship.

Collaboration between the US and Kazakhstan is on the horizon.

Growing bilateral relations between the USA and Kazakhstan have created confidence in developing Kazakhstan's agribusiness sector. The United States has provided financial incentives.

In addition to economic integration, trade has also been a strategy for strengthening ties between the two countries.

Supporting agriculture activities is the best way to bring together ambassadors, ministers, and business associates from the USA and Kazakhstan. The goal is to increase Kazakhstan's economic production and improve trade among countries.

From what source does the US seek to do business with Kazakhstan?

In addition to manufacturing, the United States has significant interests in agribusiness, transport, logistics, and engineering. As a result of the robust and active partnership, direct investments have gradually increased to record levels.

Additionally, the countries are on the verge of restoring key indicators that level out the country's total inflow of investments. Both countries have successfully cooperated in the energy sector.

Given Kazakhstan's enormous natural resources, agriculture and renewable energy offer significant prospects for improving ties. As it improves its relations with Kazakhstan, the United States continues to look for opportunities to further its interests.

The Kusto Group and US-Kazakh diplomatic relations

Kazakhstan has invested over 54 billion dollars in companies contributing to its economy for the last 30 years. As a result of the statistics provided, over 600 American companies operate in Kazakhstan, indicating a favorable business climate.

Enhancing the strong partnership between the US and Kazakhstan is still a critical issue to be discussed. As a result, new reforms help improve the business environment in different sectors of the economy.

The Kusto Group cooperated with Wendy's to open 65 restaurants in Kazakhstan, Uzbekistan, and Georgia. Kusto Group anticipates creating 1450 jobs in response to the many upcoming Wendy's restaurants.

What opportunities are there for US companies in Kazakhstan agriculture?

In addition to helping Kazakhstan's agriculture, US companies enjoy substantial opportunities to export their products. The United States exports sprayers, reapers, seeders, tractors, grain combine harvesters, and cultivators to Kazakhstan.

Using modern technologies has been the influencing factor for the new opportunities. Kazakhstan has become an increasingly important market for US food exports such as poultry, beef, seeds, and beverages.

The large imports of poultry meat, cane sugar, and black tea from Kazakhstan give USA room for growth. As a result, the excellent relationship and strong partnerships between Kazakhstan and the United States can benefit their agribusiness activities.

During the economic decline caused by Covid-19, Kusto Group took great action.

Countries have faced tremendous challenges since the advent of Covid-19, resulting in a decline in their economies. Introducing strict policy measures to cap the virus significantly reduced external outflows.

The pandemic put high pressure on significant economic sectors and development finance sources.

As a result of the pandemic ripple effect, most industries closed due to fears of a decline in investment. There was also a reduction in financing for specific sectors of the economy due to the virus.

In response, Yerkin Tatishev and the Kusto Group acted. In Ukraine and Kazakhstan, the group donated food and medical supplies to hospitals. 

Ernst & Young named him Entrepreneur of the Year for his commitment to philanthropy.

By polishing the future approaches, entrepreneurs and the country can regain economic strength. It can also boost bilateral relations between nations.

Improving access to finance for agribusiness.

Financing is essential to enhancing agribusiness inclusivity and developing entrepreneurship. Affordability of funds empowers farmers and eases the financing activities of agribusiness.

Farmers can increase their capital and food production, which is the goal of ensuring world food security.

Accessing finance is crucial to starting productive investments and developing a country's economy. Government loans can stimulate and support economic growth.

Consequently, agriculture needs access to finance to scale up operations and generate far-reaching incomes for various people. Additionally, this will mitigate the challenges of engaging in agribusiness activities in better ways essential to uplifting the country's economy.

Kusto Group's activity in five sectors

Yerkin Tatishev established the Kusto Group in 2002. The company has five divisions: agriculture, oil, gas, real estate, and building materials. Kazakhstan has a unique opportunity to become a global leader in agriculture, according to Tatishev. 

In his view, bilateral ties allow governments to take advantage of opportunities and build solid relationships with other countries. Furthermore, citizens of certain countries can benefit from trading with businesses from friendly nations, which will enhance their economies.

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