DEVELOPMENT OF ANIMAL SECONDARY RAW MATERIAL MARKET AS A FACTOR OF DIVERSIFICATION OF KAZAKHSTAN'S EXPORT POTENTIAL
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1 ISSN (152)/2013 ~ 49 ~ 12. Renhar C.The aftermath of fnancal crses / C. Renhar, K. Rogoff. [Electronc source] // Natonal Bureau of Economc Research. Workng Paper Access at: Stgltz, J. Free Fallng. / J. Stgltz. Sofa, DAR, World Bank database of ndcators. [On-lne]: [web-page]. Access at: Yurchshn V. World economy and Ukrane / V.Yurchshn. [Electronc source]. Access at: yurchyshyn_global_ecnomy_2012.pdf ,..,.., " " " " -,.. -. : ; ; ; ; ;..,..,.., " " " - ",. -.. : ; ; ; - ; ;. UDK JEL Q 17 Z. Konurbaeva, PhD n Economcs, Assocate Professor, A. Zakmova, PhD n Economcs, Assocate Professor D. Serkbayev East Kazakhstan State Techncal Unversty, Republc of Kazakhstan, M. Rahkmberdnova, doctoral student, Turar Ryskulov Kazakh Economc Unversty, Republc of Kazakhstan DEVELOPMENT OF ANIMAL SECONDARY RAW MATERIAL MARKET AS A FACTOR OF DIVERSIFICATION OF KAZAKHSTAN'S EXPORT POTENTIAL Products of the recyclng of lvestock should become the most mportant part of the Kazakhstan export potental. Usng recycled materals n the fnshed producton cycle would sgnfcantly dversfy the export component of natonal agro-ndustral sector of the Republc.The artcle proposes an approach to the placement of ndustres, processng secondary raw materals n order to obtan market product wth hgh added value, whch wll result n mplementng the exstng potental of the agrcultural sector of the state. Keywords: raw materal, dversfcaton, export, economcs potental, anmal brcedng. Kazakhstan has always been consdered to be one of a largest cattle-breedng country due to ts pecular natural condtons and work sklls of local people. Up to the development of vrgn and long-fallow lands n the md-fftes country's lvestock was the man branch of agrculture. Despte the rapd development of agrculture snce developng the vrgn land, the value of lvestock n the economy of Kazakhstan s stll very hgh. Lvestock producton has been key economc actvty n Kazakhstan for centures and remans stll one of the major sources of employment, food, and earnngs of rural people. Ths branch of the agrcultural sector s tradtonal n Kazakhstan due to natonal peculartes of the populaton. Locals lvng n a vllage cannot be magned wthout ther own farms. From tme mmemoral, domestc anmals (horses, sheep, cows, camels) were the bass of the "economy of a famly" for Kazakhs. From 1990 to 1998 the consumpton of lvestock products reduced by approxmately 40%. Decreased consumers' ncome, hgh prces for anmal products due to lberalzaton of prces, nflaton, and the consumer's subsdes abolton led to a sharp declne n the consumpton of these products. Fluctuaton n the domestc market demand deterorated sharply wth reduced export markets. Export of meat, the man export product untl 1990, vrtually dsappeared after the demand n the former Sovet Unon countres fell, and meat export to other countres was dffcult due to the nland locaton of Kazakhstan, poor products qualty, lack of n nternatonal sales experence and ncreasng restrctons on trade n the regon. Compared to other Central Asan countres, the declne n the ndustry n Kazakhstan was more serous, as Kazakhstan had been the largest suppler of anmal products to the market of the Sovet Unon throughout the regon, ncludng supplyng the Mnstry of Defence, a large part of publc procurement (one of the largest meat processng plants n Sempalatnsk provded the entre Sovet Unon wth ts producton, as an example). Meat and wool processng ndustry especally n the eastern and northern regons, was hghly developed. Many of related companes worked only for export markets and lvestock producton n these regons was orented to the needs of the processng ndustry. Snce domestc demand was less the conservaton of lvestock populaton after the reform seemed less possble than n other Central Asan countres. The perod of the establshng ndependent Kazakhstan nfluenced the lvestock ndustry, so n such factors as ncrease n fuel prces, food concentrates, food addtves and veternary drugs, together wth mport growth and other macroeconomc ndcators, have led to a reducton of lvestock n the country. The total number of cattle decreased sharply from 1992 to Ths tendency vared n the regons of the country. For example, the northern regons have lost about 72% of Konurbaeva Z., Zakmova A., Rahkmberdnova M., 2013
2 ~ 50 ~ ISSN the number of sheep herds, compared to 30% n the western regon. At the same tme wth the change n lvestock at the begnnng of 1990s the lvestock producton also started to declne. From 1990 to 2000, meat producton decreased by 58%, mlk producton decreased by 31% and wool producton decreased by 78%. The number of cattle n the country has decreased from 9 to 6 mllon anmals for the past 20 years. Meat exports scored tons, and today there s hardly anythng left. Qualty characterstcs of lvestock have been deteroratng. If earler an average carcass cattle slaughter weght was 230 klograms, t has fallen to 156. The share of anmal meat n the natonal herd has decreased to 9%, and t should be rased to 50%. For example, n such exporters as the U.S. and Canada beef cattle share s 75-85% of the total populaton. Despte the declne n the lvestock sector durng the years of ndependence, Kazakhstan's cattle ndustry has a number of comparatve advantages, whch wll enable the sector to contrbute sgnfcantly to revenue growth, employment and export potental of the country. These are extensve, but lttle used pasture and hay land, flexble and cheap ndustral structure of small farms, as well as the avalablty of cheap by-product of large-scale crops (feed gran and olseeds from food crops). It seems that the further growth of the lvestock wll be due to the ndustry's ablty to realze the comparatve advantages that have occurred durng the years of ndependence. These are sgnfcant growth opportuntes n the local market n the medum term and export opportuntes n the long run. Growth of natonal ncome ncreases the demand for lvestock products n Kazakhstan. At present the export of anmal products s low, but there are some opportuntes n nche markets for hgh qualty products. The government s takng steps to mprove the qualty of the meat and to make adjustment to accepted nternatonal standards, the most mportant of whch are gven n Table 1. Table 1. Actvtes amed at the development of lvestock n Kazakhstan Name of event Showng 1 The program of development of small and medum farmers n the perod from 2011 to bllon tenge 2 Purchase of breedng anmals for meat 72 thousand tenge 3 Buldng feedng platforms 60 pcs 4 Buldng reproducers 50 pcs 5 Buldng modern centers of breedng cattle reproducton North, South, East, West 6 Fnance the frst stage of the Project 148 bllon tenge For the mplementaton of these actvtes t s necessary to develop the followng nfrastructure: veternary statons, veternary laboratores, equpment and transport, chemcal laboratores, organzng and equppng slaughter areas, personnel tranng for lvestock and provdng veternarans. Implementaton of the tasks wll export 60 tons of meat n 2015, and 120 thousand tons n Calculatons show that the Kazakh lvestock has at least fve-fold potental startng from today. The genetc potental wll rase the average daly gan to the requred 1600 grams, and the output of meat wll be 55-60%. Meat producng ndustry n East Kazahstan regon s consdered to be one of the largest branches wth a share of 11.4% n the total volume of marketable produce. The regon s referred to as a stock-rasng n agrcultural sense and has productve capacty of 38 plants for meat processng of all knds of cattle. The factors makng the regon one of the most promsng to formaton and development of meat are as follows: a postve trend of producton growth of meat of all knds of cattle; avalablty and optmal placement of slaughterhouses and meat producng busnesses; the ablty to recover large enterprses for processng anmal raw materals and the ntroducton of new producton capactes; potental foregn markets wth large demand of meat products. Enterprses that are recommended to unte n meat producton, are part of (or are themselves the bass) of large, vertcally ntegrated organzatons from the cultvaton of all knds of cattle breedng to the producton of fnshed products. It s ntended to ntroduce deep processng of meat n 11 regons and ctes n the regon, whch, of course, wll be accompaned by the output of a large number of secondary raw materals. Secondary raw materals can be further processed and used as a fnshed product or raw materal for the manufacturng products wth complete producton cycle. The bll of goods, and recycled products and anmal products and ther applcaton are qute vared: from the textle and lght ndustry to cosmetcs and engneerng. Snce the most part of the secondary raw materals s lost durng slaughter, the man ponts of collecton should be placed at meat-processng plants and slaughter grounds. The development of regonal clusters of lvestock can solve not only the problems wth meetng domestc needs, but also to expand export opportuntes n foregn markets both through the expanson of the range of meat products and through the producton of exclusve products based on recyclng. Qualty crtera are of key mportance n determnng the benefts of export of agrcultural products. Therefore, the prorty should be gven to ssues of lvestock breedng. Accordng to the studes conducted by the East- Kazakhstan Scentfc Research Insttute of Agrculture, promsng areas for pedgree sheep breedng were dentfed. Keepng lvestock breedng wll allow provdng qualty converson of sheep and then rasng ts productvty n short terms. The success of pedgree stock-breedng depends on the state of prmary and zoo techncal breedng records on a sheep farm. The proposed plan of pedgree breedng nvolves consderable fnancal nvestments and experenced personnel supply. In the process of studyng the state and prospects of anmal husbandry development n the East Kazakhstan regon the areas were classfed n order to dentfy prorty ones, whch are then to be recommended as a prorty n the processng and delvery of recycled lvestock sector.
3 ISSN (152)/2013 ~ 51 ~ The total amount of meat produced n the prorty areas of the East Kazakhstan regon Determnaton of the coeffcent of the output of the ntegrated recyclng The defnton of recyclng n the prorty areas of East Kazakhstan regon Fg. 1. The algorthm for determnng the yeld of secondary raw materals n the slaughter of cattle The algorthm nvolves the followng steps: Step 1. The volume of meat produced n the prorty areas s defned by the data of offcal statstcs. Partcularly the nformaton from statstcal collecton was used [1]. Summary nformaton on the amount of produced meat s gven n Table 2. Table 2. Amount of meat produced n the prorty areas of the East Kazakhstan regon n 2011 Groups of Areas Area Marketable meat (thousands of tons) Areas of the frst order Tarbagatay 19779,2 Urdjar 16758,9 Zharmn 13017,8 Prorty areas of the second order Abay 11850,4 Ayagoz 16034,9 Total 77441,2 Note compled by the author accordng to the East Kazakhstan Department of Statstcs Step 2 The coeffcent of the output of the ntegrated recyclng s calculated by formula % (1) S Where: average ntegrated rate of recycled materals output n varous types of lvestock slaughter C the ultmate producton of recycled materals n S total lve weght of cattle n tons Knd of lvestock () Table 3. Basc data and calculatons to determne the average rato of the ntegrated recyclng Quantty produced meat n East Kazakhstan n 2011(thousand of tons) m Recycled materals output p * Cattle lve Recycled materals weght m output, tons S * p c 0.01* * p S Cattle 58108, , ,34 Small cattle 22607, , ,156 horses 11040, , ,013 swne 9923, , ,784 Total , ,29 * - the ext rate of recycled materals of dfferent cattle types are taken from reference and normatve [2, 3, 4, 5] ,29 / *100 38,15 The calculatons showed that the ntegrated recycled output rato s 38,15% Step 3 Determne the amount of recycled materals n the East Kazakhstan prorty areas by formula (2). V M* (2) Where: V recycled materals amount M produced meat amount average ntegrated coeffcent of recycled materals output n slaughter of varous types of lvestock Table 4. Output recycled n prorty areas of the East Kazakhstan regon n 2011 (n tons) Prorty areas East Kazakhstan Meat produced, average yeld dfferental coeffcent of recycled Quantty recycled areas tons, 2008 materals materals (V=M* ) tons ** Tarbagatay area 19779,2 7547,504 Urdjar area 16758,9 6394,994 Areas of the frst order Zharmn area 13017,8 0, ,435 Abay area 11850,4 4521,969 Areas of the second order Ajagoz area 16034,9 6118,724 Total 77441, ,63 * Data taken from East Kazakhstan offcal statstcs ** calculated by the author
4 ISSN (152)/2013 ~ 51 ~ The total amount of meat produced n the prorty areas of the East Kazakhstan regon Determnaton of the coeffcent of the output of the ntegrated recyclng The defnton of recyclng n the prorty areas of East Kazakhstan regon Fg. 1. The algorthm for determnng the yeld of secondary raw materals n the slaughter of cattle The algorthm nvolves the followng steps: Step 1. The volume of meat produced n the prorty areas s defned by the data of offcal statstcs. Partcularly the nformaton from statstcal collecton was used [1]. Summary nformaton on the amount of produced meat s gven n Table 2. Table 2. Amount of meat produced n the prorty areas of the East Kazakhstan regon n 2011 Groups of Areas Area Marketable meat (thousands of tons) Areas of the frst order Tarbagatay 19779,2 Urdjar 16758,9 Zharmn 13017,8 Prorty areas of the second order Abay 11850,4 Ayagoz 16034,9 Total 77441,2 Note compled by the author accordng to the East Kazakhstan Department of Statstcs Step 2 The coeffcent of the output of the ntegrated recyclng s calculated by formula % (1) S Where: average ntegrated rate of recycled materals output n varous types of lvestock slaughter C the ultmate producton of recycled materals n S total lve weght of cattle n tons Knd of lvestock () Table 3. Basc data and calculatons to determne the average rato of the ntegrated recyclng Quantty produced meat n East Kazakhstan n 2011(thousand of tons) m Recycled materals output p * Cattle lve Recycled materals weght m output, tons S * p c 0.01* * p S Cattle 58108, , ,34 Small cattle 22607, , ,156 horses 11040, , ,013 swne 9923, , ,784 Total , ,29 * - the ext rate of recycled materals of dfferent cattle types are taken from reference and normatve [2, 3, 4, 5] ,29 / *100 38,15 The calculatons showed that the ntegrated recycled output rato s 38,15% Step 3 Determne the amount of recycled materals n the East Kazakhstan prorty areas by formula (2). V M* (2) Where: V recycled materals amount M produced meat amount average ntegrated coeffcent of recycled materals output n slaughter of varous types of lvestock Table 4. Output recycled n prorty areas of the East Kazakhstan regon n 2011 (n tons) Prorty areas East Kazakhstan Meat produced, average yeld dfferental coeffcent of recycled Quantty recycled areas tons, 2008 materals materals (V=M* ) tons ** Tarbagatay area 19779,2 7547,504 Urdjar area 16758,9 6394,994 Areas of the frst order Zharmn area 13017,8 0, ,435 Abay area 11850,4 4521,969 Areas of the second order Ajagoz area 16034,9 6118,724 Total 77441, ,63 * Data taken from East Kazakhstan offcal statstcs ** calculated by the author
5 ~ 52 ~ ISSN The calculatons showed that the amount of recycled materals n the prorty areas n 2011 equals to 29550,63 tons. The expected effect can be dfferentated by the benefcares as follows: on a state scale reducng the shadow economy of all recycled materals, the development of manufacturng ndustres wth nnovatve processng technologes, dversfcaton of export component n the agrcultural sector; resourced domestc processors of raw materals, ensurng the domestc market wth qualty and eco-frendly products, expandng the range of exports and profts on exports of goods wth a hgh level of local content, the ntended usng of nvestments n agro-ndustral complex (montorng of expendtures), nvolvement of fnancal resources of specalzed and prvate nsttutons n the turnover, establshng a specalzed agrcultural bank, bank, developng related ndustres; across regons and dstrcts for rural areas ncrease the revenues of the dstrct budget n the form of tax revenues, create new busnesses n rural areas, promote lvestock development n the area as a proftable agrcultural sector, and stmulate the ntroducton of lvestock speces, create new jobs, ncrease n ncome of country people, an addtonal source of revenue for prvate holdngs, reducng the outflow of people from rural areas, mprove market, ndustral and transport nfrastructure n rural areas, loyal access to fnancal resources, develop small and medum-szed enterprses n rural areas, form rural specfc busness envronment, attract experts and mprove the professonal competency of the partcpants of recyclng process [6]. We beleve that ths approach n locatng ndustry, processng secondary raw materals to obtan market products wth hgh added value, wll actualze the exstng potental of agrculture. The Kazakhstan's export potental should comprse anmal secondary raw materals recycled. The use of recycled materals n the fnshed producton cycle would sgnfcantly dversfy the Kazakhstan's export component of the agro-ndustral complex n. In addton, the constrants on the producton of export orented products n the lvestock sector can be dvded nto system or objectve factors, not nfluenced by anythng, and subjectve ones. System factors nclude undeveloped markets for recycled materals, and n some cases, complete lack of demand, and lack of necessary facltes for transportaton and storage, as well as partal processng of raw materals n the collecton stes, low nterest of agrcultural structures n lvestock breedng, a sgnfcant proporton of prvate lvestock. Subjectve factors nclude the low level of sklls n processng ndustry, mperfect legal framework, the lack of state support for processors of agrcultural raw materals, poor nformaton and marketng support, poor transportaton nfrastructure. These factors together lead to neffcent use of recycled lvestock. Export potental of the country s closely connected to problems of transportaton, storage, gatherng and processng. In general, provdng a comprehensve approach to recyclng wll be followed by the export potental growth. References 1. E-resource: 2 M.S. Kulazhanov. Development of mport substtuton and export focus on lght ndustry producton n Kazakhstan: Abstract of a thess for the degree of Canddate of Economc scences : Almaty, pp. 3. D.M.Madyarova. World Product Markets: textbook-almaty: Economy, pp. 4. A.B.Temrova. Buldng and Development of Regon Export Potental (Kyzylorda regon), pp. 5. G.N.Dobrohotov. Zootechncan reference book/4th Edton Moscow: Kolos. 767 pp. 6. A.M.Zakmova. Export Potental Prortes n Agrcultural Sector n Kazakhstan (East Kazakhstan Regon) Abstract of a thess for the degree of Canddate of Economc Scences. Prnted by Prnt, Almaty ,..,.,.,..,. -..,,.,..,.., -. :,,,,..,..,.,.,..,. -..,,.,..,.., -,. :,,,,.
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