For Russia...with
love from North Dakota;
When state-run farms broke up at the fall of the Soviet Union,
“everyone started killing anything that moved,” says [Beibit] Yerubayev [The cowboy with an MBA]. Within
eight years of independence, the cattle population fell from 9.5 million
to 4 million. In 2011, the IMF said Kazakhstan’s agricultural sector
accounted for more than a quarter of employment but only 6 percent of
GDP.
The process of reviving the industry is capital-intensive. Kazbeef, for
example, sources all its purebreds from Global Beef in North Dakota. The
cows arrive packed, 180 at a time, in chartered Boeing 747s. The flight
over runs between $360,000 and $580,000, says Global Beef co-owner
Daniel Price.
Making it too expensive for the average Kazakhi, but not the oil-rich government bureaucrat.
Russia’s sudden import bans [on Western foodstuffs] have energized agricultural
officials across Central Asia. “Kazakhstan sees an opportunity to
increase the supply of agricultural products to Russia,” such as beef,
lamb, pork, vegetables and melons, says Amina Akhmetzhanova of the
Agriculture Ministry’s Department of Livestock Production and
Processing. Russian officials have called on former Soviet states to up
production as the price of staples, including beef, rises following the
ban.
Though the plot thickens;
While Kazakhstan stands to gain by upping its
own exports, the economic slowdown in Russia, exacerbated by Western
sanctions, threatens to pull down Kazakhstan as well, officials fear.
Trade turnover between the two plummeted 24 percent in the first six
months of this year, according to Kazakhstan’s statistics agency.
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