Introduction

At the present stage of development of agriculture, enterprises of the agro-industrial complex (AIC) for the purpose of their sustainable development need strengthening of state regulation and financial support. Without a highly efficient agricultural sector, it is impossible to ensure sustainable development of the state, its food security, which is the basis of the society well-being. The decisive factor for the well-being of the agricultural sector is the availability of effective government regulation mechanisms. State regulation of the agro-industrial complex and rural areas, in order to ensure food security, is carried out through: the development of lending in the agro-industrial complex and rural areas; subsidizing the agro-industrial complex; implementation of mechanisms to stabilize prices for socially significant food products; purchase of agricultural products at a guaranteed purchase price; regulation of export and import of agricultural products; technical equipment, information and marketing support of the agro-industrial complex, the creation of specialized organizations; scientific, regulatory and methodological support and training for the agro-industrial complex; making investments in the development of social and engineering infrastructure in rural areas; organization of optimal rural settlement; ensuring veterinary and sanitary and phytosanitary safety; financing the costs of monitoring and assessing the reclamation state of irrigated lands; application of measures of tax, budget, customs tariff, technical regulation and other measures in accordance with the legislative acts of the Republic of Kazakhstan; monitoring, forecasting technological tasks and organizing technology transfer in the agro-industrial complex; attracting agribusiness entities to co-financing in the course of applied research and development work.

In his speech at the extensive meeting of the Government, the President of the country K.-Zh. Tokayev noted that the situation in the agro-industrial complex causes reasonable complaints; it was not possible to reveal the export potential and solve the issues of full-fledged food security of the country. It was pointed out the need for a new, verified approach in the agricultural sector, creating conditions for processing raw materials in the country, attracting investment and the latest agricultural technologies, ensuring the stability of state support measures, and improving their efficiency.

In all countries of the world, agriculture is given priority by the state. It is in the field of agricultural products that they apply the most stringent measures to protect their market. In this regard, an effective agricultural policy, including state support, is one of the main conditions for the development of agriculture. In this regard, the issues of the need for strong state support for domestic producers, without which it is impossible to achieve the competitiveness of the agro-industrial complex and the livestock industry, in particular, are relevant.

The purpose of the study is to analyze the current state of the animal husbandry industry, identify the main problems in the industry and the priority directions used by the state to support agricultural producers.

The works of F. A. Shulenbaeva [2], Ya. V. Voronina [3], L. I. Tenkovskaya [4] are devoted to the issues of improving state support for agricultural producers. Many modern researchers have addressed the problems of state regulation of the agro-industrial complex and their importance in ensuring the country's food security: I. P. Chupina, A. G. Mokronosov [5], G. M. Dyuzelbaeva, O. I. Malyarenko [6], Ya. V. Voronina [7], A. A. Tenetko [8]. The works reveal the main conceptual approaches, methodological foundations, ways and directions of the formation of the economic mechanism of management in the agricultural sector of the economy as a whole, taking into account government intervention.

Despite the active development of these issues, not all aspects of state regulation and support for agricultural producers in general and in animal husbandry, in particular, have been studied to date, which determines the need to deepen research on this issue, taking into account modern economic conditions.

Methods

In the course of the study, analytical and economic-statistical methods, general scientific methods of systemic, comparative and structural-logical analysis were used.

Results

Agriculture of Kazakhstan, being one of the priority directions of economic development, has huge potential and large reserves. Natural conditions, their diversity determine significant potential for the development of animal husbandry. Kazakhstan traditionally engaged in sheep breeding, horse breeding, camel, cattle breeding. However, while livestock resources are used inefficiently, the competitiveness of meat products on the world market is low.

Nevertheless, Kazakhstan maintains a fairly steady growth in the development of animal husbandry. Much attention is now being paid not only to increasing the volume of production, but also to increasing the level of its efficiency and profitability. At the same time, the number of cattle in 2019 increased by 23.3 % compared to 2014. In 2014, it was 6032.7 thousand heads, and in 2019 by 44.9 % – 7437.6 thousand heads.

The business structure has changed. Earlier in the 1990s, about 70 % of the livestock was in agricultural enterprises, 30 % – in peasant and private farms. Currently, organized farms contain 44.9 % of the cattle population.

Fig. 1. Dynamics of the number of livestock and poultry in 2015–2019

(compiled by the authors based on the source [10])

The gross output of products (services) of the livestock industry in January-December 2019 in the country as a whole amounted to 2306.4 billion tenge, which is 4.0 % higher than the level of the corresponding period of the previous year (2050.4 billion tenge). The growth in the production of livestock products is due to the increase in the slaughter of livestock and poultry in live weight by 5.5 %, milk yield of raw cow’s milk – 3.2 %. Due to the number of increase in agricultural formations, there is a tendency to increase the number of cattle compared to the previous year by 4.0 % to 7437.6 thousand heads, horses – by 6.8 % to 2825.8 thousand heads, poultry – by 2.0 % to 45.2 million heads, sheep – by 2.7 % to 16.9 million heads, camels – by 3.5 % to 214.8 thousand heads, pigs – by 2.9 % to 822.2 thousand heads The number of goats decreased by 2.2 % to 2233.7 thousand heads.

Table 1

The number of farm animals by regions as of January – December 2019*

* Source: [11].

The production of commercial cow's milk increased by 2.8 % to 3967.9 thousand tons, the production of hen eggs decreased by 1.1 % to 5513.4 million pieces due to the technological process of changing the livestock, as well as the termination of the activity of “Tselinogradskaya Poultry Farm” LLP. In general, the main share of egg production decreased in Almaty region by 73.5 million pieces, Akmola – by 26.1 million pieces and North Kazakhstan – by 6.4 million pieces.

Production of poultry meat amounted to 222.9 thousand tons, beef – 501.4 thousand tons, mutton – 151.9 thousand tons.

In January – December 2019, meat production in slaughter weight in all categories of farms increased by 5.8 % and amounted to 1120.9 thousand tons. At the same time, in agricultural formations there is an increase in meat production by 11.4 %, milk by 6.2 %.

The average milk yield per cow remained at the level of the previous year and amounted to 2347 kg, the average yield of eggs per 1 laying hen decreased by 2.9 % against the level of the previous year and amounted to 239 pieces. At the same time, the average milk yield in agricultural enterprises per 1 cow increased by 13.5 % and amounted to 4660 kg.

Despite the increase in livestock production, domestic production of certain items does not cover even half of the population needs in the meat and dairy products.

Table 2

Dynamics of production and domestic market of livestock products in 2015–2019*

* Compiled by the authors based on the source [11].

The Ministry of agriculture imposed a ban on live cattle exports for six months due to an increase in live cattle exports in 2019 compared to 2018: 3 times or 156 thousand heads of cattle and 7 times or 263 thousand heads of small cattle. Despite the 45–50 % workload of Kazakhstani meat processing plants, prices for meat products are growing. When agreeing on the ban, the National Chamber of Entrepreneurs of the Republic of Kazakhstan «Atameken» believes that in order to stabilize the internal market, resolve the issue of overflow and ensure the profitability of farmers, it is necessary to pay the difference in the form of subsidies to farmers at a high price for meat or live cattle in the markets of neighboring countries [12].

It should be noted that in Kazakhstan about 40 % of livestock belongs to private farmsteads and households, which are not always able to provide livestock with the necessary conditions and most of them do not have the opportunity to equip their farms with the appropriate technical equipment, which in turn has a significant impact on the quality of products. For example, in the Republic of Belarus almost 100 % of livestock is kept in large organized dairy farms, in the Russian Federation – more than 50 %.

Due to the fact that part of the livestock is concentrated in households, the livestock industry is characterized by such characteristics as low genetic potential of animals and associated low productivity, lack of use of modern technologies for keeping, feeding and other technologies that ensure productivity and quality of products, insufficient care for the health of animals.

The quality of the feed base has a great influence on the productivity of animal husbandry. In order to obtain meat and dairy products of good quality, in addition to the appropriate conditions, it is necessary to own a large-scale and high-quality feed base. Most of the existing pastures do not require the presence of water bodies due to their location, which also reduces the possibility of keeping livestock. The issue of importing cattle from abroad also requires attention. It is necessary to pay attention to compliance with local climatic conditions, modern detection and exclusion of the import of sick animals, etc. [13, p. 29].

In order to encourage an increase in the number of breeding stock, increase the proportion of breeding animals to the total number, as well as the volume of livestock production, improve its quality and competitiveness, the state is taking measures to support agricultural producers through direct subsidies to them from local budgets in two directions:

1. development of livestock breeding;
2. production of livestock products.

Subsidizing these areas is carried out within the framework of the Rules for subsidizing the development of livestock breeding, increasing the productivity and quality of livestock products [14].

The volume of state support for agriculture of the Republic of Kazakhstan is increasing annually. Over the past five years, the volume of subsidies has doubled and in 2019 amounted to 115.6 billion tenge (for comparison, in 2015 – 69.0 billion tenge).

Subsidies for the development of livestock breeding are intended for:

• partial reduction in price (up to 50 %) of the cost of pedigree young cattle, sheep, goats, stallions, pigs, camels and day-old chickens purchased by domestic producers;
• reducing the cost of breeding and breeding work with breeding stock of cattle, sheep, pigs, marals (deer), as well as bee colonies;
• cheaper costs of individuals and legal entities for the maintenance of breeding bulls-producers of meat and dairy-meat breeds used for the reproduction of a commercial and public herd, sheep for the reproduction of a commercial flock;
• reduction in the cost of the purchased unisexual and bisexual semen of a breeding bull of dairy and dairy-meat breeds;
• subsidizing services for embryo transplantation;
• reimbursement of the costs of breeding and distribution centers for the provision of services for the artificial insemination of the breeding stock of cattle and sheep in agricultural cooperatives, as well as in peasant (farm) farms [11, p.67].

Table 3

Dynamics of subsidizing the development of livestock breeding by directions, million tenge*

* Source [11].

Subsidizing the increase in productivity and quality of livestock products is aimed at:

• cheaper cost of bulls sold for feeding in feedlots with a capacity of at least 1000 heads at a time;
• reducing the cost of fattening bulls for feedlots with a capacity of at least 1000 heads at a time;
• cheaper cost of the lambs sold;
• reduction in the cost of production of milk (cow, mare, camel), poultry (broiler meat, turkey, waterfowl), edible eggs (chicken eggs), thin and semi-thin wool;
• reduction in the cost of feed costs for dairy cattle [11, p. 68].

Table 4

Dynamics of subsidies for manufactured products by type, million tenge*

* Source [11].

At the same time, within the framework of the state program for the development of the agro-industrial complex, in order to increase the availability of financing for agribusiness entities, it is planned to gradually reduce ineffective subsidies, which directly distort pricing and are referred to the “yellow” basket according to the WTO methodology. Such market-distorting type of subsidies includes commodity-specific subsidies (per unit of output) [15].