Leaders of American agribusiness Tyson Foods and Valmont Industries invest in Kazakhstan
As part of the Prime Minister Askar Mamin’s working visit to the United States, leaders of American agribusiness reached agreements with investments in opening Meat Processing and Irrigation Systems in Kazakhstan.
Following Mamin’s negotiations with Tyson Foods top management, the largest meat producer in the USA, represented by the President Noel White and Chairman John Tyson, an agreement on modern agro-multiprotein industry program in Kazakhstan was signed.
The document at the first stage provides for construction of a modern Meat Processing Facility with a capacity of about 2,000 heads per day in Kazakhstan. The company will not only meet the needs of the Kazakhstani market, but also export products to foreign markets, helping to ensure the country's annual agricultural profit over $1 billion.
So, in the central part, in the south and east of Kazakhstan, it is planned to build three modern Meat Processing Facilities with a capacity of about 2,000 heads a day each, which will create about 100,000 new jobs.
Tyson Foods is implementing a Project jointly with local company Kusto Group. The production cycle will be supported with Information and Consulting Service for Kazakh farmers under American service “Extension,” which includes consultations, on-the-job training of local personnel and vocational training.
"Tyson Foods is a world-class company with the experience Kazakhstan needs to make a breakthrough in development of meat processing and increase the number of livestock on farms. The opening of the company will stimulate not only the development of the meat industry, but also other related sectors of the agro-industrial sector – veterinary medicine, agricultural machine building, fodder crops, the construction of feedlots, etc. The project will create tens of thousands of new jobs in Kazakhstan’s agriculture” - said Askar Mamin.
It is worth noting that about 60-70% of production - at least 150 thousand tons per year is planned to be exported to foreign markets, which will allow Kazakhstan to become one of the largest producers of Meat and Protein in the world.
During the negotiations, the President of Tyson Foods, Noel White, noted that Kazakhstan has enough water and land resources for cattle breeding, as well as good railway and road infrastructure.
“Your country has a favorable geographical position on the border with China and Russia, there is a transport network directed also to Central Europe” - he said.
In Omaha, Askar Mamin met with the Governor of Nebraska Pete Ricketts and the President of Valmont Industries, the leader in the market of irrigation systems, Stephen Kaniewski.
The parties discussed the prospects for cooperation and exchange of experience in the application of high technologies for power irrigation, telecommunications, renewable energy, infrastructure construction, as well as agricultural science and education.
Following the results of negotiations, in the presence of Askar Mamin and Pete Ricketts, an Agreement was signed between the Ministry of Agriculture of Kazakhstan, Kusto Group and Valmont Industries on the principles of effective irrigation and improving agricultural productivity in Kazakhstan.
The document provides for the construction in Kazakhstan in 2022 of the plant for Valley Pivot Irrigation Machines with a capacity of 1,000 frontal and circular irrigation machines per year. The US irrigation technologies will increase crop productivity and reduce agricultural costs by 50%.
In the future, it is planned to expand the production of the company in Kazakhstan to the release of equipment for telecommunications, renewable energy and infrastructure construction. Products manufactured in Kazakhstan will not only meet the needs of the domestic market, but also develop export potential to foreign markets.
“The use of Valmont Industries advanced technologies will have a multiplier effect on crop production and creation of a forage base for livestock production” - said Askar Mamin.
The prime minister noted that Kazakhstan plans to increase the area of irrigated land from 1.4 million to 2 million hectares by 2022, and to 3 million hectares by 2030.
In total, over 11 years, 4,000 units of Valmont Industries equipment will be used to develop crop production and feed production in Kazakhstan. Valmont Industries machinery and equipment manufactured in Kazakhstan will not only meet the needs of the domestic agricultural sector, but will also be exported to neighboring countries.
It is noted that official events were sponsored by KAZAKH INVEST.
It is worth reminding that from 2005 to 2018, the gross inflow of direct investment from the United States to Kazakhstan amounted to $ 40 billion. At the end of 2018, the US investment in Kazakhstan reached $ 5.3 billion.
Today, over 500 companies with the participation of American capital do the business in Kazakhstan, including such companies as: Primus Power, Spancrete, Uber, Starbucks, McDonalds and Netflix.
For reference:
Tyson Foods, Inc. - one of the world's largest food companies and a pre-eminent leader in protein production. Tyson Foods was founded in 1935, the company’s trade turnover is $ 42.4 billion. The company has a wide range of products and brands such as Tyson®, Jimmy Dean®, Hillshire Farm®, Ball Park®, Wright®, Aidells®, ibp® and State Fair®. It is headquartered in Springdale, Arkansas and the number of employees is over 120,000 people.
In 2018, Tyson Foods ranked 80th on the Fortune 500 List of the largest US corporations in total revenue.
Tyson Foods is one of the largest US producers of value-added chicken, beef and pork for retail stores, distributors of a wide range of catering and national fast food chains and full-service restaurants: fresh beef and pork; frozen and fully cooked chicken, beef and pork products; prepared beef and pork; supermarket for gastronomic chicken products; meat toppings for pizzerias and retail sales of frozen pizza; club shop for chicken, beef and pork; ground beef and flour cakes.
Valmont Industries, Inc. - the world's largest manufacturer and distributor of mechanized irrigation machines. The company was founded in 1954. Valmont's Valley brand equipment and Valley, an international distribution company, are now known worldwide as the most reliable and innovative source of irrigation equipment and services.
Since 2018, KAZAKH INVEST has been systematically working with Valmont Industries to implement investment projects in the Republic of Kazakhstan. During this time, negotiations were held in the United States, several visits of the company to Kazakhstan were arranged to meet with central and local executive authorities and domestic farmers.
On the agenda of negotiations is the construction in Kazakhstan of a plant for the production of Water-Saving Irrigation Systems and regional Demonstration Farms with a total value of $ 50 million.
Photo illustration: www.primeminister.kz
