The role of agriculture in the economy of a country or region shows its structure and level of development. As indicators of the role of agriculture used the share of employment in agriculture among the economically active population, as well as the share of agriculture in the structure of gross domestic product. These figures are quite high in most developing countries, where agriculture employs more than half of the economically active population. Agriculture is developing in an extensive direction, that is, the increase in production is achieved by expanding the acreage, increasing the number of livestock, increasing the number of people employed in agriculture. It should also be noted that the agricultural sector is one of the most important sectors in all countries. According to the results of the studied material and the research methods used, the authors made the appropriate calculations. In agriculture, about 5% of the gross domestic product (hereinafter - GDP) of the country is created. In 2018, the gross output of agricultural products amounted to 4.1 trillion tenge, which in real terms is higher than in previous years [1].

In the structure of gross output of the industry there is a high share of production of private farms. About 80% of agricultural products produced in Kazakhstan are sold in the form of raw materials, without processing, and finished products have weak competitiveness (table 2).

Table 2 - SWOT analysis of the agricultural sector



·  Kazakhstan is the ninth largest country in the world by area;

·  by area of arable land per capita Kazakhstan ranks second in the world;

·  Kazakhstan is among the largest exporters of grain and flour;

·  the large number of the rural population (43% of the total population), high share of employment (18% of the employed population);

·  large potential demand for food products in CIS and Central Asian markets;

·  constant growth of gross agricultural product;

·  high production and export potential of organic products.

·     low share of GDP (4,8%);

·     the lack of development of trade, including export;

·     low level of implementation of research and development works;

·     insufficient level of veterinary and food safety;

·     high capital intensity;

·     long payback period;

·     dependence on climatic conditions;

·     low productivity;

·     the low level of profitability of agricultural producers.



·  the possibility of increasing the volume of all types of agricultural products in connection with the growing number and changing the structure of the population's nutrition;

·  formation of effective state support for agricultural cooperatives;

·  expansion of geography of deliveries and the volume of exports in advanced industries.

·    adverse changes in natural and climatic conditions, instability of weather conditions;

·    spread of animal and plant diseases and pollution of the environment;

·    increased competition in international markets for certain products due to WTO accession;

·    risk of inefficient government regulation of the industry.

Note: compiled by the authors on the basis of the studied material

Based on the analysis of the geographical location of Kazakhstan, the capacities of the market of agricultural products, transport accessibility, it can be concluded that the potential markets are the countries of the EAEU, CIS, China, Iran, Afghanistan and the UAE.

The leading volume of exported products at the end of 2018 are:

  • crop production - wheat, barley, corn, oilseeds;
  • animal products - beef, pork, lamb, poultry.

In General, in the structure of imports of countries such as Russia, Uzbekistan, Kyrgyzstan and Tajikistan, for certain types of crop products, products from Kazakhstan account for more than 86%. Thus, in 2018, the share of wheat from Kazakhstan amounted to 86.6% of the total volume of imported wheat in Russia. In Uzbekistan's imports of wheat, flour and oilseeds, the share of products from Kazakhstan is 100%, 99.2% and 98.7% respectively.

For livestock products, given the domestic security of domestic production, export potential have beef, pork and lamb. The largest volumes of imports of these products are observed in countries such as China, Russia, Iran and the UAE.

According to the results of the study, the authors propose the introduction of information technologies in the agricultural sector and the development of information systems, as well as integration with the systems of state bodies and member States of the EAEU through the national gateway for the following processes [2]:

  • subsidies and other state support measures;
  • traceability of livestock products;
  • traceability of crop production;
  • monitoring of fish and fish products turnover;
  • water resources management, monitoring and accounting;
  • registration of agricultural machinery, pledge, issuance of driving licenses using the portal solution;
  • monitoring and accounting of forest resources and prevention of forest fires;
  • monitoring and management of land resources;
  • accounting, production, movement of agricultural products for agricultural enterprises, processing enterprises, cooperatives.

Thanks to these measures will be provided:

  • transfer of public services to electronic form;
  • increasing transparency and efficiency in the provision of public services;
  • increasing the level of information saturation of the industry;
  • creation of preconditions for the export of agricultural products.

The cost of projects (proposed measures) will be determined at the project analysis and planning stage [3].

The projects will be financed both by the investor and, if necessary, by the state within the framework of public-private partnership mechanisms (hereinafter-PPP). Therefore, the main parameters, requirements and results of development will be described in the relevant PPP concepts or technical specifications for the development of information systems.

According to the authors, the financial and economic mechanism of implementation of innovative projects in agro-industrial production should include:

  • application of return financing of highly effective applied scientific and technical developments of commercial importance, as well as state subventions, subsidies and grants;
  • support of interregional high-tech innovative programs and projects of the state subjects;
  • stimulation of investors who invest in high-tech production, the organization of various formations for the development of innovation with the provision of collateral reserves for real assets (highly liquid material and financial assets of the state, for example, blocks of shares) [4];
  • development of leasing of high technologies and unique equipment;
  • introduction of non-linear depreciation for foreign investors (when in the first years after the acquisition of fixed assets most of their value is written off), producing innovative products under international commercial contracts;
  • providing financial support for patent and inventive activities, assistance in the protection of intellectual property and the protection of rights to it, both at home and abroad;
  • improvement of the competitive system of selection of innovative projects and performers, increasing the share of use in the economy relatively small in volume, but effective and quickly recouped innovative projects;
  • creation and development of a contract system aimed at the implementation of innovative projects carried out at the expense of the budget, as well as extra-budgetary sources;
  • providing a quota of budget financing to small innovative enterprises for the use of scientific, technical and innovative projects.

The implementation of innovation policy in the agro-industrial complex with the improvement of the organizational and economic mechanism of the functioning of its subjects is advisable to carry out in the following areas:

  • strengthening economic incentives for innovation at all stages of the process;
  • development of self-supporting relations and increase in the share of direct producers ' costs of innovation [5];
  • involving in economic circulation of objects of intellectual property;
  • introduction of market mechanisms in the development of innovation.

In the economic mechanism of implementation of the innovation strategy should be defined:

  • directions and parameters of financial support of the innovative sphere of the industry;
  • procedure for financing and crediting its enterprises;
  • formation of price relations at various stages of the innovation process;
  • system of taxation and insurance of scientific organizations and enterprises engaged in innovative activities;
  • improvement and forecasting of innovations, and implementation of innovative projects in production;
  • development of foreign economic relations [6].

In accordance with the above, according to the authors, the management of scientific-innovative and investment processes in the regions should include:   

  • theoretical and methodological substantiation of strategy and management mechanisms; economic and model support and packages of applied programs;
  • information base of analysis;
  • modeling and decision-making;
  • program-target organizational structure;
  • methods of mobilization of financial resources for scientific, innovative and investment purposes;
  • the motivational subsystem;
  • legal framework.

The authors conclude that the main hypothesis can be put forward that the policy of modernization of the agricultural sector must be formed taking into account the specifics of the functioning of the industry, epistemological roots and impulses of its development. Modernization of the sphere of functioning of the agricultural sector should be carried out in stages and with the correct target orientation. It is proposed to use a comprehensive, systematic approach to the innovative modernization of production relations and productive forces of the agricultural sector of Kazakhstan. In this case, the innovative trend of agribusiness development will be a real and effective direction.


Sources used

  1. Barkhudar Sh. Gussenov, N. B. Korabaeva, G. A. Zhunusova, A.G. Tolamisova & S. N. Aitkulova. (2018). The development of foreign trade in the era of globalization. Espacios. Vol. 39 (Number 47). Page 22. http://www.revistaespacios.com/a18v39n47/18394722.html. http://orcid.org/0000-0003-0275-8029.
  2. Bota D. Baitarakova, Rayhan K. Turysbekova, Farrukh A. Gajiyev, Zhuldyz K. Subebaeva, Makpal T. Syrlybaeva & Barkhudar Sh. (2018). Using the principles of project financing as an effective instrument of management of transport infrastructure (Using elements of public - private partnerships). Espacios. Vol. 39 (Number 19). Page 42.
  3. Dyrka, Stefan & Gussenov, Barkhudar Sh. (2018). The main aspects of the development of foreign economic activity in the era of globalization. Bulletin of national Academy of sciences of the Republic of Kazakhstan. Volume 6, Number 376, 234 – 238. https://doi.org/10.32014/2018.2518-1467.50. http://orcid.org/0000-0003-0275-8029.
  4. Kubayev, K. E. (2018). The process of fund-saving in the theory of innovative economy. Journal of Social Sciences Research. Special Issue. 3, pp: 149-156. URL: https://arpgweb.com/pdf-files/spi3.24.149.156.pdf
  5. Madiyev, G., Kerimova, U., Yespolov, A., Bekbossynova, A. & Rakhimzhanova, G. (2018). Macroeconomic Aspects of Innovation-Driven Growth of Agribusiness in the Republic of Kazakhstan. Journal of Advanced Research in Law and Economics, 9(2), 561-569. doi:10.14505//jarle. v9 2(32).20.
  6. Zaida А. Ilimzhanova, Venera R. Burnasheva & Barkhudar Sh. Gussenov. (2018). Trends in the development of fiscal authorities of Kazakhstan. Espacios. Vol. 39 (Number 12). Page 26.