Kazakhstan Agricultural Sector Risk Assessment

Agriculture is among the most risk-prone
sectors in the economies of Central Asia. Production shocks
from weather, pests and diseases and adverse movements in
agricultural product and input prices not only impact
farmers and agri-business firms, but can also strain
government finances. Some of these risks are small and
localized and can be managed by producers. Others are the
result of more severe, exogenous shocks outside agriculture
that require a broader response. Failure to respond
adequately to these more severe risks leads to a perpetual
cycle of ‘shock-recovery-shock’ which reinforces poverty
traps and compromises long-term growth. A broad-based
program to improve livestock productivity is recommended to
strengthen the resilience of livestock production systems
and rangeland use in Kazakhstan. Proposed interventions
include measures to: (i) reverse degradation of water, soil
and vegetation cover; (ii) safeguard the long-term viability
of rangeland ecosystems, while ensuring sustainable access
to grazing land; and (iii) strengthen livestock services
(veterinary, animal health, feed and fodder supply,
destocking, water and grazing access, and weather and market
information). These measures will enable farmers to manage
their resources better, to respond to climate and market
signals and to protect their resource base in times of
drought. The recommendations developed under these three
solution areas continue the underlying emphasis on
mitigation as the foundation for risk management. They also
highlight the mutually reinforcing benefits of measures to
improve crop and livestock productivity for both risk
management and sector growth.