The new business venture between Kusto Group and US firms to build modern irrigation systems in Kazakhstan is backed by $50 million investment and has the potential to transform the country’s agricultural sector.
Kusto Group has embarked on an agri-industrial joint venture with the US firms Valmont Industries and Global Beef to build a production plant in Kazakhstan to manufacture modern irrigation systems. The new plant is backed by a $50 million investment and will have the capacity to construct more than 1000 systems per year. This endeavor is a major advancement for the modernization of Kazakhstan’s agricultural sector and for the wider development of the country’s economy.
Kusto Group is a Singapore-based diverse multinational holding company with subsidiaries operating in agriculture, energy, construction material manufacturing, construction and real estate. Valmont Industries is a leading producer and distributor of products and services for the infrastructure and agricultural markets. Global Beef is an American company that provides world-class livestock management strategies and global solutions for the acquisition, development of nutrition and genetics of cattle.
Transforming Kazakhstan’s Agricultural Sector
Yerkin Tatishev, chairman of Kusto Group, and Steve Kaniewski, President and CEO of Valmont Industries, were joined at the signing ceremony by Kazakhstan’s Prime Minister Askar Mamin and the country’s Minister of Agriculture SaparkhanOmarov.
The presence of these high-profile political figures highlights the significant implications of this historic deal. Kusto Group has identified huge economic potential in the agricultural market of its founders’ homeland of Kazakhstan. According to Tatishev, “Kazakhstan’s agricultural sector has long suffered from a lack of investment.”
Only 7% of Kazakhstan’s arable farmland is currently irrigated and this land accounts for about 40% of the country’s total crop harvest. The increased use of modern irrigation systems will have a transformative effect on the country’s production abilities.
Tatishev spoke directly about the potential effects of modern irrigation saying, “They can increase crop yields many times over, while also reducing water usage, helping reduce environmental impact. The efficiency savings across all kinds of crops, from rice to corn to cotton, are truly remarkable.”
He argued that if Kazakhstan’s agricultural sector is going to compete in the global market, it must implement modern irrigation methods. The partnership between Kusto Group and the American firms will enable that possibility to become a reality.
Kusto Group’s Commitment to Investing in the Local Market
This deal is part of Kusto’s efforts to embrace innovation and new technology. Kusto Group is committed to investing in building a modern agricultural sector in Kazakhstan and making the country a global leader in agricultural production. The company has made a series of crucial partnerships with industry-leading American firms to bring innovative technology and industry best practices to their business and to make a positive impact on the country’s agricultural market.
Through a partnership with leading US livestock companies, Kusto Group’s subsidiary KazBeef became the first company to export Angus and Hereford cattle to Kazakhstan. The company has capitalized on business collaborations to adopt the most cutting-edge farming technology and advanced agri-business methods.
In 2018, Kusto Group established KazSeed and partnered with the US firm Baumgartner Agriculture Science and Service (BASS), a global leader in non-GMO seed production, to develop non-GMO seeds specifically for the local climate to produce richer, higher quality yields.
Yerkin Tatishev praised the new venture with Valmont Industries stating, “When business leaders share the same goals and actions, great things can happen. Our agreement with Valmont Industries means our US partners will share the most advanced technologies for irrigation, water resource efficiency and crop production. Combined with Kusto’s local knowledge, experience and industrial expertise, it will make for a powerful partnership.”
Applying Modern Technology to Agriculture in Kazakhstan
In addition to committing to the construction of the new manufacturing facility, US-based Valmont Industries and the Kazakh government signed the Memorandum of Understanding on the joint implementation of projects in the field of irrigation of land. This cooperative agreement between the companies and the government aims to create a network of farms sharing and transferring advanced technologies in the field of irrigation, promote the efficient use of water resources, improve feed production, promote education and training of farmers, and the support the training of qualified personnel.
In accordance with the agreement, the firms will build demonstration sites of modern irrigation sites to demonstrate their use and provide training opportunities. The sites will be built in Kazakhstan’s Akmola and Turkistan regions.
The newest partnership demonstrates Kusto Group’s commitment to developing local industries through the introduction of the latest cutting-edge technologies. The investment of these firms is a significant boost to the local Kazakh market. It has the potential to bring more jobs and prosperity to the region and make Kazakhstan a global leader in agriculture. In his closing remarks, Tatishev proclaimed, “Together, we are making exciting progress. This project represents a major step forward for Kazakhstan and another proud moment for Kusto Group.”Wake up Right! Subscribe to our Morning Briefing and get the news delivered to your inbox before breakfast!