(Newswire.net — February 18, 2019) — Chairman of the Kusto Group Board of Directors, Yerkin Tatishev, declares that Kazakhstan is open for business.
Kusto Group has announced that it will be making investments aimed at building a modern agricultural sector in Kazakhstan with the goal of becoming a prominent domestic supplier and expanding into new global markets.
Why Kusto Group Makes Investment in Kazakhstan a Priority
In international trade, the controversy surrounding isolationism and the increasing globalization of business and trade is nothing new. It has become of global interest recently with talks of potential trade wars, primarily with increased tensions between the United States and China. To some countries protective tariffs may seem attractive, despite the IMF warning that these actions could lead to a significant slowdown of growth in the global economy.
In his native country of Kazakhstan, Yerkin Tatishev has dedicated himself and Kusto Group to the pursuit of a policy of openness. He believes that through a strategy of cooperation, Kazakhstan has the potential to capitalize on regional trade and boost its own economic development.
As Tatishev points out, Kazakhstan is uniquely positioned geographically within a region where more than two billion consumers live. Through economic integration with its neighbors, as well as some distant countries like Vietnam, Kazakhstan has been able to attract foreign investment and accelerated its own economic growth.
Kusto Group and the Economic Potential of Agriculture in Kazakhstan
A key pillar of Kazakhstan’s economy is the exportation of raw materials including oil, uranium and other valuable metals. It is through these natural resources that Kazakhstan has been able to gain a foothold in the world economy. But as Tatishev warns, a reliance on these commodities for the economic growth of a country has risks, including the potential volitivity associated with commodity prices.
He argues that it is necessary for Kazakhstan to take efforts to diversify its economy. Tatishev believes that Kazakhstan should leverage its natural resources and competitive advantage to create long term wealth and economic growth. This could not be truer in backward sectors of the country’s economy, such as agriculture, that have remained stagnant in innovation and growth. With rich land resources and a long tradition of respect for the land, Tatishev and Kusto Group are committed to building a modern agricultural sector in Kazakhstan.
With more than 160 million hectares of land suitable for agriculture currently uncultivated and the potential to reach millions of consumers in Russia, China, and the Middle East, Tatishev and Kusto Group recognize the huge economic potential of an investment in agriculture in Kazakhstan. As the demand for high quality natural products like cereals, fruit, and animal products grown without the use of GMOs continues to grow, there is a component of the market that is currently being overlooked.
Kusto Group: Promoting an Open Economy to Facilitate Long-Term Growth
Tatishev and other executives for Kusto Group recently initiated a joint venture with Baumgartner Agriculture Science and Service (BASS), an American company and leading producer of non-GMO seeds. The goal of this partnership is to supply seeds selected to meet specific local growing conditions and to implement effective agrotechnical methods, such as modern irrigation, to produce high quality goods. This will also provide a complimentary product to the Black Angus beef grown by KazBeef, a company within the Kusto Group, by supplying a superior feed for the breed.
Tatishev hopes that through the policy of openness and investments made by Kusto Group, meaningful opportunities for economic growth and new jobs within multiple levels of the industry will be created and it will provide a model for other companies to follow. He also applauded the government’s approach to building an open economy of trade allowing for Kazakhstan to realize its huge agricultural potential through the export of its products and attracting new consumers. Tatishev further expounds the benefits of open trade investments as a means to combat poverty and unemployment, while increasing productivity and expanding opportunities for people.
Kusto group has effectively utilized local knowledge to create a global market-oriented enterprise. Open trade has long been a foundation of the country and Tatishev states that the economic prosperity of Kazakhstan, and all the countries where Kusto Group operates, is essential to the growth of the company. The policies and strategies of Kusto Group support domestic producers and give the company the opportunity to study and enter new markets by creating joint ventures and sharing best practices. These investments and business practices provide a win-win opportunity for Kusto Group and for the people who live in the countries where it does business.