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 Kusto-Group-Yerkin Askar Mamin and the country’s Minister of Agriculture SaparkhanOmarov.
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The presence of these high-profile political figures highlights Informative post TatishevYerkin 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 Yerkin Tatishev-Kusto-Group Article source 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 Kusto Group Tatishev 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.