Kusto Group, a diversified private holding, is excited to contribute to modernizing Kazakhstan's agricultural economy. Currently, Kusto Group's agricultural division operates in Kazakhstan and Ukraine. The latest round of projects aim to help build an integrated agricultural ecosystem that will include a modern and sustainable beef capability in Kazakhstan. According to Kusto Group's Managing Director, Daniel Kunin, the potential stakeholder benefits are significant.
"This is a project where the winners will include local farmers in rural and under-developed regions, city dwellers looking for affordable, local sources of food and meat and exporters and foreign customers with a growing demand for healthy products. I believe Kazakhstan's agriculture will stand out because it will be natural and sustainable, which is an attractive way to generate income, reduce poverty and build lasting wealth," Daniel Kunin says.
Kusto Group has already implemented a number of modern technologies in its agricultural division, Kusto Agro.
Those include high-quality sensors that monitor temperature, conditions and crop degradation. Kusto Agro also uses drones to supply real-time pictures and data for analysis to identify problem areas before they escalate.
In order to reach the goals of the new strategy for Kazakhstan, Kusto Group and Daniel Kunin have chosen to focus on five areas: mechanized irrigation and water-saving, non-GMO seed cultivation, feed production, livestock rearing and protein processing and export.
"You can draw an analogy to human health. It is ideal when everything works in tandem, sleep, proper nutrition, physical activity and mental clarity. In the agricultural business, quality and affordable inputs will result in a well-functioning system; from the use of the best seeds to the production of appropriate feed and installation of modern irrigation technology and the rearing and sale of the healthy finished products," Daniel Kunin explains.
He emphasizes that building an agricultural ecosystem that supports an integrated protein strategy is a complex venture that requires long-term investments, strategic planning, intensive stakeholder-mapping and understanding.
Daniel Kunin of Kusto Group adds that the creation of a network of inter-linked partnerships that are both joint ventures and intensive public-private partnerships is vital.
Part of Kusto Group's plan for Kazakh agriculture contemplates a reform of Soviet-era farming to a modernized and market-focused network of producers.
Kusto Group, for instance, aims to help farmers build their herds at lower cost and with better genetics.
"Achieving our ambitious but attainable vision of helping transform Kazakhstan's agricultural system will create a modern, competitive and prosperous sector in the national economy that can complement and maybe one day surpass the returns form the energy industry," Daniel Kunin states.
Kusto Group's contribution to the economy of Kazakhstan
Kusto Group and Daniel Kunin remain optimistic about contributing to Kazakhstan's economic growth.
Recently, a tripartite agreement was signed by the Government of Kazakhstan, Kusto Group and Tyson Fresh Meats on the development of an agro-industrial capability in the country.
The agreement calls for the construction of a modern meat processing facility in Kazakhstan, one of the largest in the country's agricultural sector since Kazakhstan's independence in 1991.
Kusto Group also works closely with the global leader in center pivot irrigation and infrastructure, Valmont Industries, and contemplates the construction of a modern irrigation manufacturing facility in Kazakhstan.
75% of Kazakhstan's territory is suitable for agricultural production, so the implementation of modern irrigation will have a major impact on the country.
Estimates indicate that by using mechanized irrigation, crop production yields will increase, water resources will be better managed, and crop productivity will become more predictable.
Daniel Kunin: "Kusto Group's entrepreneurial spirit attracted me"
Kusto Group's Managing Director, Daniel Kunin, has extensive experience working in emerging markets. Mr. Kunin worked as a senior advisor to the Government of Georgia for six years after serving as management consultant.
There, he was part of an effort to implement economic reforms that helped the country become an internationally rated, business-friendly market.
It was during this period that Daniel Kunin met Yerkin Tatishev, Chairman and Founding Partner of Kusto Group.
"We quickly became friends, and what attracted me to join their team was my friendship with the owners and their genuine entrepreneurial spirit, which runs right through the business," Daniel Kunin says.
Since he joined Kusto Group, he has become a part of the company's leadership and a key factor in the development and success of many of Kusto Group's business ventures.