JSC SAMRUK- KAZYNA · with the Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan. In November 2015, Kazakhstan officially became the 162nd member of the WTO. As part of its accession

Precision agriculture market potential in Kazakhstan

June 2017

JSC SAMRUK-

KAZYNA

1

Private farm households account 48% of agricultural output

and have limited access to capital

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

2005 2007 2009 2011 2013 2015

Crop Livestock

Gross agricultural output, KZT tln

(2005-2016)

Source: Agency of Statistics, Samruk-Kazyna

1%10%

89%

Agricultural entities

Peasant farm enterprise

Private farm household

Number of agricultural

producers, % (2015)

Export vs. import of agricultural

products, USD bln (2008-2016)

Processed agricultural products comprised 48% of export and 69% of import in 2015. While, agricultural raw materials

comprised 52% of export and 31% of import. In 2017, export is projected to increase by 10% YoY.

Agriculture production comprises approximately 5% of GDP. Gross agricultural output is expected to increase by 19% to KZT4.3tln

by 2021 from KZT3.6tln in 2016. The availability of arable land per inhabitant is the second highest in the world.

89% of the agriculture sector is represented by private farm households (48% of agriculture gross output), which has

limited access to capital to purchase machinery and equipment, finance operating costs, pay the salaries of employees, and

invest in innovation.

The state program of development of agriculture 2017−2021 introduced in November 2016 focuses on enrollment of

500 ths private households into 1,200 agricultural cooperatives by 2021. In 2017, the number of agricultural

cooperatives are expected to reach 410 (326 in the State program).

Total agricultural production in

terms of producers, % (2016)

23%

29%

48%

Agricultural entitiesPeasant farm enterprisePrivate farm households

0.0

1.0

2.0

3.0

4.0

5.0

2008 2010 2012 2014 2016

Export Import

2

Agriculture sector in Kazakhstan vs. peers

The yield of cattle, kg per

animal (2014)

393 371329

261193 192 176 152

The share of cultivated in total

country’s area, % (2014)The share of agricultural sector in

GDP, % (2014)14.0

5.0 4.62.4 1.7 0.7

55.1

26 25.8

10.8 7.3 6.1 5.1

227.0 203.0

94.653.8 50.9

28.4 13.4 1.5

Nutrient use on arable and permanent

crop area, tonnes per 1000 ha (2010)

91.7 85.8

40.130.9 29.4 25.0 20.1

10.9

The yield of wheat, dt/ha

(2014)

908 813717

612477

370241

The yield of sugar beet, dt/ha

(2014)

In Kazakhstan, the yields of crops (wheat, sugar beet, barley, oats, rice,

sunflower seed) significantly lower, compared its peers.

World Bank recommended Kazakhstan to improve risk management,

based on wheat productivity improvement, agricultural diversification,

improvement of livestock productivity. The development of wheat

varieties more tolerant to drought, heat stress and disease was

recommended also.

Yield variance in agricultural production is 27%

in Kazakhstan, compared to only 5% in the EU.27 %

The yield capacity of cereal crops will decrease

23–33% by 2030 given the current level of

farming standards on the back of expected

climate change, according to WB’s estimates.

23 %

Source: FAO, Samruk-Kazyna

3

Agriculture is highly vulnerable to climate change

Disasters in agriculture (1985-2013)

Agriculture in Kazakhstan is highly vulnerable to climate change due to its heavy reliance on dryland crop and livestock production

systems. Grain production suffers from serious drought in two out of every five years.

In 2016, an adverse weather conditions (wet spring and a large number of precipitations in July) in all grain-producing oblasts

of Kazakhstan caused fungal diseases of grain crops (brown rust). Thus, the loss of yield comprised more than 25% in

Akmola, Kostanay and North Kazakhstan oblasts.

The risks associated with climate change and biotic stresses constrain the achievement of gains in yield. The risks

have also widened the yield gap between private farm households which has limited resources and agricultural

entities that are better equipped and prepared to deal with the risks and constraints.

Mutual insurance associations lack of regulation and insufficient payouts in the event of a loss.

KazExportGarant is anticipated to start compensating catastrophic losses caused by natural disasters.

Source: World Bank

4

Diversification of crop production away from wheat into

feed grains, oilseeds and vegetables

Gross output, % (2016)

3%

20%

27%30%

10%

6% 3%

Superior eliteseedsElite seeds

Primary seeds

2-reproduction

3-reproduction

4-reproduction

5-reproduction

Massreproduction

Seeds, % (2015)

19% of seeds is represented by low quality

seeds, which negatively affects export potential.

Shortage of high quality raw materials (oil crop, sugar beet, raw milk) to load capacity in processing plants.

Low usage of mineral fertilizations due to its high cost for private farm households. Kazakhstan’s endowment of mineral

fertilizations by domestic production comprised 35% of scientifically-based need.

Shortage of seeds and significant volumes of seed imported to Kazakhstan. The vast majority of producers of seed

(64% or 217) focuses on grain crop, while only two companies produce seeds of sugar beet.

High share of wheat elevates the agriculture

sector’s exposure to droughts and market risks.

In 2016, export of wheat to China stood at

281ths tones (7% of total export of wheat).

Meanwhile, China intends to maintain a 95%

self-sufficiency target for wheat and rice.

Acreage under crop, ths ha (2004-2016)

46%

18%

12%

11%

6%6% 1%

Wheat

Grain cropsexcluding wheat

Vegetables

Potato

Gourds

Oil crop

Sugar beet0

5,000

10,000

15,000

20,000

25,000

2004 2007 2010 2013 2016

Sugar beet

Gourds

Vegetables

Potato

Oil crop

Feed crop

Grain cropsexcluding wheatWheat

Wheat plantings decreased by 10% to 12.4mln ha in

2016 compared to 2011, driven by the policy aimed at

diversifying crop acreage. By 2021, the fields of wheat is

anticipated to decline to 10.1mln ha.

Source: Agency of Statistics, Samruk-Kazyna

5

62%

Pear

(Belgium and

the Netherlands)

Varieties of crop have high domestic demand and export

potential

The share of import in domestic

consumption, % (2016)

Flour Oil crop Wheat Barley Rice

The share of export in domestic

production, % (2016)

Load capacity at processing

plants,% (2015)

27% 37%

Fruits and

vegetablesSugar

65%

30%

Kazakhstan has all conditions to take its niche in the

world food market, thanks to organic food. In 2015,

organic agricultural products of 300 ths tones were

produced with exported products of 62 ths tones

(USD10mln) to the UK, Italy, Germany, France and

etc. Challenges: imperfect legislation and the lack of

domestic certification system.

24% 15%

Processed/canned

fruits&nuts

Processed/canned

vegetables

Grape Apple Vegetableoil

Sugar

21%33%34%51%

75%

98%

Sugar from Brazil

(72%, cane sugar)

Export of product to

country / total export

of product

Import of product from

country / total import

of product

Foreign trade in agricultural products, % (2016)

75%

Apples

23%

Potato

Source: Agency of Statistics, Samruk-Kazyna

Wheat

38% Rice

47%

Rice

35%

89%

GrapeRape

seed24%

84%

Vegetable

oil

Flax seed

39%

Rape

seed

39%

Barley

81%

Flour

61%

Flax oil

98%

Rape oil

98%

Safflower

seed

98%

Sunflower

seed

41%

37%

6

Livestock production constrained by low genetic potential,

high number of diseases, shortage of fodder production

In 2015, the share of breeding stock in cattle

stood at 11%, compared to the level in

developed countries of 40-50%.

Chickenmeat

Cheese andcottagecheese

Sausage Butter Margarine

Average share of import in domestic

consumption, % (2016)

Most livestock production is now in the south

and southeastern regions, with smaller herds,

greater reliance on pastoral farming systems,

and lower risk.

New generation of intensive beef production

farms are expanding in the northern Kazakhstan.

Fish processing

plantsFat and oil

products

Load capacity at processing

plants, % (2015)

52% 46%42%

35%

14 quintals of feed units are attributed to one

notional livestock head, which is lower by two

times than zoo technical norms.

Foreign trade in agricultural products, % (2016)

30%

12,688

Feed crop production, ths.

tones (2015-2021F)

20212015

5,64350% 43%

Source: Agency of Statistics, Samruk-Kazyna

51%

Cattle

Import of product from

country / total import

of product

21%

Butter

Poultry from the US

(71%)

87%

Sausages

86%

Fermented

milk products

83%

Margarine

57%

Cheese and

cottage

21%

Butter

23%

Butter

7

Outdated equipment and weak demand for domestically-

produced machinery

109134 140

173 164

253

0

50

100

150

200

250

300

2011 2012 2013 2014 2015 2016

0

20

40

60

80

100

120

140

160

Tractors Harvesterthresher

Harvester Seeding -machine

Older than 15 years Less than 15 years

Number of existing machinery, ths

(2007-2015)

Machinery broken down by age, units

ths (2015)

Investments in capital, KZT bln

(2011-2016)

The average age of more than 80% of combine harvesters and tractors is 13-14 years with the normative working period of 8-10

years.

During 2010-2016, tractors of 5%, grain harvester of 15%, and seeding-machine of 5% were withdrawn annually. Annual

average volume of purchased agricultural machinery accounted for KZT80bln with domestically-produced machinery of

KZT20.5bln.

Among 30 machinery and its components producers, main market participants stand at 15. Prices of domestically-

produced machinery reflect the prices of imported components. According to market sources, agricultural machinery

of foreign manufacture is of better quality compared to domestically-produced machinery due to fuel and time

efficiency, and longer-term working life.

Source: Agency of Statistics, Samruk-Kazyna

309

316

307

299

290

295

300

305

310

315

320

2006 2009 2012 2015

8

State support on the agriculture sector in Kazakhstan

In 2017, the transition from the “per a hectare” subsidies for grain

and oil crop growing in favor of subsidies for the delivered products

for processing within the State program of development of

agriculture 2017−2021 will lead to diversification of acreage.

The Action Plan developed by the Ministry of Agriculture includes

134 actions on 8 tasks of the State Program. The Action Plan in

2017-2021 requires KZT2.4tln, including the state budget of

KZT1.2tln and local budgets of KZT852bln, MFI and businesses

of KZT306bln.

The number of recipients of the state support will increase by 7.5times. The Fund of financial support for agriculture is expected to

provide lending to cooperatives, with repayment of the initial

payment through investment subsidies, as well as allocation of

subsidies to cooperatives for recovering VAT costs.

In 2015, a Treaty on the Eurasian Economic Union came into effect,

with the Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan. In

November 2015, Kazakhstan officially became the 162nd member of

the WTO.

As part of its accession to the WTO, Kazakhstan assumed a number

of commitments to liberalize access to its domestic market. Any

taxation preferences will be abolished by 1 January 2018. However,

Kazakhstan succeeded to retain agricultural subsidy of 8.5% in

agricultural gross output without reference to products (e.g.

expenses for fuels and lubricants).

Source: the State program 2017 – 2021, Samruk-Kazyna

360 398 429

559628

0

200

400

600

800

1,000

1,200

2017 2018 2019 2020 2021

The support to be provided according to the

State Program 2017-2021, KZT bln (2017-2021)

KZT2,374bln

9

State support on the agriculture sector in Kazakhstan vs

OECD and non-OECD countries

Source: OECD, the State program 2017 – 2021, Samruk-Kazyna

Structure of agricultural support

For OECD countries as a whole, support has roughly halved over the past 30 years and now accounts for 17% of gross farm

receipts. At the same time, average support levels in the emerging economies have increased from very low levels to approach

the OECD average. In Kazakhstan, the share of producer support estimate in gross farm receipt fluctuated substantially prior to

2009 and has stabilized at around 12% in more recent years.

Kazakhstan along with Australia, Brazil, Canada, Chile, Colombia, Israel, Mexico, New Zealand, South Africa, Ukraine, the

United States, and Viet Nam have support levels below the OECD average. Meanwhile, support levels in the EU, Russia and

Turkey are roughly at that average. Support to farmers continues to be high in Japan, Korea, Iceland, Norway and Switzerland,

where around half of gross farm receipts come from agricultural policies.

62 62

56

49

43

29

21 20

15 14 139 9 9

4 3 3 1 1 00

10

20

30

40

50

60

70

The share of producer support estimate of gross farm

receipts, % (1995-2015)

10

Country rankings on Enabling the Business of Agriculture

2017 by economies conducted by World Bank

Source: World Bank, Samruk-Kazyna

The distance-to-frontier* (DTF) indicators on Kazakhstan

The World Bank’s Enabling the

Business of Agriculture ranking

focuses on regulations that affect the

functioning of agriculture and

agribusinesses.

WB views that governments can help

by establishing appropriate regulatory

systems that ensure the safety and

quality of agricultural goods and

services without being costly or

burdensome overall.

*The DTF score benchmarks countries

with respect to regulatory best practice,

showing the absolute distance to the

best performance on each indicator.

In Kazakhstan, further development of

regulations in agriculture sector might

be needed, especially in transport,

finance, seed sectors.

81.44

73.14

70.84

65.73

61.11

53.65

36.73

19.44

0 10 20 30 40 50 60 70 80 90 100

Machinery

Fertilizer

Markets

Water

ICT

Seed

Finance

Transport

11Source: OECD, Samruk-Kazyna

Farm management practices in OECD countries

20 %Food demand is projected to rise globally by at least

20% over the next 15 years, with the largest

increases in Sub- Saharan Africa, South Asia and

East Asia.

25 %Agriculture is a contributor to climate change, accounting

for 25% of greenhouse gas emissions, and is adversely

affected by it.

Agriculture accounts for approximately 70% of the

water used in the world today (45% in the OECD

area).70 % 24 %

UNEP stated that 24% of the global land area has

suffered declines in health and productivity over the past

quarter-century as a result of unsustainable land-use.

• Conversion agriculture (without any soil tillage or as little as possible) helps to preserve the soil’s fertility and organic content; to retain moisture,

especially in dry years. Yields on farms that have adopted soil conservation practices improve under rain-fed agro-systems in dry climates. In

Kazakhstan, a gradual increase in crop diversification, combined with more effective use of conservation agriculture, might enhance capacity to resist

drought, according to WB (conservation agriculture area as a percentage of arable land area at 6.8%, Ukraine – 2.2%, Canada – 39.8%, Australia –

37.7% in 2013). Soil conservation practices are also considered water conservation practices, with the highest levels of water conservation is drip

irrigation.

• On the organic agriculture front, organic cultivation avoids or limits the use of synthetic chemical inputs, including fertilizers and pesticides, and the

over-use of antibiotics and food additives. The empirical evidence shows positive environmental effects on soil and water. Higher prices and the state

support are expected to offset lower yields and higher economic costs. Organic agricultural land increased by 48% to 43.1mln ha in 2013 compared to

2005. Organic agriculture sees rapid growth but accounts for a modest proportion of global agricultural land (1%, Russia – 0%, Ukraine – 1%, Austria –

17%, Sweden – 16%).

• Integrated Pest Management is an ecosystem approach to crop production and protection that combines different management strategies and

practices to grow healthy crops and minimize the use of pesticides (FAO). It is also a decision-based process involving coordinated use of multiple

tactics for optimizing the control of all classes of pests (insects, pathogens, weeds, vertebrates) in an ecologically and economically sound manner

(Prokopy, 2003). Integrated pest management is not applied widely in northern Kazakhstan, however, pests are present on wheat and, though

noticed, are not given attention, even though the damage they cause may be substantial (WB).

• Modern biotechnology can: speed up conventional breeding programs and provide farmers with disease-free planting materials; create crops that

are resistant to pests and diseases (replacing toxic chemicals); provide vaccines to help in controlling animal diseases; provide value-enhanced

products which can address more complex challenges (drought tolerance and nitrogen-use efficiency).

12

Precision agriculture: overview

Precision farming is a modern farming management

concept using digital techniques to monitor and optimize

agricultural production processes. Technologies promise to

save costs, reduce environmental impact and produce better

food. Large farms in Europe, the US and Australia succeed in

adoption of precision agriculture.

Precision agriculture focuses mostly on arable crop production,

however precision farming technologies are also applicable to

the entire agro-food production system (animal industries,

fisheries). Technologies can be applied to production of: maize,

soybean, potato, wheat, sugar beet, sugarcane, barley,

sorghum, cotton, oat, rice, wine grape, citrus, bananas, tea,

date palm, tobacco, olive, tomato and kiwifruit

Evidence on the use of precision agriculture relies mainly on

information from sporadic and geographically dispersed

surveys. Data on precision agriculture is often dated.

234 studies published from 1988 to 2005

evidence that implementation of precision

agriculture was profitable in average of 68%. The

initial investment required (software and

machinery) and insufficient knowledge limit the

adoption of precision farming.

68 %

Controlled Traffic Farming

Variable Rate Technology

13

Precision agriculture description is still evolving

Precision agriculture is a fairly broad term, including wide range of technologies. Soil and yield mapping (GPS), GPS tractor guidance

systems, and variable-rate input application are main technologies of precision agriculture. Within these categories, there are numerous

components, enabling the collection of data through sensors, mapping technologies, mobile devices, climate and nutrient sensors, and yield

monitoring devices. API connectivity and cloud storage can be used to collect, store, and manage the data.

Fully integrated farm

Source: United States Department of Agriculture, Samruk-Kazyna

Computer Mapping

GPS-based computer mapping of yield

and soil data enables to customize crop

management across fields. In order to

create soil imaging of fields, satellites,

aircraft or UAVs (drones) could be used.

Controlled Traffic Farming

CTF enables machinery to drive along

repeatable tracks with accuracy. This is a

whole-farm approach that aims at

avoiding unnecessary crop damage and

soil compaction by heavy machinery.

Variable-rate input application

Variable Rate Application allows precise

seeding and application of herbicides,

pesticides and nutrients, resulting in cost

reduction.

14

Precision agriculture: the adoption of precision agriculture

is on the rise

The survey of crop input dealers in the US about their use of

agricultural precision technologies, % (2004-2015)

0

10

20

30

40

50

60

70

80

90

2004 2006 2008 2011 2015

GPS guidance with autocontrol/ autosteer

GPS-enabled sprayerboom/nozzle control

GPS guidance withmanual control

Soil sampling with GPS

Field mapping with GIS

Yield monitor data analysis

VRT Fertilizer

VRT Seeding prescription

Base: 261 respondents

Source: CropLife magazine and the Departments of Agricultural Economics and Agronomy at Purdue University, OECD, Farming Dealer 2013

Baseline Survey Samruk-Kazyna

Reasons for hesitating with the

introduction of precision farming, % 2001 2005

Machinery is still too expensive 42.1 62.9

The use of the technology is complicated 6.3 11.4

The benefit of the precision farming

technologies is not yet proved 11.1 9.0

Waiting until precision farming proved to be

no longer problematic 28.6 24.0

I will use precision farming but I had no time

yet 15.4 13.2

My fields are too small 15.4 17.4

In Germany, the percentage of precision farmers

increased to 10% in 2007 from 7% in 2001.

20 %20% of Australian grain growers have implemented

precision agriculture technologies to manage

variable inputs. CTF was implemented by 25% of

farms according to the data available from an

Australian Bureau of Statistics.

In the US, the only technology in a declining trend is GPS guidance

with manual control, because it is being replaces with autoguidance

technology. Meanwhile, the most widely offered VRT service was

single nutrient fertilizer application.

10 %

22 %In the UK, GPS technologies (auto-steering and

auto-guidance systems) were adopted by 22% of

surveyed farms in 2012.

Technologies

Most

important

Least

important

GPS and Guidance 91% 9%

Application Technology 86% 14%

Planter Controls 77% 23%

Software Service 75% 25%

Customer Training & Seminars 74% 26%

Data Management Services 68% 32%

Variable Rate Technology 61% 39%

Agronomic Services 57% 43%

Water Management 39% 61%

15

Precision agriculture: modest growth of adoption rates

35%

23%

11%

10%

8%

3%3%

7%OEMs (Base Model andAdd-Ons)Trimble

Retailers/resellers

Input companies

Raven

AgJunction

Topcon

Other

The Malaysian Agrifood Corporation (the Khazanah-owned

corporation) is committed to secure fresh fruits and

vegetables from local growers that adhere to SALM (the

Malaysian Good Agriculture Practices Certification) to supply

high quality products to the market. MAFC invests in

Controlled Environment Farms greenhouses while adhering

to sustainable agriculture practices, such as precision

farming, usage of organic fertilizers, soil conservation and etc.

Estimated precision agriculture industry revenue market share

Source: William Blair, Trimble, Samruk-Kazyna

Original equipment manufacturers* Deere

Broader solution providers Trimble, Raven, AgJunction

Niche suppliers Ag Leader

Sensor manufacturers Sensata Technologies

Satellite service providers Topcon

*OEMs integrate precision agriculture technologies into their

equipment.

More and more, food companies are requiring that information is

tracked and kept across the whole value chain. Thus, the entire supply

chain is expected to be connected digitally.

Technologies are becoming software-based, relying on a cloud based

infrastructure and machine-to-machine interconnectivity.

In Kazakhstan, Navistar Asia, authorized dealer of Trimble, showed

several successful cases of adoption of GPS guidance. One of them,

Balkashinskyi LLP (40ths ha), implemented GPS guidance and

anticipates payback period of 1-2 years.

85%Approximately 85% of corn growers reported higher

profitability when using precision agriculture technologies,

according to a Precision Ag Institute survey.

5%Over time, input savings from precision agriculture

technologies could be roughly USD20 or more per acre (or

0.4 hectars), the yield benefit could be 5%, and revenues

could increase by more than USD30 per acre (for corn

growers).

Precision Ag Implement Guidance Corn/ Soybean 10% reduction in fertilizer

Enterprise Solutions Asset & Fleet

Management Corn/ Soybean

10% reduction in input

use

Agriculture Services Imagery Small Grains 25% reduction input use

Agriculture Services Soil

Information Services Viticulture 40% inputs

16

Studies on economic benefits of precision agriculture

technologies

Source: OECD

17

Agricultural producers should be provided with training,

knowledge and experience in precision farming

The solutions in precision agriculture provided in Kazakhstan is fragmentary. While an adoption rate could not be estimated, as

Kazakhstan does not collect statistics on the use of precision agriculture, and precision agriculture dealers do not reveal its

sales data.

The overwhelming amount of data, which is collected from seeding through harvest, should be translated into

useable information and requires more time than some farmers are willing to invest. The high initial costs involved

and the time-consuming learning process required are viewed as the main obstacles. Thus, agricultural producers

should be provided with training, knowledge and experience in precision farming, and an acquisition and transfer of

precision farming knowledge should be as simple as possible.

High risk of insufficient return on investment, the difficulty in quantifying the benefits of precision farming, and

incompatibility of machines from different manufacturers might constrain the adoption of precision agriculture. In addition,

Kazakhstan still faces a wide range of fundamental issues that need to be addressed in parallel or prior to introducing

new technologies.

The newly established Kazakh-German center of precision farming at the Kazakh Agro Technical

University has harvester laboratories, mechanization of forage preparation and agro-engineering, and

also pilot meat and milk processing plant. The center is aimed at training on precision agriculture.

An adoption of precision agriculture along with solving fundamental issues is anticipated to

improve efficiency, optimize crop yields, and increase profitability of production.

18

Conclusion

Kazakhstan has substantial agricultural potential, which is evidenced by growth of agricultural output and investments

in the past years. However, fundamental issues and challenges remain i.e. improper usage of fertilizers, low usage of

animal feed, outdated equipment, weak agricultural insurance, poor infrastructure (especially in rural areas), shortage

of raw materials for processing plants (oil and fat production, cheese, canned fruits and vegetables and etc).

We anticipate a gradual increase in crop diversification through the planting of higher cash-earning field crops

(oilseeds and pulses), fodder and feed crops, and feed grains, which could provide the basis for a stronger capability

to resist drought.

Kazakhstan’s agricultural producers lack necessary base tools enabling an introduction of digital technologies (only

less than 33% of agricultural companies reported on having computers). We view only certain number of agricultural

producers can afford to adopt precision farming solutions, as it requires significant capital investments and

technological readiness of producer.

However, we view positively the introduction of precision agriculture in Kazakhstan’s agricultural sector, as it

will significantly enhance the effectiveness of agricultural production in Kazakhstan. It is crucial to support farmers and

promote the adoption of precision agriculture methods. Agricultural producers should be provided with training,

knowledge and experience in precision farming. The added value of the implemented technologies should be tested

and demonstrated in practice. In case of the small field size and limited revenues, cooperative approaches could be

useful in implementation of precision agriculture.

19

Thank You

20

Appendix 1. Several good regulatory practices provided by

World Bank

Source: World Bank, Samruk-Kazyna

Seed

Fertilizer

Machinery

Finance

Markets

Transport

Laws that do not obstruct the production or sale of agricultural goods domestically and a legal environment that facilitates the

establishment and commercial operations of farmers’ organizations.

Promotion of fair competition and professionalism by establishing quality criteria for access to the transport sector through

efficient licensing and mandatory technical inspections.

Increased competition in the domestic market by reducing additional discriminatory requirements and granting transport rights to

foreign trucking companies.

Reduced market distortions by discouraging queueing systems and price interventions and promoting freight exchange

platforms for road

Facilitation of cross-border transport by harmonizing or mutually recognizing road transport standards among regional trading

partners.

Effective microfinance institutions by balancing supervision and the ability to take deposits.

Reliable credit unions complying with disclosure and liquidity standards.

Payments and other financial services accessible digitally and through retail agents.

Electronic receipts issued by warehouse operators that farmers can pledge to secure a loan.

Price controls are not imposed on agricultural products and agricultural products do not have to be sold at an auction or in a

specific marketplace.

Efficient and affordable requirements to export major agricultural products, including membership, licensing and per-shipment

documentation.

Good quality fertilizer by requiring appropriate labeling and prohibiting open fertilizer bags.

Streamlined import procedures to facilitate timely availability and delivery of agricultural tractors.

Appropriate testing of agricultural machinery to ensure imported tractors suit country conditions.

Tractor registration and appropriate after-sales service to improve tractor durability.

Compliance with national and international performance standards to ensure high-quality tractors.

Enforcement of safety standards such as roll-over protective structures and seatbelts.

Variety release committee with representation of the private sector, which meets shortly after each cropping season.

The availability online of an official variety catalog updated after each cropping season and specifying agro-ecological zones.

Availability of initial seed classes to the private sector, which is granted access to breeder and foundation seed, and to material

stored in the national gene bank.

In countries where the certification is compulsory, official fee schedules for certification activities are publicly available, and

nongovernmental inspectors and/or laboratories can be accredited to carry out part or all of seed certification activities.

Efficient and affordable fertilizer registration for companies, without the need for re-registration.

Timely availability of fertilizer by the private sector through streamlined import procedures.

21

Appendix 2. Effects of traditional tillage, conservation

tillage and conservation agriculture

Source: OECD

22

Appendix 3. Precision farming market

Source: MarketsandMarkets Analysis

23

Appendix 4. Representative current products and solutions

across the farming season

Source: William Blair & Company