Since the beginning of 2013, the output growth in agriculture exceeded 21 billion tenge, which is 2.2% more compared with 2012. The largest share of this volume or 19.5 billion tenge falls on livestock and poultry products. Additionally, experts noted that Kazakhstan’s farms are launching projects aimed at egg production. Foreign entrepreneurs are paying special attention to this business. For example, a direct investments fund, which is part of the Kazyna Capital Management state-run fund, directed a few dozen million US dollars to the modernization of a poultry farm in the Almaty region.

David HERBADA, CHIEF INVESTMENT OFFICER, FALAH GROWTH FUND:
- All finance is from our fund, from Falah Growth Fund, so basically we invest 100% of the fund. So there is ours. That’s it is the share of equity for the management that we are providing basically in the top management of the world fund. So you can basically see that we have bought the whole fund. Falah Growth Fund can be described basically as a private equity fund is the governmental fund between the Abu Dhabi government and the Kazakhstan corporate. And individual does this investment and I am here as an official.

Altai MAMANBAYEV, MANAGING DIRECTOR, FALAH GROWTH FUND:
- We were aimed at restoring and launching a manufactory as well as sending produce to local markets. Our experts noted that the Almaty market has a lot of imported produce. This enterprise has promising growth potential.

Expert said that the enterprise restored poultry houses, fixed equipment and attracted highly qualified specialists. After reaching its full capacity, the enterprise will be producing over 200 million eggs per year. In addition, the enterprise closed a number of agreements with foreign companies for the delivery of hatching eggs and chickens. Moreover, modernization of the enterprise allowed the company to create 100 new jobs and next year it is planned to increase this number to 200. The issue of fodder supplies from local farms has also been resolved.

Altai MAMANBAYEV, MANAGING DIRECTOR, FALAH GROWTH FUND:
- We have also closed contracts with key suppliers from the Almaty region. At present, we are negotiating about the quality of fodder and we are happy to establish relations with suppliers. We have almost no fodder issues, since local suppliers fully satisfy the needs of the farm. We are now resolving the issue of food supply security replacing imported goods with locally produced fresh and healthy food.

Specialists also claim that in recent years, instruments for work with distressed assets, which direct investment funds offer, have become more popular among medium and large businesses. In the post-crisis time some business entities, who have debts in banks are in need of long-term capital injections. As a result, choosing a direct investment fund, which shares risks of enterprises, is quite reasonable, experts say.

David HERBADA, CHIEF INVESTMENT OFFICER, FALAH GROWTH FUND:
- The business is improving and I think that we have CIS mandate so we can technically invest in these countries so far. We have the communizing of growth, safety intense for law framework and legal framework, high works. It is also the fund feel more comfortable in these relationships. So we can find this possible.

At present, the Karaganda region is the leader of the Kazakhstan egg market. In 2012 this region demonstrated 25% growth in production. Poultry production units of the region are sending 20% of their produce to Astana for the development of its food belt. Enterprises of the West and South Kazakhstan regions as well as the Almaty region are following the Karaganda region in terms of output volumes.