Kusto Group signs landmark agreement with Valley Irrigation and Government of Kazakhstan

Kusto Group has established a joint venture with Valley Irrigation, a Valmont company, to jointly construct the first state-of-the-art, center pivot manufacturing facility in the Republic of Kazakhstan. The introduction of mechanized irrigation technologies that rely on smart technology will help improve crop yields, improve the efficient use of water resources, and raise the standard of living for thousands of farmers.

Kusto Group has established a joint venture with Valley Irrigation, a Valmont company, to jointly construct the first state-of-the-art, center pivot manufacturing facility in the Republic of Kazakhstan. The introduction of mechanized irrigation technologies that rely on smart technology will help improve crop yields, improve the efficient use of water resources, and raise the standard of living for thousands of farmers.

The investment is supported by a formal Investment Agreement with the Government of Kazakhstan, which has pledged to purchase 4,000 pivots over the next eleven years to help drive the modernization and enhancement of the agricultural sector.

The agreement includes the creation of a network of demonstration farms and lays out a roadmap for the construction of the production facility. The manufacturing plant will have an annual capacity of 1,000 linear and pivot irrigation machines.

The formation of a network of demonstration farms will provide education and training to Kazakhstan’s farmers and other qualified personnel in the use of advanced agricultural technologies. It is estimated that Valley’s technologies will increase crop productivity and reduce water usage in Kazakhstan’s agriculture by more than 50%.

Chairman of Kusto Group Yerkin Tatishev said, “The agreement signed today creates a world-class platform that will enable Kazakhstan to unlock its enormous agricultural potential. Valley brings more than 70 years of experience and know-how that will help our farmers and growers create sustainable incomes, build new jobs and fulfil the goal of helping Kazakhstan become a global food provider to the world.”

Speaking about the agreement, Kazakhstan Prime Minister, Askar Mamin said “We are excited to welcome Valmont to Kazakhstan and work together with the global leader in mechanized irrigation. The use of advanced technologies by Valley will have a ‘multiplier effect’ on crop production, yield enhancement and the creation of a sustainable forage base for livestock. Together, we will make Kazakhstan an agricultural leader,”

Kazakhstan is the ninth-largest country in the world by land mass – the world’s largest landlocked country – with a population of 18 million. The country’s enormous natural potential makes agriculture one of the priority sectors for the government’s efforts to attract international investment. Prime Minister Mamin noted that Kazakhstan plans to increase the area of irrigated land from 1.4 million hectares to 2 million by 2022, and to 3 million hectares (7.4 million acres) by 2030.

“Kazakhstan has tremendous potential to be an agricultural leader in Central Asia,” said Josh Dixon, Vice President & General Manager, International Irrigation for Valley. “The government of Kazakhstan is looking to Valley to help them institute best practices for farming that are sustainable and that produce higher and better yields while using fewer resources.”