Production chain in cotton production in the Republic of Kazakhstan: problem solving in an integrated system

Cotton complex occupies a significant place in the economy of the Republic of Kazakhstan. The main production - cotton fiber is a competitive technical product in the world market. Income from its sale is an important article of currency receipts to the budget of the country. The publication is devoted to the problem of creating an integrated production chain in the cotton industry of Kazakhstan. In the republic for a long period of time cotton as a raw material was realized for export, and for domestic needs in the textile industry imported cheap varieties from Uzbekistan, Turkey, China, countries of South-East Asia. Currently, the share of textile production in the volume of manufacturing industry is not more than 1 %, in developed countries this indicator is 6-8 %. Aim - economic substantiation of organization of technological processes by combining stages from raw cotton processing to obtaining finished textile products with high added value. Methods - system approach in studying the integration of stages of cotton secondary processing. By means of the economic-mathematical model the marginal income from the output of competitive products is calculated. Results - it is shown that the existing methods of management do not serve as a basis for labor productivity growth, achievement of production efficiency. use of innovations. The authors recommend that the largest part of raw materials should be processed in the country, for which it is necessary to form a production chain from cotton harvesting to output of final textile goods. Conclusions - the model of gross profit calculation confirms the high efficiency of the proposed integration. The implementation of the proposals will allow to protect the domestic market, implement programs for the development of the agrarian sector, and carry out an early transition to new technologies.