Cost structure in Kazakhstan’s grain farming and methods of its optimisation

The optimisation of costs in Kazakhstan's grain farming is a pressing issue driven by the need to enhance the economic efficiency of agricultural production amid rising resource costs and increasing competition in the international market. The objective of this study was to substantiate approaches to reducing costs in grain farming by analysing cost structures and assessing the effectiveness of technological and economic measures. The study employed variation statistics, regression analysis, econometric modelling, cost-benefit analysis, and investment profitability calculations to evaluate the efficiency of various production strategies. The research findings demonstrated that the key directions for cost optimisation included the introduction of minimum tillage technologies, particularly no-till and strip-till systems, automation of agrotechnical processes, rational use of fertilisers and plant protection products, as well as the utilisation of digital platforms for product sales. An analysis of statistical data for 2020-2024 indicated that the adoption of minimum tillage technologies contributed to a 50-60% reduction in fuel costs, a 20-25% decrease in machinery depreciation costs, and a 15-20% reduction in labour costs. Automated agricultural management systems enabled an 18-22% reduction in fertiliser and plant protection product costs due to precise resource distribution. Optimisation of logistical processes and constructing grain storage facilities contributed to a 12-18% reduction in product losses during transportation and a 10-15% decrease in logistics costs. The use of digital platforms for product sales ensured a 40-50% reduction in transaction costs and a 60% decrease in buyer search costs. The overall effect of implementing the proposed measures allowed for a 12-17% reduction in grain production costs, depending on farm scale and applied technologies. The proposed recommendations were aimed at reducing production costs, ensuring the financial stability of the agricultural sector, and enhancing the competitiveness of Kazakhstan's grain farming

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Publication Details

Journal
Scientific Horizons
Published
2025-03-01
DOI
https://doi.org/10.48077/scihor4.2025.120
Primary Topic
Agricultural Development and Policies
Type
article
Field-Weighted Citation Impact
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article

Cost structure in Kazakhstan’s grain farming and methods of its optimisation

Gulmira Nurbayeva, Zhanymgul Baimukasheva, Aizhan Oralbayeva, Galymzhan Kerimbek et al.
Scientific Horizons
Agricultural Development and Policies
article

Cost structure in Kazakhstan’s grain farming and methods of its optimisation

Gulmira Nurbayeva, Zhanymgul Baimukasheva, Aizhan Oralbayeva, Galymzhan Kerimbek, Katira Mamutova
article en

Abstract

The optimisation of costs in Kazakhstan's grain farming is a pressing issue driven by the need to enhance the economic efficiency of agricultural production amid rising resource costs and increasing competition in the international market. The objective of this study was to substantiate approaches to reducing costs in grain farming by analysing cost structures and assessing the effectiveness of technological and economic measures. The study employed variation statistics, regression analysis, econometric modelling, cost-benefit analysis, and investment profitability calculations to evaluate the efficiency of various production strategies. The research findings demonstrated that the key directions for cost optimisation included the introduction of minimum tillage technologies, particularly no-till and strip-till systems, automation of agrotechnical processes, rational use of fertilisers and plant protection products, as well as the utilisation of digital platforms for product sales. An analysis of statistical data for 2020-2024 indicated that the adoption of minimum tillage technologies contributed to a 50-60% reduction in fuel costs, a 20-25% decrease in machinery depreciation costs, and a 15-20% reduction in labour costs. Automated agricultural management systems enabled an 18-22% reduction in fertiliser and plant protection product costs due to precise resource distribution. Optimisation of logistical processes and constructing grain storage facilities contributed to a 12-18% reduction in product losses during transportation and a 10-15% decrease in logistics costs. The use of digital platforms for product sales ensured a 40-50% reduction in transaction costs and a 60% decrease in buyer search costs. The overall effect of implementing the proposed measures allowed for a 12-17% reduction in grain production costs, depending on farm scale and applied technologies. The proposed recommendations were aimed at reducing production costs, ensuring the financial stability of the agricultural sector, and enhancing the competitiveness of Kazakhstan's grain farming

Scientific Horizons
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Agricultural Development and Policies
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Cost structure in Kazakhstan’s grain farming and methods of its optimisation — Gulmira Nurbayeva, Zhanymgul Baimukasheva, et al. · Scientific Horizons (2025) | TGRS Research Map | TGRS