As Kazakhstan continues to diversify its economy, the government is focusing on supporting domestic manufacturers, with a particular emphasis on the machine-building industry. A key move in this strategy was the government's decision last year to cease subsidies for imported tractors and combines, instead channeling resources into supporting local production. This policy shift has spurred greater localisation in agricultural machinery production, highlighted by the launch of American firm John Deere’s manufacturing facility in Kostanay.
John Deere, a global leader in agricultural machinery, has begun production of self-propelled, trailed, and mounted equipment at the Localisation Centre of the Agromash plant. This marks a crucial milestone in Kazakhstan’s efforts to strengthen its domestic machine-building sector and integrate advanced technologies into the agricultural industry.
The Agromash plant, which serves as the largest localised industrial site in the country for agricultural machinery, will serve as the foundation for this new production line. The facility will provide robust production capabilities and technical support, contributing to the renewal of Kazakhstan’s agricultural machinery fleet and offering local farmers access to modern, locally adapted machinery. The localisation of John Deere’s production is expected to not only boost production levels but also expand the range of tractors and combines available to farmers, making them more accessible through state-backed purchasing programs.
The government's preferential leasing program, which was initiated under the guidance of President Tokayev, plays a pivotal role in supporting local farmers. This initiative allows Kazakhstani agricultural producers to purchase domestically produced machinery at an annual interest rate of 5%. For 2025, KZT 120bn ($238mn) has been allocated to fund this program, enabling 3,200 local farmers to modernise their fleets under the scheme.
Dinara Shukizhanova, president of the Agromash plant, highlighted the importance of political and economic reforms in facilitating industrial cooperation with John Deere. These reforms have paved the way for the development of high-tech projects that not only create new jobs but also focus on the introduction of innovative technologies and the training of highly skilled professionals. The collaboration with John Deere is expected to train the next generation of engineers and specialists, with an emphasis on fostering engineering expertise.
The project is led by Eurasia Group, the official representative of the John Deere brand in Kazakhstan. As part of the collaboration, Eurasia Group will continue to sell agricultural machinery produced locally while providing services and introducing digital solutions to enhance the agricultural sector. The initiative will also drive investment in the local economy, education, and workforce development, including the training of agronomists, engineers, mechanisers, and IT specialists.
Looking ahead, the implementation of this project will involve the construction of three modern service centres over the next five years. These centres will serve as key hubs for digital innovation, boosting the efficiency of Kazakhstan’s agro-industrial complex and solidifying the country’s position as a growing player in the global agricultural machinery market.
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