Since Kazakhstan is implementing its sectoral program 2018-2027 for the development of dairy farming, the Government recognized the need for suitable financial support measures which have to be provided by the banking sector. The Agrarian Credit Corporation (ACC) plays an important role in agriculture sector of Kazakhstan. ACC is a government agent authorised to implement state policy in the agricultural sector, mainly through providing affordable lending to agricultural entities.
In the context of the bilateral cooperation project “Strengthening of dairy farming competences for the sustainable development of milk production in Kazakhstan”, ADT together with IAK and ACC conducted on October 29-30, 2020 a consecutive two-day online seminar for specialists and lenders of ACC focusing on successful lending to dairy farms.

During the first day Mr. Konstantin Hack, external auditor of cooperative banks in Germany, presented an overview of the German banking system with specific focus on cooperative banking system. In addition, he presented the base lines of German loan business in the agricultural sector including its credit approval process.

By the second day Dr Timm Georg, lending expert of the Agrarian banking department of the “Nord LB” bank in northern Germany, explained how the Nord LB is working with dairy farmers as customers. He elaborated scenarios for corporate finance solutions and their adaptation in the dairy sector under various circumstances. He presented the criteria for credit risk assessment and provided practical examples of the lending process.
Given practical examples for e.g. economic balance sheet analysis and early risk detection, the webinar participants deepened their knowledge in modern agro-banking in milk production, laying the foundation for providing more competent and supportive financing partner.