Valley® Irrigation & Kusto Group® Form Joint Venture to Establish Sustainable Agriculture in Central Asia through Agreement...
January 12 2021 - 9:30AM
Business Wire
Valley® Irrigation, a Valmont® (NYSE: VMI) company, is advancing
its collaboration with the Republic of Kazakhstan and announcing
its joint venture with private holding company Kusto Group®. The
strategic, multi-year project will improve sustainability and
resource conservation, introduce advanced farm technology to local
farmers in the region, and serve as the foundation for making the
country an agricultural hub in Central Asia.
Josh Dixon, Vice President & General Manager,
International Irrigation for Valley, says:
“Kazakhstan has tremendous potential to be an agricultural
leader in Central Asia. The government of Kazakhstan is looking to
Valley to support implementation of precision agriculture best
practices and cutting-edge farming technologies that are
sustainable and that produce better yields while using fewer
resources.”
“In 2018, 67% of the nation’s total water consumption was for
irrigation,” Dixon continues. “Center pivots from Valley are up to
60% more efficient than other irrigation methods predominantly used
in the region. When center pivots are combined with precision
irrigation technology, input costs are reduced and crop yields are
increased.”
Poised to Increase Productivity with Efficient Irrigation
Technology
Kazakhstan is the ninth-largest country in the world by land
mass – the world’s largest landlocked country – with a population
of 18 million. Kazakhstan possesses many natural resources and
seeks to tap into its huge agricultural potential.
Agriculture is already an important economic sector in
Kazakhstan, but there is room for further growth through improved
efficiency. 81% of Kazakhstan is cultivated land, and 80% of
Kazakhstan is predominantly arid steppe or desert.1 Those
statistics, along with the country’s underutilized water channels
and hydroelectric system, highlight the importance of precision
irrigation in the region.
Kusto Group Chairman Yerkin Tatishev says:
“This partnership will enable Kazakhstan to unlock its enormous
agricultural potential. Valley brings 75 years of experience that
will help our growers create sustainable incomes, create new jobs,
and fulfill the goal of helping Kazakhstan become a food provider
to the world.”
The newly created JV, which is registered within the Astana
International Financial Centre, signed firm contracts committing to
the construction of a plant in Kazakhstan for the manufacture of
Valley pivots and a volume guarantee from the government of 4,000
machines. The plant’s annual production capacity will be at least
1,000 pivot irrigation machines.
Transforming the Region through Sustainable
Agriculture
The agreement will create a network of farms designed to
demonstrate advanced irrigation technologies and train local
farmers in responsible water management. Valley solutions
manufactured in Kazakhstan will serve the domestic market and act
as a hub for exports to the region.
“At Valmont, we are committed to conserving resources and
improving life. It is our purpose as a company, and determines how
we go about the business of feeding and clothing the world,” added
Dixon. “This collaboration is an honor to participate in, as it is
economically beneficial for all parties involved and will bring
food security and economic diversification to Central Asia’s
agricultural sector.”
Askar Mamin, Prime Minister of Kazakhstan, says:
“The US capital and technology are strongly represented in
Kazakhstan, and today I am pleased to announce that Valmont joins
the long list of top US companies successfully operating in
Kazakhstan. The UN Food and Agriculture Organization recognized
Kazakhstan as one of the 5 most perspective agriculture producers
globally, and potentially a top player in ensuring regional and
international food security in the coming years. Given the major
increases in the importance of the issue of food security in the
context of the ongoing and potential future pandemics, it is
instrumental that we speed up our efforts in realizing this
potential. This is why we so deeply value the role Valmont
Industries is willing to play in this process by bringing their
production capacity, human capital, and best practices here.”
About Valley Irrigation
Valley Irrigation founded the center pivot irrigation industry
in 1954, and our brand is the worldwide leader in sales, service,
quality and innovation. With historical sales of more than 250,000
center pivots and linears and more than 105,000 connected devices,
Valmont-built equipment annually irrigates approximately 25 million
acres (10 million hectares) around the world. We remain dedicated
to providing innovative, precision irrigation solutions now and
into the future. For more information, please visit
www.valleyirrigation.com
About Kusto Group
Kusto Group Pte. Ltd. (www.kustogroup.com) is a diversified
international holding company, headquartered in Singapore with
roots in Kazakhstan. Today, Kusto is successfully operating in the
agricultural, oil and gas, mining, construction, real estate
development, and construction materials sectors in more than 10
countries across four continents. The success of Kusto is the
result of a strong corporate culture that values courage,
collaboration, partnering with local champions and a focus on
sustainable and ethical development.
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version on businesswire.com: https://www.businesswire.com/news/home/20210112005706/en/
Andrew Oerman, Valley Irrigation +1 (402) 315-7213
Andrew.Oerman@valmont.com
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