World Monitor Magazine WM_KIOGE 2018_Web | Page 56

Social responsibility
Chilik farmers project
In 2011, Philip Morris Kazakhstan developed a comprehensive
Rural Development Program aimed at improving the well-
being of farming communities by introducing effective farm
management techniques and innovative cash crop growing
practices while supporting smallholder farmers to grow food
crops. An Agribusiness Center was opened in 2013 for farmers
and the community and is a place for every farmer to ask for
advice and get help. It is well-equipped with a demonstration
field, training room, computer class and mini-laboratory to do
soil fertility testing as well as opportunities to get advice on
organic crops, safe fertilizers, rotation and other issues.
Major results
Trainings: On the basis of the Agribusiness Center, since
2013 nearly 60 training sessions for more than 1,500
farmers have been organized together with experts from
the University of Florida, University of Wisconsin, the Kazakh
National Agrarian University and DAMU Entrepreneurship
Development Foundation.
Cooperation: In August 2017, the most active participants
of the project created and officially registered a cooperative
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called ‘Chilik Farmers’ (26 members). They receive relevant
knowledge on the Agribusiness Center on how to manage,
organize logistics, keep financial records, etc. in a cooperative.
This mechanism helps secure project sustainability in the
long run – cooperative members are now running their
own business, have regular meetings, sign contracts with
supermarkets, decide on logistic options and develop future
plans.
Direct sales mechanism (exclusion of intermediaries in
supply chain) has been implemented in 2015 by signing an
agreement with Arzan supermarkets in Almaty. In 2018, the
agreement has been signed with METRO supermarket chain,
thus helping to attract more farmers to the direct sales
mechanism. This mechanism helps to increase profitability of
farmers as well as provides an opportunity to Almaty citizens
to buy fresh and local vegetables.
The project has been recognized by the President Nursultan
Nazarbayev in 2015 and Received an International CSR
Excellence Awards in 2018.