U.S. markets closed
  • S&P Futures

    3,828.25
    +0.25 (+0.01%)
     
  • Dow Futures

    31,348.00
    -23.00 (-0.07%)
     
  • Nasdaq Futures

    12,789.25
    -42.50 (-0.33%)
     
  • Russell 2000 Futures

    2,184.20
    -15.80 (-0.72%)
     
  • Crude Oil

    63.17
    -0.36 (-0.57%)
     
  • Gold

    1,771.10
    -4.30 (-0.24%)
     
  • Silver

    27.43
    -0.25 (-0.90%)
     
  • EUR/USD

    1.2160
    -0.0027 (-0.22%)
     
  • 10-Yr Bond

    1.5180
    +0.1290 (+9.29%)
     
  • Vix

    28.89
    +7.55 (+35.38%)
     
  • GBP/USD

    1.3977
    -0.0035 (-0.25%)
     
  • USD/JPY

    106.0600
    -0.1700 (-0.16%)
     
  • BTC-USD

    47,578.64
    -3,000.20 (-5.93%)
     
  • CMC Crypto 200

    949.82
    -44.84 (-4.51%)
     
  • FTSE 100

    6,651.96
    -7.01 (-0.11%)
     
  • Nikkei 225

    29,372.98
    -795.29 (-2.64%)
     

Valley® Irrigation and Kusto Group® Form Joint Venture to Establish Sustainable Agriculture in Central Asia through Agreement with Government of Kazakhstan

  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
  • Oops!
    Something went wrong.
    Please try again later.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210112005706/en/

Contacts

Andrew Oerman, Valley Irrigation
+1 (402) 315-7213
Andrew.Oerman@valmont.com