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143 PRODUCTION CLUSTER IN THE AGRO-INDUSTRIAL COMPLEX AS AFACTOR IN ENSURING FOOD SECURITY ABSTRACT The research focuses onthe functioning ofgrain product cluster enterprises. The study addressed the growth rate and operational characteristics ofgrain product cluster enterprises. Sustainable development ofKazakhstan’seconomic sectors and sectors requires the exploration and implementation ofnew, more efficient forms ofproduction and business activities. Given the current complex socio-economic conditions inagricultural production, the grain product cluster isbecoming one ofthe most in-demand sectors inthe agro-industrial sector. Therefore, apriority area ofnational policy isto increase production volumes both tofully meet domestic demand and toincrease exports. This approach requires the unification ofefforts byall agricultural sector entities, coordination ofactivities, and afocus onachieving high end results. One ofthe triggers for solving this problem isthe integration ofcommodity producers, which allows for the unification ofall links inthe production cycle inthe technological chain “raw material production— finished product production” within asingle complex. Astudy ofdomestic and international experience shows that integrated entities such asgrain product clusters achieve high levels ofefficiency and competitiveness. The development ofgrain product cluster models and mechanisms, the modernization ofagricultural and processing industries, and the selection ofmethods and tools that enhance agribusiness’sresponsiveness toinnovative development require appropriate theoretical and methodological support, taking into account the specifics ofproduction ineach industry. Practical experience shows that, despite the intensification ofintegration processes ingrain product clusters, inefficiencies and the disintegration ofa number ofsuch formations are occurring. This islargely due tothe fact that, under the new economic conditions, the traditional mechanism ofthe grain product cluster inKazakhstan’sagro-industrial complex does not allow for the systematic implementation oflarge-scale innovation processes, limiting itself tominor (local) changes. Successful implementation ofprojects toform and develop grain product clusters requires in-depth study, generalization, and systematization ofthe experience ofusing such amechanism byboth national and foreign companies that have achieved high results inthis area. Currently, the grain product cluster remains inits early stages ofdevelopment, largely due tothe specific high-risk characteristics ofits industries. KEYWORDS Assessment methodology, growth rate, integral indicator, optimization model, trends, development, food security, strategy, socio-economic status, influence, efficiency, grain, trend, trigger, function, location, result. DOI: 10.15587/978-617-8360-18-4.CH5 Perizat Beisekova © The Author(s) of chapter, 2025. This is an Open Access chapter distributed under the terms of the CC BY license 5
144 INTEGRATIVE OPPORTUNITIES OF NATIONAL ECONOMIES The special role ofgrain inthe agricultural sector’scommercial output isdetermined byits strategic importance asa staple food and acrucial— and for some livestock sectors, acrucial— feed component. Furthermore, the Republic of Kazakhstan, due toits inherent natural and other characteristics, has become amajor grain producer. Inthe context ofeconomic transformation, maintaining grain production and ensuring the rational use ofits development potential islargely determined bythe functioning ofthe grain product cluster. Grain production inthe republic has always been one ofthe most important characteristics ofthe country’seconomic independence and prosperity. This highly valuable commodity isstrategic innature, which determines significant state interest ingrain production; onthe other hand, itis the foundation for the development ofthe grain product cluster inthe agricultural sector. The key feature ofthe grain product cluster’sfunctioning isthe specific nature and purpose ofthe goods itprocesses, namely grain and grain products, and their high share inthe national food consumption structure. Bread and grain products, asa vital and irreplaceable commodity, enjoy guaranteed demand from the population. They satisfy approximately athird ofthe population’sdaily food needs, upto 50% ofthe daily protein requirement, 30 to50% ofthe required energy, upto 50–60% ofB vitamins, and upto 80% ofvitamin E. Moreover, grain protein, with its high nutritional value, issignificantly cheaper than animal protein, which, toa certain extent, helps tocombine the issues ofquantity and quality into asingle whole. Grain production isa special element ofthe grain product sub-complex. Grain crops occupy approximately half ofthe area under agricultural crops and decisively determine the level and pace ofdevelopment not only offarming but ofagricultural production asa whole. Asthe largest branch ofagriculture, grain production forms the basis ofthe country’sfood supply and serves asthe raw material base for the development offlour and cereal milling, feed milling, starch production, alcohol production, brewing, and other industries. Grain production islargely responsible for the employment ofa significant portion ofthe population, aswell asthe sectoral, regional, and national economic efficiency ofthe agricultural sector[1]. Along with the social significance ofgrain asa valuable, essential, and everyday food product for the population, aswell asthe basis for livestock production, the financial aspect isalso ofconsiderable importance. Grain isone ofthe most reliable sources ofincome for commodity producers, giving them relative independence inthe reproduction process. The strategic importance ofgrain inthe country’sfood supply isalso determined bysignificant export reserves, which can become asignificant source offoreign exchange revenue for the national budget (Table 5.1). The discrepancy between per capita grain production and consumption across the country, aswell asthe local nature ofproduction ofcertain types ofgrain, necessitate the transportation ofgrain from one region toanother. Akey feature ofgrain, distinguishing itfrom other agricultural products, isits high transportability and suitability for long-term storage, allowing for the rapid implementation oflong-distance interregional grain shipments. Indetermining the principles offormation and operation ofa grain product cluster, amethodological approach isadopted that views the cluster asa complex system ofmarket relations through which the production structure spontaneously adapts tothe volume and structure ofsocial needs, distributing production factors among various industries[2]. Alternatively, acluster can beconceptualized asa collection
CHAPTER 5. PRODUCTION CLUSTER IN THE AGRO-INDUSTRIAL COMPLEX AS A FACTOR IN ENSURING FOOD SECURITY 145 ofmarkets ofvarious types, interconnected bya common goal— ensuring the normal functioning ofthe reproduction process inthe region. Thus, agrain product cluster isa geographically distinct, complex economic system comprising aset ofcommodity relations and connections between its entities, which include rural producers, enterprises and organizations involved inthe storage, processing, and drying ofgrain, and its processing, aswell asinfrastructure facilities that facilitate the accelerated flow ofmaterials, financial resources, and information. Table 5.1 Grain requirements for the production ofprocessed products Name Potential capacity ofenterprises, tons Domestic demand, tons Required amount ofgrain for potential processing, tons Required amount ofgrain for domestic consumption, tons Required area for potential production, thousand hectares Flour 5,139,550 1,800,000 7,342,214 2,580,000 6,440 Compound feed 2,418,750 2,665,700 2,845,588 3,136,117 2,496 Cereals 503,337 337,400 1,198,421 1,997,368 1,051 Alcohol, thousand dal 30,189 3,719 928,892 114,418 814 Total – – 12,315,115 7,827,903 10,801 The study examined the works ofthe following authors onassessing the effectiveness ofgrain product clusters: M.R.Hagerty[3], L. Kaufman, P.J.Rousseeuw[4], T. Hastie[5]. Ananalysis ofthe methods showed that the most probabilistic assessment model ispossible using anon-stationary time series with amathematical model that allows for the assessment ofgrain cluster development trends and its key characteristics. For this purpose, analgorithm was developed that applies the theoretical principles ofmodeling two-parameter monotonic functions. The created program automates the process offinding empirical approximating functions for the trend. The described algorithm uses the least-squares method and atheorem based onthe general property oflinear dependence ofparameters ina class offunctions. This program iscapable ofapproximating trends not only for linear functions but also for nonlinear ones (e.g., quadratic, logarithmic, hyperbolic, exponential, and others). This method for determining anempirical approximating function inthe class ofmonotone two-parameter functions ismore efficient than other methods, requiring less execution time. Atime series isa set ofobservations measured over specified temporal orspatial intervals and arranged chronologically. Examples ofsuch series include annual demand for acommodity, weekly prices for acommodity, food production, etc. Different economists and statisticians define time series using different terms. Some ofthe definitions are given below: –W. N. van Wieringen [6] describes atime series asa set ofquantitative data arranged inthe order oftheir occurrence;
146 INTEGRATIVE OPPORTUNITIES OF NATIONAL ECONOMIES — H. Morris[7] defines atime series asa set ofstatistical observations arranged chronologically; — K.D.Patterson[8] considers atime series tobe statistical data collected, recorded, orobserved insuccessive increments; — C.Y.Chen etal.[9] characterize atime series asa set ofquantities relating todifferent periods oftime orto variables such assteel production, per capita income, gross national product, tobacco prices, orthe industrial production index; — C.H.Meyers[10] defines atime series asa sequence ofrepeated measurements ofa variable, made periodically over time; — W.Z.Hirsch[11] describes atime series asa sequence ofvalues ofthe same variable corresponding tosuccessive points intime; — S. Spiegel[12] defines atime series asa set ofobservations made ata specific time, usually atequal time intervals. Intime series analysis, special attention ispaid toidentifying patterns intheir dynamics over along period. The goal ofstatistics isto provide acharacterization ofchanges instatistical indicators over time. How does acountry’sgross national product and national income change from year toyear? What are the trends inincreasing ordecreasing unemployment and wages? Are there significant fluctuations ingrain yields, and can atrend toward their increase beidentified? These questions can only beanswered using specialized statistical methods designed toanalyze development and change over time, or, asis customary instatistics, tostudy dynamics. Studying patterns ofchange over time isa complex and labor-intensive research process, asany phenomenon under study isinfluenced bynumerous factors acting invarious directions. Instatistical analysis ofdynamics, itis necessary toclearly distinguish between two main elements— trend and variability— inorder toprovide aquantitative characterization ofeach using specific indicators. Toconstruct aclassical mathematical model ofa time series, its components must beanalyzed. These components include the trend ortendency, periodic fluctuations, and random fluctuations. Inother words, this can besymbolically described asfollows ( , , ), t y fTPE= where ytrepresents the level ofthe time series, i.e., the value ofa specific indicator attime t; Tdenotes the trend ortendency that determines the underlying dynamics ofthe series over asignificant time interval; Prepresents periodic fluctuations that exhibit asimilar pattern ofdevelopment over specific periods oftime, associated with seasons. Inother words, these are deviations from the mean that occur periodically and are characterized byseasonality; Edenotes random fluctuations, which represent deviations from the mean ofthe series atspecific points intime and are caused byexternal factors. Obviously, not all time series have the same set ofcomponents. For example, the stationary series mentioned earlier inthe introduction isdescribed asfollows . t y yE = +
CHAPTER 5. PRODUCTION CLUSTER IN THE AGRO-INDUSTRIAL COMPLEX AS A FACTOR IN ENSURING FOOD SECURITY 147 Inother words, the time series depends onthe mean value ofthe level, i.e., the mathematical expectation , y which remains unchanged and isconstant over the entire time interval. Furthermore, the series depends onrandom fluctuations ora random component, which can beexpressed as . t Ey y = − However, most time series are characterized bynon-stationarity and can bedescribed asfollows () , t y ft E= + where the function f(t) = T represents a time dependence describing the patterns ofchanges inthe levels ofthe time series over the entire time interval under consideration; inother words, itis atrend. Incontrast, Erepresents random fluctuations[13]. Functions describing atrend can bedivided into two groups: 1. The first group includes monotonic functions and functions that donot exhibit limiting growth. In other words, these functions continue togrow over time. 2. The second group, incontrast, exhibits limiting growth, orin other words, reaches asaturation level. Tomore accurately identify the type offunction describing atrend, the following preparatory steps are carried out: 1. Identifying the type oftime series todetermine its components. Anassessment ismade ofwhether the time series isstationary, consisting only ofrandom fluctuations and amean, ornon-stationary with atrend orperiodicity, orboth. 2. Given that periodic and random fluctuations are not considered, excess noise isremoved using smoothing methods. Todetermine the trend ofstationarity ornon-stationarity ina time series, methods for identifying the type oftime series are used. The following methods are used toachieve this goal. Before selecting amodel for atime series trend, itis important toestablish the presence ofa trend inthe series. Ifa time series follows atrend, the levels ofthe series are correlated with each other, meaning that each subsequent level depends onthe previous one. This relationship between the values ofthe series isknown asthe autocorrelation ofthe series levels. The following formula isused tomeasure the degree ofautocorrelation , tt tt tt tt yy yy yy yy r−τ −τ −τ −τ − − =σσ where 1, n tt t tt yy yy n −τ =τ+ −τ =−τ ∑
148 INTEGRATIVE OPPORTUNITIES OF NATIONAL ECONOMIES 1, n t t t y yn =τ+ =−τ ∑ 1. n t t t y yn −τ =τ+ −τ =−τ ∑ τis the magnitude ofthe time shift and takes values asnatural numbers. For τ = 1, the first-order autocorrelation coefficient iscalculated, τ = 2 the second, and soon. This coefficient isbetween -1 and +1, and the closer itis tothem, the more pronounced the correlation is. Thus, ifthe time series has atrend, the absolute value ofthe first-order coefficient will beclose toone. Whereas for astationary time series with small fluctuations inlevels, this coefficient will beclose tozero. For further shifts τ = 2, 3,..., the periodicity ofthe time series isstudied, namely, the period ofoscillations, which isequal tothe shift atwhich the coefficient isclosest to±1. For example, amonotonically increasing ordecreasing time series will have apositive correlation coefficient close toone; however, the greater the magnitude ofthe shift, the further itwill move away from one[14]. Thus, ifthe time series has atrend, the absolute value ofthe first-order autocorrelation coefficient will beclose toone. 5.1 DEVELOPMENT TRENDS AND ANALYSIS OFTHE GRAIN PRODUCT CLUSTER The regional grain product cluster isbased onits territorial isolation and close ties between enterprises from various industries within the cluster, including those involved inthe production ofthe final product. Participants inthe regional grain product cluster include: agricultural enterprises; agricultural machinery enterprises; food processing enterprises; integrated agro-industrial complexes (corporations); consulting organizations; research institutes; educational institutions; government agencies; and financial institutions. The cluster core may include enterprises specializing ingrain production, storage, and processing, around which infrastructure organizations are concentrated. The regional cluster was formed inthree stages: the preliminary stage, during which the clustering potential isdetermined and aprogram for implementing cluster projects isdeveloped; the main stage involves activating clustering processes inthe region and determining the composition ofparticipants incluster schemes; and the final stage involves assessing the cluster’sperformance based onindicators characterizing economic development[15]. Cluster development asa tool for enhancing regional competitiveness and innovative economic development isa new approach tothe country’sregional development. The objectives ofthe Kazakhstan cluster initiative are tocreate conditions for maximizing Kazakhstan’scompetitive advantages indeveloping the non-resource sector ofthe economy byengaging private businesses inthe industry. The main grain producer inthe Republic of Kazakhstan isthe northern region: Akmola, Kostanay, and North Kazakhstan regions, which account for approximately 66% ofthe country’sgross harvest. The total area under grain crops isshown inTable 5.2.
CHAPTER 5. PRODUCTION CLUSTER IN THE AGRO-INDUSTRIAL COMPLEX AS A FACTOR IN ENSURING FOOD SECURITY 149 Table 5.2 Dynamics ofgrain crop area inthe Republic of Kazakhstan, 2020–2024, thousand hectares Crop Name 2020 2021 2022 2023 2024 Specific gravity, 2024, % Wheat 11,354.4 11,296.6 12,057.1 12,719.4 12,810.6 81.4 Barley 2,517.0 2,976.8 2,728.8 2,157.5 2,175.6 13.8 Buckwheat 95.8 67.5 55.1 87.1 119.9 0.8 Grain corn 150.1 156.3 162.8 188.7 188.4 1.2 Rye 21.5 21.2 23.9 43.9 34.3 0.2 Oats 235.2 243.5 228.9 202 197.9 1.3 Millet 43.4 50.9 50.5 38.2 37.4 0.2 Sorghum (dzhugara) 3 8.3 7.8 9 17.4 0.1 Corn mixture 86.4 91.8 85.9 69.6 61.3 0.4 Triticale 1.5 0.8 1.6 5.6 6.3 0.04 Rice 101.5 102.0 102.3 99.6 87.9 0.6 Total grains 14,609.8 15,015.7 15,504.7 15,620.6 15,737 100 Source: Office for National Statistics[16, 17] Analyzing Table 5.2, the dynamics ofsown areas ofgrain crops inthe republic of Kazakhstan, wheat in2018 amounted to11,354.4 thousand hectares, and in2022 itincreased to12,810.6 thousand hectares, which isan increase of81.4% ofthe share, also showed anincrease ingrain crops buckwheat from 95.8 thousand hectares to119.9 thousand hectares, grain corn 150.1 thousand hectares to188.4 thousand hectares, rye 21.5 thousand hectares to34.3 thousand hectares, sorghum (dzhugara) 3 thousand hectares to 17.4 thousand hectares, triticale 1.5 thousand hectares to6.3 thousand hectares. The area sown tobarley decreased from 2,517,000hectares in2018 to2,175,600 hectares in2018, accounting for 13.8% ofthe total. Oats, millet, mixed cereals, and rice also saw their area sown todecrease by0.6% to1.3%. In2024, wheat will account for the largest share ofgrain sown area across all farm categories inthe the Republic of Kazakhstan (81.4%), followed bybarley (13.8%), followed byother crops, which range from 0.1% to1.3%. Fig. 5.1 shows the share ofgrain crop area across all farm categories. In2022, wheat (81.4%) accounted for the largest share ofgrain sown area across all farm categories inthe republic, followed by barley (13.8%), followed byother crops, which ranged from 0.1% to1.3%. Table 5.3 shows the dynamics of grain crops byfarm category.
150 INTEGRATIVE OPPORTUNITIES OF NATIONAL ECONOMIES 81.4 1.2 0.8 13.8 0.2 0.2 0.6 0.1 0.4 1.3 Wheat Rye SorghumBarley Oats Buckwheat Millet Grain corn Rice Corn mixture Fig. 5.1 Proportion ofgrain crop acreage inall farm categories inthe republic ofKazakhstan in2024, % Table 5.3 Dynamics ofgrain crop acreage byfarm category inthe Republic ofKazakhstan, 2020–2024, thousand hectares Category offarms 2020 2021 2022 2023 2024 2024/2020, % 2024/2023, % 1 2 3 4 5 6 7 8 Wheat All categories offarms 11,354.4 11,296.6 12,057.1 12,719.4 12,810.6 112.8 100.7 Agricultural enterprises 7,685.1 7,516.6 7,998.9 8,443.8 8,525.7 110.9 101.0 Individual entrepreneurs and peasant (farm) households 3,669.3 3,780.1 4,058.1 4,275.6 4,284.8 116.8 100.2 Barley All categories offarms 2,517.0 2,976.8 2,728.8 2,157.5 2,175.6 86.4 100.8 Agricultural enterprises 1,330.7 1,632.4 1,463.7 1,100.3 1,141.9 85.8 103.8 Individual entrepreneurs and peasant (farm) households 1,186.3 1,344.4 1,265.1 1,057.2 1,033.7 87.1 97.8 Buckwheat All categories offarms 95.8 67.5 55.1 87.1 119.9 125.2 137.7 Agricultural enterprises 38.7 24.9 26.9 47.2 61.5 158.9 130.3 Individual entrepreneurs and peasant (farm) households 57.1 42.6 28.2 39.9 58.4 102.3 146.4 Grain corn All categories offarms 150.1 156.3 162.8 188.7 188.4 125.5 99.8
CHAPTER 5. PRODUCTION CLUSTER IN THE AGRO-INDUSTRIAL COMPLEX AS A FACTOR IN ENSURING FOOD SECURITY 151 Continuation of Table 5.3 1 2 3 4 5 6 7 8 Agricultural enterprises 30.4 36.3 35.7 54.6 60.5 199.0 110.8 Individual entrepreneurs and peasant (farm) households 113.8 114.7 122 128.9 122.9 108.0 95.3 Households ofthe population 5.9 5.3 5.2 5.2 5 84.7 96.2 Rye All categories offarms 21.5 21.2 23.9 43.9 34.3 159.5 78.1 Agricultural enterprises 7.6 7.1 10.1 25.3 22.9 301.3 90.5 Individual entrepreneurs and peasant (farm) households 13.9 14.1 13.8 18.5 11.3 81.3 61.1 Oats All categories offarms 235.2 243.5 228.9 202 197.9 84.1 98.0 Agricultural enterprises 152.5 161.7 151.3 134.6 128.8 84.5 95.7 Individual entrepreneurs and peasant (farm) households 82.7 81.7 77.4 67.4 69.1 83.6 102.5 Households ofthe population – 0.1 0.2 – – – – Millet All categories offarms 43.4 50.9 50.5 38.2 37.4 86.2 97.9 Agricultural enterprises 20.0 22.4 26.5 18.0 18.3 91.5 101.7 Individual entrepreneurs and peasant (farm) households 22.8 28.1 23.5 19.8 18.5 81.1 93.4 Households ofthe population 0.6 0.4 0.5 0.4 0.6 100.0 150.0 Sorghum (dzhugara) All categories offarms 3 8.3 7.8 9 17.4 580.0 193.3 Agricultural enterprises 1.9 3.1 3.5 4.5 10.8 568.4 240.0 Individual entrepreneurs and peasant (farm) households 1.1 5.1 4.3 4.5 6.6 600.0 146.7 Corn mixture All categories offarms 86.4 91.8 85.9 69.6 61.3 70.9 88.1 Agricultural enterprises 53.3 61.5 57 43.1 46.9 88.0 108.8
158 INTEGRATIVE OPPORTUNITIES OF NATIONAL ECONOMIES x3(i)— production quantity ofmowers, including mowers mounted ona tractor, not included inother groups; x4(i)— production quantity ofrow headers; x5(i)— quantity ofproduction ofgrain harvesters. According to(5.1), the dynamics ofchanges inthe indicators ofthe production ofmaterial and technical resources for the grain product sub-complex can bepresented inthe form ofTables 5.8 and 5.9. Table 5.8 Dynamics ofchanges inthe production ofmaterial and technical resources for the grain product subcomplex inthe Republic of Kazakhstan in2016–2024 Years, i 2016 2017 2018 2019 2020 2021 2022 2023 2024 x1(i) 53.55 48.47 47.02 50.37 43.40 23.68 54.52 74.95 69.61 x2(i)52.80 54.79 50.00 2.83 76.00 90.69 56.06 48.58 46.90 x3(i)Nodata Nodata Nodata 96.00 79.49 42.59 69.20 60.56 61.67 x4(i) 55.16 39.25 56.41 55.45 45.48 57.45 53.26 52.84 67.80 x5(i) 68.65 48.12 48.37 49.90 52.66 27.85 59.06 56.59 70.05 Source: Bureau ofNational Statistics[16, 17] Table 5.9 Grain production and grain processing products inthe Republic of Kazakhstan in2014–2024, thousands oftons Years, i 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Grain production, y(i) 12,864.8 18,231.1 17,162.2 18,673.7 20,634.4 20,585.1 20,273.7 17,428.6 20,065.3 16,375.9 Production ofego processing products 4,163.1 4,073.9 4,093.7 3,955.9 4,205.5 4,129.2 4,032.1 3,533.9 3,642.0 3,588.0 Source: Bureau ofNational Statistics[16, 17] The materials ofTable 5.9 show that grain production inthe Republic of Kazakhstan fluctuated greatly. Thus, in2018, growth was noted— by5366.3 thousand tons, or1.42 times. In2017— adecrease, in2018— growth, which lasted for the next two years, then again adecrease, etc. Ifto compare grain production in2024, then its volume was 16,375.9 thousand tons, which is10,584.6 less than in2015, or1.65 times. The 2024 indicator ranks second from the bottom after 2015 interms ofthe lowest volumes ofgrain production inthe Republic of Kazakhstan for 2015–2024. The indicator ofgrain processing production also fluctuates in the analyzed period, but not sosignificantly. Its minimum volumes were recorded in2022— 3,533.9 thousand tons, and the maximum in2019— 4,205.5, which is671.6 thousand tons less, or1.19 times.
CHAPTER 5. PRODUCTION CLUSTER IN THE AGRO-INDUSTRIAL COMPLEX AS A FACTOR IN ENSURING FOOD SECURITY 159 Let’spresent the characteristics ofchanges ingrain production indicators, expressed bythe formula 100 ( 1) () , ( ) ( 1) yi yi yi yi + = ++ (5.2) where y(i) and y(i+1)— indicators ofi and i+1 consecutive years. According to(5.2), the dynamics ofchanges ingrain production indicators can bepresented inthe form ofTable 5.10. Table 5.10 Dynamics ofchanges inthe production ofmaterial and technical resources for the grain product subcomplex inthe Republic of Kazakhstan in2016–2024 Years, i 2016 2017 2018 2019 2020 2021 2022 2023 2024 ()yi 58.63 48.49 52.11 52.49 49.94 49.62 46.23 53.52 44.94 Thus, Table 5.10 received processed statistical data describing the dynamics ofchanges inthe production ofmaterial and technical resources for the grain product cluster inthe Republic of Kazakhstan in2016–2024. The purpose ofthis stage isthe analysis ofpaired regression dependencies ofchanges ingrain production indicators ( 1) yi + ofthe (i+1)-thyear, that is, changes inthe indicators () k xi ofmaterial and technical resources for the grain product cluster ofthe i-thyear, constructed according tothe algorithm. 5.3 REGRESSION ANALYSIS OFTHE DEPENDENCE OFGRAIN PRODUCTION INDICATORS ONTRACTOR PRODUCTION INDICATORS Thus, the regression dependence ofthe change f1(i+1) ingrain production onthe change 1 ()xi inthe production oftractors for agriculture and forestry has the following form 2 1 12 1 () ( 1) . 0.02 ( ) 0.06 xi fi xi += + (5.3) Differentiating the empirical function f1(i+1) on 1 ()xi , itis possible toobtain the elasticity coefficient 112 11 1 ( 1) 0.12 () . ( 1) ( ) 0.02 ( ) 0.06 e fi K xi fi x i xi ∂+ = = +∂ +
160 INTEGRATIVE OPPORTUNITIES OF NATIONAL ECONOMIES Based onthe statistical data 1 ()xi ofTable 5.2, the elasticity coefficient Ketakes values less than1. Therefore, if 1 ()xi changes by1%, f1(i+1) will change byless than 1%. Itis possible topresent the data ofTable 5.2 inthe form ofa variation series. The graphical representation ofthe regression dependence can bepresented inthe form ofFig. 5.3. From Fig. 5.3 itfollows that a15-percent increase inthe production ofagricultural and forestry tractors contributes tothe growth ofgrain production. The coefficient ofcorrelation and analytical values ofpaired regression is –0.0018, which indicates the fact ofnon-correlation. Non-correlation isexplained bythe absence oflinear dependence. Atthe same time, the error relative tothe method ofaverages is0.238, that is, there are insignificant differences between the actual data and the values determined byformula (5.3). Change in the production volume of tractors for griculture and forestry 50 55 60 65 70 75 80 85 90 955 10 15 20 25 30 35 40 45 52 50 48 46 44 42 Changes in grain production indicators Fig. 5.3 Regression dependence ofchange inf1(i+1) ofgrain production onchange 1 ()xi inagricultural tractor production Let’sconsider the differences d1(i) between the empirical values off1(i+1), calculated according toformula (5.3), and actual grain production data () yi 11 () () (), d i fi yi= − presented inTable 5.11. Table 5.11 Comparison ofempirical values off1(i) and actual grain production data Years, i 2016 2017 2018 2019 2020 2021 2022 2023 2024 1()fi 50.32 50.31 50.31 50.32 50.29 50.11 50.32 50.35 50.34 ()yi 58.63 48.49 52.11 52.49 49.94 49.62 46.23 53.52 44.94 1()di –8.31 1.82 –1.80 –2.18 0.35 0.49 4.10 –3.17 5.41
CHAPTER 5. PRODUCTION CLUSTER IN THE AGRO-INDUSTRIAL COMPLEX AS A FACTOR IN ENSURING FOOD SECURITY 161 Totest the hypothesis for the adequacy ofthe proposed model, itis possible toassume that the difference d1(i) isa random variable obeying aGaussian distribution with amean ofµ = –0.37 and astandard deviation ofσ = 4.12. Inother words, the probability that, for any indicator 1 ()xi , the probability ofdeviation ofthe empirical values off1(i), calculated according toformula (5.3), from the actual grain production data ( ),yi isdetermined bythe formula 11 1 0.37 0.37 () 1 . 4.12 4.12 dd P d erf erf −+ −− =−+ Ina study based onPearson’sχ2, due tothe fact that the critical region for this statistic isrightsided:[Kkp;+∞), where the boundary value 2( 1; ). kp K kr=χ −−α According tothe χ2 distribution tables and the values ofσ, k = 5, r = 2 (parameters μand σare estimated from the sample), this corresponds toKkp(0.05; 2) = 5.95 for asignificance level ofα = 0.05. Due tothe fact that 0.123 (0.05;2), obs kp KK = < this confirms the adequacy ofthe hypothesis for applying the proposed model. 5.4 REGRESSION ANALYSIS OFTHE RELATIONSHIP BETWEEN GRAIN PRODUCTION INDICATORS AND THE PRODUCTION OFTRANSPLANTING EQUIPMENT The regression relationship between the change inf2(i+1) ofgrain production and the change 2 ()xi inthe production ofseeders, planters, and transplanting machines isas follows 2 2 2 () ( 1) . 0.003 ( ) 0.0008 xi fi xi += − (5.4) Differentiating with respect tothe empirical function f2(i+1), itis possible toobtain the elasticity coefficient ( ) 2 222 2 21 ( 1) 44.44(0.003 ( ) 0.0008) () . ( 1) ( ) ( ) 0.27 e fi xi K xi fi x i xi ∂+ − = = +∂ −
162 INTEGRATIVE OPPORTUNITIES OF NATIONAL ECONOMIES Based onstatistical data 2 ()xi , the elasticity coefficient Ketakes values less than1. Therefore, for a1% change in 2 ()xi , f2(i+1) will change byless than 1%. Byrepresenting the data 2 ()xi asa variation series, agraphical representation ofthe regression relationship can beshown inFig. 5.4. Change in the production volume of seeders, planters and transplanting machines 50 55 60 65 70 75 80 85 90 9510 15 20 25 30 35 40 45 51 50.8 50.6 50.4 50.2 50 Changes in grain production indicators Fig. 5.4 Regression dependence ofchange inf2(i+1) ingrain production onchange 2() xi inproduction ofseeders, planters, and transplanters From Fig. 5.4, itfollows that changes inthe production ofseeders, planters, and transplanters donot contribute togrowth ingrain production. The correlation coefficient and analytical values ofthe paired regression are -0.503, indicating alack ofcorrelation. This lack ofcorrelation isexplained bythe lack ofa linear relationship. Moreover, the error relative tothe mean method is0.373, indicating minor discrepancies between the actual data and the values determined byformula (5.4). Let’sconsider the differences d2(i) between the empirical values off2(i), calculated according toformula(5.3), and the actual grain production data ()yi 22 () () (), d i f i yi= − presented inTable 5.12. Table 5.12 Comparison ofempirical values off2(i) and actual grain production data Years, i 2016 2017 2018 2019 2020 2021 2022 2023 2024 f2(i)50.33 50.33 50.34 52.34 50.30 50.29 50.33 50.34 50.35 ()yi 58.63 48.49 52.11 52.49 49.94 49.62 46.23 53.52 44.94 d2(i)-8.30 1.84 -1.77 -0.16 0.36 0.67 4.10 -3.18 5.41
CHAPTER 5. PRODUCTION CLUSTER IN THE AGRO-INDUSTRIAL COMPLEX AS A FACTOR IN ENSURING FOOD SECURITY 163 Totest the hypothesis for the adequacy ofthe proposed model, itis possible toassume that the difference d2(i) isa random variable obeying aGaussian distribution with amean ofµ = –0.11 and astandard deviation ofσ = 4.06. Inother words, the probability that, for any indicator 2 ()xi , the probability ofdeviation ofthe empirical values off2(i), calculated according toformula (5.4), from the actual grain production data ()yi isdetermined bythe formula 22 2 0.11 0.11 () 1 . 4.06 4.06 dd P d erf erf −+ −− =−+ Ina study based onPearson’sχ2, due tothe fact that the critical region for this statistic isright-sided: [Kkp;+∞), where the boundary value 2( 1; ). kp K kr=χ −−α According tothe χ2 distribution tables and the values ofσ, k = 5, r = 2 (parameters μand σare estimated from the sample), this corresponds toKkp(0.05;2) = 5.95 for asignificance level ofα = 0.05. Due tothe fact that 0.117 (0.05;2), obs kp KK = < this confirms the adequacy ofthe hypothesis for applying the proposed model. 5.5 REGRESSION ANALYSIS OFTHE DEPENDENCE OFGRAIN PRODUCTION INDICATORS ONCHANGES INMOWER PRODUCTION The regression dependence ofthe change inf3(i+1) ingrain production onthe change inmower production, including tractor-mounted mowers not included inother groupings, isas follows 3 3 1 ( 1) . 0.002 ( ) 0.004 fi xi += + (5.5) Differentiating the empirical function f3(i+1) with respect to 3 ()xi , itis possible toobtain the elasticity coefficient 33 2 3 ( 1) ( ). ( 1) ( ) e fi K xi fi x i ∂+ =+∂
164 INTEGRATIVE OPPORTUNITIES OF NATIONAL ECONOMIES Based onstatistical data 3 ()xi , the elasticity coefficient Ketakes values less than 1. Therefore, with a1% change in 3 ()xi , f3(i+1) will change byless than 1%. Byrepresenting the data 3 ()xi asa variation series, agraphical representation ofthe regression dependence can beshown inFig. 5.5. Change in the production quantity of mowers, including tractor-mounted mowers, not included in other groups 50 55 60 65 70 75 80 85 90 9510 15 20 25 30 35 40 45 0.0760877 0.0760877 0.0760877 0.0760877 0.0760877 0.0760877 0.0760877 0.0760877 Changes in grain production indicators Fig. 5.5 Regression dependence of change in f3(i + 1) of grain production on change 3 ()xi in mower production, including tractor-mounted mowers not included in other groupings Fig. 5.5 shows that the change inmower production, including tractor-mounted mowers not included inother groupings, is0.603. The correlation coefficient and analytical values ofthe paired regression are 0.603, indicating alack ofcorrelation. This lack ofcorrelation isexplained bythe lack ofa linear relationship. Moreover, the margin oferror relative tothe mean method is1.88, indicating significant discrepancies between the actual data and the values determined byformula (5.5), which are explained bythe small sample size ofthe observed indicator. Let’sconsider the differences d3(i) between the empirical values off3(i), calculated according toformula (5.3), and the actual grain production data ()yi 33 () () (), d i f i yi= − presented inTable 5.13. Table 5.13 Comparison ofempirical values off3(i) and actual grain production data Years, i2019 2020 2021 2022 2023 2024 f3(i) 47.65 47.65 47.65 47.65 47.65 47.65 ()yi 52.49 49.94 49.62 46.23 53.52 44.94 d3(i)-4.85 -2.29 -1.97 1.42 -5.87 2.71
CHAPTER 5. PRODUCTION CLUSTER IN THE AGRO-INDUSTRIAL COMPLEX AS A FACTOR IN ENSURING FOOD SECURITY 165 Totest the hypothesis for the adequacy ofthe proposed model, itis possible toassume that the difference d3(i) isa random variable obeying aGaussian distribution with amean ofµ = –1.81 and astandard deviation ofσ = 3.37. Inother words, the probability that, for any indicator 3 ()xi , the probability ofdeviation ofthe empirical values off3(i), calculated according toformula (5.5), from the actual grain production data ()yi isdetermined bythe formula 33 3 0.81 0.81 () 1 . 3.37 3.37 dd P d erf erf −+ −− =−+ Ina study based onPearson’sχ2, due tothe fact that the critical region for this statistic isrightsided:[Kkp;+∞), where the boundary value 2( 1; ). kp K kr=χ −−α According tothe χ2 distribution tables and the values ofσ, k = 5, r = 2 (parameters μand σare estimated from the sample), this corresponds toKkp(0.05; 2) = 5.95 for asignificance level ofα = 0.05. Due tothe fact that 0.551 (0.05;2), obs kp KK = < this confirms the adequacy ofthe hypothesis for applying the proposed model. 5.6 REGRESSION ANALYSIS OFTHE DEPENDENCE OFCHANGES INGRAIN PRODUCTION INDICATORS ONCHANGES INROW HEADER PRODUCTION INDICATORS The regression dependence ofchanges inf4(i+1) ingrain production onchanges in 4 ()xi ofrow header production isas follows 4 4 1 ( 1) . 0.002 ( ) 0.004 fi xi += + (5.6) Differentiating the empirical function f4(i+1) with respect to 4 ()xi , itis possible toobtain the elasticity coefficient 44 4 4 ( 1) ( ). ( 1) ( ) e fi K xi fi x i ∂+ =+∂
166 INTEGRATIVE OPPORTUNITIES OF NATIONAL ECONOMIES Based onstatistical data 4 ()xi , the elasticity coefficient Ketakes values less than1. Therefore, with achange in 4 ()xi by1%, f4(i+1) will change byless than 1%. Byrepresenting the data 4 ()xi asa variation series, agraphical representation ofthe regression dependence can beshown inFig. 5.6. Changes in the production of row headers 50 55 60 65 70 75 80 85 90 9510 15 20 25 30 35 40 45 50.45 50.40 50.35 50.30 50.25 50.20 50.15 50.15 Changes in grain production Fig. 5.6 Regression dependence ofchange inf4(i+1) ofgrain production onchange 4 ()xi inrow header production The correlation coefficient and analytical values ofthe paired regression are 0.11, indicating alack ofcorrelation. This lack ofcorrelation isexplained bythe lack ofa linear relationship. Moreover, the error relative tothe average method is1.29, indicating minor discrepancies between the actual data and the values determined byformula (5.6). Let’sconsider the differences d4(i) between the empirical values off4(i), calculated according toformula(5.6), and the actual grain production data ()yi 44 () () (), d i f i yi= − presented inTable 5.14. Table 5.14 Comparison ofempirical values off4(i) and actual grain production data Years, i2016 2017 2018 2019 2020 2021 2022 2023 2024 f4(i)50.14 50.17 50.14 50.14 50.16 50.14 50.14 50.14 50.12 ()yi 58.63 48.49 52.11 52.49 49.94 49.62 46.23 53.52 44.94 d4(i)-8.49 1.68 -1.97 -2.35 0.22 0.52 3.92 -3.37 5.18 Totest the hypothesis for the adequacy ofthe proposed model, itis possible toassume that the difference d4(i) isa random variable obeying aGaussian distribution with amean ofµ = –0.52 and astandard deviation ofσ = 4.12.
CHAPTER 5. PRODUCTION CLUSTER IN THE AGRO-INDUSTRIAL COMPLEX AS A FACTOR IN ENSURING FOOD SECURITY 167 Inother words, the probability that, for any indicator 4 ()xi , the probability ofdeviation ofthe empirical values off4(i), calculated according toformula (5.6), from the actual grain production data ()yi isdetermined bythe formula ( ) 00 0 0.52 0.52 1. 4.12 4.12 dd P d d erf erf −+ −− >=− + When studying using the Pearson criterion, due tothe fact that the critical region for this statistic isright-sided:[Kkp;+∞), where the boundary value 2( 1; ). kp K kr=χ −−α According tothe χ2 distribution tables and the values ofσ, k = 5, r = 2 (parameters μand σare estimated from the sample), this corresponds toKkp(0.05;2) = 5.95 for asignificance level ofα = 0.05. Due tothe fact that 0.134 (0.05;2), obs kp KK = < this confirms the adequacy ofthe hypothesis for applying the proposed model. 5.7 REGRESSION ANALYSIS OFTHE DEPENDENCE OFCHANGES INGRAIN PRODUCTION INDICATORS ONCHANGES INCOMBINE HARVESTER PRODUCTION INDICATORS The regression dependence ofchanges inf5(i+1) ingrain production onchanges in 5 ()xi ofcombine harvester production isas follows 4 1 ( 1) . 0.002 ( ) 0.004 yi xi += + (5.7) Differentiating with respect tothe empirical function f5(i+1), itis possible toobtain the elasticity coefficient 55 5 5 ( 1) ( ). ( 1) ( ) e fi K xi fi x i ∂+ =+∂ Based onstatistical data 5 ()xi , the elasticity coefficient Ketakes values less than 1. Therefore, with a1% change in 5 ()xi , f5(i+1) will change byless than 1%.
174 INTEGRATIVE OPPORTUNITIES OF NATIONAL ECONOMIES — the grain product cluster lacks the necessary methods and information toaccurately determine the range and volume ofagricultural crop production; — state agricultural management bodies use ineffective forecasting and strategic marketing methods. Animportant objective ofstate agricultural policy isto improve the quality and competitiveness ofagricultural products and improve the well-being ofrural residents. The effective functioning ofthe grain product cluster isimpossible without active government intervention. Inthe conditions ofthe functioning ofa socially-oriented market economy, the possibility ofstate regulation isobjectively determined bythe nature ofa mixed economy, which ischaracterized bya combination ofcompetition, freedom ofchoice ofbuyer and seller with the need for the state toensure equal “rules ofthe game” for all economic entities inthe grain product cluster and social protection for the low-income part ofthe population. Under these conditions, the development ofeconomic relations inthe grain product cluster isassociated with the emergence ofa number ofcontradictions: — the desire ofeconomic entities inthe grain sector toachieve leadership positions, which leads tothe replacement ofperfect competition with monopoly, which isunacceptable ina market economy; — the differentiation ofeconomic actors, the ruin ofsome ofthem resulting from fierce competition, and the need for social protection for low-income groups; — the limited regulatory impact ofthe market mechanism onthe reproduction process, which fails toensure environmental safety, the development offundamental science, education, healthcare, etc.; — the consolidation ofcapital for the development ofscientific and technological progress, the implementation ofits most significant achievements inthe form ofvarious innovations. The elimination ofthese contradictions cannot beachieved through market self-regulation. They require appropriate action from society, represented bythe state. Creating favorable conditions for the production and promotion ofagricultural products onthe market and providing after-sales service tocustomers contribute toincreasing their competitiveness. It’sclear that, given the same prices, the highest-quality product will bein greatest demand. Therefore, agro-industrial enterprises should pay significant attention toanalyzing and assessing their competitiveness. State support for the development ofeconomic entities within the grain product cluster atthe regional level serves two main functions: compensatory (reimbursement ofa portion ofacquisition and construction costs) and incentive (reimbursement ofa portion ofproduction costs). Clusters are recognized asan important tool for promoting innovation, industrial development, competitiveness, and economic efficiency. The main goal ofcluster support isto increase the competitiveness ofcluster participants and the regional economies asa whole. The development ofcluster initiatives inKazakhstan can bedivided into three stages. Inthe first stage, from 2006 to2012, clusters were formed inpriority economic sectors. Inthe second stage, from 2014 to2020, territorial clusters were formed inthe regions. Asa cluster development operator, QazIndustry facilitated the consolidation ofregional enterprise groups into territorial clusters toenhance the competitiveness ofenterprises and their products. Together with cluster participants, project pools were developed for further financing with the participation ofboth the state and the clusters. The third stage began in2020 and iscurrently ongoing. This stage ischaracterized bythe formation ofa methodological and legal platform for the operation ofterritorial
CHAPTER 5. PRODUCTION CLUSTER IN THE AGRO-INDUSTRIAL COMPLEX AS A FACTOR IN ENSURING FOOD SECURITY 175 clusters and the provision ofstate incentives. InJune ofthis year, the Rules for the Competitive Selection ofTerritorial Clusters, aswell asthe Rules for the Formation and Maintenance ofa Register ofTerritorial Clusters, were approved within the framework ofthe Law “OnIndustrial Policy”. The rules provide for co-financing ofthe costs ofjoint projects byterritorial cluster participants, with upto 50% ofcosts (upto 30,000 MCI) reimbursed bythe state. Cluster policy participants are entitled toco-financing ofup to50% ofcosts (upto 3,000 MCI) tosupport the functioning ofthe cluster organization. Funding isalso planned for the implementation ofa project tomodernize shared laboratories for testing and evaluating products from regional cluster participants (upto 40,000 MCI). QazIndustry regularly provides analytical, informational, consulting, and technical support tothe pilot regional clusters. CONCLUSIONS Astudy ofthe grain product cluster inthe Republic of Kazakhstan using mathematical modeling aims toprovide a high-quality forecast tosubstantiate effective development scenarios. Todetermine amethodology for assessing the state ofthe grain product cluster, statistical processing ofactual data onthe components ofthe grain product cluster inthe agro-industrial complex and approximation ofa functional relationship smoothing the actual data were conducted. The tasks are solved using probabilistic statistical research methods. Ofall existing methods, two-parameter regression modeling ineconomic research was selected. Ingeneral, two-parameter regression isa simple and effective tool for analyzing and evaluating economic data, which can beparticularly useful insituations oflimited resources. The obtained research results are based onanalytical functions representing paired nonlinear regressions ofthe relationships between changes ingrain production indicators and changes inmaterial and technical resource indicators for the grain product cluster inthe Republic of Kazakhstan. Consequently, the functions determine trends and, thereby, provide aset offorecasts for changes ingrain production. The value ofeach ofthese atthe point corresponding tothe generalized average for argument xis determined using econo mic and mathematical modeling for processing observation results. The developed grain production optimization model, based onmodern mathematical modeling technologies, represents animportant and effective analytical method. Its advantage lies inits ability toprovide adetailed and in-depth assessment ofthe grain product sector’sperformance, taking into account numerous key aspects. The model not only accurately assesses the current state ofthe grain product cluster but also provides apowerful forecasting tool. Its versatility allows for the successful application ofthe method across various industries and fields ofactivity, opening upnew opportunities for additional research and analysis. Inconclusion, itshould benoted that inAddress tothe Nation “AFair Kazakhstan: Law and Order, Economic Growth, and Social Optimism”, the President ofthe Republic ofKazakhstan emphasized the need for systemic efforts tounlock the country’sindustrial potential. K.-J. Tokayev highlighted alist of17 major projects compiled bythe government, with aparticular emphasis onthe development ofhigh-value added value. Animportant point isthe maximum use ofdomestic raw materials and components, aswell asthe development ofrelated industries around large enterprises.
176 INTEGRATIVE OPPORTUNITIES OF NATIONAL ECONOMIES The construction ofa deep wheat processing plant inKostanay isa large-scale undertaking, designed toprocess 415,000 tons ofwheat per year. The project operator isKostanay Grain Industry LLP. Completion isscheduled for 2027, and the total investment is70 billion tenge. The plant will produce several types ofproducts: lysine (40,000 tons per year), gluten (35,300 tons per year), bioethanol (60,000 tons per year), carbon dioxide (56,000 tons per year), feed vinasse (99,000 tons per year), and bran (28,000 tons per year). Upon completion ofconstruction and reaching design capacity, 650 permanent jobs are planned tobe created. Gluten, ahigh concentration ofwhich isfound inKazakh grain, has awide range ofglobal applications inits pure form. The products are sold inEurope and the Americas. Inaddition togluten, deep grain processing will yield glucose-fructose syrup, wheat starch, modified starch, and bran. This isa virtually wastefree process. The project concept has already been developed, technology and equipment suppliers have been identified, and negotiations are underway. The design and integration ofthe basic designs will becarried out with the participation ofthe Austrian company Vogelbusch. Process engineering isalso actively underway with local and international equipment suppliers. Amemorandum ofcooperation has been signed between the KazFoodProducts group ofcompanies, the Chinese company Myande Group, and the Akimat ofthe Kostanay region. This partnership strengthens the project’sinternational ties and opens upopportunities for the application ofadvanced technologies atall stages ofthe plant’sconstruction and operation. USE OF ARTIFICIAL INTELLIGENCE The author confirms that AI ChatGPT (GPT-3.5, GPT-4, GPT-5.x) was used exclusively for searching open sources or sources of the last 5 years for literature review. The author conducted a full check of all materials obtained with the AI participation, by checking each fragment with primary sources and current scientific literature. All citations and references were checked by the author, edited and academically supplemented. The use of AI tools did not affect the scientific results, empirical conclusions, statistical models and the author's research position. CONFLICT OF INTEREST The author declares that there is no conflict of interest in this study, including financial, personal or any other that may affect the results described in this work. REFERENCES 1. Beisekova, P., Ilyas, A., Kaliyeva, Y., Kirbetova, Z., Baimoldayeva, M. (2023). Development ofa method for assessing the functioning ofa grain product sub-complex using mathematical modeling.
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