Posted on October, 28, 2024 at 04:30 pm
Kazakhstan is setting its sights on becoming a major grain exporter, with an ambitious target of reaching 12 million tonnes in 2024. Deputy Minister of Trade and Integration Kairat Torebayev revealed the plans on October 23 during a government meeting chaired by Prime Minister Olzhas Bektenov.
Of the 12 million they plan to export, wheat amounts for the highest export at 7-7.5 million tonnes. Barley will be 1.4 million tonnes and oilseeds will be over 1 million tonnes. They also plan to export 300,000 tonnes of corn from Kazakhastan.
Torebayev said that Kazakhastan will continue to supply these grains to Central Asia and Afghanistan regions, which is about 4.2 million tonnes. Kazakhastan has been exporting a significant amount to grains to China. Grain exports to China saw a significant jump in 2023, reaching 1.43 million tonnes, a 5.5-fold increase year-on-year. Wheat exports to China specifically surged to 538,800 tonnes, a near 15-fold increase. Torebayev believes there's potential to further increase wheat exports to China and other Asian countries to 1.6 million tonnes. However, challenges like border delays due to Chinese regulations and complex import procedures need to be addressed.
The country is also looking to tap into new markets with growing import demands. These markets are the European Union (Italy, Latvia, Spain), Turkey, Middle Eastern countries, Pakistan, Indonesia, Brazil, and Malaysia. Negotiations are already underway with Armenia to export 600,000 tonnes and Italy to export 1 million tonnes. It is also in talks with North African countries for a potential 200,000 tonnes of grain exports.
"It is important to restore supplies to the Iranian market, for barley we are now seeing dynamics, issues of trade financing and logistics will be worked out. Work will be intensified to promote the brand of Kazakh wheat in new markets such as: Pakistan, Indonesia, Brazil, Malaysia, where import growth is predicted," Kairat Torebayev emphasised.
In the meeting, Torebayev also emphasized the importance of prioritizing the export of processed grain products for long-term success. This strategy can potentially mitigate export challenges faced by raw grain.
In a separate development, Deputy Prime Minister Elnur Zhumangarin announced a ban on Russian wheat imports to stabilize domestic prices and support Kazakh farmers. He highlighted concerns about "unclear wheat" entering the country through unofficial channels at unsustainably low prices. This could disrupt the market and impact domestic producers. The ban allows exceptions only for processing and poultry farms that require wheat imports.
Overall, Kazakhstan's ambitious grain export plans and focus on new markets position the country to become a major player in the global grain trade.
Source: Chemanalyst