Kazakhstan Poised to Enter Top 10 Global Leaders in Grain Processing and Supply

Kazakhstan Poised to Enter Top 10 Global Leaders in Grain Processing and Supply Tuesday, March 18, 2025 | 19:41 $560 Million Investment in Three New Projects Over the Next Three Years Kazakhstan is on track to become one of the top 10 global leaders in deep grain processing and supply within the next decade. This announcement was made at the IV National Kurultai, held to implement President Kassym-Jomart Tokayev's strategic directives. Implementing Tokayev’s Vision “Kazakhstan will continue to strengthen its position in grain and flour exports by expanding its deep processing capacity. Over the next three years, three major projects worth $560 million will be launched, creating 1,500 new jobs,” stated Prime Minister Olzhas Bektenov at the kurultai. Earlier, President Tokayev tasked the government with positioning Kazakhstan as a global leader in deep processing and export of grain products. Currently, the sector’s export potential is valued at $6.1 billion, with primary processing products accounting for $3.7 billion. A Promising Direction: Deep Grain Processing Deep grain processing is a high-potential sector within Kazakhstan's agricultural industry. It involves extracting valuable chemical components such as bioethanol, starches, gluten, and other by-products from grain and flour. These products, in high demand both domestically and internationally, are increasingly used in livestock farming and the production of biodegradable plastics. The grain processing process consists of multiple stages: Preparation Stage: Grain is transported, cleaned, hydrothermally processed, fractionated, and sorted at storage facilities and processing plants. Milling Stage: Grain is crushed and milled while preserving its chemical composition, producing cereals, flour, snacks, and feed. Extraction Stage: Chemical elements such as fats, B vitamins, and minerals are extracted. Products like starch, gluten, organic acids, and polymer bases are derived, often replacing petrochemical products. Raw materials for deep processing include wheat, barley, rye, oats, and triticale. Growing Grain Trade Between Kazakhstan and Kyrgyzstan Trade in grain and processed products between Kazakhstan and Kyrgyzstan has surged in recent years: In 2024, supply volumes increased by 92%, following a 67% rise in 2023. Kazakhstan exported 8.1 million tons of grain and 3.2 million tons of milled products, representing a 41% year-on-year increase. Deep processed grain exports to China grew by 34%. The primary transportation mode is by rail, utilizing over 17,200 covered wagons and 10,000 grain carriers, with additional shipments by truck. Kazakhstan’s Foreign Trade and Grain Exports Kazakhstan’s total foreign trade turnover in 2024 reached $141.4 billion, marking a 1.3% increase from 2023. Exports grew by 3.1%, reaching $81.6 billion, while imports decreased by 1%, amounting to $59.8 billion. Trade with the CIS countries grew by 1.2%, while trade within the Eurasian Economic Union (EAEU) increased by 2.2%. Kazakhstan’s grain exports reached 3.7 million tons by the end of 2024, marking a 54% increase from the same period in 2023. Grain exports to Kyrgyzstan rose by 22%, reflecting increased demand. Exports to other regional countries also surged: Uzbekistan: +44% (from 994,000 tons to 1.427 million tons) Tajikistan: +53% (from 385,000 tons to 589,000 tons) Afghanistan: +52% (from 120,000 tons to 182,000 tons) Iran: +30.2 times (from 14,000 tons to 435,000 tons via the port of Aktau) Growing Interest in Kazakh Grain Other countries are also expressing interest in increasing grain imports from Kazakhstan. For instance, Iran aims to boost its import volume to 3 million tons. Kazakhstan’s efforts to improve rail logistics and diversify export routes through terminals such as Dostyk and Altynkol will further enhance grain availability for neighboring countries. Kazakhstan-Kyrgyzstan Trade Overview In 2024, trade turnover between Kazakhstan and Kyrgyzstan grew by 1.5%, reaching $1.7 billion. Key trends include: Smartphone Supplies: Tripled to 366,600 units. Oil, Gas, and Bitumen Exports: Increased 1.5 times, reaching 223,100 tons. Gold Exports to Kyrgyzstan: 3.2 tons valued at $238.4 million, down 18%. Cigarette Exports: 2,600 tons, down 0.5%. Sweet Drink Deliveries: Up 0.4%, reaching 283.3 million liters. Imports from Kyrgyzstan to Kazakhstan declined by 3.7% in volume (to 694,400 tons) and 15.7% in value (to $455.9 million). However, imports of cookies and wafers from Kyrgyzstan increased by 27%, reaching 3,800 tons. Investment and Business Ties As of January 1, 2025, there were 2,200 companies with Kyrgyz capital operating in Kazakhstan, reflecting a 5% decrease (114 fewer companies) compared to the previous year. Investment activity between the countries remains relatively low, but Kazakh investments in Kyrgyzstan increased by 5% to $47.9 million, while Kyrgyzstan’s investments in Kazakhstan grew by 17%, reaching $4.8 million. Record Grain Harvest and Export Growth Favorable weather conditions and increased productivity contributed to Kazakhstan’s record harvest in 2024, estimated between 25.2 million and 26.7 million tons, significantly surpassing the 17.1 million tons harvested in 2023. Economist Iskender Sharsheev highlighted the steady growth in Kazakh grain exports to Kyrgyzstan, which increased from 59,000 tons to 72,000 tons last year, meeting Kyrgyzstan's growing demand for imported grain. Rising Prices and Export Expansion Grain prices in Kazakhstan were relatively low at the end of 2024, with grade 3 wheat trading at 50,000–55,000 tenge per ton in October. However, by January 2025, prices had risen to 75,000–80,000 tenge, boosting producer interest in exports. Kazakhstan’s investment in expanding its transport and logistics infrastructure, along with new grain terminals and route diversification, aims to double exports by 2028. Sharsheev emphasized that enhanced cooperation between Kazakhstan and Kyrgyzstan, including barter schemes and the development of new transport and logistics infrastructure, will further streamline delivery processes and strengthen trade relations. Source: https://vesti.kg/zxc/item/136859-rekordnyj-urozhaj-zerna-v-kazakhstane-rastet-pererabotka-i-eksport-produktsii.html #KazakhstanGrain, #GrainProcessing, #KazakhstanExports, #KyrgyzstanTrade, #DeepGrainProcessing, #AgricultureKazakhstan, #GrainSupply, #KazakhstanEconomy, #GrainExportGrowth, #CentralAsiaTrade, #KazakhGrain, #KazakhstanLogistics, #GrainIndustry, #KazakhstanKyrgyzstan, #FoodSecurity, #BioethanolProduction, #GrainMarket, #CISTrade, #KazakhstanInvestment, #KazakhstanAgribusiness, #GrainTrade, #ExportDevelopment, #KazakhstanInfrastructure, #KazakhstanAgriculture, #RegionalTrade, #KazakhExportPotential