The future of wheat production and processing in Kazakhstan depends on decisive measures to adapt to fierce competition

Published 2021년 8월 13일

Tridge summary

Kazakhstan is facing a challenge in the grain processing industry due to an oversupply and decreasing external demand, further exacerbated by the competitive presence of Russian wheat. The country's grain producers are struggling with increasing production costs and limited sales channels, leading to a decrease in profitability. The potential impact of Uzbekistan and Tajikistan's entry into the EAEU and the resulting preference for Russian grain could further reduce the competitiveness of Kazakh wheat in Central Asian markets. Nurlan Ospanov, Chairman of the Grain Union of the Republic of Kazakhstan, has called for a review of customs duties and other payments to increase profitability. The situation highlights the need for strategic adjustments to maintain the competitiveness of Kazakh wheat in the region.

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Original content

In recent years, there has been an oversupply of flour production capacities in Kazakhstan and a decrease in external demand for the product. Countries that previously actively purchased flour from the Republic of Kazakhstan are gradually increasing their own processing capacities and are guided by the import of raw materials. However, the proximity of Kazakhstan to Russia, which is one of the main suppliers of wheat in the world, also negatively affects the competitiveness of Kazakhstani wheat. The key question for many grain processors of the Republic of Kazakhstan is what to do in the face of fierce competition? Nurlan Ospanov, Chairman of the Grain Union of the Republic of Kazakhstan, spoke in an interview about the current situation and development of the grain processing market in Kazakhstan. - To begin with, tell us what trends are present in the grain market of Kazakhstan? - The annual growth of production costs per hectare averages 20%, for some commodity items it reaches ...

Source: Oilworld