In Kazakhstan it is necessary to increase the utilization of processing capacities

Published Jan 15, 2024

Tridge summary

In order to stabilize sunflower oil prices in Kazakhstan, it is important to increase the utilization of oil production plant capacities, which currently stands at only 40%. One way to achieve this is by exporting fat and oil products, with sunflower oil exports from Kazakhstan increasing by 76% in the 2022/23 marketing year. Additionally, due to a decrease in sunflower harvest in 2023, there is potential for sunflower to become a profitable alternative to grains in 2024, especially given its drought resistance and stable demand from domestic processors.

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Original content

In order to achieve stabilization of prices for sunflower oil in Kazakhstan this year, it is necessary to increase the utilization of processing capacities with raw materials. Today, the utilization rate of the existing capacities of oil production plants in the Republic of Kazakhstan does not exceed 40%, Yadykar Ibragimov, chairman of the National Association of Oilseed Processors of Kazakhstan (NAPMK), told APK-Inform. “The workload of factories directly affects the cost of oil production: the higher it is, the lower the cost of the finished product,” the expert explained. Another factor that will help maintain prices for sunflower oil within the country, as well as purchase oilseed raw materials at higher prices from farmers, is the sale of volumes of fat and oil products for export. As NAPMK clarified, in 2022/23 MY, the export of sunflower oil from Kazakhstan increased by 76% compared to the previous season - to 313.34 thousand tons. Uzbekistan remained the top importer, ...

Source: Oilworld