Millers of Kazakhstan are ready to transfer production to Russia
Kazakhstan
Russia
Published Jun 8, 2022
Tridge summary
There is a situation in the market of Kazakhstan when it is not profitable to engage in grain processing - profitability has gone into the negative plane. In this situation, the country's millers thought about moving their enterprises to Russia, where there is cheap grain, and the export of flour is not limited in any way.
Original content
In the long run, this will hit ordinary farmers first of all - their grain will lose sales both on the domestic market and on the external one. Talgatbek Alikhan Kairatbekuly, Vice-President of the Union of Grain Processors of Kazakhstan, told ElDala.kz about this. - On the one hand, we are pressed by the flour millers of Uzbekistan, who are supported by the state, due to which they can get cheaper flour from wheat bought at the same price as us, - the expert gave arguments. - On the other hand, we are under pressure from Russia, which produces cheaper flour at the expense of cheaper raw materials. Look: now Kazakh wheat at the Saryagash station costs $420-430 per ton. Russian flour costs $460 there. And we can offer Kazakh flour no cheaper than $480. Naturally, she hardly finds demand. Although the fair price is our flour. Taking into account current prices for raw materials - $525 per ton (plus 25% to the price of grain). That is, now we are not only not earning - we are losing ...
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