Kazakhstan reports record high grain yields while Trade Ministry is ready to sell just half of it

The Ministry of Agriculture of Kazakhstan is asking other public agencies to find new markets for grain exports due to record-high yields of 26.5 million tons. However, the Ministry of Trade estimates the overall market capacity for Kazakhstani grain exports to be 12 million tons. The government aims to export Kazakhstani grain to Pakistan, Indonesia, Brazil and Malaysia while boosting supplies to China and other Asian countries by 1.6 million tons.

Agricultural Minister Aidarbek Saparov recently revealed that this year, the country harvested a record-high yield of nearly 16 centners per hectare (26.5 million tons), a significant boost compared to 17.1 million.

«Among the key grain regions of Kazakhstan, the highest yields were reported in the North Kazakhstan region (18.6 centners per hectare), the Akmola region (14.1 centners per hectare) and the Kostanay region (14 centners per hectare). In all these regions, both large and medium-sized agricultural businesses managed to harvest yields above the average by adhering to all agrotechnical standards,» Saparov said.

However, southern regions of the country – the Kyzylorda, Turkestan and Zhetysu regions – have also reported high yields of grain. In this regard, the minister has asked the cabinet to facilitate the search for new markets and expand supply to existing export markets.

In turn, Vice Minister of Trade and Integration Kairat Torebayev said Kazakhstan’s export potential for grain crops is estimated at 12 million tons. Wheat accounts for about 7 to 7.5 million tons, barley for 1.3 to 1.4 million tons and corn for 300,000 tons.

«Kazakhstan will continue supplying markets in Central Asia and Afghanistan, totaling 4.2 million tons. Grain crop exports to China reached 1.4 million tons in 2023, showing a 5.5-fold increase year-on-year. For instance, Kazakhstan’s export of wheat to China reached 538,800 tons last year, which is 15 times higher than the year before,» Torebayev highlighted.

The official believes this data proves exports to China and other Asian countries might be expanded to 1.6 million tons of wheat. However, in order to achieve this goal, Kazakhstan must eliminate the obstacles at the border related to Chinese requirements for licenses and quotas on Kazakhstani wheat imports.

«Amidst rising global demand and declining yields in some countries, we are interested in the markets of EU countries such as Italy, Latvia and Spain. It’s very important to find a solution for the issue related to the transit of Kazakhstani wheat through the territory of Russia, as well as to decrease transportation costs for exporters, especially via the Trans-Caspian International Route,» the vice minister underlined.

He estimated the potential for wheat exports to Turkey and the Middle East at one million tons. The ministry also plans to restore supplies of wheat to Iran.

«We are going to expand our efforts to promote the Kazakhstani wheat brand in new markets such as Pakistan, Indonesia, Brazil and Malaysia, where demand for wheat is projected to grow,» Torebayev revealed his agency’s plans for the near future.

In late August, Kazakhstan banned imports of wheat from third-party countries, including Russia. As a result, Kazakhstani wheat traders began complaining about hardships related to the transit of wheat through Russia.