In case the weather allows Kazakhstan to get an average wheat crop (that's 14-15 million tons), grain costs will drop from the current €369/ton to €282/ton.
The price of €282 does justice to all market participants, both flour and poultry farmers and our government agencies, who can control the inflation rate. Of course, our farmers may not be very satisfied, and that is understandable - when you see the price of €369, then seeing €282 is no longer very interesting - purely psychologically. However, at this price level, the profitability of grain production in Kazakhstan will be 16% compared to 13% in Russia.
Evgeny Karabanov
Official representative of the Grain Union of Kazakhstan
This price will also do justice to foreign partners - Central Asia wheat prices will be $350 versus the current $440.
However, Evgeny Karabanov noted that these prices are eventually formed under the influence of a number of external and internal factors - from geopolitics to weather conditions.
Separately, the expert emphasized that there will be a significant impact on the market, whether the government of the Republic of Kazakhstan will impose export duties Wheat introduces or not. Russia insists on this step, but it is unprofitable for Kazakhstan. Because in this case, export prices for Kazakh grain will increase dramatically, and Russian Grains will begin to win its competition for the price in the foreign market.
If we impose the same export duties as in Russia, Russian grain will flow to our traditional outlets with a full flow. That means we will kill our markets, our farmers, with our own hands. We must not take this step under any circumstances.
Evgeny Karabanov
Official representative of the Grain Union of Kazakhstan