The expansion of foreign sales markets for agricultural products in Kazakhstan, from 3.5 billion US dollars in 2021 to 9.9 billion US dollars in 2030, has at least 80% priority, in addition to securing domestic food supplies, tripling productivity, quadrupling investment and reducing the share of the shadow economy in agriculture, forestry and fisheries to 0.5% of GDP, tripling foreign sales markets for agricultural products in Kazakhstan, which will increase from USD 3.5 billion in 2021 to USD 9.9 billion in 2030. What, where and in what quantities does Kazakhstan supply today, where is there potential and what measures are planned for the development of the agro-industrial complex of the Republic of Kazakhstan?
Agro-industrial exports in numbers
According to the results of 2021, exports of agricultural products increased by 14.8% to 3.8 billion US dollars (in 2020: 3.3 billion US dollars).
The export structure is traditionally dominated:
- wheat – 5,7 million tons for US$1.425 million (37,5% of total exports);
- barley – 0,8 million tons for $165 million (4%);
- lein – 333,6 thousand tons for $226,6 million (6%),
- flour – 1,5 million tons for $441 million (12%);
- sunflower oil – 97 thousand tons for 116,7 million dollars (3%);
- cotton – 63 thousand tons for $123,6 million (3%).
There has been a 30.7% increase in grain exports. Kazakhstan has compensated for the decline in wheat deliveries in Central Asia with growth outside the region. Exports of rapeseed increased by 1.6 times, flax by 18.4%, sunflower seeds by 7.6%, noodles by 29.4% and sunflower oil by 10.4%. At the same time, flour exports fell by 13.7% and flour by 19.6%.
Kazakh agricultural products are supplied to almost 70 countries. The most important traditional sales markets are the EAEC countries Uzbekistan, Tajikistan, Afghanistan, Turkey, Latvia, Italy and others. At the same time, there is good potential to further increase exports of products from the milling and grain industry, meat and food by-products, vegetable oils and other processed products as well as organic products to the People’s Republic of China, the EU and Central Asia.
From January to June 2022, agricultural exports amounted to USD 2.6 billion, an increase of 44% compared to the same period in 2021 (USD 1.8 billion). Exports of processed products amounted to one billion US dollars in the period indicated – an increase of 43% compared to the same period in 2021 (0.7 billion US dollars). The share of processed product exports in the total volume also increased and amounted to 40.4% (January – June 2021: 36.3%).
From raw material to processed product
According to the development concept of the agro-industrial complex of the Republic of Kazakhstan for 2021-2030, the focus is on such changes. In order to increase exports within the framework of the National Agricultural Development Project for 2021-2025, a set of measures has been developed, which provides for the loading of existing and construction of modern agricultural processing plants.
Given the existing raw material production potential of agriculture and the narrowness of the domestic market, the transition from the raw material orientation of export policy to processed products is becoming a priority of agricultural development. The growth of the processing industry by increasing export volumes will ensure both the qualitative growth of agriculture and the growth of turnover in the entire value chain.
In addition, the development of export markets for animal products and organic farming is a priority.
Demand for Kazakh organic products almost doubled in 2021, according to the National Chamber of Commerce of the Republic of Kazakhstan “Atameken”. The export volume reached 32 million US dollars. Organic flax, as well as wheat, soy, sunflower, lentils, sunflower oil and honey occupy leading positions. The above development concept for the agricultural industry is the IFOAM rating, which represents the positions of 123 countries that export organic products to EU member states. Kazakhstan ranks ninth, but wheat (fourth) and linseed from oil (sixth) deserve a special mention.
Overall, in the total structure of exports of processed agricultural products, flour (36.3%), vegetable oil (7.7%), confectionery (8.4%), dairy products (4.1%), fish products (10.7%), mineral water (2.7%) were noted. Vegetable products account for 57.7% of exports – cereals and oil, flax, cotton fibers, pulses, potatoes.
Agrogeography
Three million tons of flour are produced annually in Kazakhstan, half of this volume is exported. The flour goes to Afghanistan (more than half) and other Central Asian countries, small quantities are bought by China, Azerbaijan and Belarus.
Around 60% of sunflower oil exports are delivered to Uzbekistan every year, and the sales markets are expanding. In addition to the traditional countries (Uzbekistan, Afghanistan, Tajikistan, China), shipments are made to the Czech Republic, Lithuania and Turkey.
Livestock products are delivered to Uzbekistan, Iran and China. The priority markets for the export of live animals and animal products are Iran, the EU countries, the United Arfrom Emirates, Saudi Arabia, Mongolia, Japan, Turkey, Korea, Georgia and China. Some of these markets are already open to Kazakh products. Kazakhstan is not only a supplier of large and small livestock, but also of chickens, eggs and crabs. The last point is not so large in the overall picture of exports (in the seven months of 2021 it is 133 tons), but a certain interest from sides such as China and the European Union is growing.
Available trading positions, sufficient agricultural land, irrigated agriculture – all this opens up good prospects for Kazakhstan’s agriculture both in terms of ensuring its own food security and realizing its export potential. To stabilize prices on the domestic market and avoid deficits, restrictions in the form of product quotas are planned (recent examples include the export of flour and wheat, sugar, vegetables and live cattle; restrictions on rice are now being discussed). This will prevent the disappearance of goods from socially important food groups from the shelves of Kazakh stores.
Source: Informburo (Kazakhstan)