Expanding foreign markets for agricultural products in Kazakhstan, from US$3,5 billion in 2021 to US$9,9 billion in 2030, along with securing domestic food at home, has at least an 80% priority, tripling of productivity, quadrupling investments and reducing the share of informal economy in agriculture, forestry and fisheries to 0,5% of GDP, tripling foreign outlets of agricultural products in Kazakhstan, which will be in 2021 from 3,5 billion US dollars in 2021 to 9,9 billion US dollars in 2030. What, where and in what quantities does Kazakhstan deliver today, where is there potential and what measures are envisaged for the development of the agro-industrial complex of the Republic of Kazakhstan?
Agribusiness exports in numbers
According to the results of 2021, the export 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 (3%);
- Cotton – 63 thousand tons for $123,6 million (3%).
There is an increase in grain exports by 30,7%. Kazakhstan has offset the fall in wheat shipments in Central Asia with growth outside the region. The export of rapeseed increased 1,6 times, flax by 18,4%, sunflower seeds by 7,6%, pasta by 29,4% and sunflower oil by 10,4%. At the same time, exports of flour fell by 13,7 percent and flour by 19,6 percent.
Kazakh agricultural products are shipped to almost 70 countries. The main traditional sales markets are the EAEC countries Uzbekistan, Tajikistan, Afghanistan, Turkey, Latvia, Italy and others. At the same time, there is good potential for export of milling and grain industry products, meat and food by-products, vegetable oils and other processed products as well Bioproducts to the People's Republic of China, the EU and Central Asia.
From January to June 2022, agricultural exports were US$2,6 billion, up 44% from the same period of 2021 (US$1,8 billion). Exports of processed products amounted to $43 billion in the specified period - up 2021% from the same period of 0,7 ($40,4 billion). The share of exports of processed products in the total volume also increased and amounted to 2021% (January - June 36,3: XNUMX%).
From the raw material to the processed product
According to the development concept of the agro-industrial complex of the Republic of Kazakhstan for the years 2021-2030, such changes are counted on. In order to increase exports within the framework of the National Agricultural Development Project for 2021-2025, a number of measures have been developed that provide for the loading of the existing, as well as the construction of modern agricultural processing plants.
In view of the existing raw material production potential of agriculture and the narrowness of the domestic market, the transition from raw material orientation of export policy to processed products is becoming the priority of agricultural development. The growth of processing industry by increasing export volumes will ensure both qualitative growth of agriculture and revenue growth throughout the value chain.
In addition, the development of export markets for animal products and organic farming is a priority.
Demand for Kazakh Bioproducts has 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 agribusiness development concept represents the IFOAM rating, which represents the positions of 123 countries that Bio–Export products to EU member countries. Kazakhstan is ninth, but wheat (fourth) and flaxseed from oil (sixth) deserve a special mention.
Overall, in the overall 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%) noted. 57,7% of exports are crops - grain and oil, flax, cotton fiber, legumes, potatoes.
agrogeography
In Kazakhstan, three million tons of flour are produced annually, half of this volume is exported. The flour goes to Afghanistan (more than half) and other Central Asian countries, small amounts are bought by China, Azerbaijan and Belarus.
Annually, about 60% of sunflower oil exports are delivered to Uzbekistan, while the outlet 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, China. The priority markets for export of live animals and animal products are Iran, EU countries, UAE, Saudi Arabia, Mongolia, Japan, Turkey, Korea, Georgia and China. Part of the markets is already open for Kazakh products. Kazakhstan is not only a supplier of large and small livestock, but also of chickens, eggs and crabs. The last point isn't that big of a deal in the overall export picture (it's 2021 tons in the seven months of 133), but some interest from the likes of China and the European Union is growing.
Available trading positions, sufficient agricultural land, irrigated agriculture - all this opens up good prospects for Kazakh agriculture both in ensuring its own food security and in realizing export potential. In order to stabilize prices in the domestic market and avoid deficits, restrictions in the form of product quotas are envisaged (from recent examples, flour and wheat, sugar, vegetables and livestock are exported, restrictions on rice are now being discussed). Thus, the disappearance of goods from socially significant food groups from the shelves of Kazakh stores is excluded.
Source: information office (Kazakhstan)