Export of agricultural goods to China projected to grow, say Kazakh officials

Every year, the export of agricultural products from Kazakhstan to China continues to show impressive growth. Senior representatives of the country’s agricultural sector discussed the key factors for this growth and prospects for development at the Forum of Kazakh Exporters in Astana on March 26, Kazinform News Agency correspondent reports.

Kazakhstan’s Vice Minister of Agriculture Erbol Taszhurekov discussed the variety of agricultural products that the country is ready to export to China. He noted significant growth in exports of grains and oilseeds, and sees potential in livestock exports, especially after China lifts restrictions on this sector.

“The export volume was 2 million tons, and the amount was $611 million, which largely exceeds the 2020 figures. Moreover, we also see significant prospects in the export of livestock products in China, especially after the lifting of all livestock restrictions for poultry and animal related products within China. These are additional business opportunities for both countries,” he said.

Asylkhan Dzhuvashev, Chairman of Kazakhstan’s Food Contract Corporation, emphasizes the growing grain exports from Kazakhstan to China.

“In 2022, Kazakhstan's wheat exports did not exceed 130,000 tons, and then in the 2023 calendar year, exports increased to 600,000 tons. For the 2024 year, this figure has already exceeded 200,000 tons,” he said.

The corporation, which is part of the Kazakh Ministry of Agriculture, supports agricultural producers by providing forward financing and is ready to introduce a forward purchasing mechanism with the participation of foreign investors. As part of its activities, the corporation aims to provide access to export markets for small and medium-sized farmers, helping to increase profitability in this sector.

Yadykar Ibragimov, Chairman of the National Association of Oilseed Processors, points to the growth of vegetable oil production and feed exports.

“Our exports have doubled compared to the 2018-2019 season. Exports in foreign currency increased 2.5 times. Here I would like to note that we already accomplished the task set by the President to double non-commodity goods last season. If you look at the structure, the leader here is the People's Republic of China with a share of 36%. We make a forecast for the next three years and in 2026 we believe that the strong indicator of foreign currency exports to China will amount to $300 million,” he said.

Exports to China are projected to increase, but achieving these figures requires active inclusion of Kazakh creameries in China's registry and logistics subsidies from Chinese provinces.

Additional business development opportunities for both countries are a key factor in this context.