Kazakhstan faces oilseed shortage as crushing capacity doubles domestic production

Kazakhstan’s oilseed crushing capacity is twice as large as domestic oilseed production, despite the gradual expansion of sunflower planting areas. This creates risks of underutilized processing facilities and intensifies competition for raw materials in the domestic market. This was reported by Yadykar Ibragimov, Chairman of the National Association of Oilseed Processors of Kazakhstan.

According to Ibragimov, the main incentive for increasing oilseed production remains strong demand from domestic crushing plants, which significantly exceeds available supplies. To expand the raw material base, processors are actively cooperating with farmers and financing oilseed cultivation. In 2025 alone, processors allocated more than KZT 43 billion to field operations and purchases of seeds, fertilizers and crop protection products.

Developing domestic oilseed production is becoming particularly important amid rising global supplies. According to USDA’s October forecast, global oilseed production in 2026/27 could reach 722 mln tons, up 3% from the previous season. However, the forecast was revised downward by 1.26 mln tons compared with the September estimate. Growing global production is intensifying competition in the vegetable oil market and increasing the importance of raw material availability and processing efficiency.

In Kazakhstan, further expansion of sunflower and other oilseed planting areas could help narrow the gap between domestic raw material production and existing processing capacity. Strong demand from crushing plants creates additional opportunities for farmers, while financing provided by processors supports the development of stable supply chains, from oilseed cultivation to finished product manufacturing.

The National Association of Oilseed Processors emphasizes that Kazakhstan needs to focus on expanding domestic raw material production, developing advanced processing and improving export logistics to strengthen its competitiveness. These factors will determine the industry’s ability to utilize crushing capacity efficiently and further expand exports of Kazakhstan’s vegetable oils and processed oilseed products.

Tags: Kazakhstan, oilseeds, sunseed