A growing number of flour mills are closing in Kazakhstan as the nation shifts from flour exports to grain exports, according to comments from Zhomart Motyshev, head of the Grain Processors Union of Kazakhstan, Kursiv Media reported.
Motyshev shared his concerns during a recent panel discussion at Kazakhstan’s lower house of parliament. He said some mills are relocating production to neighboring countries, adding that flour exports could drop from 1.5 million tonnes to 500,000 tonnes in the next five years.
Kazakhstan has encouraged grain exports to neighboring markets, Motyshev said, including offering subsidies to offset transportation costs for grain moving through Turkmenistan to Iran, Afghanistan, Tajikistan and Uzbekistan.
“We believe this measure may trigger the growth of flour milling production in these countries,” he said. “As a result, domestic wheat flour will go unclaimed, and our milling enterprises will begin shutting down.”
Flour mills currently are operating at 39% capacity, he said. Motyshev suggested the government redirect subsidies to support local enterprises instead of exports.
In 2024, Kazakhstan produced 3 million tonnes of wheat and rye wheat flour, the same as 2023. Production is 2.5 times that of domestic consumption, so export markets are critical for flour millers, Motyshev said.
“China’s market is extremely promising,” he said. “But to successfully enter and grow in that market, strong government backing is essential to promote our products.”
