Kazakhstan is reducing its wheat acreage in favour of oilseed crops

Kazakhstan is accelerating its shift from the traditional dominance of grains toward expanding oilseed production, particularly sunflower seed. According to USDA, more than 11 mln ha of wheat are expected to be harvested in 2026/27, around 1 mln ha less than two seasons earlier. The decline mainly reflects farmers’ efforts to expand acreage under more profitable oilseed crops.

Over the past five years, Kazakhstan has been making a gradual but strategic shift from wheat and other grains toward oilseeds. Oilseed area increased from 2.8 mln ha in 2020 to more than 3.3 mln ha in 2025/26, while the industry aims to expand it to 4 mln ha by 2029. Average sunflower seed yields have also increased significantly, from 0.8 t/ha in 2014 to 1.5 t/ha in 2024.

The government is encouraging not only oilseed production but also domestic processing. Farmers receive a subsidy of 22,000 tenge, or about $48, for every ton of sunflower seed delivered to domestic processors. Meanwhile, sunflower seed exports are subject to a 20% duty, with a minimum rate of €100/t, as the government seeks to increase exports of vegetable oil, meal and other value-added products.

Kazakhstan is also rapidly expanding its processing capacity. In 2024–2025, the government allocated 18 bln tenge, or around $40 mln, to support the construction and modernization of oil processing facilities. Vegetable oil refining capacity more than doubled from less than 300 thsd tons in 2021 to a projected 600 thsd tons in 2025. Vegetable oil production increased from around 180 thsd tons in 2014/15 to more than 560 thsd tons in 2023/24.

The expansion of processing has already significantly boosted the country’s export revenues. Kazakhstan’s foreign currency earnings from exports of oils and fats have quadrupled in four years, from $240 mln to $963 mln, while the sector now accounts for 27% of processed agricultural exports. The country’s new export strategy aims to raise annual exports of oils and fats to more than $1 bln.

Tags: Kazakhstan, oilseeds, wheat