Kazakhstan will establish grain supplies to Egypt

The Food Corporation has established contacts with the world’s largest grain buyer from Egypt. The country is currently being accredited to participate in tenders. They are discussing the supply of up to 400 thousand tons of wheat. A framework contract was also signed with a Chinese company for the supply of flax. Barley supplies to Iran have begun. Kazakhstan intends to organize grain supplies to other countries.

The Food Corporation pays special attention to increasing the export potential of Kazakh wheat. A good wheat harvest is expected this year – about 18-19 million tons. Domestic consumption is about 6 million tons. The export potential is estimated at 12 million tons,” Asylkhan Dzhuvashev, Chairman of the Board of NC Prodcorporation JSC, said yesterday at a meeting of the Agricultural Committee of the Majilis of the Parliament in Kostanay.

Last year, low global grain prices and poor quality significantly hampered the export of Kazakh wheat. This year, the main grain exports were concentrated to China, due to demand and high prices. However, the transportation capacity of the grain carriers was limited.

To develop exports, the Prodcorporation launched the Export Consolidation program, which will allow farmers to enter export markets.

“The Prodcorporation concludes an export contract, agrees on prices with farmers, consolidates small batches of farmers’ products, provides logistics and delivery of products to foreign buyers. All this work will be done free of charge,” said Dzhuvashev.

As of today, the Prodcorporation has signed a framework contract with a Chinese company for the supply of flax from Kazakh farmers for a total of $3 million and there are already farmers who are ready to supply their products.

Also, the Food Corporation is working on the option of exporting 2-3 million tons of wheat to China on the basis of a consortium with large traders at uniform prices.

The Prodcorporation has also established contacts with the world’s largest grain buyer from Egypt – GASC. Currently, the Prodcorporation is being accredited in Egypt to participate in tenders. We are discussing the supply of up to 400 thsd tonnes of wheat.

We have also started shipping barley to Iran, and plan to increase exports to Afghanistan.

The government of Kazakhstan is taking incentives to encourage grain exports, and is discussing transportation subsidies to remove surplus grain from the market.

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Tags: wheat, Egypt, Kazakhstan