Kazakhstan: Wheat exports experience a big dip
Kazakhstan’s wheat exports dropped nearly 40% in early 2024, as Russian wheat, which is cheaper and of higher quality, captured market share from traditional Kazakh buyers like Central Asia, Afghanistan, and Italy. Facing challenges from Russia’s import ban and China’s recent tariff hikes, Kazakhstan is exploring new markets, including Iran, Pakistan, and Brazil. Calls are growing within Kazakhstan for increased subsidies to help farmers remain competitive internationally.
Exports of Kazakhstan’s key agricultural product – wheat – have plunged by almost 40 percent during the first eight months of 2024 over the previous year’s total for the same period. The price of Kazakh wheat is being undercut by Russia.
Kazakh farmers exported just over 3 million tons of wheat during the January-August timeframe, Vice Minister of Trade and Integration Kairat Torebayev announced at a government meeting. The lower export volume is due in part to a comparatively modest harvest. But Torebayev added that traditional buyers, including neighboring Central Asian states, Afghanistan, and Italy, have reduced their consumption of Kazakh wheat due to price dumping by Russia.
According to the first deputy chairman of the Auyl agrarian party, Toleutai Rakhimbekov, Kazakh grain cannot compete with Russian grain, which is 1.5 times cheaper. “The quality of Russian grain is much higher, because Russian farmers use fertilizers, pesticides, update seeds and equipment more than ours,” the agricultural news site APK Novosti quoted Rakhimbekov as saying.
Rakhimbekov said an increase in government subsidies would be needed to enable Kazakh farmers to regain wheat markets. Russia has added to the challenges by imposing a ban on imports of wheat and other products from Kazakhstan as of October 17, citing “phytosanitary safety.” Russian regulators did not specify how long the ban would remain in place.
Kazakh MPs say the ban is unjustified and are pressing the government to take up the matter with Russian authorities.
Carving out new markets is proving challenging for Kazakhstan. Farmers had pinned their hopes on China, as wheat exports grew more than five-fold in 2023 over the previous year’s total, reaching about 1.5 million tons. But in August, Beijing unilaterally imposed a sharp increase in duties on Kazakh wheat, effectively slowing exports to a trickle. The Kazakh government is working to troubleshoot the tariff issue.
Kazakhstan currently has plans to resume grain supplies to Iran and explore exports to Pakistan, Indonesia, Brazil and Malaysia.
Source Link : https://eurasianet.org/kazakhstan-wheat-exports-experience-a-big-dip
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