Kazakhstan Wheat insights

Kazakhstan is ready to supply Armenian consumers with around 15–20 thousand tons of food-grade grain per month, the country’s Ministry of Agriculture reported. The ministry’s subsidiary, Prodcorporation, is in talks with Armenian partners interested in stable wheat supplies, and in the future, shipment volumes to Yerevan could increase. Last week, Kazakhstan sent its first-ever wheat

The recently concluded agricultural season has once again demonstrated a steady increase in yield. Kazakhstan has achieved significant results for the second consecutive year through the effective application of modern technologies and the optimization of crop structure, he said. According to Sultanov, this year's total grain production reached 27.1 million tons (gross weight), with wheat accounting for 20.3 million tons, an increase of 500,000 tons from last year, despite a reduction in wheat planting area by approximately 900,000 hectares. This year's legume crop yield exceeded 1 million tons for the first time. Oilseed crops also set a new record, reaching 4.5 million tons, with harvesting still ongoing in some areas. These crops are increasingly gaining importance in the crop structure. The yield of other crops was also good: potatoes at 2.9 million tons, vegetables at 3.8 million tons, and melons at 2.6 million tons. Overall, the autumn harvest was completed smoothly within the normal and optimal agricultural technical timeframe, without major difficulties. Currently, the harvesting of oilseed crops, silage corn, and sugar beets is entering its final stages. The new grain intake has reached 7.7 million tons, more than double the amount from the same period last year. Among the soft wheat intake, 53% is grade 1-3 (56% last year), and grade 4 accounts for 35% (28% in 2024). Over half of the wheat has a gluten content above 20%, suitable for food processing, Sultanov pointed out. He indicated that the demand for wheat is expected to remain at the same level as last year. About 12% of the wheat is of lower grades and will be used for feed or the production of feed flour. In recent years, especially in neighboring markets, the demand for such products has been steadily increasing. This year's total grain production is 27.1 million tons. Currently, the load rate of licensed grain warehouses is 48%, with about 6.3 million tons of stored grain. From September to October, about 2.2 million tons of new grain were exported; 17.4 million tons were stored in farmers' own warehouses, 700,000 tons were used for processing, over 500,000 tons were used for livestock feed. Additionally, some grain is stored in flour mills, warehouses, and in the widely used flexible silo tanks in the fields. The remaining storage capacity nationwide is about 7 million tons, he said. Sultanov also noted that the export volume for the previous agricultural season reached 13.4 million tons, a 47% increase year-on-year. Although some experts had doubts about whether the 12 million tons target could be met in 2024, the result exceeded expectations. This year, Kazakhstan has actively explored new export directions, supplying grain for the first time to Belgium, Portugal, Poland, Norway, Vietnam, the UAE, Morocco, Algeria, and Egypt. Meanwhile, exports to Iran, Azerbaijan, Armenia, and Georgia have resumed. He said. Currently, the international market's demand for Kazakhstan's grain remains stable and at a high level. The new season's grain export volume has reached 2.2 million tons, a 21% increase year-on-year. This year's potential for new grain exports is expected to reach 13 million tons.

Hopefull Grain & Oil Group, a China-based agribusiness, plans to invest $1.5 billion to build a deep wheat processing facility in the Akmola Region of Kazakhstan. Marat Akhmetzhanov, governor of the Akmola Region, and Shi Kerong, chairman of the board for Hopefull Grain & Oil, signed a strategic framework agreement for the two-stage project during