Kazakhstan plans to expand flour exports to China

The Ministry of Agriculture of the Republic of Kazakhstan is taking measures to expand markets for grain processing products, the head of the Ministry of Agriculture Yerbol Karashukeyev said during the government hour in the Senate. According to the Ministry of Agriculture, the provision of the domestic market with domestic flour production is 237%, for pasta - 122%, cereals - 102%. As noted by Yerbol Karashukev, the problematic issue here is the narrowing of markets for Kazakh flour due to the development of its own processing in traditional importing countries due to the introduction of protectionist state support measures by them. As part of the recent visit of the head of state to China, we are working on expanding the export of grain processing products to China and including new companies in the register of suppliers," Karashukeev said. State support measures are also being taken to encourage businesses to open new production facilities through investment subsidies of up to 25% of costs for the construction and modernization of enterprises for deep processing of grain crops, subsidizing the interest rate on loans, the allocation of preferential loans to replenish working capital within the framework of the "economy of simple things", tax benefits in the form of a 70% reduction in VAT, as well as transport costs are reimbursed when exporting up to 30%. In general, as the Minister noted, the grain processing industry occupies a leading position. Its share in the total volume of food production is 21%. There are 350 enterprises (flour, cereals, pasta, deep processing of grain). At the same time, flour production in the amount of 3.3 million tons exceeds the domestic consumption of the country by several times (1.4 million tons) and occupies one of the leading positions in the world in terms of export supplies. Recall that at a government meeting, Prime Minister of the Republic of Kazakhstan Alikhan Smailov announced the start of shipment of Kazakh wheat to China. At the same time, he assured that the country's domestic demand for grain is almost half the volume of even the lowest harvest. Meanwhile, Kazhydromet RSE has issued the final forecast of winter wheat yield for 2023. In general, favorable meteorological conditions for the growth and development of winter wheat have developed this year. According to the calculated data obtained and taking into account the current and expected agrometeorological situation, the yield of winter wheat in Almaty, Zhambyl, Zhetysu and Turkestan regions is expected to be about the average annual values. Winter crop yields are expected to be higher than normal in the Raiymbek district of Almaty region and in the Kerbulak district of Zhetysu region," the forecast says.