January 20, 2005

Kazakhstan 2004 grain exports down 51% on year

Kazakhstan exported 2.83 million tons of grain in 2004, 51% down on 2003, which stood at a record-high of 5.82 million tons, the Kazakh Agriculture Ministry said in a statement, news agency Prime Tass reported Wednesday.

The lower grain exports last year were on the back of good harvests in neighboring states, especially Ukraine, lowering import demand for Kazakh grain. Demand from other countries was also weak as major world producers such as the U.S., Canada, Australia, Argentina and the European Union stepped up their sales.

In December, Kazakhstan's grain and flour exports amounted to 338,600 tons (in grain equivalent), down from 373,300 tons in November, and a decline from 446,300 tons in the same month the previous year.

Russia remained the major buyer of Kazakh grain last month at 134,800 tons, down from 170,500 tons in November. Tajikistan purchased 13,100 tons, down from 32,900 tons in November, while Azerbaijan increased Kazakh grain imports to 8,500 tons in December, up from 6,700 tons a month before.

Turkey was the major destination for Kazakh grain outside the Commonwealth of Independent States, accounting for 33,900 tons in December. No comparative figures were provided.

According to a forecast by the Agriculture Ministry, Kazakhstan is expected to export up to 5 million tons of grain this year. There are also plans to start exports via Iran, with a likely 1 million ton increase in wheat exports to Asian states along the new route.