March 21, 2014
Chinese businessmen are interested in the grain market in Kazakhstan and intend to buy large grain companies in the north of the country, according to a source from the Ministry of Agriculture.
"They are currently involved in intensive negotiations with the owners and major shareholders who are the owners of arable land, grain storage facilities, and other infrastructure, that allow to produce, process and transport the grain products," the source added.
One of the major shareholders of one of the grain companies confirmed that he received a proposal from the Chinese side, and that negotiations are under way. Chinese businessmen conduct similar negotiations with the owners of grain companies in Akmola, North Kazakhstan and Kostanay regions.
Chinese entrepreneurs are already present at the market of Kazakhstan. Primarily, this is due to China's strategy to expand the potential food base in the neighbouring countries. Kazakhstan, along with Russia and Ukraine, is among the three largest exporters of grain; the annual commodity production in Kazakhstan on average amounts to 20-22 million tonnes.