September 8, 2011
Export subsidies to increase Kazakhstan grain supply to Egypt
A partial transport costs subsidy for the grain export will give favourable conditions in promoting the Kazakh grain to the Egyptian market, Anna Buts, Kazakh Agriculture Ministry's Agriculture and Plant Protection Department Director said.
Buts said the Kazakh wheat is less competitive in Egypt's grain market due to the high transport costs, which is linked with Kazakhstan's geographical location. Since the Russian Federation in 2010 imposed a ban on grain export and Ukraine set quotas on the grain export Kazakhstan was able to ship 467,500 tonnes of grain to Egypt, she added.
Buts said the Russian grain usually has high competitiveness on the market due to lower transportation costs and shorter delivery time, compared to the American and Australian grain. In addition, the Egyptian market is important for such major wheat exporters like the US, France and Australia.
Buts said Egypt is one of the leaders in the wheat consumption per capita in the world and is among five world wheat importers.
The country's total wheat consumption is growing faster than production due to the population growth and, Egypt does not have an opportunity to reduce imports of wheat, which stands at an average of 7 million tonnes per year or about 50 % of consumption, Buts remarked.
Kazakhstan intends to export wheat and grain in the amount of 8-9 million tonnes in this marketing year. Kazakhstan's grain export, including flour in grain equivalent, is projected at 8-9 million tonnes in 2011-2012 marketing year.
The grain harvest is projected at 18 million tonnes in Kazakhstan in 2011. Based on the forecast of the International Grains Council, the world's total yield of wheat in 2011-12 will amount to 674 million tonnes, which exceeds last year's volume (651 million tonnes) by 23 million tonnes.