October 21, 2011

Kazakhstan seeks new export grain markets

Kazakhstan is exploring the possibility of shipping grains to African and European countries, according to the Food Contract Corporation.

"This year Kazakhstan plans to reap a record grain harvest of 60 years at about 23 million tonnes, Spokesman for the Food Corporation Kuralbek Atamuratov said.

"Thus, we are looking for additional markets."

Kazakhstan harvested 27.8 million tonnes of cereals from 98.3% of the area by October 18, Novosti-Kazakhstan reported. This year Kazakhstan plans to harvest 22-23 million tonnes of grain in net weight. The country's export potential is estimated at 10 million tonnes.

According to Atamuratov, eight million tonnes of the grain harvest will be used for domestic consumption, six million tonnes for traditional markets such as Central Asia, Iran, Azerbaijan and other neighbouring countries while five million tonnes will be bought by Food Corporation to stabilise the market. The remaining supply will be exported to new markets.

"Food Corporation will offset grain transportation expenditures in the amount of US$40 per tonne to stimulate exports through Russia and China," Atamuradov said.

According to Atamuratov, price of Kazakh grain will not drop, the world sees a steady demand for grain after a drought in the US and Canada, and heavy rains in European countries.

Earlier Kazakhstan signed an agreement with Russian Federation to transport 5,500 wags to insure stable grain export. "Kazakhstan itself has 5,200 wags for grain transporting," Atamuratov added.