Kazakhstan may increase production of oilseeds

According to the US Department of Agriculture, Kazakhstan has great potential to increase the production and export of oilseeds, but there are obstacles along the way.

The American department noted that in recent years, Kazakhstan has been increasing the production of oilseeds on its territory.

In particular, in 2020, about 2.5 million hectares were sown with oilseeds in Kazakhstan, but in 2022 a higher value was obtained: 3.4 million hectares.

It is likely that by 2025 this value will reach 5 million hectares, according to the US Department of Agriculture. At the same time, the yield will also increase significantly.

What makes this growth possible?


The great advantage of Kazakhstan is that it has modern technologies that allow you to get more products per hectare, as well as reduce the cost of resources for its processing.

In addition, Kazakhstan has favorable domestic prices and high demand for oilseeds abroad.

What are the problems?


First, the lack of accurate statistics can be difficult, which can prevent the government of Kazakhstan from clearly and accurately setting goals and analyzing the difficulties that farmers may experience.

Secondly, the USDA is concerned about the unpredictable decisions of the Kazakh authorities.

For example, the government provides support to companies, but the rules change every year, so each individual company does not know what and when it can count on.

Also last year, a ban was introduced on the export of certain products from Kazakhstan. It is especially noteworthy that this ban was actually bypassed: since it applied to products under a certain code, the companies put up a different code for their products.

Finally, logistics can also be a big challenge.

In particular, Kazakhstan has no access to the sea, which greatly limits the export of products, including agricultural products.

With export by rail, too, not everything is going smoothly. For example, sending goods to China is hampered by the fact that, due to the difference in gauge, it is necessary to reload products into other wagons, and this slows down the process.

A possible solution could be the construction of another terminal at the Bakhyt-Tacheng border crossing, which is scheduled to start soon.

Finally, Kazakhstani cargoes are often subjected to strict phytosanitary control at the entrance to China, and some of the goods are then turned back. That is, you need to work on the quality of products.

However, if all these problems can be solved, then Kazakhstan can take its rightful place in the world market of oilseed exporters.