Kazakhstan. Grain Situation. Mar 2015 April 9, 2015
Kazakhstan's Grain Harvest Fell in 2014: According to the Ministry of National Economy, in 2014 Kazakhstan harvested 17.162 million tons of grain and leguminous crops in net weight after processing, a 5.9% decline. Wheat accounted for 75.7% of the total volume of crops and legumes. The gross harvest of oilseeds increased by 3.3%, potatoes by 2%, vegetables by 5.3% and melons by 12.6%. The North-Kazakhstan region contributed 26.5% of the total harvest, Akmola region contributed 26.2% and Kostanai region 23.2%. The highest yield of vegetables and potatoes was reported in the Almaty region with 26.9% and 20% of the national total yield respectively. The grain harvest in 2013 in bunker weight totaled 20 million tons and 18.2 million tons after processing.
Food Corporation to Supply Grain to Maintain Stable Bread Prices:Between January and September, 2015 the Kazakh Food Corporation will supply 738,000 tons of wheat to the regions to curb prices for bread and flour. Since January 2015, over 18 tons of wheat have already been delivered. The price of wheat set for the first quarter of 2015 is 43,000 tenge per ton. The Food Corporation also signed agreements to supply nearly 280,216 tons of feed grain to poultry, cattle and pig farms for the period February to May 2015.
KazAgro National Holding Closes Bidding for Sowing Campaign:KazAgro National Holding has stopped accepting bids from farmers for financing of the 2015 sowing and harvest season, citing an overrun of the allocated budget. The final deadline for receiving bids was February 13, 2015. According to KazAgro, ". . . 86.9 billion tenge worth of bids from 10 second-tier banks have been accepted," and the holding plans to receive 60 billion tenge from the budget for these purposes. National Managing Holding KazAgro JSC, established in December 2006, is in charge of the government's agricultural policy. The holding manages the assets of its subsidiaries: National Company Food Contract Corporation, KazAgroProduct, KazAgroFinance, Agrarian Credit Corporation, Fund for Financial Support of Agricultural Sector, KazAgroGarant and KazAgroMarketing.
Grain Elevators in Kazakhstan Obliged to Use Electronic Grain Receipts:Agriculture Minister Asylzhan Mamytbekov announced that grain elevators in Kazakhstan will be obliged to implement a grain e-receipt system based on a draft law under consideration by Kazakhstan's Parliament. The law, among other things, envisages implementing grain e-receipts. The current system contains "certain flaws" allowing grain elevators to issue securities "in endless numbers," according to the Minister. One grain elevator can store 100,000 tons of grain but can issue grain receipts worth 200,000 tons. Reportedly, the current system lacks controls because managers maintain paper logs. Oversight would require a controller at each elevator. The Ministry maintains that use of e-receipts in parallel with paper receipts will elevate oversight. Specialized software would monitor conformity of e-receipts, issued by grain elevators, to grain volumes stored at these facilities. The Ministry argues that such a measure would increase trust in the system and thereby would permit the Ministry to attract additional funds to agriculture.
Kazakhstan Plans to Build Grain Terminals in Poti and Vladivostok: Citing GoK plans to build terminals in Poti, Georgia and Vladiviostok, Russia as well as subsidization of wheat transport to the tune of 15 billion tenge, Agriculture Minister Asylzhan Mamytbekov recently stated that Kazakhstan should give up plans to build grain terminals abroad and reallocate funds for support of its own farmers. Mamytbekov maintained that such funds should instead be used to support farmers, develop the seed sector, purchase machinery and subsidize lending rather than "railways, including the Russian ones." Kazakhstan signed an agreement on the construction of the grain terminal in Poti in 2007, but the project stalled due to difficulties relating to the charter capital formation in a would-be Kazakh-Georgian enterprise, with the further decision to relocate the terminal venue to another Georgian port, Batumi. In 2011, Romin Madinov, a member of the lower chamber of Kazakhstan's Parliament, spoke of the necessity of construction of a Kazakhstan-owned terminal in Vladivostok.
Vegetable Oil Plant Launched in Kostanai Region: According to a Kostanai regional administration official, a facility for processing oilseeds will be launched in the Uzunkol District in November 2015. Nurjailyau-2 directed its own funds to the construction of a 350-million tenge plant. Commissioning is scheduled for November 2015, while the projected output will be reached in 2016. The plant is planned to process 3,000 tons of oilseeds a year. The company recently signed a contract for the delivery of equipment from Turkey