Kazakhstan increases the supply of wheat to premium markets

In the season 2021/22 there is a positive trend in the supply of Kazakh wheat to premium markets. Among them - Italy, Turkey, Latvia, Azerbaijan, reports World of NAN with reference to APK-Inform.

Kazakhstan, being one of the largest producers and exporters of wheat in the world, exports only about 20% of grain outside of the former CIS and Central Asia. The key markets for wheat remain Uzbekistan, Tajikistan and Iran.

As the agency's analysts note, Uzbekistan, occupying the leading position in the volume of purchases of Kazakh wheat, has imported 1.6 million tons of grain since the beginning of season 2021/22 (for the period July-January), which was 22% lower than exports for the same period a season earlier. Tajikistan, being on the second position in the ranking of importers of Kazakh wheat, also reduced the volume of purchases in the first half of the season to 610 thousand tons, which is 5% lower than in 2020/21. At the same time, in January 2022 49 thousand tons of grain were shipped in this direction, which is 36% less than in January of the previous season.

At the same time, Iran significantly increased purchases of grain from Kazakhstan in 2021/22 thus taking the third position. Shipments in this direction for July-January reached 410 thousand tons, which is 16 times higher than the volume of exports for the same period of the previous season. Thus, the increase in supplies to Iran by more than 80% compensated the reduction of exports to Uzbekistan and Tajikistan during the period under review.

Among the five importers of Kazakh wheat in the current season also included Afghanistan and Turkmenistan. And if shipments in the direction of Afghanistan remain stable, Turkmenistan has increased its imports to 234 thousand tons for the period, which is 13 times higher than during the same period of the previous season and 8 times more than for the entire year 2020/21.

A total of 3.6 million tons of wheat exports from Kazakhstan during July-January of the current season, which is 5.9% higher than the volume for the same period the season before.

" The positive dynamics in the supply of Kazakh wheat to the premium markets is also worth noting. In particular, following the results of July-January 2021/22 supplies to Italy rose by almost 5 times, reaching 215 thousand tons against 43.4 thousand tons for the same period of the previous season. Also the supply to Azerbaijan increased by 8.5 times (to 121 tons), and by 6.3 times - to Turkey (up to 27.6 tons). Supplies to Latvia (9.9 thousand tons), Norway (3.0 thousand tons) and Switzerland (2.4 thousand tons), which were not carried out during this period of the previous season, are still in small quantities," experts say.

The global market is familiar with Kazakhstani products, which will contribute to the possibility, at least partially, to compensate for the lack of exports from Ukraine and Russia. However, the main stumbling block for the development of Kazakhstan's export potential and reorientation of export flows is logistics. In the absence of direct access to the "big water," Kazakhstan needs to increase the capacity of logistics hubs, experts say.

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