The collapse of domestic flour millers is inevitable

Flour mills in the Pavlodar region are finding it hard to compete with their counterparts from neighboring countries. They are asking for an opportunity to buy grain by road, World of NAN reports with reference to NCE.

"Of the existing 15 mills in the Pavlodar region, seven are working. All others are idle and will remain idle until the new harvest, if there is one. The mills are working at 20-30% capacity. Firstly, they have no raw materials. Secondly, the price of flour is outbid by Russian flour. It enters the market at a price of 100 tenge, but at the moment the price of first-grade flour is 150," Zhanar Serimova, chairman of the Pavlodar Region Processors Association, said.

She asked that processors be allowed to buy grain by road. Since railroad deliveries are costly for enterprises. And this is the situation all over Kazakhstan.

"About 150 mills in Kazakhstan are operating this way. Of them, 30 are working at about 30 percent. The rest of flour millers have warehouses full, nowhere to sell their goods. All exports are "packed" with Russian flour. On the domestic market, all bakeries work with Russian flour. Although the quality is not very good. They work because of the price," Zhanar Serimova, a flour maker, added.

Prices for goods from neighbouring countries are lower because of the difference in state support. If the government does not take effective measures to protect the domestic market, sooner or later domestic processing will collapse, and Russian flour millers will start dictating terms.

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