Poultry breeders and flour millers against the ban on wheat imports from Russia

After publication of the news that Kazakhstan is discussing the introduction of the ban, domestic prices of wheat strengthened by 3-4 thousand tenge. Meanwhile, representatives of other industries have spoken out against the initiative of the Ministry of Agriculture, World of NAN reports with reference to agroqogam.

According to some reports, the cost of grain after the entry into force of the order should rise to 100 thousand tenge. Today, the Russian wheat is imported by grey dealers for 75 thousand tenge without paying VAT, and then sold on the export markets in Central Asia.

"Saving the industry of neighbors, they are killing ours".

Following the news, the Poultry Breeders' Union said they would immediately raise prices of their products if they temporarily rejected Russian wheat.

"Poultry farmers will have to raise prices because of rising production costs and at once government agencies and the antitrust authority will swoop in from all sides, accusing poultry farmers of collusion, as usual. Or, vice versa, the breeders will work at a loss, which will again lead to the reduction of production, reduction of domestic products on the shelves, and imported products of dubious quality will fill our shelves," - said the Union.

Representatives of the industry also recalled that last year Russia imposed a ban on the export of its own wheat, and Kazakhstan formed an artificial deficit. Then the price of Kazakhstani wheat reached 180 thousand tenge per ton, and poultry breeders took grain through Prodkorporatsiya on absolutely unfavorable terms.

"In addition, the news talks about illegal exports, but there is no record of illegal imports. That is why we, as a branch union, appeal to all state bodies, to the public and ask them not to impose a ban on the import of wheat by road. Yes, we understand that now our wheat is not competitive in price with Russian wheat, and the ban is introduced in order to support wheat producers, but by saving their industry, they are killing ours," - the Union of Wheat Growers said.

Flour millers.

Flour millers also have their arguments. By the way, there was a heated discussion about it in the industry association and many participants opposed the ban, stating that it was not a market measure, which would aggravate the country's image due to the government's interference in business processes. In addition, grain processors believe that "the additional money that domestic grain holders can get from the sale will come to them extremely late and will not provide serious support for the sowing campaign.

"The proposed prohibition puts individual business entities engaged in official importation of raw materials solely by automobiles and having no technical possibility to receive grain from the railroad (no railroad deadlocks) in unequal position. Rising cost of domestic flour will take place against the background of traditionally decreasing demand for it at this period, so supplies will decrease. This will be promoted by the overcrowded export markets. Besides, Russian analysts forecast a drop in the cost of Russian wheat in the territories bordering Kazakhstan after the introduction of the planned import restrictions - down to 8 thousand rubles per ton. If Russian grain becomes cheaper, Russian flour will become cheaper. Against the background of the rising cost of flour of domestic producers the gap in the cost of flour of Russian and domestic producers will increase. It will lead to the loss of positions on the export of flour from domestic processors and will strengthen the position of the Russian milling business on the export markets not only in the period of restrictions, but in the medium and long term", - said the Chairman of the Union of Grain Processors of Kazakhstan founders Evgeny Gan.

According to him, the ban on imports by motor vehicles does not solve the problem of gray imports by itself:

"It is necessary to consider this problem not as a problem of the Ministry of Agriculture of our country, but as a problem that threatens the security - and not only food - of the country as a whole," - said E.Gan.

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