Kazakh farmers will have more destinations for exports

Exports of local processed agricultural products increased by 18.1 percent, World of NAN reports citing lsm.kz.

According to the Ministry of Trade, the quarantine restrictions and supply chain disruptions provoked a drop in demand for non-food products. However, the demand for basic food products in the world has increased, it allowed increase of export of Kazakhstan processed agricultural products up to 1.3 billion US Dollars. 

At the same time, to ensure the stability of the domestic market and the projected volume of exports, forward contracts for mutual supply of vegetables such as potatoes, carrots, onions, cabbage will be concluded with neighboring countries. These are Kyrgyzstan, Uzbekistan, Tajikistan, Iran and Russia.

"During the mass harvest period, Kazakhstan will be able to supply neighboring states with about 765 thousand tons of vegetables. In this case the domestic market will be timely provided with 280 thousand tons of imported vegetables. Due to this, the expected dynamics of price fluctuations for these products will be in the corridor of 7-10%," - explained in the Ministry of Trade.

At the same time, the agency identified 16 priority products, with a forecast increase in exports by $ 13.5 billion. Including in Qatar, barriers were removed for the Kazakh producer of meat products Halal, products are already being sold in a foreign country.

It is worth noting that the Ministry of Trade in 2021 will allocate 7.7 billion tenge to help producers of domestic products to export.

"There are about 600 active exporters in Kazakhstan. In the next three to four years there will be 1 thousand. For this purpose, in 2020 an export accelerator was launched on the basis of QazTrade, which supports small and medium-sized businesses in export development and support up to entering new markets," the ministry added.

Last year, the Chinese direction has been chosen and training for food industry enterprises began. About 500 companies applied for participation. Of these, 35 manufacturers with the highest export potential were selected.

According to the results of the work, there are about 18 potential contracts for an approximate amount of $167 million. However, during the acceleration of one of the problems was the lack of production volumes. In particular, the demand of Chinese companies for meat products, vegetable oils, sauces and salt exceeds the current capacity of the Kazakh participants of the program by four times. In this regard, it is planned to increase production and exports.

At the same time, exports to the 10 trading partner countries of Kazakhstan may grow by $5.1 billion until 2025. The top countries with high potential for increasing exports of the manufacturing industry by 2025 include China ($808 million), Germany ($629.3 million), South Korea ($543 million), Indonesia ($525.6 million), France ($496.6 million), Turkey ($481.8 million), Spain ($409.4 million), Vietnam ($406.4 million), Italy ($402.9 million), Japan ($396.3 million). Growth is expected in 45 to 70 commodity items, depending on the country.

In order to establish optimal options for the supply of priority export products, work has begun on the formation of cross-border hubs.

In the development of modern cross-border trade and logistics infrastructure, the main "points of growth" will be the Khorgos hub on the border with China and the Central Asia ITCPS on the Kazakhstan-Uzbekistan border. Similar centers will be established on the border with Kyrgyzstan and Russia.

Thus, the coordination of goods, cargo and services along the East-West and North-South axis on international corridors crossing the territory of Kazakhstan will be ensured.

Exporters also receive preferential loans and export insurance. As of today, KazakhExport has insured contracts of more than 200 exporters for almost 300 billion tenge.

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