Export of wheat from Kazakhstan to EU countries increases 13 times

Kazakhstan is increasing the volume of sales of its products to the EU countries. Export from Kazakhstan to the European Union has grown by 84.5 percent over two months of this year, totaling US$5.2 billion. Basic products supplied to their market include oil, gas and petrochemicals, ferroalloys, aluminum and wheat. The export of the latter has increased 13 times over two months of 2022. Experts of energyprom.kz platform relate such progress to the increase in wheat sown area last year. It amounted to almost 13 million hectares, which is 6.2 percent more than in 2020. Kazakhstan supplied nearly 600,000 tonnes of wheat and meslin to the foreign markets in January of this year, which is almost half more than a year earlier. In monetary terms, the growth totaled 87 percent, reaching US$177 million.

“For January of 2022, the prices of export supplies of wheat and meslin grew by 19% over the year. In particular, the prices of export supplies increased by 21.8 percent to the CIS countries, by 10.8% – to the rest of the world,” experts added.

Speaking of import, a reduction can be expected in volumes due to a temporary ban on the export of grain crops, which was introduced by Russia. Accordingly, the flow of grain from Russia to the market is supposed to decrease.

“As of March, there was no sharp rise in the prices for wheat for manufacturers of agricultural products: plus 1.5% per month so far. However, the figure grew by a very tangible 20.1% over the year. Overall, the price for grain crops increased by 18.1%, and for agricultural products – only by 17%. It is difficult to say what will happen to the prices of agricultural products in the future (especially taking into account another jumps in the dollar exchange rate) and how this will affect retail prices for Kazakh residents, but the forecast is hardly optimistic,” the research states.

 

Translation by Saniya Sakenova

Editing by Saule Mukhamejanova