According to industry experts, none of the major wheat-exporting countries has such a high share of domestic grain processing. While in Argentina the share of processed product exports in grain equivalent is about 5%, and in Australia it is only 1%, in Kazakhstan this figure reaches 50%, according to elda.kz.
One of the key factors driving this growth has been the active production of feed meal from low-quality wheat. High demand for this product, primarily from China, has made it possible to establish a new export market and ensure stable sales of grain that was previously difficult to sell.
Feed flour exports are expected to reach 3 million metric tons this year alone, which will exceed food flour shipments by 50%. This has created additional demand for feed wheat and improved the price situation for Kazakhstani farmers.
Industry representatives note that sustaining these results will depend on the absence of administrative restrictions on grain exports. In their view, market mechanisms allow for the simultaneous development of grain production and processing, whereas the introduction of export duties or quotas could negatively impact the country’s entire agricultural sector.
