Millers' delegation in Kazakhstan to meet the actors of the wheat supply chain
In September 2024, flour milling enterprises from 10 European countries travelled to Kazakhstan to meet local actors of the grain chain and learn about the 2024 local wheat crop and developments involving high-quality wheat and durum, trade policy and logistics.
European millers are interested to import Kazak high-protein milling wheat and durum that they blend with domestic wheat.
Crop quality and Logistics
The delegation met local officials including the Kazakh Grain Union, the Ministry of agriculture, Qaztrade, Baltic Control and several local grain traders.
Kazakhstan is the largest landlocked country in the world, covering an area of approximately 1.05 million square miles, making it the world’s 9th largest country. Logistical routes are mostly through the Black Sea or to the Baltic ports. The Kazakh government has approved restrictions on the import of wheat from all countries in all forms of transportation, except for transit or for movement between member states of the Eurasian Economic Union. Wheat may transit Kazakhstan but not end up in Kazakhstan until 31 Dec 2024. This order is aimed at tightening restrictions on non-Kazakh wheat into Kazakhstan to relieve strong price competition during the fall harvest. Regarding biotechnology, so far local farmers are not allowed to use GM seeds by law and for all crops.
Due to very recent heavy rains, local farmers estimated most of the current wheat crop had fallen from grades 1 and 2 to grades 3 and 4 (grade 1 being the best and 5 being the worst) with a decrease in the level of proteins (<14.5%) compared to best previous years (<16-17%). Production has so far been revised for wheat down from 15.8 MT to 14.2 MT (of which 1 MT with high level of proteins). 3-3.5 million hectares of wheat has been harvested so far with average yields 1.5t per hectare producing 4.5 million t: harvest has begun mid-Sep and roughly 40-50% of the wheat crop still remain to be harvested.
However, transit tariffs have increased dramatically and they now negatively impact the import of high-quality wheat from Kazakhstan.
Tour of local Facilities
Aside from meetings and presentations, the delegation had a look at some Kazakh farms, milling and storage facilities.
It toured Company Enbek LLP in the Astana area, which produces a variety of certified organic wheat and durum, including Khorasan wheat. In the North of Kazakhstan, the visit to El Grano LLP facility Grain storage and field - founded in 1997 in the Akmola region. The delegation was also able to visit AGRIMER-ASTYK LLP, which consists of several production facilities including a grain receiving facility (total capacity is 185 thousand t of one-time storage and concrete silo with capacity of 107 000 t with flat storage with capacity of 60 000 t, together with a mill with a capacity of 300 t of baking flour per day and a durum wheat flour mill with a capacity of 200 t of products per day.
