Kazakhstan, one of the world's prominent wheat producers, has demonstrated a significant surge in its wheat and meslin exports over the initial five months of this year, strengthening its position in the global grain market. As per a recent report by EnergyProm.kz, the country's wheat and meslin exports recorded a remarkable growth of 16.5% in volume and 3.5% in value, amounting to 3.3 mn tons worth $876.7 mn.
The report indicated that despite a 3.5% decrease in delivery prices during the month of May, coupled with a 6.3% decrease over the past year, Kazakhstan managed to achieve substantial growth in its wheat and meslin exports. This growth comes at a time when the global price of wheat experienced an unexpected upturn of 1.6%, marking the first increase in nine months. This price increase was primarily attributed to uncertainties arising from the disruption of wheat export supplies from Ukraine. Russia's withdrawal from the Black Sea Grain Initiative and the damage sustained by Ukraine's port infrastructure along the Black Sea and the Danube River contributed to this upheaval in the market.
Kazakhstan's wheat supply prices to the Commonwealth of Independent States (CIS) saw a decline of 14.9% over the course of a year. However, the picture was different for other countries, where supply prices actually rose by 9.7%.
The majority of Kazakhstan's wheat and meslin exports, around 2.3 mn tons, were directed toward CIS nations. This marked a significant increase of 25.5% compared to 2022. Uzbekistan emerged as the largest recipient within the CIS, receiving a substantial 1.7 mn tons. Other recipients within the region included Tajikistan with 325,100 tons and Turkmenistan with 156,100 tons.
Outside of the CIS, Kazakhstan exported 974,600 tons of wheat, experiencing a slight decline of 0.3% from the previous year. Notably, Afghanistan emerged as the most significant importer, acquiring 318,500 tons of wheat. Italy followed suit with 214,500 tons, closely trailed by China with 152,800 tons.
The surge in Kazakhstan's wheat and meslin exports is partially attributed to a 6.5% increase in the wheat sowing area, which reached a substantial 13.7 mn hectares this year. Among the regions contributing significantly to this growth were Akmola, Kostanai, and North Kazakhstan.
Annually, Kazakhstan produces an average of 13.5 mn tons of soft wheat, effectively catering to both domestic consumption and international export demands. In order to secure the stability of its domestic market, the government has put in place a contingency plan involving a 1 mn ton reserve.
As the nation continues to solidify its position as a major player in the global wheat market, these recent statistics reflect Kazakhstan's commitment to agricultural excellence and its ability to navigate through market fluctuations and challenges.
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