Agricultural Export - The Times Of Central Asia

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China Seeks to Import 20,000 Tons of Pork from Kazakhstan

Representatives of the Chinese Meat Association visited EMC Agro, one of the largest meat processing enterprises in Kazakhstan, with an interest in importing 20 thousand tons of pork per year. The Kazakh Ministry of Agriculture reported that during their tour of the facility in North Kazakhstan, the Chinese delegation witnessed the processing cycle from slaughter to packaging. Fully automated, the process complies with international sanitary and epidemiological standards, with quality control monitored around the clock by a laboratory equipped with German analysers. The produce is then frozen. Regarding the company’s readiness to supply China with 60% of its produce, EMC Agro head Erzhan Yeleubaev stated, “China has great demands. Supply volumes must be stable and raw materials must be safe. Our meat is of high quality, we have no doubt in our products, and we are ready for fruitful cooperation. The Chinese market is important for us.” The EMC Agro meat processing plant has a production capacity of 20,000 tons of meat per year and 30 tons of finished meat products per day. In February 2024, China finally cancelled the ban in place since 2022, on the import of meat imposed by concerns over foot-and-mouth disease in Kazakhstan.

New Plant for Deep Processing of Grain in Kostanay, Kazakhstan

At the Kazakh-Chinese Business Council meeting in Astana on July 2, the administration of Kostanay, Baiterek Venture Fund, KazFoodProducts, and the Chinese company Myande Group signed a Memorandum of cooperation for the construction of the Qostanay Grain Industry plant in Kostanay. As reported by Kazakh Invest, the plant for the deep processing of wheat into amino acids, bioethanol, gluten, animal feed, and wheat bran, when launched in 2027, will manufacture 430 thousand tons of products per year and create about 600 jobs. Hailing the agreement as an important step in strengthening bilateral relations, Rong Zhen, CEO of Myande Group, stated, “We see huge potential in the agro-industrial sector of Kazakhstan, and this cooperation will increase its efficiency and manufacturability and open up new opportunities for Kazakh products to enter the Chinese market." Alikhan Kairatbek, CEO of KazFoodProducts, added: "Based on the quadripartite agreement, it is planned to increase the production of starch molasses to 33 thousand tons per year for further use by domestic confectionery companies. New jobs will be created. Together with the Akimat (administration) of Kostanay region and Baiterek Venture Fund, we are launching large–scale projects in the field of agriculture and are very pleased to have a strategic partnership with Myande Group." Myande Group will also upgrade the AsiaGrowFood plant for deep processing of corn in the Almaty region to increase its production from 200 to 300 tons per day. Deep processing of grain is one of the most promising areas in the manufacturing industry regarding products with high added value. Kazakhstan annually harvests 16-17 million tons of grain, a third of which are exported. Over 260 different types of products with added value can be produced from grain.

Kazakhstan Set to Develop Halal Market

From 4 to 12 June, over 100 certification and accreditation specialists from Kazakhstan attended a training seminar on Halal standards in Astana. Over the duration of the course, participants received training on Halal requirements and OIC/SMIIC international standards set by international experts in Halal accreditation and certification. In her address, Zhanna Esenbekova, Chairperson of the Technical Regulation and Metrology Committee of the Ministry of Trade and Integration of Kazakhstan, emphasized the importance of national legislation adapted to ISO SMIIC standards for Kazakhstan’s economy as well as the need for trained specialists to promote and monitor compliance with Islamic requirements and standards. “Halal standards are receiving increasing attention worldwide and the areas of Halal standardization are expanding. Not so long ago, Halal concerned only a few types of everyday products, but today Halal has expanded its boundaries to areas such as transport and logistics, finance and credit, tourism and hospitality, clothing and footwear production, restaurant business and many others,” reported Esenbekova. One of the seminar’s lecturers, international expert Emre Kırıcıoğlu, added: “Today, the Halal market has over 1.8 billion consumers worldwide and a turnover of 2 to 5 trillion dollars, with regard to Halal financing. Kazakhstan has a reputation for self-sufficiency in food supply. Local meat, grain and vegetables are fine in quality and grown under favourable conditions. Given the profile of a large sector of the population, your country is well positioned to compete in international markets in products acceptable by Islam.”

Rise in Grain Exports from Kazakhstan to China

As announced last week at the first Kazakh-Chinese grain forum in China, the volume of cargo transportation between Kazakhstan and China in 2023 increased by 22% compared to 2022. Reaching a record high of over 28 million tons, the total includes 12.6 million tons of Kazakhstan’s export, 35% more than in 2022. During their visit, the Kazakh delegation toured China’s new terminal in the bonded zone of the Alashankou station for unloading grain and vegetable oils, and according to Kazakhstan’s Ministry of Transport, agreements were reached by both sides regarding transportation technicalities and increasing the throughput of Kazakh agricultural products. Nurzhan Kelbuganov, Deputy Chairman of the Committee of Railway and Water Transport at the Ministry of Transport of Kazakhstan, commented, “Today, the main crops supplied by Kazakhstan to China are barley and wheat. In 2023, after the pandemic, it was possible to resume transportation to China, which allowed for a 2.5-fold increase in Kazakh grain exports. Hence, in 2021, about 347 thousand tons were exported [to China], in 2022 — 747 thousand tons, and in 2023 — over 2.2 million tons.”

Kazakhstan and EU Seek Increase in Trade of Agricultural Products

On May 29, Kazakhstan Agriculture Minister Aidarbek Saparov entered discussions with European Commissioner for Agriculture Janusz Wojciechowski for the removal of trade barriers for agricultural products. The conference took place during the European Commissioner’s first High-Level Mission to Kazakhstan, attended by a delegation of 40 agri-food businesses and organizations from across the European Union. Saparov and Wojciechowski agreed to continue discussions on the technicalities of opening the EU market for Kazakh honey, meat, and dairy products, as well as the export of pig and poultry products from EU countries to Kazakhstan. In 2023, Kazakhstan exported 650 thousand tons of wheat to EU countries, alongside flax seeds, rapeseed, and processed grain crops. Although Kazakh producers are not yet licensed to export livestock products to the EU, Kazakh fish is in high demand by European buyers. Of Kazakhstan’s 70 fish processing enterprises, 18 have been granted the right to export their products to the European Union countries. In 2023, Kazakhstan’s exports of fish products amounted to around 25 thousand tons, worth $85 million. About 11 thousand tons were exported to EU countries including Germany, the Netherlands, Denmark, and Lithuania for a total of $60 million. With a long tradition of livestock farming, Kazakhstan is naturally eager to export its meat, particularly horsemeat. Minister Saparov therefore proposed intensifying efforts to export such produce in tandem with securing approval to export Kazakh honey to the EU. In a press statement ahead of his visit, Commissioner Wojciechowski announced, “This High-Level Mission is a strong signal of our intention to further strengthen our partnership and our bilateral trade in agri-food products with Kazakhstan.” Kazakhstan remains a key gateway for EU food and beverage producers seeking entrance to the Central Asian market, and Kazakhstan itself, is an important destination for EU agricultural exports, which in 2023, amounted to €702 million.

Kazakhstan and Netherlands Cooperate in Agriculture and Healthcare

On 10 May in Astana, contracts were signed by Kazakhstan and the Netherlands to promote bilateral relations in both agriculture and healthcare, reported Kazakh Invest. The Ministry of Agriculture of Kazakhstan and the Dutch company VISCON signed a memorandum of understanding to implement the construction of an automated center for crop production. Employing artificial intelligence technologies and in vitro cultivation methods, the project will improve the sustainability, quality, and yield of crops in Kazakhstan. Running from 2024-2030, the initiative is set to produce 12 million seedlings annually. The Ministry of Agriculture also signed a contract with Royal GD to modernize Kazakhstan’s current veterinary service. By upgrading quality control, the joint project will ensure that Kazakhstan’s livestock products meet international standards and hence, boost its exportation to Western markets. With regard to the nation’s health, the Ministry of Healthcare of Kazakhstan and Royal Philips signed a memorandum of cooperation through which the Dutch company will localize the production of portable ultrasound devices in Kazakhstan.