Kazakhstan, a leader in the grain industry, is set to transform its agricultural export strategy by focusing on becoming a major feed exporter within the Shanghai Cooperation Organisation (SCO). This strategic shift promises to enhance Kazakhstan's trade prospects and capitalize on the growing demand for animal feed among its SCO partners.
At a recent SCO meeting, Kazakhstan's Agricultural Minister emphasized the nation's commitment to transitioning from traditional grain exports to producing and exporting high-value feed products. This move aims to leverage Kazakhstan's robust agricultural base to meet the rising demand for animal feed in the region, particularly in countries like Iran, which annually imports between 2.5 and 3 million tons of barley for its livestock sector.
Kazakhstan’s grain industry is the cornerstone of its economy, and this new focus on feed exports is poised to add significant value. By processing grains into animal feed, Kazakhstan can diversify its export portfolio and potentially achieve higher economic returns. This approach aligns with the broader industry call to shift from raw grain exports to products with greater added value, such as feed, meat, and dairy. The potential markets for Kazakh feed include China, Central Asia, and Turkmenistan, all of which have burgeoning livestock industries.
This strategic pivot is supported by Kazakhstan's impressive capacity in feed production. The country’s 70 feed mills have a combined capacity of 4 million tons, and there is considerable scope to increase output to meet both domestic and international demand. Expanding feed exports could keep these mills operating at full capacity and drive significant economic growth.
Kazakhstan is well-positioned to benefit from the expanding trade dynamics within the SCO. China, the largest economy in the bloc, has seen its trade with SCO members almost double since 2010, reaching $19 billion in 2023. Kazakhstan itself set a new record for grain exports to China last year, shipping 2.2 million tons of wheat, barley, soybeans, flax, and sunflower seeds. This growing trade relationship underscores the potential for Kazakhstan to become a key supplier of feed to its SCO partners.
Addressing logistical challenges will be crucial to realizing this vision. The Kazakh Agricultural Minister highlighted the need for developing more efficient transport and logistics infrastructure to support the seamless flow of goods. By enhancing connectivity through multimodal transportation routes, Kazakhstan can ensure that its feed products reach new markets effectively.
Kazakhstan’s strategic focus on feed exports within the SCO reflects a positive and forward-looking approach to enhancing its trade capabilities. This initiative not only diversifies Kazakhstan’s agricultural exports but also strengthens its economic ties within the SCO. As Kazakhstan continues to build on its agricultural strengths and address logistical challenges, it is well on its way to becoming a pivotal player in the regional feed market.
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