Large Chinese companies have become interested in financing Kazakhstan's farmers. The food corporation held negotiations with representatives of influential Chinese companies. As we managed to find out, the National Company agreed with China to increase grain export volumes to 300 thousand tons per year, reports the APK News agency.
“In less than twelve months of 2023, Kazakhstan exported about 715 thousand tons of Kazakh wheat to China, which is almost 8 times higher than in 2022. In general, China is very capacious for the consumption of Kazakh agricultural products and there is a high interest on the part of Chinese partners in the supply of wheat, barley, flax and rapeseed. Based on the results of the negotiations, the Food Corporation intends to increase the volume of wheat shipments to China to 200-300 thousand tons annually,” the Food Corporation said in response to a request from the APK News agency.
Agreements were also reached on forward financing of agricultural producers in Kazakhstan through foreign investment with guaranteed shipment of products to China.
“A forward contract is the most profitable instrument for both the buyer and the seller. Agricultural producers are given the opportunity to obtain financing before sowing. Guaranteed supplies of products are provided to the buyer. As a result of the negotiations, a fundamental agreement and understanding of the feasibility of using the forward financing mechanism was reached for all parties. It is worth noting that at subsequent stages of negotiations the range of issues discussed will be more detailed; it is necessary to reach agreements on the volume of supplies of agricultural products and amounts of financing,” the Food Corporation clarified.
When asked whether China will purchase non-grade grain, the Food Corporation reported that work to find partners for the export of Kazakhstani non-grade wheat continues.
“The issue is quite complex, but work in this direction also continues with Chinese partners,” the corporation emphasized.
We were also informed that China plans to invest in processing projects in Kazakhstan. First of all, the partners are interested in organizing oil processing enterprises.