Wheat Marathon: Growth of Internal Transport in Kazakhstan, November 2023

 

November 2023 was marked not only by a significant increase in the volume of railway wheat transportation within the country compared to the previous year but also showed interesting dynamics within the month itself. The picture becomes even more indicative when looking at the percentage changes.

In the first ten days of November 2023, there was a noticeable jump in transportation volumes, a whole 49% more than in the same period of 2022. By mid-month, in the second ten days, the growth continued, though it was less dramatic – about 18.5%. In the final ten days, there was a renewed increase in activity, with a growth of 33.3% compared to the third ten days of 2022. This indicates the maintenance of high demand at the end of the month.

Particularly noteworthy is the consistent increase in transportation during November 2023. Starting from 62,084 tons in the first ten days, the transportation volumes reached a peak of 163,275 tons by the third ten days.

The significant growth in internal wheat transportation in Kazakhstan in November 2023 may be linked to several factors. Firstly, at this stage, the harvest was actively being completed, with about 11 million tons of wheat collected. Secondly, the strategy of Kazakhstan Temir Zholy (KTZ) for strict regulation of wheat export and import, including restrictions on Russian grain, led to a reorientation towards internal transportation. Thirdly, the Government of Kazakhstan, aiming to stabilize domestic wheat prices and support farmers, introduced measures that contributed to an increase in internal grain transportation. These factors collectively accounted for the increase in the volume of internal wheat transportation during the specified period.