Grain Export: Is It Possible for Kazakhstan to Return to the European and African Markets?

Kazakhstan will need 32 billion tenge in investment to return to the European and African grain markets, which were lost over time. Access to these markets is currently economically unviable due to logistical challenges and strong competition from other countries.

 

Russia, as Kazakhstan's main competitor, dominates the global grain market due to its advantageous geographic location and high-quality product. As a result, Kazakhstan has been forced to focus on neighboring markets such as Iran, Azerbaijan, China, and Central Asian countries.

 

Access to European markets for Kazakhstan is only possible through Russian or Chinese territories, which involves significant costs for transportation and transit. One of the main risks lies in the fact that international discounts on transportation are granted on a reciprocal basis. If Kazakhstan asks Russia to lower the cost of grain transit through its territory, Russia may demand similar concessions, which could jeopardize Kazakhstan’s traditional export markets.

 

Kazakhstan's grain producers also see the need to expand logistical routes for exports to China and are calling on the government to subsidize transportation costs to increase competitiveness. Another challenge is Kazakhstan’s dependence on Russia’s pricing policy on international grain markets, complicating the country's ability to compete globally.