Kazakhstani oilseed processors enter the premium market of the Persian Gulf countries

The rise in oilseed prices has established these crops as the most profitable items in the crop rotation of Kazakhstani farmers. The current market conditions are encouraging the expansion of areas dedicated to sunflower, flax, and rapeseed, which in turn allows domestic processing enterprises to explore new export destinations. One of such steps was the participation of the National Oilseed Processors Association (NOPA) in the international exhibition GulFood-2026 in Dubai.

According to Yadykar Ibragimov, Chairman of the Association, operations in the Middle East are part of a strategy to diversify export channels. The market of the Persian Gulf countries is viewed as a promising platform for the sale of premium-quality sunflower oil. This year, the industry expects a significant update in its product range: several plants are launching the production of refined bottled oil, which will lead to the emergence of more than 15 new brands oriented towards international markets. In the medium term, Kazakhstani processors aim to become one of the top three global exporters of vegetable oil, and strengthening ties with Middle Eastern partners should facilitate the achievement of this goal.

A crucial aspect of entering the new region remains the establishment of logistics chains. It is planned to utilize multimodal routes, including the delivery of oils in containers across the Caspian Sea to the ports of Iran or Azerbaijan, with further transit to Arab states. Entering high-income markets is expected to have a direct impact on the economy of Kazakhstan's agricultural sector. Increased processing profitability will allow enterprises to offer farmers more competitive purchase prices for raw materials.

The association notes that expanding the geography of sales has already had a positive impact on the stability of domestic prices, reducing dependence on buyers from Central Asia. Currently, importers from China, Afghanistan, and neighboring countries in the region are competing for Kazakhstani products, which contributes to the formation of a fairer market value. The inclusion of the Middle East in this list will create additional advantages for domestic producers.

In addition to the main products, a new export commodity — granulated sunflower husk — was presented at the exhibition. This product, previously considered a production waste, is now being used as an organic fertilizer, biofuel, and substrate for mushroom cultivation. In recent years, demand for it has grown significantly: whereas previously the husk accumulated in plant warehouses, it is now actively exported to European Union countries, and delivery contracts for a number of enterprises have been signed several months in advance.