China remains closed to Kazakh flour exporters: causes and solutions

🕒 Reading time: approximately 1 minute

China remains nearly inaccessible for Kazakh flour producers. The country refuses to grant import permissions without providing justifications. Flour processors note that responses from the Chinese side can take years, according to "APK News" agency. The main issues are logistics and bureaucracy. Today, the key challenge for processors is not production but delivering the goods to buyers. This issue was discussed during an agricultural sector council meeting in Kostanay Region.

Dulat Shayakhmetov, head of the milling complex Asaliya LLP, explained that exporting flour to China is almost impossible due to the complicated registration process in the Chinese importers' registry. The registry’s requirements are constantly being updated, creating new hurdles.

"We have everything we need: railway access, warehouses, container platforms. But even this does not guarantee permission to export our products to China," emphasized Shayakhmetov. He added that the Chinese side does not provide reasons for refusal, and waiting for responses takes years.

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Logistics Challenges

In addition to difficulties with exporting to China, processors are also facing issues with railway logistics. Duman Zhalkybayev, Deputy Director of Kostanay Branch of KTJ-GP LLP, suggested focusing on the markets of Central Asia and Afghanistan. However, demand for Kazakh products in these markets is currently low.

"China, despite its readiness to purchase products, remains closed due to delivery challenges. Last year, over 15,000 grain shipments were dispatched through the Kostanay branch, amounting to approximately 881,000 tons. But this is three times less than the actual demand," Zhalkybayev noted.

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Need for Government Support

Experts emphasize that resolving export issues requires government intervention. Svetlana Mikhaylenko, Director of the Agricultural Producers Association, stated that solving this issue necessitates not only international agreements but also clear mechanisms for their implementation.

"Without access to sales markets, producers cannot develop effectively, jeopardizing the entire agricultural sector in the region," she stressed.

Renat Davletpayev, Director of the Chamber of Entrepreneurs of Kostanay Region, summarized the council’s conclusions by noting that proposals from the agricultural sector will be sent to relevant government bodies to develop solutions.

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🔑 Key Takeaways:

🔹 China remains closed to Kazakh flour exporters due to complex bureaucratic registration processes and a lack of transparency in decision-making.

🔹 Logistics difficulties, particularly with railways, and reorienting towards other markets (Central Asia and Afghanistan) exacerbate export challenges, as Kazakh products are not in high demand in these markets.

🔹 Government support is essential to address these issues: establishing clear mechanisms for agreement implementation and improving logistics infrastructure for trade with China.