Food Corporation to Increase Funding for Oilseeds

In 2024, measures aimed at stabilizing the grain market have yielded significant results. The development of forward and direct grain procurement programs, as well as commodity crediting for agricultural producers, has helped increase government support for farmers. This was reported at a meeting chaired by Minister of Agriculture Aydarbek Saparov, where Chairman of the Board of JSC "NC Prodcorporation" Asylkhan Dzhuvashev shared key updates.

Forward Financing: Supporting Farmers with New Mechanisms
According to Dzhuvashev, the forward financing program for spring fieldwork in 2024 covered 324 agricultural enterprises in key grain-producing regions. The total allocated amount reached 42.3 billion tenge, while the average repayment rate of forward credits over the past three years was 94%, indicating the high efficiency of this mechanism.
In 2025, the program is set to relaunch with increased credit limits, particularly for oilseed crops, which are in demand on both domestic and international markets. A key innovation will be the introduction of an electronic application submission system, improving transparency and making financial resources more accessible to farmers.

Providing Seeds and Expanding Exports
A significant step in supporting agricultural producers in 2024 was the sale of food grain with deferred payment. Dzhuvashev noted that thanks to this initiative, agricultural enterprises in the Akmola, Kostanay, and North Kazakhstan regions received 39,000 tons of grain for sowing, covering approximately 400,000 hectares.
Alongside internal support, Prodcorporation is actively developing export operations. In 2024, the company signed contracts to supply 621,000 tons of grain worth 62.6 billion tenge. In 2025, the national operator plans to further expand export routes and scale up its initiative to consolidate grain export batches from small and medium-sized farmers.
"Prodcorporation will act as an agent in tripartite export contracts, enabling agricultural producers to secure better sales conditions and access international markets," Dzhuvashev emphasized.

New Opportunities for Farmers
Prodcorporation will take on key responsibilities, including logistics, export documentation processing, and quality control, mitigating risks for all market participants. Additionally, the company will continue developing deep grain processing projects in partnership with foreign investors.
The Minister of Agriculture has instructed the company’s leadership to accelerate the launch of forward purchasing programs and enhance efforts across all key areas. These measures aim to strengthen support for farmers, expand domestic production, and solidify Kazakhstan’s position in the global grain market.

Key Takeaways:
🔹 Forward Financing 2025: The program will relaunch with increased limits, especially for oilseeds. A significant update is the introduction of electronic applications for farmers.
🔹 Seed Supply Support: In 2024, agricultural producers received 39,000 tons of grain on deferred payment terms, enabling sowing on 400,000 hectares.
🔹 Export Growth: Contracts for 621,000 tons of grain have been signed. In 2025, Prodcorporation will expand export routes and help small and medium-sized farmers access global markets.