19.01.2026, 15:07
Raw Material Challenge: Fufeng Group Plant in Zhambyl Region Begins Contracting Corn in Russia
Corn imports emerge as a response to raw material shortages for a new processing plant
To ensure full utilization of the new deep grain processing plant in Kazakhstan’s Zhambyl Region, Shengtai Biotech (a subsidiary of China’s Fufeng Group) has entered the Russian raw materials market. Contracting of corn for supplies to Kazakhstan has already begun in Russia’s Saratov Region.
The investor’s decision to turn to imports is driven by the current supply and demand balance in Kazakhstan. At present, domestic corn production volumes are insufficient to meet the rapidly growing needs of the project.
The investment project, valued at KZT 175 billion, continues to scale up operations in stages. While the planned processing volume for 2025 stood at 500,000 tonnes, the plant’s capacity is expected to double in 2026 to 1 million tonnes. Reaching a processing level of 3 million tonnes is planned from 2027 onward.
The facility is focused on producing high value-added products — amino acids, starch, and glucose — primarily for export to China and European countries.
The domestic market is currently unable to keep pace with the processor’s demand. Kazakhstan’s gross corn harvest, which remained at around 1 million tonnes in 2024, was fully absorbed by domestic consumption even before the plant reached full capacity.
The situation with carryover stocks also reflects a downward trend. As of early December last year, corn inventories in Kazakhstan were estimated at 269,000 tonnes, down from 302,000 tonnes in the previous period. Official final figures for the 2025 harvest are still pending, but the shortage in the region where the plant is located — Zhambyl Region — is already evident.
In response, Kazakhstan’s Ministry of Agriculture forecasts an expansion of corn planting areas in the coming season. This year, corn acreage is expected to increase by nearly 43,000 hectares, bringing the total planted area to 217,500 hectares.
Shengtai Biotech’s entry into the Russian market coincides with a restructuring of Russia’s export flows. Industry experts note that the Chinese processor operating in Kazakhstan could successfully replace Iranian counterparties, which previously purchased up to 70% of Russia’s export corn but have reduced activity due to logistical and economic challenges. As a result, the Kazakhstani plant is becoming a key alternative sales channel for farmers in the Volga region.
