27.08.2025, 18:31
Market Participants Proposed Prices to the Food Corporation for the New Harvest
A compromise will determine market stability
On the eve of the new grain procurement season, key players in Kazakhstan’s agricultural market have voiced their price expectations. The National Association of Exporters KazGrain and agricultural producers from Kostanay region have submitted their calculations for the new harvest to the Food Corporation.
The Exporters’ Association KazGrain sent an official letter to the Food Corporation, proposing to set procurement prices based on an analysis of current stocks, harvest forecasts, and the situation in export markets. According to exporters, the fair price for 3rd class wheat (gluten content 23–24%) should be 95,000 tenge per ton, including VAT. For high-quality hi-pro wheat (gluten content from 28%), a price of 115,000 tenge is proposed. The KazGrain proposal also indicated the following price benchmarks:
• 4th class wheat — 93,000 tenge (including VAT);
• 5th class wheat — 88,000 tenge (including VAT);
• 2nd class barley — 85,000 tenge (including VAT).
It is noted that these figures almost coincide with current quotations on the ETS commodity exchange, where the Food Corporation sells its own volumes of grain. However, the position of farmers is noticeably different. Earlier, the Association of Agricultural Producers of Kostanay region presented its own recommendations, which turned out to be about 15% higher than the exporters’ proposals. For example, for ordinary 3rd class wheat, farmers would like to receive at least 110,000 tenge.
Now the Food Corporation must find a compromise between two different approaches. On the one hand — exporters, who are interested in maintaining competitive prices on the world market. On the other — farmers, for whom the procurement price directly affects profitability and opportunities for development. The decision that the state operator makes will become an important indicator for the entire grain market of the country and will determine the financial well-being of the agricultural sector in the new season.
