Grain exports potential stands at over 10 million tons

Kazakhstan’s grain exports potential in the 2011-2012 marketing year will make up over 10 million tons, Agriculture Minister Assylzhan Mamytbekov told August 22. According to him, given the high harvest estimates, the country’s major grain regions lack of grain elevator capacities stands at 1.5-2 million tons. “In this context, grain should be moved from the Northern regions to other regions. This issue will be considered by an ad-hoc state committee”, the Minister said. Besides, the Minister said that in the current marketing year the government plans to purchase up to 5 million tons of grain into the state-run grain reserve. “The measure seeks to solve the issue of oversupply which otherwise would exert pressure on the market (…) This year the supply will exceed the demand”. According to him, the government plans to subsidize grain supplies towards Black and Baltic sea ports “to balance the market”. “The state will cover part of the expenses on railways transportation at $40 per ton”, the Minister said. Tengrinews.kz earlier reported that sky-high grain harvest estimate stands at about 22 million tons as of the end of July, citing the Kazakhstan’s Research Institute for Environmental and Climate Studies. According to the Institute, with favorable weather conditions in August and September the grain harvest can exceed the expectations, breaking the 2009 record. Agriculture Minister Assylzhan Mamytbekov told a briefing August 17 2011 that grain harvest in Kazakhstan would make up 18.9 million tons. Anna Buts, Head of the Crop Farming Development Department of the country’s Agriculture Ministry, had told journalists July 25 that grain harvest in Kazakhstan was expected to reach 16-17 million tons. The figure was raised to 17-17.5 million early August. She also told journalists July 14 that Kazakhstan had exported 5.9 million tons of grain in the 2010-2011 marketing year. According to her, this figure included grain equivalent of exported flour (2.5 million tons). Ms. Buts elaborated that grain was traditionally exported to Uzbekistan, Tajikistan, Afghanistan, Azerbaijan and Kyrgyzstan. According to the Government’s web-site, grain harvest in 2010 totaled 12.2 million tons (net weight). Grain harvest of 2009 made up 22.7 million tons (bunker weight).