Ministry of Agriculture of Kazakhstan activates last year’s grain export, regardless of the economic losses, as usual, not theirs. Who is not hidden, Ministry of Agriculture is not guilty

Новость на Казах-зерно:

In Kazakhstan time of great spring sowing in the northern regions of the country is approaching. As always, this sowing, and then fall harvest grain, determines the food balance of the republic and its food security. A very short period of time has passed, and time has shown that the agricultural direction has been chosen correctly, and financial resources invested in this sector, are beginning to yield results. Everything is good, but then wehad a record harvest that knocked down all the rosy figures.

On April, 20 a representative forum was held in Petropavlovsk. Among other issues discussed at the meeting as a refrain sounded the theme of financial rehabilitation of farmers who have been driven into debts and are living from loan to loan as a bad head of the family from salary to salary. Each year, the entire surplus value obtained by back-breaking toil, goes into a bottomless banking sector and the farmer again and again line up a little to bank window for a new cash injection. All this is sad, because a worker is unable to expand and modernize its farm, writes IA “Kazakh-Zerno”. But about this we will tell below.

But at first, let’s talk about the good things. In the previous article we talked about the directions of Kazakhstan’s grain exports. The choice is made. The  efforts of the country will be aimed at strengthening export infrastructure in the direction of Iran. The National Grain Company of Kazakhstan “Prodcorporation” rented the land for the construction of grain elevator in Iran, said the President of Grain Union of Kazakhstan Nurlan Tleubayev.

And here is relatively recent information in the same direction. In the next two months the Kazakh-Iranian intergovernmental commission will consider issues of purchase and transit of Kazakh grain. This was announced by Deputy Minister of Foreign Affairs of the Islamic Republic of Iran Seyed Abbas Arakchi at a press conference at the Embassy of the IRI in Kazakhstan.

“In recent years Iran was one of the regular customers of Kazakhstan in the field of grain purchases. Taking into account the need and demand for grain which appeared in Iran, we will continue to purchase grain from Kazakhstan in one form or another”, said S.A.Arakchi.

According to him, the volume of purchases of grain can be affected by a variety of factors, including price. S.A.Arakchi reminded that a preliminary agreement on construction of Kazakhstan’s grain terminal in Iran was reached with Kazakhstan.

We remind that Iran took the 4th position in the list of importers of Kazakhstanian grain in March. According to the Customs Committee, the Republic imported 68,841 tons of grain worth of $ 15,285,152 or 10% of the total volume of Kazakhstanian grain exports (total list, see below).

Kazakhstan

As it was reported earlier, on April, 20 a representative forum was held in Petropavlovsk. There was a meeting on development of agriculture of North-Kazakhstan region with the participation of the Deputy Prime Minister of the Government of Kazakhstan Serik Akhmetov. The theme was “On the orderly conduct of the spring field work.”

The meeting was attended by Minister of Agriculture of Kazakhstan Asylzhan Mamytbekov, President of Grain Union of Kazakhstan Nurlan Tleubayev, representatives of the Ministry of Agriculture, KazAgro and its agencies, specialists, meteorologists and farmers.

A lot of words, caressing the ear were said at the seminar-meeting. For example the chairman of the Board of the National Holding “KazAgro” stated about construction by 2013 in Kazakhstan 15 modern granaries, 7of which will be situated n the North-Kazakhstan region. The fact that they had to be built yesterday – is another matter.

The speakers included meteorologists and agronomists. The first reassured the audience that the rainfall for planting will be at a level slightly below average, which in principle will not affect adversely on the germination of seeds. The latter also warned farmers that last year’s bountiful harvest has taken out a large number of valuable substances – phosphate, nitrogen and potassium- from the soil. They recommended paying a lot of attention to fertilization of the soil this year. The main vector of agronomic concern this year will be struggle to maintain moisture and debris of fields.

After listening to all the speakers, Serik Akhmetov has summed up the meeting. Noting the high potential of the North Kazakhstan region in the agricultural sector, he nevertheless noticed that we cannot stop the progress. The first and main goal is improving the competitiveness of both the production processes and final products in the open market. This task is assigned by the Head of country. And by the way, the prosperity of Kazakhstan and all its society will depend on how we will carry out this task, stressed Serik Akhmetov.

He also noted the importance of diversification of crops, infrastructure of agribusiness and its marketing component.

Meanwhile, the current affairs in the industry are solved, not as fast as we would like. Grain balance is still excessive. As of April 1, there were 16,104,812 tons of grain legumes in Kazakhstan. The structure of grain stocks looks as follows: wheat – 14,985,171 tons, or 93% of the total amount. Of the total wheat the majority accounts for food wheat – 12,896,521 tons (80%); 236,163 tons – feed wheat and 1,852,487 tons are allocated for seeds. As of April, 1 there were 709,474 tons of barley, or 4.4% in Kazakhstan.

We remind that balance exceeds last year’s at the same period almost 2.2 times. In Kazakhstan, as of April 1, 2011 there were 7,379,454 tons of grain legumes. Even last year to July 1, 2011 in Kazakhstan remained 3,462,851 tons of grain and they had to take it out into the regions of the country throughout September and October. What can we say about the situation this year?

Asylzhan Mamytbekov at a press conference in Astana said that by the time the new crop harvest in the granaries of the country will be up to 7 million tons of grain from the previous season! In our opinion, this figure is significantly understated. If according to the statistics data, on April 1, in Kazakhstan there were 16.1 million tons of grain, then there is no possibility to take out the 9 million for the remaining months before the harvest. In the first three months KTZ has shipped only 3.8 million of grain. However, only 2.7 million was taken out of the country.

According to the President of Grain Union of Kazakhstan, which he expressed at the meeting, loading elevator before the new crop harvest will be about 60%. We should only pray, as there were no more.

Новость на Казах-зерно:The maximum volume of export – 1 million tons of grain per month. The present state of infrastructure, where the main gap is the lack of grain cars, does not allow exporting more. Office is desperately trying to reverse the situation. As always, it is obtained only at the expense of other market players.

As reported above, the National Company “Kazakstan Temir Zholy” summed up the shipment of grain for export in the first three months of 2012. During January, February, March 3.8 million tons of grain was shipped from Kazakhstan. Of the total amount of grain shipped 1.1 million tons (187% in 2011) – was directed to the regions of Kazakhstan, 2.7 million tons (629% to 2011) were shipped for export.

Here are customs figures for shipping grain for export in March

Gr17a Digital code of the country

Gr46 Statistical value of goods, $

Gr38 Shipping Weight Net (kg)

Percentage by weight

Uzbekistan

15 837 428

110 791 288

16%

Azerbaijan

14 476 401

92 471 355

14%

Tajikistan

14 467 107

86 491 922

13%

Iran

15 285 152

68 840 619

10%

UAE

11 850 484

54 582 150

8%

Turkey

8 150 213

37 672 450

6%

Yemen

8 232 747

35 926 367

5%

Kyrgyzstan

4 859 792

34 066 749

5%

Lithuania

6 420 270

33 672 000

5%

Georgia

4 267 262

29 266 896

4%

Afghanistan

35 794 510

29 207 560

4%

Belgium

8 219 337

24 511 130

4%

Egypt

3 622 318

17 669 296

3%

Latvia

4 014 707

10 992 000

2%

China

632 194

3 367 000

1%

Germany

848 981

1 751 030

0%

Turkmenistan

133 871

540 000

0%

Poland

91 404

201 910

0%

Netherlands

14 560

40 000

0%

Austria

6 296

19 980

0%

The overall result

157 225 033

672 081 702

 

The results of grain and flour shipments for 23 days in April, as well as the current situation of transporting these goods were discussed in the JSC “NC” Kazakstan Temir Zholy “.

And now about the prices of grain and flour In the market of cash sales of grain and flour for the period from March, 30 to April, 26 prices of wheat in Kazakhstan decreased for about 300 – 400 tenge per ton in the different regions of the country.

Dollar fell slightly against the tenge. Price of barley almost has not changed, but the barley is grown in an dollar equivalent due to its weakening against the tenge for the period.

At the same time the price of flour significantly dropped as a result of excess supply in the market. They fell in regions depending on the variety and district of distribution from 3500 to 4000 tenge per ton.

Новость на Казах-зерно:Currently, you can buy wheat of 3 class from new harvest in Astana for 23,900 tenge ($161.8) per ton. It is 330 tenge lower than in the end of March. First-rate flour in the capital of our country costs 36,800 tenge ($249.2) per ton – the decrease was for 4000 tenge. Second-rate flour is sold by 32,900  tenge ($222.8) per ton, and flour of extra class – by 40,400 tenge ($273.6)  per ton.

As of April 26, a ton of wheat of 3 class can be purchased for 23,200 tenge ($ 157.1), wheat with gluten content above 27 percent – for 26,100 tenge per ton ($ 176.7), barley of a 2 class now costs 22,630 tenge per ton in Akmola region. Flour of extra class costs 40,000 tenge ($ 270.9), first- and second-rate flour is offered at 36,000 tenge ($243.8) and 33,300 tenge per ton ($ 225.5), respectively.

In the North Kazakhstan region wheat of 3 class is sold by 22,500 tenge ($ 152.4) per ton, wheat with gluten content above 27 percent – by 24,700 tenge ($167.4) – decrease for 400 tenge. The current price of barley is 22,100 tenge per ton ($149.7). In the North Kazakhstan the price of flour of extra class is 38,600 tenge per ton- minus 3500 tenge ($261.4), first-rate flour costs 34,800  tenge ($235.7) and second-rate flour costs 31,500 tenge per ton ($213.4).

In Kostanai region the price of wheat of 3 class over the past 3 weeks has dropped to the level of 22,700 tenge per ton ($ 153.7). Wheat with gluten content above 27 percent is sold by 25,500 tenge ($172.7). The price of barley of 2 class is 21,800 tenge ($147.6) per ton. The market price of flour of all classes also went down. The average price of flour of extra class is 38,800 tenge ($262.8) a ton, first-rate flour costs 39,500 tenge ($ 266.8) a ton, second-rate flour costs 31,900 tenge ($216) a ton.

In Pavlodar region the price of wheat of 3 class is 23,700 tenge per ton, or $ 160.5 per ton. The price of barley is 24,000 tenge ($ 162.6) per ton. Flour of extra class costs 40,900 tenge ($277) per ton, first-rate flour costs 36,600 tenge ($247.9) per ton, second-rate flour costs 34,000 tenge ($ 230.3) per ton.

In Karaganda region wheat of 3 class costs 25,300 tenge ($171.3) per ton, wheat with gluten content above 27 percent costs 26,600 tenge ($180.2) per ton. The price of barley is 23,700 tenge ($160.5) per ton. In Karaganda, traders sell flour of all rates at the following prices: first-rate – 37,000 tenge ($250.6) per ton, second-rate – 33,800 tenge ($ 228.9) per ton and extra class – 40,500 tenge ($274.3) per ton.

Over the past period the cost of wheat in the East and West Kazakhstan went down. The price of wheat of 3 class in EKR is 23,800 tenge ($161.2) per ton, barley- 22,830 tenge ($154.6) per ton. In the West region of the country the price of wheat of 3 class fixed at 24,800 tenge ($168) per ton. The cost of first-rate flour in East Kazakhstan is 36,300 tenge ($245.9) per ton, second-rate flour costs 33,400 tenge ($226.2) per ton, and flour of extra class – 40,500  tenge ($274.3) per ton. In the West Kazakhstan prices for flour are the following: first-rate – 37,300 tenge ($252.6) per ton, second-rate – 34,400  tenge ($233) and extra class – 40,400 tenge ($273.6) per ton.

In Almaty region the price of wheat of 3 class for today is offered by 25,100 tenge ($170) per ton, barley of 2 class is sold by 23,500 tenge ($159.2) per ton. The cost of flour of extra class in this region is 41,200 tenge ($279) per ton, first-rate –37,900 tenge ($256.7) per ton, second-rate – 34,500 tenge ($233.7) per ton.

In Zhambyl region the price of wheat of 3 class for today costs 25,100 tenge ($170) per ton, barley of 2 class is sold by 24,100 tenge ($163.2) per ton. The cost of flour of extra class in this region is 40,800 tenge ($2763) per ton, first-rate –36,500 tenge ($247.2) per ton, second-rate – 34,600 tenge ($234.4) per ton.

In the South Kazakhstan region wheat of 3 class is offered by 25,400 tenge ($172) per ton, barley – by 22,600 tenge ($153) per ton. The cost of flour of extra class in this region is 41,300 tenge ($279.7) per ton, first-rate – 38,500 tenge ($260.8) per ton, second-rate – 34,800 tenge ($235.7) per ton.

In Aktobe region wheat of 3 class is offered by 25,500 ($172.7). Flour of extra class can be purchased for 41,800 tenge ($283.1) per ton, first-rate – 38,100 tenge ($258) per ton, second-rate – 35,100 tenge ($237.7) per ton.

In Kyzylorda region wheat of 3 class is sold currently at 24,900 tenge ($168.7) per ton. The cost of flour of extra class is 43,500 tenge ($294.6) per ton, first-rate – 39,500 tenge ($267.5) per ton and second-rate – 37,000 tenge ($250.6) per ton.

In the south capital, Almaty, you can buy wheat of 3 class by 25,500 tenge ($172.7) per ton. Flour of extra class costs in Almaty 42,700 tenge ($289.2) per ton, first-rate – 40,000 tenge ($270.9), and second-rate – 36,500 tenge ($247.2) per ton.

The dynamics of grain and flour prices on export boundaries of the republic repeats the tendencies of local market. Wheat of 3 class decreased by about $ 5 per ton. Wheat with higher gluten content has fallen even lower by about $ 8 per ton. Barley almost has not changed in price, but mostly has decreased the price of flour. The level of prices fell by 30 – $ 70 at various border crossings in the light varieties of flour. As mentioned above, this trend is due to an increased supply of flour.

Prices of Kazakhstan wheat, barley and flour on the export the borders of the Republic were formed as follows:

The cost of wheat of 3 class with gluten content of 23 percent on DAP terms at the station Lugovaya (Kazakhstan – Kyrgyzstan) is $195 per ton, with gluten content of 27-30 percent – $207 per ton. Barley costs $174 per ton. Flour of extra class is sold by $288, the cost of first-rate flour is $258 and the second-rate -$234 per ton.

At the elevators of the South Ural railway the current cost of wheat of 3 class is $ 170 a ton, wheat with gluten content above 27 percent – $186. The price of barley there is $149 per ton. Flour of extra class can be bought by $271, first-rate flour is $245 and the second-rate -$198 per ton. This is about $20 above the prices at the end of March.

At the station Sary-Agash (Kazakhstan – Uzbekistan) wheat of 3 class costs $196, wheat with gluten content above 27-30 percent – $220. The price of barley there is $179. Flour of extra class can be bought by $287, first-rate flour is $255 and the second-rate -$234 per ton.

At the station Tobol (DAP) wheat of 3 class costs $185, wheat with gluten content above 27-30 percent – $197. Barley is sold by $149 per ton. Flour of extra class can be bought by $264, first-rate flour is $243 and the second-rate -$212 per ton.

Новость на Казах-зерно:At the station Amuzang (Uzbekistan – Tajikistan, CPT) – the cost of wheat of 3 class is fixed at $246 per ton; wheat with gluten content above 27-30 percent is sold by $258 per ton. Flour of extra class is offered by $325, first-rate flour is $306 and the second-rate -$266 per ton.

The average price of wheat of 3 class at the the station Hajraton (Uzbekistan – Tajikistan, CPT) is $253 per ton; wheat with gluten content above 27-30 percent is sold by $252 per ton. Barley can be bought by $239 per ton. Flour of extra class is offered by $343, first-rate flour is $313 and the second-rate – $291 per ton.

At the station Sarahs wheat of 3 class on the CPT terms is sold by $258 per ton; wheat with gluten content above 27-30 percent is sold by $263, barley – $254. Flour of extra class is sold by $350, first-rate flour is $323 and the second-rate – $295 per ton.

Reference: $1 = 147.75 tenge, 1 euro = 195,28 tenge, 1 ruble = 5,04 tenge, 1 som = 3.15 tenge, 1 pound sterling = 237.64 tenge, 1 hryvna  = 18,40 tenge.


Alimbek Gabitov

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