Oil Crops Production is Actively Promoted in Kazakhstan

16 Jun 2010 • by Natalie Aster

Key products of Fat-and-oil industry are vegetable oil, margarine, cooking butter. Raw materials for these products are seeds and fruits of oil crops, including sunflower, soy, rape, safflower, maize, lint, etc.

Kazakhstan is a traditionally crop country. In 2009 just 5.5% of the total cultivation area was used for oil crops, that is 1.5% more then in 2007.

Major problems of Fat-and-oil industry in Kazakhstan are undersupply of raw materials (70-75% in 2007) and insufficient current assets. Today there are more than 300 Fat-and-oil companies active in the country. However only 70% of their production capacity is used due to insufficient reserves of raw materials.

Starting with 2008 Kazakhstan has been actively increasing production of oil crops, which is a result of favorable market conditions, namely the increasing vegetable oil prices.

Kazakhstan government stimulates and actively promotes oil crops production – they provide tax remissions and subsidies for POL, mineral fertilizers and crops protection agents, aid for processing plant leasing.

In 2010 1.4 mln ga is planned to be used for oil crops, that is 16% more than in the previous year.

Total consumption of Fat-and-oil products in Kazakhstan is estimated at the level of 400 thousand tons annually. In 2009 70% of internal demand for these products was covered by local production. Remaining 30% was covered by imported Fat-and-oil products from Russia and Ukraine.

According to FAO data, sunflower oil made up 60% of the overall volume of oil produced inside Kazakhstan in 2008, cotton oil accounted for 15%, soy and rape oil – 11% each.

Sunflower is cultivated on 60% of the oil crop cultivation area. In 2009 the production of sunflower oil started to grow. In comparison with 2008, it showed increase by 13.7%.

At the same time rape cultivation areas are being extended, this may be attributed to an increased demand for rape seeds as a raw material for biofuel. Domestic market demand for rape is modest. Major part of rape volumes produced in Kazakhstan is imported to Latvia, Russia and to Scandinavian countries (Finland, Denmark, Norway).

More information on Fat-and-oil industry of Kazakhstan may be found in the report Fat-and-oil industry in Kazakhstan: Business Report 2010 recently published by TD The Market Publishers, Ltd.

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