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Kazakhstan to expand grain exports to Iran and China

Business Materials 24 April 2014 16:16 (UTC +04:00)
Kazakhstan diversifies grain export, preferring the Iranian and Chinese destinations, Managing Director - Commercial Director of JSC NC Food Corporation Nurbek Dairbekov said.

Astana, Kazakhstan, April 23
By Daniyar Mukhtarov - Trend:

Kazakhstan diversifies grain export, preferring the Iranian and Chinese destinations, Managing Director - Commercial Director of JSC NC Food Corporation Nurbek Dairbekov said.

"During the present marketing year, we will continue diversification of our export flows. We intend to expand exports to Iran and China," he said at a briefing held at the Central Communications Service under President of Kazakhstan.

Managing Director recalled that the commissioning of the new railway, which will connect the western regions of Kazakhstan through Turkmenistan to Iran, will contribute to the growth of exports of Kazakh wheat to Iran.

"In the current marketing year, we intend to export 14 per cent of our export potential to Iran," Dairbekov said.

The intensification of relations with China and the development of transport routes also lead to an increase in export volumes of Kazakh wheat from 1 percent in previous years to 4 percent this year, he said.

It is planned to consider the construction of grain terminals on the border of Turkmenistan and Iran, which will enhance the delivery. Also Food Corporation examines the development of grain terminals in the eastern direction, namely toward China, according to Dairbekov.

The traditional market of Kazakhstan includes Central Asian republics, as well as Afghanistan. These countries are the main markets for Kazakh grain, the volume of export amounts to 44-45 percent, the Managing Director said.

At the same time, the share of exports through transshipment ports in the Azov, Black and Baltic Seas will decrease from 19 percent (from 2009 to 2012) to 5 percent this year, he said.

"Entrance through Iran to the Persian Gulf opens the way to other countries in the region for Kazakh grain. And we can enter the market of South Korea and Indonesia through China," Dairbekov said.

Kazakhstan ranks seventh place in the world on grain export for the last five years, according to the managing director. "Gross grain harvest made up 18 million tonnes last year, 13.9 million tonnes of which consisted of wheat."

"Thus, the export potential of this year will be 9.5 million tonnes," he said.

Translated by S.I.
Edited by C.N.

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