The central Asian country of Kazakhstan is the world’s eighth-largest wheat exporter, but its soviet-era agriculture industry lacks the ability to turn agriculture resources into cash. This is why when Chinese companies offered to invest 1.9 billion U.S. dollars to upgrade Kazakh food processing industry with 19 projects such as tomato, chicken and meat processing plants, the country saw hopes of adding lucrative value to its agriculture products to make up for losses due to low oil prices…Full Article: Xinhua May 2016

Key Point

  • This Chinese investment in Kazakhstan’s food processing industry is part of China’s “Belt and Road Initiative” (launched in 2013).

ChinaAg Comments

  • In April 2016, China’s Sinoma (China National Materials Group Corporation), a cement equipment and engineering company, will annually purchase agricultural goods (e.g. vegetable oil) from Kazakhstan. At the same, China announced it would construct a vegetable oil plant in northern Kazakhstan.
  • In March 2016, China imported 1,000 MTs of sunflower seed oil and 1,000 MTs of rapeseed oil from Kazakhstan by rail. Launched in late 2013, the Xi’an-Almaty cargo train route (~6 days) generally only carried goods from China to Kazakhstan, but has now begun shipping goods into China.
  • In January 2016, China’s COFCO Group announced it would construct tomato processing facilities in West Kazakhstan Region, East Kazakhstan Region, and Kyzylorda Region. Construction on the first factory will begin in 2016 and will have a tomato paste production capacity of 4,000 MTs per day.
  • In December 2013, the Zeleny corridor opened in Bakhty, East Kazakhstan Province and in its cross border checkpoint in Paikitu, Xinjiang Region, China. Additionally, Kazakhstan’s Akmola region [central Kazakhstan] planned to export 10,000 MTs of wheat to China by the end of the year. Kazakhstan expected to increase its wheat exports to China in the following years.
  • In the Autumn of 2013, Chinese President Xi Jinping launched The Silk Road Economic Belt and the 21st-century Maritime Silk Road, a strategic initiative to boost the economic development and trade of countries lying along the South China Sea, Bay of Bengal, Arabian Sea, Indian Ocean, and Red Sea, as well as overland in Central Asia and Europe.

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