Kazakhstan and China intend to create a joint agricultural investment fund [~US$3 billion], Kazinform reports. Creation of the Kazakhstan-Chinese investment fund in the field of agricultural industry is provided by the Cooperation Memorandum between JSC National Export and Investments Agency KAZNEX INVEST of the Ministry for Investments and Development of the RoK and Asia-Pacific Food Fund (APOFCO)…Full Article: Inform.kz Nov 2016

Key Point

  • China’s APOFCO corporation is comprised of 12 [grain trading] companies and has reached agreements with Ukraine and Russia.

ChinaAg Comments

  • In November 2016, an official from Kazakhstan’s National Chamber of Entrepreneurs remarked that China had lifted restrictions on Kazakh beef exports from nine regions. The official also noted that 1,500 honey farmers (apiaries) in East Kazakhstan Region have formed a cooperative and may begin exporting honey to China in the future.
  • In August 2016, Kazakhstan Potash Corporation (KPC) and Chongqing Agricultural Production Material Group agreed to form a fertilizer joint-venture in Chongqing. As a result of the JV deal, Chongqing will import Kazakh potash by rail (Chongqing-Xinjiang-Europe route). The potash will be sold throughout southwestern China, as well as exported to Japan and Southeast Asia.
  • In July 2016, Kazakhstan’s Maslo-Del LLP planned to increase its exports of sunflower oil China from 4,600 MTs in 2015 to 10,000 MTs in 2016.
  • In April 2016, China’s Sinoma (China National Materials Group Corporation), a cement equipment and engineering company, announced it would 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.
  • Founded 2015 and headquartered in Beijing, Asia Pacific Food Capital (APOFCO) is a state-sponsored grain trading corporation.
  • 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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