Kazakhstan and China signed $160 million in agreements July 11 during the Kazakh-Chinese Agriculture Investment Forum held as part of a two-day visit to the capital by Chinese Minister of Agriculture Han Changfu at the invitation of the Kazakh Agriculture Ministry. The forum brought together more than 100 business, education and science representatives from both nations…Full Article: The Astana Times July 2017

Key Point

  • According to Kazakhstan’s Deputy Agriculture Minister, as a result of the agricultural agreements, Kazakstan will supply 200,000 MTs of grains and 100,000 MTs of oilseed crops to China. In addition, a grain storage terminal will be constructed at the Kazakh-Chinese border, Kazakh AgroTechnical University and China’s Northwest University of Agriculture and Forestry may establish an agricultural technology park, and Kazakhstan’s Zhannur-Astana (state owned) and the China’s Tianyang Yinhai Seed will cooperate on seed production.

ChinaAg Comments

  • In April 2017, Chinese inspectors (MDQSQ) visited Kazakhstan to evaluate chilled lamb exporters.
  • In March 2017, China (AQSIQ) and Kazakhstan (Ministry of Agriculture) signed a phytosanitary agreement relating to wheat bran. As a result of the agreement, in 2017, Kazakhstan will export 60,000 MTs of (wheat, cereals) bran to China from the northern regions of Kostanay and North Kazakhstan.
  • In February 2017, Kazakhstan exported 720 tons of wheat to Lianyungang Port, Jiangsu Province, eastern China.
  • In December 2016, Kazakhstan and Israel signed a MoU on the construction of a poultry processing plant. China had reportedly pre-ordered enough poultry meat from the Kazakh-Israeli factory to cover five years’ worth of demand/factory operations.
  • In November 2016, China’s Asia Pacific Food Capital (APOFCO) and KAZNEX INVEST signed a MoU on the establishment of a ~US$3 billion joint agricultural investment fund. During the same month, the Ürümqi-Almaty cargo route was increased to daily service. Lastly, according to an official from Kazakhstan’s National Chamber of Entrepreneurs, 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. During the summer of 2016, AQSIQ inspectors visited apiaries in East Kazakhstan Region (borders China).
  • 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 May 2016, freight train service from China’s Ürümqi to Kazakhstan’s Almaty (aka Alma-Ata) began operating once a week.
  • 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.
  • In 2014, China’s Xinjiang Region opened its Alashankou integrated free trade zone on the Kazakh border. In August 2016, an Almaty-based edible oil processor reportedly began operations in the Alashankou FTZ. In May 2017, the Xinjiang-based Ruijiang Cereals and Oils company signaled they may expand into the FTZ.
  • 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 June 2013, Kazakhstan’s beef industry suffered from a foot-and-mouth disease outbreak, derailing the prospects of supplying the Chinese market.

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