Kazakhstan Lowers Main Exports on Sunflower but Grows Its Oil Export
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The Sunflower Oil production in Kazakhstan amounted to 197.3 thousand tons in January-May 2022, up 30% year-on-year. Of these, unrefined Sunflower Oil accounts for 131.4 thousand tons, an increase of 61.3% compared to January-May 2021. Refined Sunflower Oil accounted for 65.9 thousand tons, 7% less than last year.
Almost 78% of the production of unrefined Sunflower Oil was produced in the East Kazakhstan region alone (102.2 thousand tons). In turn, 78% of the output of refined Sunflower Oil fell on the East Kazakhstan region (28.7 thousand tons) and Shymkent (22.6 thousand tons).
The Ministry of Agriculture of the Republic of Kazakhstan has introduced restrictions on the export of Sunflower Oil until August 31, 2022, to stabilize prices and prevent a shortage in the sector. The quota for the export of Sunflower Oil from June-August of the current year is 68 thousand tons, and for the period of the quota, an allowable monthly limit for one applicant is set, which in all does not exceed 6 000 tons.
Meanwhile, domestic enterprises provided 83.5% of the total demand for Sunflower Oil (sales on the domestic market plus exports) from January-April 2022. The production volume in this period amounted to 149.1 thousand tons, 17% more than last year. Imports accounted for 29.4 thousand tons, up 30% year-on-year. Moreover, 66.3 thousand tons of Sunflower Oil were exported, which is immediately 71.3% more compared to the same period in 2021. As a result, 112.2 thousand tons of Sunflower Oil were sold on the domestic market.
In parallel with the export rise, the export of sunflower seeds is falling; Kazakhstan has exported more processed products instead of “simple seeds.”. Kazakh Sunflower Oil export sales hit US$116 million in 2021, up 10% year-on-year, while Sunflower seeds export sales fell to US$70 million, down 15%, year-on-year.
China is the leading foreign buyer of Kazakh Sunflower Oil. In the first 4 months of this year, exports there grew almost 6 times to US$40.3 million. Also, exports to Afghanistan increased fivefold, to US$13.7 million. New markets have also emerged. These are, for example, Turkey with US$5.4 million, Germany with US$198 thousand, and Lithuania and Latvia with US$154 and US$105 thousand, respectively. Georgia, the Czech Republic, and Turkmenistan are also on the list.
Continued Price Increase
The increase in exports is supported by two factors – a rise in prices and an increase in production. Thus, the average export price for Kazakh Sunflower Oil, over the past year, increased by a quarter – from US$1,094 per ton to US$1,363.
Prices for Sunflower Oil in the Republic of Kazakhstan are increasing without a tendency to retreat from the growth dynamics for 27 months. According to the results of May, the price of oil rose by 0.8% over the month and immediately by 20% over the year.
Among Kazakhstan regions, the most significant rise in prices over the month was recorded in Zhambyl (3.6%), Karaganda (2.2%), and Aktobe (1.9%). Over the year, the most significant rise was recorded – in Almaty (by 26. 4%), Pavlodar (26.2%), and Zhambyl (26.1%) regions.
The average price for Sunflower Oil in the cities of the Republic of Kazakhstan in May this year amounted to 808 tenges per liter. The highest prices were recorded in Atyrau (859 tenge per liter), Almaty (850 tenge per liter) and Aktau (841 tenge per liter), the lowest in Semey (714 tenge per liter), Petropavlovsk (728 tenge per liter), and Ust-Kamenogorsk (737 tenge per liter).
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