"Asia Grains & Oils Conference in Tashkent", Tashkent, Uzbekistan
Sep 8, 2021

Kazakh exporters to bear financial and reputational losses due to quotas on grain export




Kazakh exporting companies will bear both financial and reputational losses due to the implementation of quotas on grain export, declared Sergey Potapov, General Director at Viterra Kazakhstan LLP within Asia Grains&Oils Conference 2022 on April 7.

“Viterra Kazakhstan is currently in a very difficult situation, like many other large agricultural holdings, because we plan our work in advance. We had quite large volumes planned for sale in April, May and partially June. How can we fulfill our obligations under the conditions that were announced by the officials of Kazakhstan? We understand that we will not be able to perform the contracts, there will be losses, including reputational one”, – he explained.

According to S. Potapov, this decision is very harmful to business, given that the estimated grain stocks in Kazakhstan allow exporting.

“I can’t say that there were consultations with business community regarding this matter. It is not clear what algorithm was used to make decisions of this kind that affect the entire industry. It seems to me that this is a wrong strategic move”, – he summed up.
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