Kazakhstan boosts oil products supply to China

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APK-Inform

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Kazakhstan is gradually recovering its position on the grain and oilseed market of China bouncing back after facing challenges in the past two "COVID" seasons. APK-Inform earlier reported about a substantial growth in the supply of Kazakh wheat and barley to the Chinese market last season.

This time we’ll summarize the results of Kazakh fat and oil products export to China in 2022/23 MY.

Notably, the supply of sunflower oil increased most significantly during this period, reaching 112.5 thsd tonnes. This is 2.3 times more compared to 2019/20 MY, 11.4 times higher compared to 2020/21 MY and 2 times more than in 2021/22 MY.

It's worth noting that there were no deliveries of meals in the past three seasons, whereas in 2019/20 MY, the export of this product to China amounted to 22.6 thsd tonnes.

However, active negotiations between relevant departments in Kazakhstan and China are currently underway to resume the export of meal (cake) from the Republic of Kazakhstan to China. So let's watch the situation.

In the 2022/23 MY, Kazakhstan has nearly recovered its rapeseed oil exports to China, reaching 41.1 thsd tonnes – a level comparable to the "pre-COVID" period. This represents a significant rebound from the 24.5 thsd tonnes recorded in the previous season and the minimal 4 thsd tonnes in 2020/21 MY.

Also, last season rapeseed meal supply was rather small (4.2 thsd tonnes). In contrast, there were no exports of this product to China in the preceding two seasons. At the same time, prior to the Covid-19 pandemic in 2019/20, Kazakhstan supplied China with more rapeseed meal than oil, totaling 50.6 thsd tonnes.

There is potential for increased rapeseed oil exports to China in the upcoming season. Notably, during a visit to Shanghai, Arman Shakkaliev, the Minister of Trade and Integration of Kazakhstan, signed a memorandum with the management of Fujian Jinhai Grain & Oil Co., Ltd., indicating efforts to boost the export of processed agricultural products, particularly rapeseed oil.

Among Kazakh fat and oil products, linseed oil remains an outsider in the supply to China. Although the volume of its exports in 2022/23 MY exceeded the previous season's figure (12.8 thsd tonnes against 8.4 thsd tonnes), it has yet to reach the levels observed in 2020/21 MY and 2019/20 MY (23.4 thsd tonnes and 26.4 thsd tonnes, respectively).

During the last season, the export of Kazakh flaxseed oil to China witnessed a remarkable surge, surpassing the 2021/22 MY indicator by 2.87 times, reaching 331.78 thsd tonnes. That is, against the backdrop of this substantial increase in the export of raw materials, the supply of flaxseed oil to China has significantly decreased.

According to the National Oilseed Processors Association, Kazakhstan holds a substantial potential for exporting vegetable oils and meal to China, estimated at $300 mln.

We will talk in more detail about the outcomes from the previous oilseed season and the outlook for the new one, as well as the production and export of the fat and oil products of Kazakhstan at the international conference Asia Grains&Oils Conference: Results of 2023, which will be held on December 5 in Almaty.


Hurry up to register!

Detailed agenda is available on the APK-Inform website.

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