Why Is It Necessary to Develop Deep Grain Processing in Kazakhstan?
Why Is It Necessary to Develop Deep Grain Processing in Kazakhstan?
Kazakhstan, a global leader in wheat production, has immense untapped potential for deep grain processing. This sector presents opportunities to diversify the economy, increase export value, and align with global demand for high-value agricultural products. (Source: Kazakh Invest National Company of Kazakhstan.)
Key Reasons to Develop Deep Grain Processing
Global Leadership in Wheat Production
Kazakhstan ranks among the top wheat producers globally, cultivating 12 million tons annually.
However, less than 3% of this wheat is currently processed, leaving significant growth potential.
High Value-Added Products
Deep grain processing can produce over 200 products, including bioethanol, starch, gluten, glucose, and citric acid.
Processed products can be up to 20 times more valuable than raw wheat, offering significant export potential.
Competitive Pricing
Kazakhstan’s wheat prices are among the lowest globally, making it an ideal hub for cost-effective processing.
While export prices for raw wheat average $250/ton, processed goods can reach values of $2,000/ton or more.
Economic Potential
The deep grain processing industry is valued at over $10 billion, offering lucrative opportunities for investment and growth.
Analytical Insights
Export and Market Opportunities
Kazakhstan’s processed grain products have high demand in global markets:
EU: A key market for starch, gluten, and glucose.
Turkey and GCC: Growing demand for bioethanol and citric acid.
CIS: Strong need for compound feed and biopolymers.
Potential Products and Their Applications
Bioethanol: Renewable energy and industrial fuel.
Gluten and Starch: Essential for food production, pharmaceuticals, and bioplastics.
Citric Acid and Glucose: Crucial for food and health industries.
Lysine and Glutamic Acid: Vital for agriculture and dietary supplements.
Government Support
The development of deep grain processing aligns with Kazakhstan’s strategic goals to:
Diversify the economy by fostering non-resource-based industries.
Boost exports of high-value, processed products.
Provide investment incentives, including tax benefits and infrastructure support.
A New Horizon for Israeli Expertise
With its renowned experience in agribusiness innovation, Israel has significant potential to contribute to Kazakhstan's deep grain processing industry.
Israeli technologies in precision agriculture, bioethanol production, and advanced grain processing can boost efficiency and profitability.
For Israeli businesses, this represents a unique investment opportunity to collaborate with Kazakhstan by leveraging its abundant raw materials and government support.
Together, by combining Kazakhstan’s vast potential with Israel’s expertise, we can foster sustainable development and mutual economic growth.