- Mr. Ibragimov, in recent years we’ve seen steady growth in Kazakhstan’s oil and fat industry. What have been the key drivers behind this expansion?
- Today, the fat and oil sector is the most rapidly developing branch of Kazakhstan’s agro-industrial complex (AIC). The Head of State has prioritized the development of the AIC, setting specific goals such as diversifying crop areas toward higher-value agricultural products, doubling non-resource exports by 2025 (the fat and oil industry has already met its export targets in 2024), minimizing the country’s dependence on imported food products, and curbing inflation.
The main driver of growth has been a comprehensive approach—government support for the agro-industrial complex combined with NOPA effective strategy for developing the fat and oil industry. Over the past five marketing years, production of vegetable oils and high-protein feeds such as meal and cake has increased by 107%, exceeding 1.5 million tons last season. In addition, we succeeded in stabilizing retail prices for bottled oil and animal feed in the domestic market, which has played a crucial role in containing inflation.
- How has Kazakhstan’s role in the global oilseed processing market changed in recent years?
- If we look back just a few years, Kazakhstan was still a net importer of oil and fat products. Today, we are witnessing a profound transformation: the country has confidently joined the ranks of major producers and exporters. This is the result of consistent, coordinated efforts by both the government and the private sector. Kazakhstan now has the potential not only to secure this position but to strengthen it significantly.
By the end of 2024, Kazakhstan’s agro-industrial exports reached $5.1 billion, with 52% coming from processed goods. The fat and oil sector accounted for roughly a quarter of that total, underscoring its strategic importance. Kazakhstan is now among the world’s top 10 exporters of sunflower oil, ranking 8th for the 2023–2024 season. This year, according to our estimates, the country will climb two more positions to 6th place globally. At the same time, Kazakhstan is among the top three suppliers of sunflower meal to the European Union.
- Which markets remain the most important for Kazakhstan’s oil and fat exports?
- Kazakhstan’s fat and oil products are in high demand globally and possess enormous growth potential. Our primary export destinations include China, the countries of Central Asia, the Middle East, the South Caucasus, and the European Union. China alone imports around 18 million tons of fat and oil products annually. The combined capacity of these markets totals roughly 43 million tons per year—32 times Kazakhstan’s current export volume. The potential is vast, and we are working actively to realize it.
- And what about regional exports, particularly to Central Asian countries?
- We have become the regional leader. In 2024, Kazakhstan became the main supplier of vegetable oils to Uzbekistan and Tajikistan, surpassing Russia, which had previously dominated this market. Kazakhstan’s share in the Uzbek oil market reached 65% (compared to 13% in 2017), and in Tajikistan, it climbed to 74% (up from 15% in 2017). We fully supply Central Asia with sunflower meal and cake—critical resources for the sustainable development of poultry and livestock farming. Moreover, Kazakhstan’s current sunflower oil exports are one and a half times higher than the region’s total consumption, meaning that if needed, the country could fully meet Central Asia’s demand.
- What goals does the industry aim to achieve?
- Today, Kazakhstan’s fat and oil products are exported to more than twenty countries.
Our main objective is to enter the world’s top three exporters of sunflower oil, which would increase foreign exchange earnings to $2 billion.
This goal is entirely achievable for several reasons. First, Kazakhstan’s sunflower processing capacity already exceeds 4.2 million tons per year, with the potential to reach 5.5 million tons within the next two to three years. Second, there is considerable potential to expand sunflower planting areas to over 4 million hectares nationwide, based on the scientifically justified crop rotation norm of 17% (and in our case, it could reach 20%, compared to the current 7%). Third, the transition to deep processing will diversify the product range and open new markets for higher value-added products, enhancing both the competitiveness and sustainability of the sector.
Expanding sunflower cultivation to 4 million hectares and processing the resulting harvest will allow us to increase sunflower oil exports to 1.5 million tons per year. By international standards, this would firmly position Kazakhstan among the world’s top three suppliers. Currently, Russia and Ukraine occupy the top two spots, and Kazakhstan has every opportunity to claim third place.
- What steps are being taken to improve export performance?
- During the 2024/25 season, exports of vegetable oils and meals and cakes increased by 31% in physical volume, surpassing 1.327 million tons, while foreign currency revenue rose by 49% to reach $837 million. This significant increase in export revenue demonstrates that diversification of sales channels helps offset price-dumping risks in export markets and enables the sale of processed products at higher prices—thanks to flexible market selection, faster delivery, and consistent quality.
To fully realize this potential, we have developed a roadmap for the development of fat and oil exports for 2026–2028 in partnership with the International Trade Centre (ITC) and QazTrade, in cooperation with the Ministry of Agriculture of the Republic of Kazakhstan, the Ministry of Trade and Integration, and JSC NC Kazakhstan Temir Zholy (KTZ). According to this plan, the sector’s export revenue will exceed $1 billion by 2028.
Our key goal in export development is to sell vegetable oils and meals and cakes at the highest possible prices. To achieve this, NOPA is also investing in logistics improvements. For instance, in cooperation with KTZ, we optimized scheduling and coordination of railway shipments of vegetable oils to China. In September of this year, we successfully implemented a pilot project to export vegetable oil in 40-foot containers equipped with flexitanks from East Kazakhstan to eastern China. The shipment covered 4,700 kilometers in 12 days—three to four and a half times faster than deliveries via Black Sea ports. KTZ’s efforts to enhance logistics have given us a competitive advantage: in times of market volatility, Chinese buyers are more likely to choose a Kazakh supplier.
In addition, we are exploring the establishment of a transshipment facility for vegetable oils at the Port of Aktau to expand exports to Caspian region countries. A pilot project is planned to transfer vegetable oils from rail tankers to sea tankers for delivery to ports in Iran or Azerbaijan.
A significant contribution to unlocking the export potential of Kazakhstan’s oil and fat industry comes from the cooperation between the National Oilseed Processors Association of Kazakhstan and “Baiterek” National Managing Holding JSC. As part of a new pre-export financing and insurance support program, agreements totaling up to 23 billion tenge were signed in May 2025 between “Development Bank of Kazakhstan” JSC, “Export credit agency of Kazakhstan” JSC, and domestic oil processing enterprises. The agreements provide for preferential financing rates and insurance coverage for export operations with deferred payments. The funds are being directed toward the purchase of oilseeds and the support of export deliveries, which will strengthen producers’ financial stability and increase the export volume of finished products.
- At the beginning of our discussion, you emphasized the importance of curbing inflation. What measures are being taken in this regard amid rising global prices?
- Against the backdrop of geopolitical tensions and global climate changes, there remains a steady upward trend in vegetable oil prices. According to the Food and Agriculture Organization of the United Nations (FAO), over the past two seasons (from September 2023 to September 2025), the global vegetable oil price index increased by 39%, while the price of sunflower oil in Europe rose by 46%.
Since 2023, the wholesale price of sunflower oil produced by Kazakh oil plants for the domestic market has remained at 730 tenge per liter, in accordance with the Memorandum on Preventing Price Increases signed by the National Oilseed Processors Association of Kazakhstan (NOPA) together with the Ministry of Trade and Integration and the Ministry of Agriculture of the Republic of Kazakhstan. This agreement has ensured stable pricing for domestically produced oil over the past three years. In August of this year, amid inflationary pressures, the Association promptly organized the delivery of more than 7 million liters of bottled refined oil at 745 tenge per liter, distributed across the country.
As a result, the adopted strategy has allowed us to maintain stable retail prices in the domestic market by increasing production volumes while selling products at higher prices in export markets.
- It seems the Association is developing the industry not only economically but also socially.
- Absolutely. We have always emphasized our commitment to social responsibility. Expanding processing capacity, stabilizing prices, and broadening export geography represent contributions not only to the national economy but also to the country’s food security and resilience. Kazakhstan’s fat and oil industry is truly on the threshold of major transformation, and we are confident in its potential. The key is not to miss the window of opportunity—time is limited. By developing the processing sector today, we are moving away from the traditional raw export model and reshaping the prevailing mindset in business, thereby making a meaningful contribution to the nation’s future
