- Capacity Expansion: Kapshagai Bidai Onimderi has reached 1 million tons annual processing capacity for flour, vegetable oil, and animal feed after a 12 billion tenge modernization, with plans to double output.
- Export-Oriented Growth: 98% of production is exported, primarily to China and Southeast Asia, with 110,000 tons shipped in the last six weeks, boosting Almaty region grain exports by over 10%.
- Local Value Addition: The plant relies entirely on locally sourced raw materials, supporting Kazakhstan’s strategy to expand value-added agro-processing and export infrastructure.
- Market Impact: Neutral to mildly bearish implications for Black Sea sunflower oil as Kazakhstan’s growing vegetable oil exports may increase competition in Asian markets over the next 12–24 months.
Kazakhstan Agro-Industrial Capacity Upgrade
Kazakhstan’s Kapshagai Bidai Onimderi plant in the Almaty region has completed a major modernization, lifting its combined processing capacity for flour, vegetable oil, and animal feed to over 1 million tons per year. The upgrade required 12 billion tenge in investment and forms part of a broader agro-industrial cluster visited by Prime Minister Olzhas Bektenov.
The facility operates as a fully export-oriented complex, sourcing 100% of its raw materials from local producers. In the past six weeks alone, it produced around 110,000 tons of products, 98% of which were shipped to China and Southeast Asian destinations. This has helped increase the Almaty region’s grain export volumes by more than 10%.
Building on the recent expansion, the plant now plans to double its processing capacity, further deepening Kazakhstan’s role as a supplier of value-added grain and oilseed products. Prime Minister Bektenov highlighted the government’s focus on strengthening processing, logistics, and export infrastructure to ensure stable and predictable conditions for agribusiness investment.
Export and Capacity Metrics
| Indicator | Value |
|---|---|
| Recent Investment | 12 billion tenge |
| Current Annual Processing Capacity | > 1 million tons (flour, vegetable oil, animal feed) |
| Planned Capacity Outlook | Capacity to be doubled from current level |
| Output in Last 6 Weeks | ~110,000 tons |
| Share of Output Exported | 98% |
| Key Destinations | China, Southeast Asia (incl. first grain exports to Vietnam) |
| Regional Impact | >10% increase in Almaty region grain export volumes |
Market Impact on Vegetable Oil and Black Sea Flows
The expansion of Kazakhstan’s vegetable oil and grain processing capacity is neutral to mildly bearish for Black Sea sunflower oil exporters in the near term. As the plant scales up operations and doubles capacity, additional Kazakh vegetable oil volumes are likely to target Asian markets, particularly China and Southeast Asia, where Black Sea suppliers are already active.
The immediate impact on regional pricing is limited, as Kazakhstan has traditionally emphasized domestic oilseed crushing rather than competing head-on with Ukrainian and Russian sunflower oil exports. However, sustained increases in crushing rates at Kapshagai Bidai Onimderi could gradually alter trade flows, adding to regional supply and influencing freight demand on eastbound routes from the Black Sea and Central Asia.
Traders should monitor the pace at which the new and planned capacity is utilized, particularly the split between flour, feed, and vegetable oil output, as well as Kazakhstan’s ability to secure long-term offtake agreements in China and Southeast Asia. Any acceleration in oilseed processing and exportable oil surplus could incrementally pressure Black Sea sunflower oil margins in those markets.
Source: Market Data
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