- Kazakhstan is launching deep grain processing projects totaling 2 million tons of annual capacity for wheat and corn.
- DALIAN HESHENG GROUP is building a 1 million ton wheat processing facility; FUFENG GROUP is constructing a 1 million ton corn plant.
- State support via investment contracts and guarantees is attracting international processors and signaling long-term policy commitment.
- Shift from raw grain exports to value-added products is neutral to bullish for processed goods, but potentially bearish for raw grain export availability.
Kazakhstan Expands Deep Grain Processing Capacity
Kazakhstan is rapidly expanding its deep grain processing infrastructure to enhance value-added export flows, according to Aldiyar Zhientayev, project manager at Kazakh Invest National Company JSC, speaking at the KAZAKH GRAIN & LOGISTIC FORUM on February 3 in Almaty.
Two flagship projects are under implementation with major international investors. DALIAN HESHENG GROUP is developing a wheat processing facility with an annual capacity of 1 million tons, while FUFENG GROUP is building a corn processing plant with a matching 1 million ton annual capacity. Combined, these investments represent a structural shift in Kazakhstan’s use of wheat and corn from primarily raw exports toward processed products.
Investment Framework and Government Support
The government is actively supporting these initiatives through a range of instruments, including investment contracts, special investment contracts, and broader investment agreements that guarantee specific state support measures for foreign and domestic investors. This framework is designed to reduce project risk, accelerate implementation, and solidify Kazakhstan’s position as a regional hub for value-added grain processing.
Market Impact and Trade Implications
The redirection of up to 2 million tons of wheat and corn into domestic processing is expected to tighten the availability of raw grain exports from Kazakhstan, particularly into Black Sea and regional markets. While this may be mildly bearish for exporters relying on raw grain flows, the outlook is neutral to bullish for processed grain products as Kazakhstan ramps up production and export of higher-margin derivatives.
Over time, this shift up the value chain could reshape Kazakhstan’s role in regional grain logistics, increasing competition in processed products while reducing its share in bulk raw grain trade. Traders and logistics operators should monitor construction and commissioning timelines for these facilities to anticipate changes in grain balances, export flows, and basis structures.
Capacity Overview
| Project | Company | Grain Type | Annual Processing Capacity (tons) |
|---|---|---|---|
| Wheat Processing Facility | DALIAN HESHENG GROUP | Wheat | 1,000,000 |
| Corn Processing Plant | FUFENG GROUP | Corn | 1,000,000 |
| Total New Deep Processing Capacity | – | Wheat & Corn | 2,000,000 |
Source: Market Data
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