- Bullish: New 3 million ton Kazakhstan corn processing plant creates sustained export demand for Russian corn, particularly from Saratov.
- Bullish: Kazakhstan’s corn deficit and falling stocks support stronger pricing for regional producers tied to industrial processing demand.
- Bullish: Russian corn gains a replacement outlet for volumes previously shipped to Iran, underpinning export flows into 2027.
Chinese Biotech Firm Secures Russian Corn Supply for Kazakhstan Plant
Shengtai Biotech, operating under China’s Fufeng Group, has started contracting Russian corn from the Saratov region to supply its new deep-processing facility in Kazakhstan’s Zhambyl region. The 175 billion tenge plant will convert corn into amino acids, starch, glucose, and byproducts including fiber, protein powder, feed, and fertilizers, with all output destined for China and European markets.
Planned capacity is 500,000 tons in 2025, rising to 1 million tons in 2026 and 3 million tons by 2027. This step-up in industrial corn demand will require substantial and reliable raw material sourcing beyond Kazakhstan’s domestic production.
Kazakhstan Corn Balance and Supply Constraints
Kazakhstan harvested 1 million tons of corn from 162,000 hectares in 2024, roughly in line with domestic consumption and leaving little surplus for large-scale processing. The Zhambyl region contributed only 94,400 tons, underscoring the gap between local output and the new facility’s needs.
Corn inventories have tightened, with stocks at the beginning of December 2025 at 269,000 tons, down from 302,000 tons a year earlier. In response, the Ministry of Agriculture expects corn planting area to expand by 42,900 hectares to 217,500 hectares in 2026, aiming to support both domestic demand and industrial use.
| Metric | 2024 | 2025 | 2026 (Proj.) |
|---|---|---|---|
| Kazakhstan corn area (hectares) | 162,000 | – | 217,500 |
| Kazakhstan corn production (tons) | 1,000,000 | – | – |
| Zhambyl region corn production (tons) | 94,400 | – | – |
| Corn stocks (tons, start Dec) | 302,000 | 269,000 | – |
| Plant processing capacity (tons) | – | 500,000 (2025) | 1,000,000 (2026), 3,000,000 (2027) |
Market Impact: Bullish for Russian Corn
The Kazakhstan facility establishes a long-term demand anchor for Russian corn exports, especially from the Saratov region, as it scales toward 3 million tons of annual processing capacity by 2027. This new offtake can partially replace volumes previously shipped to Iran, which once absorbed up to 70% of Russian corn exports before purchases declined amid Iran’s economic deterioration.
For Russian producers and logistics operators, the emerging corridor from southern Russia through Kazakhstan offers planning visibility for 2025–2027 planting and export programs. In Kazakhstan, expanding corn acreage is likely to command a premium relative to feed markets, with pricing increasingly linked to industrial processing and export value chains into China and Europe.
Source: Market Data
Leave a Reply