- Neutral to Slightly Bearish: Additional 165,000 tons of annual sunflower crushing capacity in Kazakhstan could marginally pressure Black Sea vegetable oil and protein meal export demand over time.
- Structural Shift: New full-cycle processing complex in East Kazakhstan may redirect domestic sunflower flows away from export channels and encourage further regional crushing investments.
- Regional Competition: Locally produced vegetable oil and protein meal will compete with Black Sea supplies in Central Asian feed and food markets.
Kazakhstan Oilseed Processing Expansion
Altai Mai LLC has commissioned a major oil extraction complex in Ust-Kamenogorsk, East Kazakhstan Oblast, following a three-year construction phase that began in 2021. The facility operates as a full-cycle plant, covering raw material reception, preparation, extraction, purification, and packaging, and is positioned as a modern, environmentally focused operation.
Total project investment reached 26 billion tenge (around $58 million), including 2.5 billion tenge in regional budget support. The plant’s daily processing capacity of 500 tons of sunflower seeds translates to roughly 165,000 tons per year, assuming sustained operations. Output includes refined vegetable oils, protein meal for feed, and fuel pellets, implemented via a zero-waste, closed-loop production system with enhanced quality control measures.
Market Impact and Trade Flows
The additional crushing capacity in Kazakhstan is assessed as neutral to slightly bearish for broader Black Sea oilseed and product prices. While Kazakhstan is not a core Black Sea export hub, increased local processing can reduce its reliance on imported vegetable oils and gradually divert more domestic sunflower volumes into domestic value-add channels instead of raw seed exports.
The plant’s protein meal production will compete directly with Black Sea-origin meal in Central Asian feed markets, potentially eroding some regional demand for imported meal over time. Traders should watch whether this project marks the start of a broader investment cycle in Central Asian oilseed processing, which could reshape long-term sunflower and product trade flows around, rather than through, traditional Black Sea routes.
| Metric | Value |
|---|---|
| Total Investment | 26 billion KZT (≈ $58 million) |
| Regional Budget Support | 2.5 billion KZT |
| Daily Processing Capacity | 500 tons of sunflower seeds |
| Estimated Annual Capacity | ≈165,000 tons of sunflower seeds |
Implications for Regional Participants
For regional growers, the complex provides a stable domestic outlet for sunflower seeds and may improve local basis levels over time. For crushers and exporters in the Black Sea, especially those focused on sunflower oil and meal, Kazakhstan’s growing self-sufficiency in processing represents incremental competition for Central Asian demand. Monitoring future capacity additions in Kazakhstan and neighboring countries will be important for assessing medium- to long-term price effects and trade route adjustments.
Source: Market Data
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