International Business News – According to data from the QazTrade Trade Policy Development Center, Kazakhstan exported $24.5 million of pasta in January-May, up 30% year-on-year, according to HaAgriculture.com. At the same time, the volume of physical exports increased by 18 percent. The average export price of pasta produced in Kazakhstan has increased by 10% in four months.
Kazakhstan’s pasta imports in January-April amounted to 11,658.2 tons, while exports in the same period amounted to 23,764 tons.
The main exporters of pasta from Kazakhstan are, in order, Russia with 12,059.4 tons in January-April, Tajikistan with 3,611.4 tons and Uzbekistan with 2,973.3 tons. In addition to these countries, Azerbaijan is a market with potential for further export development.
QazTrade noted that given the current economic situation in Russia, as well as difficulties in the supply of pasta production equipment (65% supplied by Italy), the demand for imported pasta in Russia is expected to increase.
As for Uzbekistan, according to QazTrade sources, the country is leading the way for the first time in exporting flour to Afghanistan, which was previously the main export market for Kazakhstan’s flour. Uzbek flour, on the other hand, is obtained by processing Kazakhstan wheat. Further developments in the situation may pose a threat to Kazakhstan’s pasta producers.
Uzbekistan is currently engaged in import substitution of flour and developing its own flour production. At the same time, Kazakhstan remains the leader in the supply of pasta in Uzbekistan’s import basket. To further expand the presence of Kazakh pasta in the Uzbek market, QazTrade advises exporters to pay attention to cooperation with supermarket chains, whose share of sales has grown by 8.5% in the last five years.
As of today, 92% of imported pasta in Azerbaijan comes from Turkey and Russia. Given the upcoming difficulties in cooperation with Russian producers and Turkey’s dependence on wheat imports, Kazakh pasta producers can enter the Azerbaijani market by offering preferential terms to their partners.
According to QazTrade, in the current geopolitical conditions it is necessary to use export opportunities for flour and pasta products as rationally as possible and limit the supply of wheat to foreign markets.
Moreover, the existing production capacity in Kazakhstan is sufficient to replace imported pasta. Currently, Kazakhstan utilizes only half of its production capacity (46.6%), and full production capacity will achieve full substitution of imported pasta, while exports are expected to grow 8.3 times.