Harvesting campaign: Ministry of Agriculture announces forecasts for the volume of grain crops

Grain harvesting has started mid-July in the south of Kazakhstan. The main grain-bearing regions — North Kazakhstan, Kostanay, Akmola and Pavlodar regions — plan to start harvesting in mid-September, reports primeminister.kz.

Егемен Қазақстан
10.08.2018 1875

Harvesting Area — 15 Million Hectares of Grain

According to the Ministry of Agriculture, the southern regions of the republic have started harvesting grain since mid-July 2018, the main grain-growing regions plan to start harvesting in mid-September and under favorable weather conditions will be completed by mid-October. According to the data of the regional agricultural departments, the republic plans to harvest grain on an area of 15 million hectares.

As is known, many factors determine the success of agricultural producers. One of the conditions for harvesting in the optimal time is the availability of a sufficient amount of diesel fuel. In this regard, the state annually seeks to reduce the pressure on the field crops and provides them with guaranteed amounts of fuel. Diesel fuel in the amount of 394,400 tons was allocated for harvesting this year (for the period July-October).

As noted in the Ministry of Agriculture, the volume was determined on the basis of regional akimats’ requests, as well as calculation of the consumption of diesel fuel by types of agricultural works in accordance with established technological maps.

Together with the Ministry of Energy, the schedule for fixing the regions for refineries for the supply of diesel fuel for the period of grain harvesting was approved.

Considering that since 2016 the state regulation of the price for diesel fuel has been canceled, the Ministry of Energy (for agricultural activities), in agreement with the owners of oil products (resource holders), sets a monthly fixed price, depending on the market situation, from the refinery to diesel fuel on average 10% below market price at the gas station.

The Ministry of Energy established the cost of diesel fuel for agriculture and refineries. In July 2018, with a delivery volume of 112,200 tons, the price is 180,000 tenge / ton or 148 tenge / liter. In August (the volume of delivery — 110,600 tons), the price was set at the refinery — 181,000 tenge / ton or 149 tenge / liter.

As of August 8, operators in the republic paid for 128,700 tons of diesel fuel (33%), suppliers shipped 108,800 tons of diesel fuel (28%), including plans for August — 110,600 tons, regional operators paid for 30,700 tons (28%), shipped — 14,900 tons (13%, continuing).

It should be noted that we are talking only about the guaranteed volumes of diesel fuel supply for agrarians. There are no financial means from the budget (in the form of subsidies) for cheapening the price of diesel fuel by the state.

Harvest Forecasts

Based on the forecast data of the agriculture departments of the regional akimats, the gross harvest of the grain of 2018 is planned for 21-22 million tons.

According to the data of the regional agricultural departments, as of August 9, the harvest in 2018 began in Almaty, Zhambyl, Kyzylorda, Turkestan and East Kazakhstan regions. A total of 714,800 hectares or 37.9% of the areas in these regions were harvested, 1,380,700 tons were harvested, yields 19.3 centners per hectare.

Export Potential

Every year the state creates a reserve grain fund. In accordance with the Rules for the Formation, Use and Storage of National Company “Food Corporation” JSC, as of January 1, 2018, it forms a reserve stock of grain for 500,000 tons. According to the information of the Food Corporation, the purchase prices for grain of a new crop have not yet been established.

At present, the Corporation has formed a grain reserve in the amount of 500,000 tons.

Most of the harvest is exported. So, in the past 2017/18 market year, according to preliminary estimates, 9.87 million tons of grain and flour in grain equivalent were exported from Kazakhstan.

As noted in the agricultural department, the annual production of cereals in Kazakhstan is about 18-20 million tons. Taking into account domestic consumption and carry-over stocks, the export potential of Kazakhstan is 8-9 million tons of grain and flour in grain equivalent.

It should be noted that Kazakhstan is also one of the major producers of oilseeds. According to the Ministry of Agriculture, this year oilseeds are located on an area of 2.8 million hectares (more than the level of 2017 by 375,000 hectares). Grain and beans were sowed on the area of 446,700 hectares (4,000 hectares more than in 2017).

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