World Grain - August 2018 - 28

FEATURE: CLIMATE CHANGE IMPACT DISCUSSED AT IGC

Andrey Sizov,
managing director of SovEcon
in Russia, said
many Russian
farmers are shifting from spring
wheat to winter
wheat due to
climatic changes.

tries, which has produced 19 million
WRQQHV RQ DYHUDJH RYHU WKH ODVW ¿YH
years.
"We export about eight or nine milOLRQWRQQHVRIZKHDWDQGÀRXU´VKH
said.
Afghanistan and Iran are the main
customers.
"We are the main exporter to the
&DVSLDQ6HDDUHD´VKHVDLG
Kazakhstan can supply China,
Southeast Asia and Iran via the
Persian Gulf.
"Because we don't have direct access to sea routes, we cannot realize
RXUSRWHQWLDOIXOO\´VKHVDLG
That meant a higher cost of transport. Flour exports are limited because the Central Asian countries are
trying to build up their own milling
industries to increase employment.
Isaeva highlighted problems with
the double invoicing in Central Asia
and Afghanistan. Import quotas are
also a barrier.
"Last year we exported 300,000
tonnes to China and only 100,000
WRQQHV ZDV ZLWKLQ WKH TXRWD´ VKH
said. "The rest paid high duties
on sales tax. Uzbekistan charged
highly transit fees to get grain to
Afghanistan. One of the challenges

that is very important at the moment
LVFOLPDWHFKDQJH´
Varieties in Kazakhstan traditionally had been selected for drought.
Now the country needs types of grain
that can deal with more moisture.
Kazakhstan is building new transport and logistics structures on key
export routes.
"We would like to use our transport
opportunities between Asia, Russia
DQG &KLQD´ ,VDHYD VDLG ³:H DUH
building and have built a number of
railways. We think this will allow us
to increase exports. We also plan to
build new grain terminals on the borGHUVZLWK,UDQDQG&KLQD´
Kazakhstan is trying to become
a more important transport hub between Europe and Asia.
³,W¶V D QHZ VLON URXWH´ VKH VDLG
"There are 3 billion people along the
QHZVLONURXWH´
The country also is trying to diversify its grain production, encouraging farmers to plant more soybeans,
legumes and oilseeds.
"We are giving up hectare bay
VXEVLGLHV´ VKH VDLG ³:H KDYH DGopted a new state standard for wheat
that is consistent with international
VWDQGDUGV´

Farmers are now allowed to import
seed without having to go through
a complicated separate registration
scheme.
Kazakhstan also is encouraging
³GLJLWDO.D]DNKVWDQ´DGRSWLQJHOHFtronic systems for services to crop
harvesting. An electronic system of
grain receipts accounts for the grain
at all of Kazakhstan's elevators.
"We are attracting foreign investment to achieve a greater degree of
SURFHVVLQJ LQ JUDLQ SURGXFWV´ VKH
said.
SOYBEAN ACRES RISING IN U.S.
Robert Johansson, chief economist, at
the U.S. Department of Agriculture,
expected some prices to edge up into
2018-19.
"We are seeing some strength in
ZKHDW SULFHV DQG WKH FRUQ PDUNHW´
he said, adding that it was due to the
drought in Argentina, and dry conditions in some wheat areas in Russia
and Ukraine.
,QWKH8QLWHG6WDWHVWKHSUR¿OHRI
planting has changed.
"Soybean planted acres is above
FRUQDFUHVIRUWKH¿UVWWLPHLQVRPH
WLPH´KHVDLG
The dollar weakened earlier in
2018, but since then there has been
some strengthening.
"It is uncertain how currency will
SOD\ RXW´ KH VDLG ³:H DUH H[SHFWing to see interest-rate increases from
the Federal Reserve several times in
´
Economic growth is driving meat
consumption at a faster rate, he said,
predicting that feed demand would
lead to a higher soybean area in the
United States. The new farm bill is
being discussed against a background
of changed realities for U.S. farmers.
"We are seeing net farmer income
ÀDWWHQLQJ´ -RKDQVVRQ VDLG ³)LYH
\HDUVDJRZHKDGUHFRUGLQFRPH´
Wang Xiaohui, deputy director of
the China National Grain and Oils
Information Center, said, "Everyone

August 2018 / World Grain / www.World-Grain.com

http://www.World-Grain.com

World Grain - August 2018

Table of Contents for the Digital Edition of World Grain - August 2018