Kazakhstan’s International Agricultural Trade and the Opportunities for Hungarian Cereal Exports to Kazakhstan

Maró, Zalán Márk – Jámbor, Attila – Török, Áron

Keywords: Kazakhstan, cereals export, international agricultural trade, competitiveness, New Silk Road, Q17

Kazakhstan is one of the most economically advanced countries in Central Asia, became independent of the Soviet Union in 1991, but the Russian influence can still be noticed today. Kazakhstan can be considered as a net agricultural importer country, however, considering the total trade, Kazakhstan is a net exporter country. By examining the trading partners of the Central Asian country, we can see a Russian dominance. The primary destination of the Kazakh agricultural exports – before Russia – is Uzbekistan, a significant part (about 40%) of agricultural imports come from Russia. Countries such as Brazil, Germany and the United States are also emerging as agri-import partners, but their share is declining. In terms of agriculture, Kazakhstan is trading with neighboring countries of the Commonwealth of Independent States and the members of the Eurasian Economic Union, mainly due to trade agreements and lower transportation costs.
In general, this Central Asian country exports lower processed agricultural products and imports mainly processed agricultural products. The most important products of Kazakh agri-export (wheat and dough, durum wheat, barley) come from the group of cereals.
Nevertheless, the Kazakh market has great potential for cereal seed export. The eastern opening of Hungary, as well as the fact that Kazakh producers have an increasing demand for high-quality cereal seed, suited to local extreme climatic conditions, play a very important role in this. The article identified five potential Hungarian cereal export products, of which the Kazakh market could be a possible target: durum wheat seed, wheat and double seed, rye seed, oat seed and corn seed. In overall, practical conclusions based on such a theoretical model can help national agricultural policy and businesses to further exploit the potential of their markets in Kazakhstan and other countries in the region.

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