The national chamber of entrepreneurs of the Republic Kazakhstan "Atameken"
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Exports of agricultural products to the UAE: talks continue

26 January 2017
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Kazakh grain-bean products are in a high demand

Kazakh farmers held a second round of talks with one of the largest traders of food products in the UAE. At the site of the National Chamber of Entrepreneurs of Kazakhstan "Atameken" the Deputy Chairman of NCE Nurzhan Altaev met with the head of the company “Selkar Trading F.Z.E.” Rakhim Nilavar. The regions took part in the negotiations via a videoconference mode.

"During a trip to Dubai, just a week ago, we met with Mr. Rakhim and discussed the possibility of purchasing leguminous production in Kazakhstan. Mr. Rakhim expressed great interest in this. Today we can discuss all achieved arrangements during the last meeting directly with you", - said Nurzhan Altaev, addressing the audience of farmers.

In turn, Mr. Rakhim Nilavar noted that Kazakh producers of grain-legume crops can compete with foreign manufacturers. "Canadian lentils ripen later, so its actual delivery is made around January. Kazakhstan lentils mature in November and during this period the demand for it is very high, and the price is much higher. In addition, the volume of produced green lentils is limited in the international system of procurement and supply. If Kazakh farmers will focus on this type of product, it will be in very high demand in the market of our country", - concluded the head of a Dubai trader company.

Nurzhan Altaev also stressed that Kazakhstan has a significant advantage - it's land resources. "We have more than 200 million hectares of land, including more than 180 million - 20 million and pasture acreage on which to grow various crops. This is a huge potential. We can easily compete with developed agrarian countries like Canada and Australia", - he concluded.

During the meeting, many farmers were interested in requirements for import of agricultural products to the UAE. According to Rakhim Nilavar, these are the existing international standard requirements, which are shared by all global traders. "We appreciate the culture of the product, its quality indicators. When high grade lentils are purchased, which are technologically well processed and packaged well, it is in demand, because this automatically increases its price in the market. Kazakhstan's climate is very suitable for growing lentils, and, if to increase the quality of culture, the demand for the product will only grow", - he added.

In 2011, UAE purchased leguminous production for 500 million, since then the volume of its imports is increasing every year. At the moment, the United Arab Emirates are interested in this type of Kazakh products as lentils, peas, chickpeas, barley, flax seed, fodder maize.

Problems of exporting legumes from Kazakhstan to the United Arab Emirates, according to Nurzhan Altaev, are, first and foremost, in logistics. "The costs for delivery by Kazakh transport companies are quite high, while the Russian carrier services are 2 times cheaper. Cargoes are currently transported in two ways: through Iran and through Russia. The first way is more expensive, but faster. It is about 180 dollars per ton. Delivery time from Dubai is two weeks. A path through Russia is twice cheaper, but it takes almost a month", - he explained.

"Atameken" holds talks on cooperation with three major traders EMCO International LLC, Al Dahra Holding and Selkar Trading F.Z.E. They are interested in the import of Kazakh grain, beans and other agricultural products.

In December 2016 in Astana were held talks with EMCO International LLC and more than 80 Kazakh agricultural producers.

EMCO International LLC expressed its willingness to purchase up to 200 thousand tons of grain-legume from Kazakhstan for export to the UAE, as well as in Iran. They also consider purchasing through futures contracts. Today, the Arab company has already signed a memorandum of understanding.

This year it is also planned to hold talks with Al Dahra Holding and Selkar Trading F.Z.E.

Interested agricultural producers can submit their applications to the following contacts:

Chamber of Commerce of Kazakhstan

010000 Astana

Yesil district, 19, Kabanbay Batyr avenue, block "C"

E-mail: export@palata.kz

Contact number: +7 (7172) 27 96 16; 27 90 54; 27 90 55; 27 90 56

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