On April 11-12, Shanghai hosted the international conference Chinese Grains & Oils Congress, one of the main events of the Asian agricultural market. The conference gathered about 250 guests from China, Kazakhstan, Uzbekistan, Moldova, EU countries, the Black Sea region, Turkey, the UAE, Singapore, Thailand, etc. The participants’ list contained from exporters and importers, agricultural holdings, grain and oilseed processors, representatives of logistics, law firms and related industries.
The event was organized by APK-Inform Asia, co-organized by MYANDE GROUP, general partner - National Oilseed Processors Association (NOPA), logistics sponsor - Astyq Trans, sponsors - Qazaq Astyq Group, Altyn Astyk Group, LAT FLEX SIA, legal partner - AGA Partners.
At the opening of the event, Polina Kalaida (conference organizer, founder, APK-Inform Asia LLC), Xu Bin (Chairman of Myande Group), He Dongping (President of the Oils and Fats Branch of the Chinese Cereals and Oils Association), Kairat Torebaev (Vice Minister of Trade and Integration of the Republic of Kazakhstan), Yadykar Ibragimov (Chairman of the National OILSEED PROCESSORS ASSOCIATION of Kazakhstan (NOPA) made welcoming remarks.
The location of the conference was not chosen by chance. China is and will remain the global largest importer of agricultural products, both grain and oilseeds, in the coming years. And due to the current geopolitical situation, supplier countries are changing, logistics routes are being updated, and in general, the conference participants had a lot to discuss both in the hall and on the sidelines of the Chinese Grains & Oils Congress.
Interestingly, being a top importer of agricultural products on the global market, China is simultaneously actively increasing its own production.
According to Nie Fengying, professor at the Agricultural Information Institute (AII) of the Chinese Academy of Agricultural Sciences (CAAS), in the future China will continue to implement the national food security strategy based on domestic grain production, guaranteed production capacity, moderate food imports and technological support.
She noted that in recent years, China's grain production has reached 493 kg per capita. In 2023, China's grain harvest amounted to 695 mln tonnes (compared to 539 mln tonnes in 2009 and 664 mln tonnes in 2019).
“China is actively investing in research to develop high-quality seeds and create crop and livestock breeding systems. The emphasis is also placed on the construction of grain storage and logistics facilities to reduce losses during production, processing, storage, etc.", the expert emphasized.
According to Rosa Wang, senior analyst at Shanghai JC Intelligence Co. the US is still one of the most important suppliers of corn to China. At the same time, Brazil is becoming the largest exporter of corn to China.
“The volume of Brazilian corn supplies to China exceeded 10 mln tonnes in 2023, exceeding the peak of Ukrainian corn supplies to China and second only to the peak of US corn exports to China,” she said.
In her opinion, the opening of Brazilian corn exports to China in 2023 and the first deliveries of South African corn mean that China has established ties with important global producers and exporters of this grain, which helps to diversify the import system of this product.
The grain market of the Black Sea region also has a significant impact on the development of the Asian agricultural market. The preliminary results of 2023/24 MY and forecasts for 2024/25 MY for Ukraine and other Black Sea countries were presented by the Director of APK-Inform Asia Agency Olena Cherednichenko at the Chinese Grains & Oils Congress.
She said that according to the data of the Ukrainian customs service, Ukraine had not reduced the food supplies to China as much as other goods during the two years of war. At the same time, while in 2021, food products accounted for slightly more than half of all exports of all goods from Ukraine to China in monetary terms, in 2023 this figure exceeded 90%. Thus, even in such difficult conditions, Ukraine retains the status of a reliable food exporter.
“According to the results of 2023, about 8 mln tonnes of Ukrainian grains, oilseeds and processed products were exported to China. Corn accounted for the bulk of exports (almost 70%). Sunflower meal accounts for another 20% in the export structure,” the speaker noted.
At the same time, according to current forecasts of APK-Inform analysts, it is expected that the gross harvest of wheat and barley in Ukraine in 2024 may be the lowest in the last 10 years. And the gross harvest of corn may decrease by 16% compared to the previous year.
Kazakhstan is currently one of China's most important trading partners. The delegation of this country was the largest at the Chinese Grains & Oils Congress, and the development of the Kazakh grain and oilseeds market was given great attention during the conference. The importance of this event for Kazakhstan is also emphasized by the fact that Vice Minister of the Ministry of Transport, Kairat Torebaev, headed the Kazakh delegation at the conference in Shanghai.
During his speech at the Chinese Grains & Oils Congress, he said that in 2023, trade between Kazakhstan and China reached significant levels, exceeding $31.5 bln, including Kazakhstan's exports of $14.7 bln (+12.6%) and imports of $16.8 bln (+50.5%). Last year, the share of China in Kazakhstan's total trade turnover amounted to 22.5%.
The turnover of agricultural products in 2023 increased 1.7 times and exceeded $1.3 bln. In particular, exports of Kazakh agricultural products to China increased almost 2-fold last year and amounted to $1.01 bln.
The Vice Minister clarified that Kazakhstan currently has signed protocols with China on the export of 24 types of crop and livestock products to the Chinese market, including wheat, flax seeds, barley, alfalfa, corn, wheat bran and feed, rapeseed meal, wheat flour, soybeans, peas, lentils, sunflower meal (cake), safflower, soybeans, flax, etc.
"In 2023, we saw a significant increase in exports of grains and oilseeds from Kazakhstan. The volume of exports amounted to 2 mln tonnes worth $611 mln, which is much higher than in 2022. The most noticeable growth is demonstrated by such crops as barley, wheat, flax seeds, sunflower seeds and other oilseeds," said the Vice Minister of the Ministry of Transport.
Mr. Torebayev also noted that the flow of investments from China is growing.
"Over 18 years (from 2005 to 2023), the gross inflow of Chinese direct investment in the economy of the Republic of Kazakhstan amounted to about $25 bln - according to this indicator, China is among our top 5 investors. Given the existing significant potential, we are interested in further increasing and diversifying trade relations. Our investment cooperation is expanding and is supported by new projects," the Vice Minister emphasized.
Daulet Uvashev, Director of Harvest Kazakhstan, presented an interesting report during the grain session. He presented the balance sheets for the main grain crops that Kazakhstan produces and exports - wheat and barley.
According to the expert's forecasts, this year's gross wheat harvest in Kazakhstan will be 32% higher than last year's and will reach 15.84 mln tonnes, while barley harvest may be 16% higher and reach 3.25 mln tonnes.
In his opinion, Kazakhstan's wheat exports will be 18% higher than last year (11.05 mln tonnes of grain and flour in grain equivalent).
D.Uvashev specified that barley exports in the current season may reach 1.5 mln tonnes (+15% compared to the previous season).
At the same time, in 6 months of 2023/24 MY (September-February), Kazakhstan has already exported about 700 thsd tonnes of barley. China ranks first in the ranking of the top importers of the product - the country supplied about 535 thsd tonnes of Kazakh barley.
What is useful about such conferences is that their participants are always the first to learn exclusive market information and industry news.
Thus, at the Chinese Grains & Oils Congress 2024, it became known that Astyk Trans, a systematic freight forwarder of agricultural cargo transportation in Kazakhstan specializing in the transportation of Kazakh grain to all domestic and export destinations, is entering the market as a trader. The President of Astyk Trans Sanzhar Yelubayev reported.
He noted that the export of grains and oilseeds from Kazakhstan to China is unstable. Over the past three years, it has been showing growth dynamics, but this year the rate of shipment has significantly decreased.
"With production in Kazakhstan of more than 11 mln tonnes and annual exports of 6-7 mln tonnes of grain alone, only 0.5 mln tonnes were delivered to China in 2023," the president of Astyk Trans emphasized.
In order to increase the supply of Kazakh grain to China, a number of logistical problems need to be solved, S. Yelubaev added.
In particular, he proposed to work out a mechanism of interaction between the Kazakh and Chinese sides to reduce the time of unloading, obtaining the necessary permits and returning the wagons. It is also necessary to increase the loading of grain in containers.
China and Kazakhstan also cooperate closely in the oilseeds segment. For example, China accounts for 36% of Kazakhstan's total exports of oil and fat products (vegetable oils and meals). China ranks first in the list of importers of these products, said Yadykar Ibragimov, Chairman of the National Association of Oilseed Processors of Kazakhstan (NOPA), during the international conference Chinese Grains & Oils Congress.
He specified that in 2022/23 MY Kazakhstan exported vegetable oils and meals to China for $181 mln, up 57% compared to the previous season ($115 mln). In particular, exports of vegetable oils from Kazakhstan to China amounted to 172.5 thsd tonnes (+120% y-o-y).
The second largest buyer of Kazakh vegetable oils and meals was Uzbekistan with $163 mln (32% share), and the third largest buyer was Tajikistan ($88 mln, 17%).
According to NOPA estimates, in the next 3 years, Kazakhstan can increase exports of these products to China to $300 mln.
Y. Ibragimov said that in January 2024, a terminal was put into operation at the Alashankou station, which will increase the unloading of vegetable oils to 1 train (45 wagons) per day. Previously, this figure was only 6-7 wagons per day.
According to the representatives of the co-organizer of the Chinese Grains & Oils Congress, MYANDE GROUP, China remains the largest consumer of vegetable oils in the world with a share of 20% in 2023 (the EU countries are in second place with 13%). Imports of these products over the past three years have averaged about 10.42 mln tonnes.
By the way, MYANDE GROUP's share in the oilseed processing equipment market in China exceeds 86%, and in the global market - 20%. To date, the company has implemented more than 1000 projects in more than 80 countries around the world - this is truly impressive! MYANDE GROUP's principles for implementing projects in the oil and fat industry include high quality, low resource consumption, environmental friendliness, and increased productivity.
In addition, on April 13, after two intense session days, the conference co-organizer Myande Group invited the guests to a fascinating excursion.
The participants of the Chinese Grains & Oils Congress visited the engineering and production base of Myande Group, a leading global supplier of integrated plants, equipment and services for the production of oils and fats, starch and derivatives, evaporation and crystallization, storage and transportation of materials, as well as a full automation system for the production of "smart plant". Interestingly, Myande Group currently employs more than 1,200 people, including 500 technical staff and 700 production workers.
Therefore, the first international conference Chinese Grains & Oils Congress in Shanghai took place, and it was quite successful! The guests received not only a huge amount of exclusive market information, but also made a lot of new and useful contacts, exchanged experiences, received answers to pressing questions, and were charged with positive energy to conquer new business heights!
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Prepared by Tatyana Lyagusha
