Kazakhstan has made significant strides in the sunflower oil markets of Central Asia, surpassing Russia in key markets such as Tajikistan and Uzbekistan. With record production in the 2023/24 season and increased exports, Kazakhstan is positioning itself as a dominant force in the region’s vegetable oil trade. Let’s dive into the details of Kazakhstan’s growing influence in the sunflower oil market.

Record Sunflower Oil Production

In the 2023/24 season, Kazakhstan achieved a record production of 480,000 tons of sunflower oil, marking a 15% increase compared to the previous season and 2.5 times more than the 2020/21 season. According to the Kazakhstan Oilseed Processors Association (NAPMK), this surge in production is due to government incentives and the active operation of processing plants.

The introduction of an export tax on sunflower seeds (at 20%, or a minimum of 100 euros per ton) played a pivotal role in promoting domestic oilseed processing and boosting the export of finished products. These measures have allowed the country to expand its capacity and presence in the global sunflower oil market.

Reduced Dependence on Imports

Kazakhstan’s increased production has led to a decline in packaged oil imports, which dropped by 11% to 39,700 tons. Despite stable import levels in the first 11 months of the 2023/24 season, the rise in local production has helped reduce the country's reliance on foreign oil supplies.

Significant Growth in Exports

Sunflower oil exports surged by 42% to 130,000 tons in the 2023/24 season, while oilcake exports increased by 49%, surpassing 117,000 tons. Overall, the total export of vegetable oils and oilcake reached 1 million tons, amounting to $561 million in value.

This boost in exports has enabled Kazakhstan to capture a larger share of markets in Central Asia, particularly in Tajikistan and Uzbekistan, where Russia once held a dominant position.

Kazakhstan's Rise in Tajikistan and Uzbekistan

In recent years, Kazakhstan has dramatically increased its share of sunflower oil exports to Tajikistan, rising from 15% in 2017 to 72% in 2023. During the same period, Russia's share dropped significantly. Similarly, in Uzbekistan, Kazakhstan's share of sunflower oil imports rose from 13% in 2017 to 51% by 2022-2023, overtaking Russia, whose market share declined from 84% in 2017.

Expansion of Sunflower Cultivation

To meet growing demand, Kazakh farmers have steadily expanded sunflower cultivation. In 2021, the country had 958,000 hectares dedicated to sunflower crops, and by 2024, this figure is expected to grow by 34% to 1.287 million hectares. Sunflowers are the only oilseed crop in Kazakhstan to consistently see growth in cultivation over the past four years.

Kazakhstan’s strategic efforts in increasing sunflower oil production and exports have not only strengthened its domestic market but also allowed the country to dominate regional markets in Tajikistan and Uzbekistan, pushing Russia aside. With continued investment in sunflower cultivation and processing, Kazakhstan is well-positioned to remain a leading player in the sunflower oil market in Central Asia.





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