Miller Magazine Issue: 145 January 2022

93 MARKET ANALYSIS MILLER / january 2022 anal small mills, but their share is gradually declin- ing. As in pig farming, large players who are more manageable are entering the market. According to the Union of Grain Processors of Kazakhstan, about 150 operating enterprises pro- ducing about 3.3 million tons of flour in recent years. Flour mills consume about 1/3 of the coun- try's wheat. Due to rising production costs, Kazakh- stan may face unclaimed grain. Diversification of production since 2009 - reduction of planting areas for wheat and reduction of incentives for its pro- duction. Russian grain is in high demand in the Ka- zakhstan market due to low production costs and an illegal component in the form of tax evasion. Kazakhstan is the main supplier of wheat to Central Asia, and applies a barrier railway tariff for the transit of Russian grain. Both of them are very dependent on the demand and influence of Iran. Kazakhstan is selling its grain this season, and buy- ing Russian grain duty-free. Undeclared exports of wheat from Russia are estimated from 500k to 1 mil- lion tons, according to Yevgeny Gan, head of the Union of Grain Processors of Kazakhstan. Central Asian countries, importers of flour, are trying to limit imports of finished products, prefer- ring to develop their own processing industry. The main consumers of flour in Central and Cen- tral Asia are poor countries, with up to 80% of the population eating bread. At the same time, high population growth rates remain. At the same time, consumption preferences are not expected to change, even with increasing incomes. Balances of wheat production in Central Asia are difficult due to the non-transparency of exports and imports. One of the reasons for Pakistan's high wheat im- ports is considered to be purchases in favour of Afghanistan to support the country's authorities. Af- ghanistan needs up to 3 million tons of grain a year. The balance will remain strained due to population growth in these countries. Turkey faces a difficult task: to keep the markets afloat amid inflation. Because we already see that they can be taken off by competitors we didn't even know about. There are no more Hadjivat and Karagez between us. They are somewhere on the supply tankers or demand yachts. PHARMA & NUTRITIONAL CHEMICALS & HOME CARE BEAUTY & PERSONAL CARE INDUSTRIAL & DURABLE GOODS LIQUID FOOD & BEVERAGE PASTA, BAKERY &MILLING SWEETS, CONFECTIONARY & SNACKS FOOD, FRESH & CONVENIENCE #ipackima ipackima.com 3 - 6 MAY2022 FIERAMILANO RHO - ITALY YOUR BUSINESS COMMUNITIES A JOINT VENTURE BETWEEN: IPACK IMA SRL Tel. + 39 02.3191091 ipackima@ipackima.it A PROJECT BY: