Sales of grain in the domestic market are carried out by the NC Food Contract Corporation JSC (Corporation) only through anonymous stock trading.
Since 2013, the Corporation has been actively promoting usage of the most progressive tools of stock trading upon sales, such as the Order-Driven Anonymous Auction.
Shipment of grain is carried out on EXW (free alongside elevator) terms from the GRS authorized by the Corporation for storage of the grain of state resources and commercial resources of the Corporation.
The Corporation carries out sales of grain for export, including:
- Shipments of commercial resources grain in the process of commercial activity;
- Humanitarian supplies of state resources grain under inter-governmental agreements in the execution of the functions of the agent on managing the state resources of grain. The main volume of grain export of the Corporation falls on the traditional markets of Kazakh wheat, such as Iran, Central Asia and the Caucasus countries.
Iran, the largest importer of Kazakh grain in the structure of the Corporation’s sales markets accounts for more than 60% of all export shipments. In recent years, the Corporation has established close ties with the Iranian partners, and therefore, grain export in this direction remains consistently high compared with other countries – importers of the Corporation’s grain.
In many ways, this is facilitated by the availability of grain terminals in the Caspian Sea: in the ports of Aktau and Amirabad. In addition, when exporting to Iran the Corporation uses the direction alternative to the sea route - a new railway transit through Turkmenistan.
Along with other Kazakh exporters the Corporation also supplies grain to the countries of the Caucasus region, first of all to Azerbaijan, and Central Asian countries (Kyrgyzstan, Tajikistan).
At the same time, the Corporation is planning to expand the geography of grain export in the new perspective directions, such as China and Southeast Asia.
Since the beginning of 2012, the Corporation has already been successfully developing the Chinese market and due to the rise of grain consumption volumes in this country, the Corporation’s plans in the near future include increasing export shipments in this direction.
In the future, it is planned to actively use the transit potential of China to supply grain to Southeast Asia.
In addition to the markets mentioned, the company also ships grain to the Russian regions bordering with Kazakhstan, where Kazakh wheat is in high demand due to its high-quality characteristics.
Moreover, despite the lack of direct access to the main sea routes of grain trade, the Corporation is consistently exploring the opportunities of export deliveries of grain to North Africa and the Middle East, which account for over 30% of the global imports of wheat.