High production costs is raising the price of domestically produced food in Kazakhstan, paving the way for exporters to score some big wins. The prevailing trend in Central Asia’s largest economy shows local players increasing their prices on popular products. As such, Kazakhstan’s population is turning more towards imported foods.
Behind Kazakhstan’s rising food production costs is an uncertain economic situation. According to a report from Kazakhstani news agency KazInform, a floating exchange rate between the tenge and dollar means domestic producers cannot fix their own prices.
2016 saw a sharp rise in food prices as a result of the above. Across Kazakhstan, prices of food and beverage products rose 17.6% compared with just 7.4% throughout the CIS. All of this is pointing towards a bigger market for imports in Kazakhstan, so exporters should be aware.
“Ordinary citizens prefer to buy imported products instead of homemade ones,” KazInform said.
Kazakhstan’s food and drink imports account for around 10.5% of all of its annual import volumes. 2015 for example saw the nation import around $5.8 billion worth of foodstuffs, according to data from TradeMap. Imports included $427 million worth of fruits and vegetables and $382 million of eggs and dairy.
It is not just in pure food exports where international companies can make their mark. Food production is an increasingly vital economic sector in Kazakhstan. The industry’s development has been earmarked for attention by the government, with billions of dollars of investment expected until at least 2020.
Domestic factories are currently outdated and are using obsolete technologies. A modernisation programme is on the way, opening the door for foreign brands to offer their equipment, machinery and technology to this growing market.
In order to be in the best position to get your products, be they food and drink items or machinery and equipment, you need to be at WorldFood Kazakhstan. 2017 will be the 20th instalment of the show, which since the late nineties has been connecting international suppliers with the biggest players in the Kazakhstani food industry.
WorldFood Kazakhstan takes place between 1-3 November 2017 at the Atakent IEC in Almaty. To get the place spot, and make the most of Kazakhstan’s leading food and drink trade show, contact us today.