Kazakhstan Launching Its Second Sunflower and Rapeseed Oil Plant

A Kazakhstani company is set to launch the country’s second processing facility manufacturing both sunflower and rapeseed oils, with a goal to export its products to the lucrative Chinese market, the Oils & Fats International reported last month.  Tag-Tin, a subsidiary of agri and industrial holdings firm Vostok Agro, was building the 50,000 tons/year plant as part of an ongoing effort to diversify production and process its own raw materials. 

The 1bn tenge (US$3.13 million) plant, funded partially by the Kazakhstani government, was expected to come online in May, becoming the second facility in Kazakhstan capable of processing both sunflower seed and rapeseed.  Yerzhan Nurbayev, CEO of Vostok Agro, said 50% of its raw material would come from the company’s own production, with the rest sourced from local farmers. The plant owners were not interested in exporting sunflower seeds but in processing them to add value, Nurbayaev said.  

Nurbayaev said both sunflower and rapeseed oils were in great demand in the Chinese market, but the firm intended to sell its sunflower oil output domestically if possible.  Rapeseed production was not widespread in Kazakhstan due to high seed prices compared to sunflower and the difficulties in the rapeseed production process.  Rapeseed price was 44% higher than sunflower seeds.  Most Kazakhstani oil processing companies supplied the local market, but their output was not able to satisfy demand, with most of the shortfall filled by Russian imports.