Kazakhstan: Technical Assistance to the Sunflower Seed Sector

Kazakhstan: Technical Assistance to the Sunflower Seed Sector

Report Series - N. 14 - September 2009

Year of publication 2010

Pages 154 p.

Publisher FAO ;

Product type Document

Edition 1

Full item page

Synopsis (short abstract) Sunflower oil is by far the major vegetable oil consumed in Kazakhstan. The growing consumer demand has been largely met by imports rather than local production. From 2005 to 2007, the EBRD provided loans totalling USD 26 million to Turkuaz Edible Oil Industries, a subsidiary of Savola Group, to develop its vegetable oils production business in Aktobe. Results illustrated soon that sunflower yields could be increased if farmers used new sunfloweer seed hybrids even under low rainfall conditions. In 2007, FAO and the EBRD, with funding from the Government of Japan, agreed to provide technical assistance to help farmers in the region increase production and processing of sunflower seed using more efficient techniques. To ensure that the best international expertise was provided to local farmers, FAO worked together with Cetiom/Agropol to transfer know-how and provide training. Topics covered included planting, fertilization, weed control and harvesting. Sunflower seed hybrids were provid ed from seed companies in France and Ukraine and partners in Kazakhstan provided locally available and imported hybrids for demonstartion trials. In 2008, demonstration trials were conducted in two locations in the Aktobe region and 30 hybrids from different seeds companies were tested.

Language English

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In this report, we present a review of the oilseed production and processing sector in Ukraine. We begin by analysing oilseed, oil and meal supply and demand, and concentrate more specifically on sunflower seed. We then proceed to discuss the main policy issues that currently have an impact in the crushing sector. Throughout this report, it will become apparent that three key issues affect the crushing sector: a severe lack of credit; the 17% export tax, which reduces the domestic price of s eed; and the failure to reimburse value added tax for oil product exporters, which places a considerable burden on crushers.