Sunflower oil imports into the European Union (EU) from countries such as Kazakhstan and neighboring regions are becoming increasingly important, especially in the context of increased tariffs on oils from Belarus and Russia. Until now, countries such as Russia and Belarus have been important suppliers of sunflower oil to the EU market. The change in this situation has forced member countries to look for new trading partners.
MBF Group SA is an experienced importer of high-quality sunflower and rapeseed oil from Kazakhstan, working with trusted suppliers in the region. The company provides oils that meet the highest European quality standards, offering both refined and unrefined products tailored to the needs of the food and biofuel industries. With efficient logistics and knowledge of eastern markets, MBF Group SA enables timely deliveries and competitive terms of cooperation for customers from Poland and the European Union.
Kazakhstan: new player in refined and unrefined oils market
In this new situation, Kazakhstan is playing an increasingly important role in the EU vegetable oil market. This Central Asian country, with its vast farmland, has become an attractive alternative source of sunflower oil. Kazakhstan, like Ukraine, has favorable climatic conditions for sunflower cultivation, which makes it possible to produce high-quality oil.
Why oil from Kazakhstan?
Changes in the global vegetable oil market due to the conflict in Ukraine and the sanctions imposed on Russia and Belarus have created new opportunities for other producers. Kazakhstan, thanks to its natural resources and favorable geographic location, has become one of the main beneficiaries of this situation. The increase in sunflower oil imports from Kazakhstan to the EU is a long-term process that will contribute to the diversification of supply and increase food security in the European Union.
Availability of raw material
Kazakhstan has huge potential in terms of availability of raw material for sunflower oil production, which makes it an attractive trading partner for European Union countries. The vast farmland, which covers hundreds of thousands of hectares of land, is used to grow sunflowers, one of the key raw materials for vegetable oil production. Combined with favorable climatic conditions, Kazakhstan is able to provide a stable and predictable supply of high-quality raw material.
Kazakhstan authorities are actively supporting the development of the agricultural sector, including sunflower crops, through subsidy programs, infrastructure modernization and investment in agricultural technologies. This approach helps increase crop yields, reduce losses and improve crop quality, resulting in a more competitive offering on the international market.
In addition, Kazakhstan has a strongly developed network of local processors, which makes it possible to quickly transform raw sunflower into a finished product – sunflower oil. This allows the country to respond flexibly to market needs, supplying both crude and refined oil depending on customer requirements. This ability to use resources efficiently makes Kazakhstan a reliable supplier for countries seeking alternative sources of sunflower oil.
Product quality
Kazakh sunflower oil is gaining increasing recognition in international markets due to its exceptional quality that meets even the most stringent customer requirements. Kazakh-origin products are characterized by high purity, adequate color, and an excellent taste and nutritional profile, making them an attractive choice for both the food and technical industries. Kazakhstan’s sunflower crops are grown on fertile soils under favorable climatic conditions, resulting in healthy and oil-rich grains.
The high quality of Kazakh sunflower oil is also ensured by modern processing technologies used by local plants. Production processes meet international standards, such as ISO, HACCP and GMP, which guarantees safety and the highest level of hygiene. In addition, thanks to control at every stage – from seed harvest to processing – Kazakhstan offers oil with stable chemical parameters, such as low levels of free fatty acids (FFA) and an optimal peroxide number, which is crucial for food and biofuel customers.
Another advantage of Kazakh sunflower oil is its versatility. The product is available in both a refined version, which is suitable for direct consumption and processing in the food industry, and an unrefined version, valued in the technical and biofuel sectors. As a result, Kazakhstan is able to meet the diverse needs of its customers, providing oil that not only meets their quality requirements, but also exceeds their expectations.
Geographical location
Kazakhstan, thanks to its strategic geographic location, is uniquely positioned as a supplier of sunflower oil to European Union countries. Geographic proximity to EU member states significantly reduces transportation costs and time, an important factor for importers seeking logistically efficient solutions. Kazakhstan’s extensive transportation infrastructure, including railroads, roads and port access, enables it to provide efficient and reliable deliveries.
Kazakhstan’s integration into international trade corridors, such as the New Silk Road, which connects Central Asia to Europe, is a particular strength. This enables the rapid and efficient flow of goods, including sunflower oil, which further increases Kazakhstan’s competitiveness as an exporter. Combined with its proximity to markets such as Poland, the Czech Republic, Slovakia and Germany, Kazakhstan is an ideal partner for EU countries looking for stable and accessible sources of raw materials.
As an added benefit, Kazakhstan is actively developing trade cooperation with the European Union, which translates into simplified customs procedures and more favorable import conditions. Geographic proximity, combined with efficient logistics and Kazakhstan’s willingness to expand its presence in European markets, makes the country an ideal choice for companies looking for alternative sunflower oil suppliers.
International cooperation
Kazakhstan is actively developing its trade relations internationally, making it one of the most promising partners in sunflower oil supplies. The country is successfully building its position in the global vegetable oil market, intensifying cooperation with key customers in Europe, Asia and the Middle East. Support from the Kazakhstan government, in the form of export promotion initiatives and investments in agricultural and processing development, significantly facilitates integration into international supply chains.
Kazakhstan actively participates in international trade fairs and industry events, such as EXPO and conferences on agriculture and renewable energy, showcasing its products, including high-quality sunflower oil. This allows potential trade partners to learn about Kazakhstan’s offerings and establish long-term business relationships. In addition, cooperation with European Union countries and regions with high demand for vegetable oil, such as the Middle East, is supported by favorable trade agreements and simplified export procedures.
Thanks to these measures, Kazakhstan is not only expanding its markets, but also gaining a reputation as a reliable supplier, able to adapt to the needs and requirements of various sectors, such as the food and biofuel industries. Kazakhstan’s international cooperation is based on transparency, flexibility and attention to quality, making the country an attractive partner for companies looking for reliable sunflower oil suppliers in global markets.
Main export markets for sunflower oil from Kazakhstan
Kazakhstan, as one of the key producers of sunflower oil, has several major export markets that are becoming increasingly important in terms of global trade. Kazakhstan has significantly increased its sunflower oil exports in 2023, making it an important player in the international market. Here are the main countries that import sunflower oil from Kazakhstan:
- European Union: the EU is one of the world’s largest importers of sunflower oil. Faced with reduced supplies from Ukraine and Russia, Kazakhstan could become an important source of oil for member countries. EU sunflower oil imports have increased in 2023, creating opportunities for Kazakhstan producers
- Turkey: Turkey is also an important market for Kazakhstan sunflower oil. Turkey’s reduction of tariffs on vegetable oil imports promotes greater purchases of raw materials, including sunflower oil from Kazakhstan.
- Asian countries: Kazakhstan can increase exports to Asian countries such as India and China, which are large importers of vegetable oils. The increase in demand for sunflower oil in these countries is creating additional opportunities for Kazakhstani producers.
- Russia and Belarus: Despite sanctions and restrictions, Kazakhstan can also benefit from a situation in which traditional exporters such as Russia and Belarus face difficulties in accessing Western markets. This could lead to an increase in Kazakh oil exports to these countries
Factors influencing export destinations
- Trade agreements: Kazakhstan actively negotiates trade agreements with various countries, which facilitates the export of its products.
- Logistics: The availability of transportation, especially by rail and sea, is crucial for agricultural exports.
- Product quality: the high quality of Kazakh sunflower oil is one of the main factors attracting customers.
- Prices: competitive prices for sunflower oil from Kazakhstan make it attractive to importers.
Development prospects
The increase in sunflower oil imports from Kazakhstan to the European Union is a long-term trend driven by geopolitical changes and the EU’s search for alternative suppliers. With trade restrictions on imports from Belarus and Russia, Kazakhstan has become a key player in the global sunflower oil market. This development is influenced by the country’s extensive agricultural resources, high quality products and strategic geographic location, which together make Kazakhstan a reliable and competitive partner for European markets.
Continued demand for sunflower oil in EU countries will be a key factor in determining the pace and scale of imports from Kazakhstan. The EU market, which is one of the largest consumers of vegetable oils, offers significant growth opportunities for Kazakh exporters. Nevertheless, this development will depend on Kazakhstan’s ability to meet the high quality standards demanded by European customers and to maintain competitive prices. An additional challenge is competition from other major exporters, such as Ukraine and Argentina, which are also seeking to increase their share of the EU market.
Trade relations between Kazakhstan and the European Union are also shaped by changing trade policies and international agreements. Simplified customs procedures, favorable tariffs and government support for exports in Kazakhstan are already facilitating the flow of goods. However, possible changes in EU regulations or Kazakhstan’s export policy could affect the dynamics of this cooperation. In order to maintain and develop its position in the market, Kazakhstan needs to further strengthen its logistics infrastructure, maintain high product quality, and actively participate in international trade forums.
In the longer term, Kazakhstan’s commitment to building strong trade relations with the EU, combined with its natural advantages in sunflower cultivation, positions the country as a strategic supplier of sunflower oil. Responding to competitive pressures and aligning with EU standards, Kazakhstan has the potential to become one of the leading partners in meeting European demand for high-quality vegetable oils.
Challenges ahead for oil importers
While the prospects for developing sunflower oil trade between Kazakhstan and the EU are promising, there are also some challenges. These include:
- Logistics: In order to effectively develop sunflower oil trade between Kazakhstan and the EU, it is necessary to improve supply chains, including the construction of modern transshipment terminals and the optimization of rail and sea transport.
- Quality standards: Kazakhstan should invest in modern processing technologies and quality control systems to meet stringent EU standards for food safety and certification of agricultural products.
- Seasonality of production: The challenge of seasonality can be mitigated by the development of raw material storage infrastructure and the introduction of long-term contracting strategies with European importers, which will ensure continuity of supply despite fluctuations in the production cycle.
Summary
Kazakhstan has become an important player in the global sunflower oil market, thanks to favorable climatic conditions and large cultivated areas. Changes in the market due to the conflict in Ukraine and the sanctions imposed on Russia and Belarus have further increased the importance of Kazakhstan as a supplier of this raw material.
The market for sunflower oil imports into the European Union is undergoing significant changes due to customs policies and global conditions. Kazakhstan and neighboring countries can play a key role as alternative sources of supply. With rising prices and availability problems, it is necessary for EU member states to monitor the situation and adjust their import strategies