Kazakhstan Braces for Wheat Shortage As Country Contends With War in Neighboring Ukraine

Diminished Exports to Drive Price Increases and Worsen Food Crisis

Kazakhstan, one of the world's leading wheat exporters, is facing a looming wheat shortage due to the ongoing war in neighboring Ukraine. The conflict has disrupted supply chains and pushed up global wheat prices, putting pressure on Kazakhstan's own domestic supply.

Rising Prices and Food Crisis

Wheat is a staple food in Kazakhstan, and the shortage is expected to lead to price increases and worsen the country's food crisis. The government has already warned that wheat prices could rise by up to 20% in the coming months.

The price increase will affect consumers, particularly those who depend on bread and other wheat-based products as a major part of their diet. The government is considering subsidies to help low-income families cope with the price hikes.

Disrupted Supply Chains

The war in Ukraine has disrupted Kazakhstan's wheat export routes. Kazakhstan typically exports wheat through Russian ports, but the conflict has made these routes inaccessible. The country is now seeking alternative export routes through the Caspian Sea and Asia.

The disruption in supply chains has also made it difficult for Kazakhstan to import wheat from other countries. As a result, the country is facing a double whammy of reduced exports and increased import costs.

Government Measures

The Kazakh government is taking steps to address the wheat shortage. The government has announced plans to increase wheat production by 10% in 2023. It is also providing subsidies to farmers to encourage them to increase acreage.

The government is also working to secure alternative export routes. Kazakhstan has signed agreements with China, Iran, and Afghanistan to export wheat through their ports.

Global Impact

The wheat shortage in Kazakhstan could have a significant impact on the global wheat market. Kazakhstan is the fifth-largest wheat exporter in the world, and the reduced exports could lead to further price increases.

The conflict in Ukraine has already caused a spike in global wheat prices, and the shortage in Kazakhstan could put further upward pressure on prices. This could have a knock-on effect on food prices around the world.