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Kazakhstan Strengthens Its Position in the Chinese Market and Ranks Second in Sunflower Oil Exports

Kazakhstan Strengthens Its Position in the Chinese Market and Ranks Second in Sunflower Oil Exports

Kazakhstan’s oil processing enterprises have significantly increased supplies of oil and fat products to the Chinese market. According to the results of 2025, the country ranked second among suppliers of sunflower oil to China with a market share of about 36%.

According to industry data, total exports of Kazakhstan’s oil and fat products to China increased by 44% in 2025, reaching 440 thousand tons. Export revenue also rose by 37%, totaling $312 million.

One of the key factors behind this growth has been improvements in logistics and export planning mechanisms. According to Alexander Buzhenitsa, Commercial Director of the oil processing plant Qazaq-Astyk Group LLP, an important role was played by the joint work of the industry association and the national railway operator JSC NC Kazakhstan Temir Zholy (KTZ).

In February 2024, a pilot mechanism for coordinating export shipment plans for vegetable oils in railway tank cars through the Dostyk–Alashankou border crossing was launched. The new approach made it possible to exclude intermediaries — trading and forwarding companies that previously submitted transportation requests without having actual contracts or product volumes.

According to Buzhenitsa, the large number of such applications previously exceeded the capacity of the border crossing, which led to underperformance of export plans. In addition, intermediaries often occupied transportation slots and offered to act as brokers between Kazakh producers and Chinese importers.

After the mechanism was revised, only actual producers submitting applications based on real contracts and confirmed volumes remained in the system. This significantly improved logistics efficiency.

Previously, the fulfillment of monthly shipment plans toward China did not exceed 40%. Since early 2024, however, this indicator has consistently exceeded 90%.

Industry representatives note that stable supplies to the Chinese market help maintain competitive export prices and support favorable purchasing prices for agricultural raw materials from domestic farmers.

In March this year, the Association together with KTZ also launched a pilot project to coordinate export plans for granulated sunflower meal transported in grain wagons to China. The new mechanism is based on the already successful system used for sunflower oil shipments and is aimed at further expanding exports of oil and fat products to the Chinese market.

Zakon.kz