Kazakhstan and Cambodia discussed agricultural trade and a possible memorandum

Kazakhstan and Cambodia plan to expand agricultural trade and explore joint projects in processing and investment.

Kazakhstan and Cambodia discussed agricultural trade and a possible memorandum

Kazakhstan's Minister of Agriculture Aidarbek Saparov discussed this with Cambodia's Minister of Agriculture, Forestry and Fisheries Dith Tina. The Kazakh side proposed working out supplies of wheat, beef and lamb, the Ministry of Agriculture's press service reports.

The gist in brief

  • Kazakhstan proposed wheat to Cambodia, as well as beef and lamb, including halal.
  • Cambodia is interested in Kazakh apples and meat, and trade ties in fish farming were also discussed.
  • According to the Ministry of Agriculture, grain exports over the past marketing year reached 15.3 million tonnes, which is 70% more than a year earlier.
  • For further work, Saparov proposed creating a joint working group, and the Cambodian minister proposed cementing the agreements with a memorandum.

What Kazakhstan proposed

Saparov named grain trade as the main direction. According to him, for two years in a row the grain harvest in Kazakhstan has exceeded 27 million tonnes. Grain exports over the past marketing year, that is, the period from one harvest to the next, amounted to 15.3 million tonnes, 70% more than a year earlier. The minister noted that this is the highest figure in the last 20 years.

With this in mind, the Kazakh side proposed working out supplies of wheat to Cambodia, taking into account the needs of the local market, quality requirements and logistics conditions.

Meat, apples and fish

Separately, the meeting participants considered the export of beef and lamb, including halal products, that is, produced according to Islamic requirements. Dith Tina stated his interest in expanding imports of Kazakh products, including apples and meat. In addition, the sides outlined prospects for trade ties in fish farming.

What next

Saparov proposed creating a joint working group. It will deal with the terms of mutual supplies, access of products to the markets of the two countries, direct contacts between producers and importers, as well as assessment of joint projects in processing and investment. The Cambodian minister proposed continuing work on the agreed areas and cementing the main agreements with a memorandum of cooperation.

What happened earlier

Supplies of agricultural products to Cambodia were also discussed at the level of presidents. In July, Kassym-Jomart Tokayev met with Cambodian Prime Minister Hun Manet on the sidelines of the World Conference on Artificial Intelligence in Shanghai. According to a report by Akorda, Kazakhstan announced its readiness to increase supplies of grain, fertilizers and other agricultural goods, and Hun Manet invited Tokayev to visit Cambodia.

What this means for Kazakhstan

Wheat supplies abroad are also linked to domestic trade rules. Under new rules for trade in agricultural goods, exporters of wheat and barley, as well as large market participants, must sell on the exchange at least 5% of the volume of grain sold off-exchange in the previous month. Farmers and agricultural producers are not covered by this requirement.

Author's conclusion

The meeting of the ministers continues the July conversation between the presidents and moves it into a practical dimension: a working group and a possible memorandum. For now these are intentions; the volumes of supplies, prices and timelines are still to be agreed by the parties. It is worth watching for the creation of the working group and the signing of the memorandum.