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20 February 2025

Kazakhstan And Latvia Shift Export Strategies Amid Global Pressures

Kazakhstan sees sharp increases in agricultural exports, as Latvia adjusts to declining trade numbers.

Kazakhstan has made remarkable strides in its export strategies, particularly focusing on agricultural products, with extensive figures highlighting the sector's growth compared to previous years. The most recent data from Kazakhstan's National Company Kazakhstan Temir Zholy (KTZ) indicates the transportation of 6.7 million tons of grain during the first half of the 2024/25 agricultural year. This includes 5.3 million tons destined for export, reflecting an impressive 48.3% increase, as reported by the Ministry of Agriculture of Kazakhstan.

Exports to Central Asian neighbors have significantly contributed to this growth. Notably, Uzbekistan imported 2 million tons of grain, marking a 34.9% rise compared to the same period last year, with Tajikistan and Afghanistan also increasing their imports by 47% and 37%, respectively. Kazakhstan's grain exports to Iran surged drastically, increasing 20-fold to 644 thousand tons. Similarly, Azerbaijan saw imports jump 79 times, amounting to 319 thousand tons.

Delving more deeply, the export strategy for Kazakhstan's agricultural products is clearly geared toward maximizing its trading capabilities. The country aims to diversify its export routes and product ranges. Beyond grains, Kazakhstan also reported transporting 3.2 million tons of flour last year, with 2.4 million tons exported, which is up 3% from the previous year. The primary markets for Kazakh flour include Central Asia and China, underscoring the importance of these trade relationships for Kazakhstan's agricultural sector.

Turning to the Baltic region, Latvia's trade figures reveal divergent trends. Last year, Latvia exported products to 203 countries but faced declines totaling 1.9% compared to 2023, with export values reaching 18.68 billion euros. The import figures reflect similar challenges, dropping 7.4% to 21.68 billion euros, leading to an overall drop of 4.9% in foreign trade turnover.

Despite the downturn, certain export categories bucked the trend; growth was seen particularly among wood-related products and food industry goods. For example, the export of timber increased by 5.3% over the past year. Latvia's most significant trading partners include neighboring countries such as Lithuania and Estonia, reflecting the regional ties and reliance on neighboring economies for trade. Latvia's agricultural products, especially, were prominent within these exports, emphasizing the country's strengths within European Union markets.

Key to these export strategies is the impact of shifting geopolitical landscapes, which have led countries to reevaluate their trade relationships. This dynamic was especially true for Latvia, where exports to Ukraine fell by 41.6%, attributed primarily to reduced mineral exports. Imports from Ukraine similarly shrank, reflecting broader political and economic tensions affecting trade flows.

Examining the broader picture, Kazakhstan is not only strengthening its existing export channels but is also developing new opportunities. The Kazakh government is actively planning to export meat products to Turkey, led by the Deputy Minister of Agriculture, Ermek Kenzhekanuly. He highlighted the significance of previous collaborations, with trade volumes between Kazakhstan and Turkey reaching around 285 million dollars last year, underscoring both countries’ agricultural sectors' synergy.

The strategic direction of Kazakhstan's export policy suggests it is positioning itself to capitalize on both regional and global markets, particularly through commodities such as grains and meats, and is creating frameworks for cooperative trade agreements. The cooperation with Turkey for meat exports signifies Kazakhstan’s determination to expand its agricultural footprint.

Highlighting the contrasting experiences of these two nations—Kazakhstan's rapidly growing agricultural exports against Latvia's struggle with declining trade figures—offers a compelling narrative on how countries navigate the complex waters of international trade. Both countries are adapting their strategies, providing insight not just on their export capabilities but on the broader shifts occurring within global trade networks.

Overall, as Kazakhstan forges new pathways for its grain and meat exports, and as Latvia continues to adapt its trade strategies amid changing international dynamics, both reflect how interconnected and responsive trade relationships can be amid global economic uncertainty. The importance of agriculture as a focal point for export strategies reinforces it as not just policy but also as a lifeline for economic vitality within these nations.