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Kazakhstan launches grain processing buildout to expand wheat and corn use
The US Foreign Agricultural Service expects Kazakhstan wheat production to fall 20% in 2026-27 after hot, dry weather cuts output to 15 million tonnes from 19.3 million tonnes.
Kazakhstan’s grain-processing and milling sectors are expanding as new deep-processing investments come online, with the US Foreign Agricultural Service saying the effort reflects a shift away from raw grain exports toward higher-value industrial uses.
The FAS estimates Kazakhstan’s $2.6 billion government program to develop starch, syrup, amino acids, and vitamins by 2028 will add about 4.8 million tonnes of additional wheat and corn processing capacity. The agency also cited dozens of new food and feed projects intended to raise utilization across the milling sector.
For demand mix, the FAS said feed and residual consumption are expected to drive most of the projected feed wheat flour output, with wheat consumption comprising 80% wheat and 20% barley. It added that wheat use for fuel ethanol remains negligible, with no evidence of large-scale cereal-based ethanol production.
The outlook also includes weather-driven pressure on supply. The FAS forecasts Kazakhstan’s wheat production will drop 20% in the 2026-27 marketing year to 15 million tonnes, down from 19.3 million tonnes in 2025-26, and expects wheat exports to fall 20% year on year in 2026-27.
Latest closeWheat $674.25 ▼0.5%|Corn $463.50 ▲3.6%