Concluded a framework agreement on cooperation and trade wheat between China and the Republic of Kazakhstan. The document, which involves the expansion of Kazakh wheat exports to the neighboring country, on behalf of the two countries signed by the Chairman of the Board of JSC “National Holding” KazAgro “Dulat Aytzhanova and vice-president of China National Company” KOFKO Corporation Limited “Jintao Kyi.
Agreement is reached within the past 19-20 May state visit to China President Nursultan Nazarbayev.
Under the bilateral document KOFKO Corporation, which informed about the plans of the Holding “KazAgro” to expand exports to China, intends to import 100 tonnes of Kazakh wheat from the Holding “KazAgro” during the 2014/15 years at fair market value.
In addition, in order to increase wheat trade between the two countries, as well as for transit trade to third countries, both sides expressed readiness to discuss co-financing the construction of a grain terminal handler.
According to one provision of this Agreement, in the long term on the basis of real demand for Kazakh wheat in the Chinese market, the Corporation KOFKO and Holding “KazAgro” intend to make joint efforts to increase wheat trade between China and Kazakhstan provided the implementation of trade in compliance with all the principles of a market economy .
As the results of negotiations head Holding “KazAgro” Dulat Aitzhanov, China is one of the most strategically important markets for Kazakh wheat and other grains and oilseeds and signed agreement – this is one of the first steps in establishing stable trade relations in the supply of grain between the two countries .
KOFKO – a diversified state organization occupies a monopoly position in the food market of the PRC, conducting procurement and trading of maize, rice, wheat, as well as carrying out the deep processing of grain. Founded in 1952, KOFKO is one of the largest state-owned enterprises of 49 directly administered by the State Council.