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Ralph Jennings

China and Kazakhstan, its Central Asian neighbour and strategic partner, are set to launch a joint grain-trading platform to bolster food security – a long-standing priority for Beijing and a pressing global concern following the outbreak of the Iran war.
The two sides agreed to the initiative during a meeting in Astana on Thursday between Kazakh Agriculture Vice-Minister Yermek Kenzhekhanuly and Liu Huanxin, head of China’s National Food and Strategic Reserves Administration, the Kazakh state-owned Kazinform News Agency reported.
It would allow both sides to conduct business through competitive bidding and direct negotiation, with the “main focus” on soybeans and other oilseed crops, according to the report.
The move comes as Central Asia emerges as a strategic region for Beijing, as it pushes to diversify agricultural imports and safeguard food security amid geopolitical uncertainty.
The UN Food and Agriculture Organization warned on Wednesday of the “beginning of a systemic agrifood shock that could trigger a severe global food price crisis within six to 12 months”, as the effective closure of the Strait of Hormuz prevents the export of fertilisers and other agricultural inputs.
China codified food security into law in 2023 and, in recent years, policymakers have prioritised the use of technology to boost agricultural productivity amid mounting constraints on arable land and water. Lynn Song, chief economist for Greater China at the Dutch investment bank ING, said a lack of these resources had already prompted Beijing to import high volumes of soybeans.
In Astana, Liu, the head of China’s national food reserves administration, noted his country’s role in “ensuring food security and building sustainable supply chains”, the news agency reported.
The launch of the bilateral platform followed a nearly 37 per cent increase in agricultural trade turnover between the Asian neighbours last year, bringing the total to US$1.97 billion, according to the report. Kazakhstan’s grain exports were growing by 13 per cent year on year, while about 3,600 of its enterprises were authorised to export to China, it added.
The new grain trading system would form part of the Belt and Road Initiative and was modelled on China’s National Internet Grain Trading Platform, the news agency reported. The latter serves as a state-run agricultural commodity marketplace, used for state reserve auctions, market stabilisation and large-scale commercial trade.
Kazakhstan could align with China’s objective of “diversifying” food import sources to avoid dependence on certain suppliers, said Song of ING.
The bilateral trading platform, he added, would “help by aggregating and centralising supply and demand to allow for better pricing and scaling of agricultural trade”.


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Economy

China Economy

The agreement highlights Beijing’s push to rewire agricultural supply chains, as it seeks to reduce vulnerability in global markets


The agreement highlights Beijing’s push to rewire agricultural supply chains, as it seeks to reduce vulnerability in global markets.


China, Kazakhstan set to launch food security trade platform in wake of Iran war

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The agreement highlights Beijing’s push to rewire agricultural supply chains, as it seeks to reduce vulnerability in global markets

The agreement highlights Beijing’s push to rewire agricultural supply chains, as it seeks to reduce vulnerability in global markets