Lika Khoptyanets on Black Sea markets/
“Kazahkstan had massive quality issues due to lack of experience”

You have worked in the agricultural trade for the last seven years. During this time, what are some of the biggest changes you have seen?

One of the biggest challenges we faced was the COVID-19 pandemic, which completely shook and changed the markets.Another huge change was when China started expanding into the global agricultural market.

Can you tell us about this year's harvests in Ukraine and Kazakhstan?

Well, the war in Ukraine certainly lowered harvest expectations, and Ukrainian ports are now closed, so most of the exports are now focused on the EU.
In Kazakhstan, there were massive issues with the quality of lentils. This harvest was not fruitful due to strong rains, and many sprouted and wrinkled parcels. Also, because of a lack of experience, some farmers mixed the first harvest – that was done before the rains – which was of top quality with this last one. We are also seeing that lentil exports are mainly focused on Iran and Turkey, whereas the pea harvest was stable, and mostly focused on Central Asia, Afghanistan, and Russia.

Can you tell us more about production quality?

The Ukrainian quality has worsened during the war, and it continues to fluctuate between good and bad because, unfortunately, there are still several issues with things related to production, such as pesticides.
In Kazakhstan, the raw material quality is unstable due to weather issues and a lack of quality seeds. However, Kazakhstan has now invested in cleaning and processing plants, which should help with these issues.

Kyrgyzstan still has problems with seeding material, but the quality in Kyrgyzstan is in high demand, particularly from Caucasian countries and the Balkan regions.

What are the export prospects for Kyrgyz white beans? Who are the main competitors in that market?

They export around 90% of their production, the rest for seeding and domestic use.

The main competitors in white beans are Canada, USA, Argentina, and Ethiopia. There are also many different types of white beans, so it depends on factors such as the demand of the client, and the size, sort and origin they are looking for.

What are the pricing expectations for Kazakh red lentils?

There is a huge difference in quality here because of rains during the harvest season. So, for example, quality prices, such as those we see in Canada, are skyrocketing, but there are still volumes with a high percentage of stained and wrinkled lentils left. I expect that even high wrinkled lentil prices will grow significantly by the end of the season.

How are logistics out of the Black Sea?

In Ukraine, the delivery time is longer because Ukrainian logistics mainly use Romanian and Bulgarian ports, and in Kazakhstan and Kyrgyzstan they use Georgian and Russian Black Sea ports, which has the problem of an overloaded railway, which leads to much longer than expected delivery times.

Although your family focuses on Ukraine and Kazakhstani exports, your expertise is more international, with a focus on origins such as South America. How has the current economic landscape affected trade this year, specifically in South America?

In Argentina this year, business has been very slow because it was impacted by several factors such as inflation, presidential elections and foreign currency issues. Nevertheless, South America will always be a very large and crucial supplier for the world.

We are also seeing prices in Africa and Asia becoming more competitive.

What do you think the future is going to hold? Are Kazak farmers motivated to plant more beans and lentils?

Kazakh farmers are mainly looking at market prices because the quality of lentils is completely weather-dependent and logistics to the main ports from Kazakhstan are complicated and costly. In Kyrgyzstan, there is limited acreage.

I would like to support farmers in the Kazakh import market and encourage them to keep working on quality and logistical improvements. We also need to invest in machinery, education and discipline.

Are we beginning to see the pulse industry in Kazakhstan formalize and standardize more?

While seeding material is local, both Kazakhstan and Kyrgyzstan use Russian standards. Both countries are also investing in cleaning and processing equipment, with Kyrgyzstan buying Turkish and Chinese, and Kazakhstan buying European and Turkish.