Kazakhstan is working to expand the industry of processing onions. The officials from the Zhetysu region are working in conjunction with Chinese investors to set up an industrial plant to make and then freeze onions for export. The plan aims to create employment, increase tax revenues, and cut down the nation’s dependency of raw onion exports.

By 2024 Kazakhstan has harvested 7566,000 tonnes of onion. The absence of storage facilities that are adequate forces farmers to market their produce rapidly at bargain prices. The majority of harvests are exported, mostly to Pakistan (44 percent) as well as Russia (36 percent) and Russia, where consumers typically pay 27 tenge per kilogram (EUR0.05). Then, Kazakhstan imports onions back for a higher price, which is around 70 tenge per kilo(EUR0.14).

As the price of onion fluctuates between 39 to 122 tenge for each kilogram (EUR0.08-EUR0.21) The experts think the process of processing onions rather than exporting them in raw form could stabilize the market, and also increase profit margins for local growers.

The onions processed for processing are in huge demand throughout Europe and in the U.S., where restaurants as well as food establishments like frozen, pre-cut and pre-cut food items because of convenience and hygiene concerns. Some countries such as Ukraine as well as India, Ukraine Netherlands, China, and India are already the top players in this sector providing ready-to-use onions to food companies around the world.

Ukraine For instance, it has created a thriving onion processing industry, where onions are cleaned, cut to size, then frozen before being packaged to be shipped out for sale. This process avoids the strict control of borders that are imposed on fresh vegetables and enhances the value of the product.

The entry into the world market for processed onions will not be an easy task. Kazakhstan is competing with established players, logistical issues and the necessity to obtain strict certifications for food safety like HACCP, ISO, and FDA. Without these certifications exports to the major market segments will not be possible.

The local market for onions frozen is undeveloped as the consumers of Kazakhstan and across the CIS like fresh onions. If exports don’t succeed there is a chance that local demand will not be sufficient to sustain the company.

The experts say that in order in order for Kazakhstan’s onion processing sector to be successful, support from the government will be crucial.

Source: www.caravan.kz