Kazakhstan's Agricultural Industry: Why Logistics Has Become a Growth Driver
Over the past 10 years, Kazakhstan's strategic agricultural sector has seen a growth of more than 22%. It provides employment, food security, and builds the country's export potential. In October, business representatives summarize the season at the exhibitions “KazFarm/KazAgro” in Astana and “AgroWorld” in Almaty.
Almost 4% of Kazakhstan's GDP is generated by the agricultural sector, one of the country's long-term development pillars. Kazakhstan supplies 2-3% of global wheat and barley exports. Additional opportunities are opening up in the organic farming - by 2024, eight organic producers were registered in the country, with beef, lamb, and horse meat attracting interest from China and the Persian Gulf countries.
Almost 4% of Kazakhstan's GDP is generated by the agricultural sector, one of the country's long-term development pillars. Kazakhstan supplies 2-3% of global wheat and barley exports. Additional opportunities are opening up in the organic farming - by 2024, eight organic producers were registered in the country, with beef, lamb, and horse meat attracting interest from China and the Persian Gulf countries.
Technological Modernization: Challenges and Dependence
Along with active development of local production and support, further growth of the industry is directly dependent on technological modernization. Kazakhstan, however, remains partially dependent on imports for machinery, equipment, and agricultural technologies.
Modern combine harvesters, tractors, irrigation systems, crop protection products, high-quality seeds, and specialized fertilizers are primarily imported from Europe, the United States, and Southeast Asia. Producers’ ability to compete in global markets, producing high-yield, high-quality products, directly depends on the level of modernization and technical support of their farms. An effective Supply Chain for machinery, components, and spare parts is an important factor in competitiveness in the industry.
Modern combine harvesters, tractors, irrigation systems, crop protection products, high-quality seeds, and specialized fertilizers are primarily imported from Europe, the United States, and Southeast Asia. Producers’ ability to compete in global markets, producing high-yield, high-quality products, directly depends on the level of modernization and technical support of their farms. An effective Supply Chain for machinery, components, and spare parts is an important factor in competitiveness in the industry.
Critical Challenges in Agrilogistics
Logistics for the agricultural industry faces the same pressures as other sectors, including geopolitical restrictions and significant exchange rate fluctuations. Additional factors affecting supply chain efficiency include:
• Strict adherence to phytosanitary restrictions of exporting, importing, and transit countries. Failure to comply with requirements or changes to standards in other countries can lead to delays in the delivery of goods or even a blanket ban on shipments from an entire country;
• Seasonality - the supply of equipment, spare parts, fertilizers, and seed must be structured so that farmers have time to prepare for fieldwork, in conjunction with specialist logistics advice and services, particularly during peak periods.
• Geography: Many farms are remote, located at significant distances from major transportation hubs. This makes the logistics of raw materials, equipment, and finished products a critical element of business efficiency.
• Strict adherence to phytosanitary restrictions of exporting, importing, and transit countries. Failure to comply with requirements or changes to standards in other countries can lead to delays in the delivery of goods or even a blanket ban on shipments from an entire country;
• Seasonality - the supply of equipment, spare parts, fertilizers, and seed must be structured so that farmers have time to prepare for fieldwork, in conjunction with specialist logistics advice and services, particularly during peak periods.
• Geography: Many farms are remote, located at significant distances from major transportation hubs. This makes the logistics of raw materials, equipment, and finished products a critical element of business efficiency.
Localization and Service: New Market Trends
Focusing on production localization - the issue of updating the agricultural machinery fleet is particularly pressing, as much of the specialized equipment currently in use, needs replacing. In 2017, imported equipment accounted for over 50% of the market. Thanks to the preferential leasing program, up to 90% of domestic demand for tractors and combines is now met by domestic production.
Both local and international players are strengthening their market presence: Finnish SAMPO, Chinese ZOOMLION, and American John Deere, have begun localizing production and expanding their service infrastructure in Kazakhstan. Service companies provide on-site support from strategically placed warehouses or even perform partial assembly, gaining a competitive advantage. Service and spare parts availability are as valuable as the equipment itself.
Both local and international players are strengthening their market presence: Finnish SAMPO, Chinese ZOOMLION, and American John Deere, have begun localizing production and expanding their service infrastructure in Kazakhstan. Service companies provide on-site support from strategically placed warehouses or even perform partial assembly, gaining a competitive advantage. Service and spare parts availability are as valuable as the equipment itself.
WELLGO: Logistics Solutions for the Agricultural Industry
Today, the agricultural sector is unfeasible, without a reliable technological infrastructure and seamless logistics. A combine harvester or irrigation system delivered after the season has started, loses its advantage, possibly disrupting the harvest. Every day of delay impacts the harvest, and during harvesting or sowing, equipment downtime can mean direct financial losses. Agricultural efficiency requires speed and predictability of international deliveries.
WELLGO offers solutions based on our experience in the agricultural sector.
We organize transportation with an understanding of our clients' seasonal priorities and equipment specifics.
• Road and multimodal transportation – we develop proposals tailored to deadlines, budgets, and geographic locations, enabling efficient cargo delivery throughout Kazakhstan.
• Air freight – we organize urgent spare parts deliveries for urgent repairs and cost-effective solutions for regulatory requirements. WELLGO offers warehouse replenishment, as well as special solutions for the delivery of large machinery and equipment from Europe, the USA, and Southeast Asia.
• Transportation of oversized equipment and machinery – we provide transportation of tractors, seeders, sprayers, and production lines, including route coordination, permits, and technical support throughout the entire journey.
• Road and multimodal transportation – we develop proposals tailored to deadlines, budgets, and geographic locations, enabling efficient cargo delivery throughout Kazakhstan.
• Air freight – we organize urgent spare parts deliveries for urgent repairs and cost-effective solutions for regulatory requirements. WELLGO offers warehouse replenishment, as well as special solutions for the delivery of large machinery and equipment from Europe, the USA, and Southeast Asia.
• Transportation of oversized equipment and machinery – we provide transportation of tractors, seeders, sprayers, and production lines, including route coordination, permits, and technical support throughout the entire journey.
WELLGO Cases in Agro logistics
Equipment Delivery to an Exhibition
Cargo: Tractor and a new model 8-row seeder
Route: Delivery from the warehouse to the exhibition centre and back, within strict timeframes.
Requirement: Maintain the exterior condition for the exhibition (not exposed to the conditions of standard transportation for outdoor equipment).
• Special packaging was provided to preserve the quality of the exterior finish and allow the client to display the equipment at the exhibition without additional cleaning and polishing.
• Delivery and collection time windows were agreed upon, as well as processing at the exhibition.
The equipment was delivered to the exhibition on time and picked up after the event on time.
Expedited Delivery of an Oversized Sprayer
Cargo: Self-propelled sprayer with an initial height of over 4.4 meters.
Weight: 9.6 tons
Route: Over 650 km, including regional and local roads, as well as bridges and overpasses with limited clearance.
• The solution required minimizing oversized loads to ensure optimal routing options. The sprayer was partially dismantled (wheels and axles removed), resulting in a height of less than 4 meters. Fragile components were securely packed using specialized tie-downs on a custom-made frame to ensure cargo safety.
• Proper route planning helped avoid disruptions and additional costs, resulting in on-time delivery and cargo safety.
• The cargo was safely delivered and assembled according to the client's specifications within the agreed-upon timeframe.
Cargo: Tractor and a new model 8-row seeder
Route: Delivery from the warehouse to the exhibition centre and back, within strict timeframes.
Requirement: Maintain the exterior condition for the exhibition (not exposed to the conditions of standard transportation for outdoor equipment).
• Special packaging was provided to preserve the quality of the exterior finish and allow the client to display the equipment at the exhibition without additional cleaning and polishing.
• Delivery and collection time windows were agreed upon, as well as processing at the exhibition.
The equipment was delivered to the exhibition on time and picked up after the event on time.
Expedited Delivery of an Oversized Sprayer
Cargo: Self-propelled sprayer with an initial height of over 4.4 meters.
Weight: 9.6 tons
Route: Over 650 km, including regional and local roads, as well as bridges and overpasses with limited clearance.
• The solution required minimizing oversized loads to ensure optimal routing options. The sprayer was partially dismantled (wheels and axles removed), resulting in a height of less than 4 meters. Fragile components were securely packed using specialized tie-downs on a custom-made frame to ensure cargo safety.
• Proper route planning helped avoid disruptions and additional costs, resulting in on-time delivery and cargo safety.
• The cargo was safely delivered and assembled according to the client's specifications within the agreed-upon timeframe.
Agriculture Today
Agriculture is at a stage where growth is determined not only by natural resources, but also by the level of technological advancement, the quality of infrastructure, and the speed of integration into international supply chains. Companies who ensure the sustainability of these processes gain a competitive advantage in the long term.
WELLGO Logistics Kazakhstan provides comprehensive logistics solutions with care and responsibility for your cargo!
WELLGO Logistics Kazakhstan provides comprehensive logistics solutions with care and responsibility for your cargo!