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Kazakhstan Expands Oilseed Cultivation by 30%, Intensifying Competition in China's Sunflower Oil Market

Fats and oils processing
August 15, 2026
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Kazakhstan has reported a significant expansion in its oilseed crop areas, with an increase of 30% to reach 5.179 million hectares in 2026, compared to the previous year. This growth is a direct result of a national policy aimed at diversifying sown areas and bolstering the role of oilseed crops within the agricultural production structure, according to data from the National Statistics Bureau of Kazakhstan.

The most substantial increase was observed in sunflower cultivation, the country's primary oilseed crop, which saw its area grow by nearly 25% to a record 2.202 million hectares. This figure is 2.3 times higher than in 2021, reflecting consistent growth over the past five years. Additionally, local farmers have expanded the acreage dedicated to other oilseed crops, including rapeseed, flax, cotton, and safflower.

This increase in cultivated land is attributed to rising demand for raw materials from domestic processing enterprises, as well as an uptick in exports of Kazakh oil and fat products, which were supplied to 23 countries globally this season, as explained by the National Association of Oilseed Processors.

Kazakhstan currently possesses industrial capacities capable of processing over 5.2 million tons of oilseeds annually, with 4.4 million tons dedicated to sunflower. The country has ambitious plans to implement large-scale investment projects over the next two years, aiming to construct new oil refineries with a combined capacity exceeding 3 million tons of oilseeds per year.

The main purchasers of Kazakh sunflower oil are Central Asian countries and China. In the Chinese market, Kazakhstan is intensifying its competition with Ukrainian and Russian oil. The disruption of supplies through Black Sea ports has further allowed Kazakhstan to maximize its influence in the Chinese market, particularly in relation to Russian oil suppliers. Between 2021 and 2026, Ukraine significantly reduced its sunflower oil exports to China, moving from record volumes and a position as a primary supplier to accounting for only several percent of China's total import structure. Historically, China was the second-largest importer of Ukrainian sunflower oil after India, purchasing over 1 million tons annually and covering half of China's sunflower oil import needs, but has sharply curtailed its supplies in recent years.

Source: Ukrainian Grain Exchange