Kazakhstan expands fertilizer production to boost food security and exports

Kazakhstan is embarking on an ambitious plan to bolster its fertilizer industry, aiming to achieve self-sufficiency and tap into export markets by 2030. President Kassym-Jomart Tokayev has prioritized expanding domestic production to lessen reliance on imports and enhance export capabilities.

The strategy focuses on developing nitrogen and potassium fertilizer production, as Kazakhstan already has an established phosphate industry. The KazAzot Prime complex in the Mangystau Region is set to become a cornerstone of this expansion. By 2030, it is projected to produce 660,000 tons of ammonia and 577,500 tons of urea annually. This facility is expected to more than triple national ammonia capacity and establish Kazakhstan's first industrial-scale urea production, creating approximately 700 jobs.

Currently, Kazakhstan imports all its potassium fertilizer, despite possessing substantial reserves. The Qazaq Kalium project, targeting the Satimola deposit, plans to produce 1.5 million tons of potassium fertilizer annually by 2030. This output could largely serve export markets, even with projected domestic demand increases.

Domestically, fertilizer use is rising sharply, with targets set to reach 73% of scientifically justified demand by 2026. However, current application rates remain low compared to global averages. The government supports farmers with state compensation covering up to 60% of fertilizer costs.

Successful implementation of these projects, coupled with sustained growth in domestic fertilizer use and effective access to international markets via the Middle Corridor transport route, could position fertilizers as a key high-value export for Kazakhstan.