Government decided to allocated KZT 7.2bn (USD 59.93mn) for capitalization of National Food Corporation. According to PM Karim Masimov, the relevant orders were forwarded to FinMin and EconMin. PM stressed that the company already has KZT 10.8bn of own funds that can be used to purchase grain.

 

As we reported earlier National Food Corporation plans to purchase 600thsd tons of grain to stabilization fund during the harvest period when the prices are low. The collected grain will be sold for interventions when domestic prices increase after the New Year. In 2007, National Food Corporation raised net profit by 70% y/y to KZT 433mn (USD 3.6mn). Revenues rose 4.5% y/y to KZT 23.4bn while cost of goods sold decreased 1.3% y/y to 18.92bn. Assets went up 27.9% through 2007 to KZT 74.297bn. Liabilities increased by 33.9% to KZT 48.11bn. National Food Corporation is a part of KazAgro. It operates 10 regional offices in Kazakhstan and has representatives in UK , Russia , China , Iran and Azerbaijan . The company is the operator of grain purchase and the government’s grain reserves.