«There is no need to be afraid of a price reduction, because the world balance is very tense. Last year, grain consumption and production leveled in the world, production always exceeded, but consumption is increasing annually in the world, and they are at the same level now» said Nurlan Tleubayev at a meeting on the development of the agricultural sector involving Kazakh Deputy Prime Minister Serik Akhmetov.

The grain price will not drop in the current year, the president of the Kazakhstan Grain Association Nurlan Tleubayev said, Kazinform reports. The republic’s current projections on the yield are quite modest and stand at 13-15 million tons. Kazakhstan has managed to harvest nearly 30 million tons of grain in bunker weight in fall 2011 largely thanks to good weather conditions. Meanwhile, the European agency, Strategie Grains, lowered its forecast for cereal harvest in the EU by more than 1 million tonnes, according to BNews.kz. The reason for the forecast revision lies in the consequences of frosts in January and February as well as the likelihood of drought. According to the US Department of Agriculture, world wheat production will amount to 683 million tons in 2012, which is 4.5% more than last year. The aggregate consumption will increase by 23 million tons. The US agency projected stabilization of grain prices.

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