Islamic Organization
for Food Security
Ministry of Agriculture of the Republic of Kazakhstan
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Prerequisites of establishment of the Organization
In 1995 Kazakhstan became a full member of the largest
international Islamic organization — the Organization of
Islamic Cooperation (hereinafter — OIC).
On June 28-30 in Astana the 38th session of the OIC Foreign
Ministers Council (hereinafter — FMC) had been held and the
Republic of Kazakhstan entered into chairmanship in this
organization.
On the opening session of the OIC Foreign Ministers
Conference Nursultan Nazarbayev, President of the Republic
of Kazakhstan had announced the proposal on expedience
of development of the food mutual aid system within the
OIC with location of its headquarters of such organization in
Kazakhstan as in the state that exports food resources.
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The implementation history of the initiative
The OIC Sixth Ministerial Conference on Food Security and agricultural development
(Istanbul, October 3-6, 2011) has adopted the Resolution with decision to support the
proposal of the Republic of Kazakhstan.
The ideology of the developed concept of the Fund of food mutual aid had been supported
by OIC member-states at the 27th meeting of the OIC COMSEC (Istanbul, October 17-20,
2011).
Drafts of the Resolution on establishment of the OIC Food Mutual Aid Fund and the Statute
of the OIC Food Mutual Aid Fund have been developed and discussed with the OIC
Secretariat General, with specialists of the Islamic Development Bank, the UN World Food
Programme, The UN Food and Agriculture Organization.
The initiative on establishment of the Fund had been supported by states at the 35th session
of the Islamic Commission on economical, cultural and social issues (June 18-20, 2012).
At the 28th meeting of the OIC COMSEC Executive Council (Ankara, May 9-10, 2012) the
above mentioned drafts had been supported.
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Legal base of the Organization
The 39th FMC has adopted the decision on establishment of the
new body in Astana (capital of Kazakhstan) and on development of
its Statute.
On June 11-12, 2013 the Intergovernmental Experts Meeting of OIC
member-states has been held in Astana aiming at coordination of
the Statute of the body on food security. At this meeting the
experts of 30 member-states had coordinated the draft Statute of
the new body, including its nomination – “Islamic Organisation for
Food Security” and have decided to submit this document to the
next session of the OIC CFM.
During the 40th session of the Foreign Ministers Council in Conakry,
Guinea on December 9-10, 2013 the Statute of the Islamic
Organisation for Food Security (IOFS) has been signed by 19
countries.
Since this moment, according to the Article 21 of it the IOFS Statute
is started to be applied provisionally and the OIC Note № OIC-ECO047/C-04/000643 on February 11, 2014 has been issued about
provisional application.
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Global trends
Data from the latest UN assessment
(2010) under the medium fertility variant
indicates that population is expected to
reach 9.3 billion in 2050, and to continue
growing at decreasing rates until the end
of the century.
Virtually all the population increase is
expected to take place in developing
countries. Developed countries will start
declining in the late 2040s. By 2100, the
only region where population is still
expected to be growing is sub-Saharan
Africa, which will have reached some 2.15
billion. Projections for certain African
countries show particularly fast increases,
reaching up to 3.5 to 7 times their current
levels at the end of the century.
Population growth, ageing and
urbanization affect consumption - and
food consumption - habits through
different channels, as well as the
development of agrifood production
activities.
Source: ‘Global trends and future challenges for the work of the organization’, FAO
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Actuality of the food security
Around 900 mln. working people live in poverty ($2 per day). The majority live in countries of Sub-Saharan Africa and
South Asia where the population mainly is engaged in agriculture (East Africa – up to 75%, Central Africa and South
Asia – up to 50%). The reason is the low productivity of the agriculture and the low level of the rural development.
Global Hunger Index shows that
regions with alarming food
insecurity are Africa (SubSaharan), South Asia, South-East
Asia.
Besides the natural cataclysms,
natural disasters and human
caused accidents can lead to
sharp need on food reserves in
various points of the world
including developed countries.
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Member-states of the IOFS
Region
Country
Global Hunger
GNI per capita, $
Index (IPFRI, 2013)
(WB, 2013)
Population,
mln. (FAO,
2013)
19,5
Population
growth,
%/annually
(FAO, 2013)
Food Import, bln. $
(FAO, 2013)
Africa
Djibouti
0,810
2,23
0,593
Africa
Sudan
27
1 130,00
35,482
1,78
5,941
Africa
Somali
n.a.
n.a.
10,428
1,75
1,263
Middle East
State of Palestine
n.a.
Africa
Comoros islands
33,6
880,00
0,767
1,87
0,208
Africa
Mauritania
13,2
1 060,00
3,516
2,26
3,355
Africa
Uganda
19,2
510,00
35,918
3,24
4,858
Africa
Burkina-Faso
22,2
670,00
18,365
3,05
2,941
Africa
Sierra Leone
22,8
680,00
5,743
2,33
1,637
Africa
Gambia
14
510,00
1,926
2,23
0,360
Africa
Guinea
16,9
460,00
11,474
2,63
2,384
Africa
Guinea-Bissau
14,3
520,00
1,693
1,93
0,206
Africa
Mali
14,8
670,00
16,455
3,00
2,895
Africa
Niger
20,9
17,466
3,28
2,314
South Asia
Afghanistan
n.a.
700,00
31,822
2,29
6,390
Middle East
Iran
<5
5 780,00
80,840
1,22
64,420
Middle East
Turkey
<5
10 950,00
81,619
1,12
242,900
South America
Suriname
<9
9 260,00
0,573
1,12
1,778
Central Asia
Kazakhstan
<5
11 380,00
17,948
1,17
52,030
Africa
Libya
<5
6,244
3,08
410,00
n.a.
TOTAL:
379,089
27,150
423,623
Global Hunger Index (IPFRI): ≥ 30 – extremely alarming level, between 20.0 and 29.9 - alarming level, between 10.0 and 19.9 – serious level, between 5 and 9,9 –
average level, below 5 – low level
Countries classification on GNI per capita (WB, July 1, 2013): $1,035 and less – countries with low level of GNI per capita;
between $1,036 and $4,085 – lower average; between $4,086 and $12,615 – upper average; more than $12,616 – high income level
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Aims and Objectives of the Organisation
1. To provide expertise and technical know-how to member-states on the various aspects
of sustainable agriculture, rural development, food security and biotechnology including
addressing the problems posed by desertification, deforestation, erosion and salinity as
well as providing social safety nets;
2.To assess and monitor, in coordination with member states, the food security situation in
member states, in order to determine and make necessary emergency and humanitarian
assistance, including the creation of food security reserves;
3. To mobilize and manage financial and agricultural resources for developing agriculture
and enhancing the food security in member states; and
4. To coordinate, formulate and implement common agricultural policies, including
exchange and transfer of appropriate technology and public food management system.
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The organizational structure of the IOFS
General Assembly
The General Assembly comprises Ministers of all member-countries responsible for matters within mandate of the Organisation.
Its meeting are held once per year. During its sessions Chairman and Vice-Chairman are elected for a term of 1 year renewable
once. It elects Chairman and members of the Executive Board. Also it elects Director General of its Secretariat. All main decisions
will be taken during session of the General Assembly.
Executive Board
Finance Control Committee
It is composed of members including its Chairman. The country hosting the Headquarters shall be a permanent member. One
non-voting post shall be allocated for Director General. The Executive Board shall meet at least twice a year. Members of the
Executive Board are elected for a period of 3 years renewable once. The Executive Board may appoint various committees of the
Organisation, and the Executive Board shall appoint a Financial Control Committee made up of representatives from 5 memberstates for a three-year period on a rotational basis to audit accounts and to ensure sound management of the Organisation.
Secretariat
The Secretariat shall comprise a Director General and official staff working in the permanent Headquarters and in such other
offices as may be established. Director General shall be appointed by the General Assembly for a period of four years renewable
once only.
Centers
Regional food reserves
Offices
Organizations
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Wheat production in main exporting countries in the season 2013/14
MY*
Wheat production, mln. tons
160
140
120
40
Argentina 2%
Egypt 1%
EU 23%
Pakistan 4%
95.8
Australia 4%
80
60
Iran 2%
Ukraine 4%
126
100
Production share, %
Kazakhstan 2%
Turkey 2%
150.9
10
Canada 4%
55.2
59
28 25.5
24.5 24
15 13.5 13 12.3
8.95
20
0
China 19%
Russia 9%
USA 8%
* - according to US Agriculture Ministry
India 15%
Wheat production and export in the Republic of
Kazakhstan
The Republic of Kazakhstan is in top 10 countries in the world that produce and export the
wheat. The annual wheat production composes between 10-22 mln. tons and the export
composes 6,5 - 8,5 mln. tons.
Supply of grains in the market of Kazakhstan significantly exceeds the domestic demand.
Moreover, the agricultural policy of the Kazakhstan Government dedicated to
establishment of favorable conditions for exports of grains to external markets. It is, first of
all, based on high productivity of land: so the average yield of grains for last 10 years has
composed 16 mln. tons while the domestic demand for this product is around 6-8 mln.
tons.
Even at the low harvest that composes 10 mln. tons, considering final reserves around 3-4
mln. tons, approximately 5-6 mln. tons of wheat is exported. This allows Kazakhstan to
provide stable volumes of deliveries to the export, also in case of need for demands from
the IOFS countries.
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Dynamics of prices and production volumes of wheat in the
domestic market for 2007 - 2013
20.0
12
440
19.0
400
390
18.0
17.1
350
16.5
340
16.0
276
290
13.9
14.0
230
12.5
240
12.0
190
172
10.0
9.8
9.6
140
120
104
8.0
90
2007/08
2008/09
2009/10
2010/11
производство пшеницы, млн. тонн
2011/12
2012/13
цена в долл. США/тонна
2013/14
The role of the “National Company “Food Contract Corporation”
JSC in stabilization of grain price
The price list formation for food wheat in the Kazakhstan market depends on
its production volumes:
 at high yields (2007, 2009, 2011 and 2013) the price for wheat decreases to
130-220 USD/ton;
 at less plenteous years (2008, 2010, 2012) the price increases up to
300-350 USD/ton.
By means of storehouses the “NC “Food Contract Corporation” JSC stabilizes
prices for grains through buying wheat in high yield years and selling in low
yield years.
It is proposed to implement the analogous mechanisms within the IOFS.
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Export directions for Kazakhstan wheat
Russia
● Petropavlovsk
Russia, Mongolia
EU, Turkey, North Africa (export
through ports of Black Sea and Azov
Sea)
●Kokshetau
● Pavlodar
Astana
● Oral
Azerbaijan, Georgia
● Aqtobe
● Oskemen
● Atyrau
Caspian
Sea
Aral
Sea
● Aktau
“Baku Grain terminal”
LLC
● Karagandy
● Ozen st.
● Taldykorgan
● Kyzylorda
● Taraz
● Almaty
China, South-East
Asia countries
● Shymkent
Gorgen grain terminal
Amirabad Grain Terminak Kish LLC»
Iran by sea
Central Asia countries
(Uzbekistan, Tajikistan, Kyrgyzstan) and Afghanistan
New export route to Iran by
railways
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Proposals of Kazakhstan on participation in the IOFS activities:
Establishment of the OIC Grain Storage system on the territory of Kazakhstan:
Development of the storage infrastructure in the Republic (the OIC Grain storage system) will provide price stabilization by means
of interventions (through buying in high yield years/selling in low yield years) and storage of food wheat that belongs to the IOFS
and other grain market participants of the Republic (commercial companies), and the system will be involved both to OIC
programs and operational activities of Kazakhstan grain market and it will allow to ensure the efficiency of the OIC Grain storage
system.
Development of neighboring to the RoK export infrastructure
Development of the port on the territory of the RoK on the Caspian Sea with the passage capacity of 600-700 th. tons per year
and storage capacity of 50 th. tons, the grain terminal on the st. Inche-Burun with the passage capacity up to 1 mln. tons and the
storage capacity 150 th. tons per month, on the Amirabad port with the passage capacity of up to 1,5 mln. tons per year and the
storage capacity 150 th. tons per month, grain terminal on the Kazakhstan-China border with the passage capacity of up to 1
mln. tons per year and the storage capacity 50 th. tons per month and others will allow Kazakhstan companies to perform
deliveries any time through the Iranian territory to countries of the Persian Gulf and Africa.
Establishment of specialized Grain hubs on storage and shipment of grains on territories of IOFS state-members
The HUB 1 in Afghanistan direction: in the Mazari Sharif province and /or Gerat province (Afghanistan) with the passage capacity
of up to 50 th. tons of grains per month and the storage capacity 20 th. tons of grains;
The HUB 2 in direction of Persian Gulf countries: Imam Homeini port and/or the Abbas port (Iran, Persian Gulf),
with the passage capacity of up to 200 th. tons of grains per month and the storage capacity up to 100 th. tons of grains;
The HUB 3 in direction of Saudi Arabia and the UAE: located on the Dammam port (Saudi Arabia) and/or on the Abu-Dhabi port
(UAE), with the capacity of storage of up to 200 th. tons grains;
The HUB 4 in direction of North and East Africa countries: The Republic of Djibouti (The Red Sea) with the capacity of storage of up
to 200 th. tons of grains.
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Proposals of Kazakhstan on participation in the IOFS activities:
As one of means of implementation of IOFS objectives the mechanism of agent services
is proposed.
The IOFS
Owner of assets and resources
On request of the IOFS Secretariat
“NC “Food Contract Corporation” JSC
Agent on behalf of the IOFS
Procurement of food
resources
Storage of food resources
and storehouses management
Organization of shipments
and implementation of
deliveries
“NC “Food Contract Corporation” JSC is an agent on management of state grain reserves that provides procurement,
formation, accounting, storage organization, refreshment, transportation, sale of state grains reserves and products
of its processing, also carries out other functions determined by the Kazakhstan Government.
Besides, the “NC “Food Contract Corporation” JSC performs export deliveries since 1998 and has significant experience
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in exporting.
Thank you for your attention!
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