China Xuegu Group signs cooperation agreement with Kazakhstan, investing $100 million to $200 million in building a potato processing complex
The Pavlodar Region government of Kazakhstan announced that it has signed a memorandum of understanding with China Xuegu Agricultural Group Co., Ltd., jointly implementing a large-scale investment project focused on potato processing.
The memorandum outlines plans for constructing a modern agro-industrial complex with an annual processing capacity of 100,000 to 200,000 tons. The agreement was signed by regional governor Asaiyn Baitanov and Chinese representatives Wang Denshe and Zhang Fan.
The project aims to produce high-value-added products, including establishing research and breeding centers for potato cultivation and seed potato production, launching french fry production, and developing warehousing, logistics, and distribution infrastructure.
Total investment is expected to range between $100 million and $200 million. Local authorities hope the project will establish a complete production and supply chain, alleviate shortages in agricultural deep-processing capabilities, and create new employment opportunities.
"The local government stands ready to support initiatives aimed at developing high-tech, high-value-added production," said Baitanov.
Xuegu Group was founded in 2007 and is headquartered in Zhangjiakou, China. It is a vertically integrated agro-industrial enterprise covering the entire production cycle—from potato breeding and farming to deep processing. The company processes over 800,000 tons of raw materials annually, including more than 400,000 tons of frozen products, with a total storage capacity of 700,000 tons.
The company also actively conducts breeding programs, having developed over 80 potato varieties. Its production employs advanced technologies, including Pulsed Electric Field (PEF) systems, which enhance product quality and reduce oil consumption.
Xuegu Group’s products are exported to more than 40 countries. After the visit, Chairman Wang Denshe emphasized the significant potential of the Pavlodar region and confirmed the company’s interest in long-term cooperation.
"Chinese companies have confirmed their intent to implement this project using modern technology and local resources, while the regional government has pledged full support, including infrastructure development, resource base construction, and administrative assistance," the regional news office stated.
This project was proposed amid previous restrictions on potato exports. Due to rising domestic prices, Kazakhstan had temporarily banned potato exports outside the Eurasian Economic Union (EAEU). Although the market remains stable now, authorities have not ruled out the possibility of reintroducing such measures in the fall of 2025.
Source: Central Asia Times
Author: Dmitry Pokidayev
Original article: toutiao.com/article/1863129048699913/
Disclaimer: The views expressed in this article are those of the author.