Bread price to remain stable

Astana, 17 October 2008, (Khabar) - Summarising the results of a government
meeting in Astana, Prime Minister Karim Massimov stated Kazakhstan would
experience no grain shortage with bread prices to remain stable. 17.3
million tons of grain have been harvested in the Republic so far with almost
100% of them thrashed. The Minister for Agriculture of the Republic, Akylbek
Kurishbayev stated that according to forecasts, the 2008 yield is expected
to reach 17.5 million tons, which is enough to satisfy the demand in the
domestic market and still export close to 6 million tons. He also added that
no dramatic increase in price is set to take place because the country has
formed its stabilizing grain stocks amounting to 600 thousand tons. Grain
producing regions of the country also cause no concern as local
administrations have already signed memorandums of grain supply with local
entrepreneurs.

Karim Massimov, Prime Minister of Kazakhstan:
- The government promises steady grain supplies next year and we also
guarantee that bread prices will not go up as we have stabilizing mechanisms
to prevent any attempts of doing so. As a result, we can officially announce
that the Kazakhstan Government will not place a ban on grain export, which
is good news for both exporters and consumers.

Nurlan Tleubayev, president, Kazakhstan's Grain Union:
- This year's grain yield is to be in demand. This year's marketing year is
to start from the point of 250 US dollars per ton, to stop at a level of
310-320 dollars. It will have no influence on the price of flour, grain or
bread in Kazakhstan.