Kazakhstan's Dairy Industry Overview

The dairy sector in Kazakhstan plays a crucial role in the national economy, with the government setting a goal of achieving self-sufficiency in dairy production by 2027. Annually, Kazakhstan produces approximately 5.4 million metric tons of milk, reflecting a strong commitment to enhancing its dairy capabilities.

Milk Production and Dairy Cattle

In 2024, milk production in Kazakhstan increased by 4.2% from January to October. The country manages around 1.9 million dairy cattle and employs advanced technologies like the DeLaval OptiDuo robotic feed pushers to boost feeding efficiency. The establishment of 38 new dairy farms in 2024 contributed to a 21% rise in milk production over the past five years, alongside a cattle population increase of 15,960 heads.

Milk Processing and Product Manufacturing

Kazakhstan processes about 4.1 million metric tons of milk each year, producing roughly 39,000 metric tons of cheese and 28,000 metric tons of milk powder and whey. Key industry players include the Rakhmanovskiy Dairy Plant, KazMilk, and Kapchagay Milk Plant.

Export and Import Dynamics

The country exports approximately 65,000 metric tons of dairy products annually, primarily to Central Asia and Russia, while importing around 35,000 metric tons, mainly from Europe and Russia. In 2023, Kazakhstan began exporting cream cheese to Greece and Poland, although it remains a net importer of essential dairy products such as cheese, yogurt, butter, and milk fats.

Significant Industry Events

In 2024, Kazakhstan set a record by exporting 9,800 tons of ice cream from January to November. The North Kazakhstan Region invested KZT 17 billion (around $36 million) in modern dairy farms, targeting a 70,000-ton increase in annual production. The Central Asian Dairy Congress AqAltyn is scheduled for late 2024 in Turkestan.

Market Dynamics

Dairy consumption in Kazakhstan is rising, with an annual per capita milk consumption of 265 kg. The out-of-home sector is expanding, although there is a decline in the production of fermented products like cheese and cottage cheese. Regions such as Turkistan, Zhambyl, Almaty, and Shymkent are experiencing significant population growth.

Challenges and Growth Potential

A significant challenge for the industry is that 87% of veterinary laboratories do not meet international standards, impacting product quality and export potential. Nevertheless, the preparation of over 20 million tons of animal feed for winter 2025-2026 highlights the sector's potential, driven by the eco-friendliness and quality of its products.

Industry Achievements

Between January and August 2025, butter production rose by 15%, and fermented dairy products by 6.4%. Gross agricultural production increased by 3.4% to 3.6 trillion tenge, with livestock production growing by 3.2% to 2.26 trillion tenge. During this period, Kazakhstan produced 696,200 tons of meat, 2.63 million tons of milk, and 3.01 billion chicken eggs. Kazakh producers achieved notable success at the Mondial du Fromage et des Produits Laitiers 2025 World Championship, winning multiple medals.

Innovations and Animal Feed Market

Investors in Kazakhstan have established farms using automation to provide transparent, verifiable data and reduce human error. Breeding cattle now make up 12% of the cattle population, aided by subsidies, preferential loans, and tax incentives. The animal feed market is rapidly growing, with exports reaching 1.7 million tons by the end of January-August 2025, primarily to China.

Strengthening Agricultural Ties with Iran

Kazakhstan is strengthening agricultural ties with Iran, including the establishment of a dairy plant by the Iranian Solico Group with a production capacity of 200,000 tons per year. Kazakhstan is also a major grain exporter to Iran, with significant trade turnover in the agribusiness sector.

Kazakhstan’s Ice Cream Market

The ice cream market is undergoing rapid transformation, with new players and increasing consumer expectations. In 2025, ice cream production reached 63.2 thousand tons, a 22% year-on-year increase. For the first time, ice cream exports exceeded imports, totaling 13.6 thousand tons, while imports decreased by 5.1% in 2025 to 12.2 thousand tons.

Livestock and Poultry Exports

From January to November 2025, Kazakhstan exported over 1 million head of livestock and poultry, valued at $26.8 million. Major exports included domestic poultry, horses, and pigs, with significant imports from Russia. The production of processed liquid milk and cream reached 665.2 thousand tons by the end of 2025, meeting 95.1% of domestic market demand and export needs.

Traditional Dairy Products

Kumys production in Kazakhstan increased by 11.8% in January-February 2026, totaling 215 tons, while shubat production decreased by 22.2%, totaling 206 tons. The agro-industrial complex is showing steady growth in investment activity, with total investment in agriculture, forestry, and fisheries reaching 1.2 trillion tenge by 2025, with 63.7% provided by private capital.

Milk Yield and Production Dynamics

By the end of 2025, Kazakhstan recorded an increase in livestock production, with Almaty, Turkestan, and Akmola regions leading in livestock and poultry slaughter volumes. The cattle population reached 8.2 million heads, increasing by 3.2% over the year. Growth was also recorded for other types of animals, and the production volume shows positive dynamics in meat, milk, and eggs, although wool production decreased.

Trade Expansion with Turkey

Kazakhstan aims to expand its agricultural product exports to the Turkish market, with agro-industrial product trade turnover expected to increase by over 25% by the end of 2025, reaching approximately $360 million. Kazakhstan's exports primarily consist of grains and legumes, with plans to expand supplies to include wheat, lentils, feed, and oilseeds.

Structural Gap in Dairy Market

The dairy market in Kazakhstan maintains a structural gap between consumption and raw material processing. In 2025, total milk production amounted to 6.3179 million tons, with a market volume of 4.878 million tons, while delivered milk volume was 1.7998 million tons. The total gap between consumption and production is estimated at 3,394 thousand tons.

Dairy Cattle Genetics Seminar

The seminar 'Good Genetics' was held in Almaty, where Marzhan Zhulanova, CEO of CRI Kazakhstan, presented on the impact of genetics on farm economics. The seminar focused on dairy cattle genetics and farm economics, with contributions from CRI Kazakhstan.

Partnership with Denmark

Kazakhstan is strengthening its partnership with Denmark in dairy farming, advancing to a new stage of cooperation in the agro-industrial complex with a focus on dairy farming development, technology transfer, and investment attraction. From 2011 to 2025, Kazakhstan imported 10,780 heads of Danish breeding cattle.

Expansion in Dairy Industry

Kazakhstan has initiated a significant expansion in its dairy industry with the arrival of German breeding cattle and plans to build a new dairy farm and milk processing plant in the Akmola Region.

Modified: 2026/05/15