Kazakhstan's Dairy Industry Overview

The dairy sector in Kazakhstan is a key component of the national economy, with strategic plans to achieve self-sufficiency in dairy production by 2027. The country produces approximately 5.4 million metric tons of milk annually.

Milk Production and Dairy Cattle

In 2024, milk production increased by 4.2% from January to October. Kazakhstan manages about 1.9 million dairy cattle, leveraging advanced technologies like DeLaval OptiDuo robotic feed pushers for improved feeding efficiency. The establishment of 38 new dairy farms in 2024 contributed to a 21% increase in milk production over the past five years, enhancing the cattle population by 15,960.

Milk Processing and Product Manufacturing

Annually, Kazakhstan processes around 4.1 million metric tons of milk, resulting in the production of approximately 39,000 metric tons of cheese and 28,000 metric tons of milk powder and whey. Prominent industry players include Rakhmanovskiy Dairy Plant, KazMilk, and Kapchagay Milk Plant.

Export and Import Dynamics

Kazakhstan exports about 65,000 metric tons of dairy products each year, primarily to Central Asia and Russia, while importing around 35,000 metric tons from Europe and Russia. In 2023, the country expanded its export portfolio by shipping cream cheese to Greece and Poland. However, it remains a net importer of essential dairy products like cheese, yogurt, butter, and milk fats.

Significant Industry Events

In 2024, a record was set with the export of 9,800 tons of ice cream from January to November. The North Kazakhstan Region invested KZT 17 billion (approximately $36 million) in modern dairy farms, aiming to boost annual production by 70,000 tons. Additionally, the Central Asian Dairy Congress AqAltyn is scheduled for late 2024 in Turkestan.

Market Dynamics

Dairy consumption in Kazakhstan is increasing, with an annual per capita milk consumption of 265 kg. The out-of-home sector is expanding, although there is a noted 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 capabilities. However, over 20 million tons of animal feed have been prepared for winter 2025–2026, indicating substantial potential driven by the eco-friendliness and quality of its products.

Industry Achievements

From January to August 2025, butter production increased by 15%, and fermented dairy products by 6.4%. Gross agricultural production rose by 3.4% to 3.6 trillion tenge, with livestock production increasing 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. Notably, Kazakh producers achieved success at the Mondial du Fromage et des Produits Laitiers 2025 World Championship, winning three gold, one silver, and two bronze medals.

Kazakhstan's Milk Self-Sufficiency Situation

While Kazakhstan fully supplies itself with raw milk, it relies on imports for deeply processed products such as butter, cheese, and cottage cheese. The country is a major importer of butter, with domestic consumption increasing by 27% over the first seven months of 2025, reaching 20 thousand tons.

Opening of a Modern Veterinary Laboratory

A modern veterinary laboratory has been established in the East Kazakhstan region as part of an intergovernmental agreement with China. This facility aims to enhance the competitiveness of domestic products and ensure the quality and safety of agricultural products.

Investors Drive Automation for Transparent Data

Farms established by investors in Kazakhstan utilize automation to provide transparent, verifiable data and reduce dependence on human error. The share of breeding cattle has reached 12%, and sheep 17%, facilitated by subsidies, preferential loans, and tax incentives.

Innovations at KazAgro/KazFarm-2025

An official Dutch trade mission will arrive in Kazakhstan, including leading agribusiness companies presenting innovative solutions in livestock, crop production, and sustainable food production.

Danone's Strategic Presence

Kazakhstan serves as the headquarters for Danone in Central Asia, Caucasus, and Mongolia. The Almaty plant is the main production center in this region, focusing on yogurt production as a strategic priority.

Animal Feed Market

The Kazakh animal feed market is experiencing rapid growth. Exports have increased 100-fold over a few years, reaching 1.7 million tons by the end of January–August 2025. The primary export destination was China, accounting for 99.1% of all shipments. Kazakhstan has completed the initialing of a veterinary certificate for the import of genetic material of agricultural animals with the United Kingdom.

Strengthening Agricultural Ties with Iran

Kazakhstan is strengthening agricultural ties with Iran through projects like the Solico Group's dairy plant and Kourosh Food Industry's interest in the market. Kazakhstan is hosting the establishment of a dairy plant by the Iranian Solico Group with a production capacity of 200,000 tons per year. The country is also a major exporter of grain to Iran, with significant trade turnover in the agribusiness sector.

Local Flavors and Market Trends

Local flavors are being modernized in Kazakhstan. UMAMI and Gormolzavod have introduced products incorporating traditional ingredients like kurt and pistachio paste, emphasizing gastronomic identity and commercial innovation. Kazakhstan seeks alternatives to rising Brazilian coffee prices and remains a relatively cheap market for a cup of coffee despite increases, ranking 77th out of 103 countries in terms of cappuccino prices as of January 2026. Kazakhstan was among the suppliers of cheese and curd to Kyrgyzstan, with imports reaching about 0.3 thousand tons, a 26% increase compared to the previous year.

Kazakhstan’s Ice Cream Market

Kazakhstan's ice cream market is undergoing rapid transformation, with new players entering the industry, consumer expectations rising, and competition intensifying. In 2025, total ice cream production reached 63.2 thousand tonnes, an increase of 22% year-on-year. For the first time, ice cream exports exceeded imports, with exports reaching 13.6 thousand tonnes.

Modified: 2026/02/04