Kazakhstan's Dairy Industry Overview

The dairy sector in Kazakhstan is integral to the national economy, significantly contributing to both domestic consumption and exports. The country has set strategic goals to become self-sufficient in dairy production by 2027, currently producing around 5.4 million metric tons of milk annually.

Milk Production and Dairy Cattle

In 2024, Kazakhstan experienced a 4.2% increase in milk production from January to October. The nation manages approximately 1.9 million dairy cattle, with advanced technologies such as DeLaval OptiDuo robotic feed pushers improving feeding efficiency. The establishment of 38 new dairy farms in 2024, adding 15,960 cattle, resulted in a 21% increase in milk production over the past five years.

Milk Processing and Product Manufacturing

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

Export and Import Dynamics

The country exports approximately 65,000 metric tons of dairy products each year, mainly to Central Asia and Russia, while importing around 35,000 metric tons, primarily from Europe and Russia. In 2023, Kazakhstan expanded its export portfolio by introducing cream cheese shipments to Greece and Poland. Despite this growth, the country remains a net importer of key 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 KZT17 billion (approximately $36 million) in modern dairy farms, aiming to boost annual production by 70,000 tons. The Central Asian Dairy Congress AqAltyn is scheduled for late 2024 in Turkestan, highlighting the region's importance in the industry.

Market Dynamics

The dairy consumption trend in Kazakhstan is growing, with an annual per capita milk consumption of 265 kg. The out-of-home sector is expanding, although there's a noted decline in the production of fermented products like cheese and cottage cheese. Regions such as Turkistan, Zhambyl, Almaty, and Shymkent are notable for active population growth. Challenges include raw milk shortages and high butter consumption, but efforts are focused on enhancing industrial production capabilities.

Challenges and Growth Potential

A significant challenge is that 87% of veterinary laboratories do not meet international standards, affecting product quality and hindering exports requiring international certification. However, over 20 million tons of animal feed have been prepared for winter 2025–2026. The International Forum on Genetics and Dairy Farm Management in Almaty underscores Kazakhstan's dedication to advancing the industry. Despite these challenges, the sector holds 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%. The 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, the country 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 three gold, one silver, and two bronze medals. In the North Kazakhstan region, three enterprises for cheese and curd production are planned to launch by the end of 2027, with a total investment of about 6 billion tenge.

Kazakhstan's Milk Self-Sufficiency Situation

While Kazakhstan fully supplies itself with raw milk, it remains dependent 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. Imports during this period rose by 28% to 3.9 thousand tons, marking the highest level in the last decade.

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, allowing for high-precision research in veterinary diagnostics and food safety.

Investors Drive Automation for Transparent Data

In Kazakhstan, farms established by investors 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. Kazakhstan contributes 1.8% to Russia's dairy imports, highlighting its role in regional trade.

Danone's Strategic Presence

Kazakhstan serves as the headquarters for Danone in Central Asia, Caucasus, and Mongolia. The Kazakhstan office of Danone is the headquarters for the entire region, which includes nine countries. The Almaty plant is the main production center in this region, focusing on yogurt production as a strategic priority. Local production is emphasized to adapt to consumer tastes and optimize logistics, with Danone using local raw materials and partner farms located in the Almaty region.

Modified: 2025/10/31