Kazakhstan's Dairy Industry Overview

The dairy industry in Kazakhstan is a cornerstone of the national economy, with annual milk production reaching 5.4 million metric tons. This positions Kazakhstan as a major player in the regional dairy market. The country is making strides towards self-sufficiency in essential dairy products by 2027, with a particular focus on optimizing production efficiency.

Milk Production and Dairy Cattle

In 2024, Kazakhstan saw a 4.2% increase in milk production from January to October. The country has approximately 1.9 million dairy cattle and has embraced advanced technologies, such as the DeLaval OptiDuo robotic feed pushers, to enhance feeding efficiency and yields. The commissioning of 38 new dairy farms in 2024 increased the dairy cow population by 15,960 heads. Over the past five years, 189 dairy farms have been built or expanded, resulting in a 21% growth in milk production and a 17% increase in average yield per head.

Milk Processing and Product Manufacturing

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

Export and Import Dynamics

The country exports about 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 expanded its export portfolio to include cream cheese to Greece and Poland. Despite increased production, Kazakhstan remains a net importer of strategically important dairy products such as cheese, yogurt, butter, and milk fats.

Significant Industry Events

Recent developments include record ice cream exports of 9,800 tons from January to November 2024. The North Kazakhstan Region invested KZT17 billion (approximately $36 million) in modern dairy farms, aiming to boost production by 70,000 tons annually. The Central Asian Dairy Congress AqAltyn is scheduled for late 2024 in Turkestan.

Market Dynamics

Dairy consumption in Kazakhstan is rising, with per capita milk consumption at 265 kg per year. The out-of-home sector is expanding, although there is a decline in the production of fermented dairy products like cheese and cottage cheese. Regions such as Turkistan, Zhambyl, Almaty, and Shymkent, which are experiencing active population growth, are influencing market dynamics. Despite challenges like raw milk shortages and high butter consumption, Kazakhstan focuses on expanding its industrial production capabilities.

Challenges

A significant challenge is that 87% of Kazakhstan's veterinary laboratories do not meet international standards, raising concerns about product quality and safety, which poses barriers to exports requiring international certificates. However, Kazakhstan has prepared over 20 million tons of animal feed for the upcoming wintering of 2025–2026, ensuring livestock sustenance. The International Forum on Genetics and Dairy Farm Management in Almaty underscores the country's commitment to advancing the industry through expert discussions and knowledge exchange.

Growth Potential of Kazakhstani Dairy Products

Kazakhstan has vast potential in the dairy industry but faces challenges such as climate affecting quality feed production. The country's dairy products are in demand locally and abroad for their eco-friendliness and quality, adhering to strict standards. In the first half of 2025, Kazakhstan experienced a 4.2% decrease in agricultural producer prices, with a 6% decrease in June 2025 compared to June 2024, reflecting broader economic conditions.

Modified: 2025/09/03