Kazakhstan's Dairy Industry Overview

The dairy sector in Kazakhstan is a vital component of the national economy, significantly influencing both domestic consumption and export activities. With an annual milk production of about 5.4 million metric tons, the country is on a strategic path towards achieving self-sufficiency in dairy production by 2027. This goal is being pursued through enhanced production efficiency and the adoption of cutting-edge technologies.

Milk Production and Dairy Cattle

In 2024, Kazakhstan experienced a 4.2% increase in milk production from January to October. The nation manages around 1.9 million dairy cattle, and the use of advanced technologies, such as the DeLaval OptiDuo robotic feed pushers, has improved feeding efficiency. The establishment of 38 new dairy farms in 2024, with an addition of 15,960 cattle, has contributed to 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, which results in the production of approximately 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, which are crucial to the processing and manufacturing sectors.

Export and Import Dynamics

The country exports around 65,000 metric tons of dairy products each year, mainly to Central Asia and Russia, while importing about 35,000 metric tons, predominantly from Europe and Russia. In 2023, Kazakhstan expanded its export portfolio by including cream cheese shipments to Greece and Poland. Despite increased production, the country remains a net importer of essential dairy products like 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 significance in the industry.

Market Dynamics

There is a growing trend in dairy consumption in Kazakhstan, 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. Turkistan, Zhambyl, Almaty, and Shymkent are key regions due to their active population growth. Challenges include raw milk shortages and high butter consumption, but the country is focused on enhancing its industrial production capabilities.

Challenges and Growth Potential

A significant challenge for Kazakhstan is that 87% of its veterinary laboratories do not meet international standards, affecting product quality and safety, which in turn hinders exports requiring international certification. Nonetheless, the country has prepared over 20 million tons of animal feed for the winter of 2025–2026. The International Forum on Genetics and Dairy Farm Management in Almaty underscores Kazakhstan's commitment to advancing the industry. Despite these challenges, Kazakhstan's dairy sector holds substantial potential, driven by the eco-friendliness and quality of its products. In the first half of 2025, agricultural producer prices fell by 4.2%, with a 6% decrease in June 2025 compared to June 2024. The country has also initiated production of children's dairy products from whole milk, targeting increased accessibility for urban residents.

Industry Achievements

Between January and 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, securing 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. Currently, there are approximately 60 cheese production enterprises in Kazakhstan with a total capacity of over 50,000 tons of products per year. In 2024, the production of cheese and curd increased by 7.5% to 48.3 thousand tons. Dairy production growth ranged from 0.3% to 4.7% across various categories, including milk, cream, yogurt, kefir, and butter.

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 increased by 28% to 3.9 thousand tons, marking the highest level in the last decade. Increases dairy product exports by 14.8% to $37.3 million. From January to July 2025, Kazakhstan boosted its dairy product exports by 14.8%, reaching 20.3 thousand tons. Revenue from these exports totaled $37.3 million, reflecting growing foreign demand for products from domestic processors.

Modified: 2025/10/08