Kazakhstan's Dairy Industry Overview

The dairy sector in Kazakhstan plays a crucial role in the national economy, with a strategic aim to achieve self-sufficiency in dairy production by 2027. Currently, the country produces approximately 5.4 million metric tons of milk each year.

Milk Production and Dairy Cattle

In 2024, there was a 4.2% increase in milk production from January to October. Kazakhstan manages around 1.9 million dairy cattle, utilizing advanced technologies such as DeLaval OptiDuo robotic feed pushers to improve feeding efficiency. The creation of 38 new dairy farms in 2024 has led to a 21% increase in milk production over the past five years, adding 15,960 cattle to the existing stock.

Milk Processing and Product Manufacturing

Annually, Kazakhstan processes about 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. Key industry players include Rakhmanovskiy Dairy Plant, KazMilk, and Kapchagay Milk Plant.

Export and Import Dynamics

Kazakhstan exports around 65,000 metric tons of dairy products annually, mainly to Central Asia and Russia, while importing approximately 35,000 metric tons from Europe and Russia. In 2023, Kazakhstan expanded its export portfolio with cream cheese shipments to Greece and Poland. Despite these advancements, 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 KZT 17 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.

Market Dynamics

Kazakhstan's dairy consumption trend is on the rise, 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 major challenge is that 87% of veterinary laboratories do not meet international standards, impacting product quality and hindering exports that require international certification. However, over 20 million tons of animal feed have been prepared for winter 2025–2026. The sector's potential is substantial, 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.

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.

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

In Kazakhstan, farms established by investors use 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 a rapid surge. 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.

Modified: 2025/11/14