Kazakhstan's Dairy Industry Overview

Kazakhstan has cemented its status as a major player in the Central Asian dairy market through strategic investments in technology and infrastructure, demonstrating notable growth in milk production and international trade.

Milk Production and Dairy Cattle

Central to Kazakhstan's dairy industry is its strong livestock farming. The nation is home to approximately 1.9 million dairy cattle, contributing to an annual milk production volume of around 5.4 million metric tons. This impressive output highlights the sector's pivotal role in supporting the national economy.

Milk Processing and Product Manufacturing

With state-of-the-art facilities and advanced processing technologies, Kazakhstan processes about 4.1 million metric tons of milk each year. The country is a notable producer of various key dairy products:

• Cheese: Annual production is approximately 39,000 metric tons.
• Milk Powder and Whey: Combined annual production reaches around 28,000 metric tons.

Key Enterprises in the Dairy Market

Dairy Plants

• Rakhmanovskiy Dairy Plant
• KazMilk
• Kapchagay Milk Plant

Dairy Farms

• AgroProdukt KZ
• DanAgro
• ZhiDariya Ltd.

Export and Import of Dairy Products

The vibrancy of Kazakhstan's dairy industry is supported by dynamic trade activities:

• Export: Approximately 65,000 metric tons of dairy products are exported annually, primarily to Central Asian countries and Russia.
• Import: The country imports about 35,000 metric tons of dairy products each year, mainly from European and Russian suppliers to satisfy domestic demand.

Significant Events in the Dairy Industry

Recent advancements include the introduction of DeLaval OptiDuo robotic feed pushers on major farms, enhancing feeding efficiency and milk yields. In 2023, export markets expanded for cream cheese to Greece and Poland. Early 2024 witnessed a 4.4% rise in milk production from January to August, with Kyrgyz milk imports valued at $6.6 million, reflecting the sector's growth. Despite a 1.4% decline in ice cream production in the first seven months of 2024 due to rising prices, imports of Kyrgyz butter surged significantly.

In late 2024, the annual Central Asian Dairy Congress AqAltyn will occur in Turkestan, emphasizing regional industry cooperation. Discussions led by Deputy Prime Minister Serik Zhumangarin regarding phytosanitary control reforms aim to streamline agricultural operations. From January to October 2024, milk production increased by 4.2%. However, local farmers prepare for potential changes due to potential subsidy reductions. Kazakhstan continues to be the largest importer of Russian whey.

Kazakhstan remains a dominant dairy market in Central Asia, showing steady growth and high localization. Plans by Olzha Agro to construct a plant processing 300 tons of milk per day were mentioned at the Central Asian Dairy Congress. Cooperation with China has strengthened, with $1 billion agreements signed between leading companies. Kazakhstan is also a key market for Kyrgyz dairy products. North Kazakhstan's investment of KZT17 billion ($36 million) in modern dairy farms aims to boost milk production by 70,000 tons annually. Additionally, Kyrgyzstan increased coffee imports from Kazakhstan in 2024.

Investments in the Dairy Industry of Kazakhstan Will Amount to 200 Billion Tenge in 2025 - Aidarbek Saparov

Modified: 2024/12/11

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