Kazakhstan's Dairy Industry Overview

The dairy sector in Kazakhstan plays a pivotal role in the national economy, with a strategic goal of achieving self-sufficiency in dairy production by 2027. The country produces approximately 5.4 million metric tons of milk annually, reflecting its commitment to enhancing dairy capabilities.

Milk Production and Dairy Cattle

In 2024, Kazakhstan experienced a 4.2% increase in milk production from January to October. The country manages around 1.9 million dairy cattle, utilizing advanced technologies like DeLaval OptiDuo robotic feed pushers to improve feeding efficiency. The establishment of 38 new dairy farms in 2024 has contributed to a 21% increase in milk production over the past five years, alongside a rise in the cattle population by 15,960.

Milk Processing and Product Manufacturing

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

Export and Import Dynamics

The country exports around 65,000 metric tons of dairy products annually, mainly to Central Asia and Russia, while importing about 35,000 metric tons, primarily from Europe and Russia. In 2023, Kazakhstan expanded its export portfolio by sending cream cheese to Greece and Poland. Despite these advancements, it remains a net importer of essential 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 KZT 17 billion (approximately $36 million) in modern dairy farms to boost annual production by 70,000 tons. The Central Asian Dairy Congress AqAltyn is scheduled for late 2024 in Turkestan.

Market Dynamics

Dairy consumption in Kazakhstan is increasing, with an annual per capita milk consumption of 265 kg. The out-of-home sector is expanding, although there is a 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 for the industry is that 87% of veterinary laboratories do not meet international standards, impacting product quality and export capabilities. However, the preparation of over 20 million tons of animal feed for winter 2025-2026 highlights the sector's potential, driven by the eco-friendliness and quality of its products.

Industry Achievements

Between January and August 2025, butter production increased by 15%, and fermented dairy products by 6.4%. 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, Kazakhstan 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 multiple medals.

Innovations and Animal Feed Market

Farms established by investors in Kazakhstan use automation to provide transparent, verifiable data and reduce human error. The share of breeding cattle has reached 12%, facilitated by subsidies, preferential loans, and tax incentives. The animal feed market is experiencing rapid growth, with exports reaching 1.7 million tons by the end of January-August 2025, primarily to China.

Strengthening Agricultural Ties with Iran

Kazakhstan is enhancing agricultural ties with Iran, including the establishment of a dairy plant by the Iranian Solico Group with a production capacity of 200,000 tons per year. Kazakhstan is also a major exporter of grain to Iran, with significant trade turnover in the agribusiness sector.

Kazakhstan’s Ice Cream Market

The ice cream market is rapidly transforming, with new players and rising consumer expectations. In 2025, ice cream production reached 63.2 thousand tonnes, a 22% year-on-year increase. For the first time, ice cream exports exceeded imports, totaling 13.6 thousand tonnes.

Livestock and Poultry Exports

From January to November 2025, Kazakhstan exported over 1 million head of livestock and poultry, valued at $26.8 million. The major exports included domestic poultry, horses, and pigs, with significant imports from Russia. The production of processed liquid milk and cream reached 665.2 thousand tons by the end of 2025, meeting 95.1% of domestic market demand and export needs.

Traditional Dairy Products

Kumys production in Kazakhstan increased by 11.8% in January-February 2026, totaling 215 tons, while shubat production decreased by 22.2%, totaling 206 tons. Kazakhstan's agro-industrial complex is showing steady growth in investment activity. By 2025, the total investment in agriculture, forestry, and fisheries reached 1.2 trillion tenge, with 63.7% provided by private capital.

Milk Yield and Production Dynamics

By the end of 2025, Kazakhstan recorded an increase in livestock production, with Almaty, Turkestan, and Akmola regions leading in livestock and poultry slaughter volumes. The cattle population in the country reached 8.2 million heads, increasing by 3.2% over the year. Growth was also recorded for other types of animals, and the production volume shows positive dynamics in meat, milk, and eggs. However, a decrease was recorded in wool production.

Trade Expansion with Turkey

Kazakhstan aims to expand its agricultural product exports to the Turkish market. By the end of 2025, the trade turnover of agro-industrial products between Kazakhstan and Turkey is expected to increase by more than 25%, reaching approximately $360 million. Kazakhstan's exports are primarily composed of grains and legumes, with plans to expand supplies by including wheat, lentils, feed, and oilseeds.

Structural Gap in Dairy Market

The dairy market in Kazakhstan maintains a structural gap between consumption and raw material processing. In 2025, the total milk production in the country amounted to 6.3179 million tons, the market volume was 4.878 million tons, while the volume of delivered milk was 1.7998 million tons. The total gap between consumption and production in Kazakhstan's dairy industry is estimated at 3,394 thousand tons.

Dairy Cattle Genetics Seminar

The seminar 'Good Genetics' was held in Almaty, where Marzhan Zhulanova, CEO of CRI Kazakhstan, presented the impact of genetics on farm economics. The seminar focused on dairy cattle genetics and farm economics, with contributions from CRI Kazakhstan.

Partnership with Denmark

Kazakhstan strengthens its partnership with Denmark in dairy farming, moving to a new stage of cooperation in the agro-industrial complex with a focus on the development of dairy farming, technology transfer, and attracting investments. From 2011 to 2025, 10,780 heads of Danish breeding cattle were supplied to Kazakhstan.

Kazakhstan was the main buyer of Kyrgyzstan's dairy products, accounting for almost the entire volume of Kyrgyzstan's butter exports and 1,675 tons of buttermilk, kefir, and yogurt exports from Kyrgyzstan.

Modified: 2026/05/05