Kazakhstan's Dairy Industry Overview

Kazakhstan's dairy industry is experiencing rapid growth, significantly contributing to the national economy. Annual milk production has reached approximately 5.4 million metric tons, positioning Kazakhstan as a notable figure in the regional dairy market.

Milk Production and Dairy Cattle

The backbone of the dairy sector is the approximately 1.9 million dairy cattle in Kazakhstan. These cattle have facilitated a robust milk production increase of 4.2% from January to October 2024. The country's strategic focus is on optimizing production efficiency, with a goal of achieving self-sufficiency in key dairy products by 2027.

Milk Processing and Product Manufacturing

Annually, Kazakhstan processes around 4.1 million metric tons of milk using advanced technologies. The production includes approximately 39,000 metric tons of cheese and 28,000 metric tons of milk powder and whey. Prominent enterprises in this sector include the Rakhmanovskiy Dairy Plant, KazMilk, and Kapchagay Milk Plant.

Export and Import Dynamics

Kazakhstan 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, exports expanded to include cream cheese to Greece and Poland. Despite increased production, Kazakhstan remains a net importer of dairy products.

Significant Industry Events

Recent industry developments include the introduction of DeLaval OptiDuo robotic feed pushers, enhancing feeding efficiency and yields. The Central Asian Dairy Congress AqAltyn is scheduled for late 2024 in Turkestan. Notably, ice cream exports reached a record 9,800 tons from January to November 2024. Additionally, the North Kazakhstan Region invested KZT17 billion (approximately $36 million) in modern dairy farms, aiming to boost production by 70,000 tons annually.

Market Dynamics

Dairy consumption in Kazakhstan is on the rise, with per capita milk consumption at 265 kg per year. The out-of-home sector is also expanding, although there's a decline in the production of fermented dairy products like cheese and cottage cheese. The southern regions, including Turkistan, Zhambyl, Almaty, and Shymkent, are experiencing active population growth, influencing market dynamics. Despite challenges such as raw milk shortages and high butter consumption without domestic production, Kazakhstan is focused on expanding its industrial production capabilities.

Efforts are underway to address dependency on imports of cheese, butter, and powdered milk. The country has the potential for at least 25% market growth by optimizing production and logistics. New projects in southern Kazakhstan and a pilot dairy farm project based on Belarusian technologies in the Akmola Region exemplify ongoing developments aimed at enhancing the dairy sector's capacity and efficiency.

Kazakhstan remains dependent on dairy imports in key categories. Despite high self-sufficiency in raw milk production and several processed dairy segments, imports are crucial for strategically important dairy products such as cheese, yogurt, butter, and milk fats. Kazakhstan is a significant market for Russian ice cream and dairy exports, facilitated by minimal trade barriers with Russia.

Modified: 2025/08/02