Danone's Ambitious Expansion in Kazakhstan

Danone, the French dairy giant, is gearing up to expand its manufacturing capabilities in Kazakhstan, aiming to more than double production at its Almaty region dairy plant. The company plans to invest €6m ($6.9m) over the next two years, boosting the plant’s output from the current 18,000 tons to 40,000 tons annually. This strategic enhancement is part of a broader initiative to amplify exports to regions such as the Caucasus, central Asia, Mongolia, and new markets like the Middle East and China.

 As Danone's operations in Kazakhstan fall under its Rest of the World business unit, which includes the highly competitive markets of the Middle East, Africa, and Asia Pacific, the expansion reflects the company's intent to solidify its presence in these areas. In 2024, this division contributed €4.5bn to Danone's global sales. The announcement coincides with a similar expansion effort by PepsiCo, which is increasing its investment in Kazakhstan to elevate its snack production.

This underlines the growing strategic importance of the region for major global food companies. Furthermore, Kazakhstan's Ministry of Agriculture expressed confidence in Danone's role in establishing the country as a reliable hub for dairy exports to Asia and the Middle East.