Kazakhstan Food Processing: Growth in Oilseed, Grain & Dairy Sectors (2025-2028)

Kazakhstan’s grain processing capacity has reached 5 million tons annually, a milestone reflecting sustained investment in its agricultural sector and a broader push to add value to its raw commodity exports. This development, alongside significant increases in vegetable oil production – reaching 888,800 tons in 2025, a 17.4% year-on-year increase – signals a strategic shift towards greater self-sufficiency and export diversification for the Central Asian nation. The expansion isn’t limited to volume; Kazakhstan is also deepening its grain processing capabilities, moving beyond basic milling to produce higher-value products like starch, gluten, molasses, and bioethanol.

Expanding Processing Capacity and Product Diversification

Currently, approximately 90 enterprises operate in the oilseed processing sector, boasting a combined capacity exceeding 5 million tons. According to recent data, Kazakhstan produced 29,000 tons of corn starch, 28,000 tons of wheat starch, 13,000 tons of gluten, 82,000 tons of molasses, and 21,000 tons of bioethanol in 2025. This diversification is being driven by both state policy and private investment. The Kazakh Ministry of Agriculture highlights the importance of these developments for strengthening the country’s position in regional and global markets. The government’s “Concept of Development of Agro-industrial Complex of the Republic of Kazakhstan for 2021-2030” explicitly prioritizes the expansion of oilseed cultivation and processing to achieve these goals.

Alongside grain and oilseed processing, Kazakhstan also maintains a substantial meat and dairy processing industry. Approximately 210 enterprises operate in meat processing with a total capacity of around 450,000 tons, although 180 processing enterprises function in the dairy sector with a combined capacity of around 2.7 million tons. These figures demonstrate the breadth of investment across the agricultural processing landscape.

Investment and Future Growth

The momentum isn’t expected to slow. Six major investment projects are planned in the coming years, poised to significantly increase processing volumes. By 2028, novel deep grain processing facilities with a combined capacity of 5.8 million tons per year are anticipated to come online. These projects represent a total investment of approximately 1.9 trillion tenge (currency conversion rates as of March 5, 2026, were not readily available in the provided sources) and are projected to create over 3,300 new jobs. Crucially, the expansion will also broaden the range of products, incorporating amino acids, syrups, vitamins, and other high-tech offerings.

Further investment is also planned for the oilseed and dairy sectors. Thirteen projects worth 94 billion tenge are in the pipeline for oilseed processing, while twelve projects valued at 41 billion tenge are slated for the dairy industry, adding an additional 165,000 tons of processing capacity. This sustained investment underscores Kazakhstan’s commitment to becoming a significant player in the global agricultural processing market.

Regional Trade Dynamics and Export Markets

Kazakhstan’s increased vegetable oil production has translated into a substantial rise in exports. Exports increased by 34.6% in the first 11 months of 2025 compared to the same period in 2024. Uzbekistan is the primary destination for Kazakh vegetable oil, accounting for 46% of total exports, followed by China (33.7%), Tajikistan (13.1%), Afghanistan (4.3%), and Turkmenistan (1.8%). Qazinform News Agency reports that Kazakhstan is currently the world’s eighth-largest exporter of sunflower oil and ranks among the top three suppliers of sunflower meal to the European Union. This positions Kazakhstan as a key supplier to both regional and international markets.

Recent data also indicates a strengthening position in the Chinese market. APK-Inform reported just hours before this writing that Kazakhstan has become the second-largest exporter of sunflower oil to China during the first four months of the 2025/26 marketing year, exporting 185.7 thousand tons of vegetable oils and meals (cake).

The Broader Context of Agricultural Development

The expansion of agricultural processing in Kazakhstan is part of a larger effort to increase the share of processed agricultural products. By the end of 2025, the share of processed agricultural products – including meat, milk, oilseeds, corn, rice, and buckwheat – had reached 64%. This reflects a deliberate strategy to move away from exporting raw commodities and towards higher-value-added products, boosting economic growth and creating employment opportunities. This aligns with broader trends in Central Asia, where countries are increasingly focused on diversifying their economies and reducing their reliance on natural resource exports.

The focus on deep grain processing – producing starch, gluten, molasses, and bioethanol – is particularly noteworthy. Bioethanol, for example, has potential applications as a biofuel, contributing to Kazakhstan’s energy security and reducing its carbon footprint. The production of amino acids and vitamins also opens up opportunities in the pharmaceutical and food industries. This diversification is crucial for mitigating the risks associated with fluctuating global commodity prices and ensuring long-term economic stability.

What Remains Unclear and What to Expect

While the overall trend of increasing processing capacity is clear, some details remain less certain. The specific timelines for the completion of the six major investment projects in grain processing are not yet fully defined. The impact of potential geopolitical factors – such as changes in trade relations with key partners like China and Uzbekistan – on Kazakhstan’s export markets remains to be seen. The availability of sufficient raw materials to feed the expanded processing capacity is also a potential concern, while the government’s focus on expanding oilseed cultivation is intended to address this issue.

Looking ahead, the Kazakh government is likely to continue prioritizing investment in agricultural processing. Further policy measures aimed at attracting foreign investment, streamlining regulations, and supporting research and development are anticipated. The success of these efforts will depend on a number of factors, including the stability of the regional economic environment, the availability of skilled labor, and the effective implementation of government policies. Xinhua reports that the Ministry of Agriculture is actively working to create a favorable investment climate and promote the adoption of modern technologies in the agricultural sector.

The expansion of Kazakhstan’s grain and oilseed processing capacity represents a significant step towards greater economic diversification and self-sufficiency. The country’s strategic location, abundant agricultural resources, and proactive government policies position it to become a major player in the regional and global agricultural processing markets. Continued investment and a focus on innovation will be crucial for realizing the full potential of this sector.