Kazakhstan is implementing a large-scale program to shift from exporting raw materials to producing high-value-added goods. This strategy is already yielding measurable results: in recent years, the processing rate for key agricultural raw materials has risen from 35% to 64%, with a target of reaching 70% by the end of 2026. This was announced by the Prime Minister’s press service.
Driven by unprecedented investment—including a $4 billion portfolio of deep grain processing projects and 230 billion tenge allocated for enterprise working capital between 2024 and 2026—the sector is experiencing explosive growth. Bioethanol production has more than doubled (increasing 2.2-fold), and the output of starch products has risen by nearly a third; notably, over half of the finished products are destined for export.
According to government data, the processing rate for meat, milk, oilseeds, corn, rice, and buckwheat increased from 35% to 64% between 2023 and 2025, with a target of 70% by the end of 2026. Approximately 230 billion tenge has been allocated to finance the working capital of processing enterprises for the 2024–2026 period.
New production capacities are also being established. Between 2024 and 2026, 39 investment projects for agricultural processing—valued at 42.3 billion tenge—were financed as part of a program replicating the dairy farm development model pioneered in the North Kazakhstan Region.
The most significant transformation is taking place in the grain sector, where approximately 510,000 tons of grain undergo deep processing annually. Currently, three specialized enterprises are in operation, producing starch products, gluten, and bioethanol.
However, the potential extends far beyond this. Modern technologies enable the production of starch, gluten, syrups, bioethanol, feed components, and other goods for the food, animal feed, and related industries from grain.
This growth is already reflected in production figures. In 2025, approximately 152,000 tons of starch products were produced—an increase of 28.2% compared to the previous year. Bioethanol output reached 21,000 tons, a 2.2-fold increase. During the period from January to June 2026, 67,500 tons of starch products were produced, with 35,600 tons destined for export.
"These figures indicate the emergence of a new sector geared not only toward domestic demand but also toward foreign markets," government officials noted.
To further develop deep grain processing, a portfolio of six major projects with a total value of approximately $4 billion has been established.
Plans are in place to create processing capacity for around 5.8 million tons of raw materials annually by 2029. These projects are slated for the Turkistan, Zhambyl, Kostanay, and Akmola regions, as well as the city of Astana. The production program encompasses starch, gluten, syrups, bioethanol, amino acids, feed components, and other high-value-added products.
Some projects have already moved to the implementation stage: the "Kazkrakhmal" facility has been commissioned, and the Fufeng corn processing project has yielded its first output.
The oil and fat industry comprises approximately 90 enterprises with a combined processing capacity exceeding 4.5 million tons of raw materials per year. Over 90% of harvested sunflowers are processed domestically. The next objective is to increase the output of products from subsequent processing stages.
The meat and dairy industries comprise approximately 210 meat-processing and 180 dairy-processing facilities. Production of sausages, canned meat, semi-finished products, fermented milk products, and other ready-to-eat goods is expanding. In 2025, the production of canned meat increased by 48.3%.
Wool processing, fruit and vegetable processing, and compound feed production also remain promising areas.
"Thus, the development of processing activities is gradually extending to key types of agricultural raw materials and forging closer ties between agricultural production and the industrial sector," government authorities emphasized.
At the same time, the Government noted that the expansion of processing is already influencing the structure of foreign trade. In 2024, processed goods accounted for 52% of agro-industrial exports ($2.66 billion in value terms), up from 43% ($2.3 billion) the previous year (2023).
In 2025, export volumes rose to $3.6 billion (a 35.3% increase); despite the overall growth in agricultural exports, the share of processed goods remained high at 52%. The target is to raise this figure to 70% by 2030.
The growth in exports of higher-value-added products expands the export product range and enables more efficient use of the domestic raw material base. While raw material exports remain a key component of Kazakhstan's foreign trade, the objective is to gradually increase the share of products that undergo further processing stages within the country.
Simultaneously, domestic production is expanding for ingredients, components, and semi-finished goods that were previously imported.
Deep grain processing creates opportunities for the manufacture of starch products, gluten, syrups, amino acids, bioethanol, and feed components. Growth in the meat, dairy, and oil-and-fat sectors is increasing the supply of domestic products and semi-finished goods.
As a result, domestic demand for agricultural raw materials is rising, and the processing industry is gaining access to additional sales markets.
The next strategic goal is to increase the technological complexity of production. "Specific targets have been set for the near term: raising the processing rate for key types of agricultural raw materials to 70%, increasing the share of processed goods in agricultural exports to 70%, and implementing six major deep grain processing projects by 2029 with a combined annual capacity of approximately 5.8 million tons of raw material," the government stated.
At the same time, quantitative growth must be accompanied by qualitative improvements. This entails expanding product ranges, adopting modern technologies, developing production capabilities, and manufacturing goods that are in demand on both domestic and foreign markets.
The economic impact will be realized across several areas: agricultural producers will gain access to a larger market; regions will secure new investments and jobs; the industrial sector will acquire additional capacity and technology; and exports will expand to include new product categories.
The primary outcome is the more efficient use of the domestic raw material base and an increase in the share of production processes carried out within the country.
Deep processing thus becomes a key instrument for the structural modernization of the agro-industrial complex and for the practical implementation of the strategy to boost the output of high-value-added products. Its continued development will strengthen the links between agriculture and industry, expand export potential, and increase the economic returns derived from domestic raw materials.