With six investment projects worth approximately $4 billion, new industrial capacities, and $3.6 billion in exports of processed goods, Kazakhstan is shaping a new model for agro-industrial development—one where the key driver of growth is no longer raw materials, but high value-added products.
Kazakhstan is expanding the processing of agricultural raw materials, focusing on the production of goods that are in demand not only domestically but also within international supply chains. The primary emphasis is on the deep processing of grain, the development of the oil and fat, meat, and dairy industries, the modernization of facilities, and an increase in the export of finished products.
For a nation with a well-developed agricultural base, this is a matter of both industrial growth and economic efficiency. Grains, oilseeds, meat, and milk can serve as raw materials for dozens of different products—ranging from food ingredients to industrial components. The more processing stages agricultural products undergo domestically, the greater the opportunities for creating value, expanding market reach, and developing related industries.
The advancement of the processing sector has been identified as a priority area by Head of State Kassym-Jomart Tokayev in his address to the people of Kazakhstan, titled "Kazakhstan in the Age of Artificial Intelligence: Current Challenges and Solutions Through Digital Transformation."
Processing gains momentum: shifting from a raw-material base to manufacturing
In recent years, the share of agricultural raw materials directed toward processing has grown in Kazakhstan. Between 2023 and 2025, the processing rate for key product categories—including meat, milk, oilseeds, corn, rice, and buckwheat—rose from 35% to 64%. The target is to reach 70% by the end of 2026.
To achieve this goal, the state has put in place various financial and investment support instruments. Enterprises have access to preferential financing, investment subsidies, tax incentives, and measures to encourage the procurement of domestic raw materials.
Between 2024 and 2026, approximately 230 billion tenge was allocated to finance the working capital of processing enterprises. Another mechanism for developing the sector is a program that replicates the experience of the North Kazakhstan Region; under this initiative, 39 investment projects for the processing of agricultural products—with a total value of 42.3 billion tenge—have been financed.
However, increasing processing volumes requires not only financial support but also the establishment of new production facilities capable of manufacturing more complex and high-demand products. One of the most promising areas is the deep processing of grain, a sector in which Kazakhstan plans to significantly expand its capacity in the coming years.
Six projects worth $4 billion: what will change in the grain industry?
Grain remains one of the key resources for Kazakhstan’s agro-industrial complex. Its industrial application extends well beyond traditional food-related uses; modern technologies allow for the production of starch, gluten, syrups, bioethanol, amino acids, and feed components from grain raw materials.
Approximately 510,000 tons of grain are directed toward deep processing annually. There are three specialized enterprises in the country that produce starch-based products, gluten, and bioethanol. In 2025, about 152,000 tons of starch-based products were manufactured, with 97,900 tons produced between January and August 2026.
Six projects—valued at $4 billion—are currently being implemented in the Turkistan, Zhambyl, Kostanay, and Akmola regions, as well as in Astana. These projects focus on the production of starch, gluten, syrups, bioethanol, and other high-value-added products. The new facilities will produce starch, gluten, syrups, bioethanol, feed components, and other high-value-added products. Some of these initiatives have already reached the implementation stage: the "Kazkrakhmal" (KazStarch) plant has been commissioned, and the Fufeng project has begun initial production.
The scale of the planned capacity represents a significant expansion in the potential uses for domestically grown grain. Rather than primarily selling raw materials, Kazakhstan will be able to increase its production of ingredients and components for the food industry and other sectors.
However, the volume of investment is not the only critical factor here. For new facilities to operate effectively, they require a stable supply of raw materials, reliable energy, access to water, transport infrastructure, and established markets. Without sufficient capacity utilization and competitive production costs, even large-scale projects will fail to deliver the expected economic returns.
The Oil and Fat, Meat, and Dairy Industries: Growth Through Processing
Industry development extends well beyond the grain sector. Kazakhstan is home to approximately 90 enterprises in the oil and fat industry, with a combined annual processing capacity exceeding 4.5 million tons of raw material. More than 90% of the sunflower seeds grown in the country are processed domestically.
The next objective is to diversify product ranges and increase the output of higher-value-added goods. Beyond vegetable oil, this includes specialized fats, food ingredients, and other components in demand by both domestic enterprises and international buyers.
In the meat and dairy sectors, there are roughly 210 meat-processing and 180 dairy-processing enterprises. They produce items such as sausages, canned meat, semi-finished products, fermented dairy goods, and other ready-to-consume products. In 2025, the production of canned meat increased by 48.3%.
Additional opportunities are emerging in the processing of wool and fruits and vegetables, as well as in the production of compound animal feed. Developing these areas allows for more efficient use of agricultural raw materials and expands the range of products manufactured in Kazakhstan.
For farmers, this translates into additional sales channels and potentially more stable demand for their raw materials. For the regions, it brings investment, job creation, and the development of supporting infrastructure. Ultimately, the outcome depends on how well all participants in the supply chain—agricultural producers, processors, transport providers, and trading companies—coordinate their efforts. Agro-industrial exports reach $7 billion
The growth in processing is also reflected in foreign trade. The share of processed goods within Kazakhstan’s agricultural exports has been rising year after year. In 2024, this share reached 52%, with the value of such exports totaling $2.66 billion.
By the end of 2025, exports of processed agricultural products had grown to $3.6 billion—an increase of 35.3% over the year—maintaining a 52% share of total agricultural exports. The target is to raise this figure to 70% by 2030.
For Kazakhstan, this presents an opportunity to expand its presence in foreign markets by offering goods that have undergone more extensive domestic processing. At the same time, developing the processing sector can reduce the reliance of certain industries on imported ingredients and semi-finished products.
However, an increase in production volume does not automatically guarantee an increase in exports. To enter new markets, enterprises must ensure consistent product quality, compliance with safety and certification standards, competitive pricing, and reliable supply chains. Long-term contracts with buyers and the diversification of export destinations are also essential.
Therefore, the expansion of production capacity must be accompanied by efforts to promote Kazakhstani products and secure sustainable demand abroad.
Moving toward a more sophisticated agricultural production structure by 2030
In the coming years, Kazakhstan faces several interconnected objectives. By the end of 2026, the goal is to increase the processing rate for key types of agricultural raw materials. By 2029, the country aims to establish deep-processing facilities for grain with an annual capacity of approximately 5.8 million tons of raw material. The target for 2030 is to increase the share of processed goods in agricultural exports to 70%.
Achieving these targets will require not only the launch of new production facilities but also the provision of raw materials, infrastructure development, the modernization of existing enterprises, and the expansion of sales markets.
Deep processing enables Kazakhstan to make more efficient use of its own agricultural base and increase the output of high value-added products. Ultimately, the key outcome will depend on the practical implementation of investment projects, the competitiveness of enterprises, and the existence of sustained demand.
Thus, the development of processing has become one of the avenues for diversifying Kazakhstan’s economy. Six major grain-processing projects, the expansion of existing facilities, and growth in exports are laying the groundwork for an increased share of finished goods within the agricultural sector. The actual impact will be determined by real production volumes, the utilization rates of new capacities, and the ability of Kazakhstani enterprises to compete in both domestic and international markets.