Kazakhstan’s food production rose by 10% in the first half of 2025, reaching KZT 1.8 trillion ($3.4bn), outpacing official growth targets and highlighting the sector’s rising contribution to the national economy. The food and beverage industry now accounts for 17.2% of total manufacturing output, ranking third after metallurgy and mechanical engineering.
The data was presented at a recent meeting of the Headquarters for Ensuring Economic Growth, chaired by Deputy Prime Minister and Minister of National Economy Serik Zhumangarin. Officials reviewed the sector’s performance and discussed strategies to maintain and accelerate momentum.
The 10% growth, which exceeded the government’s plan by 5.3 percentage points, was driven by a range of state support measures. These included subsidies for transporting agricultural raw materials like meat, milk, and sugar beets, as well as for purchasing inputs for butter and cheese production. The government also cut VAT by 70% for selected food categories and offered preferential loans for working capital at 5%.
Notable increases were recorded in several product categories compared to the first half of 2024. Production of fish products rose by 34.4%, vegetable oil by 20.3%, sausages by 10.8%, and butter by 10.4%. However, cereal production declined due to seasonal factors. In some regions, the output of confectionery, canned goods, cheeses, and cottage cheese also fell. Deputy Minister of Agriculture Azat Sultanov attributed these decreases to raw material supply interruptions and limitations in sales markets.
Beverage production also grew steadily, amounting to KZT 566.7bn ($1.1bn) in the first half of the year. The physical volume index increased by 5%, surpassing the planned target by 3.7 percentage points. While the production of alcoholic beverages declined, non-alcoholic beverage output increased by 9.8%.
Deputy Prime Minister Zhumangarin stressed the importance of direct ministerial involvement in industry development.
“Each industry minister should be involved in the economy of their enterprises,” he stated. “All enterprises in the industry should be known in detail and barriers that hinder their growth should be promptly eliminated.”
He tasked the Ministry of Trade and Integration with addressing market access issues in the regions and redistributing supplies where necessary. The Ministry of Agriculture was instructed to finalize a development roadmap for the food industry, incorporating the role of large enterprises. Zhumangarin also called on financial institutions, including Baiterek and the Agrarian Credit Corporation, to step up investment efforts in food production.
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