Milk powder market in Kazakhstan

Earlier Report Observations

From 2018 to 2020, Kazakhstan's milk powder market volume expanded from 50 419 t to 64 951 t. This growth occurred despite persistent price pressure from Russian imports, which accounted for a large share of supply. The significant jump in 2020 was partly driven by government subsidies for the establishment of dairy farms, which encouraged investment in raw milk production.

Market volume contracted to 58 020 t in 2021, coinciding with the introduction of stricter technical regulations for dairy product labeling, including mandatory identification of reconstituted milk. These new rules likely temporarily constrained product availability. Recovery followed, with the market reaching 63 409 t by 2023, supported by continued dumping of low-priced Russian imports and the announcement of large-scale budget subsidies aimed at developing 65 new dairy farms to boost domestic output.

The regulatory environment tightened throughout the period, with new labeling rules taking effect in 2021 and again in September 2023. Further developments in 2024 included the release of new national standards and preparations for the 'Honest Sign' digital labeling system, reflecting ongoing efforts to shape market quality and transparency alongside competitive import pressures.

Production milk powder in Kazakhstan

In kind, 2017-2020, t

Top producers of milk powder, 2017-2020

World map of production of milk powder, 2017-2020

Kazakhstan's milk powder production has increased for the third consecutive year. In 2020, the country produced 34 109 tonnes of milk powder, marking a sharp rise of 25.6% compared to the previous year. Over the period from 2017 to 2020, production grew by 51.4%, with a compound annual growth rate of 14.8%.

Annual dynamics of production in Kazakhstan in kind, 2017-2020, t

Exports milk powder from Kazakhstan

Exports in kind, t

Kazakhstan's milk powder export volume has risen for the third year in a row. In 2020, exports reached 1 150 tonnes, up by 75.1% from the previous year. Between 2017 and 2020, exports surged by 675.7%, which translates to an annualized growth rate of 98.0%.

Annual dynamics of product's exports from Kazakhstan in kind, 2017-2020, t

From 2017 to 2020, Russia played a dominant role in Kazakhstan's milk powder exports in kind, consistently accounting for 90.6% of total flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Kazakhstan in kind, 2017-2020

Exports in value, K $ US

Kazakhstan's milk powder export value has increased for the third consecutive year. In 2020, exports stood at 6 832 thousand US dollars, showing a dramatic increase of 339.0% from 2019. Between 2017 and 2020, exports grew by 1 777.3%, equating to an annualized rate of 165.8%.

Annual dynamics of product's exports from Kazakhstan in value, 2017-2020, K $ US

Over the 2017–2020 period, Russia and China together captured 96.7% of total exports in value terms, while the remaining flows were thinly spread across other markets.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Kazakhstan in value, 2017-2020

Imports milk powder to Kazakhstan

Imports in kind, t

After a two-year decrease, Kazakhstan's milk powder imports in kind have increased. In 2020, the country imported 36.3% more than the previous year, with a total of 23 466 tonnes. Between 2017 and 2020, imports rose by 10.3%, corresponding to an annualized growth rate of 3.3%. The lowest import volume was recorded in 2019 at 23 466 tonnes, following the largest decline of 13.7% that year.

Annual dynamics of product's imports to Kazakhstan in kind, 2017-2020, t

From 2017 to 2020, Belarus, France, and Ukraine formed the main cluster of markets for Kazakhstan's milk powder imports in kind, with shares of 36.6%, 13.7%, and 11.6% respectively, combining for 61.9% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Kazakhstan in kind, 2017-2020

Imports in value, K $ US

After a two-year decrease, Kazakhstan's milk powder import value has increased. In 2020, imports amounted to 80 413 thousand US dollars, up by 43.9% year-on-year. Between 2017 and 2020, imports grew by 13.7%, with an annualized rate of 4.4%. The minimum value was recorded in 2019 at 55 882 thousand US dollars, after the largest decline of 18.7% in 2018.

Annual dynamics of product's imports to Kazakhstan in value, 2017-2020, K $ US

In the 2017–2020 period, Belarus, France, and Russia were the main destinations for Kazakhstan's milk powder imports in value terms, accounting for 35.3%, 15.9%, and 11.0% respectively, with a combined share of 62.1% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Kazakhstan in value, 2017-2020