Danone to invest US$6.9M in its Kazakhstan production facility

KAZAKHSTAN – Danone, a French multinational company, has announced plans to invest US$6.9 million in its plant in the Almaty region in 2025 and 2026 to increase annual production to 40,000 tons.

The project was officially announced by the Kazakhstan Ministry of Agriculture, following discussions between government officials from Kazakhstan and France. In a statement, the ministry said Danone wants to double the plant’s exports.

The plant currently produces over 18,000 tons of dairy products annually, with one-third of its output exported to countries in the Caucasus, Central Asia, and Mongolia.

With the planned expansion, Danone seeks to increase production to 40,000 tons, enabling the company to meet growing regional demand and explore new export markets, including the Middle East and China.

Kazakhstan’s Minister of Agriculture, Aidarbek Saparov, welcomed the initiative, emphasizing its potential to strengthen the country’s role as a reliable supplier of dairy products to Asia and the Middle East.

“We welcome Danone’s investment plans to expand production capacity, launch new lines, and modernize technological processes. The ministry is prepared to offer the company comprehensive support. I am confident that the project will strengthen Kazakhstan’s position as a reliable supplier of dairy products to Asian and Middle Eastern countries,” he said.

The expansion aligns with Danone’s broader strategy in the Commonwealth of Independent States (CIS), which encompasses operations across the Middle East, Africa, and the Asia-Pacific region.

Q1 2025

The company announced a strong performance for the first quarter of 2025, with sales reaching US$7.79 billion, marking a 4.3% increase on a like-for-like basis. 

The growth was fueled by rising global demand for its diverse portfolio, including dairy, plant-based products, and specialised nutrition, particularly in regions like China, North Asia, and Oceania.

The company attributed its success to a balanced contribution from volume growth of 1.9% and price increases of 2.4%. 

Danone’s focus on premium health products, such as Activia yogurt, Evian water, and Alpro plant-based offerings, resonated with health-conscious consumers. 

Strong demand for infant milk formula and medical nutrition products in China played a pivotal role, offsetting weaker performance in the U.S. coffee creamer market, where competition and supply chain challenges persisted. 

“We are confident in our ability to capture growth in key categories and deliver value in 2025,” said Antoine de Saint-Affrique, Danone’s CEO.

Danone’s strategic emphasis on innovation and sustainability also contributed to its performance. 

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