Kazakhstan explores dairy sector support to curb inflation

KAZAKHSTAN – Kazakhstan’s government has considered additional support for dairy processors as part of broader efforts to slow inflation and stabilise prices for essential food products.

The proposal was discussed during a government meeting focused on inflation dynamics and price trends for socially significant food products.

According to Aizhan Bizhanova, Kazakhstan’s First Vice Minister of Trade and Integration, inflation in the country has been slowing for five consecutive months, declining from 12.9% in September 2025 to 11.7% in February 2026.

Food inflation has also continued to ease, falling from 13.5% in December and 12.9% in January to 12.7% in February.

The ministry attributes the slowdown in part to the expansion of the list of socially significant food products subject to price regulation. The list has been expanded from 19 to 31 items, and since the beginning of the year authorities have opened more than 800 administrative cases related to violations of pricing rules.

“During the first week of March, the price index for socially significant food products increased by 0.1%. At the same time, dairy products recorded price growth, mainly due to rising costs of raw milk,” the government’s press service said in a statement.

Additional pressure on prices has also come from higher energy costs and increased production expenses.

Dairy products account for a significant share of Kazakhstan’s food inflation, estimated at about 6.3%. The Ministry of Trade and Integration therefore proposed exploring mechanisms to support dairy processing enterprises in order to reduce production costs and stabilize prices.

FAO advances strategic programme for dairy development in Kazakhstan

Recently, the Food and Agriculture Organization of the United Nations (FAO) in Kazakhstan, in cooperation with the Ministry of Agriculture of the Republic of Kazakhstan, convened a seminar to present the results of the TCP/KAZ/4001 project, aimed at supporting the development of a long-term programme for dairy livestock development in Kazakhstan.

Implemented with FAO’s technical assistance, the project seeks to enhance the competitiveness, productivity and investment attractiveness of Kazakhstan’s dairy sector, aligning its development with international best practices and national agricultural priorities.

During the seminar, participants reviewed the results of a comprehensive assessment of the current state of the dairy sector and its value chain in Kazakhstan.

The event also introduced the draft Long-Term Programme for Dairy Livestock Development, together with a proposed Action Plan for its implementation and a Roadmap for attracting investment into the sector.

Discussions focused on priority measures needed to ensure sustainable growth, modernization and improved efficiency of dairy production. Participants exchanged views on strengthening the value chain, increasing productivity and creating enabling conditions for investment in the dairy industry.

Kairat Koshenov, Deputy Director of the Livestock Department of the Ministry of Agriculture of the Republic of Kazakhstan, noted that: “The development of a long-term programme for the dairy sector is an important step toward strengthening Kazakhstan’s food security and increasing the competitiveness of our livestock industry.

“The Ministry of Agriculture highly values the technical support provided by FAO, which has helped us assess the current state of the sector and identify priority measures to stimulate sustainable growth, modernization and investment.”

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