Food production in Kazakhstan up 10% in H1

ASTANA. July 17 (Interfax) - Food production in Kazakhstan increased 10% year-on-year in H1 2025 to 1.8 trillion tenge or $3.4 billion at the current rate, the government press service said.

Food and beverage production accounts for 17.2% of manufacturing industry output, with only metals and machine building higher.

This growth is driven by government support measures, including subsidies for supplying agricultural raw materials for processing (meat, milk, sugar beets), subsidies for purchasing raw materials to produce butter and cheese, a 70% reduction in the VAT rate, and preferential working capital facility loans at 5%.

Compared to last year, the highest growth was recorded in fish products (+34.4%), vegetable oil (+20.3%), sausage products (+10.8%), and butter (+10.4%).

However, the government said that cereal grain production volumes had decreased due to seasonal factors.

Some regions saw a reduction in the output of confectionery products, canned goods, cheeses, and cottage cheese, primarily linked to disruptions in raw material supplies and restrictions in sales markets.