Danone to expand dairy production capacity in Kazakhstan

ASIA – Danone is set to expand its production capacity in Kazakhstan, with plans to install an additional production line by 2025. 

This announcement came following a meeting between Kazakhstan’s Minister of Agriculture, Aidarbek Saparov, and French Ambassador to Kazakhstan, Sylvain Giguet. 

The discussions centered on the company’s efforts to increase its production output and strengthen its presence in the region’s dairy industry.

The planned expansion will involve an investment of 730 million tenge and aims to bolster Danone’s existing production facility, which currently produces over 50 types of dairy products, including yogurts. 

Notably, the factory uses milk sourced exclusively from Kazakh farmers, underscoring the company’s commitment to supporting local agriculture. 

40% percent of the output from this facility is exported to neighboring regions, including Central Asia, the Caucasus, and Mongolia, highlighting Kazakhstan’s strategic importance as a production hub for Danone in the wider region.

By enhancing its capacity in Kazakhstan, the company can better serve both domestic consumers and export markets, positioning itself for long-term growth in the region. 

The installation of the new production line is expected to boost overall output, allowing the company to meet rising consumer demand for high-tech, high-quality dairy products.

Beyond the expansion of its production capacities, the meeting between Kazakh and French officials also touched on a range of other agricultural initiatives. 

These included discussions on strengthening bilateral trade in agricultural products between Kazakhstan and France. 

In the first eight months of 2024, trade turnover in this sector reached $67 million, a figure that has been bolstered by a nearly sixfold increase in rapeseed exports from Kazakhstan to France. 

Additionally, the parties explored ways to enhance Kazakhstan’s livestock sector through a joint project aimed at improving local cattle breeds. 

The initiative involves the use of artificial insemination with French cattle semen and is being implemented in partnership with the French company Synetics and JSC “Asyl-Tүlik.” 

This collaboration is expected to improve the genetic quality of Kazakh cattle and boost livestock productivity.

Another key issue on the agenda was the potential localization of seed production in Kazakhstan by the French seed company Limagrain. 

This project would help strengthen Kazakhstan’s agricultural self-sufficiency by increasing the availability of high-quality seeds for local farmers. 

The meeting also explored the possibility of exporting Kazakh horse meat to France, signaling further opportunities for agricultural trade between the two countries.

 Earlier in 2024, the company announced plans to re-enter the Indian dairy market, signaling its renewed focus on expanding its global dairy operations.

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