Kazakhstan Expands Localization of Agricultural Machinery Production

The AGROMASH plant in Kostanay is expanding cooperation with international agricultural machinery manufacturers and developing local production of machinery and components. Seven foreign companies have been involved in projects in Kazakhstan — Väderstad, Dewulf, Lindsay Corporation, Amity Technology, Vervaet, Kuhn Group and Brandt Agricultural Products.

The new partnerships complement the company’s existing projects with John Deere, Deutz-Fahr and Lovol, as well as the production of domestic ESSIL combines. As a result, a major multi-brand agricultural machinery production center is gradually being established at the Kostanay site.

Cooperation with international manufacturers makes it possible to expand the range of machinery produced, adopt modern technologies and new production processes, as well as develop the necessary expertise directly in Kazakhstan.

At the same time, the company is increasing the level of localization. An increasing number of production operations are being carried out domestically, including the manufacture of individual units, parts and components. A localization center has been operating at the plant since 2021, and its capacity is being gradually expanded.

In 2025, more than 2,000 units of self-propelled machinery were produced at the manufacturing site. In addition, more than 300,000 components for agricultural machinery were manufactured. Compared with previous years, component production increased fivefold.

The development of domestic agricultural machinery manufacturing is supported by government measures. Farmers can purchase Kazakhstan-made machinery under preferential leasing programs at an annual interest rate of 5%, with no down payment and a term of up to 10 years.

In addition, government subsidies of up to 30% are available. This year, 350 billion tenge has been allocated to the preferential agricultural machinery leasing program.

As the program has been implemented, the volume of machinery purchased by farmers has increased. Over two years, the figure rose by 35%. In 2023, 7,710 units of agricultural machinery worth a total of 178 billion tenge were provided through leasing, compared with 10,400 units worth 269 billion tenge in 2025.

Growth has also been recorded in the self-propelled machinery segment. In 2025, agricultural producers purchased 4,249 tractors. This was 50% more than in 2023, when 2,846 units were purchased.

The number of combines purchased over the same period increased by 58%. While farmers acquired 512 units in 2023, the figure reached 807 combines in 2025.

Growth in leasing volumes is continuing this year. According to KazAgroFinance JSC, as of August 1, 8,920 units of agricultural machinery worth a total of 286.5 billion tenge had been provided to farmers under leasing arrangements. This is 23% higher than in the same period last year.

Financial instruments enable agricultural producers to renew their machinery and tractor fleets and reduce the financial burden associated with purchasing modern equipment.

The development of local production also helps shorten delivery times for spare parts and reduce repair times. This factor is particularly important during sowing and harvesting campaigns. Manufacturing components within Kazakhstan reduces dependence on international logistics chains and makes it possible to supply farms with the necessary parts more quickly.

At the same time, AGROMASH is developing its service infrastructure. The company’s network currently includes nine branches and 11 representative offices located in Kazakhstan’s grain-producing regions.

The regional network makes spare parts more accessible to farms and enables specialists to be dispatched directly to agricultural producers when necessary.

Expanding cooperation with foreign manufacturers, increasing localization, developing domestic component production, preferential financing and a service network are creating conditions for the further development of agricultural machinery manufacturing in Kazakhstan.

For farmers, this means a wider choice of modern agricultural machinery, shorter equipment servicing times and more reliable supplies of components. At the same time, the development of local production contributes to industrial cooperation, the adoption of new technologies and the development of additional manufacturing expertise.

The Ministry of Agriculture continues its work to improve access to modern machinery for agricultural producers and develop domestic agricultural machinery manufacturing as part of the technological modernization of the agro-industrial complex and efforts to strengthen Kazakhstan’s food security.