Hungarian Investors to Build Three Feed Production Plants in Kazakhstan

Kazakhstan’s Deputy Prime Minister and Minister of National Economy, Serik Zhumangarin, held talks with representatives of the Hungarian company UBM Group. The discussions focused on implementing a large-scale investment project aimed at producing premixes and compound feeds in Kazakhstan.

New Plants and Import Substitution Prospects
The project involves the construction of three plants in the Kostanay and Karaganda regions, as well as in Almaty. Over the course of two years, from 2025 to 2027, production is expected to reach 48,000 tons of premixes and 300,000 tons of compound feed per year. In addition to the plants, the project includes the establishment of a modern laboratory and a training center to develop industry specialists.
This initiative is of strategic importance to Kazakhstan, as it aims to reduce dependence on imported feed, which currently exceeds 250,000 tons annually. The launch of domestic production will ensure local farmers have access to high-quality compound feed, reducing livestock production costs.

State Support and New Investment Opportunities
Serik Zhumangarin emphasized that providing the livestock sector with quality domestic feed is a key priority for the country’s agricultural industry. He also noted that Kazakhstan is implementing a livestock development program based on the Australian model, and the introduction of such projects will help reshape the feed market and lower meat production costs.
The Deputy Prime Minister also highlighted that the government is actively seeking investments not only in feed production but also in the deep processing of grain, meat, and dairy products. Kazakhstan aims to ensure that at least 90% of the country’s food needs are met through domestic production, inviting investors to explore opportunities in these sectors.

Investor Readiness and Challenges
UBM Group shareholder Varga Akos expressed the company's willingness to collaborate, stating that UBM has the necessary technologies and experience to establish modern production facilities in Kazakhstan.
In the Karaganda region, a business partner and land plot have already been identified for the plant’s construction. In Kostanay and Almaty, partnerships have also been established, but the exact locations for the factories are yet to be finalized.
Additionally, the Hungarian company is considering building another plant in Kazakhstan’s southern regions, but a local business partner for this project has not yet been found.

Government Support and Next Steps
During the discussions, UBM Group requested assistance from the Kazakh government in expediting the process of land allocation and ensuring compliance with sanitary and epidemiological regulations.
Following the meeting, Serik Zhumangarin instructed the Ministry of Agriculture and local authorities to finalize land allocations by the end of March. This will allow investors to commence land preparation and initial construction work in the second quarter of 2025.
By advancing this collaboration, Kazakhstan and UBM Group are setting the stage for significant progress in the country’s agricultural sector, ensuring stable feed supply for farmers and supporting long-term growth in meat and dairy production.

🔑 Key Takeaways:
🔹 Three new plants in Kostanay, Karaganda, and Almaty – 48,000 tons of premixes and 300,000 tons of compound feed annually.
🔹 Import substitution and livestock sector support – The project will reduce reliance on imported feed (currently over 250,000 tons per year) and lower meat production costs.
🔹 Investors are ready, but land issues remain – Kazakhstan is expediting land allocation processes so construction can begin in Q2 2025.