Kazakhstan is set to launch six major projects aimed at modernizing, expanding, and constructing new sugar factories as part of its strategy to boost domestic sugar production. This initiative follows a significant increase in sugar beet cultivation and record-high harvests in 2024.
In 2024, the area dedicated to sugar beet cultivation grew to 25,200 hectares, nearly doubling from 13,400 hectares in 2023. Favorable weather conditions and government support measures resulted in a record sugar beet harvest of 1.3 million tons. The Zhambyl region contributed 648,000 tons, with an average yield of 575.6 centners per hectare, while the Zhetisu region harvested 612,300 tons with an average yield of 452.9 centners per hectare.
Despite the high yield, Kazakhstan’s existing sugar factories faced challenges processing the surplus due to financial constraints and limited capacity expansion efforts. Although the Comprehensive Plan for the Development of the Sugar Industry until 2026 outlined capacity expansions, debt issues hindered implementation.
To address this, government officials, including the Prime Minister and regional leaders, organized meetings with sugar beet suppliers and industry stakeholders. Operational headquarters were established to manage the acceptance and processing of the harvest. The government introduced subsidies to support transportation costs, raising the subsidy rate to KZT 45 ($0.1) per kilogram for sugar beets supplied from the Zhambyl region to the Aksu plant. Additionally, KZT 19.4 billion ($39 million) from the government reserve was allocated to subsidize farmers for delivered sugar beets.
To strengthen Kazakhstan’s sugar production infrastructure, the government is increasing investment subsidies for the modernization of existing facilities and the establishment of new plants. The subsidy rate for agricultural machinery purchases has been raised from 25% to 50%, and investment subsidies for sugar factories have been increased from 25% to 40%.
Key projects include the expansion of the Merken Sugar Plant, increasing its capacity from 3,000 to 4,000 tons per day. The Taraz Sugar Plant will receive new technological equipment to improve efficiency. In the Zhetysu region, the Koksu Sugar Plant is set to expand its processing capacity from 2,200 to 5,000 tons per day within two years.
Several new sugar factories are also in development. Qazsugar CO is working on a high-tech sugar plant in Shu, Zhambyl Region, with a planned daily processing capacity of 8,000 tons. In Aksu, Pavlodar Region, Social-Entrepreneurial Corporation Pavlodar (SPK) has completed a feasibility study for an 8,000-ton-per-day sugar plant, with ongoing negotiations with a Turkish company for implementation. Additionally, UAE-based Al Khaleej Sugar plans to begin construction on a sugar plant in Almaty Region in August 2025, with infrastructure work expected to be completed by mid-2027.
Given these developments, the projected sugar beet cultivation area for 2025 is expected to reach 18,400 hectares, ensuring sustainable production and stable processing capacity. The government continues to support the industry with targeted investments to enhance Kazakhstan’s self-sufficiency in sugar production.