Kazakhstan’s oil exports: butter exports up 40%, sunflower oil exports nearly 50%

Kazakhstan continues to expand the production of butter and sunflower oil while increasing exports to international markets. Exports of sunflower oil recorded the most significant growth, El.kz reports.

Butter production increased by nearly 50%

According to the Bureau of National Statistics, Kazakhstan produced 13.8 thousand tonnes of butter with a fat content of up to 85% between January and April 2026. This represents a 47.4% increasecompared to the corresponding period of the previous year.

During the first four months of the year, 394.1 tonnes of butter were exported, marking a 40.4% year-on-year increase, compared to 280.7 tonnes during the same period in 2025. The principal export destinations were Russia, Mongolia, Kyrgyzstan, and Belarus.

Domestic sales reached 15.7 thousand tonnes over the reporting period. Kazakhstan also imported 2.2 thousand tonnes of butter, primarily from Belarus and Iran. Imported products accounted for 13.9% of the domestic market.

Domestic output expands while imports remain

The increase in domestic production indicates that local manufacturers are meeting an increasingly larger share of domestic demand. Nevertheless, imports continue due to differences in product assortment, raw material costs, contractual supply arrangements, and production capacity utilisation at domestic processing facilities.

Comparisons between production, exports, and domestic sales over a short reporting period should be interpreted with caution, as inventories produced during the previous year may also enter the market.

Consequently, export or sales volumes do not necessarily correspond directly to current production levels.

Butter production also depends on the performance of the dairy sector. Processing facilities require a stable supply of raw milk with appropriate butterfat content, while milk production remains subject to seasonal fluctuations.

Sunflower oil production exceeded 335 thousand tonnes

The sunflower oil segment remains substantially larger than the dairy segment. Between January and April 2026, Kazakhstan produced 335.5 thousand tonnes of refined and unrefined sunflower oil.

Production increased by 13.2% compared with the same period of 2025. Domestic sales totalled 29.7 thousand tonnes during the reporting period.

Imports reached 47.9 thousand tonnes, accounting for 12.5% of the domestic market, indicating that the majority of domestic demand continues to be supplied by national producers.

Sunflower oil exports increased by nearly 50%

During the first four months of 2026, Kazakhstan exported 353.8 thousand tonnes of sunflower oil, representing a 49.6% increase compared with January - April 2025.

Uzbekistan remained the largest export destination, importing 153.2 thousand tonnes. The country has consistently ranked among the leading markets for Kazakhstan’s vegetable oil products.

China ranked second with imports of 127.2 thousand tonnes. Geographic proximity, a large consumer market, and harmonised sanitary requirements continue to make China one of Kazakhstan’s priority export destinations.

Exports continue to Central and South Asia

Kazakhstan exported 38.6 thousand tonnes of sunflower oil to Afghanistan during the reporting period. Tajikistan imported 27 thousand tonnes, while exports to Iran totalled 4.9 thousand tonnes.

The remaining export volumes were distributed among other international markets, although exports remain concentrated primarily in neighbouring Asian countries.

This export structure has developed over several years. In 2024, China accounted for 42.4% of Kazakhstan’s vegetable oil exports, while Uzbekistan represented 35.4%.

Production has expanded consistently

Kazakhstan produced 672.1 thousand tonnes of vegetable oil in 2023. Production increased to 753 thousand tonnes in 2024, representing annual growth of 12%.

According to preliminary operational data, production reached 888.8 thousand tonnes in 2025, including 757.2 thousand tonnes of sunflower oil.

Over the past two years, total vegetable oil production has increased by more than 216 thousand tonnes, supported by expanded cultivation of oilseed crops and increased domestic processing capacity.

Expansion of oilseed cultivation

In 2025, the area under oilseed crops expanded to 3.9 million hectares, representing a 37.7% increase compared with the previous agricultural season.

Oilseed harvests reached 4.8 million tonnes, compared with 3.3 million tonnes a year earlier, providing processors with a substantially larger raw material base.

Sunflower production also increased, reaching 2.3 million tonnes in 2025, compared with 1.8 million tonnes in 2024. The largest oilseed cultivation areas remain concentrated in the northern and eastern regions of Kazakhstan.

Processing capacity allows further growth

Kazakhstan currently has 88 oilseed processing enterprises with a combined annual processing capacity of approximately 4.7 million tonnes of oilseeds.

Average capacity utilisation remains at around 35%, indicating that the sector retains significant potential to increase production without substantial investment in additional processing facilities.

However, available processing capacity alone cannot ensure further growth. The sector also requires adequate raw material supplies, sufficient working capital, reliable logistics, and long-term export contracts.

Kazakhstan among the world’s leading exporters

According to the Ministry of Agriculture, Kazakhstan ranks eighth globally among sunflower oil exporters. The country is also among the top three suppliers of sunflower meal to the European Union.

Exports of all vegetable oils increased by 34.6% during the first eleven months of 2025. Nearly half of total exports were shipped to Uzbekistan, while approximately one-third were destined for China.

Since 2023, Kazakhstan has maintained a 20% export duty on sunflower seeds, a measure designed to encourage domestic processing rather than exports of raw agricultural commodities.

Global market developments

Russia and Ukraine remain the world’s largest producers of sunflower oil. According to the United States Department of Agriculture (USDA), Russia is expected to account for approximately one-third of global production during the 2025/2026 marketing year.

Ukraine contributes more than one-fifth of global output. Changes in harvest volumes, processing capacity, and export logistics in these two countries continue to have a significant impact on global prices and market availability.

International vegetable oil prices have remained supported in recent years by constrained palm oil supplies and reduced processing of rapeseed and sunflower crops. The OECD and the Food and Agriculture Organization of the United Nations (FAO) project continued robust demand over the coming decade.

Kazakhstan explores olive cultivation

Olives may eventually join Kazakhstan’s portfolio of oilseed crops. Pilot plantations have been established in the Mangystau and Turkistan regions.

Approximately 2,000 olive trees were previously planted in the village of Kuryk, where they have successfully adapted to local climatic conditions.

Commercial production of Kazakh olive oil has not yet commenced. The project envisages the establishment of commercial plantations, a nursery, and a processing facility, with commissioning planned by 2030. The first commercial harvest is expected within several years, as olive trees typically begin producing fruit after approximately six years.

Food consumption and biofuel demand to support market growth

Approximately 52% of global vegetable oil consumption is used for food production and cooking. Additional volumes are utilised in the manufacture of cosmetics, animal feed, paints and coatings, and fuel.

Around 18% of global vegetable oil production is already directed toward renewable diesel and biodiesel production. The OECD and FAO project continued expansion of this segment, particularly in Indonesia, Brazil, and the US.

For Kazakhstan, growing global demand presents additional export opportunities. However, the sector remains sensitive to harvest outcomes, transportation costs, and the trade policies of importing countries. Full-year 2026 results will demonstrate whether the current pace of export growth can be sustained following the processing of the new harvest.