Sugar Production - The Times Of Central Asia

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Agriculture

Turkish Cengiz Holding Plans $500 Million Investment in Kazakhstan’s Sugar Industry

Turkish industrial conglomerate Cengiz Holding has announced plans to invest $500 million in the construction of two sugar processing plants in Kazakhstan, according to the Ministry of Agriculture. The announcement followed a meeting between Agriculture Minister Aidarbek Saparov and Cengiz Holding board member Jengiz Shaban. The proposed facilities would have a combined annual capacity of up to 300,000 tons of sugar. North Kazakhstan and Pavlodar regions are under consideration as potential locations for the new factories. The project has a 10-year investment horizon. Construction is expected to begin in 2026, with production to commence within two years. According to Shaban, the initiative aims to boost domestic sugar supply while also supporting the development of by-products such as animal feed, food ingredients, and industrial alcohol. Saparov described the proposal as “strategically important” for Kazakhstan’s food security. “The creation of new processing capacities and the formation of a sustainable raw material base are key priorities for the state,” he said. The Ministry of Agriculture reports that Kazakhstan currently operates four sugar factories, three of which process domestically grown sugar beets. Despite this, annual consumption stands at approximately 500,000 tons, with local production meeting only 14% of national demand. Earlier, another Turkish conglomerate, Safi Holding, also expressed interest in establishing a sugar processing facility in Kazakhstan. The existing sugar factories include Aksu-Kant (Taldykorgan district), Koksu Sugar Factory (Almaty region), and the Merken and Taraz plants in Zhambyl region. Three of these process local sugar beets, while the Taraz facility relies on imported cane sugar. In 2024, Kazakhstan recorded a bumper sugar beet harvest of 1.2 million tons, yet only about 700,000 tons were processed, once again exposing deep-rooted inefficiencies in the sector.

Industry

Turkish Safi Holding Eyes Sugar Factory Investment in Kazakhstan

Turkish industrial conglomerate Safi Holding has expressed interest in developing a high-tech sugar processing facility in Kazakhstan, according to the country's Ministry of Agriculture. The announcement followed a meeting between Agriculture Minister Aidarbek Saparov and Safi Holding CEO Safi Atakan. The two sides discussed the proposed plant’s specifications, which include the capacity to process up to 1 million tons of sugar beets annually and produce approximately 140,000 tons of sugar. The estimated investment ranges from $150 million to $200 million. Potential sites for the factory are currently under consideration. According to the ministry, the key criteria for site selection include the availability of arable land for beet cultivation and proximity to necessary infrastructure. Safi Atakan praised Kazakhstan’s agro-industrial potential, particularly in sugar production. "Kazakhstan presents favorable conditions for expanding sugar processing operations," he noted. A similar initiative is underway by UAE-based Al Khaleej Sugar, one of the world’s largest sugar producers, which is planning a plant in southern Kazakhstan. Industry Gaps and Import Dependence Kazakhstan’s sugar sector is currently under strain due to limited processing capacity. There are four sugar factories in operation: AksuKant (Taldykorgan district), Koksu Sugar Factory (Almaty region), and the Merken and Taraz factories in the Zhambyl region. Of these, three process locally grown sugar beets, while the facility in Taraz handles imported cane sugar. Despite a record harvest of 1.2 million tons of sugar beets in 2024, only about 700,000 tons were processed, exposing significant inefficiencies in the processing chain. In 2023, Kazakhstan produced 243,000 tons of sugar, less than half of its domestic demand. The remainder was imported, primarily from Russia. However, reliance on imports has proven volatile. In the summer of 2022, Russia’s temporary export ban led to a spike in domestic sugar prices. In response, the Kazakh government imposed seasonal export restrictions, which have been extended through 2025, to stabilize local markets.

Agriculture

Kazakhstan’s Record Sugar Beet Harvest Exposes Processing Industry Failures

Kazakhstan’s sugar industry saw a record sugar beet harvest in 2024, but the processing sector was unprepared to handle the influx. The gap between agricultural production and industrial capacity has once again underscored systemic weaknesses in the sector. A detailed analysis by Energyprom.kz highlights these ongoing challenges. Record Harvest, Limited Processing According to the National Statistics Bureau, sugar beet cultivation reached an all-time high in 2024, with 25,000 hectares sown, a 34% increase from the previous year. Enhanced government support spurred the expansion: farmers received 25 tenge per kilogram of beets delivered for processing (up from 15 tenge), and transport subsidies were raised from 25 to 45 tenge per kilometer. These incentives encouraged investment in farm equipment and modern technologies, lifting average yields to 507 centners per hectare. This translated into a gross harvest of nearly 1.3 million tons of beets, 2.5 times more than in 2023. However, only slightly more than half of the crop was processed. Senators in Kazakhstan’s Parliament reported that just 58.3%, approximately 700,000 tons, was processed. The remainder was either left to rot or exported, primarily to Kyrgyzstan. The Ministry of Agriculture offered a slightly higher figure, reporting that 989,000 tons had been processed. Even so, this left hundreds of thousands of tons unutilized. Responding to parliamentary concerns, Prime Minister Olzhas Bektenov acknowledged the issue, citing “high credit burdens” on processing enterprises and “dumping” by neighboring countries as key obstacles. Aging Infrastructure and Unrealized Potential Kazakhstan currently has four operational sugar factories, but only three are equipped to process sugar beets. These facilities are in a state of significant disrepair: the Koksu plant is 93 years old, Merken is 91, and Taraz is 88. Although hopes had been pinned on modernizing the Taraz facility to process up to 600,000 tons annually, the planned upgrades did not materialize. As a result, sugar production dropped despite the record harvest. In 2024, Kazakhstan produced 164,400 tons of sugar, a 25% decrease from the previous year. Meanwhile, exports surged: 143,000 tons of sugar were exported, a 7.5-fold increase. Nonetheless, imports continue to dominate the domestic market, covering 74.1% of consumption. Crop Reductions and Financial Risks Facing processing bottlenecks, the Ministry of Agriculture has announced plans to scale back sugar beet cultivation. In 2025, the planted area will be reduced to 18,400 hectares, a 25% decrease. The Zhambyl region will see its sugar beet area halved, while Zhetysu will experience a 20% cut. The decision has drawn strong criticism from farmers and lawmakers. Many producers had invested heavily based on previous state projections, purchasing machinery and training personnel. “What will happen to farmers who took out loans, bought equipment, and are now faced with a revision of the state strategy? This could lead to mass bankruptcies and negate years of support for the industry,” senators warned in an appeal to the prime minister. Strategic Setback and Future Uncertainty Kazakhstan’s sugar industry development plan for 2022-2026 envisioned expanding cultivated areas to 38,000 hectares, boosting production to 1.8 million tons of beets...