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.
