KazPetFood, a subsidiary of Kusto Group, and Germany’s Wagner Feedmill and Silo Plants GmbH have signed a €31 million agreement to construct a modern pet food manufacturing facility in the city of Alatau, Almaty Region. The initial phase of the enterprise is engineered to produce 27,000 metric tons of dry and wet pet food annually, generating approximately 350 direct manufacturing and engineering jobs.
The bilateral agreement was formalized on September 29 in Berlin during the Kazakhstan-Germany Business Forum, held alongside the official state visit of President Kassym-Jomart Tokayev to the Federal Republic of Germany.
According to KazPetFood corporate disclosures, the German engineering partner will supply complete industrial production lines, turnkey mechanical systems, and proprietary processing automation. The enterprise is positioned as Kazakhstan’s first modern, high-capacity industrial complex dedicated to specialized domestic pet nutrition.
Scope of the €31 Million Technology Agreement
The strategic partnership with Wagner establishes the core technological infrastructure for the manufacturing complex, encompassing heavy-duty industrial milling, high-precision extrusion machinery, automated packaging systems, and digital quality-assurance instrumentation required for commercial-scale output.
The reported €31 million represents the baseline contract value for technology transfer, engineering design, and equipment delivery. The total aggregate capital expenditure for civil construction, utility hookups, and commercial commissioning has not been publicly disclosed.
The initial operating phase will deliver an annual nameplate capacity of 27,000 metric tons across premium dry kibble and vacuum-sealed wet formulations. In subsequent phases, KazPetFood plans to scale production lines and broaden its product portfolio. An exact commercial launch timeline will be detailed following site groundbreaking.
Domestic Agricultural Sourcing and Deep Supply-Chain Localization
The manufacturing architecture is designed to source primary agricultural feedstock domestically, progressively increasing the depth of in-country processing and local value addition.
KazPetFood aims to establish a vertically integrated domestic supply chain connecting regional grain growers and livestock processors to finished pet nutrition, packaging manufacturing, localized logistics fleets, and specialized mechanical maintenance services.
For regional agricultural suppliers across the Almaty and Zhetysu regions, the plant promises substantial commercial demand for feed-grade wheat, corn, animal protein meals, and specialized fats, alongside demand for industrial packaging and third-party logistics. The ultimate economic multiplier will depend on the pace of factory commissioning and capacity utilization.
“Our strategic objective is to develop sustainable domestic manufacturing, systematically deepen localization, and manufacture premium products capable of competing across international markets,” stated Kenen Zhandos, CEO of KazPetFood.
Export Ambitions Across Central Asia
The Alatau production hub is engineered to serve both domestic consumer demand and high-growth export destinations. The company has designated neighboring Central Asian markets—particularly Uzbekistan, Kyrgyzstan, and Tajikistan—as primary export targets before evaluating broader Eurasian trade corridors.
Domestically, the facility is designed to substitute a significant portion of imported pet food brands, which currently dominate retail shelves in Kazakhstan. Specific brand architectures, retail tiering, and market share targets remain proprietary at this stage of development.
The export strategy leverages Kazakhstan’s strategic logistics corridor and competitive cost structure. Long-term commercial viability will hinge on formulation quality, production unit economics, supply-chain resilience, and retail distribution partnerships.
Industrial Cooperation Within the Germany-Kazakhstan Framework
At the Berlin business forum, Kazakhstani authorities emphasized readiness to launch a joint investment-industrial initiative with Germany, supported by a curated portfolio of flagship industrial partnerships.
The agreement between KazPetFood and Wagner directly aligns with bilateral priorities: integrating world-class German technology, accelerating domestic manufacturing localization, and exporting high-value-added agro-industrial products.
For the newly established special administrative city of Alatau, the project serves as a cornerstone initiative linking urban industrial development with the agricultural heartland of southern Kazakhstan. The anticipated 350 jobs encompass skilled technical operators, food technologists, quality control engineers, and logistics specialists.
Dedicated Nutrition Program for the Kazakh Tazy
KazPetFood also announced an institutional initiative supporting the international pedigree recognition of the Kazakh Tazy, Kazakhstan’s historic hunting sighthound breed, which recently received provisional international recognition from the Fédération Cynologique Internationale (FCI).
The company is collaborating with leading veterinary nutritionists to formulate specialized, biologically appropriate dietary profiles tailored specifically to the physiological demands, metabolic rates, and athletic build of the Tazy breed.
While breed-specific research represents a culturally significant initiative, the primary commercial focus remains the execution of the Alatau manufacturing plant. Key upcoming milestones include site preparation, equipment fabrication in Germany, and civil construction preceding the commercial rollout of Phase 1.
