Kazakhstan is taking steps to develop its onion processing industry. Officials in the Zhetysu region are working with Chinese investors to build a plant that will process and freeze onions for export. The project aims to create jobs, generate tax revenue, and reduce the country's dependence on raw onion exports.
In 2024, Kazakhstan harvested 756,000 tons of onions. However, a lack of proper storage facilities forces farmers to sell their crops quickly at low prices. Much of the harvest is exported, mainly to Pakistan (44%) and Russia (36%), where buyers pay an average of 27 tenge per kilo (€0.05). Later, Kazakhstan imports onions back at a significantly higher price—around 71 tenge per kilo(€0.14).
With onion prices fluctuating between 39 and 122 tenge per kilo (€0.08-€0.21), experts believe that processing onions instead of exporting them raw could stabilize the market and increase profits for local producers.
Processed onions are in high demand in Europe and the U.S., where restaurants and food companies prefer frozen, pre-cut ingredients for convenience and hygiene reasons. Countries like Ukraine, the Netherlands, China, and India already dominate this market, supplying ready-to-use onions to the global food industry.
Ukraine, for example, has developed a successful onion processing sector, where onions are cleaned, chopped, frozen, and packaged for export. This method avoids strict border controls that apply to fresh produce and increases the product's value.
Entering the global processed onion market will not be easy. Kazakhstan faces competition from established players, logistical challenges, and the need for strict food safety certifications such as HACCP, ISO, and FDA. Without these approvals, exports to key markets will be impossible.
The domestic market for frozen onions is also underdeveloped, as consumers in Kazakhstan and the CIS prefer fresh onions. If exports do not succeed, local demand may not be enough to sustain the business.
Experts say that for Kazakhstan's onion processing industry to succeed, government support will be essential.
Source: www.caravan.kz