Кинталь Исламов: «Почему другие могут строить крупные молочные комплексы, а мы не можем?» - Atameken-Agro

Kintal Islamov: "Why can others build large-scale dairy complexes, but we can't?"

 

Kintal Islamov, Chairman of the Board of Atameken Agro, will deliver a presentation at the 4th Central Asian Dairy Congress, AqAltyn, which is set to take place in Shymkent, Kazakhstan, from November 30 to December 1, 2026. Ahead of the event, he spoke to DairyNews.today about why a capacity of 3,100 cows was chosen for the new farm, the lessons learned from the company’s previous project, the total investment required, and the role that government support plays in the development of the dairy farming sector.

 

Atameken Agro is developing a project for a new dairy farm with a capacity of 3,100 milking cows and is considering further scaling up this model. In the long term, the group aims to increase the herd size across its modern facilities to 18,000 cows—or up to 27,000 cows if projects are implemented across all nine of its agricultural holdings. Simultaneously, the company is exploring opportunities for deep milk processing, including the construction of a plant with a capacity of 400–500 tonnes per day.

 

— Kintal, you mentioned that Atameken Agro plans to build a new dairy farm for 3,100 cows. What stage is the project at?

 

— We are already designing the farm and selecting equipment. The previous project generally gave a positive result. It turned out to be expensive, but we consider the results we achieved to be quite good.

 

We essentially built the first farm from the ground up. It is now in its third year of operation, and the average milk yield for the past year was 10,713 liters per cow. That is a good result for an initial phase.

 

— Do you currently have 1,400 dairy cows at the first farm?

 

— Yes, 1,400 dairy cows. The total herd, including young stock, is 2,900 head. The new farm is designed for 3,100 dairy cows. 

 

— Do you view the 3,100-cow format as a model that could subsequently be replicated?

 

— Yes. To begin with, we want to test this model. For a farm of this size, the approach needs to be more industrial and technologically advanced. Of the existing operation, perhaps only the core principle will remain: that cows must be properly housed, fed, and milked. The actual technology, however, will be significantly different.

 

For instance, at our current farm, we do not have a centralized, permanent feed preparation facility. At the new complex, we plan to build a large feed preparation unit, where the formulation of rations will be carefully monitored and recorded. This should significantly improve the quality of feed preparation.

 

— What else will change in terms of design and management practices?

 

— Currently, we use a standard ventilation system. For the new farm, we intend to switch to tunnel ventilation. The project involves a large dairy barn designed to house 3,100 cows. It is essential to provide this number of animals with an adequate supply of fresh air and maintain a comfortable microclimate for them.

 

The preliminary design includes four feed tables. However, the final configuration is still being refined.

 

— What kind of milking system are you considering?

 

— We are looking at proposals from several suppliers, including GEA, DeLaval, and Afimilk. We plan to install a 100-stall rotary milking parlor.

 

— One hundred seats is a very large carousel. Why did you choose this size?

 

“We realize that we don’t yet have enough experience operating a farm of this scale. A 100-stall rotary parlor will give our staff more time to work with each cow and allow for a more relaxed, orderly milking process.”

 

On farms with a similar number of animals, we have seen 80-stall rotary parlors in use. They are capable of handling the workload, with some spare time to spare. However, for a first project of this scale, we want to build in a certain margin.

 

— There is a view that intensive milking on large rotary parlors shortens the productive lifespan of cows. Does this concern you?

 

— We have visited quite a number of farms, and we haven’t come across any instances where animal injuries were linked specifically to the rotary milking parlor. Productivity levels, however, are another matter.

 

When a cow produces 48–50 liters of milk per day, her productive lifespan is indeed shortened, potentially lasting only 2–2.5 lactations. At a yield of up to 39 liters, experts estimate that a cow can comfortably sustain 3–3.5 lactations. Therefore, I would not directly link an animal’s lifespan to the type of milking equipment used.

 

— Why did you settle on exactly 3,100 cows? Why not two thousand, or, say, five thousand?

 

— It’s a question of economies of scale. According to our estimates, this effect is most pronounced with a herd size of roughly 2,500 to 4,000 cows. Within this range, it is possible to significantly reduce per-unit capital expenditures.

 

Once a farm grows significantly larger than 4,000 head, the additional economies of scale begin to diminish. Furthermore, this is our first project of such a scale. We have to consider not only the construction itself but also the available feed base. We are not yet prepared to dedicate all of our crop-growing land exclusively to supporting dairy production.

 

— Did the first complex convince you that dairy farming could be a profitable business?

 

— Yes, we are generating a good income and seeing solid production results. That is why the decision to move on to the next project was made deliberately.

 

— But at the same time, you say that the first complex turned out to be expensive. When will it be able to pay for itself?

 

— We have invested approximately 13.4 billion tenge in it. Excluding the time value of money, the payback period under current conditions could be around nine years. If the price of milk rises, this period will shorten. However, if we discount the cash flows and account for the cost of capital, the payback period will be longer.

 

— Nine years is a long time. Why is the business sector still willing to invest in such projects?

 

— Government support plays a significant role. If low-cost financial resources are available, a project’s economics become more attractive. We consider a model to be acceptable in which an investor contributes about 30% of their own funds, while the remaining 70% is obtained through a government program.

 

In that case, it’s possible to properly account for the time value of money and depreciation, and the project appears quite efficient. We’ll see how the construction of the second farm goes. If it also yields good results, we will make decisions regarding further scaling.

 

— How much might a new facility for 3,100 dairy cows cost?

 

— At the moment, we are looking at a figure of approximately 25 billion tenge, including the purchase of cows. However, it is difficult to state a final amount: construction material prices are constantly rising, construction costs are high, and the geopolitical situation remains unstable.

 

A significant portion of the costs is directly related to the purchase of animals. Livestock has become noticeably more expensive in recent years.

 

— What mistakes from your first project will you try not to repeat?

 

— The main problem was a lack of personal experience. We didn’t always know the true market value of specific solutions, nor did we fully grasp which technologies were actually necessary.

 

As a result, some elements turned out to be redundant—we could have done without them. At the same time, there were other features that we actually lacked. For instance, a fully-fledged feed preparation unit—or "feed kitchen"—would have been useful.

 

I wouldn’t call these major errors. Rather, there are certain things that could have been done better, more carefully, and more cost-effectively.

 

— But did you work with consultants when implementing the first project?

 

— Yes, and the problem is precisely that we listened to them. Many suppliers are primarily focused on selling equipment, rather than transferring technology to the client. Equipment and the technology for using it effectively are two very different things.

 

— Can you give a specific example of a decision that you would reconsider today?

 

— At our first farm, we installed cow mats. It’s likely more profitable for suppliers to sell those specific products. Later, as we looked into the practices of other farms, we discovered that keeping cattle on deep bedding can be more comfortable and hygienic.

 

Processed manure can be used as bedding. This allows for the reuse of some organic material and helps reduce costs. Naturally, such a system requires regular monitoring and maintenance, so each option has its own pros and cons.

 

We studied farms in Europe, the USA, and China. Many of these operations use deep bedding—such as sand, processed manure, or occasionally sawdust. Mats were encountered far less frequently. This raises a question for us once again: do suppliers always provide producers with complete and objective information?

 

— Where will the new farm be located?

 

— The distance between the existing complex and the new one will be approximately 120 kilometers. The site was chosen, among other reasons, with consideration for the availability of construction materials.

 

Crushed stone, sand, and gravel are expensive these days, especially when they have to be transported 200–300 kilometers. Furthermore, there are road restrictions to consider. Having these materials nearby should help us somewhat reduce the amount of capital investment required.

 

— What genetics do you use at the first farm?

 

— We purchased livestock from Denmark and Germany. Judging by their productivity, the genetics have proven to be good. The first calves raised on our farm have already arrived, and we are now beginning to integrate them into the herd as replacements. The initial results also look quite promising.

 

— What are the average milk quality indicators?

 

— The last figures I recall are approximately 4.3% fat and about 3.5% protein.

 

— Who do you supply milk to?

 

— The primary buyers are Eurasian Milk and Milk Project. The base price for the year is approximately 250 tenge per liter.

 

— How important is the subsidy per liter of milk produced? Can a large, modern farm operate without it?

 

— If there are no subsidies, milk will become more expensive. It’s a direct correlation. No one is going to produce milk at a loss.

 

Yes, milk in Kazakhstan is expensive, but it is still cheaper than, for example, in Europe. Subsidies help keep the cost of raw materials at a certain level; if they were removed, those costs would inevitably have to be recouped through the final retail price.

 

— The state claims it will reimburse a portion of capital expenditures. To what extent does the actual support provided align with the stated level?

 

— Officially, the figure is 25%, but in practice, we haven’t received that much. As I recall, the current standard is around 2.9 million tenge per head. Modern projects no longer fit within this standard.

 

When comparing the compensation received with the actual capital expenditures for the construction of the first farm and its equipment, the government support amounted to approximately 8%. This is significantly less than the 25% that had been stated.

 

— How acute is the staffing issue for you?

 

— As is the case everywhere, there is a certain level of staff turnover. The primary tools for retention are wages and working conditions. The new farm uses modern equipment; there’s no scenario where someone is forced to work waist-deep in mud or manure. Everything is kept quite clean and tidy, and waste is properly disposed of.

 

Absolute cleanliness is, of course, impossible to achieve at a livestock facility. For instance, there is a need to maintain "bioreactors," and certain types of waste are inevitably generated. But, on the whole, the conditions are far more comfortable than what people typically imagine when they think about working on a farm.

 

The village of Korneevka is nearby, so the enterprise is not far from a populated area.

 

— Do you also find managers and technologists in the local market?

 

— When we launched the first farm, we invited specialists from Belarus. We had Belarusian managers and livestock specialists working for us. Now the complex is completely under the management of our specialists.

 

— How do you assess the geography of Kazakhstan’s dairy market? Most industrial production is developing in the north, while a significant portion of consumers lives in the south.

 

— This is one of the market’s distinctive features. The primary capacity for milk production is concentrated in the north—in the North Kazakhstan and Akmola regions—whereas a significant portion of the population lives in Almaty, Shymkent, the Zhambyl region, and other southern areas.

 

That is precisely why we aim to develop several large farms and gradually increase production volume.

 

— What volume of milk would you like to produce in the future?

 

— In the long term, we are looking at a production volume of 600–700 tonnes per day. The upper limit is approximately 800–900 tonnes.

 

Once we reach a volume of at least 200 tons per day, we will need our own in-house deep processing of milk.

 

— Are we talking about the construction of a dairy plant?

 

— Yes, we are already looking into this. There is traditional production—for example, of cheeses—but there is also more advanced milk processing. New technologies are emerging that make it possible to extract highly valuable components from milk, which are then used in medicine and infant nutrition.

 

After launching the second farm, we will likely focus on expanding the first complex, and then begin construction on a third farm. Around that time, we will need to establish a processing plant with a capacity of 400–500 tons of milk per day.

 

— What total livestock population does your strategy envision?

 

— In the foreseeable future, we are looking at a figure of around 18,000 cows. The group has nine farms; if a facility for approximately 3,000 dairy cows were to be built at each of these locations, the total herd size could reach 27,000.

 

Of course, we won’t be able to build all nine farms in five years. But if we manage to carry out at least half of the program during that period—for instance, by launching four complexes—that would already be a good result.

 

Over the next five years, once we have gained experience and built up the necessary resources, it will be possible to construct two farms per year simultaneously.

 

— Whose experience do you look to when shaping a strategy like this? For instance, have you studied the Russian company EkoNiva?

 

— Yes, we visited the EkoNiva facilities and observed how their production is organized. If others are capable of managing operations on such a scale, why can’t we?

 

This introduces a certain competitive element: why should we be any worse?

 

— And whose example should one follow today — that of Russian or Chinese manufacturers?

 

— For now, I would look to the Americans as a model. This applies to the quality of animal husbandry, the management of the microclimate in barns, and approaches to feeding and rearing young stock. In the U.S., these systems are well-developed.

 

— How serious a threat do epizootic risks—including foot-and-mouth disease—pose to large-scale dairy operations today?

 

— This needs to be treated very carefully. This is a big problem, and everyone needs to strictly comply with veterinary and sanitary requirements.

 

Small-scale private farms pose a certain threat. A minor disease outbreak can spread and inflict enormous damage on a large-scale commercial farm. When livestock numbers are low, the level of oversight and accountability is often lower; because potential losses appear insignificant, the approach to biosecurity tends to be more casual.

 

In general, our culture of veterinary safety is not yet sufficiently developed. COVID-19 taught people to be somewhat more responsible regarding the spread of infections, but livestock producers have not fully applied this lesson to their own operations. So far, as the saying goes, Allah has spared us. I hope that continues to be the case, but it is better to learn from the mistakes of others.

 

I believe that issues of veterinary safety should be addressed by the state in a systematic manner.

 

— You are planning to take part in the AqAltyn Central Asian Dairy Congress. What are your expectations for the event?

 

— To be honest, to come along and hang out with you guys. And, of course, to hear something interesting.

 

At events like these, you can meet people and subsequently build a closer working relationship. It was at AqAltyn, for instance, that we first met some Dutch experts, with whom we have stayed in touch ever since. That is why such gatherings are valuable—not just for the presentations themselves, but also for the connections that form among the participants.

 

 

30.10.2026

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