Business news from Ukraine

Business news from Ukraine

Kazakhstan will invest $118 million in construction of new plant for  production of gelatin

KAZGELATIN LLP intends to build a plant in Almaty region to produce gelatin with capacity of 10 thousand tons per year, the press service of the Ministry of Agriculture of Kazakhstan reported.

“The project provides for the construction of a plant in Alma-Ata region to produce food gelatin and products of deep processing of animal by-products – hides, bones and other collagen-containing raw materials,” – said in the message following the meeting of Deputy Minister of Agriculture Ermek Kenzhekhanuly with representatives of the company.

In addition to the main products, the plant will produce collagen components, fodder proteins and technical fats. Total investment in the project is estimated at 58 billion tenge ($117.9 million at current exchange rates).

“Currently, the domestic market’s needs for food gelatin are fully covered by imports, despite the availability of a sufficient raw material base in the country. Kazakhstan has significant volumes of animal by-products, which, if properly processed, can become a source of high value-added products. The launch of production will reduce import dependence, increase the level of processing of agricultural raw materials and strengthen food security,” the ministry said.

Special attention was paid to the creation of a network of procurement organizations in the regions to accept hides and bones of farm animals.

As reported, in January “daughter” of Turkish Iskefe Holding began to build a plant in Almaty for the production of food gelatin with a capacity of 7 thousand tons per year. The products of this enterprise will be used in food, pharmaceutical and cosmetic industries.

According to the Ministry of Agriculture of Kazakhstan, in the sphere of processing of leather raw materials there are 11 enterprises in the country, capable to process annually 3.3 million hides of cattle and 3.1 million hides of small horned cattle. However, the actual level of processing remains low: in 2024, only 5.9% of raw materials were sent for processing, 7.7% were exported, and 86.4% remained unclaimed.

Within the framework of a comprehensive plan for the development of processing of agricultural products for 2024-2028, it is envisaged to create more than 70 collection points for wool and about 200 collection points for hides to form a stable raw material base for processing enterprises, the department said.

 

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