Milk of Discord: Why 934 Thousand Cows Can't Feed Either Farmers or Factories?

Ирэн Орлонская Economy
VK X OK WhatsApp Telegram
Disputes over the purchase prices for raw milk are actively continuing in the parliament, government, and among processors. Tazabek analyzes the situation with prices fluctuating from 32 to 48 soms per liter and investigates why this range is critically important for the entire industry. This issue involves not only the profitability of over 900,000 cows but also the incomes of hundreds of thousands of farmers, as well as the prices on store shelves that affect 7 million consumers.
Milk Production in Kyrgyzstan

According to the National Statistical Committee of the Kyrgyz Republic, as of February 1, 2026, the country produced 86,878.4 tons of raw milk, which is 2.1% more than in the same period of 2025 (85,105.3 tons). Production growth is observed in all seven regions; however, the rates vary.


The Chuy region is the undisputed leader, accounting for 28.5% of the total milk volume, while together with the Issyk-Kul region, they produce almost half (47.6%) of the milk in the republic. At the same time, significant declines in production are observed in Bishkek and Osh, at 14.4% and 26.2% respectively, which is associated with ongoing urbanization and a reduction in the number of households.
Cattle Statistics

As of the end of 2025, the total number of cows in all categories of farms in the country amounted to 934,259 heads. The regional breakdown reveals an interesting paradox: Jalal-Abad and Osh regions contain 44.6% of all cows but show the lowest productivity. The average milk yield per cow in the Jalal-Abad region is 68.7 kg, in Osh it is 94.7 kg, while the national average is 111.7 kg.


The Chuy and Issyk-Kul regions, having only 32.1% of the herd (about 300,000 heads), produce 47.6% of the milk due to better breed composition and feeding conditions.


The productivity gap between regions is almost threefold: a cow in the Chuy region produces 190.8 kg of milk per month, while in the Jalal-Abad region, it is only 68.7 kg. Interestingly, the Jalal-Abad region shows the highest increase in milk yields (+8.7%), which may indicate improved feeding conditions and herd renewal.
Price Policy: From 32 to 48 Soms per Liter

The purchase price of raw milk remains a key issue for the industry. According to the Ministry of Water Resources, Agriculture, and Processing Industry of the Kyrgyz Republic, as of early 2026, the price for milk with a basic fat content of 3.4% ranges from 32 to 48 soms per liter.


However, the actual price that farmers receive is often lower than stated. This is related to the fat content of the milk: the base price is set for milk with a fat content of 3.4%. For example, if a farmer delivers milk with a fat content of 2.8%, the price may drop to 29.64 soms per liter, which is 18% lower than the base price. At the same time, if the fat content is 4.2%, some factories may pay up to 49.35 soms per liter.

Torobaev reported on the prices at which dairy factories purchase milk from farmers
During the plenary session of the Jogorku Kenesh on February 11, 2026, Deputy Aysarkan Abdibaeva raised the issue of low purchase prices. Deputy Prime Minister Bakyt Torobaev provided data: one factory buys milk at 49.35 soms per liter at a fat content of 4.2% and at 33.82 soms at a fat content of 3%. Another factory offers 51.68 soms and 36.47 soms respectively.

“Thus, everyone was buying at 35 soms per liter, but then it was decided that the price of raw milk would depend on the fat content. Each dairy factory has its own table,” noted Bakyt Torobaev.
Processors' Opinions

Milk processors insist that a sharp increase in the purchase price could lead to systemic risks. In 2024, during a meeting with participants from the Talas, Chuy, and Issyk-Kul regions, a threshold of 40 soms per liter was discussed, and enterprises warned at that time:

If the price for a liter of pasteurized milk (2.5% fat) increases, this will lead to a price increase of 20–30%. The cost of a kilogram of butter will increase by 10–20%. This will affect the entire range of dairy products. Some enterprises may cease operations, and milk collectors will reduce their volumes.

These concerns remain relevant. Processors continue to point out the low quality of raw materials: from a liter of milk delivered by farmers, on average, only 600 ml of pasteurized product is obtained. This means that if a factory buys a liter for 40 soms, the actual cost of raw materials for producing 1 liter of finished milk is approximately 66.7 soms. Considering additional processing, packaging, logistics, and margin costs, the retail price inevitably rises to 90–100 soms.

Among the specific problems voiced by factories is the uncontrolled use of medications by farmers, which directly affects the quality of milk. The Ministry of Agriculture proposed creating independent laboratories to control quality, but the implementation of this initiative has not yet taken place.
Deadline March 15: Current State of Affairs

On March 11, 2026, a meeting was held at the Antimonopoly Regulation Service under the Ministry of Economy and Commerce, dedicated to establishing base prices for raw milk by regions of the Kyrgyz Republic.

The results of the meeting highlighted the need for a transparent approach to pricing to support farmers and develop the dairy industry. The Ministry of Water Resources, Agriculture, and Processing Industry committed to intensifying work with interagency working groups.

According to Cabinet Resolution No. 724 of December 4, 2024, these groups are to determine base prices twice a year: for the winter period by September 15 and for the summer period by March 15. Thus, the deadline is approaching.

In the Jogorku Kenesh, the regulation of prices for meat, milk, and beans is being discussed
At the same time, new regulatory measures are being considered in the Jogorku Kenesh. During a meeting of the Finance Committee, Deputy Kamila Talieva inquired whether the Antimonopoly Service would be able to control prices for meat, milk, and beans. The head of the agency, Aibek Mamyraliev, stated that the relevant bill would be presented to parliament soon.

“The new legislative initiative aims to change the approach to pricing for socially significant products,” noted Aibek Mamyraliev.

We remind you that pasteurized milk with 2.5% fat is included in the list of socially significant goods for which temporary state price regulation is possible (Cabinet Resolution of the Kyrgyz Republic dated September 8, 2023, No. 455).

Deputy raised the issue of low purchase price of raw milk
Amid discussions about prices in parliament, other alarming signals are emerging. Deputy Meder Chotonov emphasized during the discussion of the law "On Breeding in Animal Husbandry" that the low purchase price of milk annually threatens the profitability of farming enterprises. Deputy Chyngyz Azhibaev pointed out the need to combat livestock smuggling in the Batken region. Deputy Saltanat Amanova raised the issue of the need to increase lending to farmers to expand the herd.
Systemic Problems in the Industry

Behind the discussions about prices lie deeper structural problems that cannot be resolved by simple price regulation.

Raw milk in Kyrgyzstan is mainly produced in peasant and personal subsidiary farms. As noted by the Ministry of Economy, this affects quality, as unlike organized farms where dietary and veterinary control standards are adhered to, individual farms often do not meet these requirements.

The difference in yields between the Chuy (190.8 kg) and Jalal-Abad (68.7 kg) regions is due not only to geographical and climatic factors but also to the genetic potential of the herd. The law "On Breeding in Animal Husbandry," which is currently under consideration in the Jogorku Kenesh, should create a legal framework for improving breed composition.

Moreover, there is no independent quality control system. The acceptance of milk and determination of its parameters is carried out by the processing enterprises themselves, which deprives farmers of the opportunity for independent verification and contesting the price recalculation.

VK X OK WhatsApp Telegram

Read also: