The government of Kazakhstan is currently developing strategies and policies to stimulate milk production at an industrial production level to increase milk processing capacity. We use and expand the reasoned action approach as a framework to study the factors underlying the rural household’s motivation to participate in a governmental programme aimed at increasing rural cooperative production in Kazakhstan to increase milk production using primary data acquired from 181 randomly selected dairy households in the Akmola region of Kazakhstan. We account for the rural household’s psychological factors and socio-demographic characteristics along with the household’s risk attitudes, production structure, level of information about the government support programme and cooperatives, cultural aspects as well as the household’s proximity to the main market. A bivariate probit model is used to jointly estimate the impact of these factors on the rural household’s intention to join and create a cooperative. The results show that rural households which hold positive views towards cooperatives, have a relatively high production capacity, are aware/know of cooperatives, and do not have a dairy business as a source of household income are relatively keen to participate in collective actions. Perceived social norms and household risk attitudes also play a significant role in the rural household’s intention to participate in collective actions. Finally, gender and nationality are found to be positively associated with joining and creating a cooperative, while higher educated rural households are found to be less motivated to participate in the programme. In order to stimulate milk production at an industrial production level through a policy that encourages collective action, we recommend a policy that (a) supports rural households which have the capacity to produce and are in need; (b) is attractive to rural households which consider dairy as a source of income; and (c) is well disseminated and well explained to the targeted rural households.

We estimate the monetary value of a policy aimed at increasing rural co-operative production in Kazakhstan to increase milk production. We analyse the drivers associated with public support for such policy using the contingent valuation method. The role of individuals’ psychological aspects, based on the reasoned action approach, along with individuals’ views on the country’s past regime (i.e., to the former Soviet Union), their awareness about the governmental policy, their sociodemographic characteristics, and household location on their willingness to pay (WTP) for the policy is analysed using an interval regression model. Additionally, we examine changes in individuals’ WTP before and during the COVID-19 pandemic. The estimated total economic value of the policy is KZT 1335 bn for the length of the program at KZT 267 bn per year, which is approximately half the total program budget, which includes other interventions beyond the creation of production co-operatives. The total economic value of the policy would equal the cost of the whole program after 10 years, indicating public support for this policy amongst Kazakh citizens. Psychological factors, i.e., attitude, perceived social pressure, and perceived behavioural control, and the respondents’ awareness of the policy and views on the Soviet Union regime are associated with their WTP. Sociodemographic factors, namely, age, income, and education, are also statistically significant. Finally, the effect of the shocks of COVID-19 is negatively associated with the respondents’ WTP.