08/2016
#
30 K y r gy zsta n Agriculture Bulletin New Amendments to Land Code Help Greenhouses and Drip Irrigation KGS 39.5 Million in Borrowed Funds Allocated for Agriculture Kyrgyzstan and WFP to Launch New Agricultural Education Program Agricultural Exports Increased by 43% since the Beginning of the Year
All materials are published “as is� and are the property of their respective owners.
Contents State Initiatives ........................................................................................................... 2 1) 2) 3) 4) 5) 6) 7) 8) 9)
Kyrgyzstan Proposes Increased Cooperation with Qatar ................................................................ 2 Saudi Interest in Kyrgyz Agricultural Products Increasing ............................................................... 2 National Statistical Committee Proposes Postponing Agricultural Census ..................................... 2 Eurasian Economic Commission Expected to Help Exports into the EEU ....................................... 2 Chair of Russian-Kyrgyz Development Fund Mets with Kyrgyz President....................................... 3 Agricultural Cooperatives to be Created in All Kyrgyz Regions ....................................................... 3 KGS 3 Billion in Soft Loans to Kyrgyz Farmers thus far in 2016 ....................................................... 3 State Wheat Procurement for Food Security Begins....................................................................... 3 Guarantee Fund to Help in Sustainable SME Development ............................................................ 4
Foreign Aid ................................................................................................................. 4 10) Half of the Russian-Kyrgyz Development Fund Allocated for Agriculture....................................... 4 11) USAID Assists Farmers in Business Opportunities with Frunze Supermarkets ............................... 4
Private Sector.............................................................................................................. 5 12) 13) 14) 15)
Kyrgyzstan Expects a Record Harvest this Year ............................................................................... 5 Karagat Fest Highlights Fruits and Berries from the Issyk-Kul Region ............................................. 5 Naryn Residents Ask for Help with Meat Exports into the EEU ...................................................... 5 Farmers Need to be More Active in Agricultural Cooperatives ...................................................... 5
Note: The Agriculture Bulletin presents a monthly roundup of headlines and news stories related to Kyrgyzstan’s agricultural sector. This bulletin is prepared by Business & Finance Consulting—a Swiss-based development finance consulting company with a long history of working in Kyrgyzstan. Currently, BFC is implementing the Agricultural Lending Programme for KfW. Read more »
BFC Max-Högger-Strasse 6 CH-8048 Zurich, Switzerland
Phone: +41 44 784 22 22 Fax: +41 44 784 23 23
info@bfconsulting.com www.bfconsulting.com
BFC. Agriculture Bulletin
State Initiatives 1)
Kyrgyzstan Proposes Increased Cooperation with Qatar
August 19th, 2016, http://kabar.kg/eng/economics/full/16744
Kyrgyz Ambassador to Qatar, Nuran Niyazaliev, met with the CEO and Board Director of Hassad Food, Khalid Mubarak Al-Delaim, to discuss issues regarding the export of Kyrgyz products into Qatar. Ambassador Niyazaliev drew particular attention to the possibility of Qatar importing Kyrgyz vegetables, fruits, honey, beans and meat. In addition, he suggested that the Qatari side might find benefit in investing in small- and medium-sized food processing enterprises in Kyrgyzstan. For his part, the CEO noted the great potential for cooperation between the two countries, saying that representatives of the Hassad Food have twice visited Kyrgyzstan and are aware of the high-quality agricultural products of the country. At the same time, he noted that the main problem is the lack of opportunities for rapid and direct transport of goods from Bishkek to Doha. In this regard, the parties agreed to work together to find solutions to existing problems.
2)
Saudi Interest in Kyrgyz Agricultural Products Increasing
August 15th, 2016, http://www.agroprod.kg/index.php?newsID=154
Kyrgyz Minister of Agriculture, Turdunazir Bekboev, met with representatives from Saudi Arabia to discuss the growing Saudi interest in Kyrgyz agricultural products, especially those that are organic. Currently, Saudi Arabia imports approximately 25 tons of honey and between 50 to 60 tons of nuts annually; however, the recent discussion has given increased hope that bilateral cooperation between the two countries will continue to develop and that Kyrgyz agricultural products will find a greater place in the Saudi market. For their part, Saudi partners expressed a desire to move forward on a plan to increase exports by constructing new quarantine and laboratory centers. Minister Bekboev also assured the Saudi businessmen that the investment climate in Kyrgyzstan is important and protected by Kyrgyz legislation.
3)
National Statistical Committee Proposes Postponing Agricultural Census
August 9th, 2016, http://ru.sputnik.kg/Kyrgyzstan/20160809/1028444915.html
The National Statistical Committee of Kyrgyzstan has put forth a proposal to postpone the agricultural census planned for November 2016 until 2018 due to an insufficient budget which has not allowed for the necessary preparatory work to have been fully carried out.
4)
Eurasian Economic Commission Expected to Help Exports into the EEU
August 4th, 2016, http://kabar.kg/economics/full/109536
Deputy Economic Minister Daniyar Imanaliev has announced that meat export problems at the KyrgyzKazakh border are expected to improve shortly and that solutions include the elimination of veterinary inspection points along the border. The Eurasian Economic Commission created a special commission to inspect Kyrgyz laboratories among other elements in order to assure safety and quality standards were being met and to ease export requirements on Kyrgyz meats into the Eurasian Economic Union. The commission has already given the green light to include 12 Kyrgyz businesses in a register of suppliers to
Page 2
BFC. Agriculture Bulletin
the EEU, meaning that they can export without problem. That list is expected to expand in the near future. While largely optimistic about the commission’s assessments, the Deputy Minister did note that more work remains to be done, specifically in ensuring export production is not too small and in addressing territorial zoning, vaccination and animal identification issues in dairy production.
5)
Chair of Russian-Kyrgyz Development Fund Mets with Kyrgyz President
August 3rd, 2016, http://kabar.kg/economics/full/109408
Kyrgyz President Almazbek Atambayev met with the Chairman of the Russian-Kyrgyz Development Fund, Kubanychbek Kulmatov, to discuss current efforts by the Fund in SME development in Kyrgyzstan, particularly those efforts directed towards agriculture. President Atambayev noted that economic recovery and increasing the export potential of Kyrgyzstan can only be achieved when businesses have direct access to credit. He also stressed the need to further revitalize the activities of the Russian-Kyrgyz Development Fund in all areas of SME development within the context of the Eurasian Economic Union integration. So far, the Fund has provided financing for more than 340 projects in the amount of USD 118 million.
6)
Agricultural Cooperatives to be Created in All Kyrgyz Regions
August 3rd, 2016, http://www.eng.24.kg/economics/181440-news24.html
The Kyrgyz government is pursuing a plan to create agricultural cooperatives in all regions of the country. Despite the fact that a large part of the population lives in rural areas, the share of agriculture, in terms of GDP, is quite small. The speedy development of cooperatives will bolster the sector by facilitating easier access to agricultural products by processors and an easier point-of-sale by farmers. To this end, the Ministry of Agriculture has been tasked with forming an inter-ministry working group to develop a comprehensive program for the development of cooperative farms and to make proposals for the establishment of model farms in each region.
7)
KGS 3 Billion in Soft Loans to Kyrgyz Farmers thus far in 2016
August 3rd, 2016, http://www.minfin.kg/ru/novosti/novosti/ayyl-charbany-karzhyloo-4-dolbooru-boyuncha-3-mlrd.html
Kyrgyz farmers have received KGS 3 billion in soft loans thus far under the Financing of Agriculture 4 project. The project helps to provide loans from commercial banks and specialized financial institutions at a discounted rate to businesses and individuals which are engaged in crop development, animal husbandry, agricultural processing, and other services in the agricultural sector.
8)
State Wheat Procurement for Food Security Begins
August 2nd, 2016, http://www.eng.24.kg/community/181428-news24.html
The Foundation for State Material Reserves began procuring wheat grain from local farmers on August 10, and collection points have been established in all regions of the country. The collection of wheat is for the purposes of food security and creating favorable economic conditions for the product. Preference is being given to third-class grains with a gluten content of not less than 23%.
Page 3
BFC. Agriculture Bulletin
9)
Guarantee Fund to Help in Sustainable SME Development
August 1st, 2016, http://www.timesca.com/index.php/news/16944-kyrgyzstan-creates-guarantee-fund-to-support-lending-ofsmall-and-medium-business
Restricted access to finance, largely due to a lack of collateral, has traditionally been a barrier to the successful development of small- and medium-sized enterprises (SMEs) as 40% to 50% of potential borrowers (especially those in rural areas) are refused banks loans because of little-to-no collateral to offer. To help solve this issue, the government has initiated the establishment of the Guarantee Fund to provide a guarantee to banks when small- and medium-sized businesses lack sufficient collateral to obtain a loan. The Fund will help to create jobs, boost development, reduce internal migration, increase the share of SMEs in Kyrgyzstan’s GDP, and support women entrepreneurs by improving the sustainability of SMEs, increasing their production and income, increasing export potential, and reducing poverty. Priority areas for the Fund include: production, agriculture, agricultural processing, and trade and services.
Foreign Aid 10) Half of the Russian-Kyrgyz Development Fund Allocated for Agriculture August 26th, 2016, http://novosti.kg/2016/08/polovinu-sredstv-rossijsko-kyrgyzskogo-fonda-razvitiya-napravyat-naagrosektor/
Half of the Russian-Kyrgyz Development Fund will be allocated to agriculture and the agricultural processing industry. A new work program of the Fund for the next 5 years is being developed, member of the Board of the Fund, Erkin Asrandiev, informed. According to him, 430 projects have been financed within 11 months of operation under the Fund.
11) USAID Assists Farmers in Business Opportunities with Frunze Supermarkets August 25th, 2016, https://www.usaid.gov/kyrgyz-republic/press-releases/aug-25-2016-usaid-assists-farmers-explore-businessopportunities
USAID’s Agro Horizon project, through the public association Agro Lead, sponsored business-to-business meetings in Bishkek and Osh for agricultural producers earlier this month. The meetings enabled farmers and small- and medium-sized enterprises to explore commercial opportunities for the supply of fresh and processed agricultural products directly to Frunze, one of the country’s largest chains of supermarkets. So far, nine participants have signed contracts valued at over USD 365,000 with Frunze for the supply of fresh vegetables, dried fruits, juice, and dairy products. Seven other participants continued contract negotiations following the end of the official meetings. The meetings are one of many opportunities organized by USAID to link producers and markets. USAID has been working with local farmers under the Agro Horizon project to increase their incomes by boosting their productivity, improving product quality, and expanding markets for their agricultural goods. Technical cooperation with these farmers has resulted in doubling, or even tripling, yields as well as better market access and a greater ability to sell their goods at higher prices. The Frunze chain has seven big supermarkets in Kyrgyzstan and plans to extend its business to Kazakhstan and Europe; therefore, the company needs high-quality, local products that meet market requirements and international standards.
Page 4
BFC. Agriculture Bulletin
Private Sector 12) Kyrgyzstan Expects a Record Harvest this Year August 17th, 2016, http://vesti.kg/index.php?option=com_k2&view=item&id=41825
Kyrgyz farmers have begun the harvest season and have already collected three times more wheat, vegetables and melons than last year. 350 thousand tons of vegetables, 150 thousand of cucurbits crops and 190 thousand tons of potatoes have already been collected. September will also see the start of the sugar beet harvest, which is also expected to exceed that of last year.
13) Karagat Fest Highlights Fruits and Berries from the Issyk-Kul Region August 11th, 2016, http://www.timesca.com/index.php/news/16980-fruit-and-berry-
The fourth annual Karagat Fest, a fruit and berry festival, was held in Teploklyuchenka, a village in the Issyk-Kul region, on August 6, 2016. The festival brings together between 2,000 and 3,000 guests from all over the region as well as neighboring regions in an effort to popularize and promote fruits and berries grown in Issyk-Kul. Festival participants demonstrate their fruits and berries alongside the growing techniques they use in a fun atmosphere while also affording guests the chance to taste their products. The festival also aims to foster an atmosphere where farmers can not only sell their fruit and berry crops but also establish links with buyers who can enhance the export potential of the crops, thus further developing the sector in the region. The event was held as part of the Karagat Plus program which is implemented by the AVEP NonGovernmental Foundation and is supported financially by the Kumtor Gold Company. The concept of the Karagat Plus program is to teach the farmers how to apply new techniques and practices. The program introduces innovative methods of crop production, teaches the farmers to use new methods and approaches in agriculture, spreads frost-resistant and high-yielding seedlings, erects greenhouses and storage rooms, and introduces drip irrigation. Around 5,000 farmers have been trained in applying new drip irrigation methods under the program, and thousands more have learned how to grow crops in greenhouses.
14) Naryn Residents Ask for Help with Meat Exports into the EEU August 5th, 2016, http://www.turmush.kg/ru/news:307548
Citizens of Naryn, most of whom are engaged in animal husbandry, are disappointed following Kyrgyzstan’s failure to join the Customs Union of the Eurasian Economic Union (EEU). The failure means the export of meat and meat products from Kyrgyzstan remains a more complicated and slower process and has resulted in the price of meat falling to KGS 200 per kilogram. Naryn residents are asking that the situation be resolved as quickly as possible with new laboratories and another round of negotiations with the EEU.
15) Farmers Need to be More Active in Agricultural Cooperatives August 4th, 2016, http://kabar.kg/rus/society/full/109446
Former Agriculture Minister Jumakadyr Akeneev believes that farmers need to increase their interest and activity in agricultural cooperatives. The former minister expressed that such an effort by farmers would help Kyrgyz agriculture by making it easier for both internal and external investors to come in and do business in the agricultural sector. In addition, the cooperatives would help farmers gain access to long-term contracts and, potentially, advanced payment for harvests. Page 5
Prepared by Business & Finance Consulting (BFC) www.bfconsulting.com In this bulletin, BFC provides extracts from articles that have been published by others and as a result cannot be held responsible for such content. The articles do not necessarily reflect the opinions of BFC, its staff, its associates or its partners. Copyright of articles is retained by their authors.