03/2017
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37 K y r gy zsta n Agriculture Bulletin KGS 40 million for animal identification project Agricultural machinery to become cheaper Russian-Kyrgyz Development Fund spent USD 202 million 47 Kyrgyz enterprises can export to the EEU
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Contents State Initiatives ........................................................................................................... 2 1) 2) 3) 4) 5) 6) 7)
Working group meets to discuss exporting honey .......................................................................... 2 KGS 40 million for animal identification project ............................................................................. 2 Technical mission regarding GPS+ made to Kyrgyzstan .................................................................. 2 Nearly KGS 280 million in preferential loans in 2017 ...................................................................... 3 Agricultural machinery to become cheaper .................................................................................... 3 Kyrgyz-Kazakh border issues could affect GDP growth ................................................................... 3 Potential problems for successful spring field works ...................................................................... 3
Foreign Aid ................................................................................................................. 4 8) 9)
President signs law ratifying loan agreement with IDB................................................................... 4 Russian-Kyrgyz Development Fund spent USD 202 million............................................................. 4
Private Sector.............................................................................................................. 4 10) 11) 12) 13) 14)
Kyrgyzstan adds fruit storage capacity ............................................................................................ 4 47 Kyrgyz enterprises can export to the EEU .................................................................................. 5 Issyk-Kul Agro 2017 forum to be held in Karakol ............................................................................ 5 Milk production up in 2016 ............................................................................................................. 5 Kyrgyz farmers to present products in Moscow fairs ...................................................................... 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 »
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BFC Agriculture Bulletin
State Initiatives 1)
Working group meets to discuss exporting honey
March 29th, 2017, http://mineconom.gov.kg/index.php?option=com_content&view=article&id=7145&catid=63&lang=ru
At a regular meeting of the working group for honey exports, representatives of the Union of Beekeepers and the Ministry of Agriculture presented information on measures aimed at creating conditions for the export of honey and for ensuring the traceability of beekeeping production. The working group also discussed issues and activities within GSP+ and the actions necessary to export and promote Kyrgyz honey in European markets. As a result of the meeting, further activities aimed at creating the conditions necessary for the export of honey, including the drafting of a roadmap for making specific proposals, were determined. Attendees at the meeting included representatives of the Ministry of Economy, the Ministry of Agriculture, the Office of the State Inspectorate, the Union of Beekeepers and the CCA as well as an expert from the German Physico-Technical Institute.
2)
KGS 40 million for animal identification project
March 28th, 2017, http://knews.kg/2017/03/pravitelstvo-vydelilo-40-mln-somov-na-identifikatsiyu-zhivotnyh/
The government of Kyrgyzstan has allocated KGS 40 million for completing the process of animal identification in the country, including some activities which are planned for the next three years. Currently, the process has been completed in the Talas region and Noocat district and is 55% complete country-wide. The second phase of animal identification will start in September 2017, and animal vaccinations have already begun. Data about animals is entered into an electronic database and has helped 24 local enterprises obtain certifications to export to both Kazakhstan and Russia.
3)
Technical mission regarding GPS+ made to Kyrgyzstan
March 23rd, 2017, http://www.timesca.com/index.php/news/17822-kyrgyz-honey-nuts-dried-fruits-and-beans-have-potentialfor-export-to-europe
The first technical mission regarding GSP+ was made to Kyrgyzstan in February 2017. The mission was aimed at assisting the Kyrgyz Republic in increasing its export flows to the European Union (EU) and enhancing the country’s regional economic competitiveness. A comprehensive assessment of the situation has been developed and presented to both the government of the Kyrgyz Republic and a delegation of the European Union. The mission’s main findings included: the products with potential for export to the EU is limited to vegetables and honey; only one laboratory in Bishkek is nearly equipped and accredited according to international ISO 17025 standards for food products; and food laboratories have little or no knowledge of EU food safety standards, procedures and methodologies. The mission recommended that the number of laboratories in charge for food product testing be limited to two units (one in Bishkek and one in Osh) and be placed under a single authority. The renovation of the laboratories should also focus on products with potential for export to Europe such as honey, nuts, dried fruits, and beans. Other potential products for exports include aromatic herbs (food, medicine and cosmetics), fish and biological products. Page 2
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The European Union granted GSP+ status to Kyrgyzstan in January 2016. The GSP+ is a component of the EU’s Generalized Scheme of Preferences (GSP) for developing countries. It offers additional trade incentives to countries that already benefit from GSP and that ratify and implement core international conventions on human and labor rights, sustainable development and good governance. GSP+ enhanced preferences mean a full removal of tariffs on more than 6,000 product categories.
4)
Nearly KGS 280 million in preferential loans in 2017
March 17th, 2017, http://www.minfin.kg/ru/novosti/novosti/s-nachala-goda-661-selskim-tovaroproizvoditelyam-v.html
According to the Ministry of Finance, 661 Kyrgyz farmers have received preferential loans totaling KGS 278.6 million since the beginning of 2017. The preferential loan program is part of the government’s agricultural financing program.
5)
Agricultural machinery to become cheaper
March 10th, 2017, http://kabar.kg/news/sel-khoztekhnika-v-eaes-stanet-deshevle-za-schet-sozdaniiaimportozameshchaiushchikh-proizvodstv/
Agricultural machinery in Eurasian Economic Union (EEU) countries is set to become cheaper as the production of agricultural machinery components within the Union rises. In the long term, this will positively affect the development of agriculture in general and will promote an increased technical level within the Union as well as stimulate the learning and use of new technologies. For the development of the industry, investments will be made and joint programs and projects will be launched aimed at assisting the organization of agricultural machinery production. Agricultural machinery imports grew by 18% in 2016, although, for the first time, Russian production began to prevail in EEU agricultural machinery markets, constituting 54% of the total amount in EEU markets in 2016.
6)
Kyrgyz-Kazakh border issues could affect GDP growth
March 10th, 2017, http://www.vb.kg/doc/356637_minfin_schitaet_chto_na_rost_vvp_povliiaet_veterinarnyy_barer_s_kazahstanom.html
Kyrgyz Finance Minister Arzybek Kozhoshev has stated that the veterinary boarder issues with neighboring Kazakhstan could negatively affect GDP growth. Agriculture is extremely important for Kyrgyzstan’s economic development, and delay in opening the veterinary control and the establishment of additional barriers along the Kyrgyz-Kazakh border could lead to reduced exports for agricultural goods. Removal of veterinary controls along the Kyrgyz-Kazakh border would likely increase the number of livestock and increase farmer incomes. If removed, the Ministry of Finance has calculated the growth rate in agriculture this year would be 2.5% and would rise to 3% between 2018 and 2020.
7)
Potential problems for successful spring field works
March 1st, 2017, http://knews.kg/2017/03/gotovy-li-kyrgyzstantsy-k-polevym-rabotam-vesnoj/
The Ministry of Agriculture announced that Kyrgyzstan is ready to commence its spring field works despite Ministry data showing that potential problems could arise from a lack of seed stocks, broken equipment and other industry issues. In particular, agricultural machinery needed for the spring field Page 3
BFC Agriculture Bulletin
work is estimated at a level of 71%.The real problem with agricultural machinery, however, is a lack of oil, which is estimated at only 50% of needs. There is also a shortage of fertilizers in the country, with only 17.5% of the estimated 35 thousand tons needed in the country. Finally, seed stocks in Kyrgyzstan are also lacking. These protect crops from head infections, root rot, fungi, bacteria and pests that live in the soil. The Ministry is currently working to conclude agreements with oil companies and make arrangements with neighboring countries for the supply of fertilizers to resolve the problems.
Foreign Aid 8)
President signs law ratifying loan agreement with IDB
March 18th, 2017, http://kabar.kg/news/podpisan-zakon-o-ratifikatcii-kreditnogo-soglasheniia-s-ibr-o-finansirovanii-proektarazvitiia-irrigatcionnoi-sistemy-sarymsak/
President Almazbek Atambayev signed the law ratifying a loan agreement between the Kyrgyz Republic and the Islamic Development Bank (IDB). Parliament ratified the agreement in February 2017. The loan is to finance the ‘Sarymsak Irrigation Scheme Development Project’. The project aims to develop irrigation infrastructure in order to better support farmers in addressing food security and economic development issues in rural regions. The project will develop about 2,000 hectares of irrigated lands and improve water supply on about 1,600 hectares of irrigated land in the Kara-Buura district of the Tala region. Project implementation is scheduled to last until the year 2020.
9)
Russian-Kyrgyz Development Fund spent USD 202 million
March 16th, 2017, http://novosti.kg/2017/03/svyshe-670-proektov-profinansiroval-rkfr/
The Russian-Kyrgyz Development Fund has extended a total of USD 202 million, helping to finance over 670 projects. More than 50% of the financing has been provided for the development of the agroindustrial complex.
Private Sector 10) Kyrgyzstan adds fruit storage capacity March 30th, 2017, https://ru.sputnik.kg/economy/20170330/1032644074/fruktohranilishche-otkrylos-v-balykchi.html
A four and half million-dollar fruit storage logistics center has opened in Balykchi, Kyrgyzstan. Loans were used to fund the construction of the premises and to purchase industrial-level refrigeration equipment – giving a fruit storage capacity of 2,400 tons. This investment enables new opportunities for import substitution of foreign products.
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11) 47 Kyrgyz enterprises can export to the EEU March 28th, 2017, http://24.kg/english/48126_47_Kyrgyz_food_industry_enterprises_can_sell_their_products_in_EEU/
Kalysbek Zhumakanov, director of the State Inspectorate for Veterinary and Phytosanitary Safety of the Eurasian Economic Union (EEU), announced that 47 Kyrgyz enterprises will now be able to freely export their products throughout the EEU due to a favorable epizootic situation and enterprises meeting EEU standards. Prior to the announcement, there were only 18 Kyrgyz enterprises listed in the unified registry of the EEU which allows for exports throughout the Union. Kazakhstan will also allow Kyrgyz products from 10 new enterprises while Russia will allow products from 5 new ones. In addition, six new Kyrgyz enterprises have received permission to export into the southern regions of Kazakhstan, bringing the total to 14. Kyrgyzstan is also preparing for the arrival of the veterinary service of the People’s Republic of China in order to establish protocols for exporting cattle, sheep, poultry and dairy and meat products from Kyrgyzstan to China.
12) Issyk-Kul Agro 2017 forum to be held in Karakol March 13th, 2017, http://www.agroprod.kg/index.php?newsID=298
Aiyl Bank OJSC is organizing the Issyk-Kul Agro 2017 forum in Karakol in April 2017. The purpose of the forum is to contribute to the implementation of the National Strategy of Sustainable Development 2013-2017, part of which is related to technical upgrades for the agricultural sector. The forum also hopes to make entrepreneurs and farm managers aware of available products and bank services. Representatives from 13 companies involved in the production and supply of agricultural machinery, processing equipment, greenhouses and seedlings have been invited to participate, although the forum is open for anyone to participate.
13) Milk production up in 2016 March 7th, 2017, http://kyrtag.kg/economy/proizvodstvo-moloka-v-kyrgyzstane-vyroslo-na-28-po-sravneniyu-s-periodom-90kh-godov-natsstatkom
Kyrgyz milk production in 2016 amounted to 1.53 million tons, an increase of 2.9%, or 44,000 tons, over 2015 and an increase of 28.7%, or 340,000 tons, over milk production in 1990. The main producers of milk are peasant and private farmers who have achieved growth in milk production largely by increasing the total number of dairy cows in the country.
14) Kyrgyz farmers to present products in Moscow fairs March 4th, 2017, http://24.kg/english/46535_Farmers_from_Kyrgyzstan_to_present_products_at_trade_fairs_in_Moscow_/
Kyrgyz farmers will be presenting their products at trade fairs in Moscow starting in April 2017. 102 sites will be opened across the Russian capital, and city residents will be able to purchase agricultural products there. Products will also be presented form Armenia, Belarus, Kyrgyzstan and Kazakhstan. Applications are being accepted from individual entrepreneurs, farmers and companies for spaces at the site. The spaces will be given free of charge to participants.
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Prepared by Business & Finance Consulting (BFC) www.bfconsulting.com Articles are taken directly from local sources without any fact-checking; they are provided as a convenience and for informational purposes only. Business & Finance Consulting (BFC)’s editing is limited to providing a short summary in English of the texts, highlighting the main points of the original articles. All rights reserved by the authors. BFC takes no responsibility and does not make any representation or warranty, express or implied, or assume any responsibility whatsoever for the content, accuracy, and reliability, or completeness of any of the articles.