05/2017
#
39 K y r gy zsta n Agriculture Bulletin KGS 2 billion in preferential loans in 2017
Agricultural research center to be established RKDF financed 712 projects with USD 226 million Agricultural exports increase 129%
All materials are published “as is� and are the property of their respective owners.
Contents State Initiatives ........................................................................................................... 2 1) 2) 3) 4) 5)
KGS 2 billion in preferential loans in 2017 ...................................................................................... 2 Four irrigation facilities to begin operation in 2017 ........................................................................ 2 Guarantee Fund issues KGS 51 million in guarantees ..................................................................... 2 KGS 1 billion for agricultural leasing program ................................................................................. 2 Agricultural research center to be established ............................................................................... 2
Foreign Aid ................................................................................................................. 3 6) 7) 8) 9) 10)
USD 94 million for clean water program ......................................................................................... 3 One Village One Product project to launch in Jalal-Abad................................................................ 3 IDA to finance dairy development project in Issyk-Kul ................................................................... 3 RKDF financed 712 projects with USD 226 million .......................................................................... 3 235 preferential loans for women entrepreneurs .......................................................................... 4
Private Sector.............................................................................................................. 4 11) 12) 13) 14)
Agricultural exports increase 129% ................................................................................................. 4 Sowing area in Kyrgyzstan increases 11,000 hectares .................................................................... 4 Kyrgyz farmers exceed 2017 sugar beet sowing limit ..................................................................... 4 Flood-affected farmers will need government help........................................................................ 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)
KGS 2 billion in preferential loans in 2017
May 26th, 2017, http://novosti.kg/2017/05/okolo-6-5-tysyach-kreditov-bylo-vydano-fermeram-s-nachala-goda/
Kyrgyz farmers and processors received approximately 6,500 preferential loans amounting to KGS 2 billion since the beginning of 2017. The preferential loan program is part of the government’s agricultural financing efforts.
2)
Four irrigation facilities to begin operation in 2017
May 24th, 2017, http://vesti.kg/index.php?option=com_k2&view=item&id=46211
The director of the Water Resources and Melioration Department, Kokumbek Tashtanaliev, has announced that four irrigation facilities will be put into operation in Kyrgyzstan in 2017. According to Tashtanaliev, this will introduce 1,090 hectares of newly irrigated land as well as improve the water supply on an additional 1,960 hectares. In total, it is estimated that the four irrigation facilitates will help create approximately 4,200 new jobs.
3)
Guarantee Fund issues KGS 51 million in guarantees
May 19th, 2017, http://kabar.kg/news/malik-abakirov-s-nachala-deiatel-nosti-garantiinogo
Since the end of 2016, the Guarantee Fund has issued 49 new guarantees amounting to KGS 51 million. Of those guarantees, 22 were allocated for rural entrepreneurs, amounting to KGS 9.6 million. The Guarantee Fund was established in 2016 as a governmental anti-crisis measure to ensure access to finance for small- and medium-sized enterprises. The priority directions of the Guarantee Fund include agricultural production and processing and the manufacturing, construction and service sectors.
4)
KGS 1 billion for agricultural leasing program
May 17th, 2017, http://knews.kg/2017/05/premer-na-razvitie-lizingovoj-programmy-predusmotreno-svyshe-1-mlrd-somov/
Prime Minister Sooronbai Jeenbekov announced that the Kyrgyz government will allocate more than KGS 1 billion for a program to develop the leasing of agricultural machinery in the country. The program, aimed at expanding the network of machine and tractor stations, is part a government effort to re-equip Kyrgyzstan’s agricultural sector with modern equipment. Over the past five years, the government has issued KGS 2.2 billion for the purchase of 2,000 agricultural machinery units.
5)
Agricultural research center to be established
May 17th, 2017, https://24.kg/english/51993_International_center_for_innovations_in_agriculture_to_appear_in_Bishkek/
The National Academy of Sciences of the Kyrgyz Republic and various South Korean institutions have signed a memorandum regarding the establishment of a research center for introducing innovations in crop production and cattle breeding. The international center which will be established as a result of the memorandum will be opened in Bishkek. Additionally, a genetic research project is being developed for adapting Korean chickens and local breeds. Page 2
BFC Agriculture Bulletin
Foreign Aid 6)
USD 94 million for clean water program
May 25th, 2017, http://novosti.kg/2017/05/donory-obespechat-sela-kyrgyzstana-chistoj-pitevoj-vodoj/
The director of the Department of Drinking Water Supply and Water Disposal, Askarbek Toktoshev, announced that all Kyrgyz villages will be provided with clean drinking water by 2026 as part of the AlaToo Bulagy program. This year, the program will provide clean drinking water to three villages, and, by 2020, it is planned that 117 villages in the Osh, Issyk-Kul and Batken regions will be provided with clean water. According to Toktoshev, the program is scheduled to operate until 2026 and will help 650 villages which have problems with accessing clean water. It is being financed with USD 94 million from the Islamic Development Bank and the World Bank.
7)
One Village One Product project to launch in Jalal-Abad
May 17th, 2017, https://24.kg/obschestvo/51967_proekt_odno_selo_odin_produkt_vnedryat_vdjalal-abadskoy_oblasti/
Following a meeting between the Japanese organization JICA and leadership from the Jalal-Abad region, it was announced that the One Village One Product project would be implemented in the region. At the meeting, the two sides discussed the establishment of groups which will grow environmentally friendly products for export, especially environmentally friendly cotton and silk. JICA will study production possibilities of the villages in Jalal-Abad within a year and a half, after which it will begin supporting agricultural producers. The Japanese One Village One Product project has already been implemented in the Issyk-Kul region and has led to, within four years, the creation of 178 groups (2,000 people) in 47 villages which now export 800 different types of products for KGS 54 million annually.
8)
IDA to finance dairy development project in Issyk-Kul
May 15th, 2017, http://novosti.kg/2017/05/mar-vydelit-sredstva-na-razvitie-molochnogo-sektora-v-issyk-kulskoj-oblasti/
Deputy Agriculture Minister Erkinbek Choduyev announced that the International Development Association will allocate USD 5 million for the financing of a dairy sector development project in the Issyk-Kul region. More specifically, the funds will be used for increasing the milk yield in the region. It is expected that the project will also eventually be implemented in other regions in Kyrgyzstan.
9)
RKDF financed 712 projects with USD 226 million
May 6th, 2017, https://ru.sputnik.kg/Kyrgyzstan/20170506/1033233791/rkfr-vydal-kreditov-na-226-mln.html
The Russian-Kyrgyz Development Fund (RKDF) has extended a total of USD 226 million in financing, helping finance 712 projects. 28% of the financing has been provided for the development of the agroindustrial complex.
Page 3
BFC Agriculture Bulletin
10) 235 preferential loans for women entrepreneurs May 4th, 2017, http://www.vb.kg/doc/359364_selskie_jenshiny_predprinimateli_polychili_235_kreditov_dlia_razvitiia_biznesa.html
Women entrepreneurs in Kyrgyzstan have received 235 loans in total within the framework of a project aimed at developing women entrepreneurship. The project, being financed by the Japan Fund for Poverty Reduction (JFPR) through the permanent mission of the Asian Development Bank (ADB) in Kyrgyzstan, has also provided training to 315 rural women entrepreneurs aged 28 to 65 as well as employees of financial institutions and other project stakeholders. The project began in 2013.
Private Sector 11) Agricultural exports increase 129% May 30th, 2017, http://vesti.kg/index.php?option=com_k2&view=item&id=46320
According to Deputy Agriculture Minister Erkinbek Choduyev, exports of agricultural products have increased 129% year-on-year. This includes increases in the export of both livestock products and processed food products. The Deputy Minister noted that positive relations with China have helped in this regard, with the two countries already having agreed on the export of cherries and melons and working on arrangement which would see meat and beans exported from Kyrgyzstan to China as well.
12) Sowing area in Kyrgyzstan increases 11,000 hectares May 24th, 2017, http://novosti.kg/2017/05/ploshhad-posevov-v-etom-godu-uvelichili-pochti-na-11-tysyach-gektarov/
The sowing area in Kyrgyzstan in 2017 has increased by almost 11,000 hectares. Moreover, the channels for the watering of fields are ready, and water will be provided in a timely manner. Heavy rains earlier this year caused a small delay in farmers beginning their works for this agricultural season; however, seeds have been planted in time, and there are no expected damages this year due to frosts.
13) Kyrgyz farmers exceed 2017 sugar beet sowing limit May 23rd, 2017, http://www.vb.kg/doc/360304_saharnikov_jdet_tiajelyy_sezon._oni_prevysili_limit_poseva_saharnoy_svekly.html
Agriculture Minister Nurbek Murashev has announced that Kyrgyz farmers have exceeded the sugar beet sowing limit this year. The Ministry of Agriculture set a sugar beet limit of 16,000 hectares for this year; however, farmers have independently purchased more seeds and sown greater areas. As a result, this year’s harvest may exceed expected volumes. The Prime Minister has instructed the Minister of Agriculture to take all necessary measures to ensure that farmers will be able to sell their sugar beet harvests profitably.
Page 4
BFC Agriculture Bulletin
14) Flood-affected farmers will need government help May 16th, 2017, http://vesti.kg/index.php?option=com_k2&view=item&id=46055:skazhutsya-li-nyineshnie-razlivyi-rek-nastoimosti-ovoschey-i-fruktov?&Itemid=79
Agricultural expert Ulan Adamaliev is urging the government of Kyrgyzstan to help farmers who could lose their harvests due to flooding rivers. According to Adamaliev, most farmers take loans for sowing, meaning that a lost harvest could have serious consequences for the farmers. It should be noted that the flooding is not expected to affect the value of crops since the flooding will affect only a very small part of the approximately 900,000 hectares of cultivated, plowed fields.
Page 5
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.