10/2017
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44 K y r gy zsta n Agriculture Bulletin Cattle identification project on schedule UNIDO planning USD 8 million in projects in Kyrgyzstan WFP helps develop food security warning system More than 30,000 tons of Talas beans exported in 2017
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Contents State Initiatives ........................................................................................................... 2 1) 2) 3) 4) 5)
Cattle identification project on schedule ........................................................................................ 2 Roundtable on microfinance held in Bishkek .................................................................................. 2 Kyrgyz exporters to benefit from preferential loans ....................................................................... 2 KGS 5.1 billion in concessional loans for farmers ............................................................................ 3 Republican Agricultural Information System introduced ................................................................ 3
Foreign Aid ................................................................................................................. 3 6) 7) 8)
UNIDO planning USD 8 million in projects in Kyrgyzstan ................................................................ 3 WFP helps develop food security warning system .......................................................................... 3 USAID helps rural women establish greenhouses ........................................................................... 4
Private Sector.............................................................................................................. 4 9) 10) 11) 12)
More than 30,000 tons of Talas beans exported in 2017 ............................................................... 4 Kyrgyz dairy enterprises not banned from Kazakhstan ................................................................... 4 Kyrgyzstan’s sugar industry revival ................................................................................................. 5 Drip irrigation becoming more popular........................................................................................... 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)
Cattle identification project on schedule
October 30th, 2017, http://www.vb.kg/doc/368847_vice_premer:_v_kyrgyzstane_100_korov_proshli_identifikaciu.html
Speaking at a meeting of the Committee on Agrarian Policy, Water Resources, Ecology and Regional Development, Deputy Prime Minister Dair Kenekeev announced that 100% of cows in Kyrgyzstan have been identified. The Deputy Prime Minister added that the identification of all bulls is scheduled to be completed by the end of the year and that the identification of horses in the country will begin shortly after that.
2)
Roundtable on microfinance held in Bishkek
October 30th, 2017, https://www.timesca.com/index.php/news/18855-microfinance-in-kyrgyzstan
Representatives of the National Bank of the Kyrgyz Republic (NBKR), the Economy Ministry, the Union of Banks of Kyrgyzstan, microfinance organizations, credit unions and independent experts attended a roundtable to discuss the ‘Main Directions of the Microfinance Sector Development in Kyrgyzstan for 2018-2021’. The strategic document aims to stimulate the development of microfinance as an important tool for financing small business, increasing employment and eliminating poverty. Among the issues identified as needing to be resolved were: a lack of long-term financing for microfinance institutions (MFIs), legislative restrictions on MFIs being able to accept deposits, a lack of transparency, a lack of knowledge and skills within MFIs, over-indebtedness of borrowers, dissatisfaction with loan terms and conditions available from MFIs and a lack of financial literacy on the part of MFI clients. Kyrgyzstan became the first country in Central Asia to have adopted the “On Credit Unions” and “On the Microfinance Organizations” laws as well as a national microfinance strategy. The main goal of the strategy is poverty reduction through the expansion of access to financial services in remote regions of the country. Currently, there are around one hundred microcredit companies and more than fifty microcredit agencies in the country.
3)
Kyrgyz exporters to benefit from preferential loans
October 12th, 2017, http://knews.kg/2017/10/v-kyrgyzstane-mestnym-eksporteram-budut-vydavat-lgotnye-kredity/
In September 2017, the Kyrgyz government launched the ‘Financing of Export-Oriented and ImportSubstituting Enterprises-1’ project which grants preferential loans to exporters and import-substituting enterprises. Through the project, the government hopes to increase the competitiveness of enterprises, create new jobs, increase export volumes, increase tax revenues and attract new technologies. The project will allow farmers and producers to avoid currency risks and reduce costs, which will also reduce the cost of goods. Credits to farmers and exporters will be issued by 9 commercial banks. The amount of subsidies will be KGS 350 million, while the total amount of loans will be KGS 3.5 billion. Banks will issue loans at 21% per annum, 11% of which will be subsidized by the state. There is also a six-month grace period for the principal amount of the loans. To qualify for a loan, the applicant must have specialized certification and must not have overdue debts or a negative credit history. Applicants may also apply to the Guarantee Fund if they do not have sufficient collateral for the loans. The amount of each loan will not exceed KGS 50 million for enterprises with 20 or more employees or KGS 10 million for enterprises with less than 20 employees. Export-oriented enterprises will be given priority. Page 2
BFC Agriculture Bulletin
4)
KGS 5.1 billion in concessional loans for farmers
October 6th, 2017, http://knews.kg/2017/10/fermeram-kyrgyzstana-vydano-lgotnyh-kreditov-na-5-1-mlrd-somov/
12,000 rural producers have received a total of KGS 5.173 billion in concessional loans within the framework of the ‘Financing of Agriculture-5’ project. Most of this amount, KGS 3.3 billion, was allocated to cattle breeders, with processors receiving KGS 945 million in loans and plant growing receiving KGS 872 million. By region, the loans are distributed as follows: Chui — KGS 1.6 billion; Jalal-Abad — KGS 930 million; Osh — KGS 732 million; Issyk-Kul — KGS 591 million; Naryn — KGS 511 million; Talas — KGS 446 million; and Batken — KGS 281 million.
5)
Republican Agricultural Information System introduced
October 2nd, 2017, http://www.agroprod.kg/index.php?newsID=537
The new Republican Agricultural Information System has been introduced in Kyrgyzstan. The system will unite the 40 agricultural development agencies under the Ministry of Agriculture into a single computer network. This will enable agencies to send reports more easily to the Ministry’s Resource and Analytical Center, which will store and analyze the data. Such work had previously been completed manually. Implementation of the system will be completed gradually.
Foreign Aid 6)
UNIDO planning USD 8 million in projects in Kyrgyzstan
October 18th, 2017, http://www.tazabek.kg/news:1411088
USD 8 million in projects related to the spheres of tourism, agriculture and small-scale power engineering are being planned within the framework of the United Nations Industrial Development Organization (UNIDO). Kyrgyzstan joined UNIDO in 1993 and, since then, 11 projects for USD 1.5 million have been implemented in the country. In order to benefit from the planned assistance, however, Kyrgyzstan must first settle outstanding unpaid contributions to UNIDO. Kyrgyzstan owed EUR 385,087 (EUR 383,041 for 1993-1996 contributions and EUR 2,046 for 2017 contributions). A payment agreement has been reached between UNIDO and government representatives, and EUR 75,287.03 has already been paid. Deputies are currently discussing a bill to ratify the five-year repayment agreement for the remainder of the debt.
7)
WFP helps develop food security warning system
October 9th, 2017, http://www.un.org/russian/news/story.asp?newsID=28717#.WemjjsZLfIU
The World Food Program of United Nations (WFP) and the National Strategic Institute for Strategic Studies (NISS) have developed an innovative online platform which can forecast food security crises before they become critical. The platform was developed with funding from the people of Japan. The Safety Nets Alert Platform (SNAP) uses dynamic market price monitoring and analysis to detect fluctuations in food prices. The system then produces simulations showing the likely impact of external shocks on household food and nutrition security. SNAP presents results in an easy-to-understand way, enabling decision-makers to identify the social protection measures best-suited to helping vulnerable people in times of hardship.
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Integrated with the comprehensive database from the annual Kyrgyz Integrated Household Survey, SNAP provides robust food security analysis at a household level. The system also provides information on topics such as family income, food expenditure and kilocalorie and nutrient consumption. WFP and NISS have also helped set up a working group that includes the Ministries of Economy, of Labor and Social Development and of Emergency Situations as well as the National Statistic Committee of the Kyrgyz Republic to look at expanding the system.
8)
USAID helps rural women establish greenhouses
October 4th, 2017, https://www.usaid.gov/kyrgyz-republic/press-releases/oct-4-2017-women-farmers-boost-incomes-newgreenhouses
The United States Agency for International Development (USAID) assisted fifteen women farmers from mountainous areas of Osh and Naryn regions to launch greenhouse vegetable production as a way to promote women’s entrepreneurship in agriculture and to provide much needed additional income while also improving nutrition by making vegetables more easily available to community households during times when access to vegetables is scarce. The women plan to grow cucumbers and tomatoes to sell during the off-season in 1,800 square meters of greenhouses. This collaboration is expected to generate about KGS 1.7 million (USD 26,000) in additional income for the women and their families in annual sales. The greenhouses were launched under USAID’s ‘Agro Horizon’ project, which supports women entrepreneurs and dietary diversity for families. Each farmer contributed 30% of the total cost for each greenhouse, while USAID covered the remaining 70%. USAID will continue to arrange training and regular consultations to the recipients of the greenhouses.
Private Sector 9)
More than 30,000 tons of Talas beans exported in 2017
October 20th, 2017, https://24.kg/english/66297_More_than_30000_tons_of_Talas_beans_exported_in_2017/
Since the beginning of 2017, the Talas region has exported 30,110 tons of beans to Bulgaria, the Czech Republic, Kazakhstan, Russia, Turkey and other countries. The gross harvest is approximately 99,000 tons, and the average yield per hectare is 18.4 centners. In 2017, almost 55,000 hectares were sown with the bean in the Talas region, 2,000 hectares more than in 2016.
10) Kyrgyz dairy enterprises not banned from Kazakhstan October 18th, 2017, http://vesti.kg/index.php?option=com_k2&view=item&id=48368:mozhno-li-vvozit-nashe-moloko-vkazahstan?&Itemid=134
Rakhat Sadyrbekova, press secretary of the State Inspectorate for Veterinary and Phytosanitary Security, has announced that rumors regarding the ban of five Kyrgyz dairy enterprises from exporting their products to Kazakhstan are not true. She stated that the data supporting this claim in a recent report is two years old and is no longer the case. She further noted that no Kyrgyz dairy enterprise which has passed the verification of compliance with Eurasian Economic Union (EEU) standards has been excluded from the list of authorized firms which can export to Kazakhstan.
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11) Kyrgyzstan’s sugar industry revival October 17th, 2017, https://www.timesca.com/index.php/news/18791-kyrgyzstan-reviving-sugar-processing-industry
Kyrgyzstan has been working to revive its sugar industry as sugar production has fallen drastically since independence and the country currently only produces enough sugar to meet 50% of its domestic demand. In order to accomplish this, there was a need to launch another large processing plant which would guarantee the integrity of the production chain by ensuring a guaranteed sales outlet for farmers. As such, the recent launch of the Koshoi sugar processing plant in the Chui province is an important step as the plant can process up to 3,000 tons of sugar beet daily. With the launch of the Koshoi plant along with Kaindy-Kant sugar processing plant (also located in the Chui province), the government expects not only to completely meet local demand for granulated sugar but also export to neighboring countries. Last year, the Russian-Kyrgyz Development Fund (RKDF) allocated a USD 10 million loan to restore the Koshoi sugar plant and USD 5.5 million for Kaindy-kant. To optimize the work of reception points, new modern machines were bought and electronic truck scales installed. In September 2017, RKDF allocated an additional USD 1.5 million to the Kaindy-kant plant to purchase diffusion equipment that increases productivity from 3,000 tons to 3,500 tons of sugar per day. The implementation of these projects will reduce the import of sugar into Kyrgyzstan and, in the long term, will lead to an increase in the country's GDP by about 1%. The number of people employed in the processing and growing of sugar beet is also expected to increase by 35,000. Currently, more than 3,500 farms supply raw products to the modernized plants. In 2016, farmers harvested 710,500 tons of sugar beet on 12,000 hectares. In 2017, the sowing area was increased by an additional 4,000 hectares, and the beet harvest is expected at 850,000-900,000 tons.
12) Drip irrigation becoming more popular October 17th, 2017, http://www.tazabek.kg/news:1410960
Farmer interest in drip irrigation systems has increased dramatically since 2015, mainly because of climate change and decreased water resources. As of August 1, 2017, a total of 671 enterprises in Kyrgyzstan have installed drip irrigation systems over a total area of 1,950 hectares. Although the costs of drip irrigation systems are relatively high, farmers who have implemented such systems have recorded yield increases of 1.5-2 times. Drip irrigation is a progressive way of watering crops. With drip irrigation, irrigation water is supplied to the root zone of plants by means of polyethylene pipelines and droppers. Only the root layer of the soil is humidified, with minimal water losses for evaporation and filtration. Drip irrigation systems in Kyrgyzstan have been mostly installed in the Issyk-Kul, Batken and Chui regions, where there is a shortage of irrigation water.
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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.