KAED Follow-On Press Release

Kyrgyzstan Agro-Input Enterprise Development Follow-On Project Continues Food Security Mission December 6, 2010 – Muscle Shoals, Ala. – The U.S. Agency for International Development (USAID) has awarded IFDC a two-year contract to implement the Kyrgyzstan Agro-Input Enterprise Development Follow-On project. The project is countering setbacks to previous ag ricultural intensification successes in the wake of Kyrgyz political and social disruptions in the spring of 2010.

Mirroring successful predecessor projects (2001-2010), IFDC is mobilizing and supporting private enterprise farming and commodity chains that offer the greatest potential to improve sustainable agricultural production. The project is also increasing employment opportunities, targeting the country’s southern regions.

The previous two-year Kyrgyzstan Agro-Input Enterprise Development II (KAED II) project is held as a benchmark for future success in the country.

“KAED II demonstrated that a private sector, market-based response to the 2008 food crisis could provide cost-effective support to farmers in need. Incentives and other scaling tools that became foundations for increased production and incomes made a big difference for Kyrgyz farmers and their nation,” stated John Allgood, director of IFDC’s EurAsia Division.

Under KAED II, USAID provided emergency relief by funding improved seed, livestock feed and fertilizer – distributed at a subsidized cost through the private sector. In 2009, these efforts, coupled with favorable weather conditions, contributed to record wheat harvests that met annual demand for the first time in years.

“The Follow-On project is assisting Kyrgyzstan to recover to 2009 output highs. We’re projecting one million metric tons (mt) of wheat to be produced in 2011,” said Hiqmet Dimiri, chief of party for the project.

To accomplish this goal, the project is working with 20,000 farmers as they plant improved wheat varieties and 80,000 other farmers as they adopt “best practices” in farming and animal care. This high level of farmer participation is the result of several initiatives, including a public outreach campaign.

The outreach effort has made USAID/KAED a widely recognized brand throughout the nation.

Other initiatives are improving farmer best practices through training and improved access to yieldenhancing production technologies and support services. Dimiri made special note of a market-friendly voucher system and revolving fund for fertilizer distribution. “We’re using these programs to target farmers who have the greatest potential to double national average wheat yields. This is an efficient way to reach our goals,” he added.

To satisfy export demands, a recent Global Development Alliance (GDA) between USAID and the Eurasia Group LLC Switzerland has been formed. The GDA is a result of efforts to attract international companies to the small Kyrgyz market. A prime example of public-private partnership stimulus, the alliance shows promise for growth in poultry production and protein-rich crops for feed. Already proven to be effective, the alliance has been slated for expansion. Additional GDAs are expected to facilitate technology introduction and business linkage development.

To stimulate local participation, IFDC and USAID have launched the Kyrgyzstan Local Economic Development Program (KLDP). The program supports rapid, diversified and sustained agro-economic growth at the local level. Focusing on advancements in business and investment environments, the goal is to increase municipal finance and capital investment. Improving the competitiveness of the agriculture and agro-processing sectors is also a key goal. The KLDP effort is upgrading workforce education, replicating best practices and implementing national economic and administrative reforms.

Together, the Follow-On project and KLDP seek to replicate the Markaz Joint Agricultural Initiative (MJAI). The MJAI transformed degraded land into productive farms and generated lasting employment opportunities for the Kyrgyz people. The new projects will be implemented from 2010-2012.

IFDC is a public international organization, governed by an international Board of Directors with representation from developed and developing countries. The nonprofit Center is supported by various bilateral and multilateral aid agencies, private foundations and national governments.

IFDC focuses on increasing and sustaining food security and agricultural productivity in developing countries through the development and transfer of effective and environmentally sound crop nutrient technology and agribusiness expertise. # # # IFDC Contacts: Scott Mall small@ifdc.org 256/335-7762 (cell) 256/381-6600, x234

Courtney Greene cgreene@ifdc.org 256/381-6600, x357

Lisa Thigpen lthigpen@ifdc.org 256/381-6600, x380