Creating а favorable agri-business environment and added value chains

ТРАНСФОРМАЦИЯ 2030 > Creating а favorable agri-business environment and added value chains
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PRIORIТY 2

Creating а favorable agri-business environment and added value chains
STRATEGIC CHALLENGES:

An important factor in ensuring agricultural competitiveness is the development of more integrated and efficient value chains. The current high costs for collection, transportation, storing, processing, packaging and certification of products from the field to final consumers significantly reduces the competitiveness and profitabllity of Uzbek agri-food producers and processes.

The low level of development of the food industry limits the capabllities for increasing the volume of production of high value-added products. ln order to attract investment in agri-food market infrastructure there is а need to develop new financial instruments, improve the business climate and  design targeted measures aimed at expanding the agri-food processing sector and promoting the development of more integrated and accessible value chains.

ln recent years, some small-scale producers have actively invested in modern storage facilities and processing equipment, supported bу various sources of financing, including subsidized credit lines from international financial institutions. Despite such investments, most small-scale producers remain largely isolated from processing enterprises and exporting organizations. This is in part due to the lack of effective mechanisms available to encourage small-scale producers to form farmer groups, thereby limiting economies of scale and inhiblting opportunities for their integration into value chains.

There is also а shortage of laboratories, wholesale markets and logistics centers that meet the requirements of international standards and quality requirements, as well as equipment at customs and border points for phytosanitary control of horticulture products. This, in turn, prevents the  increase in the volume of manufactured and sold products, the growth of value added and diversification of product types and export geography.

lt is also necessary to ensure the safety and quality of agricultural and food products bу bringing the national legal framework for sanitary and phytosanitary controls in line with the requirements of the World Trade Organization and the standards of target international markets. ln addition, partnerships between traders, processors and exporters with dekhkan farms and owners of household plots, which account for more than 70% of gross agricultural output, need to be further developed.

STRATEGIC OBJECTIVES:

The main objective of this strategic priority is to increase the export potential of the agri-food sector, increase the volume of value-added products, expand the introduction of certification systems, based оп international standards, and the development of cooperation mechanisms to promote farmer groups.

KEY STRATEGIC ACTIONS,

that are planned to contribute to the achievement of these goals include:

Harmonization of the national plant quarantine and protection system with the requirements of the WТО Agreement on the application of Sanitary and Phytosanitary (SPS) measures;

Bringing the national system for protecting animal health and controlling livestock production in line with the standards of the World Organization for Animal Health (OIE);

Establishment of an lnnovation Education Center to support the development of value chains in agriculture, based оп international best practices;

Development of mechanisms to facilitate the implementation of internationally recognized quality standards (Global G.A.P, Organic, НАССР, etc.);

Development and implementation of feedback mechanisms with leading agricultural enterprises;

Prioritization of negotiations & implementation of trade agreements in new target export markets;

Reduction of costs for transportation and marketing of agri-food products in local and target international markets;

Assessment of opportunities for expanding the use of the «Made in Uzbekistan)) brand to promote domestic food products in target export markets;

Development of а plan to improve the national quality system;

Development of advisory services aimed at providing information оп export markets, export readiness, trade regime and trade finance;

Increasing the role of diplomatic missions of the Republic of Uzbekistan in the process of collecting information about target markets and in promoting trade of agri-food products;

Improving the system for protecting the rights of authors of plant varieties (including patent tests);

lntroduction of а unified trading system based оn agro-logistics centers (based оn auction and exchange trading);

lmprovement of services provided by the Crop Variety Testing Center Creation of the National Gene Bank for the storage of new plant species;

Improving the types of services provided bу the center for agricultural standardization;

Widespread introduction of market mechanisms in the production of raw cotton and the cotton and textile sector;

Adherence to the International Plant Protection Convention (IPPC);

Development of а mechanism for allocating land оn preferential terms to dekhkan farms in order to stimulate the expansion of activities;

Creation of а special laboratory for testing genetically modified plant varieties with the attraction of funds from international financial institutions;

Further stimulation of attracting investments in trade infrastructure and agri-logistics centers, food safety laboratories and sanitary and phytosanitary systems, necessary equipment and inventory;

Improving the registration system of pesticides and the maximum permissible levels of pesticides (MRL) in accordance with the International Plant Protection Convention and other relevant international standards, providing information to exporters and manufacturers;

Attraction of grants and technical assistance funds from international financial institutions for the modernization of the material and technical base of research institutes in the field of seed production and horticulture;

Stimulation of cooperation between agricultural producers and development of measures for their integration into modern value chains in the domestic and international markets

Formation of associations (cooperatives and others) coordinating the manufacture of agricultural products and services provided in this area, making operational decisions and participating in а dialogue оп the formation of industry policy;

Ensuring cooperation between agricultural associations, farms and dehkan farms with industrial processing enterprises (including clusters);

Implementation of pilot investment programs to support the development and diversification of small business in the agricultural sector;

Development of аn export growth strategy based оn the results of assessments of the horticulture and livestock sectors (initially for the main 10-15 types of exported products based оn аn analysis of long-term data and market trends);

Formation of associations (cooperatives and others) coordinating the manufacture of agricultural products and services provided in this area, making operational decisions and participating in а dialogue оп the formation of industry policy;

Modernization of the food safety and quality control system.

KEYPERFORMANCE INDICATORS AND TARGEТS
Share of exports under productive partnerships between agribusinesses & farm groups
Improving the position of Uzbekistan in the World Bank ranking оn the Global Logistics Performance Index
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The share of employment in the food and light industry (% of total agri-food employment)
Increase in share of processed products in total agri-food exports
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Introduction and promotion of the brand of agricultural products of Uzbekistan
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ROADMAP FOR IMPLEMENTATION

Short term actions

1

March 1, 2020

The Ministry of Agriculture, Ministry of Economy and lndustry, Uzbektekstilprom Association, Uzpekhtasanoat JSC

Evaluation of the performance of cotton and textile clusters in order to identify measures for securing efficient use of agriculture lands, sophistication of the relations between clusters and farmers оn the basis of introduction of transparent market mechanisms aimed at increasing incomes of farmer’ s entities.

2

March 1, 2020 and then permanently

The Ministry of Agriculture, Ministry of Investments and Foreign Trade, O’zstandart Аgеnсу

То develop clear mechanisms for helping introduction of quality standards recognized in the international markets (Global G.A.P, Organic, HACCP etc.).

3

March 1, 2020 and then permanently

The Ministry of Investments and Foreign Trade, Ministry of Agriculture

Development of consultation services aimed at providing information оn export markets, preparation to export, trade regulations and financing of trade.

4

Мау ЗО, 2020

The State Committee for Veterinary and Developing of Lifestock Farming, Ministry of Agriculture, Ministry of Health, O’zstandart Agency

То bring the National System for Animal Health Protection and Surveillance of Life Stock Products into compliance with the Standards of the International Epizootic Bureau (IEB).

5

July 1, 2020 and then permanently

Ministry of Investments and Foreign Trade, Ministry of Agriculture, «Uzbekoziqovqat» Holding

Development and introduction of efficient mechanisms of interaction with leading agriculture enterprises. Thereat, the following is envisaged:
– identification of priorities for holding negotiations and implementation of trade agreements at the new target export markets;
– reduction of the transportation and marketing cost of agriculture industrial goods at the domestic and target international markets;
– evaluation of opportunities for extensive use of “Made in Uzbekistan” brand for export of the local food products to the target export markets;
– developing of detailed plan for sophistication of the national system of quality.

6

July 1, 2020

The Ministry of Agriculture

Sophistication of the services provided bу the Centre for standardization of agriculture

7

July 1 , 2020

The Cabinet of Minister, State Inspection of Plants Quarantine, Ministry of Agriculture, Ministry of Investments and Foreign Trade

Taking measures of harmonization of the national system for plant quarantine and protection with the requirements of the WTO Agreement оп the Application of Sanitary and Phytosanitary Measures

8

March 1, 2020

The Ministry of Agriculture

То sophisticate the services provided bу the Centre for testing agricultural crops, to establish the National Bank of Genes for storing new species of crops.

9

September 1, 2020

The Ministry of Agriculture, Ministry of Innovative Development, stakeholder ministries and agencies

Establishment of Innovative Educational Centre for support of the value added chain development in the agriculture оn the basis оn international best practices.

10

November 1, 2020

Тhе Ministry of Agriculture, Ministry of Health, Ministry of Economy and Industry, O’zstandart Аgеnсу, State Committee for Veterinary and Developing of Lifestock Farming, State Inspection for Plants Quarantine

Upgrading of the system of food safety and quality control.

11

November 1, 2020

Тhе Ministry of Agriculture, Ministry of Justice

Sophistication the system of protection the сору rights of authors of new crops species (including patenttesting).

Medium and long term actions

12

Permanently

Ministry of Agriculture, Uzstandard Agency

Evaluation of the performance of cotton and textile clusters in order to identify measures for securing efficient use of agriculture lands, sophistication of the relations between clusters and farmers оn the basis of introduction of transparent market mechanisms aimed at increasing incomes of farmer’ s entities.

13

Permanently

Ministry of Agriculture, Interested ministries and departments

Organization of short-term trainings, including remote ones, for gardening and greenhouse specialists, development and delivery of training materials to places.

14

Permanently

Ministry of Investment and Foreign Trade, Ministry of Agriculture, “Uzbekozikovkatholding” holding company

Development and implementation of effective mechanisms for interaction with leading agricultural enterprises. Herewith:
– Identify priority areas for negotiation and implementation of trade agreements in new target export markets;
– Reduce costs for transportation and marketing of agri-food products in international markets;
– Assess the potentials of widespread use of the “Made in Uzbekistan” brand to promote domestic food products to target export markets;
– Development of а detailed plan to improve the national quality assurance system.

15

Permanently

Ministry of Agriculture, Ministry of Health, Ministry of Economy & Industry, Uzstandard Agency, State Committee for Veterinary & Livestock, State Inspection for Plant Quarantine

Development of advisory services оn providing information оn export markets, export readiness, trade regimes and trade financing.

17

Q 1 2021

Ministry of Agriculture, Ministry of Health, Ministry of Economy & lndustry, Uzstandard Agency, State Committee for Veterinary & Livestock, State Inspection for Plant Quarantine

Restructuring and modernization of the quality control and food safety system based оn the analysis of existing infrastructure.

16

Q 4 2021

Ministry of Agriculture, Ministry of Investment and Foreign Trade, State Committee for Veterinary and Livestock Development

Development of а strategy to increase export of agricultural products based оn the assessment of the main sectors of fruit and vegetable and livestock products (based оn long-term data and analysis of market trends for 10-15 main exported products), including organic products with high export potential.

18

Q З 2021

Ministry of Economy & Industry, Ministry of Agriculture, Ministry of Finance, Ministry of Health, State Committee for Veterinary & Livestock Development

Development of targeted support measures for the development of business entities involved in the storage and processing of agricultural products in rural areas, modernization of local markets.

19

Q 2 2021

Ministry of Economy and Industry, Ministry of Agriculture, Ministry of Тransport

Development of value chains based оп а detailed assessment of factors constraining the development, taking into account the characteristics of regions and places of direct concentration of trade.

20

Q 4 2021

Ministry of Agriculture, Ministry of Economy and Industry, Uztekstilprpom association, JSC Uzpakhtasanoat

Conducting а detailed assessment of cotton-textile clusters activity in order to identify measures for the development and promotion of clusters in all sectors.

21

Q 2 2021

Ministry of Agriculture, Ministry of Development of Information Technologies & Communications, Ministry of Investment & Foreign Trade, Ministry of Economy & Industry

Implementation of modern information technologies for monitoring the agri-food market, focused оn key export markets and priority products. At the same time, regularly puЫish information оп prices for goods in order to help manufacturers and processors in decision making.

22

Q 1 2021

Ministry of Agriculture, Ministry of Economy and Industry, Council of farmers, dekhkan farms and homeowners

Implementation of pilot investment programs to support the development and diversification of small businesses, providing grants and subsidized loans to support start-up initiatives and cooperation of producers in rural areas and aimed at creating value chains.

23

Q 1 2021

«Goskomzemgeodezkadastr, Ministry of Agriculture

lntroducing amendments to the Land Code of the Republic of Uzbekistan providinglease and sublease possibllities.

24

Q 4 2021

Ministry of Agriculture, Ministry of Investment and Foreign Trade

Creation of а special laboratory for testing genetically modified crops and plant varieties with the involvement of international financial institutions’ funds.

25

Q 1 2021

Ministry of Agriculture, Ministry of Investment and Foreign Trade

Promotion of а unified trading system (based оп auction and exchange trade) оп the basis of agri-logistics centers’ network.

26

Q 4 2021

Ministry of Agriculture

Modernization of the material and technical base, improvement of the activities of research institutes in the field of seed production and horticulture.

27

July 1 , 2020

Ministry of Economy and Industry, Ministry of Agriculture, Ministry of Investment & Foreign Trade, Ministry of Health, State Committee оn Veterinary & Livestock Development, State Inspection for Plant Quarantine

Further stimulation of attracting investments in trade infrastructure, agri-logistics centers, food safety laboratories, sanitary and phytosanitary systems, as well as the necessary equipment in order to reduce costs and overcome technical barriers, uninterrupted supply of domestic agricultural products.