February 28, 2009

 

Uzbekistan to develop domestic dairy and meat industries

Uzbekistan plans to invest US$100 million to develop its dairy and meat industries in 2009-2011.

 

The Central Asia country has adopted a programme on expanding food production and the active development of meat and dairy products.

 

Within the framework of the programme, Uzbekistan will open 410 new enterprises that use mini-technologies and compact equipment for processing meat and dairy products.

 

The government has adopted a program on expanding food production and saturating the domestic market that includes active development of meat and dairy products. Among them, 200 enterprises will process meat products at a total capacity of 85,000 tonnes per year and the remaining 210 will process dairy products at a total capacity of 200,000 litres per year.

 

A number of Uzbek companies are holding talks with foreign suppliers of high-tech mini equipment that will be installed in regions with surplus labour.

 

Purchase of the equipments will be supported by the budget and bank loans.

 

This year, banks will spend at least 20 percent of their loans on the purchase of food production equipments.

 

In early February, President Islam Karimov signed a decree granting privileges in taxing and custom duties to meat and dairy producers until January 1, 2012.

 

Technological equipment, spare parts, auxiliary materials, ingredients and components used in the manufacturing and processing of meat and milk which are not produced in the country, are exempt from custom duties.

 

The uniform tax payment for microfirms and small businesses specialising in meat and milk processing as the main activity, was lowered on 50 percent.

 

Uzbekistan's meat production grew 6.6 percent last year to 1.29 million tonnes, while milk production increased 6.5 percent to 5.42 million tonnes, according to official statistics.

 

However, the estimates noted that Uzbekistan produces only 60 percent of its meat, and 70 percent of its milk needs.

 

Poultry meat imports currently occupy 45 percent of the domestic market share, while other meats took 35 percent.