December 2, 2010

Kyrgyzstan's agriculture posts 23% gross domestic product growth

The share of Kyrgyzstan's agriculture in gross domestic product (GDP) has grown to a percentage amount of 22.6% today.

Agricultural industry is a good base for private sector development and the processing industry in Kyrgyzstan. Experts say that agricultural regions have a great potential to develop the processing sector. Today, prices for raw agricultural products and processed products differ greatly. Therefore, farmers and processors can increase their profits through the processing of raw products.

The Ministry of Economic Regulation of the Kyrgyz Republic with the assistance of the EU intends to develop a strategy to advance the processing sector. The main areas are fruit, vegetables, milk, meat, and flour production. The ministry intends to set up working groups to include representatives from the public sector and private entrepreneurs.

In order to develop the processing industry the country needs a proper regulatory framework. In addition officials will need to wisely conduct the agrarian policy in improving export capacity of the country. Farmers and processors are the first to suffer from mistakes made by the officials who are responsible for the development of agriculture.

Recently, the border village of Kordai (Zhambyl Oblast of Kazakhstan) hosted the Kyrgyz-Kazakh agribusiness forum with the purpose of developing agricultural trade between the two countries.

Kyrgyz producers and processors of agricultural products entered into 20 contracts with Kazakh companies to supply more than 120 tonnes of domestic agricultural products to the Kazakh market.

In addition, an agreement was concluded between the Zhambyl Commodity Exchange JSC and the Kyrgyz Resources state enterprise on a supply of potatoes to Kazakhstan in the amount of 500,000 tonnes for a total of KZT23.7 billion (US$160.6 million). Should the quota on agricultural products be achieved, the Zhambyl Commodity Exchange is committed to selling the products in Kazakhstan under the futures deliveries, reported the Kazakh-Grain news agency.

In early November, a milk receiving point was opened in the village of Altymysh in the Kemin district of the Chui Oblast in Kyrgyzstan.

According to the Chui Oblast Administration, the construction of the milk receiving point was funded in the amount of US$24,000 through a small grants programme established under the UNIFEM project supported by the Norwegian government. In addition contributions of partners and communities amounted to US$4,500. The receiving point established on the basis of a vocational school in the Altymysh village will comply with all sanitary, hygienic and technological requirements for such businesses. Its objective is to coordinate the delivery of milk to the Bishkeksut dairy plant in Bishkek at a higher price and without intermediaries.