 Agricultural
sector. |
Kyrgyzstan's economy was always been dependant on
the agricultural sector, although due to the region's
relief and climate there is no dominant sector in
agriculture. All spheres like cattle farming and
breeding, dairy products industry, cultivation of
fruit and vegetables and crop breeding are moving
the country towards self-sufficiency. For the past
5 years agricultural sector comprised 35-46% of
the country's GDP, it also employs about 65% of
the population, living in the rural areas. Due to
the high potentials in agricultural sector, Kyrgyzstan's
latest reforms are aimed at the development of all
agricultural spheres, especially modernization of
the equipment and machinery, and processing industry.
Diversification of the countries agriculture is
not only moving toward self-sufficiency, but also
opens multiple opportunities for exporting products
to the neighboring countries.
Chaotic processes in the economy after collapse
of Soviet Union left Kyrgyzstan's agricultural sector
in drastic conditions. Extensive cultivation of
cotton caused soil exhaustion and erosion of about
20% of the cultivated lands. Thus from 1990 Kyrgyz
government starts to pay more and more effort to
the reformation of agricultural sector. In 10 years
of independence agricultural sector in Kyrgyzstan
experienced various and continuing reforms in juridical
sphere of privatization, registration, private land
ownership; financing and credit opportunities. "Today
97, 5 % of land is owned by farms, associations
and co operations. Only the small part of land belongs
to the State. Today in compliance with our legislation,
land can be sold, purchased, changed and inherited.
In other words our peasants and farmers became full
owners of land."
Mr. Kostuk, Minister of Agriculture, Water Resources
and Processing Industries. This particular aspect
of ownership and systematization of agricultural
activities comprised out of 38.724 private farms
create an opportunity to amalgamate a number of
enterprises, able to create material base for food
processing industry.
In addition awareness of the reform in agriculture
is paid to the process of modernization. Factors
like farming machinery and equipment of food processing
industries have to be changes and must meet international
standards. Another important aspects such as crop
breeding, innovative agricultural methods and irrigation,
potential of highlands used in agriculture are analyzed
and introduced to the local conditions of agricultural
sector.
Amongst of the significant sectors, comprising
50% of the agricultural production is a cattle
farming and diary processing industry.
Kyrgyzstan's nomadic history and geographical
location play major role in the min sector of
agriculture- cattle farming. In 2000 the total
of meat number produced in the country was 346,2
thousand tons. A foremost region of fertile highlands
and valleys around the lake Issy-Kyl make rich
and accessible resources of pasture, about 9 million
hectors. Most of the work and training had been
done by various organizations in order to create
a healthy climate for competition and bring advanced
technologies in agriculture like production and
perseverance of forage, identification and consulting
in breeding and meat production. A number of existing
enterprises in Kyrgyzstan already work with farmers,
which provide processing plants for meat. Cattle
farming specializing in all areas of meat production
create considerable potential for producing of
all kinds of meat products in Kyrgyzstan, export
both products and meat, plus it also can provide
100% of supplies for diary industry.
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Historically suburban
areas of big cities and towns in Issyk-Kyl region
were devoted and specialized in the diary industry.
There are numerous amounts of plants and factories
producing milk, cheese, yogurt and all kinds of
diary products. Although significant amount of governmental
financing goes to diary industry, this sector of
Kyrgyzstan's economy is not working in its full
capacity. At present time diary plants can assure
county's self-sufficiency in diary products, but
the potential of expansion of the production and
exporting are still on the developing stage. With
involvement of new technologies and machinery couple
of the plants in Bishkek already started to produce
new products with international standards. There
is although a big interest in diary sector. Big
Russian companies are interested in investment expansion
of the diary industry, financing one of the Bishkek
diary plant with 5 million dollars in 2001. "Kyrgyzstan
has the most favorable conditions for investments.
Current government and previous government were
very interested in creating all the necessary conditions
for attracting foreign investments and to speed
up economy of the country." Regional Director
of "Wimm Bill Dann" Mr. Vladimir Anatolievich
Poltorak.
Another opportunity for development and increase
in the outcome of agricultural activities lays in
the nature gift- highland areas, fertile soils and
long-growing season. All southern region of Kyrgyzstan
are devoted to cultivation of fruits and vegetables,
cultivation of grapes, rice and various cereals.
However later, due to the prerogative given for
cultivation of forage, main % of the cultivated
lands goes under grain and cereal. Also Osh, Naryn
and Issyk-Kyl regions always specialized in the
fruit cultivation, a various number of gardens and
mountain valleys are occupied under the cultivation
of apricot and grapes. "Nowadays we have already
started to export dried fruits to Europe."
Says Minister
Mr. Kostuk Climate in the country makes favorable
conditions for the cultivation of grapes and thus
wine industry. There are a number of rehabilitated
plant producing good quality wine and expanding
its production. Also Kyrgyzstan orienting its cultivation
practices on rice, cereals and some wheat.
The main opportunities dynamically developing in
Kyrgyzstan combine all the aspects of production.
Kazakhstan and Uzbekistan's orientation of grain
production and cotton can be viewed favorably for
export of Kyrgyzstan's rough food materials and
processed products. Geographical location in heart
of Central Asia envision opportunities for expansion
into China and neighboring counties, although export
partners can be find in India, China, Tajikistan
and Malaysia. Later already has close connection
with Kyrgyz tan in spheres of meat production and
diary industry. Another resources, which are coming
form meat production, are great supplies of leather,
wool and fur, which are also sold to Kazakhstan,
and used, in the national production. Thus, there
are not only possibilities for self-sufficiency
in food, but also developing conditions for supply
production for industry.
However the most needy and undeveloped areas of
production are packaging, storing and transporting
of the product. There are various projects of
World Bank, TACIS, Swiss program Helvetas and
Asia Development Bank on agricultural development,
but the wise and experienced manager is needed
the most. Being an agricultural country, Kyrgyzstan
presents great potential for expansion and development
in the areas of net-store system, offers an unexplored
and innovative opportunities for new types of
production both in diary, meat processing and
fruit cultivation. The process of continuing privatization
and development seeks an experienced investor
and innovator to proceed the way to prosperity.
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