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Kyrgyzstan

Kyrgyz Agro-Enterprise Development (KAED) Project


Since late 2002 IFDC has been participating in a project to improve agribusiness prospects in the Ferghana Valley of Kyrgyzstan. IFDC is providing critical know-how in technical fields, such as competitiveness, production, packaging, and marketing to key project clients. IFDC is also helping to establish industry clusters on demand.

Significant accomplishments of the project include:

• Encouraged the expansion of the leading agricultural association in the country with more than 150 dues-paying members, including large and small agricultural inputs dealers.

• Conducted 30 training programs on the development of retail farm stores, covering issues such as location, product diversity, store size, necessary legal documents, input sourcing, business plan development, and inventory management.

• Assisted with the creation of 7 retail farm stores. The Project has a goal of opening 21 retail farm stores in southern Kyrgyzstan by 2006; plans include the opening of 8 more stores next year.

• Assisted with the increased importation of fertilizers, improved seeds, and CPPs.

• Facilitated the removal of the value-added tax (VAT) on fertilizer and CPPs. The removal of this tax translates into millions of dollars saved for small and large farmers, fertilizer dealers, and CPP suppliers. Ultimately this saving will result in increased production of food for the Kyrgyz consumer at lower prices while at the same time discouraging the supply of low-quality contraband products.

• A study tour to the Netherlands proved successful for the Association of Agribusinessmen of Kyrgyzstan (AAK) members participating. The tour proved beneficial regarding (1) market linkages with seed companies, (2) advocacy issues, and (3) the need for private sector extension services among AAK member businesses.

• The project staff assisted with the establishment of 16 different vegetable and grain crops in demonstration fields.

• Each month 1,800 copies of the agribusiness newsletter is distributed in Kyrgyz and Russian.

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