ABOUT KYRGYZ REPUBLIC
As per Government’s Development Programs, Agriculture is considered to be key sector to focus on and under state support. Kyrgyz Republic has very advantageous position for development of agriculture industry for its favorable climate, naturally cultivated agro products, and territorial advantage. Тhe territory of Kyrgyz Republic is divided into oblasts that have distinct geographic and climate conditions that offers comparative advantages. For example, in Chuy oblast the dominant agricultural product is sugar beet; Issyk-Kul oblast is famous with apples and pears; in Batken oblast farmers grow apricot (dried); Osh and Jalal-Abad oblasts are the largest producers of cotton and walnut, Naryn oblast is famous for cattle farming; and Talas oblast is the biggest exporter of kidney and soya beans.
Agriculture is comprised of production and processing of agricultural products. It draws more value adding and labor intensive characteristics to this industry. Labor intensity could be sustained through rural population as majority population of the country live in rural areas.
Within the economic context, the Kyrgyz Republic can meet all requirements of being a producer of organic agricultural products. Because most agricultural products produced by the Kyrgyz farmers such as apple, melon, cotton, rice, potato, honey and other fruits and vegetables are mainly exported to neighboring countries and also to developed countries. From 2000 to 2016, approximately 35-160 centner/ha of major agricultural crops were yielded by the farmers annually in the country. It is a pretty good indicator of agrarian perspectives.
The Kyrgyz farmers, particularly in Naryn oblast, plant their land with potatoes in high demand in the Republic Kazakhstan. In addition to this, in the country approximately 1’000 farmers grow organic products mainly to export as part of such international programmes like USAID, GIZ or donor countries such as Germany, Switzerland and some others.
Besides, taxation regime for agriculture sector is the most favorable with respect to other sectors of the economy. Government pays full attention to the development of the sector through increase of production, quality improvements, food security, capacity building.
Processing – Food
In Kyrgyz processing sector, the food and beverages industry – which builds on the various agro-food value chains – plays a key role in terms of production, employment and exports. Kyrgyz Republic processed food industry does exhibit a number of promising factors, including its membership in Eurasian Economic Union that helps strengthen integration within regional value chains, GSP + status with European Union market, its comparatively low cost-base for processing and comparative advantages such as a positive reputation for processed traditional agro goods. Kyrgyz Republic is mostly recognized by its processed foods like: meats, honey, canned fruits, vegetables, dried fruits and vegetables, nuts and dairy products.
Labor resources of the country
The volume of investments
- Stable demand for agricultural products, which are resource base for the food industry. Therefore, its growth highly correlates with the growth in the agricultural industry.
- Access to Eurasian Economic Union market
- GSP+ status of Kyrgyz agro products to the European market
- Processing of primary agricultural products using new technologies
- Development and strengthening of small producers of environmentally friendly products with high export potential.
- Investment in niche market using high-quality raw materials with low operational costs
- Development of the high-value and organic food products.