The Study on Effective Management of Agriculture and the ...
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March 2007 Japan International Cooperation Agency (JICA) Deloitte Touche Tohmatsu Ministry of Agriculture, Water Resources and Processing Industry of the Kyrgyz Republic The Study on Effective Management of Agriculture and the Processing Industry in the Kyrgyz Republic FINAL REPORT NO. RD JR 07-16
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Transcript of The Study on Effective Management of Agriculture and the ...
March 2007
Japan International Cooperation Agency (JICA)
Deloitte Touche Tohmatsu
Ministry of Agriculture,Water Resources and
Processing Industry ofthe Kyrgyz Republic
The Studyon
Effective Management of Agricultureand
the Processing Industryin
the Kyrgyz Republic
FINAL REPORT
NO.
RDJR
07-16
PREFACE
In response to a request from the Government of the Kyrgyz Republic, the Government of Japan decided to conduct a study on Effective Management of Agriculture and the Processing Industry in the Kyrgyz Republic and entrusted to the study to the Japan International Cooperation Agency (JICA).
JICA selected and dispatched a study team headed by Mr.Yujiro Higashi of
Deloitte Touche Tohmatsu between January, 2004 and March, 2007. The team held discussions with the officials concerned of the Government of the
Kyrgyz Republic and conducted field surveys at the study area. Upon returning to Japan, the team conducted further studies and prepared this final report.
I hope that this report will contribute to the promotion of this project and to the
enhancement of friendly relationship between our two countries. Finally, I wish to express my sincere appreciation to the officials concerned of the
Government of the Kyrgyz Republic for their close cooperation extended to the study. March 2007
Ariyuki Matsumoto Deputy Vice President Japan International Cooperation Agency
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Abbreviation and Acronyms
AAK Association of Agro business of Kyrgyzstan ABCC Agro-Business Competitiveness Center ADB Asian Development Bank A/O Aiyl Okmotus A/P Action Plan AP/C Action Plan Component CDF Comprehensive Development Framework EBRD European Bank for Reconstruction and Development FAO Food and Agriculture Organization GTZ Germen Agency for International Technical Assistance IA Issyk-Kul Agro ICAC International Cotton Advisory Committee ICCO Inter-Church Organization for Development Cooperation IFAD International Fund for Agricultural Development IFDC International Center for Soil Fertility and Agricultural Development IMF International Monetary Fund IPM Integrated Pest Management JICA Japan International Corporation Agency KAFC Kyrgyz Agriculture Finance Corporation MAWRPI Ministry of Agriculture, Water Resources and Processing Industry of the Kyrgyz
Republic M&E Monitoring and Evaluation MSC Marketing Services Center NGO Non-Governmental Organization NPV Nuclear Polyhedrosis Virus Nzaid New Zealand’s Aid and International Development Agency OJT on-the-job training PDM Project Design Matrix PIU Project Implementation Unit P/P Pilot Project RAS Naryn Rural Advisory Services in Naryn SIDA Swedish International Development Corporation Agency TSA Target Study Areas UNDP United Nations Development Programme USAID United States Agency for International Development WTO World Trade Organization WUA Water Users Association
i
CONTENTS Executive Summary ..................................................................................................................................1 Preface Background to and Purpose of the Study ................................................................................4
Chapter1 Outline of the Study 1.1 Outline of the Target Study Area ........................................................................................... 1-1 1.1.1 General Picture.......................................................................................................................... 1-1 1.1.2 Climate ...................................................................................................................................... 1-1 1.1.3 Current Agricultural Situation of the Target Area ..................................................................... 1-2 1.2 Outline of the Study .................................................................................................................. 1-5 1.3 Selection of Pilot Project implementation areas...................................................................... 1-15
Chapter 2 Implementation of Pilot Projects Reason for implementing the 3 Pilot Projects .................................................................................... 2-1 2.1 Mady Cotton Demonstration Farms Pilot Project ............................................................... 2-3 2.1.1 Background of selection of the Pilot Project............................................................................. 2-3 2.1.2 Activities and Budget Allocation for Pilot Project .................................................................... 2-8 2.1.3 Project Design Matrix ............................................................................................................. 2-10 2.1.4 Outline of JICA Cotton Pilot Project in the First Year .............................................................2-11 2.1.5 Outline of JICA Cotton Pilot Project in the Second Year........................................................ 2-12 2.1.6 Attainment and Technology Transfer .................................................................................... 2-20 2.1.7 Prospect ................................................................................................................................. 2-27 2.2 Sheep Fattening Experiment Pilot Project.......................................................................... 2-29 2.2.1 Background of selection of the Pilot Project and its objectives .............................................. 2-29 2.2.2 Project Outline and its budget of Second year ........................................................................ 2-31 2.2.3 Project Design Matrix ............................................................................................................. 2-33 2.2.4 Implementation of the P/P (for 2 years) .................................................................................. 2-34 2.2.5 Technical transfers................................................................................................................... 2-51 2.2.6 Accomplishment and Issues of Project Implementation ......................................................... 2-51 2.3 Creating a Marketing Services Center in Tyup rayon Pilot Project ................................. 2-57 2.3.1 Background and Reasons for selecting the Pilot Project......................................................... 2-57 2.3.2 Scope and budget of the P/P.................................................................................................... 2-58 2.3.3 Project Design Matrix ............................................................................................................. 2-60 2.3.4 Implementation of P/P of 1st year (July 2005 – March 2006) ................................................. 2-61 2.3.5 Implementation Summary for April to August 2006............................................................... 2-70 2.3.6 Implementation Summary for September to November 2006................................................. 2-75 2.3.7 Technology Transfer................................................................................................................ 2-81 2.3.8 Products of Project Implementation ........................................................................................ 2-84 2.3.9 Ensuring the Sustainability of MSC Activities after the P/P ends........................................... 2-86
ii
Chapter 3 Master Plan 3.1 Proposal for a Master Plan for 3 Target Study Areas (Osh, Naryn and Issyk-Kul oblast)... 3-1 3.1.1 Objective for preparing the Master Plan and Underlying Awareness........................................ 3-2 3.1.2 Composition of the Master Plan................................................................................................ 3-4 3.2 Cotton Growing Assistance Plan (A/P-1) .............................................................................. 3-5 3.2.1 Background to the Plan ............................................................................................................. 3-5 3.2.2 Cotton related Issues in Major Cotton Producing Countries..................................................... 3-9 3.2.3 Cotton in Central Asia ............................................................................................................. 3-16 3.2.4 Main Tasks and Objectives of the Plan ................................................................................... 3-25 3.2.5 The Goal of the Plan................................................................................................................ 3-27 3.2.6 Cotton Production Plan ........................................................................................................... 3-27 3.2.7 Action Plans .......................................................................................................................... 3-33 3.2.7.1 Cotton Industry Development Policy (AP/C 1-1) ................................................................ 3-35 3.2.7.2 Institutional Capacity Building Plan (AP/C 1-2) ................................................................. 3-38 3-3 Action Plan and its Components for Naryn and Issyk-Kul oblasts .................................. 3-45 3.3.1 Action Plan for improvement of Animal Husbandry, in particular Sheep breeding in Naryn. 3-45 3.3.2 Action Plan for improvement of Agriculture and Processing in Issyk-Kul oblast .................. 3-49 3.4 Action Plan (A/P) for Suzak and Kara-Buura rayons ....................................................... 3-69 3.4.1 Action Plan for Suzak rayon (Jalalabad oblast) ...................................................................... 3-69 3.4.2 Action Plan for Kara-Buura rayon (Talas oblsat) ................................................................ 3-72
Chapter 4 Recommendations
1. With respect to working with donors and implementing efficient and effective aid projects ................................................................................................................. 4-1 2. Promotion of Livestock Raising Industry ................................................................................. 4-1 3. Effective utilization of the result from the Pilot Projects and Establishment of A Kyrgyz Brand for Agricultural Products................................................................................ 4-2
iii
FIGURES
1-1 Scheme and Implementation Plan of the Study ......................................................... 5 1-2-1 Formulation of an Action Plans to Improve Farming and to Promoto the Processing
Sector of Agricultural and Animal Husbanry Products in the Kara-Suu-Rayon ........1-10 1-2-2 Formulation of Action Plans to Improve Farming and to Promoto the Processing
Sector for Agricultural and Animal Husbanry Products in the Kara-Buura Rayon ....1-11 1-2-3 Formulation of Action Plans to Improve Farming and to Promoto the Processing
Sector of Agricultural and Animal Husbanry Products in the Naryn Rayon..............1-12 1-2-4 Formulation of Action Plans to Improve Farming and to Promoto the Processing
Sector of Agricultural and Animal Husbanry Products in the Suzak Rayon ..............1-13 1-2-5 Formulation of Action Plans to Improve Farming and to Promoto the Processing
Sector for Agricultural and Animal Husbanry Products in the Tyup Rayon ..............1-14 2-1-1 Integrated Pest Management Scheme...................................................................2-22 2-2-4 (1) Layout of Experiment Seting ..............................................................................2-42 2-2-4 (2) Organizational Structure for Pilot Project Implementation ..................................2-43 2-2-4 (3) Marketing Channel of Naryn Fattening Project....................................................2-49 2-2-4 (4) Fattening Sheep and Dressed Carcass after Slaughtering.....................................2-56 2-3-1 Marketing and the Expected Economic Impact ....................................................2-58 2-3-4-1 Three stages of MSC activity for the period.........................................................2-61 2-3-4-2 Scheme of illegal exports through the Tokmok route ...........................................2-67 2-3-6 Procurement and Sales Structure for Potatoes ......................................................2-76 2-3-9 Division of Rules between the MSC and Issyk-Kul Agro ....................................2-86 3-1-1 World Cotton Lint Production ................................................................................3-5 3-1-2 World Cotton Area..................................................................................................3-5 3-1-3 World Cotton Lint Yields........................................................................................3-5 3-1-4 Cotton Lint Market Price Trend from 1990-2006...................................................3-6 3-1-5 Parallel Movements in Cotton Prices and net Exports from China ........................3-8 3-1-6 Cotton prices in 2005/2006.....................................................................................3-8 3-1-7 Cotton Trend in Franco-phone Countries .............................................................3-10 3-1-8 Cotton Production in Australia ...........................................................................3-11 3-1-9 Greek Cotton Production ....................................................................................3-12 3-1-10 USA Cotton Trend ..............................................................................................3-12 3-1-11 Cotton Trend in India ..........................................................................................3-13 3-1-12 Cotton in Pakistan.................................................................................................3-15 3-1-13 Cotton in China.....................................................................................................3-16 3-1-14 Cotton Trend in Uzbekistan..................................................................................3-18 3-1-15 Cotton Trend in Turkmenistan ..............................................................................3-19 3-1-16 Cotton Trend in Kazakhstan .................................................................................3-19 3-1-17 Cotton Trend in Tajikistan ....................................................................................3-20 3-1-18 Kyrgyz Cotton Trend ............................................................................................3-21
iv
3-1-19 Lint Yield in Kyrgyz .............................................................................................3-22 3-3-1 Formulating the Oblast Administration’s Mission and Roles ...............................3-53
TABLES
2-1-1 Project Cost ............................................................................................................2-9 2-1-2 Implementation Schedule .......................................................................................2-9 2-1-3 Project Design Matrix...........................................................................................2-10 2-1-4 The Demonstration Farm in 2005.........................................................................2-11 2-1-5 Farm Budget Analysis per ha in 2005...................................................................2-11 2-1-6 Targets in 2006 .....................................................................................................2-13 2-1-7 New Efforts in 2006 .............................................................................................2-13 2-1-8 Summary of Cotton Production in 2006...............................................................2-16 2-1-9 Effect of Manure Application on Cotton Farm.....................................................2-16 2-1-10 Yield Distribution by Manure Application ...........................................................2-17 2-2-1 Candidate Pilot Projects in 4 A/Os .......................................................................2-29 2-2-2 Cost of the Pilot Project........................................................................................2-32 2-2-3 PDM for the Sheep Fattening Experiment Project ...............................................2-33 2-2-4 (1) Design of the Sheep Fattening Experiment for the 1st Stage ...............................2-38 2-2-4 (2) Design of the Sheep Fattening Experiment for the 2nd Stage ..............................2-39 2-2-4 (3) Design of the Sheep Fattening Experiment for the 3rd Stage...............................2-40 2-2-4 (4) Design of the Sheep Fattening Experiment for the 4th Stage ...............................2-41 2-2-4 (5) Summary of the Implementation Record..............................................................2-44 2-2-4 (6) Summary of Weight Incrase Data of the Sheep Fattening Experiment for the
1st stage ...............................................................................................................2-45 2-2-4 (7) Summary of Weight Incrase Data of the Sheep Fattening Experiment for the
2nd stage..............................................................................................................2-46 2-2-4 (8) Summary of Weight Incrase Data of the Sheep Fattening Experiment for the
3rd stage...............................................................................................................2-47 2-3-2 Budget for implementing P/P “the Marketing Service Centre in Tyup” from
July 2005 to March 2006 .....................................................................................2-59 2-3-3 Project Design Matrix..........................................................................................2-60 2-3-4-1 State of Implementation of the 10 Principle Issues .............................................2-61 2-3-4-2 Cost Estimate for exporting of 15 tons of potatoes through Kegen.....................2-68 2-3-6 Price Setting for Dutch Grown Seed Potatoes SANTE (Elite) ............................2-78 3-1-1 World Cotton Production.......................................................................................3-5 3-1-2 World Cotton Production in the Major Cotton Production Countries...................3-7 3-1-3 World Cotton Consumption ..................................................................................3-7
v
3-1-4 World Cotton Fiber Export ...................................................................................3-7 3-1-5 World Cotton Lint Stock at the Beginning of the Crop Year ................................3-9 3-1-6 World Cotton Trend ..............................................................................................3-9 3-1-7 EU Cotton Direct Subsidy ..................................................................................3-11 3-1-8 Cotton Production Trend in India ........................................................................3-14 3-1-9 Area of Irrigated Cotton in India: 2000-2001 by State ........................................3-14 3-1-10 World Extra Long and Long Staple Cotton Output .............................................3-14 3-1-11 Lint Production in Central Asia ...........................................................................3-16 3-1-12 Cotton Production Trend in Uzbekistan...............................................................3-17 3-1-13 Cotton Data in Turkmenistan...............................................................................3-18 3-1-14 Cotton Data in Kazakhstan ..................................................................................3-19 3-1-15 Cotton Data in Tajikistan .....................................................................................3-20 3-1-16 Kyrgyz Cotton Data.............................................................................................3-21 3-1-17 Production of Main Crops in Kyrgyzstan ............................................................3-22 3-1-18 Cotton Production Data in Central Asia ..............................................................3-22 3-1-19 Arable Land and Irrigated Land by Oblast ..........................................................3-28 3-1-20 Irrigated Land and Cotton Harvested Areas in the Three Regions ......................3-29 3-1-21 Cotton Production Estimate.................................................................................3-30 3-1-22 Farm Gate Cotton Values.....................................................................................3-31 3-1-23 National Benefits from the Cotton Chain ............................................................3-32 3-1-24 Summary of Benefits at Farm Level....................................................................3-33
1
EXECUTIVE SUMMARY
1. Background to and Purpose of the Study
In the Kyrgyz Republic since its independence in 1991, agriculture, which accounts for 44% of Gross Domestic Product (GDP) and 48% of employment, is a key industry and has become more and more important in driving the market economy of the country. The area of the country is about 200,000 sq. km, of which 48% is mountains over 3,000m above sea level. 44% of the country's land is used as pastures for livestock while only 7% (1.4 million hectares) is for agriculture; livestock accounts for almost half of the total output of the agricultural sector.
After the economic transition, the previous distribution system, which the government controlled through Kolkhozes and Sovkhozes collapsed and many small and medium-scale farmers appeared. However both agricultural productivity and the quality of agricultural produce have remained low since those small farms do not have proper knowledge and experience about small-scale agriculture management and agricultural technology, which has become a serious obstacle to improving incomes.
Under these circumstances, in 1999, the Government of the Kyrgyz Republic (GKR), asked the Government of Japan (GOJ) to formulate a master plan on how to increase productivity in agriculture and improve marketing and agro-processing systems. In May 2003 the GOJ asked the GKR to confirm the contents of the request and collect information, and, in August 2003, the initial study team was despatched and agreement to conduct this Study was reached.
The purpose of the study is to formulate action plans to find ways of improving the management of the agriculture and processing industry to increase farmers’ incomes in the KR. Pilot projects are programmed and conducted after feasible action plans and areas have been selected, aimed at improving the management capability of farmers.
2. Outline of the Major Study Points by Phase
The Study was conducted for three years and two months from January 2004 to February 2007 in three phases. The major points of each phase are as follows:
Phase 1 （Jan. 04－Jul. 04）：Investigate the current situation in agriculture and agro processing countrywide and select target areas
Phase 2 ( Aug. 04－Dec.04）：Detailed study of target areas, designing of action plans , study of candidate pilot projects, preparation of subcontracts
Phase 3 （Jan.05－Feb.07） ：Selection and implementation of pilot projects and formulation of the master plan
2
3. Method of Formulating the Action Plan (A/P)
In the Study, five (5) Oblasts, Osh, Issyk-Kul, Naryn, Jalal-Abad and Talas were selected as important target study areas, the characteristics of each area and the extendibility to other areas of the country, action plans were formulated in line with the following points: 1) Conformity with the Basic Agriculture Policies of the Government of the Kyrgyz Republic; 2) High Priority Issues from the point of view of Policies designed to promote Agriculture including local
processing industry; 3) Proper Response to Structural Changes in the Future in view of the Development Stage of the market
economy to ensure the sustainability of Agriculture and the Processing Industry in the Kyrgyz Republic;
4) The following Important Points for the Action Plan Components are necessary for the implementation of Pilot Projects: - Feasibility and Effectiveness of Action Plans - Existence of willingness and self-help efforts of local residents - Existence of leaders with management and executive abilities - Effective utilization of limited resources - Real prospect of direct effects, such as increasing incomes and employment and indirect effects such as a positive impact on revitalising the local economy of other areas - Extendibility to other areas - Avoidance of duplication of projects executed by other donors
4. Implementation of Pilot Projects (Chapter 2)
As a result of detailed investigation of 5 selected target areas and action plans formulated in those 5 areas, three areas, Kara-Suu Rayon (Osh Oblast), Naryn Rayon (Naryn Oblast) and Tyup Rayon (Issyk-Kul) were selected and approved by JICA as suitable for the implementation of the Pilot Projects mentioned below that were implemented for two years.
Mady Cotton Demonstration Farms (Project Area: Mady A/O in Kara-Suu Rayon, Osh Oblast) Sheep Fattening Experiment (Project Area： Ming-Bulak A/O, Naryn Rayon, Naryn Oblast) Creating a Marketing Service Centre in Tyup Village
Countrywide study 1) Plantations 2) Livestock 3) Processing
Agro-products 4) Livestock
Processing
Phase 1
Detailed study
of 5 Target Areas
Formulate Action PlanComponent
Selectionof Pilot Projects
Implementationof pilot projects
Phase 2 Phase 3
Continued in the 2nd year
Master Plan and
Recommendations
3
(Project Area : Tyup Rayon including neighbouring regions and the town of Karakol, Issyk-Kul)
5. Formulation of the Master Plan (Chapter 3)
In the Study, based on the results and sustainability seen in the implementation stage of the three Pilot Projects, as well as lessons and experiences obtained from those projects, together with the possibility of extending them to other areas of the Kyrgyz Republic, action plans were formulated to implement effective management in agriculture. In the end, the study team formulated a master plan, which contributes to the future improvement of the agricultural management of the country.
The following points were considered necessary for drawing up the master plan;
− Effective use of resources, improvements to effective agricultural management and quality of agricultural products;
− Possibility of contributing to solving structural and critical issues of the agriculture sector, including the agro-processing industry bearing in mind the current social and economic situation of the Kyrgyz Republic;
− Contribute to improving management capacity and transparency of information, raising awareness and developing the human resources of state organizations and local governance bodies of the Republic;
− Food security of agricultural products, including animal husbandry products; − Strengthening the marketing system and promoting sales in local areas; − Informing farmers, enterprises and public entities involved in agriculture; − Avoidance of duplication of projects executed by other donors, collaboration with other
donors; − Realization of ideas and efforts brought by governments and residents.
The Study Team formulated a master plan that includes action plans to solve the structural issues through improving management in Kyrgyz agriculture.
The main executing bodies of the master plan are oblast where there is great concern about the promotion of agriculture. For some specific action plans, Issyk-Kul and Naryn Oblasts were given as examples for the implementation of plans. Sustainable cotton growing is also proposed as a vital component of the master plan, necessary for the development of the southern part of the Kyrgyz Republic.
6. Recommendations (Chapter 4)
Some important points, such as measures for the effective and smooth implementation of donor projects are recommended to improve the effective management of agriculture in the Kyrgyz Republic.
4
Preface Background to and Purpose of the Study
1. Background to the Study
In the Kyrgyz Republic since its independence in 1991, agriculture, which accounts for 44% of Gross Domestic Product (GDP) and 48% of employment, is a key industry and has become more and more important in driving the market economy of the country. The area of the country is about 200,000 sq. km, of which 48% is mountains over 3,000m above sea level. 44% of the country's land is used as pastures for livestock while only 7% (1.4 million hectares) is for agriculture; livestock accounts for almost half of the total output of the agricultural sector.
After the economic transition, the previous distribution system, which the government controlled through Kolkhozes and Sovkhozes collapsed and many small and medium-scale farmers appeared. However both agricultural productivity and the quality of agricultural produce have remained low since those small farms do not have proper knowledge and experience about small-scale agriculture management and agricultural technology, which has become a serious obstacle to improving incomes.
Under these circumstances, in 1999, the Government of the Kyrgyz Republic (GKR), asked the Government of Japan (GOJ) to formulate a master plan on how to increase productivity in agriculture and improve marketing and agro-processing systems. In May 2003 the GOJ asked the GKR to confirm the contents of the request and collect information, and, in August 2003, the initial study team was despatched and agreement to conduct this Study was reached.
2. Purpose of the Study
The purpose of the study is to formulate action plans to find ways of improving the management of the agriculture and processing industry to increase farmers’ incomes in the KR. Pilot projects are programmed and conducted after feasible action plans and areas have been selected, aimed at improving the management capability of farmers.
The Study was conducted for three years and two months from January 2004 to February 2007.
3. Outline of three phases implemented in the Study
The Study was conducted in three phases. The major points of each phase are as follows
Phase Term Outline of the Study
First Jan. 2004－Jul. 2004
・Submission of Inception Report ・ Investigate the current situation in agriculture and agro
processing in all 7 oblasts
・Investigate characteristics of agriculture in Kyrgyz and classify Rayons in to 5 groups.
・Select target areas
・Submission of Progress Report 1
5
Phase Term Outline of the Study
Second Aug. 2004－Dec.2004
・Detailed study of target areas
・Designing of action plans(A/Ps)
・Formulation of components for A/Ps
・Select candidate pilot projects
・Preparation of subcontracts
・Submission of Interim Report
Third Jan.2005－Feb.2007
・Submission of Progress Report 2, 3, 4 and 5
・Select Pilot Projects (P/P)
・Implementation of P/P in the first year
・Implementation of P/P in the second year
・Formulation of the master plan
・Submission of Final Report
Implementation plan of the Study with target tasks and times for field surveys of each phase are shown in Figure 1-1-1.
Figure 1-1 Scheme and Implementation Plan of the Study
Study over the Country 1) Plantation 2) Livestock 3) Processing
Agroproduce 4) Livestock
Processing
CCaatteeggoorriizzee rraayyoonnss iinnttoo 55 ggrroouuppss && sseelleecctt 11 ttaarrggeett aarreeaa ffrroomm eeaacchh ggrroouupp
Phase 1 (Jan-Jul 2004)
Detailed study for 5 rayons (5 oblasts)
Formulation of Action Plan & A/P component
Selected area and theme for P/P
SSeelleeccttiioonn ooff tthheemmeess ffoorr iimmpplleemmeennttaattiioonn ooff PPiilloott PPrroojjeeccttss ((PP//PP))
Implementation of P/P (1st year)
Phase 2 (Sep-Dec 2004) Phase 3 (Feb 2005-Feb 2007)
SSeelleeccttiioonn ooff aarreeaa ffoorr iimmpplleemmeennttaattiioonn ooff PPiilloott PPrroojjeeccttss
Implementation of P/P (2nd year)
1st 2nd 3rd 4th 5th (1) (2) (3) 6th (1) (2) (3) 7th Field Survey 2004 Feb May-Jul Sep - Dec 2005 Feb Jul-Aug Nov 2006 Feb Jun Jul-Aug Nov 2007Jan
▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ Reports IN/R PR-1 IT/R PR-2 PR-3 PR-4 PR-5 DR/F F/R
(IN/R-Inception report, PR-Progress Report, IT/R-Interim Report, DF/R-Draft Final report, F/R-Final Report)
Master Plan
6
4. Target Areas
Following the first field survey, related information and data were collected and analyzed, and investigates the current situation in agriculture and agro-processing in all 7 oblasts of the Kyrgyz Republic. Field survey were carried out in Chui, Jalalabat, Osh, Naryn , Issyk-Kul oblasts and Bishkek.
In the selection of target areas, as mentioned in Chapter 1, regions (rayons) were classified into 5 groups based on the characteristics of agriculture in each region. Five areas were selected as target study areas among candidate areas proposed in the phase 1 study.
5 Target Areas
5. Reports submitted to J ICA
Inception Report
Interim Report
Progress Report No.1 ～ No.5
Draft Final Report
Final Report
Yssyk-kul
Naryn
OshBatkenBatken
Chui
Jalal-Abad
TalasTalas
Bishkek
Osh
Yssyk-kul
Naryn
OshBatkenBatken
Chui
Jalal-Abad
TalasTalas
Bishkek
Osh
Yssyk-kul
Naryn
OshBatkenBatken
Chui
Jalal-Abad
TalasTalas
Bishkek
Osh
Kara-Buura
Kara-Suu
Tyup
Naryn
Suzak
Kara-Buura
Kara-Suu
Tyup
Naryn
Suzak
O
1-1
Chapter 1 Outline of the Study
1 Outline of the Target Study Area 1-1-1 General Picture
The Kyrgyz Republic is a nation with population of five million. The Kyrgyz Republic is a multinational country. There are 64.9% Kyrgyz, 13.8% Uzbeks, 12.5% Russians following Ukrainians, Tatars, Germans, Kazakhs, Tajiks, Turkish, Dungans and other nationalities. Major industry in the Kyrgyz Republic which started the transition becoming the market economy, agriculture, which accounts for 44% of Gross Domestic Product (GDP) and 48% of employment, is a key industry and has become more and more important in driving the market economy of the country. The area of the country is about 200,000 sq. km, of which 48% is mountains over 3,000m above sea level. 44% of the country's land is used as pastures for livestock while only 7% (1.4 million hectares) is for agriculture; livestock accounts for almost half of the total output of the agricultural sector.
The Kyrgyz Republic consists of seven oblasts and its capital city is Bishkek. In 1991, with the collapse of the Soviet Union, Kyrgyz has become an independent country under the presidential scheme. Official language is Kyrgyz but Russian is being utilized to communicate among peoples. Almost all the people are Islamite, however Russians are Christians. National currency is Som (US$1=41 Som, 1Som= 2.815 Yen as of April, 2006)
1-1-2 Climate
The Kyrgyz Republic is situated at 41°of north latitude and at 75°of east longitude in the north-eastern part of the Central Asia and surrounded by Uzbekistan west , Kazakhstan north, Tajikistan and China south side. The area is 198,500 ㎢ and occupies Tyan-Shan in the south-west and Pamir-Alay in the north-east.
Climate is, generally in the continental dry zone but mountains in the northern part are warm and south-west Fergana Valley is a subtropical zone. The big variety and contrast of climate is noticeable in Tyan-shan area because of Issyk-Kul Lake and mountains. Temperature in July sometimes goes over 40℃. The average temperature of in winter is -7℃. The snow lay under 15cm deep. Precipitation of the year is 400mm. Fine days are common throughout the year.
The Kyrgyz Republic is a mountainous country. About 90% of the area lies at the altitude of 1,500m over the sea level. The highest peak of Tyan-Shan is 7,439m. There are many glaciers over the mountains, which are heads of rivers and utilized for domestic and neighbouring regions. The longest river Naryn (535km) is the source of the second longest river Siyrdaria in the Central Asia.
There are many lakes in the country. The biggest Lake is located in Issyk-Kul oblast which is one of the target study areas. There is also a plenty of natural resources, hydropower and mineral resources like gold, antimony, mercury, coal and gas. 44% of the country's land is used as pastures for livestock while only 7% is for agriculture, 4% is for forest and 45% is for others. About 9,000 ㎢ of land has been irrigated.
1-2
1-1-3 Current Agricultural Situation of the Target Area
Agricultural situation of five regions selected as the Target Study Areas are as follows;
1) North-eastern part of Kara-Suu Rayon ( Osh Oblast) The north eastern part of Kara-Suu rayon is one of the richest areas for agriculture in the Republic. Total land suitable for agriculture of the rayon is 136,832 ha. Of this, farmland is 48,684ha and over 60 % is irrigated. Besides this as the rayon is one of the most densely populated areas, which has around 300,000 population, each person only received only 0.3 to 0.5 ha of farm land. The land markets for rent and sales are well developed.
Cotton and wheat are the main crops. Vegetables, potatoes and oilseeds are planted for self-consumption. Corn is used for animal feed.
Livestock farming is also a main income source in the rayon. It has two types of breeding style. One is that livestock are reared to supplement agricultural income from intensive agriculture in the main agricultural areas located in the northern part of the rayon. The other type is that farmers engage in livestock rearing to get a main income source from livestock in the foothills and mountainous area. In the rayon, industry means the agro-processing industry (99% of all industries). Flourmills, tobacco and cotton processing factories are the main industry. Output from the cotton industry exceeds 10 million USD every year.
Osh Bazaar in Osh city, which is one of the biggest bazaars in the south of the republic, has the main role of agricultural trading. Small and medium size traders are playing key roles in trading. Export and import deals of products are frequent with Uzbekistan. Kara-Suu rayon is more active in forming farmers’ groups than the other four target study areas. More than 50 % of farmers belong to a group. After the Reform, more farmland is being integrated into bigger units to seek more profit.
2) Suzak Rayon (Jalalabat oblast)
The Suzak rayon is one of the most densely populated areas in the oblast with a population of 216,900, including Uzbeks - 34 %. The rayon is located in the north-eastern part of the oblast. Total area is 301,600.ha, of which 41,000 ha is for farmland, 2,000 ha for perennial plants, 12,600ha for hayfields. Characteristics in agriculture of the rayon are that farmers are living on agriculture in the south on the other hand; farmers in the north are living on livestock.
Major part of the land in the south has been irrigated. Climatic conditions of areas allow the cultivation of cotton, maize, vegetables, melons, sunflower and rice. In rain fed areas of the upper zone, and farmers grow mainly grain, and oil crops and potatoes. Also winter sorts of apple and plum are cultivated in the north. Over the GDP of the region in 2003, agriculture was accounted for about 77%. Under land reform, 76% of farmland has been privatised and allocated to farmers but average of land per farmer is only 1,1ha. Livestock’s share of agricultural GDP in the rayon is 46%. Farmers ranch cattle mainly for meat and milk. The agro-processing industry is identified as a sector for priority development. The main emphasis is put on establishing agricultural processing enterprises such as 3 wood working companies, 3 ginneries (cotton-cleaning plants), 1 fruit processing enterprise, 3 timber mills, 1 coal mining company, 1 enterprise producing mineral water and 1 winery. People make a living by selling agricultural products or livestock. Another source of income is collecting and cleaning wild fruit (apples, pistachio, walnuts, cuppers and others).
1-3
People sell their products in markets or to middlemen. Cotton dealers come to producers themselves or send their buyers, or open seasonal collecting points. Sunflower farmers supply them to oil mills.
3) Naryn rayon (Naryn oblast)
The rayon consists of 15 Aiyl-Okmotus (A/Os). The total population of the rayon (except for Naryn town) was recorded as 240,000 at the end of 2003. Total land suitable for agriculture is about 680,000 ha out of which 660,000 ha is pastures. Agriculture, particularly livestock rearing is the sole economic activity in the rayon; more than 95% of the population is considered to be engaged in agriculture/livestock production or agriculture-based industries.
Major crops produced in the rayon are wheat, barley, potatoes and several kinds of vegetables. More than 85% of arable land was actually planted with wheat or barley and land with other crops was very small in area. The average area/of own land ranges from 0.3 to 4.3 ha. 23,000 ha of arable land in Naryn rayon remained as state farm or A/O land (Land Redistribution Fund) and 75% was privatized under a program of agricultural sector land reforms.
The rayon has a huge area of land suitable for grazing ruminant animals and producing fodder. The majority is small ruminants including sheep and goats, followed by cattle and horses, of which there were 210,000 in 2003. The average number of animals kept by a household in the rayon was 2.5 head of cattle, 15.3 head of small ruminants and 2.8 head of horses. Also around 1,000 head of Yaks are being raised in the rayon.
No new mass production and processing of livestock products system has been created on the same scale as it used to be during the Soviet time. There are two slaughterhouses in Naryn town operated by private businessmen. There is one factory in Naryn town that is engaged in processing cashmere wool and goatskins. Flourmills are the most common processing units that can be found in rural areas.
There are two distribution channels in the rayon. One is selling in the local market in Naryn town and the other is selling in markets in Bishkek. There are very few kinds of products that are exported to other countries from the rayon. Primarily processed cashmere wool and goatskins are two such major export commodities.
28 financial organizations are in fact operating in Naryn town and the rayon. The majority of them are small to medium scale credit unions and of them, only 3 credit unions are operating in the rayon.
4) Tyup Rayon (Issyk-Kul oblast)
Tyup rayon is located at highland of altitude from 1,600m to 4,000m and the area of the land is 120,000ha, of which 45% is irrigated land and the remaining 55% is pastures. The area is huge but the rayon is collective sparsely populated villages with population of 58,200. There are good conditions for livestock farming; especially dairy industry is quite well-developed. The number of cattle is beginning to increase every year. Livestock farming is the most important income source for Tyup farmers.
One of the most significant issues in Tyup Rayon is that farmers lacking other products to farm have produced potatoes each year in volumes that well exceed the consumption levels in neighbouring regions. (Neighbouring regions are also producing potato.) Small time brokers from Bishkek, referred to as “Middlemen”, travel in by trucks and buy the potatoes from the farmers at a cheap price. Farmers who have no other effective means of selling their produce have to basically take whatever the middlemen offer or having to store the produce for a long period of time. This holds true also for wheat and barley. The cost of production of potatoes is about 1.2 – 1.5 som/kg. Most of farmers do not have any information relating to the market conditions of neighbouring countries or import tariffs or transportation costs.
1-4
Agricultural processing industry in Tyup Rayon is presented only by two companies. They are modern cheese manufacture and ecoproduct-fruits juice producer. Several kind of taste fruit juice is advertising as ecologically clean product, but in fact it is the product produced in the technology not corresponding to world hygiene/sanitary standard using ecologically clean raw material. Tyup rayon as well as neighbouring regions around Issyk-Kul Lake has several not-utilized agricultural natural resources such as various kinds of berry, herbs and honey that may change valuable export products to Europe and Japan.
Tyup links the region with Kazakh market by important road to Almaty through Kegen. Road is in very bad condition, especially in Kyrgyz side. This road will have strategically important function as the gate to/from Almaty. Currently export through Kegen is hindered in wintertime.1 Agricultural products such as peach, apricot, apple, potato were transported through Kegen and total export volume of 4 products stood at 7 million Som in 2003.
Agriculture in Tyup Rayon today is plagued by many issues that are common to all farming in the republic including the lack of farming machinery, lack of funds to purchase the needed seeds, fertilizers, agricultural chemicals, and feed. It also faces the following problems that are peculiar to the Rayon.
1. Due to continuous planting same sort of grain and potato, the farmland has deteriorated, the quality of the produce such as potatoes has deteriorated and diseases are beginning to appear.
2. In some areas, due to the rise in the water table, the area/of wetlands is expanding. The state of disrepair of irrigation and drainage facilities are exacerbating the problem.
3. Due to the breakdown of irrigation equipment or sprinkling equipment, part of the farmlands are abandoned unused in some A/O.
5) Kara-Buura Rayon (Talas oblast)
Agricultural area in the rayon is 212,000 ha including arable land (36,528 ha) and of which 72 % of 26,398 ha land is irrigated. In the rayon, crops such as wheat, potatoes, vegetables, sugar beets, French beans and oil crops are mainly cultivated.
Bean is one of most reliable source of income. From 1996 this rayon has support of Turkish businessmen specialised for bean production. Since 1996, this rayon has been famous for bean production. Beans in Talas oblast are grown on 16,000 ha of farmland and are produced 30 thousand tons annually. A Turkish company is in charge of sales. Sugar beet is produced for Taraz sugar-refinery, which is approximately 70-80 km away from regional centre.
As for agricultural cooperatives, all of them have been organized since 2003. Cooperative movement in Kara-Buura rayon has just begun. In the rayon there are 7,300 peasant farms and more than 15,000 individual farmers. Processing sector is not well developed in the rayon. There are one big mill and two milk processing factories in three A/Os which were built during Soviet Union and were privatized. The share of mini-plants and shops in total production is significantly increasing. Currently large enterprises of food and processing industry are going through restructuring and modernisation.
By the support of UNDP “Local governance program”, there are basically 20 NGOs and public unions in the rayon and 30% of which are engaged to support farmers. Total size of loans received in the rayon during 2002 is 18.5 million som, but loans received during 2003 decreased to 11 million som.
1-5
1-2 Outline of the Study
The Study on Effective Management of the Agriculture and Processing Industry in the Kyrgyz Republic (hereinafter referred to as the Study) is due to run for 3 years from January 2004 till February 2007 and consists of the following 3 study phases.
In Phase 1 is to investigate the current situation in agriculture and agro processing in all 7 oblasts of the Kyrgyz Republic and select the Target Study Areas (TSA).
In Phase 2 is to conduct a detailed study of selected TSAs, to formulate an action plan (A/P) with its components (AP/C) and to select candidate Pilot Project (P//P) implementation areas and high priority AP/Cs for the P/P.
Phase 3 is to select final areas and AP/C for P/P and to begin implementation.
Implementation plan of the study with the target tasks and times for field surveys of each study phase are shown in Figure 1-1-1.
The study team in cooperation with its Kyrgyz counterpart, the Ministry of Agriculture, Water Resources and Processing Industry of the Kyrgyz Republic (MAWRPI) has conducted 7 field studies during the past 3 years (February 2004 – February 2007).
1) Outline of Phase 1
The first phase included preparing the inception report, establishing counterpart cooperation and investigating the current situation in agriculture and agro processing in all 7 oblasts of the Kyrgyz Republic and selecting the Target Study Areas (TSA). Most rayons 2 were classified into 5 groups according to characteristics of the local agriculture. The Study Team conducted the first and second field studies. The results of the studies were reported in Progress Report (1).
(1) A short history of the study
A short analysis was made of the current state of agriculture and agro processing nationwide and at oblast level on different aspects, such as agriculture and livestock production, agrarian and land reform, extension services, agro processing, markets, finance etc. The study team determined the main constraints, development needs and development potential of each of the basic components of the study: agriculture, livestock and processing and also the main constraints of the old cultivation technology, poor selection and distribution of fertilizers and chemicals, old machinery, limited capacity to monitor agricultural activities, high price of fuel and services, variable product quality, and weak marketing activity and brand policy. They gave advice on how to improve soil and plant nutrition and access to inputs and seed quality to increase crop yields. The main development needs and development potentials are support to equipment leasing, using trade shows, demonstration farms, establishing privately-driven systems for extension services, expanding into new products (specific Kyrgyz products), support to the most flexible small and medium-sized companies, new packaging development, marketing and new transparent trade transactions systems.
Based on the results of 1st study most regions (rayons) were classified into the following 5 groups based on the characteristics of agriculture in each region.
(1) Pattern A area……mainly agriculture (arable) (2) Pattern B area……mainly agriculture with specific crops
2 ) Rayons were selected as the optimum unit for the purpose by area and population.
1-6
(3) Pattern C area……mainly livestock production (4) Pattern D area……Intensive farming and livestock production (5) Pattern E area…….Mixed management of livestock production and agriculture
Based on field surveys, the target study areas were selected in two steps. Firstly, in each oblast 4-6 rayons were selected as suitable for agriculture and livestock using a Land Use Map. From those selected 1 or 2 candidates were selected as priority areas based on the following criteria:
- local special agri products - management ability of local government and residents - needs and potential for development - processing capacity - distribution infrastructure - poverty level
After discussions among team members and consultations with MAWRPI, the study team proposed JICA and the Advisory Committee authorised the following rayons in five oblasts:
1. Kara-Suu Rayon (Northeastern part) (Osh oblast) 2. Kara-Buura Rayon (Talas oblast) 3. Naryn Rayon (Naryn oblast) 4. Suzak Rayon (Jalal-Abad oblast) 5. Tyup Rayon, including neighbouring regions (Issyk-Kul oblast)
A summary of the TSA is shown in table 1-1-1. Figure 1-1-1 shows the locations of the selected 5 TSA.
1-7
Farming pattern
Weight of agriculture and livestock production
Temporary selected rayon
Income improvement/ Weight of exports promotion
The finally selected rayon
Pattern A:
Mainly agriculture
Osh oblast, Kara-Suu rayon (north-eastern part)
Income improvement Export promotion
Reason for selection
None, because the temporary selected rayon is one.
Osh oblast, Kara-Suu rayon (north-eastern part)
Pattern B: Mainly agriculture
Talas oblast, Bakai-Ata rayon and Kara-Buura rayon
Income improvement Export promotion partly
Reason for selection
Kara-Buura rayon the main bean production area has the most typical characteristics of Talas oblast. As such, it is suitable as a study area.
Talas oblast Kara-Buura rayon
Pattern C: Mainly livestock production
Naryn oblast, Kochkor rayon, Naryn rayon, and At-Bashy rayon
Income improvement Export promotion partly
Reason for selection
Among rayons in Naryn oblast, Naryn rayon has one of the most diversified agriculture and processing industries based on the livestock industry and it would be suitable as a study area.
Naryn oblast, Naryn rayon
Pattern D:
Intensive farming of agriculture and livestock production
Jalalabat oblast, Bazar-korgon and Nooken, Suzak rayon, Osh oblast, Uzgen rayon
Income improvement
Reason for selection
Four rayons have similar agriculture and livestock production. However, Suzak rayon with the oblast capital has a geographical advantage and easy access to information, so the rayon is suitable for effective implementation of the study.
Jalalabat oblast, Suzak rayon
Pattern E:
Mixed management of livestock production and agriculture
Issyk-Kul oblast, Jeti-Oguz rayon and Tyup rayon
Export promotion
Reason for selection
In this pattern, Tyup rayon has more balanced livestock production and fruit growing and there is a remarkable leader in the local administration.
Issyk-Kul oblast, Tyup rayon
2) Selected target areas
1-8
3) Outline of Phase 2
The second phase included a detailed study of the selected Target Atudy Areas, formulation of an action plan (A/P) and its components (AP/C), and selected 4 candidate Pilot Projects (P/P) implementation areas and high priority AP/Cs for the implementation of the P/P. Prepared a Interim Report summarizing all the study results of Phase 1 and Phase 2.
4) Formulation of the Action Plan with 31 A/P components The study team conducted an in-depth investigation of the current situation in agriculture, livestock and agri processing in the selected 5 rayons.
The Action Plan (A/P) was formulated in each of the rayons based on the study results, current situation of agriculture and the processing industry and discussions with rayon governments. Action Plan Components (AP/Cs) to implement the A/P were formulated.
The study team drew up the following 31 AP/Cs as high priority A/P components.
a) Pattern A: Mainly Agriculture (Wheat + vegetables/fruit + industrial crops (tobacco/raw cotton/beet)) Selected Target Study Area: Kara-Suu Rayon Selected High Priority AP/Cs 1 Micro-Finance for Agriculture and the Processing Industry 2 Mini-processing Project for Income Generation in the Village 3 Gizzar Sheep Development Project 4 Cooperative Input Procurement 5 Range & Pasture Land Management Project 6 Mady Cotton Demonstration Farms Project 7 Greenhouse Development Project in Kyzyl-Kyshtak A/O 8 South to North Agro-Tech Transfer Project
b) Pattern B: Mainly Agriculture (Wheat + Others (fruit/beans/potatoes etc.)) Selected Target Study Area: Kara-Buura rayon Selected High Priority AP/Cs 1 State Farm for Breeding Fine-fleeced Australian Merino Sheep 2 Kidney Beans and Wheat Seed Growing Farm 3 Creation of a Cattle Breeding Farm in the Village 4 Mini Vegetable Oil Production Facilities 5 Modernization of the Milk Processing Factory
c) Pattern C: Mainly Livestock production (Livestock + (wheat + potatoes/honey)) Selected Target Study Area: Naryn rayon Selected High Priority AP/Cs 1 Improving the Feeding Regime for Livestock by Re-introducing a Silage Production System 2 Promoting Milk Production by Establishing a Community-based Dairy Processing Plant 3 Income Generations for Livestock Farmers by Improving the Meat Production and Marketing
System 4 Irrigation Rehabilitation Project in Sary A/O 5 Marketing and Traders' Associations
1-9
d) Pattern D: Intensive farming and livestock production (Wheat/rice + vegetables + fruit + livestock) Selected Target Study Area: Suzak rayon Selected High Priority AP/Cs 1 Yrys Cotton Demonstration Farm Project 2 Drainage Improvement Programme 3 Rice Improvement Programme 4 Cooperative Shipments 5 Establishing a Rural Market Project in Atabekov 6 Yrys Model Vegetable and Fruit Processing Company 7 Kogart Oil Extraction Project 8 Gizzar Sheep Breeding Project in Atabekov A/O
e) Pattern E: Mixed management of agriculture and livestock production (Livestock + Orchards (apples, apricots, vineyards etc.)) Selected Target Study Area: Tyup rayon Selected High Priority AP/Cs 1 Establishment of a Marketing Service Centre 2 Establishment of a Trading Company 3 A Model Processing Company 4 Dairy Cow Improvement Project 5 Weed control programme to increase crop yields
The comprehensive approach to formulating an Action Plan for each of the 5 selected rayons is shown in the following Fig. 1-2-1 – Fig. 1-2-5
Fig.
1-2
-1 F
orm
ulat
ion
of a
n A
ctio
n Pl
ans t
o Im
prov
e Fa
rmin
g an
d to
Pro
mot
e th
e Pr
oces
sing
Sec
tor
of A
gric
ultu
ral
and
Ani
mal
Hus
band
ry P
rodu
cts i
n th
e K
ara-
Suu
Ray
on
F.Pr
omoti
on of
inv
estm
ent in
the
agra
rian s
ector
and
stren
gthen
ing ex
port
capa
city t
hrou
gh
stren
gthen
ing
relat
ionsh
ips w
ith
foreig
n mar
kets
E.Pr
omoti
on of
far
mlan
d inte
grati
on
and g
roup
ing of
far
mers
Related to both agricultural and processing factors
Fina
ncia
l ass
ista
nce
for
stre
ngth
enin
g ex
port
capa
city
(i)
Spec
ific
Fact
ors
Con
stra
inin
g th
e D
evel
opm
ent o
f the
Ka
ra-S
uu R
ayon
Hig
h po
pula
tion
dens
ity
Dom
inan
ce o
f sm
all
farm
plo
ts a
nd lo
w
prod
uctiv
ity
Hig
h po
verty
ratio
Lack
of l
ocal
bud
get t
o pr
omot
e fa
rmin
g an
d pr
oces
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Old
fash
ione
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oces
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for
agric
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ral p
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men
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w q
ualit
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pr
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ucts
Lack
of e
xpor
t mar
kets
(ii)
Dev
elop
men
t Po
tent
ial
Pote
ntia
l for
incr
ease
d in
com
e th
roug
h in
crea
sed
yiel
ds a
nd
prod
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n
Dev
elop
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t pot
entia
l as
a m
ajor
agr
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l pr
oduc
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and
proc
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Dev
elop
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entia
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roce
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port
base
with
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ourc
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Dev
elop
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entia
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r eff
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due
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rmer
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Pros
pect
of m
any
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trepr
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lead
lo
cal i
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Formulation of action plans taking into consideration constraining factors, potential and needs
(iii)
Dev
elop
men
t N
eeds
(Fin
ding
s of
Q
uest
ionn
aire
S
urve
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Prom
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ani
mal
hu
sban
dry:
incr
ease
the
num
ber o
f ani
mal
s (s
heep
and
cat
tle) t
hat
have
falle
n sh
arpl
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Cot
ton
culti
vatio
n:
incr
ease
d pr
oduc
tion
by
achi
evin
g hi
gh y
ield
s
Smal
l-sca
le p
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ssin
g:
incr
ease
the
adde
d va
lue
of a
gric
ultu
ral p
rodu
cts
and
the
inco
me
of
farm
ers
Act
ion
Pla
ns a
nd M
utua
l Rel
atio
nshi
ps
B.
Intro
ducti
on of
high
qu
ality
anim
als an
d re
vival
of br
eedin
g far
ms
A.
Expa
nsion
of co
tton
prod
uctio
n
Agriculture and Animal Husbandry
D.
Prom
otion
of ex
ports
of
proc
esse
d fru
it, etc
. by
mode
rnisi
ngex
isting
fac
tories
and
techn
ologic
al im
prov
emen
ts
C.
Prom
oting
the r
e-es
tablis
hmen
t of th
e pr
oces
sing s
ector
thr
ough
assis
tance
for
small
-scale
pr
oces
sing
Processing of Agricultural and Animal Husbandry Products
Increased security with animals
Financial assistance
Assistance for efficientprocessing
Cap
ital i
njec
tion
to
exis
ting
fact
orie
s
Promotion of exportsby the agrarian sector
Ass
ista
nce
for
effic
ient
pr
oduc
tion
Support for cotton processingby foreign capital
Exp
ecte
d O
utco
mes
Incr
ease
d in
com
e of
fa
rmer
s
Pove
rty re
duct
ion
for
loca
l res
iden
ts
Impr
oved
farm
ing
tech
niqu
es, a
gric
ultu
ral
prod
uctiv
ity a
nd
proc
essi
ng te
chno
logi
es
Satis
fact
ory
food
supp
ly
and
dem
and
situ
atio
n in
th
e ra
yon
Incr
ease
d fo
reig
n cu
rren
cy e
arni
ngs
thro
ugh
a st
reng
then
ed
rela
tions
hip
with
fore
ign
mar
kets
and
incr
ease
d ex
ports
G.
Stre
ngthe
ning t
he
agric
ultur
al fin
ance
sit
uatio
n (mi
cro
finan
ce)
1-10
Dev
elop
men
t Pot
entia
l
High
er in
come
s for
farm
ers a
nd
the ra
yon i
n gen
eral
throu
gh
the ex
pand
ed pr
oduc
tion a
nd
sale
of ag
ricult
ural
and a
nimal
husb
andr
y pro
ducts
and t
heir
proc
esse
d pro
ducts
Dev
elop
men
t Nee
ds
(Fin
ding
s of
th
e Q
uest
ionn
aire
Sur
vey)
Prom
otion
of an
imal
husb
andr
y to
resto
re th
e dwi
ndlin
g num
ber
of an
imals
(she
ep an
d catt
le)
Achie
ving h
igh yi
eld sa
nd
expa
nded
prod
uctio
n of k
idney
be
ans a
nd w
heat
Incre
ased
adde
d valu
e of
agric
ultur
al pr
oduc
ts thr
ough
sm
all-sc
ale pr
oces
sing a
nd an
hig
her in
come
s for
farm
ers
Incre
ased
harve
st thr
ough
im
prov
ed pr
oduc
tion m
ethod
s for
agric
ultur
al an
d anim
al h
bd
d
t
Prom
otion
of pr
oces
sing b
y far
mers
and f
arme
rs’ gr
oups
Quali
tative
impr
ovem
ent o
f ag
ricult
ural
and a
nimal
husb
andr
y pro
ducts
thro
ugh t
he
impr
ovem
ent o
f pro
cess
ing
techn
ologie
s
Fulfil
lmen
t of lo
cal d
eman
d and
en
hanc
ed su
pply
capa
city
throu
gh in
creas
ed ha
rvests
of
agric
ultur
al an
d anim
al hu
sban
dry p
rodu
cts
Expa
nsion
of ex
ports
of
agric
ultur
al an
d anim
al hu
sban
dry p
rodu
cts an
d the
ir d
dt
Formulation of action plans in consideration of the constraining factors, potential and needs
Exp
ecte
d O
utco
mes
Impr
oved
farm
ing te
chniq
ues
------
------
------
------
------
------
------
------
･
Impr
oved
yield
s and
expa
nded
pr
oduc
tion
･ Pr
oduc
tion o
f high
quali
ty ag
ricult
ural
prod
ucts
Impr
oved
anim
al br
eedin
g tec
hniqu
es
------
------
------
------
------
------
------
------
･
Incre
ased
prod
uctio
n of a
nimals
･
Prod
uctio
n of h
igh qu
ality
anim
als
Impr
oved
small
-scale
proc
essin
g tec
hnolo
gies f
or ag
ricult
ural
and
anim
al hu
sban
dry p
rodu
cts
------
------
------
------
------
------
------
------
･ Inc
reas
ed in
come
due t
o add
ed
value
･
Expa
nsion
of m
arke
ts an
d sale
s ･
Incre
ased
inco
me fo
r far
mers
Incre
ased
expo
rts of
agric
ultur
al an
d an
imal
husb
andr
y pro
ducts
---
------
------
------
------
------
------
------
---･
Incre
ased
fore
ign cu
rrenc
y ea
rning
s ･
Incre
ased
fund
s for
inve
stmen
t ･
Incre
ased
purch
ase o
f raw
ma
terial
s fro
m far
mers
Impr
oved
pro
cess
ing te
chno
logies
for
agric
ultur
al an
d an
imal
husb
andr
y pr
oduc
ts ---
------
------
------
------
------
------
------
---･
Supp
ly of
high q
uality
prod
ucts
･ En
hanc
ed co
mpeti
tiven
ess o
f pr
oduc
ts ･
Expa
nsion
of ex
port
marke
ts
Incre
ased
prod
uctio
n of a
nimals
---
------
------
------
------
------
------
------
---･
Incre
ased
prod
uctio
n of a
nimal
husb
andr
y pro
ducts
to m
eet lo
cal
dema
nd
･ Inc
reas
ed su
pply
capa
city o
f raw
da
iry pr
oduc
ts ･
Incre
ased
supp
ly of
raw
mater
ials
for pr
oces
sing
Fact
ors
Con
stra
inin
g D
evel
opm
ent
Low
yield
and p
rodu
ctivit
y of
agric
ultur
al pr
oduc
ts du
e to l
ow
quali
ty se
eds a
nd in
suffic
ient
fertili
zer a
pplic
ation
Topo
grap
hical
diffic
ulty o
f ac
cess
to ci
ties i
n Kyrg
yzsta
n
Insuff
icien
t pro
ducti
on vo
lume o
f an
imal
husb
andr
y to m
eet lo
cal
dema
nd
Geog
raph
ical p
roxim
ity to
Tar
az
and K
azak
hstan
Delay
ed es
tablis
hmen
t of
agric
ultur
al co
oper
ative
s
Unde
velop
ed pr
oces
sing o
f ag
ricult
ural
and a
nimal
husb
andr
y pro
ducts
with
out
d
thd
Relat
ive ea
se of
tran
spor
ting
good
s to d
istan
t plac
es an
d ex
ports
via r
ailwa
y and
road
li
k
Good
yiel
ds o
f kid
ney
bean
s an
d sug
ar be
et as
cash
crop
s
Depe
nden
ce on
othe
rs to
marke
t agr
icultu
ral a
nd an
imal
husb
andr
y pro
ducts
at ho
me
d b
d
Adv
anta
ges
for D
evel
opm
ent
Act
ion
Pla
ns a
nd M
utua
l Rel
atio
nshi
p
E. Q
ualita
tive
impr
ovem
ent o
f pr
oces
sed p
rodu
cts
throu
gh th
e mo
dern
izatio
n of
exist
ing fa
ctorie
s and
im
prov
ed pr
oces
sing
techn
ologie
s
D. In
creas
e far
mers'
inc
omes
thro
ugh
prom
oting
small
-sc
ale pr
oces
sing o
f ag
ricult
ural
and
anim
al hu
sban
dry
prod
ucts
Agrarian and animal husbandry sectors Processing sector for agricultural and animal husbandry products
C. In
creas
ed in
come
in
the ra
yon d
ue to
inc
reas
ed ex
ports
thr
ough
deve
loping
po
tentia
l mar
kets
For both agrarian and processing sectors
Supply increase
Dev
elop
men
t of e
xpor
t mar
kets
Dev
elop
men
t of e
xpor
t mar
kets
A. Q
ualita
tive
impr
ovem
ent a
nd
incre
ased
harve
st of
agric
ultur
al pr
oduc
ts thr
ough
the
intro
ducti
on of
high
qu
ality
seed
s and
fer
tilize
r
B. In
creas
e the
inco
me
of sto
ck ra
ising
far
mers
throu
gh th
e int
rodu
ction
of
anim
als w
ith hi
gh
prod
uctiv
ity
Fig.
1-2
-2
Form
atio
n of
Act
ion
Plan
s to
Im
prov
e Fa
rmin
g an
d to
Pro
mot
e th
e Pr
oces
sing
Sec
tor
for
Agr
icul
tura
l and
Ani
mal
Hus
band
ry P
rodu
cts i
n th
e K
ara-
Buu
ra R
ayon
(→ 2
010)
1-11
Fig.
1-2
-3 F
orm
ulat
ion
of A
ctio
n Pl
ans t
o Im
prov
e Fa
rmin
g an
d to
Pro
mot
e th
e Pr
oces
sing
Sec
tor
of
Agr
icul
tura
l and
Ani
mal
Hus
band
ry P
rodu
cts i
n th
e N
aryn
Ray
on
Facto
rs Co
nstra
ining
Ag
ricult
ural
Deve
lopme
nt
Smal
l pop
ulat
ion
(44,
000)
Smal
l far
min
g ar
ea a
nd lo
w c
rop
yiel
ds
Fodd
er sh
orta
ge in
win
ter
Deve
lopme
nt Ne
eds o
f Lo
cal R
eside
nts
Incr
ease
d an
imal
hus
band
ry
prod
uctio
n
Incr
ease
d cr
op y
ield
s (w
heat
and
ba
rley,
etc
.)
Prom
otio
n of
the
pro
cess
ing
of
anim
al h
usba
ndry
pro
duct
s (m
ilk
and
mea
t, et
c.)
Impr
oved
soil
and
agric
ultu
ral
mac
hine
ry
Deve
lopme
nt Po
tentia
l
Hug
e pa
stur
es (6
60,0
00 h
a)
Lots
of p
eopl
e w
ith e
xper
ienc
e of
ra
isin
g an
imal
s
Exis
tenc
e of
goo
d m
arke
ts
(adj
acen
t to
Nar
yn a
nd g
ood
acce
ss to
wes
tern
Chi
na)
Agric
ultur
al De
velop
ment
Polic
ies of
the R
ayon
Stre
ngth
enin
g cr
op p
rodu
ctio
n
Prom
otio
n of
ani
mal
hus
band
ry
prod
uctio
n
Prom
otio
n of
the
proc
essi
ng o
f ag
ricul
tura
l pro
duct
s
Impr
ovem
ent o
f the
dis
tribu
tion
of a
gric
ultu
ral a
nd a
nim
al
husb
andr
y pr
oduc
ts
Stre
ngth
enin
g of
farm
ers’
or
gani
zatio
ns
Actio
n Plan
s and
Mutu
al Re
lation
ship
Expa
nsio
n of
agr
icul
tura
l pr
oduc
tion
(thro
ugh
the
reha
bilit
atio
n of
irrig
atio
n fa
cilit
ies a
nd st
reng
then
ing
of
irrig
atio
n as
soci
atio
ns)
Incr
ease
d pr
oduc
tion
and
qual
itativ
e im
prov
emen
t of
anim
als
Prom
otin
g da
iry p
rodu
ct
proc
essi
ng
Prom
otin
g m
eat p
roce
ssin
g
Impr
ovin
g th
e di
strib
utio
n of
ag
ricul
tura
l and
ani
mal
hu
sban
dry
prod
ucts
and
thei
r pr
oces
sed
prod
ucts
thro
ugh
the
prom
otio
n of
coo
pera
tives
Farm
ing E
nviro
nmen
t An
imal
Husb
andr
y
Incr
ease
d cr
op y
ield
s (w
heat
, po
tato
es a
nd v
eget
able
s, et
c.)
Proc
essin
g of A
gricu
ltura
l Pr
oduc
ts Im
prov
emen
t of D
istrib
ution
Prom
otio
n of
ani
mal
hu
sban
dry
(incr
ease
d an
imal hu
sban
dry
prod
uctio
nth
roug
hth
e
Relia
ble su
pply
of foo
d thr
ough
the
incre
ased
prod
uctio
n of
food c
rops
(whe
at, po
tatoe
s, ve
getab
les, e
tc.)
Expe
cted O
utcom
es
Incre
ased
anim
al hu
sban
dry
prod
uctio
n thr
ough
the
incre
ased
prod
uctio
n of fo
dder
Incre
ased
inco
me du
e to t
he
incre
ased
prod
uctio
n of s
uch
cash
crop
s as v
egeta
bles a
nd
potat
oes,
etc.
Stab
le su
pply
of me
at an
d milk
for
home
cons
umpti
on th
roug
h inc
reas
ed an
imal
husb
andr
y pr
oduc
tion
Incre
ased
inco
me of
loca
l re
siden
ts thr
ough
the
proc
essin
g and
mar
ketin
g of
dairy
prod
ucts
Incre
ased
inco
me of
loca
l re
siden
ts thr
ough
the i
mpro
ved
distrib
ution
of ag
ricult
ural
and
anim
al hu
sban
dry p
rodu
cts
Incr
ease
d pr
oduc
tion
of a
nim
al
fodd
er (b
arle
y, e
tc.)
1-12
Fig.
1-2
-4 F
orm
ulat
ion
of A
ctio
n Pl
ans t
o Im
prov
e Fa
rmin
g an
d to
Pro
mot
e th
e Pr
oces
sing
Sec
tor
of A
gric
ultu
ral
and
Ani
mal
Hus
band
ry P
rodu
cts i
n th
e Su
zak
Ray
on
Dev
elop
men
t Vis
ion
To m
ake
the
tota
l pro
duct
ion
of th
e ag
raria
n se
ctor
and
the
proc
essi
ng s
ecto
r in
2010
dou
ble
the
leve
l in
2004
thro
ugh
the
effic
ient
cul
tivat
ion
of h
igh
qual
ity c
rops
su
itabl
e fo
r the
loca
lity,
pro
mot
ion
of a
nim
al h
usba
ndry
and
dev
elop
men
t of h
igh
qual
ity d
airy
farm
ing,
cre
atio
n of
new
com
mod
ities
from
hith
erto
unu
sed
agric
ultu
ral
reso
urce
s, d
evel
opm
ent
of n
ew m
arke
ts,
deve
lopm
ent
of s
elf-r
elia
nt m
arke
ting
capa
bilit
y an
d se
lf-he
lp e
fforts
with
out
rely
ing
on o
ther
s, e
tc.
to c
reat
e th
e de
velo
pmen
t bas
e fo
r an
afflu
ent S
uzak
Ray
on
Chara
cteris
tics,
Curre
nt Pr
oblem
s, Fa
ctors
Cons
traini
ng
the D
evelo
pmen
t and
Rela
tive
Adva
ntage
s/ Di
sadv
antag
es of
the
Agr
arian
Sec
tor an
d the
Pr
oces
sing S
ector
in th
e Suz
ak
Rayo
n
Dive
rse to
pogr
aphy
rang
ing fr
om
3,000
m hi
gh la
nd an
d mo
untai
nous
area
s to f
lat la
nd w
ith
an e
levati
on of
some
800 m
Diffe
rent
mode
s of a
gricu
lture
be
twee
n high
elev
ation
area
s and
low
er la
nd
accu
mulat
ion of
dr
ained
irriga
tion w
ater c
ausin
g po
or d
raina
ge on
the
lower
land
Suita
ble fo
r anim
al hu
sban
dry a
nd
dairy
farm
ing (c
limate
and
huge
pa
sture
)
Insuff
icien
t kno
wled
ge of
farm
ing,
expe
rienc
e and
effor
t on t
he pa
rt of
farme
rs
Cotto
n, wh
eat a
nd ric
e on f
lat la
nd
and
whea
t and
oil s
eeds
in ot
her
area
s
Deter
iorati
on of
farm
ing
infra
struc
ture (
irriga
tion f
acilit
ies,
agric
ultur
al ma
chine
ry an
d me
adow
s/gra
zing
land)
Proc
essin
g en
terpr
ises o
pera
ting
with
outd
ated
techn
ologie
s and
un
hygie
nic co
nditio
ns
Low
cons
umpti
on le
vels
in pr
oduc
tion a
reas
and
weak
ma
rketin
g ca
pacit
y to o
utside
ma
rkets
Low
purch
ase p
rice o
ffere
d by
mi
ddlem
en be
caus
e of t
he
abse
nce o
f pro
duce
rs’ o
wn
marke
ting
bodie
s
Stre
ngth
enin
g ag
ricul
tura
l pr
oduc
tion
(stre
ngth
enin
g th
e pr
oduc
tion
capa
city
and
the
pros
pect
of s
usta
inab
le p
rodu
ctio
n of
cot
ton
and
padd
y ric
e)
Prom
otio
n of
ani
mal
hus
band
ry
(intro
duct
ion
of h
igh
qual
ity b
reed
s of
cat
tle a
nd sh
eep;
AI;
hygi
ene;
gr
assla
nd m
anag
emen
t)
Intro
duct
ion
of h
igh
qual
ity
varie
ties (
cotto
n: e
arly
gro
win
g an
d co
ld-re
sista
nt; r
ice:
hig
h yi
eld
and
tole
rant
of h
igh
leve
ls of
ferti
liser
)
Impr
ovem
ent o
f the
farm
ing
infra
stru
ctur
e (im
prov
ed d
rain
age,
ra
tiona
l wat
er m
anag
emen
t and
in
tens
ive
use
of fa
rmla
nd fo
r m
ultip
le c
ropp
ing)
Sust
aina
ble
farm
ing
(far
min
g w
ith
the
intro
duct
ion
of IP
M a
nd o
rgan
ic
ferti
liser
s)
Dev
elop
men
t of t
he n
eces
sary
co
nditi
ons t
o pr
omot
e pr
oces
sing
ente
rpris
es
Mar
ketin
g ef
forts
to p
rom
ote
expo
rts o
f agr
icul
tura
l and
thei
r pr
oces
sed
prod
ucts
to n
eigh
bour
ing
coun
tries
Dev
elop
men
t of s
elf-m
arke
ting
capa
city
(bre
akin
g aw
ay fr
om th
e de
pend
ence
on
mid
dlem
en)
Deve
lopm
ent P
oten
tial a
nd
Basic
Dev
elopm
ent P
olicie
s Im
prov
ed a
gric
ultu
re in
the
Suza
k R
ayon
and
adap
tatio
n to
a m
arke
t ec
onom
y
Stru
ctur
al re
form
of t
he a
grar
ian
sect
or
- R
efor
m th
e aw
aren
ess o
f fa
rmer
s -
Esta
blish
men
t of s
oft s
yste
ms
- Im
prov
ed p
rodu
ctio
n in
frast
ruct
ure
Impr
oved
farm
ing
- Im
prov
ed q
ualit
y -
Impr
oved
pro
duct
ion
effic
ienc
y -
Intro
duct
ion
of n
ew fa
rmin
g sy
stem
s -
Cha
nge
to m
ultip
le c
ropp
ing
- Es
tabl
ishm
ent o
f sus
tain
able
fa
rmin
g
Self-
relia
nt d
evel
opm
ent o
f exp
ort
mar
kets
-
Impr
oved
pric
e co
mpe
titiv
enes
s -
Secu
ring
and
incr
easi
ng
empl
oym
ent
- H
ighe
r inc
omes
-
Incr
ease
d in
vest
men
t -
Early
resp
onse
to n
ew n
eeds
-
Incr
ease
d co
nsum
ptio
n (o
f ag
ricul
tura
l pro
duct
s)
Adv
anta
geou
s pro
cure
men
t of i
nput
go
ods
- R
educ
ed p
rodu
ctio
n co
sts
Exte
nsio
n to
oth
er ra
yons
in th
e pr
ovin
ce
Actio
n Pl
ans a
nd M
utua
l Rela
tions
hip
D.
Mode
rnizin
g the
busin
ess
mana
geme
nt of
proce
ssing
en
terpr
ises a
nd in
creas
ing
sales
B.
Intro
ducti
on of
high
qua
lity
bree
ds an
d de
velop
ment
of br
eedin
g far
ms an
d pr
oduc
tion b
ases
Qua
litat
ive
and
quan
titat
ive
impr
ovem
ent o
f pr
oduc
tion
thro
ugh
impr
ovin
g th
e fa
rmin
g in
frast
ruct
ure,
in tu
rn a
chie
ved
by g
uida
nce
on
farm
ing
tech
niqu
es, g
roup
ing
of fa
rmer
s and
su
pply
ing
info
rmat
ion
on m
arke
ts, i
nput
goo
ds
and
new
cro
ps, e
tc. f
or fa
rmer
s
Qua
litat
ive
impr
ovem
ent o
f ani
mal
s and
in
crea
sed
quan
tity
of su
pply
E.
Prom
otion
of ex
ports
and
impo
rts of
agric
ultur
al pr
oduc
ts
Infra
stru
ctur
e Im
prov
emen
t, P
roce
ssin
g
A.
Expa
nsion
of co
tton a
nd ric
e pr
oduc
tion Agric
ultur
e
App
ropr
iate
di
strib
utio
n of
se
eds
and
inpu
t goo
ds
F.
Prom
otion
of in
ward
inv
estm
ent a
nd st
reng
thenin
g re
lation
ships
with
fore
ign
marke
ts
Incr
ease
the
proc
essin
g an
d m
arke
ting
volu
mes
, inc
ludi
ng e
xpor
ts, t
hrou
gh th
e qu
alita
tive
and
quan
titat
ive
impr
ovem
ent
of a
gric
ultu
ral p
rodu
cts a
nd e
ffect
ive
mar
ketin
g m
easu
res
Anim
al Hu
sban
dry
Mar
ketin
g M
easu
res
Intro
duct
ion
of
new
fa
rmin
g sy
stem
s and
sust
aina
ble
farm
ing
Stre
ngth
enin
g of
pro
duct
ion
grou
ps
C. S
treng
thenin
g pr
oduc
tivity
thr
ough
prom
oting
the
impr
ovem
ent o
f far
ming
inf
rastr
uctur
e
Expe
cted
Outco
mes
1-13
Fig.
1-2
-5 F
orm
ulat
ion
of A
ctio
n Pl
ans t
o Im
prov
e Fa
rmin
g an
d to
Pro
mot
e th
e Pr
oces
sing
Sec
tor
for
Agr
icul
tura
l an
d A
nim
al H
usba
ndry
Pro
duct
s in
the
Tyu
p R
ayon
Dev
elop
men
t Pot
entia
l and
D
evel
opm
ent P
olic
ies
Dev
elop
men
t Vis
ion
To m
ake
the
total
prod
uctio
n of
the
agra
rian
secto
r and
the
proc
essin
g se
ctor i
n 20
10 d
ouble
the
level
in 20
04 th
roug
h th
e ef
ficien
t cu
ltivat
ion o
f high
qua
lity c
rops
suit
able
for t
he lo
cality
and
dem
ande
d by
the
mar
ket,
form
ation
of t
he T
yup
bran
d, p
rom
otion
of a
nimal
husb
andr
y an
d hig
h qu
ality
dairy
farm
ing, c
reat
ion o
f new
com
mod
ities
from
hith
erto
unus
ed a
gricu
ltura
l res
ourc
es, d
evelo
pmen
t of n
ew
mar
kets
in Ka
zakh
stan
and
Russ
ia an
d de
velop
men
t of s
elf-re
liant
mar
ketin
g ca
pabil
ity a
nd s
elf-h
elp e
fforts
with
out r
elian
ce o
n ot
hers
, et
c. to
crea
te th
e de
velop
men
t bas
e of
an
afflue
nt T
yup
Rayo
n
Char
acte
ristic
s, Fa
ctors
Co
nstra
ining
the
Deve
lopm
ent
and
Relat
ive
Adva
ntag
es/D
isadv
anta
ges o
f the
Ag
raria
n Se
ctor a
nd th
e Pr
oces
sing
Secto
r in
the
Tyup
Ra
yon
High
elev
ation
(1,00
0 – 4,
000 m
), re
moten
ess (
400 k
m fro
m the
capit
al)
and
lack o
f a ra
ilway
link
Low
popu
lation
den
sity (
58,20
0 peo
ple
in an
area
of 12
0,000
ha);
large
farm
plo
t size
per f
armi
ng ho
useh
old
Suita
ble fo
r anim
al hu
sban
dry a
nd d
airy
farmi
ng (c
limate
and
huge
pastu
res)
Insuff
icien
t far
ming
know
ledge
, ex
perie
nce a
nd ef
forts
on th
e par
t of
farme
rs
Farm
ing pr
imar
ily ce
ntred
on po
tatoe
s an
d wh
eat
Cultiv
ation
of fr
uit (a
pples
, pea
rs,
apric
ots, p
each
es, b
errie
s and
str
awbe
rries
)
Proc
essin
g en
terpr
ises h
ave o
ut-da
ted
techn
ologie
s and
unhy
gienic
cond
itions
Small
mar
ket
size
(320
,000
peo
ple,
includ
ing th
ose i
n the
surro
undin
g ar
ea);
380 k
m to
Almat
y
Low
purch
ase p
rices
offer
ed by
mi
ddlem
en d
ue to
the a
bsen
ce of
pr
oduc
ers’
own m
arke
ting
bodie
s
Effec
tive u
se of
farm
land
(remo
val o
f we
eds a
nd pe
sts, n
on-h
armf
ul re
peate
d cu
ltivati
on a
nd in
trodu
ction
of
high q
uality
seed
s)
Prom
otion
of an
imal
husb
andr
y, es
pecia
lly im
prov
ing th
e qua
lity an
d ra
ising
inco
mes t
hrou
gh im
prov
ing th
e ra
ising
cond
itions
for d
airy c
ows
Intro
ducti
on of
new
crops
(stud
y on
foreig
n exp
erien
ces a
nd m
arke
ting)
Impr
ovem
ent o
f the
know
ledge
and
expe
rienc
e of f
armi
ng (a
ware
ness
, ed
ucati
on an
d gr
oupin
g of
farme
rs)
Impr
ovem
ent o
f fru
it cult
ivatio
n tec
hniqu
es (im
prov
emen
t of t
he
know
ledge
and
skills
and
gro
uping
of
farme
rs)
Prom
otion
of ne
w pr
oces
sing
enter
prise
s and
dev
elopm
ent o
f the
en
viron
men
t to f
acilit
ate su
ch
prom
otion
Prom
otion
of ex
ports
of ag
ricult
ural
and
proc
esse
d pr
oduc
ts to
neigh
bour
ing
coun
tries;
imple
men
tation
of ac
tive
marke
ting
Deve
lopme
nt of
self-m
arke
ting
capa
city
(bre
aking
away
from
the d
epen
denc
e on
midd
lemen
)
Act
ion
Pla
n an
d M
utua
l Rel
atio
nshi
p
G. U
tiliza
tion
of un
used
agr
icultu
ral
reso
urce
s (at
tracti
ng p
roce
ssing
en
terp
rises
to e
xpor
t and
de
velop
the
envir
onm
ent t
o ac
cept
inve
stmen
ts)
F. M
oder
nizat
ion o
f the
bus
iness
m
anag
emen
t of a
mod
el pr
oces
sing
ente
rpris
e an
d inc
reas
ed sa
les
E. P
rom
otion
of a
nimal
husb
andr
y, in
parti
cular
qu
alita
tive
impr
ovem
ents
in an
d hig
her i
ncom
es
from
dair
y far
ming
Deve
lopme
nt of
new
marke
ts, P
R, w
ebsit
e, pr
ovisi
on of
infor
matio
n on m
arke
ts, in
put g
oods
an
d cro
ps, e
tc. fo
r far
mers,
crea
tion o
f a T
yup
bran
d an
d gu
idanc
e on p
rodu
ct sh
ipmen
t, etc
.
Ani
mal
Hus
band
ry
Quali
tative
impr
ovem
ent a
nd in
creas
ed
supp
ly of
milk
I. De
velop
men
t of s
elf-re
liant
sa
les ca
pacit
y
A. E
ffecti
ve u
se o
f far
mlan
d
C. T
echn
ical im
prov
emen
t of f
ruit
cultu
re
B. I
ntro
ducti
on o
f new
crop
s
D. I
mpr
ovem
ent o
f far
ming
kn
owled
ge a
nd e
xper
ience
and
gr
oupin
g of
farm
ers
H. E
stabli
shm
ent o
f a m
arke
ting
orga
nizat
ion
Agr
icul
ture
Mar
ketin
g an
d S
ales
P
roce
ssin
g
Acce
lerati
on of
the a
dapta
tion o
f Ty
up’s
agric
ultur
e to a
mar
ket
econ
omy
Early
imple
menta
tion o
f the
str
uctur
al re
form
of ag
ricult
ure a
nd
chan
ged
awar
enes
s of f
arme
rs an
d en
trepr
eneu
rs
Impr
oved
farm
ing te
chniq
ues
･
Quali
tative
impr
ovem
ent
･
Impr
oved
prod
uctio
n eff
icien
cy
･
Incre
ased
yield
s ･
Ne
w cro
ps
･
Huma
n res
ource
s de
velop
ment
Self-r
elian
t mar
ketin
g to
find
foreig
n cus
tomer
s ･
Im
prov
ed pr
ice
comp
etitiv
enes
s ･
St
abilit
y and
incre
ased
em
ploym
ent
･
High
er in
come
s ･
Inv
estm
ent in
creas
e ･
Ea
rly re
spon
se to
new
need
s ･
Inc
reas
ed co
nsum
ption
(of
agric
ultur
al pr
oduc
tion)
Adva
ntage
ous p
rocu
reme
nt of
input
good
s ･
Re
duce
d pr
oduc
tion c
osts
Exten
sion o
f the
Tyu
p mod
el to
other
area
s
Exp
ecte
d O
utco
mes
1-14
1-15
1-3 Selection of Pilot Project implementation areas
P/Ps implementation areas among the TSAs were evaluated using the following criteria:
• The level of contribution to the development of agriculture and the processing industry in the future
• The degree of possibility of applying and extending experiences from the P/Ps to other similar areas
• The degree of understanding about P/Ps and eagerness to implement P/Ps from local people • Initiative and Capability for P/Ps implementation by L/G or local leaders/residents.
As a result, Kara-Suu, Tyup and Naryn rayons were considered as Priority pilot project candidate areas and later P/Ps implementation candidate areas in the selected rayons (TSA) were appointed.3
1. Mady, Kyzyl-Kyshtak, Kattataldyk A/Os in Kara-Suu rayon 2. Naryn Rayon including Naryn city 3. The area including Tyup Rayon with neighbouring rayons and Karakol City
The Study Team focused on formulating high priority AP/Cs to be candidates for pilot projects in the selected areas.
Rayons and Priority Reason
Priority: A North-eastern part of Kara-Suu rayon （Osh oblast）
1) Kara-Suu rayon is one of most populous areas in the Republic with a population of
600,000 if Osh City is included. It is one of most historic places with a 3,000-year history and is typically Kyrgyz.
2) The rayon has developed intensive and diversified agriculture with some influence from
Uzbeks and as a result, farmers in the rayon have the most advanced agricultural technology in the Republic.
3) Main crops are cotton, wheat, vegetables and fruit. Livestock breeding is also popular in
the rayon. As the rayon has developed much diversified agriculture, it can provide many options to support agriculture and the processing industry as a P/P implementation candidate.
4) In the rayon, as several A/Os are designated pilot A/Os for the UNDP-supported Local
Governance Project, there are many farmers’ or village community groups, which have experience of donor projects. For this reason, it will be easier to implement P/Ps in the rayon than other rayons.
5) During the Study, the Study Team received 800 business plans (could be the base for
formulating AP/Cs) from farmers’ groups, village community groups or agro-processing enterprises. Compared to other TSA, local leaders and L/G had much higher expectations of JICA P/P and were very eager to implement P/P. It also shows that there are many capable local leaders so they can implement P/P by themselves.
3 AP/C Micro Finance for Agriculture and the Processing Industry (North-eastern part of Kara-Suu rayon) was also
initially selected as a candidate component for a P/P, but later this component was excluded from the scope of the P/P due to security and some other reasons.
1-16
Priority: A Tyup rayon (Including the neighbouring three rayons and Karakol City), Issyk-Kul oblast
1) As Tyup rayon has suitable pastures since the Soviet era, the livestock industry is well developed. Fruit orchards, such as apples, pears and apricots are also popular in the rayon, too.
2) The rayon is strategically located near Almaty, one of the largest consumer markets in Central Asia and if the road to Kazakhstan is improved, there is great potential to export quality agricultural and processed products.
3) The rayon has many agricultural and processed products such as dairy products, berries, or mountain honey etc. which are easy to add higher value to and could be export-oriented products.
4) Export promotion of agricultural and processed products is one of the most important themes for the regional economy including the rayon and the neighbouring three rayons and Karakol city. By establishing a Marketing Services Centre and a Trading Company proposed as AP/Cs in Chapter 2 of the Interim Report, it will be absolutely necessary to support farmers and agro-processing companies so that they can produce high quality products, which can satisfy market needs, and to explore/find new markets
5) Issyk-kul Lake is famous as an international resort. In summer time, due to the large numbers of foreign tourists, there is a large potential market for agricultural and processed products. The development and promotion of agriculture and the processing industry that will be able to supply the tourism sector in the region with high quality food is also an important theme for the Republic.
Priority: A Naryn rayon, Naryn oblast
1) The rayon is 2000 m above sea level and situated about 350 km from Bishkek and 200 km from the Chinese border. To reach the rayon from Bishkek, it is necessary to cross the Doron Pass, which is 3,000m above sea level. Though the rayon has geographical problems, livestock breeding has been a popular industry for a long time and wheat or potatoes are planted on agricultural land.
2) Almost every farm owns and breeds dairy cows, sheep or goats. The number of livestock in the rayon dramatically decreased after independence in 1991 and livestock numbers need to be increased urgently.
3) In Naryn town, the rayon centre, the existing meat processing plants are bankrupt. Currently there is a small-scale slaughterhouse and a primary wool/cashmere-processing factory. As the demand for processing livestock animals is limited, it still does not have favourable conditions for increasing the number of livestock.
4) The rayon is an area with more than 600,000ha of pastures and has kept the Kyrgyz traditional nomadic culture. The development of Naryn oblast including the rayon, through its livestock industry is one of most important themes for national development laid down in the CDF to 2010.
In addition, it would be absolutely necessary to support the rayon because of the massive disadvantage in transporting goods and the highest percentage of the poor among the TSA.
5) During the JICA Study, about 60 business plans to be the base for formulating AP/Cs were submitted by farmers and peasants, village community groups or agro-processing enterprises. As a result, the expectations from JICA P/P and the eagerness to implement them are very high in the rayon.
1-17
3) Third phase of the study
The fourth field study, which started the third phase of the study, included final selection of Pilot Project (P/P) implementation areas and AP/Cs for the P/P (finally selected 3 pilot projects) and the preparation of implementation plans for the selected pilot projects. Progress Report (2) was prepared after completion of the fourth field study. Implementation of the 3 pilot projects started in July 2005 and interim results of P/P implementation were reported in Progress Report (3) and Progress report (4). Detailed results of study are reported in Chapter 2.
(1) Selection of 3 Pilot Projects
The following 3 Pilot Projects from the selected high priority AP/Cs were chosen in consultation with MAWRPI, JICA, local governments and farmers in February 2005 during the 4th field study and the P/P implementation plan was prepared.
• Mady Cotton Demonstration Farms, Kara-Suu Rayon • Sheep Fattening Project, Naryn Rayon4 • Creation of a Marketing Services Centre, Tyup Rayon
4 It was originally the Income Generation for Livestock Farmers through Improving the Meat Production and Marketing
System and redefined as the Sheep Fattening Project after discussions with farmers and rayon administrations during this 5th field study (July-September 2005).
2-1
Chapter 2 Implementation of Pilot Projects
Reason for implementing the 3 Pilot Projects
The study team as noted in previous sections, implemented detailed studies in 5 rayons as the target study areas and formulated a total of 31 Action Plan Components (AP/C) as action plan for resolving issues relating to the promotion of agriculture and the various regions. In formulating the AP/C, those that are not likely to be implemented, such as those requiring large investments, have been excluded and projects that require small capital inputs and technical assistance have been selected. The principle intent behind the AP/C is to produce certain assessable results and provide concrete assistance to the promotion of agriculture and processing industries in Kyrgyzstan by utilizing the experience gained from this pilot project in other regions facing similar issues. This will be achieved by:
1) Introducing management methods suitable for resolving the issues
2) Concentrating the creativity and efforts of farmers and enterprise managers and developing the related human resources
3) Implementing technical assistance through using the knowledge of the specialists in the study team in relation to 1) and 2) above.
In selecting the Target Study Areas and the implementation regions for the pilot projects and the target themes, in addition to classifying the features of Kyrgyz farming by regions, emphasis was placed on maximizing the efficacy of the limited inputs and technical assistance that the JICA study team is able to provide to resolve the many important issues currently being faced by the agricultural and processing industries in Kyrgyzstan.
Important issues that the study team understands that require attention include the following: 1) Principally in the southern regions improve the productivity and quality of farming to maximise the
use of the limited farming land area that leads to enhanced incomes from farming. 2) Raise farming incomes by improving the productivity and quality of edible sheep meat throughout
Kyrgyzstan 3) Break away from the dependency on sales through intermediaries and acquire and develop own
marketing capabilities and change production and sales to meet the needs of the consumers. In addition, through this process improve the quality of produce and processed goods, thus enhancing the sales price and raising the incomes of farmers and processors.
The above-mentioned issues selected by the study team are only the tip of the iceberg in terms of the issues confronting farming in Kyrgyzstan, but the study team has identified these issues as being some of the most important in qualitatively transforming farming and processing in Kyrgyzstan. The study team have also taken into consideration the features and differences between the farming regions in the northern and southern regions and the importance of promoting the livestock industry in reducing poverty in Kyrgyzstan and have taken into account the wishes of the residents and the administrations of each region in selecting the 3 pilot projects that are currently under way.
2-2
From these perspectives, Pilot Project “the Cotton Demonstration Farming in Mady” identifies cotton, an industrial crop representative of the southern region farming, as the target and is focused on challenging the issue raised in 1) above. By the project achieving a certain level of results in productivity and quality improvements, even better results can be expected in other regions that are more suited to cotton growing and the transfer of the experience of the project to other regions is expected to result in achieving the results of the project implementation, which are raising overall regional income through increasing the income of cotton farmers and increased exports.
Pilot Project “The Sheep Fattening in Naryn”, addresses improving the productivity and quality of the livestock industry in Naryn where under current conditions it would be difficult for other major industries to develop, is a major issue and is being implemented as one of the attempts to address the implementation of efficient management of livestock farms.
Pilot Project “Creating a Marketing Services Centre in Tyup village” is being undertaken with the aim of accelerating the pace of transition to a market economy of production, quality and sales breaking away from the dependence on intermediaries in the Issyk-Kul Oblast in Tyup where conditions are considered to be workable from the point of view of fostering the marketing and selling capabilities, which are issues common to all Kyrgyz agriculture and processing industries. The expected result of the project is to achieve results that can be applied to neighbouring oblasts, such as Chui and near border areas where more favourable conditions prevail.
The above-mentioned three pilot projects have short implementation periods and are being implemented with the aim of promoting agricultural structural reform that includes promoting farming in Kyrgyzstan and changing farmers’ awareness, promoting processing industries and raising the incomes of the regional people, including farmers.
2-3
2-1 Mady Cotton Demonstration Farms Pilot Project (Project Area: Mady A/O in Kara-Suu Rayon, Osh Oblast)
2-1-1 Background of selection of the Pilot Project The survey was made to see the actual development needs in Kara-Suu Rayon, and around 800 replies from local farmers, farmer groups, local government and so forth for the Action Plan Components were collected. Resulting from the survey, most needs were related to increasing income of farmers by utilizing some measures necessary for the improvement of their agricultural activities, which could be summarized in the three pillars as mentioned below. - Live-stock breeding: Needs for promotion of animal husbandry is very high since many small groups of
farmers have their own plans to increase animals. But they require funds. - Cotton-growing: Cotton is one of the main crop items as well as wheat in the rayon. Demand is
very high since higher earnings are expected by cotton cultivation. - Mini-processing: Promotion of small scale processing such as flour milling, oil extraction and
processing dairy products. Based on the result of the above survey, the Study Team formulated the following seven action plans with brief explanations for Kara-Suu Rayon considering multiplication effects in development potentialities and possibility of future expansion to other regions. Those seven action plans were categorized into three as follows. A) Agriculture and Animal Husbandry
i) Expansion of Cotton Production: Cotton is main income source of local farmers. ii) Introduction of high quality animals and revival of breeding farms: Introduction of higher
productivity mechanism generates income. B) Processing of Agricultural products and Animal Husbandry Products
i) Assistance for small scale processing: Promotion of small scale processing can improve the financial status of local people and be possible to change the situation from home consumption to export.
ii) Modernization of existing factories and promotion of export: Modernization of existing factories contributes to raise the income level realizing value added products.
C) Agriculture and Agricultural Processing (A +B)
i) Promotion of farmland integration and grouping farmers: To expand an efficient farming, integration of small farmland and organizing farmers’ cooperatives shall be promoted.
ii) Promotion of inward investment and exports: Foreign capital shall be introduced to encourage agriculture sector and expected to export.
iii) Agricultural finance: Micro financing facilities will be necessary for improving the financial situation of both farming and processing.
Among seven plans mentioned above, considering the current agricultural situation of the region and important factors like readiness and cost of plan, possibility of propagation to other regions and magnitude
2-4
of contribution to obtaining foreign currency, the Expansion of the Cotton Production was selected as pilot projects.
(1) The Characteristics of Cotton
In Kyrgyz, most crops grown are for home consumption. However, the cotton in Karasuu Rayon is a cash crop, which is very important for poverty reduction as well as national economy. On average, the cotton yield in Osh Region amounts to about 2.5ton/ha of seed cotton inclusive of seed, equivalent to about 880kg of lint, which is the highest in Central Asia in spite of comparatively low cotton producing county at a international level. However, its yield has been stagnated for about more than 20 years contrary to other cotton growing countries except for African and CIS members. The cultivated species is upland cotton that has middle length of cotton fibre without good reputation on the quality due to its poor post-harvesting control such as no seed cotton collecting system based on its lint quality. As a result cotton sector does not yet exert its potential power for economic development in the country.
(2) Constraints for Cotton Sector
In accordance with the studies done by the JICA Study Team and field trials under IFDC (International Fertilizer Development Center) with the financial assistance of USAID, the following constraints for cotton sector are observed:
• Geographical Location: − Scattered small cotton farm plots are extended to mountainous hilly areas; and − High altitude limits expansion and yields of cotton due to low temperature in spring and
autumn.
• Cultivation: − Official extension system does not exist; − Breeding and seed multiplication systems do not work well; − Old mixed seed are sown without regular renewal; − High quality fertilizer of NPK are not applied due to no availability in local markets; − No appropriate mechanized farming is practiced due to shortage and obsolescence of
tractors and their implements; and − Low yields result from low temperature at sowing and harvesting,
• Quality : − No appreciation of varietal variation on lint quality ; − Secretion of insect on lint and lint colouring at a flowering stage; and − Mixture of foreign materials in lint and lint colouring due to poor ginning factory
management
• Marketing : − Low bargaining power for farmers due to lack of farmers organization; − Small production amounts from individual farmers; − No quality control based on cotton variety; − Lack of careful quality control at ginnery; and − No development of cotton downstream
2-5
(3) Advantage of Cotton Cultivation in Kyrgyz
In spite of small production scale in Kyrgyz cotton, the yield is the highest among Central Asian countries and is higher than ones in India and Pakistan that are old cotton producing countries. These seem to attribute to the below reasons:
− All cotton fields are irrigated farms; − Damages from high saline content of soil and water and high ground tables are not often
found in irrigated land; − Pest and dieses are killed during the extremely cold winter; − Low rainfall amount during cotton season limits occurrence of pest and diseases; − Burning cotton plants for coking after harvesting contains the occurrence level of pest and
disease in a following season; − All cotton varieties are upland cotton that has higher yield potentials than long staple ones;
and − Along with the introduction of liberalized economy, the farm lands are distributed to
individual farmers, which motivated the farmers to enhance cotton productivity.
(4) Cotton Chain
Cotton industry composes of long chain from cotton planting in field to making garments via seed cotton harvesting, collection and transportation of seed cotton, ginning, lint export, spinning, looming and colouring. Cotton is an international commodity, of which prices are subject to fluctuation in international market. Therefore, in order to attain the maximum benefits for poverty reduction and the national economy from cotton, effective and efficient measures should be taken up in consideration of all constituent chains. However, due to the given mandate of the pilot project over the period of two years, the Pilot Project focused on technical transfer of sustainable cotton farming systems at demonstration farms belonged to farmers. Meanwhile, the Pilot Project was implemented in cooperation with other donors extending a wide range of technical assistance programs in Kyrgyz agriculture sector, with which multi-phased issues related to poverty reduction were taken up to enhance the farmers’ share in cotton values. For example, GTZ was consulted for organizing farmers. The Study Team had close coordination with USAID Input Supply Project in Fergana Valley and Water Users Association Project.
(5) Objectives of Pilot Project
• JICA introduced the Pilot Project for cotton production at Mady Cotton Demonstration Farms located in Karassu of Osh Region. At farm levels, the Pilot Project intended to introduce sustainable cotton farming technologies for small farmers, which were already verified by preceding experimental tests at trial basis in the country and which was a state of art technology proved in other countries under similar environmental conditions. The Pilot Project took up the following subjects:
− Application of compost: This will help farmers continue cotton farming at a sustainable basis along with introduction of crop rotations. In general, compost materials are used for domestic purpose for example, cooking and heating in winter. Hence, crop plant residuals are not resolved into soil, generating low soil fertility and destructing soil structure. It is widely accepted that without organic substances, soil fertility would not be maintained only by application of chemical fertilizers, inducing pest and diseases to a level beyond the economic threshold;
2-6
− Covering sown seeds by plastic sheet: This will assist cotton farmers in reducing a cotton growth period resulted from higher soil temperature at an early vegetative growth period. Since Osh is a marginal area for cotton cultivation due to rather low temperature at the cotton sowing season in April and May and the cotton harvesting season at late October, the cotton yields could not reach to their genetically expected level of yields. Moreover, the coverage of plastic sheets also contributes to controlling weed and preventing evaporation of soil moisture until the first application of irrigation water. This technology has been introduced to selected farm plots from cotton farming in China where the weather condition is also a main limiting factor to improve the cotton yield;
− Introduction of high quality seed: Since the 1980s, new cotton varieties have not been released in the country. It is said that the cotton varieties are inferior to ones in other counties with respect to yields, pest and diseases resistance, and lint quality. In order to cope with cold issues in sowing and harvesting season in Osh Region, early maturing cotton varieties were identified and introduced from neighbouring countries and Turkey with the assistance of USAID/IFDC;
• Application of high quality fertilizer: In the country, nitrogen fertilizers are available in markets
that are smuggled from Uzbekistan. These fertilizers do not have ingredients labels on effects
and efficiencies for crop growth. Moreover, in local markets, potassium and phosphorus
fertilizers are not sold so that only nitrogen fertilizer can be applied to their fields, bearing less
cotton balls than the numbers of blossoming flowers. In order to overcome fertilizer issues, the
Pilot Project utilized the experience and marketing channels developed by IFDC to ensure
nutrient wise well-balanced supply of high quality fertilizer;
• Introduction of Integrated Pest Management (IPM): It is widely accepted that cotton cultivation
requires intensive agro-chemicals application to prevent pest rampancy under traditional cotton
cultivations. Therefore, small farmers are sometimes obliged to give up cotton cultivation due to
the high cost of pest and disease control. In Osh, IPM has not been widely practiced due to firstly,
no awareness of the importance of IPM and secondarily the low level of the inputs. Contrary to
the present low outputs, about 3.5 ton/ha ton of raw cotton would require higher fertilizer
application, causing frequent pest and diseases occurrences. Therefore IPM should be introduced
to the Pilot Project to prevent heavy pest attacks and to ensure sustainable cotton cultivation at a
reasonably high cotton production level;
• Soil character and its appropriate cultivation: The existing soil condition gives cotton farmers
basic criteria for cotton cultivation, which are soil structure, PH level, humus contents, mobile
forms of phosphorus and potassium, saline content, ground water level, etc. The Pilot Projects
analyzed soil samples in farm plots in the demonstration farms prior to cotton cultivation, to
maximize efficacy of cultivation practices such as fertilizer application;
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• Small scale cotton farming: The small scale cotton farming system should be demonstrated to
assess the potential production and its financial viability of cotton at ordinal farms holding less
than 1ha on average. For that purpose, the sustainable cotton farming should be practiced based
on IPM composing of crop rotation, application of organic compounds, plastic sheet mulching
on sown soil along with high yielding varieties and sufficient amounts of appropriate
fertilizers; and
• At the end of the demonstration, it was expected that a standard cotton cultivation manual would
be prepared, which would be utilized by rural poverty in the outside of the Pilot Project area.
(6) Project Period The Demonstration should be extended over the period of two years from the 2005 crop year to the 2006 crop year. Upon completion of the JICA pilot program, the participants could continue sustainable cotton farming in the consequent years based on experience and lessons learnt from the Pilot Project.
(7) Project Stakeholders
• Participants The participating farmers promised to take following responsibilities:
− The farmers should allocate farm plots suitable for irrigated cotton farming; − The participants should pay all the costs to be incurred in their fields, including labours,
inputs and hiring necessary machinery and equipment; − Upon completion of cotton harvest, the participants should repay the amounts financed by
the Pilot Project; − The farmers should accept the practice of sustainable cotton farming; − The farmers should join farmers group; − The farmers should follow the implementation plan of the Pilot Project; and − The farmers should take all responsibilities on his cotton farm management.
• JICA The JICA Study Team is in charge of the following matters:
− The preparation of the concept of the demonstration farms; − The preparation of the implementation schedule; − Arrangement of quality seeds, fertilizer and pesticide, etc.; − Arrangement of training and extension of sustainable cotton farming; − Monitoring and evaluation on the Project implementation; − Required all inter-agency coordination among parties concerned with cotton sector; and − Financial arrangement
• Cooperating Institution: International NGO In Osh, a numbers of International and local NGOs are very active in particular in rural development and agriculture sectors. Among other International NGOs, IFDC was engaged in reconstructing the input supply services sector in the Fergana Valley where Osh is included, that are financially supported by USAID. IFDC created an association of private entrepreneurs (called AAK, Kyrgyz Association of Agriculturist), to provide the agricultural inputs and input information with small
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farmers. In line with input supply, IFDC introduced exotic cottonseeds from abroad and tested them at small plots to assess their productivities to cotton yields. Therefore, the JICA Study Team established close and continuous contacts with IFDC to exploit their experience and lessen learnt for the input supply services, which ensured smooth project implementation in avoiding needless confusion and failure. IFDC was expected to assist the JICA Team in arranging the following matters:
− Acquiring high quality cotton seeds including exotic ones; − Ensuring delivery of NPK fertilizer that are not available in local markets; − Providing new cotton technology; and − Arranging cotton study tours for participants
• Cooperating Institutions: National NGO TES Center, originated from the Faculty of Agriculture, the Osh State University, was selected to execute filed operations, which was highly evaluated for foreign assisted agriculture projects as a local counterpart. TES Center is specialized for farmers training and extension, taking up most difficult tasks to contact small farmers for improving their livelihoods through enhancing crop production. Based on their transparent business operation and cost effective project management in addition to their high professionalism in the country, the JICA Study Team would be supported by TES Center following matters:
− Extension and training for sustainable cotton farming; − Management and supervision of cotton demonstration farms; − Arrangement and coordination to supply necessary inputs on time; − Data collection and analysis
2-1-2 Activities and Budget Allocation for Pilot Project
(1) Project Activities The Pilot Project has following activities:
• The preparation of demonstration farms for the Pilot Project; • Introduction of monitoring and evaluation; • Technical assistance for sustainable cotton cultivation; • Secure and distribution of necessary inputs; and • Provision of non-collateral group guaranteed credit for inputs
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(2) Project Cost The project cost is shown in the Table 2-1-1.
Table 2-1-1 Project Cost
(3) Implementation Plan
The implementation period is two years as showed in the table 2-1-2.
Table 2-1-2 Implementation Schedule
Items Items First Year Second Year Total
Training & On-site Supervision 11,000 19,000 30,000 Training & Extension Study Tour ― 8,400 8,400
Cotton Specialist 10,000 12,000 22,000 Consultant
M&E 1,400 1,500 2,900
Financial Assistance Inputs supply and cash expenses 10,000 21,000 31,000
Total in US$ 32,400 61,900 94,300
Item 2005 2006 Reference Compost New Variety NPK fertilizer
Mulching with Plastic Sheet
IPM Intro
duct
ion
of
New
Tec
hnol
ogy
Sustainable Farming New Technology Farming Practices Field Supervision Sustainable Farming Seed production and Sales Tr
aini
ng a
nd
Exte
nsio
n
Soil Test Compost Variety Fertilizer Plastic Mulching Sustainability
Dem
onst
ratio
n of
C
otto
n Fa
rmin
g
Seed Production From 2007, if farmers wish.
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2-1-3 Project Design Matrix
The following design matrix was prepared along with the participating farmers prior to the project implementation in January 2004.
Table 2-1-3 Project Design Matrix
Narrative Summary Objectively Verifiable Indicators
Means of Verification
Important Assumptions
Overall Goal: The project will contribute to poverty reduction in rural areas and due to the increased high quality of cotton lint, the local economy will be enhanced.
1. Number of participants2. Farm income analysis 3. Assessment of total
benefits including raw cotton ball, lint, cotton seed, oil and supporting services
1. Monitoring of the
project by the JICA Study Team
2. Mid-term and Post Evaluation by the Steering Committee
1. The project would be
implemented as planned.
2. The local supporting group could fulfil their TOR as requested.
Project Purpose: The project intends to introduce a sustainable cotton farming system, which will double the cotton yield of the present one, resulting in reduced rural poverty
1. Farmer’s acceptance of
sustainable farming 2. Total net income from
cotton cultivation Expansion of sustainable cotton farming
1. The project will
have all records on support supplied to the farmers and their reaction.
2. Farmers groups will record their farming practices.
1. All necessary inputs
and guidance would be provided.
2. Farmers' groups will accept the guidelines given by the JICA Study Team.
Output: Participants will benefit from their yields and incomes. Neighbouring farmers will accept the sustainable cotton farming system in accordance with the results gained on demonstration farms.
1. Raw cotton yield 2. Higher net income
from cotton farming
1. Yield record 2. Cotton farm budget
analysis
1. Previous yield
records are kept. 2. Participants should
record all expenses and yields.
3. The project will give bookkeeping and farm management guidance.
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2-1-4 Outline of JICA Cotton Pilot Project in the First Year (1) Introduction While the national security issues were serious concerns among stakeholders with JICA Pilot Project, the mutual trusts between the sub-contractors and beneficiaries could ensure smooth implementation of the Pilot Project. Many issues for project implementation were solved by the effort of TES Center even though the Study Team was not able to visit the Project area in 2005. (2) Outline of the Demonstration Farm in 2005 The Table 2-1-4 shows the outline of the Demonstration Farm in 2005.
Table 2-1-4 The Demonstration Farm in 2005
Planning Result ReferenceArea 10 ha 10 ha Farms Groups 5 groups 5 groups Functions should be assessed.Farmers 10 families 10 families Variety 5 5 No clear difference in yields
Mulcting Transparent plastic sheets Transparent plastic sheetsFertilize NPK NP (K was not available)Pest control IPM including 3 chemical applications IPM plus one chemicalsHarvesting Hand picking Hand pickingCredit Interest 18％per year, Group Guarantee Complete repayment
Sustainable farming was
accepted. Revolving Fund
could be used for private
extension services.
Marketing Seed-cotton to factories Partially lint sell Need to study Sub-contract US$ 32,300 US$ 31,432
(3) Outline of Results in 2005
The Table 2-1-5 shows the farm budget analysis on the JICA Demonstration Farm and the adjacent outside farms.
Table2-1-5 Farm Budget Analysis per ha in 2005 With Project Without Project Yield（t） 3.3 2.1 Gross income（$） 1,370 900 Production Cost（$） 650 540 Net income（$） 720 360
In addition to the numerical results shown in the Table 2-1-5, the followings were assessed in the Demonstration Farm:
• A number of farmers are interested at the Pilot Project, expressing their wish to join the second year in 2006;
• High quality inputs such as fertilizer and seeds were secured and the supply system were established in cooperation with USAID/IFDC;
• The application of IPM (Integrated Pest Management) contains the hike of inputs cost (chemicals);
• The majority of the participating farmers was able to realize the importance of a sustainable farming system to enhance production and its profit;
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• Non-collateral credits for inputs were fully recovered under group mutual guarantee, suggesting the possibility of introducing revolving funds for sustainable cotton cultivation;
• Private extension services would be introduced for small farmers to continue cotton based on sustainable farming technology and revolving funds; and
• Accordingly, TES Center would be able to continue private extension services for cotton farming in the future.
(4) Issues
In the course of the JICA Pilot Project in 2005, the following issues were identified and should be carefully assessed in the 2006 crop year: • Participating farmers should understand the importance of manure application to cotton farms
even trial basis; • In addition to N/P fertilizer, K fertilizer should be applied on cotton farms to ensure attainment
of healthy cotton plants, resulting in less pest and diseases occurrences; • The repeatability of successful sustainable cotton farming should be confirmed; • The averaged yield of 3.5ton per ha should be put into practice including in newly joined farmers
in 2006; • IPM should be re-tested its advantage and if necessary, IPM adopted in 2005 should be modified
in accordance with available information and materials in fields; • Extension staff of TES Center should be given intensive training for cotton farming; • TES Center should study on how to introduce private cotton extension services by itself without
additional foreign assistance upon completion of the JICA Pilot Project; • In order to enhance farmers’ net income from cotton cultivation, the cotton chain from seed
cotton production to lint marketing should be assessed; • In light of the surveys on cotton chain, the strengthening farmers groups should be assessed; and • The experience and lessons learnt from the JICA Pilot Project should be widely shared with
persons concerned with cotton chain in Kyrgyz at workshops to be organized at Osh and Bishkek.
2-1-5 Outline of JICA Cotton Pilot Project in the Second Year
(1) Focus
In light of attainments and issues identified in 2005, the selection criteria for the JICA Demonstration Farms were following in 2006:
• Participating farmers should be selected based on the following standards: − Farmers should accept the IPM based cotton cultivation guideline prepared by TES Center; − Farmers should manage their cotton farms under the supervision of TES Center, using
genuine agriculture inputs supplied by cooperating institutions (USAID/IFDC/AAK); − In the case of no financial resources to purchase the agriculture inputs, short term
non-collateral credit under group guarantee should be accepted with a monthly interest rate of 1.5%;
• As much as possible, geographically diversified cotton farms should be taken up to prove the viability of sustainable cotton farming systems for small farmers; and
• In addition to Mady where the altitude ranges between 950 to 1,100m above mean sea level, the most appropriate cotton farms should be selected to prove potential cotton production under
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rather warm conditions in the spring and the autumn.
(2) Targeted Indicators with the Demonstration Farm in 2006
The targeted indicators for 2006 are listed in the Table 2-1-6 in comparison with the results in 2005.
Table 2-1-6 Targets in 2006
Indicators 2006 2005
Location Mady and Aravan Mady
Area（ha） 50ha 10ha
Farmers Group 5 groups 5 groups
Farmers 50 families 10 families
Target Yield（t/ha） 3.5 3.3
Seed-cotton production 180 33
Gross income（＄） 73,320 13,400
Net income ($) 39,500 7,300
(3) New Efforts in 2006 The JICA Pilot Project was highly evaluated in 2005 by a wide range of persons concerned with the cotton sector. Hence, in 2006, challenging efforts were extended in the Demonstration Farm to further strengthen the ground of sustainable cotton production as follows: • Firstly, under diversified geographical conditions, the Demonstration Farms were executed in a
wider acreage than in 2005, which would provide objective evidences for sustainable cotton farming to cover not only Osh Region but also other enabling cotton growing regions in the country in the future; and
• Secondly, in consideration of the termination of JICA Pilot Project in March 2007, self-initiated follow-up actions should be proposed in order to keep a momentum of JICA Pilot Project.
To gain successful results for the above two challenges, the Table 2-1-7 indicates items to be paid attentions to enforce sustainable cotton cultivation.
Table 2-1-7 New Efforts in 2006
Objectives Items Efforts
Strengthening On-Job Training Employment of Field Supervisor
Strengthening Basic Skill Field Days & Desk Teaching
Strengthening Field Supervisors Training of Field Supervisors
Increased Areas
and
Beneficiaries Upgrading Extension Officers Overseas Study Tours
Upgrading IPM Resident Cotton Specialist
Cotton Manual Consultation with Other Donors
Establishment of Extension System Introduction of Private Extension Services
Establishment of Revolving Funds Strengthening Credit Union
Increased Farmers’ Share Studies on Post-harvesting & Marketing Study
Strengthening Farmers’ Self-motivation Study on Farmers Organization
Extension of JICA Experience Workshop (Osh)
Establishment of
Sustainable
Cotton Farming
Introduction of Cotton Policies Workshop (Bishkek)
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(4) Implementation
As the Demonstration Farm was supervised by TES Center in 2005 on sub-contract basis, TES Center will manage and supervise the Demonstration Farm as a sub-contractor in 2006.
(5) Staff with TES Center
In 2006, TES Center lined up the following staff: − Project Coordinator: Australian National, Cotton management specialist; − Chief Agronomist; − Agronomist/Entomologist; − Agro-Economist; − M&E Expert: Part-time assignment from AAK; − Bio-Lab Specialist: Part-time assignment from Osh Bio-Lab; − Field Supervisors: One for each farmers group selected from the member farmers; and − Administrative Assistant
(6) The location site of the Demonstration Farm
In 2006, Aravan was also selected in consideration of its low lying altitude in the height of about 600m mean sea level in addition to Mady where the Demonstration Farms were managed in 2005. This is because due to its low altitude in Aravan, the better cotton could be expected than in Mady.
(7) Farmers Groups and their location
Three farmers groups in Mady and two in Aravan were formulated, covering about 50ha.
(8) Cotton Cultivation
• The planted area: Cotton was planted on 50ha in Mady and Aravan as scheduled;
• Sowing seeds: While the best sowing time was the end of March in low lying Aravan because of rather high temperature in the spring, seed was actually sown without mulching in April 18 because of delayed field arrangement and no delivery of plastic sheets. In Mady of highland, seed was sown under a plastic cover on April 23, showing healthy and favourable growth;
• Compost application: While NPK fertilizers were applied properly on time, compost was applied only at the two farmers groups in Mady due to lack of materials such as animal dugs and plant residuals. The farmers applied compost on 0.05ha per 1ha of the demonstration farm, with the amount of 20ton per hectare;
• Inputs Supply: Fertilizer (NPK) was procured and distributed by the Pilot Project. The seed varieties were selected and distributed with the advices of TES Center without serious problems, however, due to farmers’ preference Fergana 3, which was traditionally planted, became a main variety in the Aravan area. Contrary to it, Mady farmers chose Kyrgyz 5 in light of the high yield record in 2005 among five varieties. At the time of sowing seed in March 2006, the price of plastic sheet hiked up to 70 Som per kg from 35 Som in 2005. Moreover, TES Center needed to make a lot of efforts to secure the necessary amount of it in markets. In particular, since the participating farmers should shoulder at the incoming harvesting season the increased cost as repayment of inputs credit, TES Center needed to have careful consultation and discussion with individual farmers to get their understanding. While the Demonstration Farms are implemented in coordination with three agencies namely TES Center for extension, AAK for input Supply,
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and Agro-Kredit Plus for credit sanction, TES Center needed to additionally play the most important and difficult job, which is inter-agency coordination to implement each components under different agencies as planned. Upon completion of the JICA Pilot Project, it is sure for TES Center to acquire the know-how for extension and project coordination on sustainable cotton farming. However, in order for TES Center to continue their extension services effectively, farmers’ self-initiated actions are highly expected to overcome varying problems accompanied by cotton farming in fields year by year or month to month. Otherwise, without donors’ financial support, TES Center would eventually face difficulty in recovering costs on extension services. In addition, even though all parties concerned with rural sector recognize the difficulty in organizing farmers, professional survey and assessment should commence to strengthen the cotton farmers groups, which are now only a mere bridge between TES Center and the participating farmers to convey technology, inputs and credit;
• The high aphid density was observed at the vegetative stage in some farms but in light of IPM, it was favourable because baits were multiplied for predicators. The cotton lint would not be stained by aphids due to no cotton ball opening at this stage;
• In accordance with the filed survey at the end of August, good harvesting as expected in general. The first harvesting had commenced on August 25 in the earliest farm. All harvesting were expected to complete by the end of October;
• Because of unusual high temperature in this year, the cotton farms, which did not get irrigated properly, already stopped bloom, dropping flowers prior to formulating cotton balls. This will result in sustained cotton yields compared with the plan;
• In the demonstration farms, pest and disease management is under control of IPM, showing no serious damages on cotton plants. Outside of the demonstration farms, about 50 to 60 % of cotton plants suffered from pest and disease;
• The majority of cotton farms fell in harvest between the middle of September and the end of October. However, due to warm temperature even in November, some farmers left cotton in fields to wait further cotton ball opening;
• At the end of October, it was of view that the expected yield would be attained even though some farms suffered from high temperature damages due to lack of proper water management;
• Since Mady farms were managed in accordance with the cotton cultivation criteria made in 2005, the yields in high lands would be comparable to the one in the low land of Aravan; and
• It was recorded that small plots less than 1ha of the demonstration farm were affected by no IPM applied cotton farms, showing indefinite pest and disease management.
(9) Harvesting
• Weather condition In this year, high temperature continued from the time of land preparation in March, seed sowing in April, vegetative growth in May to July, flowering in July and August, and to harvesting in August to November. It seems that high temperature was favourable for cotton, which is grown in the marginal lad due to rather high altitude. However, the high yield oriented JICA Pilot Project did not necessarily result in favourable records. Due to continuous high temperature, aphids frequently
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appeared earlier than the last year. Moreover, farm land often got dry up by high temperature, requiring careful surveillance of the plant condition and irrigation water supply. In the cotton field where irrigation water was not appropriately applied, the temperature of the plant community went up to the level that inhibited the activity of natural predators. In the middle of August, hay cutting coincided with the heavy water demand period of the cotton farms, incurring insufficient water application resulting in floral abscission prior to cotton ball formulation. TES Center encountered unexpected adverse conditions that did not appear in the 2005 crop but overcame these difficulties at the end of cultivation, attaining the targeted yield. • Participating farmers and the size of demonstration farms
Table 2-1-8 shows the data regarding the yields and production in 2006. The total harvested area amounted to 50.25ha. In Mady, 32 farmers belonged to three farmers groups cultivated 41ha of cotton fields and in Aravan, 16 farm households cultivated 9.25ha in two farmers groups.
• Yield and Production
In total, the average yield reached to 3,458kg/ha, being 3.5 ton in rounding off. In Mady, the averaged yield amounted to 3,468kg, being 3.5 ton/ha in rounding off while in Aravan, the averaged yield was 3, 440kg/ha. The total production was about 174 ton that was almost equal to the targeted figure.
Table 2-1-8 Summary of Cotton Production in 2006
Area Group Name Farmers No Size (ha) Yield (kg) Production (kg)
Mady Mol-Tushum 15 17.00 3,460 58,820
Alga 10 14.00 3,461 48,454
Kelecheck 7 10.00 3,468 34,680
Total 32 41.00 3,462 141,954
Aravan Omad 6 4.8 3,425 16,440
Berek 10 4.45 3,457 15,384
Total 16 9.25 3,440 31,824
Total 48 50.25 3,458 173,778
Sources: TES Center
Table 2-1-9 Effect of Manure Application on Cotton Farm
Without Manure With Manure
Sample No Size Yield Production Sample No Size Yield Production Group
Framers No ha kg/ha kg Farmers No ha kg/ha kg
Mol-Tushum 15 17 3,460 58,800 9 0.5 3,790 1,895
Keleecheck 9 10 3,468 34,680 7 0.45 3,636 1,636
Total 26 28 3,462 93,480 16 0.95 3,717 3,531
Sources : TES Center
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• Compost Application Two farmers groups applied compost as shown in 2006 (Table 2-1-9). The yield increased by 0.2ton/ha on average from 3.5ton to 3.7ton. Due to different sample numbers and sizes between the two treatments, it is no clear that compost has significant meanings on yield. Therefore, the yield distributions of the two treatments are shown in the table 2-1-10, which have distinctive distribution patters between the two. As a result, we could say that the compost application has significant effects on cotton yields. These data were collected at farmers’ fields, and if we have a trial in an experimental station, the result could be more obvious than this.
Table 2-1-10 Yield Distribution by Manure Application
Yield Range (ton/ha) 3.2～3.4 3.4～3.6 3.6～3.7 3.7～3.8 3.8～4.0 4.0～4.2 4.2～4.4 Total
Without No of Farm 5 16 1 1 23
Size(ha) 7 18 2 2 27
With No of Farm 6 1 3 4 1 15
Size(ha) 0.4 0.05 0.15 0.3 0.05 0.95
Sources : TES Center
Note, No: Number of Farmers,
Size: Total farms size belonged to the falling range(ha)
(10) Demonstration Farm Related Information
• Farm machinery: At the stage of ploughing and land levelling, there was no report on shortage of farm tractors; however, at the time of sowing seed together with mulching sown soil with plastic sheets, the seed planter did not work properly, sowing too many seed amounts of about three times more than required. The farmers was obliged to thin unnecessary germinated seedling by hands．However, since one progressive farmer intends to purchase a seeder, the problem would be solved for the 2007 crop.
• Credit Union: Agro-Kredit Plus was in charge of the fund management for inputs supply that fully recovered the principals of the 2005 lending by the end of February 2006 and collect monthly interest (1.5% of monthly rate). The Union earned net profit of US$400 after reduction of deposit for bad due in the future. The union is strictly managed so that we can not imagine disappearance of the deposited fund. Every six months, USAID sends a charted public account to help the union improve the financial management, However, the followings should be assessed:
− Project accounts should be opened by project to clarify the financial condition of each project．
− The most of lending are delivered for crop loans from the spring to the autumn, leaving funds untouched in the winter. The lending in the winter should be identified to enhance profits.
− The rationalization of the management is required in particular for field appraisal. This is because all clients are beneficiaries of TES Center whose repayment abilities were already assessed prior to guarantee.
− The free time created by the rational management should be utilized to identify profitable small scale farming along with TES Center.
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• Farmers Organization: Along with the collapse of the Soviet Union, collected farms disappeared, creating small farm management based on family. The Government as well as donors are very keen to introduce farmer’s cooperatives or associations to improve field efficiency and to upgrade farmer’s income. However, the word of cooperation make farmers recall non-free, compulsory works forced by then leaders in the Soviet time, as a result, farmers could not work well in cooperating manners in many cases without blood relationship. TES Center organized farmers groups at the JICA Cotton Demonstration Farms, in which one progressive farmer per one group was selected a Field Supervisor bridging the farmers and TES Center. The farmers groups were formulated mostly based on good friendship in particular blood relationship. The present farmers group can play only a passive role in cotton production, however, the farmers groups could play various roles in cotton production, seed cotton marketing and processing in the future, contributing to more tangible and intangible benefits for the member farmers. The farmers group and its role should be carefully assessed and TES Center should propose a practical plan of actions for the farmers groups to strengthen their functions.
• Inputs Supply： The JICA Pilot Project was supported not only by the extension services of TES Center, but also inputs supply from the USAID/IFDC supported Kyrgyz Agri-business-men Association (AAK）and the credit delivery by Agro-Credit Plus (Micro Credit Union, delivering the JICA budget for participating farmers to purchase inputs). This trinity service is a key factor for small farmers to continue sustainable cotton farming in fields. However, IFDC’s assistance on AAK in Fergana Valley will complete in December 2006. USAID supports on inputs supply will move to the northern Regions, and AAK will act as an independent NGO in Osh without technical supports from IFDC. It might face the difficulty in sustainability of their services in the near future.
• Integrated Evaluation: As the concept of the Pilot Project was prepared, the cotton demonstration farms were selected and sustainable farming was practiced in association with cooperating agencies and the dedicated staff of TES Center. As a result, the target yield and production were attained by the participating farmers and they are convinced of the importance of sustainable cotton farming based on the IPM system including plastic mulching, and compost application. Even after the completion of the JICA Pilot Project in March 2007, many participants are of the opinions that they would like to continue sustainable cotton farming under the guidance of TES Center while a number of issues were already assessed for continuing sustainable cotton farming without JICA support.
• Sustainability of Extension Agent: After TES Center was established by financial supports from GTZ, a GTZ expert advised TES Center on how to keep its function upon completion of the foreign financial assistance. In line with his advices, TES Center initiated unique measures, which were not taken up by other NGOs, such as new income generation and cost-saving to guarantee continuity of its operation along with new incentive systems for staff as follows:
− Introduction of new income resources (construction of guest houses, lent offices and conference room for lent);
− Control of monthly staff salary (Chairman: US$250, Director: US$200, Professional staff: US$150) and bonus based on their performance;
− Introduction of transparent management and democratic operation to satisfy staff as well as donors;
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− Providing overseas training and post-graduate courses with staff in collaboration with donors to enhance morale standard; and
− Invitation of expatriate advisers for organizational reform/project implementation, who could be classified young professionals.
• Existing Issues:
− TES Center always faces to headhunting by other aid programs and projects. For example, 3 staffs left out about 30 enrollments in 2006.
− Experienced staff needs a lengthy time span to change their Soviet style of cerebration and behaviors but they can stay with TES Center. On the other hand, young professionals lack of professional practices and they need on-job training but they are apt to leave TES Center with headhunting.
− If a higher payroll system could be adopted as other NGOs, staff turn-over could be less than now, however, due to uncertain continuity of foreign aid programs, TES Center might sometimes face difficulty of its operations upon completion of foreign aid programs.
− Accordingly, TES Center should seek staff incentives not only based on its pay-rolls but also others such as feel of satisfaction of working with the organization and their mission.
• Possible measures:
− TES Center should selectively accept clients’ offers based on their scope of works and payable remuneration in consideration of upgrading staff quality and job satisfaction in long term (repeating simple jobs would degrade staff moral and morale).
− TES should exploit direct contracts with foreign donors instead of simply sub-contracting a part of an integrated project with international NGOs, attributing to improved services fee and to new business chances in light of the local conditions.
− Stable income sources just like the guest house should be extended.
− Based on accumulated experiences in agriculture sector, agri-business for profit earning, for example, dry tomato making, cotton seed production, importation & sell of IPM materials could be attached to the charter of TES Center, with which resources will be generated for staff social well fare.
− With the revolving funds with Agro-Kredit Plus, which were contributed by foreign donors to supporting input provision for TES Center extension services, TES Center should offer to progressive farmers private extension services. This will also create new income resources.
− TES Center will review its unique history on operation and management and make press releases to donor communities abroad, which could be supporters for TES Center in the future.
− In order to find chances for business promotion and overseas staff training, TES Center should contact leading foreign missions in Bishkek on regular basis.
− TES Supporting Foundation could be established based on funds from profit earning, which will support staff welfare services (additional pension, retirement bonus, medical insurance, scholarship for children of staff, and loans for emergency and housing).
− For the time being, two types of foreign advisers are required namely, to technical and managerial innovation.
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• Required follow-up actions:
− Review of TES Center’s activities from first to last;
− Preparation of the grand plan of TES Center;
− Preparation of action plans as a development agent for small farmers;
− Preparation of business plans and models; and
− Invitation of foreign technical assistance
2-1-6 Attainment and Technology Transfer
(1) Attainment
Along with the implementation of JICA Pilot Project, the followings were attained: − Establishment of a sustainable cotton farming system in Osh; − Introduction of IPM; − Verification of improved crop production by applying compost; − Establishment of procurement and application of genuine NPK fertilizers; − Provision and full recovery of non-collateral group guarantee loans; − Farmers’ understanding on necessity of farmers organization; and − Cooperation with other donor’s agencies．
• Establishment of sustainable cotton farming: In the first year of 2005, 3.3t/ha was recorded at the demonstration farms of 10ha, which was restaged by the 3.5t/ha of yield at the 50ha of the demonstration farm in the second year, The participating farmers managed the demonstration farms by themselves under the technical guidance of TES Center, which prepared a farming manual for sustainable cotton cultivation in light of experience and lessons learnt from the Pilot Project. The manual could be applied to any other cotton areas in Kyrgyz.
• Introduction of IPM:
− IPM constitutes the base of sustainable cotton farming, which could keep chemical application at a minimum level. Hence, IPM avoids negative impacts on environment from cotton farming and the hike of the production costs. The importance of IPM for cotton farming stems from its high frequency of pest and diseases occurrences compared with other upland crops. Effective and efficient eradication of pest and diseases is crucial for the growers to ensure sufficient profits. Even though farmers keep fertilizer application at a minimum, cotton bears secreted products on leaves, stems, flowers and cotton balls, which seduce various diseases and pests. In recent years, the main thrust of pests and diseases management was chemical control. The more fertilizer is applied, the more secreted products are produced. As a result, in light of increasing fertilizer application, pest and disease damages proliferate at an exponential rate. If cotton farming relies upon only chemical control, the numbers of application times increase year by year due to increasing chemical resistant insets and diseases. In some cases, more than ten times of chemical application was required, with which cotton farming became financially unviable. Cotton cultivation in the Philippines and Nicaragua is the typical case of no-financially viable farming caused by too much input costs of chemical pest management. IPM consists of broad measures such as pest management by farming practices、pest management of physical means, biological pesticides, natural predator control, pheromone traps, integrated control using described above methods. IPM applied cotton farming could curb the inputs cost in comparison with chemical control.
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Moreover, IPM could avoid environmental degradation such as integrated disaster in and around Aral Sea surrounded by Uzbekistan and Kazakhstan caused by application of contaminated low quality chemicals far and wide in large quantity, depletion of river flows to the landlocked Sea and widespread poor irrigation management in saline soil under large scale irrigation schemes for cotton cultivation. Namely, implementation of IPM could bypasses chemical induced health hazards in Kyrgyzstan.
• IPM in Kyrgyzstan: − At the end of the 1960s, heavily dosed chemical and fertilizer application cast gloomy
shadow over the farm management in the Soviet Union, and environmental degradation was getting apparent among people concerned with cotton production. At the early 1980s, IPM system has been commenced at the communal farms and state farms but in accordance with economical and political destabilization of the Soviet Union, IPM encountered difficulties in its implementation. Along with abolishment of the state and communal farms, IPM disappeared from fields, leaving only three biological laboratories in the country, which produce biological pesticides and predators. Newly created small farmers could not afford necessary amounts of fertilizer and chemical. Of course, farmers made every effort to attain yields as much as high based on no chemical inputs. Under such condition, farmers were not able to benefit from IPM in their fields. After the independence of the country, many donors, such as USAID, GTZ, etc. supported small farmers engaged in crops production and marketing, these projects did not intentionally focus on IPM and accordingly JICA Pilot Project was the first project that was designed based on IPM to introduce sustainable cotton production. Thanks to staff in persisting Osh Bio-Laboratory with scant budget and staff under the Ministry of Agriculture, Water Resources and the Industry, basic materials, technical guidance and technical staff were available for the implementation of IPM in Osh. TES Center requested the Bio-Lab to assist JICA Pilot Project in introducing IPM at JICA sponsored Demonstration Farms.
− IPM with Pilot Project: Regarding IPM, the most advance, important successful story is the creation of genetically controlled disease and pest resistant varieties, which transfer disease and pest resistant genes to cotton from other beings. This gene transfer can not be fulfilled by traditional cross-breeding between related species. In USA, the Lepidoptera killer gene of BT (Bacillus thuringensis) was transferred to cotton by a genetic engineering method. In USA, Australia, India and China, IPM systems are strengthened by using BT cotton varieties. In Kyrgyz, BT cotton is not allowed to grow in the country yet. Therefore, IPM programs in JICA Pilot Projectt used available predators and methods such as Trichogramma, Lacewings, Ladybugs and Bracon, seed disinfection, biological pesticides such as NPV（Nuclear Polyhedrosis Virus）and BT(Bacillus thuringensis), mulching at sowing and compost application. In case of emergency requirement, environmental friendly chemicals were applied at a nominal level that was Mosphiline for aphids and Neorn for spider mites. As a result, the dosage of chemicals was kept at a very low level. The seeds were treated with Fungicides of Bronotak and Gauch prior to sowing to eradicate diseases-causing germs on seeds. AAK members’ dealers delivered Chinese made NPV and BT to JICA Pilot Project. IPM application was designed by Osh Biological Laboratory. Materials were secured in cooperation with Bio-Lab, AAK and TES Center. These materials were originally created in Bio-Lab, China and Uzbekistan. Based on these materials, the adopted IPM was most advanced one in Osh. However, since pest occurrence as well as
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pest resistance vary year by year, careful pest scouting and consequently quick and appropriate correspondence are utmost important to contain mass generation of pest.
Note：* IPM (Integrated Pest Management)
IPM System
Pest control byrming Predators system and physical
Bracon･Lacewing measures
Biological Pesticide Environmentally NPV･BT Friendly Pesticide
Fig. 2-1-1 Integrated Pest Management Scheme
• Compost: Compost application makes improve soil structure and supplement trace-element to soil. Compost also help substitute for N, P and K chemical fertilizers. Accordingly, compost application reduces the necessary amount of chemical fertilizer. Moreover, while it is said that compost help plants reduce pest and diseases damages, the effect of compost could not be necessarily generalized in all applied farms. The effect could not be quantitatively assessed in compost applied farms because effect and efficiency of compost depend on a wide of factors such as components material, compost maturity, its application timing, weather, and soil conditions such as fertility, temperature and humidity. In the rural area of Osh over the period of the Soviet Union, local produced coal and natural gas imported from Uzbekistan were supplied to farmers’ households. However, after the independence, due to hike in coal prices and no supply of natural gas, farmers face difficulties in securing energy resources. Therefore, farmers use all agriculture bi-products such as dried animal dugs and crop residual including leaves, stem and roots for their cooking and heating. At moment, there are no available animal dugs for compost making in rural areas. Under such energy demand and supply conditions in rural areas, it is difficult for farmers to prepare compost. The effect and efficiency of compost should be shown to farmers at the Pilot Project, otherwise, it was not easy for farmers to practice compost application. If the compost could produce more values from cotton farming than just simply using bio-mass for fuels, farmers could buy commercially available energy by additional cash earned from compost applied cotton. The Pilot Project should prove that the commercial energy could be easier to deal with and be more economical that farm residual. However, for the 2005 crop year, farmers were not able to prepare compost because the participating farmers were selected by the Pilot Project in March 2005 that is far behind the compost preparation timing. In 2006, two farmers groups adopted compost, which were able to prepare compost. Out of one hectare, 0.05 hectare of farms were ploughed with compost. Since the farmers were able to get higher yields in compost applied farms than in ordinal farms, farmers have started compost preparation for 2007.
• Genuine NPK fertilizers: Necessary fertilizers were distributed to collected farms from the State at the time of Soviet Union so that in the country, there did not exist commercial channel of fertilizer distribution. Newly born small farmers did not have access to fertilizer due to lack of
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private fertilizer distribution channels in place of the government channel. In Osh, farmers should visit local markets to buy available fertilizers when necessary. Farmers are obliged to purchase any fertilizers available at markets without paying attentions to brands, contents and type of fertilizer. Most of available fertilizers at local markets were smuggled from Uzbekistan, being no certificated its qualities. Only nitrogen fertilizer is available at local markets. The JICA Pilot Project secured genuine inputs materials such as seed and fertilizers via the members of AAK that was established for input supply by USAID/IFDC. At the first year, NP fertilizer was applied due to lack of K fertilizer, at the second year, NPK fertilizers were applied to the Demonstration Farm.
• Five cotton varieties were lined up for the Demonstration Farm with efforts of IFDC. Turkish and Uzbekistan variety that had high yielding potentials with short maturing periods in home countries. Out of five varieties, one variety was Kyrgyz born one, called Kyrgyz 5. Four foreign varieties were introduced into the country, being specially exempted from seed control in consideration of the objectives.
• Another remarkable material is plastic sheets to mulch soil immediately after sowing seed. The plastic cover helps soil temperature raise, ensuring healthy cotton growth in the early spring, resulting in earlier maturing. Moreover, the plastic cover controls surface soil erosion with strong spring window, prevents weed growth, and sustains soil moisture．Accordingly, plastic cover helps farmers increase cotton yields and extend cotton cultivated areas to higher altitude where up to now; cotton could not be grown due to low temperature in the early spring and in the late autumn.
• Provision of no collateral, group guaranteed credit: JICA provided cash for input expenses with the participating farmers at the demonstration farms. The sub-contractor, TES Center transacted all fund for inputs expenses without any reduction of operational costs to the cotton development account with Agro-Kredit Plus, a credit union. Agro-Kredit Plus delivered funds to the farmers for inputs expenses as short term credit of annual interest rate of 18%. The credit union did not require collateral but mutual group guarantees. All beneficiaries paid interest as well as principals as schedule without delay. As of February 28, 2007, about US$ 30,000 will be recovered to the cotton development account, which will be sanctioned to enabling farmers for cotton development from 2007 to 2014.
• Formulation and Build-up Farmers Group: The formulation and build-up of farmers groups are essential for small farmers to continue sustainable cotton cultivation. At the start of JICA Pilot Project, farmers organizational matters was not intentionally paid much attention in fear of loosing focal points of the project objectives, which was technology transfer of sustainable cotton farming within the limited time span of only two years. However, based on the positive results of the Pilot Project at first year, strengthening farmers organization was taken up by TES Center in the second year．In one of farmers groups, one progressive farmer expressed his interests in building-up his farmers group to the level of cooperatives, which could ensure more effective and efficient IPM based cotton farming to reduce costs as well as to attain higher productivity than now. Moreover, in the case of seed cotton processing and lint marketing, organized farmers could benefit from planting an identical variety within an organization to secure a minimum amounts (50ton) of same quality of seed cotton fibers for direct business for ginning and trade, which would offer bargaining powers against ginnery and lint traders. Among others, how to nurse mutually reliable relationship with other member is the most important
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factor to build up the successful farmers organization．For that purpose, the farmers are getting understood that transparent management of the organization should be taken up to bring up mutual trust within the organization. Book keeping on business should be simple and correct and should be opened to any member if necessary.
• Cooperation with Other Donors: As mentioned above, the Pilot Project directly and indirectly referred to experience and lesson learnt by other donors. For the project implementation, USAID and its implementing agencies such as IFDC and Winrock International gave the JICA Project tangible assistance such as seed importation from Turkey, provision of other inputs and irrigation water supply. Since Kyrgyz is a small country, donors provide a number of small scale projects that have limited service areas and narrow scopes of works, inter-agencies cooperation is useful to implement project in cost effective manners.
(2) Spillover Effects
The following spillover effects were assessed in the course of JICA Pilot Project over the period of two years:
− Mady Village mayor expressed his desire to invite the JICA Pilot Project based sustainable cotton farming in 400ha of Mady Aiyl Okumotu (Mady Village Office) holding public land.
− At the end of the first year of the JICA Pilot Project, increasing numbers of surrounding farmers wanted to join the second year of the JICA Pilot Project;
− The effect of the plastic cover on sown soil could extend potential cotton areas where cotton was not grown due to low temperature;
− TES Center was requested to assist Swiss funded organic cotton project in extending to Osh; and
− Based on the revolving fund, sustainable cotton farming would be implemented even after the withdrawal of JICA support to TES Center.
• Sustainable cotton cultivation in Mady Aiyl Okumotu holding public land: The JICA cotton demonstration farms are located in Mady. The village mayor was impressed by the successful implementation of the Pilot Project based on sustainable cotton farming. He expressed his wish to extend JICA Type of cotton farming in the official holding farm land of 400ha. The detailed discussions should be undertaken to assess the implementation with the officials concerned. If TES Center could manage 400ha of sustainable cotton farming located in block, more effective and efficient cotton management would be exhibited in 400ha of farm land because the application of IPM will be more effective and extension cost will be saved less than JICA Pilot Project. Accordingly, product costs will decrease and productivity will rise, resulting in high net income per hectare.
• Increasing numbers of farmers’ candidates for the Pilot Project: At the Field Days, participating farmers and numerous outside farmers had received training of sustainable farming and realized the enhanced cotton yield in the first year at the JICA Pilot Project. For the second year in Mady, more than 100 farmers wanted to join the Pilot Project, out of which, about 40 farmers were selected while in the first year, 10 farm households joined in the first year.
• The further extension of cotton to the outside of three Southern Regions: Cotton cultivation is located only in three Regions, which was assigned by the Planning Commission of the Soviet Union. Outside three Regions, it was assumed that cold damages in the early spring and the late autumn limited cotton cultivation only in comparatively warm weather condition. However, based on the experience and lessons learnt from the Pilot Project, the cultivation in more than
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1100m of the altitude showed even higher cotton yields with plastic mulching sown land than low lying land of 600m. In fact, in China, cotton is cultivated with plastic mulching in the area west to Jungale Desert where the latitude is almost equal to Bishkek and due to its vicinity to the desert; the temperature in the spring and the autumn could go down even lower than in Bishkek. This suggests that the cotton could be expanded further more to so called unfavorable land (look at the history of rice extension in Japan to north).
• TES Center was requested to manage the Swiss financed organic cotton project in Osh that will commence in 2007 due to its high cotton management technology.
• Continuity of sustainable cotton farming using the Revolving Fund: By the end of February 2008, the credit union will recover the cost for inputs provided by the JICA Study Team, amounting to the revolving fund of US$30,000. TES Center is expected to continuously support for small farmers’ sustainable cotton farming in accordance the Sub-Contract between TES Center and Tohmatsu, the contractor for the JICA Development Study. Assuming that US$400/ha is required for cotton farming, 75ha of cotton farming will be implemented in accordance with the JICA prepared guideline.
(3) Technology Transfer
The above referred to technology transfer of sustainable cotton farming. Accordingly, technology transfer is not discussed here again.
(4) Follow-up Action
In order to enhance effect on poverty reduction and hard currency earning by cotton sector, following subjects should be assessed furthermore:
− Expansion of cotton cultivated areas（in only irrigated land）and improvement of productivity; − Introduction of foreign good genetic variety to further increase productivity; − Introduction of the most advanced IPM system; − Establishment of private extension system; − Organizing cotton farmers and active involvement of farmers organization in cotton chain; − Assessment of new cotton farming areas (high altitude and latitude areas) based on plastic
covers; − Review and revision of cotton development policies; and − Introduction of cotton development projects (grant and investment)
The below refers to subjects that were not thoroughly discussed in the aforementioned parts of this chapter, and are invaluable subjects for cotton development in Kyrgyz:
• Introduction of foreign good genetic variety to further increase productivity: Over the period, yields difference among promising 5 varieties inclusive of Turkish one were not apparently demonstrated as recorded in breeding stations in these countries. This issue could be explained that either suitable variety was not selected when introduced or appropriate cultivation guidelines were not attached with imported seed. Except for cotton in West Africa and Central Asia, cotton yields have been raised by introduction of good variety along with improved field management including IPM during the last 20 years. While the present seed cotton yield of Kyrgyz is comparatively high (about 820kg), introduction of improved variety and its propagation and distribution should be considered while careful production plans should be accompanied with propagation programs. For example, genetically modified cotton seed should be assessed for introduction that will force the government to introduce tuff legal measurers against offending intellectual property right to protect the interest of breeders.
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• Private Extension Services: Until now, including the JICA Pilot Project, TES Center was engaged in foreign assisted projects and its cost for extension was borne by donors. However, in the absence of public extension systems, financially and timely limited foreign assisted projects had very limited effect on agriculture development such as dropping small stones into oceans. While there are similar problematic areas around the nation, the farmers in these areas could not be helped because the areas are outside of foreign assisted project areas. Hence, private extension services should be emerged into the country to cover the farmers outside of foreign services. Moreover, foreign aids have time limited assistance with the implementation period of less than 10 years. The private extension services should take over the role of foreign assisted projects in a phased manner even within the project implementing period. The private extension could cover the shortcoming of foreign assisted project and could extend modified services on the top of experience and lessons learnt during the foreign assisted project along with local consideration. The several points on necessity of private extension services were already discussed in previous sections; however, the most important issue on private extension services is how to compensate the cost of the services. TES Center should have consultation with the JICA Pilot Project beneficiaries to assess how they could continue the sustainable cotton farming with the available reserved fund of US$30,000 at the cotton development account in the Agro-Kredit Plus after JICA Pilot Project completion．
• Review and revision of cotton development policies; since the country became independent in 1991, the free economy has introduced the principle of market economy. As a result, the cotton chain has been liberalized and the Government does not have strong cotton development policies rather than rendering solving cotton related issues to market mechanism. The cotton production should be overseen by the Ministry of Agriculture, Water Resource and the Industry, and processing including ginning and marketing should be supervised by the Ministry of Trade and Industry. Up to now, since cotton sector was placed under the marketing mechanism, cotton production has duly expanded because all stakeholders in particular cotton farmers could receive reasonable share of cotton marketing compared with government controlled other cotton country such as Uzbekistan and Turkmenistan(See Chapter 3-2). However, in anticipation of further expansion of cotton farming, reform should be assessed on cotton supporting services (Bio-lab, seed breeding station, and seed multiplication), build-up of the farmers organization, rationalization of ginning sub-sector, export license and export tax. Since cotton sector is the one of most effective measures to reduce rural poverty as well as to enhance inflow of hard currency. Appropriate policies guidance would help cotton sector reform the mode of operation to a level competitive against other cotton producing countries in particular, neighboring countries in Central Asia under harmonized efforts between the private sector and the government. Among these efforts, it is expected that the government would take leaderships to invite official foreign investment such a Yean loan to reform problems inherited in Kyrgyz cotton sector such as introduction and expansion of high quality seed, provision of fund for micro-financing, rehabilitation of infrastructure (irrigation and marketing road, ginning factory and storages) for cotton production and processing. The stabilization fund for cotton export could be considered also.
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2-1-7 Prospect
Based on the results from implementing JICA Pilot Project, the possibility of further extension of Kyrgyz cotton sector is now evident which will contribute to:
− Rural poverty reduction will progress to a further level; and
− Increasing national income in hard currency will contribute to reconstructing the national economy.
The prospect of the cotton sector based on the experience and lessons learnt from the JICA Pilot Project are presented in the Chapter 3 of the Master Plan for the Kyrgyz cotton sector. The prospect of the development was formulated on analytical studies on the implementation of the Pilot Project, for which the following assumption was taken up for discussions:
− The cotton cultivation areas would be expanded to only present irrigated farm land;
− For the time being, cotton farming would be strengthen in the southern three Region;
− Small farmer sustainable cotton would be extended, focusing on IPM;
− In the foreseeable future (until 1912), the private extension services would be the focal point for cotton development along the with cotton revolving funds, for which a investment project is not expected for cotton sector;
− The project type of JICA technical assistance could assist cotton sector in expanding cotton plantation in particular improving IPM for cotton; and
− Together with technical improvement, Japanese technical assistance will cover the review and assessment of cotton development policies.
The above mentioned development efforts will continue to support cotton sector until 2012, however, from them on, in light of the new cotton policies, large scale cotton sector development could be drawn in consideration of followings:
− Under the government leadership, foreign loan such as Yean Loan could be invited to reconstruct and develop the cotton sector; and
− With substantial increase of seed cotton, balance of international payments and reduction of rural poverty would progress in Kyrgyz.
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2-2 Sheep Fattening Experiment Pilot Project (Project area: Ming-Bulak A/O, Naryn Rayon)
2-2-1 Background of selection of the Pilot Project and its objectives
1) Selection of the Pilot Project
Naryn Rayon was chosen to develop the potential for breeding livestock such as sheep, horses, cattle, goats and yaks. Approximately 30% (or 2.63 million ha) of the pastureland of the Kyrgyz Republic is located in Naryn Oblast. The major source of income for the region's farmers is from their livestock, mainly sheep and cattle. Sheep meat in particular, is one of the most popular traditional staple foods in the area. Even though sheep breeding could best contribute to the development of the region, sheep are reared domestically and sold when cash is needed, neglecting long term planning. Throughout the detailed surveys conducted by the JICA Study Team since February 2004, Naryn Rayon in Naryn Oblast has been selected as a strategic area for developing livestock and based on the Action Plan sheep fattening was identified as being suitable as a pilot project that was expected to improve and sustain farmers’ standards of living in Naryn utilizing its environmental characteristics.
In February 2005, pilot projects and their implementation plans were selected in four Aiyl Okmotus (A/Os) in Naryn rayon. The A/Os of Chet-Nura, Ming-Bulak, Emgek-Talaa and Uchkun were selected taking into consideration their development potentials such as natural resources, human resources, accessibility, and capability of the A/O government and local residents to engage in agricultural development activities.
After presenting four Action Plan (AP) components in each target A/O, the participants were asked to select the candidate pilot project considered to be most suitable for their A/O. The participants were also asked to formulate a concrete plan for the selected pilot project.
The process of selecting and formulating a candidate pilot project in each A/O was made in the following steps. a) Step 1: Presentation of the Action Plan b) Step 2: Selection of a Candidate Pilot Project c) Step 3: Clarification of the selected Pilot Project d) Step 4: Formulation of the Implementation Plan for a Candidate Pilot Project
As a result of workshops held in the four A/Os, candidate pilot projects were selected in each A/O as presented below.
Table 2-2-1 Candidate Pilot Projects in 4 A/Os
Candidate Pilot Projects Location Implementing Body in Pilot Area1. Silage production Uchkun A/O Farmers' groups 2. Milk production Emgek-Talaa A/O Farmers' groups 3. Meat production Ming-Bulak A/O Farmers' groups 4. Irrigation rehabilitation Chet-Nura A/O Water Users' Association (WUA)
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Final selection of the pilot project was made in the meeting room of the Department of Agriculture of Naryn rayon on 26th February 2005. Representatives of the target A/Os including the head and the interested farmers discussed choosing the pilot projects from the candidate projects.
During the discussions, the participants repeatedly expressed the importance of rehabilitating the irrigation facilities and meat production.
As a result, the irrigation rehabilitation pilot project at Chet-Nura A/O and meat production pilot project at Ming-Bulak A/O were selected as the pilot projects in Naryn rayon.
The demand from farmers for irrigation rehabilitation was high and was selected as the top priority project. However, final selection took place during the meeting in Bishkek and the Meat production and Marketing Project was approved. The reason why irrigation rehabilitation was not selected is that irrigation project is merely construction work and cannot be a pilot project, as it is not directly related to the improvement of Agriculture and the Agro-product processing industry, and also due to budget limitations.
The Meat production and Marketing Project was selected for implementation through the above-mentioned procedure. However, the details of the plan, such as the site for experiments and participating farmers, have not yet been determined and are part of the task of the 5th field study team.
As a result of the review of the project during preparations between April and May 2005, it was necessary to change the title of the project since slaughtering in a rural area, as one of the major components of the Meat Production and Marketing Project was not acceptable to the Ministry of Agriculture, Water Resources and Processing Industry. Therefore, its name has been changed to Sheep Fattening Experiments, maintaining the initial concept of the Study together with the following positive reasons.
a) Sheep are the commonest domestic livestock among ordinary farmers, who do not have large livestock, such as a cow or a horse; but in Naryn rayon they definitely own sheep.
b) Sheep-related income is of major importance to small farmers, therefore higher incomes from improving sheep rearing could be expected to be a big help to poor farmers.
c) After the collapse of the Soviet Union in 1991, the conventional system of breeding livestock on sovkhoz (state farms) and collective farms has been changed to small-scale breeding by individual farmers. Therefore, the breed and strain of sheep is deteriorating because of indiscriminate breeding by farmers.
d) The value of sheep bred for wool has fallen a lot due to the collapse of the international fine wool market.
e) With the fall in sheep meat supply due to the lower numbers of sheep, demand for meat sheep is increasing as the price of sheep meat has gone up.
2) Objectives of the Pilot Project
(1) Introduction a) Livestock is the most important source of income for the majority of the rayon farmers. Although
sheep, cattle, horses, yaks and chickens can be found in Naryn, sheep are commonly bred by farmers, in particular the rural poor.
b) From May to October in Naryn, when there is no snow, sheep are grazed on slopes and high mountain pastures that are more than 60-250 km away from home. During the winter, the sheep
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flock is brought back to the residential areas and feed on the very limited feed sources around farmers’ houses. As a result, the nutrient level of sheep falls in the winter, resulting in skinny, low commercial value sheep. Therefore, the rural poor should introduce an appropriate sheep rearing system around the residential areas, based on limited feed resources.
c) Moreover, due to selling sheep live to middlemen, the rural poor have to accept lower prices than those of other stakeholders in the sheep production chain. In order to enhance the profit sharing with sheep producers, slaughtering needs to be done on site or arrangements should be made for direct sales to consumers.
(2) Objectives The project has the following general objectives:
- To reduce rural poverty among livestock farmers; - To enhance sheep production; and - To improve the local economy.
The project has the following specific objectives; - To increase sheep productivity with supplemental feeding prior to selling the sheep; - To devise the most effective and economical sheep fattening pattern in the winter; - To find out the most effective supplemental feed composition for sheep fattening; and - To assess the relationship between the enhancement of product value and the supplemental feeding
methods for sheep rearing.
(3) Goal By fattening sheep with grain before slaughtering, carcass meat weight should be increased by at least 10% on average compared with conventional sheep meat. Through increased productivity and improved meat quality, the project will target a 10% increase in profit from the sale of sheep meat produced under the pilot project 2-2-2 Project Outline and its budget of Second year 1) Main tasks for the 6th field study (Part 4 & Part 5) (1) Part 4 (May to June 2006) The 4th field study was conducted from May 29th to June 25th 2006 under the 6th field survey. The Study Team stayed in Naryn rayon from June 3rd to 17th and conducted the main task for part 4 were summarized as follows,
a) Confirmation and analysis of experiment result of 2nd stage (fattening completed on April 13th) b) Conclusion of contract with RAS Naryn for implementation of Pilot Project for the second year c) Confirmation of progress of the 3rd stage of experiment and d) Instruction on how and where to sale the sheep for market research
(2) Part 5 (July 2006) The 5th field study was conducted from July 6th to 28th 2006 under the 6th field survey. The field visit of the Study Team was done between July 11th and 20th and worked on a following items,
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a) Observation on market sale of experiment sheep of 3rd stage (fattening completed on July 7th) in Bishkek and Naryn
b) Study and Analysis of result of experiment and sales of 3rd stage c) Investigation on present condition of Animal disease and its countermeasures
2) Scope of the Project
a) Confirmation of the pilot project implementation system - Confirmation of the points agreed upon at the time of the 5th field survey - Confirmation of preparations after March 2006 and issues for implementation - Confirmation of implementation structure - Coordination and Finalization of the implementation schedule - Selection and contracting of sub-contractors
b) Confirmation on the Monitoring and Evaluation System - Confirmation on the baseline survey conducted by the sub-contractor - Confirmation of an M & E system by introducing a PDM
c) Commencement of the pilot project for 2006 - Agreement with Sub-contractors - Signing the Sub-contract
d) Technical assistance for appropriate & profitable sheep fattening - Appropriate technical assistance is programmed - Technical assistance is given by various methods
e) Inputs Delivery & Facilitation of Experiment Site - Setting up or maintenance and repair of a sheepfold for the experiment - Input supplies, such as Fodder, Barley and the necessary medicines, tools and equipment
3) Pilot Project Cost
Table 2-2-2 Cost of the Pilot Project
Item Expenditure For 2005 ($) For 2006 ($) Purchase of sheep & rearing Plan
Sheep Cost Hay and Feed Cost
6,2501,480
3,116 7,120
Processing & Marketing Plan
Processing & Marketing Cost
3,906
Project Management Plan Consultants' Fees Project leader Livestock Specialist Economic Specialist Assistant/ Interpreter Monitoring &Evaluation Administration Costs Training & Extension Costs
10,0006,600
1,100660
1,520 3,150 1,560 4,380
600 2,695 3,887
Total 30,196 28,028
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The project cost would be US$ 30,196 for the first year up to March 2006, and the total project cost including the second year up to February 2007 would be US$60,500. However, the actual cost must not exceed the amount of the total projected cost. The actual contract was made with RAS Naryn for US$25,069 for the first year and US$23,769 for the second year respectively.
2-2-3 Project Design Matrix
The Project Design Matrix (PDM) for the project has been prepared as shown in the following tables.
Table 2-2-3 PDM for the Sheep Fattening Experiment Project Location: Ming-Bulak A/O, Naryn Rayon Duration: 2005 – 2007
Narrative Summary Verification Indicators
Means of Verification
Important Assumptions
Overall Goal To reduce the poverty level in Naryn Rayon
Farm income levels of the residents in Ming-Bulak and surrounding A/Os are increased
Monitoring reports
No policy change of the government on agriculture
Project Purpose Increased livestock (sheep) income
1. Increased farm
incomes in the pilot area
2. Increased number of sheep in the pilot area
1. Monitoring report (for 1st year)
2. Monitoring report
(for 2nd year)
No adverse livestock (sheep) market
Outputs 1. Participant farmers'
groups understand the project schedule
2. Increased average weight of sheep after fattening
3. Meat processing conducted in the A/O
4. Improved quality of meat
5. Selling price of meat is increased due to improved meat quality
1. All members of the
participating groups understand the project implementation schedule
2. Average weight of sheep is increased
3. Selling price of meat is increased
1. Record of
meetings 2. Monitoring report
(for 1st year) 3. Monitoring report
(for 2nd year)
The participants continue the project under support from the PIU and rayon government agencies
The participants continue the project
Activities 1. Workshop on the
project implementation and management
2. Purchase of livestock 3. Meat production and
marketing 4. Monitoring and mid-
term evaluation workshop
5. Monitoring and terminal evaluation workshop
Input Japanese side 1. Manpower: project management expert 2. Materials: feed stuff for sheep fattening Kyrgyz side 1. Government manpower: sheep expert;
trainer for meat marketing 2. Community: provision of sheep & place for
fattening; training & meeting place; labour; slaughterhouse
Pre-conditions Rayon government and communities agree to implement the project
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2-2-4 Implementation of the P/P (for 2 years)
1) Sites of Experiment in the A/O The JICA study team has visited Ming-Bulak A/O and confirmed the condition of the A/O and determined the actual sites for experiment after interview of farmers’ groups. Experiment was carried out more or less along the schedule in the first year. The JICA team, RAS and farmers’ group came to agree for continuation of the experiment foe the second year at the same sites.
2) Overview of Ming-Bulak A/O Ming-Bulak A/O is located approximately 25 km northwest of Naryn town. The total population in 2004 was 4,666, 52.6% of whom are male. Out of the total agricultural land area of 7,319 ha, arable land accounts for 2,271 ha (31%) and the remainder is pastureland. Of the 2,271 ha of arable land, 2,261 ha are irrigated.
3) Farmers’ Group and Location of the Experiment The experiment was set up based on the sheepfolds of 2 cooperative farmers' groups in Ming-Bulak Aiyul Okumotu. The location of the experimental site is shown on the following page. The list of the two farmers groups and their sheepfold sites are as follows:
(1) First Group (Site-1) : Esenbai, Chon Ming-Bulak village, in the centre of the Aiyul Okmotu Borsunbaev Asanbek Esenbekovich - representative of Ming-Bulak village
(2) Second Group (Site-2) : Jakyp, Ornok village, which is located on the main road Omuraliev Muratbek - representing this group
Location Map of Experiment Sites
Naryn Rayon, Min-Bulak ：：Site-1 (Chon Min-Bulak) ：Site-2 (Ortok)
0 5 10km | | |
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4) Selection of Sheep Breed Sheep breeds of Kyrgyzstan are Kyrgyz Fine Wool breed (91%), Tian Shan breed (7%) and Alai Semi-coarse Wool breed (2%), according to the World Bank report in 1996. However, the FAO report1 in 2000 stated the percentage of Kyrgyz Fine Wool breed as 45-46% of the national flock.
As small-scale rearing became more commonplace, it became difficult to maintain excellent breeds, which have superior genetic characteristics. The State breeding station in Kara-Kujur of Naryn Oblast that developed the Tian Shan breed was broken up and therefore many pedigree sheep were sold to private farms and only some livestock was maintained as a gene pool support by the state government.
Selection of the breed for this experiment was made based on the following criteria, - Potential for disseminating the experiment's results - Availability and accessibility of the breed for farmers in the area
From the above point of view, the Kyrgyzstan and Tian Shan breeds were selected.
Introduction of an Additional Sheep Breed
Gessar; There is a sheep breed with excellent characteristics in countries neighboring Kyrgyzstan. The Gessar breed which, is a large meat type and a native of Tajikistan, is being introduced in the south, particularly in Osh and an Action Plan for this breed was proposed during a survey in 2005. A few years ago Naryn RAS demonstrated Gessar sheep and distributed an information leaflet about them. This demonstration programme, proved the Gessar’s adaptability to the Naryn climate. Therefore, Gessar were added to the present experiment's design in the 4th Stage to compare the characteristics of the 2 breeds.
Information about the Breeds;
Kyrgyz Fine Fleece(so-called Local Breed); Breeding based on the native coarse wool / fat tail improved by crossing with fine fleeced rams including the Caucasian merino, the Siberian Ramouillet, the Wuertemberger and the Precos and later further upgraded by imports of Australian merinos and others.
Fat tail of Kyrgyz Breed
1 Country Pasture / Forage Resource Profile for Kyrgyzstan
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Tian Shan Semi Fine Wool; Breeding based on the Russian Precos upgraded by crossing with Lincoln rams.
Gessar breed; Large meat type sheep originating in Tajikistan. Highly adaptable to both high altitude and dry land. Quick growth with a prominent fat tail. Ram; 120-140kg, Ewe; 75-80kg. Black, Brown and Chestnut coarse wool for carpet and felt.
5) Lamb and Sheep for the experiment
In this experiment, aside from breed comparison, 2 different age groups would be compared. To obtain reliable experiment results, it is important to prepare sheep not only uniform in size, but also in genetic characteristics. Considering that the breeding season of sheep in Naryn, is generally in autumn and most of ewes deliver lambs in spring. Therefore 6-month lamb (castrated male) and 18-month wether were obtained in September 2005 for the first stage of experiment. In the same way, sheep would be selected from the spring-born flock for use in other stages of the experiment. However, since pasturage is practice at limited area during winter, the lamb and wether purchased in the livestock market for the second & third stage experiment became uneven appearance and size.
6) Design of the Project Experiment
The experimental design of each stage is basically as following, 2 breed x 2 age x 4 experiment lot by different feed combination x 5 heads/lot = 80 heads Experiment will be implemented at 2 sites and we divided sheep flock by age.
Site-1; Lamb group (2 breed x 4 experiment lot by different feed combination x 5 heads/lot = 40 heads) Site-2; Wether group (2 breed x 4 experiment lot by different feed combination x 5 heads/lot = 40
heads)
In addition to the above for the 4th stage experiment, Gessars were introduced at the rate of 2 head/lot, a total of 12 head/ group. (Table 2-2-4(4))
Stage Date of start Date of end Fattening Period (result)
Lamb (Castrated male)
Wether
1st Stage Oct.01,2005 Dec.24/26,2005 90day(84,86) 7month 19month 2nd Stage Jan.16/23,2006 Apr.13,2006 90day(80,87) 10month 22month 3rd Stage May09,2006 Jul.07,2006 60day(59) 14month 26month 4th Stage Oct.16 2006 Jan.15 2007 90day 7month 19month
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Details of the design of the 1st and 2nd Stages are shown in Table 2-2-4(1) and Table 2-2-4(2) respectively. Based on these, the application of feed and its amount was arranged by weight of sheep and how it was consumed. Layout of the Experiment's setting is shown in Figure 2-2-4(1).
Due to increasing the number of sheep per lot from10 to 12, the sheepfold was enlarged.
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Table 2-2-4(1) Design of the Sheep Fattening Experiment for the 1st Stage 1st-Stage 1) Lamb Fattening Duration Between September and December 2005 Fattening Period around 90days Hay Sainfoin [Onobrychis viciifolia], second harvest summer pasture Sheep age 6 months old in September 2005 Site Site-1（Chon Ming –Bulak village, Ming-Bulak A/O） Cooperating Farmer Asanbek Esenbekovich (Representing the Esenbai Farmers’ Group) Lot-1 Lot-2 Lot-3 Lot-4
Control（Hay only） Hay & Whole Barley Hay & Mixed Barley Hay & Mixed Barley Tien Shan Kyrgyz Tien Shan Kyrgyz Tien Shan Kyrgyz Tien Shan Kyrgyz Breed
No. of Sheep (Wethers) 5 5 5 5 5 5 5 5
Feed application per head Lot-1 Lot-2 Lot-3 Lot-4 Hay 2.0 1.2 1.2 1.2 Barley (whole） 0 0.4 0.3 0.2 Barley (crushed） 0 0 0.1 0.5 Supplement 0 0 0 0
Application Time AM PM AM PM AM PM AM PM Hay 7:30 4:00 7:30 4:00 7:30 4:00 7:30 4:00 Barley (whole) 10:00 6:00 10:00 10:00
Barley (crushed) 6:00 6:00
Supplement 9:00 5:00 9:00 5:00 9:00 5:00 9:00 5:00
2) Sheep Fattening Duration Between September and December 2005 Fattening Period around 90days Hay Sainfoin [Onobrychis viciifolia], second harvest summer pasture Sheep age 18 months in September 2005 Site Site-2（Ornok village, Ming-Bulak A/O） Cooperating Farmer Muratbek Omuraliev (Representing the Jakyp Farmers’ Group) Lot-1 Lot-2 Lot-3 Lot-4 Control（Hay only） Hay & Whole Barley Hay & Mixed Barley Hay & Crushed Barley
Tien Shan Kyrgyz Tien Shan Kyrgyz Tien Shan Kyrgyz Tien Shan Kyrgyz Breed No.of Sheep (Wethers)
5 5 5 5 5 5 5 5
Feed application per head Lot-1 Lot-2 Lot-3 Lot-4 Hay 2.0 1.5 1.5 1.5 Barley（whole） 0 0.5 0.3 0 Barley（crushed） 0 0 0.2 0.5 Supplement 0 0 0 0 Application Time: the same as Lamb Fattening
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Table 2-2-4(2) Design of the Sheep Fattening Experiment for the 2nd Stage 2nd-Stage
1) Lamb Fattening Duration Between January and April, 2006 Fattening Period around 90days Hay Sainfoin [Onobrychis viciifolia], Second harvest Summer pasture Sheep age 10 month old in January, 2006 Site Site-1（Chon Ming –Bulak village, Ming-Bulak A/O） Cooperating Farmer Asanbek Esenbekovich (Representing the Esenbai Farmers’ Group Lot-1 Lot-2 Lot-3 Lot-4 Control（Hay only） Hay & Whole Barley Hay & Mixed Barley Hay & Mixed Barley
Tian Shan Kyrgyz Tian Shan Kyrgyz Tian Shan Kyrgyz Tian Shan Kyrgyz Breed No.of Sheep (Wether)
5 5 5 5 5 5 5 5
Feed application per head Lot-1 Lot-2 Lot-3 Lot-4 Hay 2.0 1.5 1.2 1.2Barley（whole） 0 0.5 0.3 0Barley（crushed） 0 0 0.2 0.5Supplement 0 0 0 0.2
Application Time AM PM AM PM AM PM AM PM Hay 7:30 4:00 7:30 4:00 7:30 4:00 7:30 4:00Barley（whole） 10:00 6:00 10:00 10:00Barley（crushed） 6:00 6:00Supplement 9:00 5:00 9:00 5:00 9:00 5:00 9:00 5:002) Sheep Fattening Duration Between January and April, 2006 Fattening Period around 90days Hay Sainfoin [Onobrychis viciifolia], Second harvest Summer pasture Sheep age 1 year and 10 month (22 month) in January, 2006 Site Site-2（Ornok village, Ming-Bulak A/O） Cooperating Farmer Muratbek Omuraliev (Representing the Jakyp Farmers’ Group) Lot-1 Lot-2 Lot-3 Lot-4 Control（Hay only） Hay & Whole Barley Hay & Mixed Barley Hay & Crushed Barley
Tian Shan Kyrgyz Tian Shan Kyrgyz Tian Shan Kyrgyz Tian Shan Kyrgyz Breed No.of Sheep (Wether)
5 5 5 5 5 5 5 5
Feed application per head Lot-1 Lot-2 Lot-3 Lot-4 Hay 3.0 1.5 1.5 1.5Barley（whole） 0 0.5 0.3 0.25Barley（crushed） 0 0 0.2 0.2Supplement 0 0 0 0.25Application Time: Same as Lamb Fattening * Correction; It was confirmed that locally called Alfalfa was not real Alfalfa [Medicago sativa], and it was
identifed as Sainfoin [Onobrychis viciifolia], locally called by name of Esparcet.
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Table 2-2-4(3) Design of the Sheep Fattening Experiment for the 3rd Stage
3rd Stage 1) Lamb Fattening
Duration Between May and July 2006 Fattening Period around 60days Hay Sainfoin[Onobrychis viciifolia] Age of sheep 14 months in May, 2006 Site Site-1（Chon Ming –Bulak village, Ming-Bulak A/O） Cooperating Farmer Asanbek Esenbekovich (Representing the Esenbai Farmers’ Group) Lot-1 Lot-2 Lot-3 Lot-4 Control（Hay only） Hay & Whole Barley Hay＆Crushed Barley Hay, Barley＆supplement
Tian Shan Kyrgyz Tian Shan Kyrgyz Tian Shan Kyrgyz Tian Shan Kyrgyz Breed No.of Sheep (Wether*)
5 5 5 5 5 5 5 5
* Due to availability of wether, some ram and ewe were introduced as a substitute.
Feed application per head Lot 1 Lot 2 Lot 3 Lot 4 Hay 2.0 1.5 1.5 1.5Barley（whole） 0 0.6 0.3 0Barley（crushed） 0 0 0.35 0.6Supplement 0 0 0 0.2
Application Time; Same as Lamb Fattening
2) Sheep Fattening Duration Between May and July 2006 Fattening Period around 60days Hay Sainfoin [Onobrychis viciifolia] Sheep age 2 years and 2 months (26 months) in May 2006 Site Site-2（ Ornok village, Ming-Bulak A/O） Cooperating Farmer Muratbek Omuraliev (Representing the Jakyp Farmers’ Group) Lot-1 Lot-2 Lot-3 Lot-4 Control（Hay only） Hay & Whole Barley Hay＆Crushed Barley Hay, Barley＆supplement
Tian Shan Kyrgyz Tian Shan Kyrgyz Tian Shan Kyrgyz Tian Shan Kyrgyz Breed No.of Sheep (Wether*)
5 5 5 5 5 5 5 5
* Due to availability of wether, some ram and ewe were introduced as a substitute.
Feed application per head Lot-1 Lot-2 Lot-3 Lot-4 Hay 3.0 1.5 1.5 1.5Barley（whole） 0 0.65 0.3 0.25Barley（crushed） 0 0 0.45 0.35Supplement 0 0 0 0.25
Application Time: Same as the 2nd Stage
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Table 2-2-4(4) Design of the Sheep Fattening Experiment for the 4th Stage
4th Stage 1) Lamb Fattening
Duration Between October 2006 and January 2007 Fattening Period around 90days Hay Sainfoin[Onobrychis viciifolia] Age of sheep 7 months in October, 2006 Site Site-1（Chon Ming –Bulak village, Ming-Bulak A/O） Cooperating Farmer Asanbek Esenbekovich (Representing the Esenbai Farmers’ Group) Lot-1 Lot-2 Lot-3 Lot-4 Control（Hay only） Hay & Whole Barley Hay＆Crushed Barley Hay, Barley＆supplement
Tian Shan
Kyrgyz
Gessr Tian Shan
Kyrgyz
Gessr Tian Shan
Kyrgyz
Gessr Tian Shan
Kyrgyz
GessarBreed No.of Sheep (Wether*)
5 5 5 5 5 5 5 5 5 5 5 5
* Due to availability of wether, some ram were introduced as a substitute.
Feed application per head Lot 1 Lot 2 Lot 3 Lot 4 Hay 2.0 1.5 1.5 1.5Wheat Barley（whole） 0 0.5
0.6 0.3 0
Barley（crushed） 0 0 0.20.35
0.50.6
Supplement 0 0 0 0.2
Application Time; Same as the 1stStage
2) Sheep Fattening
Duration Between October 2006 and January 2007 Fattening Period around 90days Hay Sainfoin [Onobrychis viciifolia] Sheep age 19 months in October 2006 Site Site-2（ Ornok village, Ming-Bulak A/O） Cooperating Farmer Muratbek Omuraliev (Representing the Jakyp Farmers’ Group) Lot Arrangement for Breed; Same as Lamb Fattening
Feed application per head Lot-1 Lot-2 Lot-3 Lot-4 Hay 3.0 1.5 1.5 1.5Wheat Barley（whole） 0 0.5
0.65 0.3 0.25
Barley（crushed） 0 0 0.20.45
0.20.35
Supplement 0 0 0 0.25
Application Time; Same as the 1st Stage
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Figure 2-2-4 (1) Layout of Experiment Setting
Site-1 Esenbai Farmers’Group Experiment for Lamb ( 7 month in case of Stage 1) Raspberry plants Pasture
Residential Building North Watch Dog Lot-2 Lot-3 Dung Hay Barley Heap Pasture Water
Bill Board Lot-4 Lot-1 Hay with Plastic Cover Feed
Stock
Site-2 Jakyp Farmers’Group Experiment for Wether (19 month old in case of Stage 1)
Lot-4 Lot-3 Lot-2 Lot-1 Hay storage with Slate roof
Bill Board Feed Stockroom
North
Residential Building Watch Dog
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7) Project Management Organization As the first step in the pilot project implementation, a steering committee and a project implementation unit (PIU) was planned to be established at Rayon level. Organizational structure is shown in Figure 2-2-4(2). (1) Steering Committee In June 8, a meeting held at Naryn rayon administration office with attendance of Akim (Head of rayon), Mr. Almir (Head of Agriculture department), Mr. Balbaev (Project leader, Regional Manager of RAS Naryn) and Watanabe from JICA study team. Project leader reported the result of 2nd stage and the progress of 3rd stage verbally. Akim informed the member about an issue of road maintenance going to jailoo (summer pasture land). Because of that, some suitable jailoo for grazing were not fully utilized. According to the farmers, A/O will not charge the fee for grazing at such remote jailoo, then nobody do the road maintenance. However, some limited farmer occupied the jailoo with good access at nominal fee for long years which became an hot issue among the farmers who claim a right to use a land.
(2) Project Implementation Unit An information to be modified after Progress Report 4 in February 2006, is an assignment of new sheep
specialist named Mr. Duishanbek Sherimbekov 45 years old (Zoo technician). Since last December 2005,
he was assigned temporaly and familized himself with the Pilot Project.
Figure 2-2-4 (2) Organizational Structure for Pilot Project Implementation
8) Implementation Record and Schedule of the Project
The project was implemented in a series of 3 stages between the 1st and 2nd year. The 4th stage is underway.
The project implementation record is shown in Table 2-2-4(5).
Monitoring & Consultation
Training Distribution, Guidance
JICA Study Team / National Staff
Steering Committee Representative of Rayon Administration Representative of JICA Study Team Project Leader
Monitoring & Evaluation
Jakyp (Site 1) Farmers’ Group
Esenbai (Site 2) Farmers’ Group
Other Farmers’ Groups
Supervision Reporting
PIU (RAS Naryn)Project Leader, Sheep Specialist, Economist, Assistant
Sheep, Hay & Feed
Pilot Project Sites
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Table 2-2-4 (5) Summary of the Implementation Record
Activities in 2005/2006/2007 Month
2005 Jul-Sep
Oct-Dec
2006 Jan-Apr
Nay-Jul
Aug-Sep
Oct-Jan
2007 Feb
Stage; 1st to 4th （No. of days）
1st (90)
2nd (90)
3rd (60)
4th (90)
Detailed Procedure
Sheep purchasing
Fattening & Rearing Management
Guidance to Farmers
Selling Sheep
Analysis & Evaluation
9) The results of the Experiment
(1) The First Stage Data from the 1st stage of the experiment is shown in Table 2-2-4(6) and the result could be summarised as follows.
a) Feed comparison; Hay-fed lot shows poor weight gain for both 18 and 6 month-olds. Daily gain of
hay with crushed barley for lamb appeared remarkable, probably due to undeveloped sheep
b) Breed comparison; The Kyrgyz breed appeared to gain weight better than the Tien Shan c) Age comparison; Daily weight gain, of both 18 & 6 month old Tien Shan was 112g /day, while the
Kyrgyz showed a poor daily gain of 53g/day.
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Table 2-2-4 (6) Summary of Weight Increase Data of the Sheep Fattening Experiment for the 1st Stage
1st Stage; Oct 01-Dec 24 (84 days)
Average weight (kg)
18 month old Wethers Oct.01
Oct.15
Oct.28
Nov15.
Dec.02
Dec.24
Kg Daily gain
Gained
Feed supplied Breed 14day 27day 45day 62day 84day Gained g/day %1 Hay Tien Shan 43.8 44.8 46.1 45.4 45.4 46.1 2.3 29 5%2 Hay, Whole Barley Tien Shan 43.1 44.7 46.6 50.3 51.6 54.9 11.7 147 21%3 Hay, Crushed
Barley Tien Shan 47.7 48.4 51.1 54.7 57.5 60.8 13.1 163 22%
4 Hay, Barley Crushed/Whole
Tien Shan 54.5 56.0 57.7 59.0 61.11
63.2 8.7 109 14%
1 Hay Kyrgyz 41.8 43.0 44.5 44.0 44.4 45.5 3.7 46 8%2 Hay, Whole Barley Kyrgyz 39.5 40.1 40.8 42.3 42.8 44.1 4.7 59 11%3 Hay, Crushed
Barley Kyrgyz 38.3 38.7 39.5 40.7 41.7 42.8 4.5 57 * 11%
4 Hay, Barley Crushed/Whole
Kyrgyz 40.1 40.8 41.6 42.2 43.1 44.2 4.1 51 9%
1st Stage; Oct.01-Dec.26 (86 846 days)
Average weight (kg)
6-month old Wethers Oct.01
Oct.15
Oct.28
Nov15.
Dec.02
Dec.26
Kg Daily gain
Gained
Feed supplied Breed 14day 27day 45day 62day 86day Gained g/day %1 Hay Tien Shan 33.6 34.2 35.0 38.3 38.9 41.0 7.4 93 18%2 Hay, Whole Barley Tien Shan 34.8 34.9 36.2 39.8 39.5 41.8 7.0 88 17%3 Hay, Crushed
Barley Tien Shan 32.8 33.2 34.9 39.1 41.7 44.5 11.7 146 26%
4 Hay, Barley Crushed/Whole
Tien Shan 54.5 56.0 57.7 59.0 61.11
63.2 9.6 121 24%
1 Hay Kyrgyz 28.5 28.9 29.5 31.9 32.4 34.0 5.5 69 16%2 Hay, Whole Barley Kyrgyz 26.3 26.4 27.2 29.5 29.3 30.8 4.5 56 15%3 Hay, Crushed
Barley Kyrgyz 28.2 28.5 29.9 33.2 35.3 37.5 9.3 116 * 25%
4 Hay, Barley Crushed/Whole
Kyrgyz 28.7 28.9 29.6 31.9 35.3 36.7 8.0 100 22%
(2) The Second Stage Data from the 2nd stage of the experiment is summarized in Table 2-2-4(7) and the result could be concluded as follows.
a) Feed comparison; during winter, Daily gain of hay-fed appeared to be remarkably low for both lamb and wether at the rate of 70-108g/day. tre became little difference betwn hay-fed & barley by spring.
b) Breed comparison; Kyrgyz breed appeared to be better in weight increase compared with Tian Shan breed during the mid-winter. Especially at Barley-fed lots recorded significant daily gain like 215-285g/day. In spring, the significant difference by breed was not observed among two breeds.
c) Age comparison; Daily gain rate of 22-month old wether is higer than 10-month old lamb, however percentage of total weight gain of 10-month lamb during period is slightely higher.
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Table 2-2-4 (7) Summary of Weight Increase Data of Sheep Fattening Experiment
for the 2nd Stage 2nd Stage; Jan.23-Apr.13 (80days）
Average weight (kg)
22month old Wether Jan.23
Feb.21
Mar.09
Mar.23
Apr.04
Apr.13
Kg Daily gain
Gained
Feed supplied Breed Started 29day 45day 59day 71day 80day Gained g/day %1 Hay Tien Shan 41.7 43.2 44.1 47.1 49.3 49.2 7.5 94 15%2 Hay, Whole
Barley Tien Shan 42.2 45.9 47.1 50.6 52.4 53.3 11.1 139 21%
3 Hay, Crushed Barley
Tien Shan 50.8 51.0 51.0 55.5 56.4 57.2 6.4 80 ? 11%
4 Hay, Barley w/Supplem't
Tien Shan 40.5 43.1 44.0 45.6 46 45.8 5.3 66 ? 12%
1 Hay Kyrgyz 43.0 46.4 46.3 49.7 51.8 51.6 8.6 108 17%2 Hay, Whole
Barley Kyrgyz 47.2 53.8 55.0 69.0 62.2 64.4 17.2 215 27%
3 Hay, Crushed Barley
Kyrgyz 48.3 59.2 61.1 68.0 72.1 71.1 22.8 285 * 32%
4 Hay, Barley w/Supplem't
Kyrgyz 40.8 43.8 47.4 49.7 52.1 53.7 12.9 161 24%
2nd Stage; Jan.16-Apr.13 (87days）Average weight (kg)
10month old Wether Jan.16
Jan.31
Feb.16
Mar.01
Mar.15
Mar.28
Apr.13
Kg Daily gain
Gained
Feed supplied Breed Started 15day 31day 44day 58day 71day 87day Gained g/day %1 Hay Tien Shan 27.9 27.8 28.8 31.6 32.0 31.0 34.0 6.1 70 20%2 Hay, Whole
Barley Tien Shan 33.0 34.0 35.6 39.7 40.2 40.8 43.8 10.8 124 26%
3 Hay, Crushed Barley
Tien Shan 33.8 35.6 36.4 39.2 40.7 41.7 44.2 10.4 120 25%
4 Hay, Barley w/Supplem't
Tien Shan 32.6 33.2 35.7 39.8 40.8 40.7 44.0 11.4 131 28%
1 Hay Kyrgyz 30.2 31.8 32.8 36.0 36.8 36.5 39.3 9.1 105 25%2 Hay, Whole
Barley Kyrgyz 28.8 31.2 33.8 37.4 38.1 39.3 43.4 14.6 168 37%
3 Hay, Crushed Barley
Kyrgyz 29.2 30.8 34.4 36.7 37.0 38.6 41.4 12.2 140 32%
4 Hay, Barley w/Supplem't
Kyrgyz 31.5 32.8 35.7 37.3 39.8 41.3 43.6 12.1 139 ? 29%
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(2) The third stage During spring, sheep is supposed to be taken to jailoo and start to graze. Data from the 3rd stage of the experiment is summarized in Table 2-2-4(8) and the result could be concluded as follows.
a) Feed comparison; Hay-fed and barley-fed don't show any difference, especially for 26 month old
wether. Only the lot with supplement shows little higher rate of daily gain.
b) Breed comparison; Also not significant.
c) Age comparison; Not significant.
d) Daily gain rate of 22-month old wether is higer than 10-month old lamb, however percentage of
total weight gain of 10-month lamb during period is slightly higher.
Table 2-2-4 (8) Summary of Weight Increase Data of Sheep Fattening Experiment for the 3rd Stage
3rd Stage; May09-Jul.07 (59days)
Average weight (kg)
26month old Wether May09 May24 Jun08 Jun23 Jul.07 Kg Daily gain
Gained
Feed Supplied Breed Started 15day 30day 45day 59day Gained g/day %1 Hay Tian Shan 43.9 46.4 49.1 48.6 52.9 9.0 153 17%2 Hay, Whole Barley Tian Shan 47.6 49.4 52.5 55.0 55.6 8.0 136 14%3 Hay, Crushed Barley Tian Shan 49.7 51.7 54.6 56.1 57.6 7.8 133 14%4 Hay, Barley w/Supplem't Tian Shan 52.1 54.3 58.3 59.5 62.6 10.5 178 17%
1 Hay Kyrgyz 45.8 48.5 52.1 50.7 53.1 7.3 124 14%2 Hay, Whole Barley Kyrgyz 47.3 47.5 52.2 53.8 54.6 7.3 123 13%3 Hay, Crushed Barley Kyrgyz 51.2 54.4 56.7 58.9 61.2 10.0 169 16%4 Hay, Barley w/Supplem't Kyrgyz 53.0 54.0 60.4 60.4 63.6 10.6 180 17%
3rd Stage; May09-Jul.07 (59days)
Average weight (kg)
14 month old Wether May09 May24 Jun06 Jun23 Jul.07 Kg Daily gain
Gained
Feed Supplied Breed Started 15day 28day 45day 59day Gained g/day %1 Hay Tian Shan 30.4 32.9 35.0 36.1 37.8 7.5 126 20%2 Hay, Whole Barley Tian Shan 35.1 38.0 40.0 41.9 45.7 10.6 180 23%3 Hay, Crushed Barley Tian Shan 35.5 40.2 39.9 42.7 45.3 9.7 165 22%4 Hay, Barley w/Supplem't Tian Shan 39.3 45.5 46.5 51.6 54.7 15.4 260 28%
1 Hay Kyrgyz 29.6 31.2 32.3 34.5 37.9 8.3 140 22%2 Hay, Whole Barley Kyrgyz 32.4 37.4 39.5 40.8 43.9 11.5 194 26%3 Hay, Crushed Barley Kyrgyz 32.4 38.3 38.1 41.1 41.3 8.9 150 21%4 Hay, Barley w/Supplem't Kyrgyz 34.4 39.3 39.1 41.6 44.1 9.7 164 22%
At the start of the experiment of the 1st Stage, many sheep especially the lamb had diarrhoea and some even lost weight due to stress caused by the sudden change of environment and being transported by lorry from their pastures. On the pastures the sheep ate only fresh pasture grass and were only fenced in at night but in the experiment they were kept under cover permanently and fed with hay and barley. Even though day by day, sheep accustomed the feed and new environment with help of anti-diarrhoea and anti-parasite medication.
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From the 2nd stage, we encountered a difficulty of finding sheep with the uniform size and appearance. Beside their growth also not uniformed that some of them increase the weight, some does not. After inspection by slaughtering sheep, we found several types of parasites such as an echinococcus and fasciola.
Recently, outbreak of foot and mouth disease was reported and brucellosis is also rampant. To ensure the sustainable livestock farming, we must understand the situation and characteristics of disease and parasites to take appropriate countermeasure. (3) Result of Marketing of 2nd & 3rd Stage
a) Marketing plan for wether and lamb of experiment by six ways
During 2nd stage; 1 to 3 way were employed
For 3rd stage; 1 to 6 way were employed for comparison & inspection of meat.
1-way: Sale by slaughtering in Bishkek (It was done in livestock market of Bishkek)
• Skin (separately)
• Head and legs (separately)
• Intestine (separately)
• Carcass meat (separately)
2-way: Sale of sheep in Bishkek by shearing (to bring to marketable state)
• Wool (separately)
• Live sheep sale of each head of sheep (separately)
3-way: Sale from site (Sale of sheep at market “Ornok” in Naryn)
• Specialists and farmers sold together at each time of market day. 4-way: Sale of sheep in Atbashy market in Naryn (Every Sunday)
• Live sheep sale of each head of sheep
• Specialists and farmers sold together at each time of market day.
5-way: Sale from site (Sale of sheep at market “Naryn” in Naryn)
• Live sheep sale of each head of sheep
• Specialists and farmers sold together at each time
6-way: Sale by slaughtering in Naryn (Slaughter done at “Naryn-et” in Naryn)
• Specialists and farmers sold together at each time.
Present Marketing Channel of the project is shown on Figure 2-2-4 (3). Live and slaughtered sheep for meat inspection is appeared on Picture 2-2-4 (4).
The six marketing routes for the sale of mutton carcasses, slaughtered in Naryn, could be arranged directly with the buyer in Bishkek instead of those in Naryn by way of prior agreement with the former. By doing so, the transportation cost of live sheep could be reduced.
This method, however, entails the introduction of reliable transportation facilities (e.g. cold storage vehicles) to keep the good quality of the mutton carcasses during the hot season and pre- arranging delivery conditions with the suppliers. This method of transaction could be sustained based on a mutual trustworthy relationship between both parties; the supplier will continue to supply good quality sheep and the buyer will purchase at reasonable prices.
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The buyer will purchase live sheep at the rate of “live weight x 50 % (dressed carcass percentage) x sale price of carcass” and will be able to get a profit from the balance between the sale value of the head, skin (pelt) and the innards, minus slaughtering charges, plus a delivery fee per head from the butcher.
In Naryn rayon, after slaughtering the sheep, the innards (particularly intestines) are inspected, washed and soused on the spot for export and skins are delivered to the skin traders. These additional incomes belong to the slaughterer. Clients pay a veterinary inspection fee and receive the mutton carcass marked with a blue stamp.
Accordingly, in the sale of mutton carcasses, middlemen other than the butcher can get their profits only from the sale value of the carcass, resulting in lower purchasing prices for carcasses as they cannot get any profit from other parts of the animals. (The marketing routes for the innards are quite limited and sometimes they are difficult to sell. As a result, they are often cooked at home for parties or entertaining guests.)
JICA Experiment
Clients A : Distributer Trader Meat Processing Factory
Clients B: Consumer Super Market Restaurants
Meat Shops Butcher
Clients C: Broker, Buyer at spot base
Consumer Individual
Foreign Market Trader
Most stable & highest
price expected
Second best
Possibility in future
Not accepted
Slaughter
Figure 2-2-4 (3) Marketing Channel of Naryn Fattening Project
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b) Difference by way of sales
Through the experiences of the sale, prices of sheep clearly differed by place, style and situation.
Place; Bishkek > (Ornok) > Atbashu > (Naryn) by chance small market easily fluctuate Style; Live > Slaughter For good negotiation knowledge of Marketing system and Present market price is essential, and good make better negotiation by informing to buyer before hand. Due to recent hike of petroleum, system of reducing the cost of transportation System of constant & sustainable supply is must be established for the benefit of sheep farmers and buyer/supplier as well as consumers. 10) The third monitoring and evaluation
The second stage was implemented during mid-winter (January16 to April 13, 2006) and the third stage started during mid-spring (May 09 to July 07, 2006).
The results of the monitoring and evaluation are summarized below in accordance with the PDM
1. Increased weight after fattening: At the second stage, in spite of the harsh winter, the weight of the live animals increased significantly for those fed on barley, particularly the Kyrgyz breed that increased by 20 to 38 %. At the third stage, fattening in spring showed a remarkable increase in live weight for both species, particularly those of 14-month old that increased their weight by more than 20% and some increased by 28%, in all the experimental stations. Even in the case of those of 26 months old, the weight increased by 13 to 17%. In the fattening during spring, special attention should be paid to the fact that the effect of barley fattening, clearly seen during the winter, did not appear at all. It also became apparent that fattening in the hut during the spring would not produce any significant effect, as there was no difference in weight increase between sheep of the same age raised on pastures and those raised in huts. At the same time, it was also noted that fattening in early spring using stocked hay before June would make it possible to supply in the season when sheep were scarce in the market. In addition, a higher percentage of weight increase of 19 to 25% was recorded for 3 rams put in with mainly castrated male sheep. As for ewes, there were no significant differences between them.
2. Improved meat quality: At the third stage, meat quality was inspected, in addition to checking weight increase. There was no noticeable difference in the quality of meat between experimental areas and breeds, but abnormal livers caused by intestinal worms were observed. According to brokers in Bishkek, mutton produced in Naryn rayon has a good reputation as quality meat, as it does not contain any agro-chemicals and so they mostly deal with mutton produced in Naryn.
Information from livestock specialists and farmers in Naryn has shown that sheep reared on pastures in Aksay, at 4,000 m or higher, have fine, firm muscles although the area is poorly covered by short grass. It has been mentioned that the quality of sheep raised in the Aksay area is far better than those produced in Chui region at an altitude of 700 to 800 m. This observation might make people prefer sheep raised in Naryn rayon. It will take some time until consumers accept different quality meat at different prices, considering that all mutton is sold at the same price, regardless of where it comes from.
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However, stressing that sheep in Naryn are all raised on beautiful pastureland and are fattened on hay and barley produced in Naryn during winter, is a good selling point that could expand the marketing of Naryn mutton in the future.
2-2-5 Technical transfers
1) During the preparations for the pilot project, guidance and technical transfers were given to farmers' groups and the sub-contractor's local specialists in accordance with the experiment's design.
2) For smooth implementation and cooperation among the farmers' groups10, the sub-contractor, local government and the JICA study team, friendly cooperative relationships have been promoted during the setting up of the pilot project's experiment.
3) New rayon chief (Akim) in Naryn rayon was appointed in the end of September, therefore the JICA study team paid a courtesy visit to the new Akim and explained a scheme of the P/P. Akim understood an outline of the P/P and, promised full-support and cooperation to the P/P.
4) As publicity activities of the pilot project, the concept of the pilot project was explained to the local media and the Governor of Naryn oblast during the courtesy call on July 8th 2005.
To aim the spill over effect and to attract attention to the pilot project, the Opening Ceremony of the pilot project was held on site on November 24th in the presence of the Naryn rayon chief (Akim) and a delegate from Naryn oblast, several chiefs of A/Os and farmer groups. Moreover, the outline of the experiment of the pilot project was again explained to the local media.
5) The study team initiated an exchange of views with the Nzaid team, which has started to implement a Strengthening Livestock Communities in Mountain Regions project working on livestock issues in Kyrgyzstan. They have set their daily project at east of Naryn.
2-2-6 Accomplishment and Issues of Project Implementation
1. Accomplishment of the Project The result of an examination of a sheep clarifies the following matters about sheep fattening, and shows
how to work on fattening.
1) Sheep do not gain weight for a certain period after coming back from summer & autumn grazing land, therefore they need time to grow accustomed to the environment of a sheepfold and dry hay.
2) The fattening pattern of sheep differs by breed or strain during winter and the fattening pattern must be followed.
a) The Tien Shan breed gains weight at the beginning of the fattening pattern and keeps the weight during mid-winter.
b) The Kyrgyz or local mixed breed shows better performance during mid-winter.
3) The fodder mixture for fattening is based on the JICA barley fed table.
4) It is designed for lambs aged 6 to 12 months with crushed fodder. Supplements are not necessary.
5) Fattening during spring results in excellent weigh gains, however it is unfeasible.
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6) The above-mentioned points will be compiled into a Sheep fattening Manual for distribution in Naryn soon.
I. Guidance for Sheep Fattening Season begins; Between November and December Time of travel varies according to the state of the pastures. The fodder combination for fattening would be given to sheep about a week after returning from the pastures to the sheep barn when the sheep have become accustomed to eating hay. Period of Fattening; until the targeted week for sale from 60 to 120 days Normally the fattening period would be about 90 days (3 months), and determined through monitoring the price in the main market by checking the weekly RAS market price, especially at the end and beginning of the year or Kyrgyz New Year (March 21st, the day of the Spring equinox). Sheep for Fattening; Wethers about 8 months old or more than 20 months old and,/ or Rams less than 20 months old at the start of fattening. Fodder combination; Hay (made of leguminous fodder like Esparcet [Sainfoin] or Lucerne [Alfalfa] Barley, Rock salt (Amount would be adjusted based on sheep weight) Marketing Route; In case of big volume sales = Bishkek (stable price) In case of sale in the local market = Batch sale (select fattened sheep only) Transport; Utilize a Cooperatively owned lorry or negotiate with transporters or find a buyer who will include transport in the purchase price Conditions for Buying and Selling; Prior to sale, agree in principle the number of head and price. Basic agreement is a must. Without prior arrangement, a buyer cannot arrange a daily distribution routine and might be offered unexpectedly low prices or price cuts.
II. Conditions for Making a Profit – 1 (Reduction in production costs and risk management)
1. Use of self-produced forage 1) Hay The price of hay depends on the harvest, temperature and duration of winter etc. Unfavorable weather conditions during the summer will lead to higher prices for hay due to a poor harvest. A prolonged winter will result in higher prices for hay due to increased demand. The price of hay in autumn 2005 was 3 soms/kg. It increased to 6 soms/kg in spring 2006 and stayed at that price until autumn 2006 due to increased demand for hay. 6 soms/kg is equivalent to a hay cost of 18 soms/day and it will be necessary to get an increased meat weight of 277 g per day, which is the maximum incremental weight in winter, to reach a break-even point at a sale price of 65 soms/kg. It is recommended that fattening depending on supplies of forage from others should be avoided even if there are no sudden increases in the price of forage. Forage such as esparcet (a kind of leguminous grass) and alfalfa are suitable for the weather conditions in Naryn and can be intensively grown by watering 2 – 3 times during the growing period. The harvest will be lower in the first year, but from the second year onwards, there will be 2 harvests a year with yields of 5 to 8 tons/ha.
By putting hay into a rotational crop system, the fertility of soil can be improved without any chemical
fertilizers thanks to the function of fixing air nitrogen by rhizobium. For example, a cooperative farmer in
the pilot area could increase the yield of barley from 1 ton/ha to 2.5 tons/ha. Esparcet is not only suitable
for dry land cultivation, but also effective in improving soil fertility.
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Cultivation of leguminous grass can contribute not only to increased supplies of forage for sheep, but also to increased grain yields. Converting forage into increased weight of sheep increases the value of live animals.
To summarize, growing forage will improve: (i) risk management against sudden price rises for forage; (ii) soil fertility; and (iii) give added value to forage.
2) Barley
As in the case of hay, barley is also necessary for fattening sheep. Barley is the most important fodder with a full content of protein (concentrated fodder) that can be cultivated even in the harsh weather conditions in Naryn. After independence, productivity per ha fell due to lack of chemical fertilizers. This situation could be improved by introducing leguminous grass as mentioned above.
3) Stubble on dry land
In addition to grass and wheat straw, stubble left after grain harvesting can be utilized as fodder for sheep grazing in late autumn and winter when there is not a lot of snow. Stubble plays an important role in the smooth adaptation to fodder for sheep when those sheep on remote pastures are transferred to the hut.
2. Sheep for Fattening
It is recommended that sheep for fattening should be selected from the sheep raised by the shepherds themselves considering the risk of diseases and environmental adaptation as mentioned below. Using the shepherds' own sheep has several merits, such as: risk management of diseases and environmental adaptation of sheep and no payment to purchase sheep.
Beginners at fattening sheep can start by fattening their own sheep using fodder cultivated by themselves. After several years experience they can try to expand their operations by purchasing sheep from other suppliers. Suitable sheep for fattening should have long bodies with broad, strong skeletons, sound legs, and strong thighs and should not be very nervous.
Risk from introducing sheep from outside
Diseases: Serious livestock diseases occurred in Kyrgyzstan during the pilot study (one year and several months). Due to the occurrence and spread of foot and mouth disease in the southern region, the livestock market in Bishkek was closed for about a month. An outbreak of anthrax was also recorded in the southern region. A total of 200 sheep died of infectious diseases in August in Ak-tala and Kara-Kujur in Naryn rayon. There is another disease prevalent in the region. On the outbreak of such diseases, measures to prohibit the movement of livestock are not taken. MAWRPI usually takes control by way of vaccinations. The details on the control of such diseases are not clearly reported in the media. In such a situation, there is a possibility of the livestock market being infected by some kind of serious diseases due to the ignorance of the livestock traders.
Environmental adaptation: It will take some time for livestock raised on pastures to adapt to the environment of the hut. The kind of fodder will also be changed from fresh grass on the pastures to hay in the hut.
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III. Conditions for Making a Profit – 2 (Sale at profitable prices)
In order to make a good profit in the fattening business, it is necessary to sell sheep at as high a price as possible and reduce rearing costs.
Choice of Sales Point in Naryn or at Bishkek
Usually buyers from Tokmok, Bishkek, etc. visit Naryn to buy live animals on the pastures. They pay cash on the spot to get a large number of animals, which are loaded onto trucks and taken to their destination. Sheep of small-scale farmers are often raised together with those of relatives and farmers' groups and are occasionally sold to buyers together with those of the other owners. The buyers also visit the homes of farmers to purchase sheep and need 30 head for a small truck and 50 to 60 head for a large truck. The buyers purchase several hundred sheep during their stay in Naryn. Transactions are conducted on the pastures or at the homes of sheep owners.
Some sheep moved from pastures to farmers’ homes are also taken to local livestock markets to be sold. There are livestock markets in every district open once a week. The livestock market in the town of Naryn is open every day for sales of sheep and goats.
Farmers usually sell their livestock when they need cash, especially to pay school fees before the start of each year, at the end of August. Accordingly, August/September is a good time for livestock buyers, as the prices are lower than at other times and individual farmers are also seeking better quality livestock to increase their flocks.
The question is: Where is the best place to sell the fattened sheep? Mere comparison of the selling price indicates that the price in Bishkek is higher by 400 to 1,000 soms per head. The cost of transport from Naryn to Bishkek is 5,000 to 6,000 soms per large truck (50 to 60 head of sheep), which is equivalent to 100 to 160 soms per head. There are some facilities near Bishkek where sheep can be held temporarily and where fodder can be provided. The total cost is about 200 soms per head. It seems that selling in Bishkek is better than in Naryn, but it should be considered that sales sometimes involve certain risks. For instance, when selling large numbers of sheep, the buyers often demand lower prices that are far below the expected selling prices.
Choice of Selling Live Animals or Dressed Carcasses
Farmers consider it more beneficial to sell live animals than to sell carcasses after slaughtering as they have no definite marketing channel for selling heads, innards, skins, etc. Higher prices can be expected when selling live animals.
a. selling live sheep: live weight 60 kg x 60 soms/kg = 3,600 soms b. selling carcasses: carcass 30 kg (50% of live weight) x 110 soms/kg = 3,300 soms
The buyers can profit from selling heads, innards and skins, even if they pay the cost of slaughtering. If farmers can arrange to sell the innards at a price of more than 300 soms, they will be able to make more profit from selling carcasses. However, it is not considered realistic at the moment.
2. Project Problems As mentioned above, it is not very realistic for farmers to be able to sell the heads, innards and skins for more than 300 soms so that they can make a good profit from selling a carcass. To do so, it would be necessary for them to have some equipment and technical skills for processing.
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It is widely mentioned that the infrastructure and facilities installed in Kyrgyzstan in Soviet times has not been properly operated and maintained, partly due to a lack of funds at local government level and partly to lack of budgetary management.
In the case of a village in Naryn, the access roads to pastures has not been properly maintained due to rents not being collected and the rents have not been paid due to the poor maintenance of the access roads. Although the trunk road connecting Bishkek and Naryn is maintained under financial assistance from Japan, the main roads in the town of Naryn are poorly maintained. In the town, there are power cuts almost every day. The water supply system is being improved through World Bank assistance. Under these conditions, the livestock industry in Naryn faces a turning point.
The ultimate objective of the pilot project is to contribute to alleviate poverty in Naryn region through the sheep fattening pilot project as a means for improving the livestock industry. In order for the sheep fattening technology to be expanded to other technological areas including breeding, it will be necessary to establish a comprehensive long-term livestock development plan.
The problems identified during the pilot project study are mentioned below. The framework for the action plan will be described in Chapter 3.
1. Livestock hygiene problems
2. Breeding of superior varieties
3. Evaluation of pastures and optimum use of resources
4. Collaboration between the agricultural and livestock industries
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