Uzbekistan Agribusiness Overview
June 2006
Prepared by Mr. Jahangir Kakharov,
BISNIS Representative, Tashkent, Uzbekistan
INTERNATIONAL
COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE,
2006. ALL RIGHTS RESERVED FOR USE OUTSIDE OF THE UNITED STATES.
Slightly bigger than the State of California,
Uzbekistan is the fifth largest country in the former Soviet Union with a
territory of 477,400 sq km. Agricultural land occupies more than 4.8 million
hectares about 10% of which is arable land.
Russia conquered Uzbekistan in the late 19th century.
During the Soviet era, intensive production of "white gold" (cotton) led
to overuse of agrochemicals and the depletion of water supplies, which have
left the land poisoned and the major rivers half dry.
Since Uzbekistan’s independence in1991, the government
has actively pursued a policy of diversifying the country's agriculture. A
major policy objective has been to achieve domestic food security, promoting
expansion of grain production at the expense of feed/fodder and cotton. The
government has also expressed commitment to the phased privatization of farming
and the development of a market-oriented economy.
Under the Soviet Union, Uzbekistan was designated as a
main producer of cotton with 80% of total irrigated land devoted to that crop.
Although wheat accounted for 85% of staple food consumption, Uzbekistan
produced less than 20% of the wheat it consumed. After independence in 1991,
Uzbekistan's access to wheat became less secure because of the abolition of
subsidies and of the centrally administered barter system, and because of the
instabilities of the regional economies. A landlocked country with limited
access to international markets, food security in Uzbekistan has been a major
concern.
Agriculture has a pivotal role in the Uzbekistan
economy, accounting for about 30 percent of gross domestic product, 45 percent
of employment, and 60 percent of export earnings. The sector is dependent on
irrigation, and there is little scope for further expansion of the arable area.
The short growing season typically restricts agriculture to a single crop each
year.
With an average annual rainfall of 100–200
millimeters, crop farming in Uzbekistan is heavily dependent on irrigation.
About 88% of the country’s 4.8 million hectares (ha) of arable area is
irrigated. Irrigation water supplies come almost entirely from the Amu Darya
and Syr Darya rivers.
The agricultural development strategy of Uzbekistan is
chiefly guided by a “Program for Strengthening Reforms in Agriculture,”
developed in March 1998. Reflecting major sector concerns, the program pursued
three main goals: (i) generate robust foreign exchange earnings, mainly
through the sale of cotton; (ii) improve food security; and (iii)
promote rural employment, enhance living standards, and ensure social
stability.
According to Bearing Point report “Tendencies in
Uzbekistan Farm Production”, from about ten different organizational units and
types of ownership, the government has identified the three most appropriate
for conditions in Uzbekistan. The main condition limiting land reform and farm
reorganization is the prohibition of private ownership of land. In addition, it
is forbidden to use land as collateral for receiving bank loans or to sell land
plots. The government as a main reformer assumes that private ownership of land
causes fragmentation of the area under cultivation, destroying the irrigation
systems, which results in declining cotton and grain production – an important
source for the state budget. In addition, it is presumed that the creation of
large land ownership could become a factor of instability and a reason for
conflict in society. Therefore three types of farming have been deemed
appropriate for reorganizing agriculture in Uzbekistan and are currently
operating in the country: Agricultural Cooperatives (Shirkats), Dekhkan
Farms and Private Farms.
Agricultural Cooperatives (Shirkats) are the
legal successors of former kolkhozes and sovkhozes, dealing
mainly with the production of the strategic crops cotton and wheat. This is the
biggest production unit: the average size of farms in Sirdarya province
were1554 ha and in Bukhara province 896 ha. The agricultural cooperative
consists of smaller units called oilavii pudrat – family contractors
(previously brigads). Land is owned by the state and the cooperative
receives land for unlimited use for agricultural purposes. There are two types
of contract agreements shirkats have with contractors. One is a production
contract with a family of contractors for one year. The contract usually
includes the production amount of the main crops – cotton and wheat. Shirkats
are obliged to guarantee the supply of all necessary material and technical
resources. The other is a land rental agreement, which is usually made for a
longer term. At the beginning of each year the shirkat administration receives
a state order plan from a top-level government organization, which identifies
the amount of production and area to be sown. It is prohibited to grow crops
different from the state order. The average size of family contractors in
Bukhara province was 15.9 ha, while in Sirdarya province it was around 18.2 ha.
The labor intensity per unit of arable area also differs by region. In Sirdarya
province it is 0.41 worker per ha, while in Bukhara province it is 0.23. The
main share of employees in oilavii pudrat are family members, with both
provinces having about the same share, about 83%.
Private Farms – Fermer Khohajaligi are
considered a new market-oriented production unit. Private farms (averaging
about 20 hectares nationally) increased in number quickly in the late 1990s
(reaching about 63.000 in 2002), accounting for almost 1.2 million hectares in
2002. Private farms received land from the state for a long- term lease of up
to 50 years. However, investigations show that in Sirdarya province only 16.9 %
of farmers have leased land for 50 years, with 80 % of farmers receiving land
for 10 years and only 2.1 % receiving land for 20-30 years. According to the
Law on Farms (1992), private farmers are fully independent from local
authorities and shirkats in organizing agricultural production. However,
studies show that private farmers also have to produce state ordered crops,
limited not only to cotton and wheat, but also including fruit, vegetables and
melons.
Dekhkan Farms – Shirkat employees and private farmers have an
additional source of income from personal household plots of less than 0.35
hectare call tomorka. Since independence the total area under these
smallholdings has increased significantly and has reached 750.000 ha. The
tomorka are usually located on former shirkat lands and are geared primarily
towards agricultural production. According to the law, house construction is
prohibited on these lands. Since 2000, the state has encouraged farmers to register
their tomorka as dekhkan farms on the basis of long term (50-year) leasing. The
registration helps farmers to receive credit, however at the same time it
increases state control on income through taxation; therefore, farmers
participate unwillingly in this program. This type of production could be
considered as a purely private type because farmers make independent decisions
on production and marketing. Limiting factors are the size, location of farm
and irrigation.
Uzbekistan has a comparative advantage in growing
cotton, making it currently the world’s fifth largest producer and the second
largest exporter of cotton. Cotton is grown on about 42% of the total
cultivated area, and accounts for close to 40% of Uzbekistan’s export earnings.
Uzbekistan has used foreign exchange proceeds from cotton exports to support
its import substitution policy and continues to depend on these earnings to
sustain its industrial production. Wheat is also regarded as a strategic crop
and is grown on 33% of the total cultivated area. As a landlocked country with
limited physical access to international markets and with food security as a
major concern, Uzbekistan has put wheat production at the center of the
Government’s policy of food security.
According to Asian Development Bank, since
independence in 1991, the overall performance of agriculture sector has been
disappointing. Continued declines were observed in the production and
productivity of the main cash crop—cotton. While the total national output of
cotton was 4.6 million tons in 1991, it dropped to 3.17 million tons in 2002
because of declines in both area and per hectare yield. The decline in cotton
production also coincided with the Government’s active promotion of policy of
food security through state-controlled pricing and procurement systems. Between
1991 and 2002, wheat production increased from 0.6 million tons to around 4.7
million tons. Much of the increases in wheat production were achieved by
expanding the land area previously used for cotton and by increasing inputs on
per hectare basis.
In line with IMF conditions and the intention to ease
the state monopoly in cotton marketing, the Government adopted a resolution in
December 2002 to allow private sector participation in cotton wholesale and
export. Issuance of the resolution was followed by the release of the
Presidential Decree on Deepening Reforms in the Agricultural Sector in March
2003. The decree directed the Government to accelerate the formation of private
farms and extend the reforms advocated by ADB and World Bank to abolish
cropping pattern restrictions nationwide. To improve farm receipts, a price
premium has been introduced for state procurement of cotton and cotton
byproducts.
Uzbekistan exports 800/900 000 tons of cotton fiber
annually, which ranks the country the 2nd largest cotton exporter in the world.
Along with cotton fiber the country also produces about 3.5 million tons of
cotton seed annually. It is estimated that cotton accounts for approximately 8%
of Uzbekistan’s GDP and 30% of agriculture sector GDP. The share of cotton
fiber in Uzbek exports decreased from 27.3% in January-March 2005 to 26.7% in
the same period of 2006. At the same time, the volume of export of cotton-fiber
increased by 2.1% year-on-year. 1.6 million hectares are cultivated annually in
cotton and around 40% of irrigated land is devoted to cotton.
According to the recent study of cotton sector of
Uzbekistan accomplished by World Bank and called “Cotton in the Global Context”, the Uzbek government has been
implementing policies aimed at reforming the cotton sector. This brought in
some results: price for raw cotton is established taking into account world
cotton prices, commodity exchange system is in place for cotton fiber exports,
farm privatization is in progress, farmers are not dependent on ginneries for financing,
and quality control system for fiber exports is established. However, there are
many remaining issues and problems that cotton sector facing. Among these are
complications in marketing system for cotton that create disincentives for
traders, inputs and credit allocation are still under state control, existence
of production quotas, lack of alternative marketing channels for raw cotton,
late announcement of producer prices, lack of competition at ginning level,
little/no foreign investment, issues related to taxation of the sector.
Another recent World Bank study – “Cotton Taxation in
Uzbekistan study” estimates in detail the major taxes and subsidies in the
cotton sector over the period 2000-2004. The study estimates major explicit (or
visible) and implicit (or hidden) taxes and subsidies. This study estimates net
transfers (taxes minus subsidies) at around 20-22 percent of farmers’ gross
cotton revenue in 2003-2004. Net of
debt forgiveness, net transfers were at around 30 percent of farmers’ gross
cotton revenues in 2003 and 2004. This
is higher than the corporate income tax rate of only 18 percent, or the maximum
personal income tax band of 30 percent. The study concludes that cotton is
over-taxed relative to other crops, therefore creating disincentives for
farmers to produce cotton relative to other crops.
However, the problem is more than just the level of
taxation. The study argues that the
current tax structure has perverse incentives which cause inefficiencies and
cotton production could be increased at no cost to the budget if input
subsidies and output taxes were reduced by equivalent amounts. The study presents a reform proposal which
is fiscally neutral and would create a net welfare gain to Uzbekistan.
More
information on the cotton sector is
available at:
1. Cotton
Taxation in Uzbekistan: Opportunities for Reform AND
2. Cotton in the Global Context
According to Asian Development Bank, before 1991,
Uzbekistan produced less than 20% of the wheat it consumed and suffered food
shortages. Wheat on average accounts for 85% of household consumption of staple
foods in Uzbekistan, which comprise mostly of wheat, rice, and
potatoes.
After independence in 1991, Uzbekistan’s access to
wheat became less secure because of the cessation of the centrally administered
barter system under the Former Soviet Union (FSU) and a growing instability of
the region’s economies. As a landlocked country with limited physical access to
international markets, food security became a major concern, and Uzbekistan
embarked on a wheat self-sufficiency program. From 1993 to 2002, aggregate
wheat output grew from 0.6 million to 4.7 million tons. With domestic
consumption estimated at 4.5 million tons, the country is becoming
self-sufficient in wheat
Despite impressive gains in grain output, the grain
production sector faces some key challenges. First, wheat production is still
vulnerable to sudden drops because the recent output growth has relied on
imported high-yielding wheat varieties (mostly from Russia) that adapt poorly
to local conditions. As a result, standing crops are prone to high summer
temperature, unstable water supply, drought, diseases, and pests (e.g.,
locusts). Second, production costs are still relatively high due to inefficient
farm input use, excessive land preparation, and untimely application of
fertilizers. Third, wheat seed production has been overly concentrated in the
eastern part of the country (Andijan province), resulting in expensive seed transport,
mixing of varieties, and poor seed adaptability to other agroclimatic zones.
Poor seed germination leads to costly re-sowing that increases farm costs by an
average of 16%. Fourth, intensive cultivation of wheat in rain-fed areas and
wheat and cotton crop rotation in irrigated areas are harming soil fertility
and structure. Fifth, the agriculture sector suffers from chronic shortages of
fertilizers and machinery services due to low farm profits and inefficient
delivery of farm inputs. State-owned enterprises still play a dominant role in
the supply of agrochemicals, seeds, machinery services, and preproduction
financing. In an environment of predetermined market shares and prices, the
enterprises have limited incentives to upgrade or expand services. The use of
poorly adapted wheat varieties and imbalanced application of fertilizers have
lowered the quality of domestically produced wheat flour, yielding bread with
low protein content.
National wheat output has also increased largely due
to the state order system, which has regulated cropping patterns (land
allocation for various crops) and the volumes of wheat and cotton farmers must
sell to the state, known as the state procurement quotas. Although the system
has helped stabilize crop outputs, it has limited farmers’ options to adjust
crop production in response to market conditions and to improve income. The
national program for wheat self-sufficiency requires the allocation of an
estimated 0.8 million ha (25%) of well-irrigated land for intensive wheat
production, thus, foregoing the land’s full economic potential for growing
higher-value crops such as cotton, vegetables, fruits, and seeds (including
wheat seeds). Overall, impediments to improving farm incomes have hampered
farmers’ ability to reinvest their earnings to increase farm productivity.
As a part of its food security strategy, Uzbekistan
aims to stabilize wheat production and prices. With outputs exceeding domestic
consumption in 2002, the Government has implemented a buffer stock management
system to stabilize wheat price. The State also intends to lessen the aggregate
state procurement of wheat in the coming years below the present level of 2.7
million tons. The abolition of prescribed cropping patterns nationwide would
allow wheat production to adjust more readily to market demand.
Fruits and Vegetables
According to an Uzbek agricultural exporter, Univestaff, and a BISNIS Search for Partners
participating company (see: http://www.bisnis.doc.gov/bisnis/lead.cfm?1500), fruits and
vegetables are one of the main export items of Uzbekistan. Univestaff estimates
that annually Uzbekistan produces about 5 million tons of fruits and
vegetables. Approximately half of the production is consumed locally. Favorable
weather conditions allow production of fruits and vegetables without
preservatives. Currently, major importers of Uzbek fruits and vegetables are
Russia, Kazakhstan and other FSU countries. Official statistics indicate that
Uzbekistan exported 1,405 tons of fruits and vegetables worth US$210,000 to
Kazakhstan during January – May 2006 compared with 238 tons worth US$38,000 in
the same period of 2005.
Uzbekistan has
over 6.47 million heads of cattle, including 2.82 million of cows, 1.21 million
sheep and goats, 81,300 heads of pigs and 1.93 million of poultry in
January-March 2006. Dehkan and private farms produced 96.4% of meat, 99.1% of
milk, 58.3% of eggs, 98.3% of wool and 67.8% of karakul.
According to earlier mentioned Bearing Point research, since
independence, the number of cattle has increased by 5% in all types of farming,
while the number of sheep and goats has fallen by 12 %. Government policy has
mainly been directed to maintaining the number of livestock even with negative
effects on productivity. Therefore in comparison with other CIS countries
Uzbekistan has maintained its quantity of livestock at levels of the pre-reform
period.
A major part of the agricultural machinery currently used in Uzbekistan
is obsolete and needs to be replaced, which requires a significant investment
to the tune of several hundred million dollars for renovation. The lack of
modern agricultural machines and equipment is considered one of the major
constraints preventing the sector’s effective development.
Best prospects include tractors, grain and cotton harvesters. There are
a number of plants in Uzbekistan producing various items of agricultural
machinery, equipment and parts. However, local production doesn’t fully satisfy
the demand.
In 2006, a Russia-based manufacturer Rostselmash
presented its grain harvester Don-1500B and a harvester of new
generation Vector in Navoi region of Uzbekistan on June 1, 2006. Rostselmash
and UzDonMash, which is official dealer of Russian company in Uzbekistan,
organized presentation. Elmar Agaev, director on regional development of
department on sales of harvesters of Rostselmash, said that the interest of
farmers in Rostselmash products is increasing and added some 40 new equipments
were delivered to Uzbekistan within two years. Russian company's manager also
said some 1,700 harvesters participated in wheat harvesting in 2005 in
Uzbekistan. He said currently agreements on supply of 300 machines were signed
and equipment of Rostselmash used in all regions of Uzbekistan.
Also in 2006, another Russian company Agromashholding open
joint-stock company delivered Volgograd-made crawler-mounted tractors to
Uzbekistan. The release of Agromashholding said some 129 units of equipment of
Volgograd Tractor Plant were delivered to Uzbekistan in line with agreement
between Agromashholding and Uzprommashimpeks, signed in April 2006. The release
said Agromashholding fully and in time implemented conditions of agreement
signed with the importer - Uzprommashimpeks. Tractors that were delivered to
Uzbekistan are VT-150D with capacity of 150 horsepower. The releases added that
the company started to train to machine-operators to use VT-150D in
Surkhandarya, Kashkadarya, Samarkand, Syrdarya and Tashkent regions.
Russian exports are likely to keep a strong
position on the Uzbek agricultural machinery market due to competitive prices,
extensive network of local dealers and service centers throughout
Uzbekistan, as well as rapid delivery of spare parts.
However, it is likely that at certain point the market will get
saturated with cheaper machinery, and there will be a growing number of clients
wishing to purchase more expensive but higher quality agricultural machinery
and equipment of U.S. origin, such as grain and cotton harvesting machines,
tractors, seeders, sprayers, and cultivators.
Further growth in demand for agricultural machinery and equipment is
based on the strengthening of private farming, improvement of financial and
leasing schemes, arable lands extension, and improved access to the credit
resources.
At present, Case represents the bulk of the current U.S. exports of
agricultural machinery to Uzbekistan. For instance, in June 2003, Case New
Holland Global N.V. (NYSE:CNH) announced the sale of agricultural equipment
totaling over $22 million to Uzbekistan, backed by a $20 million loan guarantee
from the Export-Import Bank of the United States (Ex-Im Bank). Under the terms
of the agreement between CNH and the government of Uzbekistan, CNH provided 100
Case IH 2366 AF combines and 50 Case IH MX240 Magnum tractors. CNH also
provided 100 Model 1010 grain headers, full parts and service support, and
on-site operator and service engineer training. Ex-Im Bank has provided more than $400 million in
financing to support Case IH agricultural equipment sales to Uzbekistan over
the past 10 years.
Case New Holland’s affiliates in Uzbekistan include:
UzCasmash LLC (Tashkent, Uzbekistan)
UzCasetractor LLC (Tashkent, Uzbekistan)
UzCaseservice LLC (Tashkent, Uzbekistan)
UzCaseagroleasing LLC (Tashkent, Uzbekistan)
These
are joint venture companies between CNH Global N.V. and various Uzbekistan
entities. CNH holds a 60% equity share in UzCashmash and a 51% equity share in
UzCasetractor and Uzselhozmash-Holding holds a 40% equity share in UzCasemash
and a 49% equity share in UzCasetractor. UzCasemash manufactures and
distributes combine harvesters; UzCasetractor manufactures and distributes
agricultural tractors. CNH holds a 51% equity share in UzCaseservice, a company
that services agricultural products in Uzbekistan, and Association of
Uzagromashservice holds the remaining 49% equity share in that joint venture
company. CNH holds a 51% equity share in UzCaseagroleasing, a company that
finances agricultural equipment in Uzbekistan and Banking Association of
Uzbekistan holds the remaining 49% equity share in that joint venture company.
According to the report “Best Export
Markets for U.S. Food Processing and Packaging Equipment, 2004-05”, compiled by
the El Camino College Center for International Trade Development (CITD),
in Hawthorne, California, Uzbekistan’s food
processing and packaging industry holds interesting opportunities for U.S.
investors and represents one of the best prospects for exports among other
sectors of Uzbek economy. Agriculture, which dominates Uzbekistan’s economy,
continues to be one of the Government’s highest priorities. According to the
report, Uzbekistan has the potential to develop into one of the major food
exporters in Central Asia and the CIS. Therefore, demand for sophisticated,
high-tech packaging and processing equipment will greatly expand if and when
the agricultural sector is reformed.
Currently, food processing and packaging equipment and technology is
very antiquated. Packaging in Uzbekistan was not developed before independence,
because the packaging industry was disbursed throughout the Soviet Union. After
the break-up of the USSR, Uzbekistan was left with only a small packaging
industry, which was geared towards chemical packaging, not food packaging.
Even though a considerable amount of food is processed in Uzbekistan, it
is still below Western standards in terms of packaging, shelf life, hygiene,
and nutritional value. Most Western food products have more prestige than those
produced locally. Local food products are advertised; however, the marketing
strategies are frequently ineffective. Nonetheless, economic reforms and the
process of integration into the world economy require local food processors to
raise the standards of their product to world levels.
Swiss-owned Nestle, one of the world’s largest food packaging and supply
companies, is one of the top foreign investors in Uzbekistan. The Uzbekistan
government, together with the EBRD, World Bank, ADB, USAID, and TACIS (Europe
AID), is putting greater emphasis on agricultural reforms to improve the long
term potential of the agricultural and food processing sectors. Coca Cola
operates the largest plant in the whole Central Asia. There is also greater
interest from Russian food processing and packaging equipment companies with
vast interests in juice processing and tomato processing, as well as meat and
milk processing.
This sector presents tremendous opportunities for U.S. manufacturers of
equipment to process fruits and vegetables, labeling, and packaging. Thus the food-processing industry is now among the
leading and most rapidly developing sectors in Uzbekistan. Moreover, food processing is
Uzbekistan's second-largest industry, based on the country abundant production
of fruits and vegetables. The sector is also in need of investment to modernize
its processing and packaging equipment.
According to Nizam Yuldashbaev, an official of the US agriculture
department, the food processing industry is composed of small- and medium-sized
companies. Almost two-thirds are small family-owned businesses or one-person
operations. In 2000, investments in Uzbekistan’s food processing industry
approached $200 million. By 2001, the industry was estimated to have processed
over $250 million worth of products, with almost half ($120 million worth)
being exported. Canned vegetables and fruits, fruit juices and tomato paste
number among the most popular exports.
While many Uzbek companies are familiar with European and Turkish food
processing and packaging equipment, there is a general lack of familiarity with
U.S. equipment. There is, however, great interest in it. While the current
situation in Uzbekistan makes it difficult to do business, long-term
opportunities are numerous for those companies willing to make a commitment to
the market. European producers of food processing and packaging equipment are
already in the market, waiting for the time when the economy will pick up.
Imported processed foods in attractive packaging has given the
population a new taste for a wide assortment of foods. Imports have also shown
local businesses that use of Food Processing and Packaging equipment that they
need to upgrade their technology. Most businesses were once state owned and had
few incentives to be concerned about the quality, efficiency or appearance of
processed products. In the new market economy these factors all matter for a
businesses' survival. An industry that once produced generic looking products
in bulky glass and metal containers is now seeking the capital and technology
essential to produce high quality goods and package them in convenient and
hygienic containers.
Uzbek entrepreneurs have several options to finance purchases of the
equipment, including leasing, commercial bank financing, or SME credit lines of
multilateral financial institutions in Uzbekistan. The recently adopted leasing
law provides much better ground for farmers and enterprises to lease machinery
and equipment.
a) Leasing
According to IFC’s Central Asia Leasing
Project, until 2002, almost all leasing companies in Uzbekistan were
established under separate Government Resolutions, which granted individual tax
preferences. The Presidential Decree No. 3122
“On Measures for the Future Development of Leasing” on August 28, 2002 created
a strong basis for the sector’s growth. This Decree removed leasing’s major
impediment by expanding all of the credit tax benefits available to include
leasing. The Decree was then followed in 2002 - 2003 by over 40 legislative
amendments to the Civil Code, Tax Code, Civil Litigations Code, and the Laws on
Leasing and on Customs Tariffs. With this substantial overhaul, the legislative
framework for leasing in Uzbekistan is now progressive and provides significant
incentive for growth in the sector.
Uzselkhozmashleasing’s (a state owned leasing company financed from a
special Fund at the Ministry of Finance to stimulate replacement and
improvement in agricultural equipment) market share is gradually declining,
though still remains at a relatively high level. If in 2001, the share was 93%
and 84% in 2002, by 2004, it had decreased to 64%.
Agricultural
equipment continues to dominate the leasing industry in Uzbekistan. In 2003,
70.3% of leases written were for agricultural equipment (75.2 in 2003). This
is, of course, mainly due to Uzselkhozmashleasing; however, even excluding
Uzselkhozmashleasing, agricultural equipment accounted for 17% of the market.
In Uzbekistan, the average lease term is up
to three years (except for Uzselkhozmashleasing where 80% of its transactions
are for 7 years). This can be explained by the high interest rates charged by
several lessors (clients are eager to make the repayment as soon as they can in
order to pay less interest) and also the lack of long-term financing available
in Uzbekistan.
Leasing companies in Uzbekistan:
1. Asia-European
Trust Company
4, Musa Djalil Passage, Tashkent, 700077
Tel.: +998 (712) 67-74-39, 67-94-28
Fax: +998 (712) 67-73-46
2. Association of
Business Women of Karakalpakstan
21, Musaev Street, Nukus, 742000
Tel.: +998 (761) 223-97-33
Fax: +998 (761) 223-97-33
E-mail:kkayol@mail.ru
3. Baraka
1A, A. Khodjaev Street, Tashkent, 700027
Tel.: +998 (71) 138-69-23, 138-69-33
Fax: +998 (71) 138-69-13
E-mail: baraklk@sarkor.uz
4. Business Leasing
6, Mahmud Tarobiy Street, Tashkent, 700100
Tel.: +998 (71) 120-44-93, 120-44-94, 120-30-40
Fax: +998 (71) 120-44-93
E-mail:blco@mail.ru
5. Karakalpakstan
Business Incubator
112A, A.Temur Street, Tashkent, 742000
Tel.: +998 (761) 222-19-02, 222-03-08
Fax: +998 (761) 222-03-08
E-mail:kkrbi@rol.ru
6. Poytaht-Leasing
79A, Nukus Street, apart. 1-2, Tashkent, 700015
Tel.: +998 (71) 120-58-55, 120-58-56
Fax: +998 (71) 120-77-12
7. Kurilish-Leasing
16, Uzbekistan Street, flour 3, Tashkent, 700027
Tel.: +998 (71) 139-49-95, 139-12-75, 139-18-61
Fax: +998 (71) 139-12-75, 139-18-61
8. Uzbekleasing
1, Turab Tula Street, flour 4, Tashkent, 700003
International Banking and Financing Center
Tel.: +998 (71)
139-16-54, 114-64-46
Fax: +998 (71) 120-67-29.
E-mail:
uzlease@sarkor.uz
Web-site: www.uzbekleasing.com
9. UzCASEagroleasing
2, Ahangaran Highway, Tashkent, 700091
Tel.: +998 (71)120-70-02
Fax: +998 (71) 120-74-84
10.
Uzselhozmashleasing
4A, Abaya Street, Tashkent, 700011
Tel.: +998 (71) 144-62-73, 144-61-98, 144-64-87
Fax: +998 (71) 144-51-03
11. Zomin Invest
15, Nakoshlik Street, Tashkent, 700081
Tel.: +998 (71) 120-63-63, 116-38-84
Fax: +998 (71) 120-63-63
E-mail: info@zomin-invest.uz
12. Alokabank
30, Oybek Street, Tashkent, 700000
Tel.: +998 (71) 152-78-85, 152-78-74, 137-49-35
Fax: +998 (71) 152-78-74
13. Asaka Bank
67, Nukus Street, Tashkent, 700015
Tel.: +998 (71) 120-81-83, 120-82-23, 120-81-11
Fax: +998 (71) 120-81-73
Commercial bank financing is also gradually
becoming a viable option for large Uzbek agricultural producers and processing
enterprises. One specific character of the Uzbek banking system inherited from
Soviet times is the existence of banks specialized in financing different
branches of the economy. The banks that are specialized specifically in
agriculture sector are Pakhta (Cotton) Bank and Galla (Grain) Bank. Below are
contact details of these banks:
Joint-Stock
Commercial Pakhta Bank
Mr. Abdurakhmat Baymuradov
Chairman of the Board
30, Mukimi Street
Tashkent, 700 096
Uzbekistan
Tel:: 998 71 1208818
Fax: 998 71 1732506
Email: pakhtabank@sovam.com
pakhtait@sovam.com
Galla Bank
Mr. Shukhrat Tashmuradov
Chairman of the Board
36, Lakhuty Street
Tashkent, 700060,
Uzbekistan
Tel: 998 71 1334225
Fax: 998 71 1363829
c) International Institutions and US government agencies
International organizations and development
institutions, including Asian Development Bank, EBRD, World Bank and others are
substantially contributing and providing on-going support to the macroeconomic
reforms and development incentives in Uzbekistan’s agribusiness sector.
European
Bank for Reconstruction and Development (EBRD)
The EBRD strategy for Uzbekistan approved in 2005 states that the Bank
would seek opportunities to provide financing to small fruit and vegetable
processing plants, using the tools available under the Early Transition
Countries (ETC) initiative. According to EBRD, this sector of agribusiness is
especially promising, due to the high quality raw materials available locally,
the established position of Uzbek products on foreign markets – mostly in CIS
countries – and growing interest from multinationals, like Coca Cola.
The Bank will also continue to investigate the possibility of working
with foreign strategic partners in agro-processing as a way to promote foreign
investment and knowledge transfer in a way similar to a framework guarantee
facility of EUR 7.5 million to Nestlé Uzbekistan (signed in July 2003).
With regard to upstream activities in the sector, the Bank will examine the
introduction of an agricultural financing scheme, such as the Grain Warehouse
Receipt Program by which the Bank will share the risk of a local borrower with
local participating banks, supported by the collateral of new crops stored in
the grain warehouses. The implementation of reforms to the marketing of key
cash crops, such as grain and cotton, will be a necessary precondition for the
Bank to start developing structured trade finance operations in the sector.
Asian Development Bank
ADB is assisting the Ministry of Agriculture and Water Resources of
Uzbekistan in three projects that will help reform the state procurement
system, boost agricultural productivity, and rehabilitate irrigation
infrastructure. The land improvement project planned for Board consideration in
2006 will work with local governments and rural communities in implementing
policy reforms and supportive investments for improved agricultural
productivity. Under the ADB-led Central Asian Countries Initiative for Land
Management (CACILM), policy and program actions are planned to reverse land
degradation with significant grant co-financing from the Global Environment
Facility.
ADB Country Strategy Program for Uzbekistan states that the bank will
continue to support a sustainable cost recovery policy in the water sector
initiated under the Amu Zhang Irrigation Rehabilitation Project. To advance the
transition in agriculture, ADB will support market infrastructure and farm
support services. Complementary financing for market infrastructure and farm
support services will be considered under rural small enterprise development
project that will include various rural financing options such as leasing.
U.S. Trade and Development Agency (TDA)
The U.S. Trade and Development Agency (TDA) is an independent federal
agency that helps American companies increase exports to middle-income and
developing countries. The agency funds feasibility studies, training programs,
and other project planning services as well as assists in overcoming hurdles to
project implementation, including regulatory obstacles, limited access to
financing, and inadequate technical information.
Agribusiness is one of several key sectors in which TDA supports both
international development and U.S. exports. Many countries are trying to expand
production of agricultural commodities, both to meet their domestic food needs
and to boost revenues from their specialty crops. In addition to
grower-oriented services, a key element of such policies is the modernization
of processing and storage facilities, as well as distribution systems. More
information is available at: http://www.tda.gov/
The U.S Export-Import Bank supports the financing of U.S goods and
services exports, assuming credits and country risks through its main three
programs: Working Capital Guarantee Program, Export Credit Insurance Program
and Direct Loans and Guarantees Program. For more information please visit www.exim.gov/contactus.html
The U.S. Department of Agriculture
Specific inquiries regarding Uzbekistan could be addressed to the
Agricultural Specialist with US Embassy in Uzbekistan Mr. Nizam Yuldashbaev.
Nizam Yuldashbaev
Agricultural Specialist
Foreign Agricultural Service
US Embassy
3, Moyqorghan Steet, 5th block
Yunusobod District,
Tashkent, Uzbekistan
Office 120.54.50, 120.54.47
Fax 120.63.35
Nizam.yuldashbaev@usda.gov
BISNIS/U.S. Department of Commerce:
BISNIS Representative in Uzbekistan
Uzbekistan Banking Association Building, 13th floor,
1, Khodjaeva Street, Tashkent,
Uzbekistan, 700027
Tel.: 998 71 138 69 76
Fax: 998 71 138 69 77
E-mail: bisnis.tashkent@bcc.com.uz
For more information on Uzbekistan, visit BISNIS online
at:
http://www.bisnis.doc.gov/bisnis/country/Uzbekistan.cfm
BISNIS (www.bisnis.doc.gov) is part of the U.S. Commercial Service (www.export.gov)