USAID Partners with a Private Company to Boost Milk Production in South Kyrgyzstan

BISHKEK – On November 22, the USAID Agro Horizon project and Oasis Agro, LLC, signed a memorandum of understanding to boost diary production in Osh and Jalal-Abad. This partnership will leverage private sector investment and expertise to increase the efficiency and quality of milk production, which will improve competitiveness of Kyrgyz farmers.

Under this partnership, United States through USAID and Oasis Agro will equip a feed laboratory and construct 2,000 metric tons of grain storage facilities, feed making equipment, and milk processing and cheese making equipment. Oasis Agro’s total contribution to this new business venture is valued at $590,776. These new facilities will provide farmers with better quality feed, and is expected to increase their productivity and milk sales by an estimated $700,000 by the end of 2018.

“The new technologies and expertise that USAID and Oasis Agro plan to bring will improve the quality and quantity of milk production in the south of the Kyrgyz Republic, especially in winter. But most importantly – the project will increase the incomes and improve lives of more than 2,000 farmers who will be engaged in the project,” said U.S. Ambassador to the Kyrgyz Republic Sheila Gwaltney during the signing ceremony.

Livestock contributes nearly 50% of agricultural GDP in the Kyrgyz Republic. Livestock sub-sectors like dairy, meat, live animals, and eggs can be substantially improved if farmers have access to and utilize better quality feed and animal husbandry techniques. In addition, Kyrgyz farmers will benefit from the related production of feed ingredients such as maize, soybeans, and fodder, which are all lucrative cash crops that will be needed by the industry as it grows.

During the ceremony Deputy Minister of Economy Almaz Sazbakov mentioned that one of the important tasks of the Ministry of Economy is to ensure available, safe feed production. “In this regard, the Ministry and the USAID Agro Horizon project pursue the same goal. Therefore, the Ministry of Economy wishes successful implementation of the project and looks forward to continued cooperation,” added Deputy Minister.

This partnership is launched under the USAID Agro Horizon, a four-year project which works to increase smallholder farmers’ incomes by improving productivity and expanding access to local and international markets.