As part of the project, which is being implemented in cooperation between the Ministry of Poverty Reduction and Employment and the European Union, the program 'Strengthening the Economic Potential and Efficiency of Farms and Landowners in Uzbekistan' is being carried out. The main goal of this initiative is to promote the development of a sustainable, market-oriented, and inclusive food production system.
Goals and Objectives of the Project
The project aims to increase the income of landowners and farms, expand employment and income opportunities in rural areas, and strengthen food security. Dil'dor Otazhonov, Consultant at the Ministry of Poverty Reduction and Employment on agricultural product export issues, notes that the experience of European countries shows that cooperatives allow farms and products produced on land to achieve real competitiveness in external markets.
Current State of Agriculture
This is particularly relevant because currently over 5.2 million families in Uzbekistan grow agricultural products on their own land, as well as on land allocated to the population, covering a total area of 220 thousand hectares. However, most of them operate on small plots and face certain difficulties in processing, storing, packaging, and exporting products, which limits their ability to earn high income.
Advantages of Cooperation
Uniting several small farms into one cooperative gives them the opportunity to jointly use necessary machinery, warehouse facilities, logistics, and other resources. This creates a favorable environment for export. In personal experience, selling a large batch of products is significantly easier than selling a small volume from a single farm. Furthermore, cooperatives are easier to attract loans and subsidies because banks and funds prefer to work with stable cooperatives rather than individual farms.
Importance of Knowledge Exchange
Another important aspect is knowledge exchange: landowners and farmers within the cooperative study effective methods from each other and adopt modern agricultural technologies more quickly. It is assumed that with the development of the cooperative system in the regions, the export income of the participating farms could increase by at least 25 percent. The project, implemented by the Ministry of Poverty Reduction and Employment together with the European Union, lays the foundation for the systematic development of this area in the regions.
Project Implementation Mechanisms
Within the framework of the project, the legal and practical literacy of landowners and farmers is increased, training sessions on modern agricultural technologies, product processing and packaging methods, and ways to enter the export market are organized. In the first stage, landowners and farmers who expressed a desire to form 30 cooperatives in Tashkent region participate in educational and practical seminars. There they are provided with the necessary knowledge and skills on creating and managing cooperatives, attracting financial resources, and effectively using logistical and marketing opportunities.
Results and Support
Thanks to this, farms and landowners gain the opportunity to integrate their products into the value chain, reduce costs, and increase market competitiveness. As a result of the project, new jobs will be created for the population in rural areas, stable sources of income will be formed, and food security will be strengthened. The Law 'On Agricultural Cooperative' will also play a regulatory role in this process. The project will ensure the effective participation of citizens without employment in agriculture in these processes and increase their awareness of current regulatory legal documentation.
Financing and Timeline
During the implementation of the program, mentorship, training trips to Latvia, and start-up grants are provided. The practical experience gained will be summarized in a guide on cooperative development. The duration of the project is 3 years, and 2,617,545 euros will be allocated to it. The Republic of Latvia, through the Central Agency for Finance and Contracts (CFCA) and the Center for Agricultural Consulting and Training (LLKC), conducts technical activities such as training landowners and farmers, developing and supporting cooperatives, mentorship, training trips, and applying European experience in agricultural consulting and cooperative management.
Activity Schedule
Starting from July 2026, educational and practical seminars involving agricultural producers will begin in the regions of Tashkent, Samarkand, and Andijan. From July 8, 2026, the project team will start working in the Tashkent region, where practical seminars will be organized on agricultural production, problems faced by farmers, cooperation opportunities, exports, storage and processing of products, use of common resources, and cost reduction. In July-August of this year, the project will continue in the Samarkand and Andijan regions. Based on these works, the project team will determine the most relevant needs and practical opportunities for agricultural producers in each region to develop targeted support measures in subsequent stages.
