LMDP

The Local Market Development Project aims to improve market access for producers in the fruit & vegetable and dairy sectors by improving the product value chain (producer-processor-trader-consumer).

Background

An identification mission conducted in October 2004 assessed the local market development opportunities in Osh oblast. The mission concluded that farmers in Osh oblast have comparative advantages in the fruit & vegetable and dairy sectors. Opportunities to improve the product value chain at the level of production, processing, and marketing were defined. The inception phase of the LMD project was realized from January 2005 till October 2005 which allowed acquiring essential knowledge for correct formulation of the first project phase. ICCO and Helvetas assessed the project inception phase and decided to finance the I project phase from January 2006 till 2008 in Osh, Chui, and Issykkul oblasts.

Project Objectives

The purpose of the proposed Local market development project will read as follows:

• to enhance the commercial skills and knowledge of rural farmers' groups in order to strengthen their market orientation thus contributing to generating income;
• to strengthen the product value chain (producer-processor-trader-consumer) in the Fruit & Vegetable and Dairy sectors so that producers gain access to local (and external) markets;
• to facilitate a multi-stakeholder approach in Kyrgyzstan to advance socio-economic development in rural areas.

Working Approaches and Tools

During the first phase the project will work within the framework of the Helvetas Natural Resource Management Strategy and the ICCO Fair Economic Development Strategy. Special emphasis will be laid on the following working approaches:

Sub sector focus: The first phase works on the basic assumption that an individual sub sector focus, which offers concrete and sub sector needs-specific solutions is appropriate to building the necessary trust and capacity to enter into commercial relationships in the commodity chain.. The project works in fruit & vegetable and dairy sectors.

Working along value chains: involve and encourage all actors along the value chain in providing the services needed to overcome obstacles, ensure products are delivered to markets and make sure that farmers receive fair compensation for their efforts.

Facilitation: setting up a supporting framework for project partners. The project does not subsidize any transaction costs along the chain.

Customized Multi-Stakeholders technical support: The project gives an opportunity to existing stakeholders (donor projects, local extension services, service providers and state organizations) to provide customized technical assistance to chain actors.

Working with local service providers: the project mandates technical and organizational support of farmers' groups, processing and trade companies to local service providers.

Farming chain development platform: the platform shall initiate a dialogue on lessons learnt in project intervention in local market development and farmers' organisation development with the aim of disseminating the project's experience among all parties concerned.

Our Partners

In 2007 the project worked with 110 farmers' groups consisting of over 1500 farmers in Kyrgyzstan and Tajikistan, 3 trade companies, Non-profit organizations: Tayan, Mekhr-Shavkat, Shoola, Zan va Zamin, ATAC, and development organizations: USAID/IFDC, AgFin+ USAID/Winrock Int.,  ITC/SECO, Chu rehional project ADB. Agricultural advisory service providers: TES-Centre in Osh and Advisory and Training Centre ATC attached to RAS.                                       

Achievements in 2007

• 16 stable product value chains between farmers and processing companies in 4 regions in Kyrgyzstan established; Osh, Batken, Chui, and Issykkul regions, and in Khatlon region in Tajikistan;
• Over 1500 farmers united in 110 farmer groups are involved in the work along the value chains;
• Farmers produced over 4500 tons of vegetables, out of which 1200 tons were delivered to the processors. Dairy groups delivered over 233 tons of milk to the Osh dairy factory;
• Taste of the Sun production volume was increased by 24% compared to 2006 and by 119% compared to 2005 and amounted to 25 mln. soms;
• A commercial company "AgroInformAsia" was established. It is in charge of developing and promoting the agricultural information market system.

Plans 2008

• To establish new sustainable value chains and to strengthen currently operating value chains in two countries;
• To develop agricultural information market system;
• Further increase sales of products at local market and increase export of the supported companies' products at external markets.

LMDP in brief

How to contact us:

Office in Bishkek

43/1 Grajdanskaya St.

Tel: +996 (312) 36 06 72, 36 06 74

Fax: (312) 36 06 73

E-mail: lmd@helvetas.kg; lmdchu@helvetas.kg  

Office in Osh

428, Lenin St., Osh

Tel./Fax (3222) 7 42 96

E-mail: lmdosh@helvetas.kg

Office in Tajikistan

8, Schedrin St., Dushanbe

Tel./Fax +992 (37) 227 16 09
 
E-mail: lmdha@tajik.net