LMDP

2011 is the third year of the Phase II of the Local Market Development project (2009-2012). The project has been working in Kyrgyzstan since January, 2005 and since October, 2006 in Tajikistan. The project works at the moment in 5 oblasts of Kyrgyzstan (Batken, Osh, Jalal-Abad, Chui and Issyk-Kul) and in Khatlon and Sughd oblasts and Rayons of Republican Subordination in Tajikistan.

Vision / Overall Goal: Synergies between public, civil and private actors lead to systemic changes and improvements in selected agricultural sectors, and thus contribute to poverty reduction, and specifically to inclusion and improvement of the well-being of remote and marginalised rural population active in agricultural practices.

The coordination and collaboration between the public, civil and private sector allows for efficient use of available resources, and socially, economically and environmentally sound production and processing practices.

Outcomes:

1.      Value Chain Operators (VCO) develop and maintain trustful, reliable and transparent relationships. The VCO adopt and implement jointly market-oriented practices in a socially and environmentally sound manner (i.e. they integrate remote and small scale farmers and adopt socially and environmental friendly production and processing practices). VCO anticipate and react to new market trends and develop joint actions for (high value added) products and processes.

2.      Value Chain Supporters (VCS) develop and offer affordable and demanded high quality (financial and non-financial) services to VC operators. VCS provide a neutral space for joint learning, transparent planning and developing trustful relationships. The VCS provide evidence for advocacy and lobbying towards national policy makers and international funding agencies. VCS promote gender inclusive resource management (natural, know-how, income & production assets).

3.      Value Chain Influencers (VCI) involve in creating a commercial and social friendly business environment. The state bodies acknowledge and recognise the evidence provided by VCO and VCS and translate the evidence into enabling environment practices. Donor programs seek increased synergies and cooperation for coherent and harmonised project implementation.

4.      LMD initiates and supports the generation of new ideas, ventures and processes: LMD syntheses, analyses and propagates evidence for advocating and improving value chain management (reliability, predictability); for instance elaborates sectoral studies; LMD supports the attraction of external investments into selected chains, by using concrete evidence and providing moral warranties; LMD further develops and systematises DCED / IMA compatible monitoring

Approach

The project works as a facilitator along the value chain “Farmer Groups – Processing Companies – Trading Companies – Local market”. Each chain is different and the project puts its efforts into achieving four outcomes:

1.      Value Chain Operators develop and maintain trustful, reliable and transparent relationships;

2.      Value Chain Supporters develop and offer affordable and demanded high quality (financial and non-financial) services to VC operators;

3.      Value Chain Influencers involve in creating a commercial and social friendly business environment;

4.      LMD initiates and supports the generation of new ideas, ventures and processes.

The work in all chains is based on a common planning done at the end of the year in Tajikistan and Kyrgyzstan between small-scale agricultural producers situated close to the processing companies, traders, representatives of financial institutes and supporting organisations and other development projects. All planning workshops are conducted by the project partner organisations in both countries. Participants of the workshops elected members of the working groups and each group had monthly meetings where the problems along each value chain were discussed and common working plans have been corrected.

Work in 2011

In 2011, the LMD project works with 17 value chains “Farmer Groups – Processing Companies - Trading Companies – Local Market and Export” in Kyrgyzstan and 13 in Tajikistan. The LMD works with 7 220 farmers (2 592 out of them in Tajikistan) involved in project activities in both countries. Altogether, 20 supporting organisations in Kyrgyzstan (Extension services, NGOs, Associations, donor funded projects) and 17 in Tajikistan were directly or indirectly involved in project activities as well as 18 processing and trading companies (8 of them in Tajikistan). All project partners use a common monitoring system since 2008 year in both countries.

Main achievements in 2010

The payment in Kyrgyzstan by

1.      all farmers involved in the project activities for all extension services received;

2.      to NGOs by microcredit institutions for each farmer got credit;

3.      five processing and trading companies to the supporting organisations in amount of 10% from delivered volume by the contract.

In 2010 already farmers of three NGO in Tajikistan paid for services received from their supporting organisations.

The total received income from the provision of services to VCO and VCS by the LMD partner organisation was 2 840 650 KGS or 12,5% of total funds provided by the project for work in 2010 (380 500 Euro). The project essentially reduced the funds for work with farmers in 2011 - 208 200 Euro but at the same time increased 3 times the contracted amount by processing and trading companies. So, the project expects the coverage of expenses around 50 % in 2011.

Another achievement is contract fulfilment in Kyrgyzstan for 85 % and in Tajikistan for 69 % and these are high figures taking into consideration unstable political and social situation in Kyrgyzstan and lack of gas for processing in Tajikistan.

The project progress in increasing income of the supported farmers is provided in the table below.

Table 1. Number of farmers and growth of their income

The total income of farmers in 2010 was 6,3 million USD (in 2009 the total income was 3,75 million USD), which is 1,7 times higher than in 2009.

Project Partners

Associations:

Kyrgyzstan: Association of Fruits and Vegetable Processing Enterprises, Association of Extension Servise Providers

Tajikistan: Agrodonish, Association of Micro-Credit Organisations

NGOs, Extension Services and BDS

Kyrgyzstan: AgroInformAsia, Agro Lead, Centre of Training, Consultancy and Innovations, DCCA South, Mekhr-Shavkat, RAS Batken, RAS Chu, RAS Jalal-Abad, RAS Issyk-Kul, Shoola, Tayan, TES-Centre, CTC, M-Vector, Senty

Tajikistan: Agrobusiness Consulting, ASDP Nau, ATAC, Faizbakhsh, Ghamkhori, Khairandesh, Mehrangez, Voris, Rano, SAS Consulting, Zarzamin, Zan va Zamin

Private companies:

Kyrgyzstan: Agroplast, Rahmonberdy, Jany Aryk, Rakhimov, EuM, Baerkos, Oasis Agro, Ak-Orgo Agro, Agromarket Oital, Dessert, Ailana, Richstem, Kooppromservice, Rostechoptorg

Tajikistan: Muminobad factory, Khamadoni factory, Tangai, Khudjand Processing Factory; Kanibadam Processing company and Aviso.

Donors:           

Inter-church organization for Co-operation Development (ICCO)

HELVETAS Swiss Intercooperation

Financial commitment:  EURO 680,000 (approx.) per year

Implementing Agency:   HELVETAS Swiss Intercooperation

Beneficiaries: 

Small-scale agricultural producers, processors and traders, Value Chain Supporters (NGOs, Extension Services, Association, Credit institutes)

Office in Bishkek

7 linia, House # 65

Tel: +996  (312) 214572-73-74-75

Fax: +996 (312) 214578