Trade-and-logistical centers as one of the ways to

increase export of agricultural products

Ministry of Agriculture, Food Industry and Amelioration of the Kyrgyz Republic

Bishkek - 2016

Agriculture is characterized by development of vegetable and potato growing, beans growing, the cultivation of technical crops - cotton, tobacco, sugar beet and keeping livestock.Diverse natural and climatic conditions allow to cultivate heat-loving and cold-resistant agricultural crops.The availability of vast natural pastures/rangelands resulted in the development of livestock, especially sheep, cattle and yak husbandry.

Agro-industrial complex of the Kyrgyz Republic

Agrarian sector is one of the key sectors in the country economy:

Population employed in agriculture comprised about 60% or over 950 thousand people of the total number

of employed population in the country

Almost one fifth of added value in GDP is formed in this sector of economy

Agro-industrial complex of the Kyrgyz Republic

The total area of agricultural land is over 10.8 million hectares.including arable land - 1.2 million ha (11.1%), pastures - 9.6 million ha (88.9%).

Crop farming:Crops structure (2015):

Animal husbandry:

(thousand heads)

Food/ptocessing industry:

- grain (wheat, barley, grain) – 49.7%;

- animal feed (perennial grass) - 26.6%;

- technical crops (cotton, sugar beetroot, tobacco)

-16.6%;- potatoes and

vegetables - 10.5% and other crops.

- 

- cattle – 1459.4;- sheep and goats –

5829.0;- horses – 433.0;

- poultry – 5420.0;

- sugar production;- bread baking;

- confectionery;- milling industry (flour);

- macaroni;- fruit and vegetable;- meat processing;

- dairy;- tobacco production;- bear and soft drinks;

- fat and oil;- alcohol; etc.

Livestock is one of the strongest components of agriculture of the Kyrgyz Republic. There is a very significant export of animals, skins, leather, wool, and milk, and there is considerable potential to increase it. Kyrgyz milk is the source of raw materials for milk processing in southern Kazakhstan.

Production dynamics by types, thousand tons

Name 2011 2012 2013 2014 2015

    Meat (slaughtered weight) 190,4 193,5 195,2 204,8 209,1

Milk 1 358,1 1 382,4 1408,2 1445,5 1481,1

Eggs  (mln. eggs) 392,8 416,8 421,5 445,8 432,9

Wool 11,1 11,3 11,6 11,8 12,1

Production of livestock products

Fruit processing industry is one of the priority sectors and export-oriented industries in the agricultural sector of the economy of the Kyrgyz Republic.         Fruit and vegetable production is spread almost all over the country, but the major producers are the Chui, Issyk-Kul, Jalal-Abad and Osh provinces (oblasts), where there is a source of raw materials. одной.

Name of crops культур2011 2012 2013 2014 2015

Gross harvest, thousand tons Wheat  (weight after processing)  799,8 540,5 819,4 572,7 704,6

 Pulse crops (weight after treatment) 76,1 81,3 84,9 90,1 89,5Sugar beetroot (for factory processing) 158,8 102,0 195,4 173,6 188,3Raw cotton (standard weight) 101,3 84,7 68,6 69,0 45,7Tobacco (standard weight) 9,9 7,4 6,5 4,4 1,4

Potatoes 1 379,2 1 312,7 1332,0 1320,7 1416,4Vegetables 820,9 865,9 881,5 919,7 1051,5Melons and gourds 151,6 193,2 195,8 200,2 250,2Frits and berries 215,1 222,7 233,6 237,0 209,2Grapes 6,7 7,9 8,1 8,5 5,7

Crops production

Agriculture of Kyrgyzstan today can export fruits and vegetables, potatoes, beans, tobacco, cotton, livestock, meat, milk, wool, hides and skins. Kyrgyzstan has a climatic advantage in cultivation of the above-mentioned agricultural products, the export of which has a relatively high growth potential.The products are supplied to Azerbaijan, Tajikistan, Ukraine, Germany, France and Turkey. Traditionally, products are supplied to Russia and Kazakhstan

Animal products also have high export potential, however export of the above is hindered by the unfavorable epizootic situation in the country. In spite of this significant success was achieved in export of cow milk to Kazakhstan, of meat to Iran and Afghanistan.

The export potential of agricultural products

I • Weak sales system

II • Small-scale production

III• Losses during transportation and storage

IV• Weak infrastructure, lack of

international level laboratories

V• Absence of sustainable connections

of processors and agricultural producers

Analysis of the problems of promotion of agricultural products of the Kyrgyz Republic

Resolution of the Government of the Kyrgyz Republic as of August 25, 2015 №600 approved the Concept of creation of 

TLCs.

Trade-and-logistical center (TLC)

Due to the urgency of the TLC system development, the Ministry jointly with Japan International Cooperation Agency (JICA) developed the Concept of creating trade-and-logistics centers

Decree of the Government of the Kyrgyz Republic as of August 2, 2016 №353 approved the Action Plan for the creation and 

development of the TLCs in the Kyrgyz Republic

For effective use of the geopolitical potential of the Kyrgyz Republic it is necessary to create a trade and transport logistics system, integrated into an international

logistics supply chain that can offer quality services at value added.

LEGAL FRAMEWORK

In accordance with the action plan for the establishment and development of trade-and-logistics centers in the Kyrgyz Republic approved by the Decree of the Government of the Kyrgyz Republic it is planned to create 2 types of TLCs in the system of trade-and-

logistics centers in the country.

Plan for establishing and developmet of the system of trade-and-logistical

center (TLC)

2 centers meeting international

standards in the South and in the North of

the country

7 centers in each province (oblast) of

the country for raising quality of logistical supply

chain

International type Regional type

Structure of location of the trade-and-logistical centres

International TLC

International TLC

Regional TLC

Regional TLC

Regional TLC

Regional TLC

Regional TLC

Regional TLC

Regional TLC

Total:• 2 TLCs of international type• 7 TLCs of regional type

The first logistics center was built in 2015 in the village Sokuluk with the possibility of simultaneous storage of up to

15 thousand tons of agricultural products.

It is proposed to establish a trade-and-logistical center that meets international requirements

A land parcel was allocated in the Novo-Pavlovsky aiyl okmotu of the

Sokuluk district (raion)Сокулукского районаArea – 13 hectares

2,5 km distance to FEZ Bishkek

1,5 km distance to the international Airport Manas

Availability of an automobile highway to Bishkek, Osh and Almaty

A convenient geographic and transportation location

I• Establishing a single informational system

II• Optimization of the directions of products movement

III• Possibility to increase export of agricultural products

IV• Development of regional and international trade

V• Quality control of products

VI• Formation of the market for orders and offers

VII• Increasing competitiveness of the Kyrgyz products

Goal of establishing of the trade-and-logistical centre

Structure of the trade-and-logistical centre

Pre-sale preparationStorage for 

vegetables

Multi-temperature storage

Parking lot

Trade platform

Administrative building

Hotel

Expected result

Raising quality of the products produced

Reduction of losses during transportation and storage

Construction of a developed infrastructure

Increase of the volume of export of agricultural products

Stimulation of the growth of agricultural products production

Prices stabilization and the forecasted market

THANK YOU FOR YOUR ATTENTION