Agri-food sector: government support and market mechanisms

At an extended meeting of the Cabinet of Ministers on December 20, President Gurbanguly Berdimuhamedov outlined a number of tasks designed to ensure the progressive development of the country in 2019. The main ones are to maintain a stable high growth rate due to the intensive development of all sectors of the economy and its diversification, the implementation of large-scale and especially large investment projects of international and regional importance.

Among the key areas of work ahead in the coming year are increasing the profitability of industries and the competitiveness of domestic goods, increasing the volume of export-oriented products, reducing imports, investment activity, continuing privatization of state property, and creating favorable conditions for business activities.

These priorities are reflected in the state agrarian policy. Over the past years, large-scale transformations have been carried out in this strategic area, the most important goal of which is to ensure abundance in the food market, which is a significant factor in improving the quality of life of citizens.

The basis for the successful development of domestic grain and cotton production is systematic work to increase crop yields and soil fertility, actively cultivate virgin lands of the earth, and resolve land-improvement and water supply issues for farmland. Considerable financial resources are allocated for the renewal of the technical park of the agro-industrial complex, which is replenished with modern tractors, combines, other machines and equipment of the latest modifications from the world's leading manufacturers of agricultural equipment.

Government purchases of products, tax exemption from daihan, provision of maintenance services, seeds, mineral fertilizers, plant protection products to them on favorable terms - all these measures of financial and economic incentives for agricultural producers produce the desired effect and contribute to their interest in the results of their labor.

Much attention is paid to the rational use of land, water and other natural resources, environmental protection, the development of agrarian science, breeding and breeding, the introduction of innovative technologies into production, advanced management methods, the training of qualified specialists, the creation of modern social infrastructure in the regions, etc. .

An important step towards further development of the food segment of the national economy, meeting the population's demand for a wide range of food products and high quality was the adoption of State programs for the production of import-substituting products and increasing exports. As part of these programs, a total of over 110 projects are planned to be implemented, including in agriculture and the food industry. At the same time, the key role is assigned to a public-private partnership, that is, to unite the efforts of the state and business to achieve the stated goals.

Large livestock and poultry complexes of the full production cycle have been built and continue to be built in each velayat of the country - starting from the cultivation of forage crops and feeding young elite breeds, to processing meat and semi-finished products into ready-to-sell meat and dairy products. These are various types of cheeses, sausages, milk, kefir, sour cream, yoghurts, butter, etc.

Fresh vegetables year-round provide the population of cities and villages with greenhouses where tomatoes, cucumbers, peppers, eggplants, and mushrooms, greens, etc. are grown. The production of canned fruits and vegetables, natural juices, beverages, all kinds of pasta, bakery and confectionery products has been established.

For example, this year a cattle-breeding complex was commissioned in the Ahal velayat, commissioned by the private enterprise Gus Toplumy, whose products are well known in Turkmenistan and abroad. The poultry farming complex, opened in 2009 in the Ahal velayat, became the country's first individual enterprise of a similar profile. His positive experience helped to establish an effective system of interaction of the private sector with partners - the public sector, foreign suppliers, and banking structures. In fact, the technology of state support of private business, which is the engine of economic growth in the world, has been successfully tested.

The production capacity of the new enterprise Gus Toplumy is 200 tons of meat per year. Now the farm contains 120 heads of cattle, the number of which in the future is planned to reach 800 cows. All conditions for keeping animals and raising young stock are provided here. In the long-term use of entrepreneurs allocated more than 300 hectares of land. Of these, 290 hectares are devoted to the cultivation of fodder crops.

For the needs of this farm in Austria, more than 60 Simmental cattle were purchased. The company has installed specialized equipment from the UK, Austria, Italy and Israel. Automated machines allow milking 30 cows at the same time, the average daily milk yield will reach 22-25 liters. Another know-how is the chipping of animals on the farm, which makes it possible to monitor the state of cattle remotely online.

It continues to expand its business and economic society Ajayyp ussat halal Alnumler, a member of the Union of Industrialists and Entrepreneurs of the country and specializing in the production and processing of agricultural products. A few years ago, entrepreneurs built the first meat and dairy complex in the Bahherden etrap. Now it contains more than 2 thousand 300 heads of cattle. Cows of the most famous elite breeds were imported from Germany - Holstein, famous for its record milk yields, and Simmental cows, which are equally productive in both the dairy and meat areas, adapt well to different climatic conditions. The farm also contains over 1 thousand 100 heads of small ruminants.

In addition, in the foothill valley on the territory of the Archman daikhan association, on 75 hectares of land, an orchard was established, where about 50 thousand fruit trees were planted. And in the open areas cultivated melons.

Another step in the formation of a powerful livestock cluster in the Akhal velayat was the complex built by Ajayyp ussat halal Alnumler, which will specialize in producing top quality beef, including so-called marble meat. For these purposes, several dozen Aberdeen-Angus cows have been acquired in Germany.

Now on the farm - about 600 animals. In total, 150 tons of meat per year will be produced here. Of these, 15 tons - marble beef - tender, juicy, with thin layers of fat, rightfully belongs to delicacies. Moreover, meat with the Certified Angus Beef label (Certified Angus Beef) is most highly valued. Thus, there is an opportunity to adjust export deliveries of this product, which is especially demanded by global restaurant chains.

Among the other new buildings of Ahal velayat is a livestock complex built in the Tedzhen etrap by the Azapkes individual enterprise. Its production capacity is 3 thousand tons of milk and 100 tons of meat per year. In addition to local breeds, the farm contains more than 300 cattle of elite breeds from Germany and Ukraine.

The agro-industrial infrastructure of Lebap velayat has replenished the poultry-farming complex producing 500 tons of high-quality poultry meat and 2.5 million eggs. It was built in Chardzhevsky etrap by workers of the Eikhret economy farm, a member of the Union of Industrialists and Entrepreneurs of Turkmenistan.

A large livestock complex is also open in the Serdar etrap of the Balkan velayat, where it is planned to produce 500 tons of meat per year. Currently, the farm contains 440 heads of cattle. In the future, businessmen are planning to bring the livestock of dairy and meat cows to three thousand, to open production processing shops.

A greenhouse complex of the Ministry of Agriculture and Water Resources was commissioned in the Kunyaurgench etrap of the Dashoguz velayat, which will supply 1,800-2,000 tons of high-quality and environmentally friendly products to the distribution network annually. A similar greenhouse, intended for the cultivation of tomatoes, appeared in the Aktepe district of the northern region.

The design capacity of the new poultry complex built by the Mary velayat is 5 million eggs and 500 tons of chicken meat per year. In particular, there can simultaneously contain more than 130 thousand birds.

In turn, the cattle-breeding complex, built by entrepreneurs - members of the TAD in the Murghab district, is designed to produce 100 tons of milk and 100 tons of meat per year. The farm contains 750 cattle, including 150 Holstein cows.

Along with this, work continues on the creation of new enterprises that process agricultural products and conditions for its seasonal storage. So, this year in the Lebap velayat, in the village of Chekir of the Kerkin etrap, a plant for the production of canned fruit and vegetables - compotes, preserves, juices, pickles, pickles, with a capacity of 1 million conditional cans per year was opened.

In Balkanabat, a new plant for the production of pasta was built, equipped with modern equipment purchased in Italy. The capacity of the automated technological line is 270 tons of products per year with two-shift operation. Currently, there are mastered the production of ten types of pasta. In the Bagtyyarlyk etrap of Ashgabat, a cold storage facility was put into operation, designed to store 2 thousand tons of fruits and vegetables. The new building, built on the order of the Ministry of Agriculture and Water Resources, is equipped with specialized equipment from leading manufacturers from Germany, Holland, and Turkey.

Three thousand tons of fruits and vegetables can be deposited at a warehouse complex built in Turkmenabat. It consists of 3 large warehouse buildings, auxiliary premises, a sorting unit, a laboratory, a sanitary unit.

Effective measures taken at the state level to support domestic producers, stimulating the growth of agricultural output, have significantly reduced the import of food products and increased their exports. This fact is noted in the reviews of the agri-food trade policy, which were issued in 2016-2018 by the UN Food and Agriculture Organization (FAO) within the framework of the FAO Regional Initiative in Europe and Central Asia Development of agro-food trade and access to international markets.

International experts directly link this with the results of the import substitution and export potential growth of the national economy initiated by President Gurbanguly Berdimuhamedov. Other factors that have led to the intensive development of the food sector are the provision of soft loans to finance projects in agriculture, the agro-processing and food industry, including the Union of Industrialists and Entrepreneurs of Turkmenistan, the introduction of additional customs duties on certain types of imported goods.

In addition, the state assists the Chamber of Commerce in conducting specialized fairs and exhibitions, as well as other specialized structures in publishing magazines, creating Internet portals, opening national trading houses abroad. This contributes to the promotion of competitive domestic goods to foreign markets, the establishment of productive relations with potential importers of agricultural products from other countries.

Recall that in 2015, our country was awarded a special award by the Food and Agriculture Organization (FAO) of the United Nations for achievements in the field of food security, as one of the Third Millennium Development Goals.

The abundance and diversity of domestic goods observed on these New Year's Eve days on the shelves of shopping centers and markets, both in the capital and in all velayats of the country, also testify to the successful solution of tasks for the production of import-substituting products, including food.

In accordance with the decisions of Halk Maslakhaty and Presidential decrees Gurbanguly Berdimuhamedov, this year special agricultural land funds were created from arable lands of daikhan associations in velayats, from which land plots are provided for long-term use by joint-stock companies, farmers and other agricultural producers.

At the same time, about 70 percent of agricultural land allocated from the first Fund will be used for growing on a contractual basis wheat, cotton and other agricultural crops included in the state order. The remaining land can be sown with other crops for scientifically based crop rotation. The land plots provided from the second Fund are intended for the cultivation of vegetables and melons, potatoes, grapes and fruit trees.

In addition, in order to encourage agricultural producers, starting from next year, the state procurement prices for wheat and cotton have been increased. Daykhan associations and farms, agricultural joint-stock companies and research institutes, tenants, private entrepreneurs, and other agricultural producers can receive preferential bank loans for up to 10 years.

Along with this, it is planned to carry out a phased privatization of livestock farms on the balance of the Ministry of Agriculture and Water Management of the premises of farms together with cattle, sheep, camels, and poultry.

Thus, in 2019, which will be held under the motto Turkmenistan - the Motherland of Prosperity, qualitatively new frontiers will be achieved in the agri-food sector.

Source: EMBASSY OF TURKMENISTAN REPUBLIC OF UZBEKISTAN - TASHKENT