Establishing value chains for agricultural development; Uzbekistan. A case study

Countries of the former Soviet Union have significant agricultural sectors which have underperformed since the collapse of the system in 1991. While Uzbekistan was designated as a cotton producing area, a crop it continues to grow, it has significant unrealised potential in the production of fruit and vegetables. The disintegration of the previous system removed the support system and infrastructure necessary for agricultural development. The current system is characterised by low levels of production, caused by a removal of choice from farmer’s decision making and a lack of technical knowledge, an inadequate infrastructure, limited value adding opportunities and restricted access to capital. Motivated by a decline in oil prices and a returning migrant workforce the government has an opportunity and a need to facilitate the development of value chains and a more sustainable farming system. This could be achieved by giving farmers greater choice in enterprise selection and guaranteeing security of tenure, investment in infrastructure, training programmes, removing the regulatory burden for small businesses and providing a fit for purpose extension service.