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Overviews of Food Systems and Agro-Industry, Value Chains, and Food Loss and Waste in the Countries of Eastern Europe and Central Asia

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Overviews of Food Systems and Agro-Industry, Value Chains, and Food Loss and Waste in the Countries of Eastern Europe and Central Asia TECHNICAL REPORT OVERVIEWS OF FOOD SYSTEMS AND AGRO-INDUSTRY, VALUE CHAINS, AND FOOD LOSS AND WASTE IN THE COUNTRIES OF EASTERN EUROPE AND CENTRAL ASIA Technical Report Overviews of food systems and agro- industry, value chains, and food loss and waste in the countries of Eastern Europe and Central Asia Tatiana LeGrand Food and Agriculture Organization of the United Nations Budapest, 2018 The designations employed and the presentation of material in this information product do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations (FAO) concerning the legal or development status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The mention of specific companies or products of manufacturers, whether or not these have been patented, does not imply that these have been endorsed or recommended by FAO in preference to others of a similar nature that are not mentioned. The views expressed in this information product are those of the author(s) and do not necessarily reflect the views or policies of FAO. ISBN 978-92-5-130620-8 © FAO, 2018 FAO encourages the use, reproduction and dissemination of material in this information product. Except where otherwise indicated, material may be copied, downloaded and printed for private study, research and teaching purposes, or for use in non-commercial products or services, provided that appropriate acknowledgement of FAO as the source and copyright holder is given and that FAO’s endorsement of users’ views, products or services is not implied in any way. All requests for translation and adaptation rights, and for resale and other commercial use rights should be made via www.fao.org/contact-us/licence-request or addressed to [email protected]. FAO information products are available on the FAO website (www.fao.org/publications) and can be purchased through [email protected]. This publication has been printed using selected products and processes so as to ensure minimal environmental impact and to promote sustainable forest management. ii Contents INTRODUCTION ................................................................................................................ 1 BALKAN COUNTRIES ....................................................................................................... 2 Albania .............................................................................................................................. 2 Bosnia and Herzegovina ................................................................................................... 5 The former Yugoslav Republic of Macedonia .................................................................. 9 Montenegro ..................................................................................................................... 13 Serbia .............................................................................................................................. 17 EASTERN EUROPE ......................................................................................................... 21 Belarus ............................................................................................................................ 21 Relevant activities and programmes in agriculture sector development ..................... 22 The Republic of Moldova ................................................................................................ 24 Ukraine ........................................................................................................................... 28 TURKEY AND CAUCASUS ............................................................................................. 32 Armenia........................................................................................................................... 32 Azerbaijan ....................................................................................................................... 36 Georgia ............................................................................................................................ 40 Turkey ............................................................................................................................. 45 CENTRAL ASIA ................................................................................................................ 49 Kazakhstan ..................................................................................................................... 49 Kyrgyzstan ...................................................................................................................... 53 Tajikistan ........................................................................................................................ 57 Turkmenistan ................................................................................................................. 61 Uzbekistan ...................................................................................................................... 64 CONCLUDING REMARKS .............................................................................................. 67 iii Abstract Many countries in the region have seen positive changes in agricultural development in recent years associated with countries’ reforms during the transition period after the Soviet Union collapse, as well as due to support from international organizations. This report overviews eighteen countries in Eastern Europe and Central Asia. The report examines agriculture sectors and food systems, relevant programmes, it reveals the status of agro-processing sector and value chain development activities, and it covers food loss and waste. In the final analysis it was concluded, that more research and data collection are needed to understand the extent of food loss and waste at regional and national levels. It is recommended to update the regional agro- industry briefs that were compiled by FAO in 2014, and to supplement the briefs with the information on value chain development and food waste and loss. The report encourages better dissemination and sharing of results from partner organizations’ work on value chains, post- harvest handling, agro-processing and particularly food loss and waste activities. The report highlights that food loss and waste in the Europe and Central Asia region is not addressed in a uniform way. The report recommends to conduct more farmers’ trainings in harvesting techniques and improving access to infrastructure and markets (especially for smallholders). Companies and service providers in cold value chains should be supported in handling and increasing capacities. One of the highlighted challenges is a matter of connecting rural producers with logistics centres. Better integration of smallholder farmers into value chains is needed. Improving the enabling environment is crucial and will depend on enhancing the capacity of supporting institutions, including better understandings of current situations and challenges in order to provide countries and relevant stakeholders with solutions on improving effectiveness of value chains, including measures to reduce food loss and waste at all stages of the value chain. iv INTRODUCTION Many countries in the region have seen positive changes in agricultural development in recent years. By and large, this has happened due to countries’ reforms during the transition period after the Soviet Union break-up, as well as due to support from international organizations towards programmes and activities that enhance the capacity of relevant institutions to focus on smallholder farmers’ incomes, improve food security, diversify the agriculture sector, and prove support to small and medium enterprises. With the growing interest among investors in the region, some countries have managed to secure foreign investments in the agro-industry sector. Efforts to improve countries’ access to export markets have brought positive developments in food-quality standards that require innovations in the processing sector, infrastructure and enabling environment. High-value products, including organic produce, and added-value products are becoming of interest and are being supported in some countries in a targeted way (e.g. the wine and cheese sectors). Fragmentation of land holdings remains a challenge in some countries in the region (e.g. Azerbaijan, Georgia, Moldova and Armenia). The setting up of cooperatives and the consolidation of land are being promoted to address this issue. However, the significant role of the state in the agriculture sector leaves few opportunities for privately owned small and medium enterprises in some countries (e.g. Belarus and Turkmenistan). Across the region, a significant share of agricultural products is not traded on the market. Home processing of some products is also still prevailing. Within the past five to ten years, a lot of programmes and projects in the region were focused on the development of agricultural value chains, in particular integrating smallholder farmers into value chains. Such activities are largely supported by international non-governmental organizations, with collaboration and funding from intergovernmental agencies and organizations, such as the Food and Agriculture Organization of the United Nations (FAO), the European Bank for Reconstruction and Development, the World Bank, and more. There is limited information available on the extent of food loss and waste in the region and on
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