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Livestock in Central Asia: from Rural Subsistence to Engine of Growth?

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Livestock in Central Asia: from Rural Subsistence to Engine of Growth? A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Robinson, Sarah Working Paper Livestock in Central Asia: From rural subsistence to engine of growth? Discussion Paper, No. 193 Provided in Cooperation with: Leibniz Institute of Agricultural Development in Transition Economies (IAMO), Halle (Saale) Suggested Citation: Robinson, Sarah (2020) : Livestock in Central Asia: From rural subsistence to engine of growth?, Discussion Paper, No. 193, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), Halle (Saale), http://nbn-resolving.de/urn:nbn:de:gbv:3:2-120441 This Version is available at: http://hdl.handle.net/10419/216842 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu Leibniz Institute of Agricultural Development in Transition Economies 2020 Livestock in #193 Central Asia: From rural subsistence to engine of growth? Sarah Robinson Leibniz Institute of Agricultural Development in Transition Economies (IAMO) Theodor-Lieser-Str. 2 | 06120 Halle (Saale) | Germany | + 49 345 2928-0 [email protected] | www.iamo.de/en | iamoLeibniz | @iamoLeibniz AUTHOR BIOS Sarah Robinson has worked on rural livelihoods Interdisciplinary Centre for Conservation Science, and pastoralist systems in Central Asia since 1997, Oxford University, UK focussing on the interaction of biological, econom- Email: [email protected] ic, and political factors on pastoralists and wildlife. She has recently worked on the project ‘ Revitalising animal husbandry in Central Asia: A fve-country analysis ’ at IAMO and is a visiting researcher at the Interdisciplinary Centre for Conservation Science at Oxford University. Discussion Papers are interim reports on work of the Leibniz Institute of Agricultural Development in Transition Economies and have received only limited reviews. Views or opinions expressed in them do not necessarily represent those of IAMO. Comments are welcome and should be addressed directly to the author(s). The series Discussion Papers is edited by: Dr. Linde Götz (IAMO) Dr. Ivan Đurić (IAMO) Prof. Dr. Thomas Herzfeld (IAMO) Dr. Judith Möllers (IAMO) Dr. Daniel Müller (IAMO) ISSN 1438-2172 Livestock in Central Asia: From rural subsistence to engine of growth? ABSTRACT This paper presents an overview of the livestock sector in Central Asia using national statistics and feld survey data. Growing consumer demand and underused pasture reserves suggest sig- nifcant potential for growth. But production is fragmented between many small household pro- ducers with poor access to land, family farms and very large (but often inefcient) enterprises. Few producers can supply quality livestock products at high volumes, leading some meat and milk processors to favour imported produce. Peri-urban milk suppliers may participate in value chains through wholesalers, but in remoter areas farms specialise in meat production, reliant on long chains of intermediaries. Only in Kazakhstan do international agreements, slaughter and animal health arrangements favour export prospects in the near future. Since the 1990s, winter fodder defcits have limited livestock productivity. Domestic fodder pro- duction is increasing in Kazakhstan and Kyrgyzstan, but is hindered by state order policies in Turkmenistan and Uzbekistan. Dairy producers close to markets often provide high quality fod- der, whilst need for supplements is lower amongst mobile meat producers with winter pasture. Amongst the latter, a class of large commercial operations is emerging, whilst smaller farms lack- ing access to grazing resources fnd it harder to grow. Government policy often magnifes diferences between small and large producers, for example through conditions for subsidies or land access procedures. Subsidised credit is available in most republics but uptake is limited by efective demand. Improved public services, better support for service cooperatives and decentralised processing and slaughter facilities would help producers increase value from their livestock. KEYWORDS Central Asia, livestock, marketing, fodder, pasture, policy 1 Livestock in Central Asia: From rural subsistence to engine of growth? РЕЗЮМЕ Животноводство в Центральной Азии: От подсобного хозяйства к двигателю роста? Данная статья представляет обзор сектора животноводства в Центральной Азии с исполь- зованием данных национальной статистики и полевых исследований. Растущий потреби- тельский спрос и недостаточно используемые запасы пастбищ предполагают значительный потенциал для роста. Но производство остается раздробленным между мелкими домашни- ми производителями с плохим доступом к земле, семейными фермерскими хозяйствами и крупными (но часто неэффективными) сельскохозяйственными предприятиями. Немногих производителей могут поставлять качественную продукцию животноводства в больших объемах. В результате переработчики мяса и молока также предпочитают им- портную продукцию. Пригородные производители молока могут участвовать в цепочках добавленной стоимости через оптовых торговцев. В отдаленных районах фермерские хо- зяйства специализируются на производстве мяса, полагаясь на длинные посреднические цепочки. Только в Казахстане международные соглашения и меры по убою и охране здоро- вья животных благоприятствуют наращиванию экспорта в ближайшее время. С 1990-х годов продуктивность скота ограничена дефицитом зимних кормов. Происходит рост внутреннего производства кормов в Казахстане и Кыргызстане. В тоже время политика государственной закупки сдерживает наращивание производства кормов в Туркменистане и Узбекистане. Производители молочной продукции, расположенные вблизи продоволь- ственных рынков, часто имеют доступ к высококачественным кормам. В то время доступ к выпасу на зимних пастбищах снижает потребность в кормовых добавках у производи- телей мяса, среди которых появляется класс крупных коммерческих предприятий. Мелкие фермерские хозяйства, не имеющие доступ к пастбищным ресурсам, испытывают пробле- мы с расширением производства. Государственная политика часто увеличивает различия между мелкими и крупными произ- водителями, например, из-за условий предоставлений субсидий или процедур доступа к земле. Субсидированный кредит доступен в большинстве стран региона, но его исполь- зование ограничено платежеспособным спросом. Совершенствование системы государ- ственных услуг, более эффективная поддержка сервисных кооперативов и предприятий по переработке и убою помогут производителям повысить доходы от животноводства. КЛЮЧЕВЫЕ СЛОВА Центральная Азия, животноводство, сбыт, корм для скота, пастбище, политика 2 Livestock in Central Asia: From rural subsistence to engine of growth? TABLE OF CONTENTS ABSTRACT 1 РЕЗЮМЕ 2 1 \ Introduction 4 2 \ Five country comparison using national data 5 2.1 | Collapse and transition 5 2.2 | Role of agriculture and livestock sector in the national economy 6 2.3 | Agricultural reform since independence 7 2.4 | Animal nutrition 13 2.5 | Production outcomes and performance 15 2.6 | Current reforms and policy issues 19 3 \ Highlights from country case studies 22 3.1 | Market participation 22 3.2 | Pasture access and fodder provision 25 3.3 | Credit and subsidies 28 3.4 | Constraints to development of the livestock sector 30 4 \ Conclusions and outlook 31 4.1 | Summary of key points 31 4.2 | Emerging types of livestock producer 33 4.3 | Government support to the sector 34 REFERENCES 35 ANNEX 1. QUANTITATIVE SURVEY METHODS AND STUDY SITE LOCATIONS 39 3 Livestock in Central Asia: From rural subsistence to engine of growth? 1 \ Introduction1 In this paper we summarise key fndings from the ANICANET project Revitalising animal hus- bandry in Central Asia: a fve-country analysis, focussing on the contribution of the livestock sector (in particular milk and beef production) to national economies, trends in grazing and feeding pat- terns, value chain development and government policy. Analysis is based on national statistical data;2 country reports produced by project partners for the fve republics (Kazakhstan, Kyrgyzs- tan, Tajikistan, Turkmenistan and Uzbekistan); and feldwork at case study sites in Kazakhstan Kyrgyzstan and Uzbekistan, using semi-structured interviews and a quantitative survey. Once a supplier of meat, dairy products and animal fbre to the Soviet Union, the Central Asian livestock sector sufered severe reversals following independence. Economic collapse combined with the breakdown of feed supply chains, long distance grazing management and veterinary systems led to
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