NO. Ministry of Agriculture, Water Resources and Processing Industry of the Kyrgyz Republic The Study on Effective Management of Agriculture and the Processing Industry in the Kyrgyz Republic FINAL REPORT March 2007 Japan International Cooperation Agency (JICA) Deloitte Touche Tohmatsu RD JR 07-16 PREFACE In response to a request from the Government of the Kyrgyz Republic, the Government of Japan decided to conduct a study on Effective Management of Agriculture and the Processing Industry in the Kyrgyz Republic and entrusted to the study to the Japan International Cooperation Agency (JICA). JICA selected and dispatched a study team headed by Mr.Yujiro Higashi of Deloitte Touche Tohmatsu between January, 2004 and March, 2007. The team held discussions with the officials concerned of the Government of the Kyrgyz Republic and conducted field surveys at the study area. Upon returning to Japan, the team conducted further studies and prepared this final report. I hope that this report will contribute to the promotion of this project and to the enhancement of friendly relationship between our two countries. Finally, I wish to express my sincere appreciation to the officials concerned of the Government of the Kyrgyz Republic for their close cooperation extended to the study. March 2007 Ariyuki Matsumoto Deputy Vice President Japan International Cooperation Agency Kyrgyz Agricultural Sector Overview Chui Talas 338,476ha 92,171ha Issyk-Kul Jalal-Abad 156,006ha 155,050ha Naryn 108,781ha Osh Wheat小麦 Batken 166,283ha Otherその他穀類 grains 49,875ha Cotton綿花 Tobaccoたばこ Otherその他産業用作物 crops Potatoesじゃがいも Vegetables野菜 Feed飼料 Abbreviation and Acronyms AAK Association of Agro business of Kyrgyzstan ABCC Agro-Business Competitiveness Center ADB Asian Development Bank A/O Aiyl Okmotus A/P Action Plan AP/C Action Plan Component CDF Comprehensive Development Framework EBRD European Bank for Reconstruction and Development FAO Food and Agriculture Organization GTZ Germen Agency for International Technical Assistance IA Issyk-Kul Agro ICAC International Cotton Advisory Committee ICCO Inter-Church Organization for Development Cooperation IFAD International Fund for Agricultural Development IFDC International Center for Soil Fertility and Agricultural Development IMF International Monetary Fund IPM Integrated Pest Management JICA Japan International Corporation Agency KAFC Kyrgyz Agriculture Finance Corporation MAWRPI Ministry of Agriculture, Water Resources and Processing Industry of the Kyrgyz Republic M&E Monitoring and Evaluation MSC Marketing Services Center NGO Non-Governmental Organization NPV Nuclear Polyhedrosis Virus Nzaid New Zealand’s Aid and International Development Agency OJT on-the-job training PDM Project Design Matrix PIU Project Implementation Unit P/P Pilot Project RAS Naryn Rural Advisory Services in Naryn SIDA Swedish International Development Corporation Agency TSA Target Study Areas UNDP United Nations Development Programme USAID United States Agency for International Development WTO World Trade Organization WUA Water Users Association CONTENTS Executive Summary..................................................................................................................................1 Preface Background to and Purpose of the Study................................................................................4 Chapter1 Outline of the Study 1.1 Outline of the Target Study Area ........................................................................................... 1-1 1.1.1 General Picture.......................................................................................................................... 1-1 1.1.2 Climate ...................................................................................................................................... 1-1 1.1.3 Current Agricultural Situation of the Target Area ..................................................................... 1-2 1.2 Outline of the Study .................................................................................................................. 1-5 1.3 Selection of Pilot Project implementation areas...................................................................... 1-15 Chapter 2 Implementation of Pilot Projects Reason for implementing the 3 Pilot Projects .................................................................................... 2-1 2.1 Mady Cotton Demonstration Farms Pilot Project ............................................................... 2-3 2.1.1 Background of selection of the Pilot Project............................................................................. 2-3 2.1.2 Activities and Budget Allocation for Pilot Project.................................................................... 2-8 2.1.3 Project Design Matrix ............................................................................................................. 2-10 2.1.4 Outline of JICA Cotton Pilot Project in the First Year .............................................................2-11 2.1.5 Outline of JICA Cotton Pilot Project in the Second Year........................................................ 2-12 2.1.6 Attainment and Technology Transfer .................................................................................... 2-20 2.1.7 Prospect ................................................................................................................................. 2-27 2.2 Sheep Fattening Experiment Pilot Project.......................................................................... 2-29 2.2.1 Background of selection of the Pilot Project and its objectives .............................................. 2-29 2.2.2 Project Outline and its budget of Second year ........................................................................ 2-31 2.2.3 Project Design Matrix ............................................................................................................. 2-33 2.2.4 Implementation of the P/P (for 2 years) .................................................................................. 2-34 2.2.5 Technical transfers................................................................................................................... 2-51 2.2.6 Accomplishment and Issues of Project Implementation ......................................................... 2-51 2.3 Creating a Marketing Services Center in Tyup rayon Pilot Project................................. 2-57 2.3.1 Background and Reasons for selecting the Pilot Project......................................................... 2-57 2.3.2 Scope and budget of the P/P.................................................................................................... 2-58 2.3.3 Project Design Matrix ............................................................................................................. 2-60 2.3.4 Implementation of P/P of 1st year (July 2005 – March 2006) ................................................. 2-61 2.3.5 Implementation Summary for April to August 2006............................................................... 2-70 2.3.6 Implementation Summary for September to November 2006................................................. 2-75 2.3.7 Technology Transfer................................................................................................................ 2-81 2.3.8 Products of Project Implementation........................................................................................ 2-84 2.3.9 Ensuring the Sustainability of MSC Activities after the P/P ends........................................... 2-86 i Chapter 3 Master Plan 3.1 Proposal for a Master Plan for 3 Target Study Areas (Osh, Naryn and Issyk-Kul oblast)... 3-1 3.1.1 Objective for preparing the Master Plan and Underlying Awareness........................................ 3-2 3.1.2 Composition of the Master Plan................................................................................................ 3-4 3.2 Cotton Growing Assistance Plan (A/P-1) .............................................................................. 3-5 3.2.1 Background to the Plan ............................................................................................................. 3-5 3.2.2 Cotton related Issues in Major Cotton Producing Countries..................................................... 3-9 3.2.3 Cotton in Central Asia............................................................................................................. 3-16 3.2.4 Main Tasks and Objectives of the Plan ................................................................................... 3-25 3.2.5 The Goal of the Plan................................................................................................................ 3-27 3.2.6 Cotton Production Plan ........................................................................................................... 3-27 3.2.7 Action Plans .......................................................................................................................... 3-33 3.2.7.1 Cotton Industry Development Policy (AP/C 1-1)................................................................ 3-35 3.2.7.2 Institutional Capacity Building Plan (AP/C 1-2) ................................................................. 3-38 3-3 Action Plan and its Components for Naryn and Issyk-Kul oblasts .................................. 3-45 3.3.1 Action Plan for improvement of Animal Husbandry, in particular Sheep breeding in Naryn. 3-45 3.3.2 Action Plan for improvement