Kazakhstan 28.11.2023

Kyrgyzstan presented a project to modernize the supply of raw materials for dairy processing enterprises

Source: The DairyNews
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Azizbek Kyrgyzbaev, Chairman of the Board of the Livestock Union of Kyrgyzstan, presented a project to modernize the supply chain of raw materials for a milk processing plant in Kyrgyzstan at AqAltyn 2023, The DairyNews reports.
Kyrgyzstan presented a project to modernize the supply of raw materials for dairy processing enterprises

Today in Kyrgyzstan, 95% of milk is produced by small farmers and households, while 98% of milk supplied for processing is collected. 70% of such milk does not meet the minimum quality requirements for the production of certain types of products. Azizbek Kyrgyzbaev noted that 99% of farms in the country are essentially unprofitable due to low animal productivity and lower prices for raw milk by intermediaries.

The situation with milk in Kyrgyzstan contains a chain of negative factors that influence each other: low purchase price for milk - lack of knowledge and competence - low animal productivity - access to adequate financial services - veterinary medicine and feed rations - equipment and infrastructure for keeping animals.

Addressing these issues for farmers could lead to an increase in the number and size of successful dairy farms, which in turn would allow milk processors to modernize and optimize supply chains, the expert says.

The Livestock Union of Kyrgyzstan proposes to select potential villages (5-10 villages) and mobilize farmers into groups of milk suppliers (5-10 farmers per group) who have the motivation and willingness to modernize the farm, and also keep 5 or more dairy cows. It is also necessary that the processor provide equipment for collecting and cooling milk. A selection of foremen will be carried out and a contract for the supply of milk will be concluded between the foreman and the processor. The foreman must also be ready to provide his field as a training field for demonstrating agricultural technologies for growing forage crops.

First, with alternative financial instruments (investments, animal leasing, mezzanine financing), it is planned to create 1-2 model farms in the Talas region with a size of 30-50 cows. Model farms are planned to be considered as pilot projects for blended finance, and they will also act as training grounds for practical training of farmers. In addition, it is planned to attract young people and students for internships and work in model farms.

The Livestock Union will create a consortium with a specialized company to provide a range of training on all aspects of milk production.

Issues of low animal productivity will be resolved within the framework of the project through:

  • veterinary medicine (animal health and artificial insemination) plus feed ration - subject to the recommendations of specialists, an increase in animal productivity is expected by 10-20%;

  • equipment and infrastructure for keeping animals - provided that the recommendations of experts are followed, productivity is expected to increase by 10-20%.

If the farmer demonstrates the above indicators, as well as if there are appropriate recommendations from a specialist in veterinary medicine, feed rations and farm development, the farmer can apply to the BTI Fund with an application for financing the purchase of highly productive animals.

According to the chairman of the Union, in this way it is planned to increase the productivity of cows in the farms that are members of the GPM to 3000-3500 liters of milk per year.

If the project for the development of dairy farming in the villages of Kyrgyzstan is launched, the first 10 family dairy farms will be opened in 2024-2026, and by 2028 the organization aims to create up to 100 family dairy farms, 2,000 heads of milking herd and 500 jobs, shared Azizbek Kyrgyzbaev.

The I International Conference AqAltyn - Dairy Industry of Kazakhstan will be held on November 28, 2023 in Turkestan, Kazakhstan.

General partner: Clever Machines

Technology partner: Kieselmann

Altyn Sponsor: Borte Engineering

Altyn Sponsor: ANR Engineering

Altyn Sponsor: Aseptic Packaging

Official partners: National Chamber of Entrepreneurs of the Republic of Kazakhstan "Atameken ", Dairy Union of Kazakhstan , Republican Chamber of Dairy and Combined Breeds of Cattle , FRANCE GROUP

Sponsor: Tauras-Fenix

Aaron Smith
Aaron Smith
Professor of Agricultural and Resource Economics at the University of California
Every five years, the Department of Agriculture takes a census of farms, all two million of them. The most recent census occurred in 2022, and USDA released the data this week.
Dr. Sylvain Charlebois
Dr. Sylvain Charlebois
senior director of the agri-food analytics lab and a professor in food distribution and policy at Dalhousie University.
‘Lab-grown’ animal-free dairy protein receives approval, paving the way for sustainable alternatives in the dairy industry.
February 2024
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