Since 2018, imports of dairy products to Uzbekistan have been growing by an average of 22.5% - Akram Talibov
According to Akram Talibov, in the livestock industry of Uzbekistan, more than 90% of producers are represented by small dekhkan farms, which do not have sufficient resources to maintain high productivity due to the limited area of pastures. However, the expert noted, with the increase in the purchasing power of the population in Uzbekistan, the demand for dairy products is growing, which stimulates the development of the industry.
Over the past year, Uzbekistan imported 36.7 thousand tons of dairy products, which is 40.9% higher than the volumes of 2021. Every year since 2018, the volume of imports of dairy products in the country has been growing by an average of 22.5%.
In terms of volumes of supplies of dairy products to Uzbekistan, Russia ranks first, accounting for 35.8% of imports of these products last year. Belarus is also a major exporter with a share of 24.7%. The top 5 included Iran (8.4%), France (8.1%) and Kazakhstan (8%). In total, the top 10 countries accounted for 96% of the value of imports of dairy products in Uzbekistan.
In the structure of imports of dairy products in Uzbekistan, the largest share at the end of 2022 was cheese - 32% of supplies in value terms. Significant volumes in 2022 also came from fermented milk products (16.5%), milk powder (15.2%), butter and other milk fats (15.1%), as well as whey ingredients (9.4%).
“Uzbek people are sensitive to prices,” an Uzbek expert explains the situation in the country. - Per capita income in Uzbekistan is much lower than in Kazakhstan, Russia, and Belarus. And this, of course, causes a large wave of counterfeit in the production of dairy products. The state understands this well. I am a big supporter of the Kyrgyz option. I believe that the state should not allocate any grants or standards, but should control the standards of milk production and processing.”
According to Akram Talibov, active government support for dairy producers in Uzbekistan creates potential for further growth in the production of drinking dairy products. The government is seeking to protect local producers by increasing import duties, providing additional subsidies for the livestock sector, attracting international investors and building state-owned dairy enterprises.
Separately, the expert noted the dynamics of meat production in Uzbekistan. It remains positive throughout 2017–2022. In 2022, meat production in the country reached 2,726 thousand tons, which is 3.4% higher than in 2021. In the structure of production, the largest share was accounted for by beef, the volume of which in 2022 amounted to 1,194.1 thousand tons (+1.8% by 2021).
As of October 1, 2022, the cattle population in the republic reached 13,582.5 thousand heads. Akram Talibov recalled that the bulk of the cattle population was observed in private farms - 12,497.8 thousand heads, or 92% of the total population. “We will have to work in the next 10-15 years with small farms, small farms. Most cattle are in private household plots, and we need to work with this,” the speaker commented.
A significant share of the total cattle population is in the Samarkand and Kashkadarya regions (12.4%). An increase in the number of cattle was also recorded in the Bukhara region (9.6%) and the Republic of Karakalpakstan (8.8%). The average milk yield per cow in Uzbekistan is 12.8 liters. Average price for 1 kg from the farm without VAT: 36.6-42.9 rubles/kg. Cost of feeding: 2,500-4,000 sum per head.
“Uzbekistan in the development of the dairy industry is very similar in its problems to Kazakhstan, while it has great potential in conditions of high-quality management. What conclusions can be drawn? A sharp rise in interest rates in neighboring countries will lead to changes in the market structure and open up new opportunities for players from non-CIS countries. Consolidation in the dairy market of Uzbekistan will inevitably lead to the consolidation of farms and improvement of business forms. Retail is significantly ahead of production in development, and there is a constant shortage of high-quality dairy products on the market,” Akram Talibov concluded at the end of his speech.
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 Cattle Breeds , FRANCE GROUP
Sponsor: Tauras-Fenix
