Uzbekistan has secured $38 million to modernize its dairy sector

According to the decree signed by President Shavkat Mirziyoyev on May 14, IFAD (the International Fund for Agricultural Development) will provide two long-term loans:

• $30 million at an annual interest rate of 1.41%,

• $7.8 million at an annual interest rate of 5.3%.

The repayment period is 25 years, including a five-year grace period.

Additionally:

• Project participants will invest $5.94 million of their own funds.

• The state contribution will amount to $9.27 million and will include tax, lease, and customs benefits.

Key areas of the project include:

• 100 milk collection centers will be established across five regions — Syrdarya, Jizzakh, Samarkand, Kashkadarya, and Surkhandarya. These centers are expected to serve 12,000 small-scale farms from 320 mahallas.

• Citizens and dehkan farms will be eligible for preferential loans of up to $250,000 to establish or modernize dairy processing enterprises.

• Training will be provided for 1,200 farmers, with international experts involved in improving herd productivity and farm management efficiency.

• A digital platform called “National Dairy Products” will be created to connect producers and buyers and to streamline trade operations within the sector.