Funded by the U.S. Agency for International Development (USAID), the Kyrgyz Agro-Input Enterprise Development (KAED) project supported the development of agro-dealers and increased agricultural production by encouraging the use of improved technologies in the Ferghana Valley of southern Kyrgyzstan. Toward the end of the project, activities shifted to advance input market development in northern Kyrgyzstan and to integrate agricultural markets nationwide. The original KAED (2001-2008) was extended under KAED II until August 2010. Because of the success of KAED I and II, the Follow-On project began September 1, 2010.
In 2001, legal imports of fertilizer in southern Kyrgyzstan were only 729 metric tons (mt), and the contraband market was almost 90 percent of total fertilizer sales. In 2006, legal fertilizer imports in the country totaled 55,000 mt, and increased in 2008 to 107,000 mt – almost doubling in two years, despite record-high world market prices. The two major crop protection product companies in the country increased sales by 65 percent in 2008 compared with 2007, and certified seed sales grew by 25 percent in 2008.
KAED reached more than 330,000 farmers who adopted new technologies and took steps to become commercial farmers. Increases in productivity and incomes are estimated to be $100 million in increased agricultural production, according to independent surveys. The project linked the relatively small and isolated Kyrgyz input market with reputable international suppliers, resulting in more than 40 new business relationships initially valued at more than $4 million. KAED worked to develop input distribution systems and food security-related technology transfer for wheat, feed crops and dairy cows; this enabled the project to respond quickly to the recent food crisis.
One of the major successes of KAED was the development of the Association of Agribusinessmen of Kyrgyzstan (AAK). AAK coordinates the work of more than 140 producers, suppliers and agro-input dealers in the country. From a base of $2 million, AAK dealers increased revenue to $45 million in 2008. Input sales by farm stores quadrupled over 2007-2008. The association successfully works for the protection of members' rights and interests and provides networking and training opportunities.
The AAK dealer network offers quality inputs to 35 farm stores, each serving an average customer base of 2,700 farmers (totaling about 95,000 farmers). As a result, the distance farmers traveled to buy quality inputs in 2008 was reduced to 2.5 miles for AAK customers. Other farmers had to travel seven miles to obtain inputs.
Advanced Technologies Improved Farmers' Livelihoods (Taken from IFDC Report Volume 37, No.1)
2011 Marks 10th Anniversary of IFDC in Kyrgyzstan