Bishkek, July 28, 2015 –The World
Bank Group, working with the Kyrgyz government and other partners, has
launched an initiative to boost agricultural production and encourage local
economic development by addressing key challenges in the country’s dairy
Starting with a pilot in Issyk-Kul province, the government’s Dairy Sector
Development Program aims to strengthen the sector along the entire supply
chain and improve regulations and access to finance. The objective of the
pilot program is to boost the quantity and quality of raw milk, which will
lead to improved dairy products from Issyk-Kul, resulting in increased
exports. Ultimately, the program aims to make Kyrgyz dairy products internationally
recognized and the country’s leading export products.
“The dairy sector is crucial for our region as it provides income opportunities
for thousands of people, contributing to the country’s economic growth
and reducing poverty in rural areas of the Kyrgyz Republic,” said Emilbek
Kaptagaev, Plenipotentiary Representative of the Government of the Kyrgyz
Republic in Issyk-Kul. “This groundbreaking new program will increase
the competitiveness of local dairy products and expand their reach to regional
and global markets.”
Leveraging the government’s national
animal identification and registration program, the World Bank Group program
will provide support by vaccinating all animals in the pilot zone. Other
activities aim to boost the capacity of state-owned and private veterinary
services and of private dairy processing companies and their supply chains
(including farms, milk collectors, and cooperatives) in Issyk-Kul province.
The program will also work with financial institutions to help develop
financing products and mobile payment solutions for dairy supply chains,
and with the government to create a favourable business environment for
the sector in order to attract more private investment.
“Dairy in Issyk-Kul is a major opportunity for farmers considering the
mountainous, pasture-based, agro-ecology and strong tradition of farming
and dairying,” said Mai Nguyen, IFC/World Bank Group Program Manager.
“But the sector is ridden with challenges. By coordinating stakeholder
efforts to address the sector’s shortcomings, the program will strengthen
this crucial agribusiness supply chain and improve the livelihoods of thousands
of people. This program, however, is only the beginning. We intend to help
the government replicate the approach across the country.”
Agribusiness accounts for nearly 13 percent of Kyrgyz exports, one-fifth
of the country’s GDP, and employs about one-third of the workforce. In
this context, the dairy sector is vital, with the Kyrgyz Republic striving
to establish itself as a leading milk producer in the region.
The Dairy Sector Development Program pilot in Issyk-Kul Province is supported
by the International Development Association (IDA) and International Finance
Corporation (IFC), members of the World Bank Group. Technical assistance
activities will be funded by the Austrian Federal Ministry of Finance,
the Government of Japan, the Government of Switzerland, and the UK’s DFID.
Partners in this program include, amongst others, FAO, IFAD, and GiZ.
About the World Bank Group
The World Bank Group is one of the world's largest sources of funding and
knowledge for developing countries. It comprises five closely associated
institutions: the International Bank for Reconstruction and Development
(IBRD) and the International Development Association (IDA), which together
form the World Bank; the International Finance Corporation (IFC); the Multilateral
Investment Guarantee Agency (MIGA); and the International Centre for Settlement
of Investment Disputes (ICSID).
The World Bank’s overall mission in
the Kyrgyz Republic is to reduce poverty, and to promote economic growth
and shared prosperity. Forty five percent of the World Bank’s assistance
to the Kyrgyz Republic is in the form of grants. The other fifty five percent
is in highly concessional credits – no interest, and only a 0.75 percent
service charge. Credits are repayable in 40 years, including a 10-year
grace period, while grants require no repayment. The financial assistance
to the Kyrgyz Republic since 1992 amounts to over $1 billion.
The Kyrgyz Republic became a member of IFC in 1993. Since 1996, IFC has
invested more than $113 million to support over 30 private sector projects
across a variety of sectors. As of June 30, 2014, IFC’s portfolio in the
Kyrgyz Republic stands at $30 million, with investments in financial markets,
manufacturing, and infrastructure sectors.
For more information, please visit www.worldbank.org,