USAID Kyrgyz Agro-Input Enterprise Development (KAED) Project

The Kyrgyz Agro-Input Enterprise Development (KAED) project, financed by USAID for $24 million and implemented by the International Fertilizer Development Center (IFDC), has been operating in Kyrgyzstan since September 1, 2001.

The project encouraged Kyrgyz farmers to adopt practices that will increase crop production and rural incomes. KAED focused its efforts on entrepreneurs, farmers and commodities that offer the best potential for improving sustainable agricultural production and opportunities for generating employment. The project was implemented using local and international experts and staff.

KAED worked to improve food security through:

  • Developing agro-input distribution systems.
  • Transferring agricultural technology to farmers.
  • Supporting seed and livestock sectors.
  • Promoting improved agricultural practices.
  • Bringing degraded land back into production.

Some of the main project achievements include:

  • Agro-input market development: From a base of $2 million, the project-supported agro-dealers increased their sales turnover to $45 million in 2008 and opened 35 retail farm stores, which supply modern inputs to farmers.  Sales of legally imported fertilizer rose from zero in 2001 and 5,000 metric tons (mt) in 2002 to 95,000 mt in 2008. The project fostered comparable increases in the sale of certified seed.
  • Policy reform: The project-supported agribusiness trade association (“Jer Azygy”) has an important private sector influence on agricultural policy through a historic partnership with the legislature. It helped: remove the 20% value added tax on fertilizer imports; shape the Kyrgyz agricultural strategy; amend the land laws to improve access to credit; and expedite the approval process for new seed varieties.
  • KAED collaborated with various stakeholders (e.g., dealer networks, farm stores, non-governmental organizations) to increase the availability of inputs and linked the relatively small and isolated Kyrgyz input market with reputable international suppliers. This resulted in more than 12 new business relationships in 2008 valued in the initial stages at more than $2.1 million.
  • KAED brought to fruition the Global Development Alliance (GDA) with the Eurasia Group, whose member companies became key partners in helping farmers grow more feed for livestock and gain access to modern farm machinery.
    • Capacity building: Over the last four years, the project organized:
    • 152 training programs for 5,327 farmers and other participants.
    • 63 field days for 4,715 farmers.
    • 19 roundtables/seminars for 1,444 attendees.
    • 7 study tours/trade missions abroad for 95 agribusiness managers.
  • The KAED project helped increase the yields of wheat and other vital food crops and the quantity and quality of animal feed for the production of milk, eggs and meat. The project alliances with the Eurasia Group, Oasis, TES Center and others have enabled farmers to raise more and better quality soybeans, sunflower and corn as sources of protein feed. This, in turn, helped develop feed and edible oil value chains and transform the poultry sector so that egg producers could now compete with imported eggs from China and Russia where feed is subsidized – and launch the country on a trajectory toward self-sufficiency.
  • Wheat yield increases for the 20,000 targeted farmers (on 40,000 hectares [ha]) increased each year by an average of over 400 kilograms (kg) a year for a total increase of 1.3 mt over the base of 3.8 mt yield, which resulted in a total additional production from project efforts of 52,000 mt.
  • The project introduced and promoted the production of soybeans as a source of protein animal feed and edible oil (both of which are import-dependent).  Soybean-based feed increased by 37% in 2013 to reach a total of 4,400 mt, and edible oil increased by 18% to 1,400 mt.
  • Corn production increased by an average of 5% in each of the first three years for the 8,000 project farmers (with an average of 1 ha each), resulting in an additional 12,000 mt.
  • Due to project intervention in the poultry sector, domestic egg production is estimated from the official statistics to have increased from a 25% market share in 2010 to 60% in 2013 and 90% in 2014.
  • Fertilizer use increased from 50 kg/ha to 65 kg/ha among project-supported farmers.
  • Edible oil production increased from 830 mt to 1,400 mt in Year 3.
  • In the framework of land rehabilitation activities, the project brought back into production 5,500 ha of land across the Kyrgyz Republic.

Last updated: June 11, 2015

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