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Oasis Agro and KAED example from Kyrgyzstan

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“Oasis Agro and KAED example from Kyrgyzstan”, presented by Sung Jung and Alisher Kasymov, IFDC, Kyrgyzstan at the ReSAKSS-Asia Conference, Nov 14-16, 2011, in Kathmandu, Nepal.

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Oasis Agro and KAED example from Kyrgyzstan

  1. 1. PPP Case Study – IFDC and Oasis Agro Welcome
  2. 2. Agriculture in Kyrgyzstan Role in the Economy • Agriculture contributes 37% to GDP – the highest share in Central Asia • Agriculture accounts for 11% of total exports • Agriculture absorbs 55% of total labor force
  3. 3. Some Key Features • 56% of total land area is agricultural area (20 mln ha total area of KG) • 7% is arable land, 87% pastures (70,000 ha of land is not cultivated due to outdated irrigation systems) The KAED project is addressing this issue by implementing rehabilitation programs throughout Kyrgyzstan.
  4. 4. New Investments In the Last Two Years: • GDA with Eurasia group-$ 3.0 Million in agricultural machinery (outlook for expansion is very promising) • Oasis Agro- $600,000 into the poultry industry • Domestic investment by farmers into the poultry industry is approximately $5 million
  5. 5. PPP Case Study Supporting small scale poultry industry 45-50% of eggs in the South produced domestically versus 10% two years ago) This was due to: • Poultry school established (175 farmers trained in 2011 with 325 additional farmers will be trained) • Soybean processing facility installed and appropriate protein based soybean feed produced at commercial scale through PPP with Oasis-Agro • New poultry school opened in Kant (Northern Kyrgyzstan (December 2010)
  6. 6. PPP Overview Public Sector Strengths  Development-Focused  Awareness of Policy Trends  Project Implementation Private Sector Strengths  Market-Focused  Awareness of Market Trends  Sustainable Growth
  7. 7. PPP Overview THE DISPARITY These seemingly divergent strengths can lead to a lack of common ground which can diminish communication and increase suspicion. THE POTENTIAL This parity can be bridged and indeed synergized – that is, working off each other’s strengths to bring about powerful transformation.
  8. 8. Oasis Agro Vision Statement: To transform the lives of peoples in Central Asia by fostering business and job creation through high quality agriculturally based products
  9. 9. Oasis Agro Contributions 13-Week Old Pullets Poultry Feeds Poultry Training Feed Grains Services Equipment
  10. 10. Soybean Project Three-year Progress 2008: Promotion 2009: 9.5 hectares 2010: 74 hectares 2011: 150 hectares Ongoing Challenges Low Yields Competing Grains Unfulfilled Contracts Resistant Farmers
  11. 11. Poultry School Purpose The poultry school provides training in industry-standard practices, thus leveraging local growers to better sustain a profitable business. This school is the main catalyst for the formation of small to medium poultry growers in the region.
  12. 12. The Poultry School Courses Over 30 courses since May 2009 in Kyrgyz, Uzbek and Russian languages Results Oasis Agro has distributed over 150,000 pullets throughout Kyrgyzstan. The vast majority of these growers have studied in the poultry school. Students A total of 300 students from throughout Kyrgyzstan have studied at the school. Nearly 75% of these students are now raising chickens.
  13. 13. On-Site M&E Provide support and consultation to graduates of the school – includes monitoring and evaluation which increases production and profitability for both the grower and Oasis Agro.
  14. 14. Value-Added Products With challenging infrastructure issues in southern Kyrgyzstan, Oasis Agro provides the missing links in the value chain: buying feed ingredients from local growers and providing the technology and expertise to produce high-quality poultry feed.
  15. 15. Economic Impact  Employs 45 nationals  Produces 10 metric tons of high quality feed a day  Has Introduced 150,000 layers throughout Kyrgyzstan over the two years  Purchases $100,000 worth of grains a month – all from local growers  Has helped to generate $300,000 - $400,000 worth of wholesale eggs every month.
  16. 16. Lessons Learned from PPP  Small can be Beautiful  Work off of Strengths  Common Vision  Trust is Essential
  17. 17. Thank You!

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