Integrated Support for Agriculture and the Food Industry
 

Purpose

The premise underlying the project is that reform and progress to a market economy in the sector will not succeed in the medium and long term in the absence of an integrated approach to agriculture and food production, processing and marketing. Production techniques and management, processing facilities and technology transfer must be market-oriented and in a form which is appropriate to the new situation and must reflect the new socio-economic reality of agriculture and rural dependency.

Working on an integrated basis with the different components of the sector creates an opportunity to achieve understanding across the different interests of farmers; processors, entrepreneurs and others involved in input supply, marketing and distribution. This will better prepare them for the different approaches of a market economy while directly assisting each in becoming professional economic entities/operators.  The three previous agricultural projects were well received by the beneficiaries and have provided models which can be replicated.

The expansion of the project activities to a wider operational area, while allowing the continuation and completion of the activities in the existing locations, will make for greater sustainability. Therefore, the outreach of the successful activities of the previous projects in the areas of crop and livestock farming, food processing and the extension of these into other farming and rural enterprise activities is the direct purpose of this project.

Objectives

The general objective of the project is to develop strong economic farming and agricultural/rural enterprise in Turkmenistan, thereby facilitating an increase in living standards in the rural areas. This will help to ensure an adequate food supply in the country and ultimately, to generate income from exports.

The specific objectives of the project are to:

• Provide support to the development of Associations of private farmers, producer groups and voluntary associations/cooperatives involved in the provision of services and supports.

• Improve the productivity and incomes of newly privatised farms and leaseholdings through improvements in farm management practises, crop yields and livestock management.

• Support the development of small scale food processing and related enterprise servicing farm input supply, marketing and distribution.

• Directly assist the provision and availability of rural credit for farmers and entrepreneurs involved in services and small-scale agroprocessing/rural enterprise.

• Improve relationships and linkages between suppliers, processors and the market, improve or develop local wholesale markets and marketing outlets including export opportunities.

Results Expected

Development of Associations of Private Farmers

• A minimum of 6 associations at local level have been legally constituted and are operating effectively in the project locations.

• The existing two association have been expanded and developed in their operation.

• All of the organisations have a clear legal charter, rules and regulations as well as democratic management structures.

• Members are trained in all relevant aspects of the organisation including duties, rights, obligations, benefits and entitlements

• Inter-association linkages at regional and national level have been set up and are functioning to encourage further geographical development of the association concept.

Farmer Training 

• Crop farmers in the operating locations are trained in the different aspects of crop production covering both the existing state order crops as well as new grain, vegetable and horticultural crops.

• Livestock farmers have been trained in the different aspects of animal husbandry as well as in fodder production.

• Farmers/farm management have been trained in basic financial management and accounting  techniques.

Development of Food and Agri-produce Processing  

• At least 6 new small scale enterprises involved in activities such as input supply and services to farms, harvesting and storage services, food processing or marketing and distribution have been set up.

• A number of existing enterprises have been supported.

• All enterprises are implementing quality assurance and food related enterprise are using HACCP practices.

• Managers and staff of the enterprises have been trained in basic business management including marketing, financial and general management.

 Rural Financial Services 

• A minimum of one pilot Rural Credit Scheme has been set up in each operational area of the project activities

• Schemes are operating on the principle of Savings and Loan organisations with Revolving Capital Funding.

• The schemes are legally constituted and operating on full legal basis either as ‘stand alone’ or linked to an Association while all schemes have appropriate administrative controls including computerised records.

• The schemes are providing savings and credit services including ‘in-kind’ credit facilities to the members.

Marketing Structures/Linkages 

• A marketing agency has been set up within the local project locations and/or regions.

• The agency is capable of providing wholesale services to producers and to the local retail and food service trade and others such as exporters or traders.

• Direct linkages between producers, processors and traders have been created.