The proposed project will contribute to the diversification of exports and the connection to regional markets for the Republic of Kazakhstan and the Kyrgyz Republic. The project is part of the development of the Almaty-Bishkek Economic Corridor (ABEC). The project will support the modernization of wholesale markets (WSMs) to improve food safety, food security, and increase food trade within and outside the region. Modern WSM infrastructure will facilitate certification for exports, traceability systems, and most importantly, transparent market access and storage of fresh produce. As a result, market demand will allow for production growth and deliver incentives for quality, which will benefit small- and medium-sized producers in the region.
|Project Name||Almaty-Bishkek Economic Corridor: Modern Agriculture Wholesale Market Development Project|
|Project Type / Modality of Assistance||Grant
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
|Sector / Subsector||
Agriculture, natural resources and rural development / Agricultural policy, institutional and capacity development - Agro-industry, marketing, and trade
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Description||The proposed project will contribute to the diversification of exports and the connection to regional markets for the Republic of Kazakhstan and the Kyrgyz Republic. The project is part of the development of the Almaty-Bishkek Economic Corridor (ABEC). The project will support the modernization of wholesale markets (WSMs) to improve food safety, food security, and increase food trade within and outside the region. Modern WSM infrastructure will facilitate certification for exports, traceability systems, and most importantly, transparent market access and storage of fresh produce. As a result, market demand will allow for production growth and deliver incentives for quality, which will benefit small- and medium-sized producers in the region.|
|Project Rationale and Linkage to Country/Regional Strategy||
In Kazakhstan and the Kyrgyz Republic, horticulture value chains are concentrated around Almaty, Bishkek, and their surrounding areas where most of the production, trading and consumption is concentrated. Wholesale trading is mainly occurring in Kazakhstan through the Altyn Orda market (42 hectares [ha] size) in Almaty province and Shareem market (3 ha) in Astana, as well as in the Kyrgyz Republic through Dordoi Food market with 14 ha and Alamedin market (15 ha), both in Bishkek. Most of the flow of horticulture products is channeled through these markets, which require significant modernization to comply with changing domestic regulations, the standards of the Eurasian Economic Union (EEU) and other major export destinations for fruits and vegetables that are produced in ABEC and the Fergana valley. Most commonly, fresh products are sold from the back of a truck to large and small retailers, to hotels and restaurants, and further to other WSMs of Astana or Shymkent. If the produce is not sold within a day, it is often spoiled and goes to waste. Producers or farmers often lack direct access to the WSM because of the segregated production structure with little cooperation and consolidation at the producer level.
Kazakhstan and the Kyrgyz Republic are both net food importers. Food security is compromised due to the i) high dependency on food imports during the first half of the year; ii) lack of incentives for producers to expand the season, quantity and quality of produce due to low margins; iii) increasing market power and vertical integration for horticulture products; and iv) adhoc and uncoordinated daily trading systems because of inadequate storage and cold-chain logistics facilities, which lead to high food waste and price fluctuations. Current WSM, storage, and logistics infrastructure limit the export potential for horticulture products and lead to inefficiencies in domestic food distribution with significant effects for food security and food safety. Reduced food waste and more efficient value chains have significant potential to reduce unnecessary use of natural resources and emittance of greenhouse gases.
The share of agriculture in GDP in Kazakhstan must increase five-fold by 2050.
Raising the well-being in the Kyrgyz Republic by improving connectivity with regional markets and developing the agriculture sector.
|Outcome||Share of safe and certified horticultural exports increased|
Wholesale market storage and logistics facilities constructed.
Export certification for EEU and other major markets established.
Effective ownership and management of collection centers established.
|Geographical Location||Bishkek, Chuy, Issyk-Kul|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Responsible ADB Officer||Woldring, Hans Siewert|
|Responsible ADB Department||Central and West Asia Department|
|Responsible ADB Division||Environment, Natural Resources & Agriculture Division, CWRD|
|Concept Clearance||07 Dec 2018|
|Fact Finding||10 Mar 2021 to 17 Mar 2021|
|MRM||14 Apr 2021|
|Last Review Mission||-|
|Last PDS Update||11 Dec 2018|
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|Title||Document Type||Document Date|
|Almaty-Bishkek Economic Corridor: Modern Agriculture Wholesale Market Development Project: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Nov 2018|
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Evaluation Documents See also: Independent Evaluation
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