Uzbekistan : Climate Resilient Livestock Development Project

Project Name

Climate Resilient Livestock Development Project

Project Number

57079-002

Country / Economy

• Uzbekistan

Project Status

Proposed

Project Type / Modality of Assistance

• Loan

Source of Funding / Amount

Loan: Climate Resilient Livestock Development Project

Source	Amount
Concessional ordinary capital resources lending	US$ 120.00 million

Operational Priorities

• OP2: Accelerating progress in gender equality
• OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
• OP5: Promoting rural development and food security

Sector / Subsector

• Agriculture, natural resources and rural development / Livestock

Gender

Effective gender mainstreaming

Description

The project is aligned with ADB's Country Partnership Strategy for Uzbekistan (2019-2023): (i) supporting private sector development; and (ii) reducing economic and social disparities by promoting rural development.

The project will help the Government of Uzbekistan (GOU) to achieve its climate actions set in its Updated Nationally Determined Contribution report, including (i) reducing GHG emission intensity by 35% below the 2010 level in 2030; (ii) improving water management system; (ii) expanding forest areas; (iii) restoring degraded pastures and introduce sustainable pasture management mechanisms.

Project Rationale and Linkage to Country/Regional Strategy

Livestock plays a critical role in Uzbekistan's national food security and rural livelihood, making it a strategically important sector for the government. The sector provides 90% of domestic animal-protein consumption and employs 27% of the agricultural workforce. Livestock accounts for 45% to 67% of farming households' income.

Small-scale farms (dekhans) account for an overwhelming share of livestock production.a Dekhans are responsible for 94% of the country's beef cattle, 95% of dairy cattle, and 83% of goat and sheep. Cattle farming is prominent in the Samarkand and Qashqadaryo Regions, while Navoi Region and Republic of Karakalpakstan have a strong tradition of sheep and goat farming.

Dekhan livestock production is characterized by low productivity with a strong emphasis on beef production. The live weight of dekhans' beef cattle at slaughter averages 350 kilogram (kg), significantly below the achievable average of 560 kg in local intensive farms. Similarly, the average yield of dairy cattle is 2,600 liters per year, far below the potential of 6,100 liters in local intensive farms.c The low productivity is mainly due to feed constraints, which are expected to worsening climate change impacts such as water shortage, shrinking pastures and crop land due to desertification and salinity. Increase in temperature and pathogen prevalence can further deteriorate livestock health and productivity.

Consequent to the low livestock productivity, Uzbekistan resorts to importing 26,900 tons of beef and 22,300 tons of dairy products in 2022.d With rising income and a population that grows at 2% per year, the demand for animal protein is expected to increase significantly, which will worsen Uzbekistan's food security.

The Uzbek livestock sector is also characterized by high carbon intensity, which is defined as the amount of greenhouse gas (GHG) emissions per unit of output. The sector's share of GHG emission is disproportionately higher than its contribution to gross domestic product (GDP). In 2021, livestock accounted for 50% of agricultural GDP but 67% of agricultural GHG emission. Across all economic sectors, livestock accounted for 13% of the national GDP but 18% of the country's total emission. The sector's carbon intensity can be reduced by either increasing livestock productivity, or by reducing GHG emission through technologies and improved practices, including the use of better-quality feed, feeding management, selection of breeds that produce less GHG emission, and carbon sequestration in pastures.

Impact

Stable provision of livestock products and food security improved (Program for the Development of the Livestock Sector for 20222026).

Carbon intensity of livestock sector reduced (Updated Nationally Determined Contribution Report).

Outcome

livestock productivity and climate resiliency enhanced.

Outputs

Regenerative pasture and supplementary feed base made climate resilient.

climate-smart husbandry and veterinary services strengthened.

finance to livestock sector extended and climate-sensitized.

Geographical Location

Nation-wide

Safeguard Categories

Environment

B

Involuntary Resettlement

B

Indigenous Peoples

C

Summary of Environmental and Social Aspects

Environmental Aspects

Involuntary Resettlement

Indigenous Peoples

Stakeholder Communication, Participation, and Consultation

During Project Design

During Project Implementation

Business Opportunities

Procurement

The executing agency will be the Ministry of Agriculture (MOA), and the implementing agency is CVLD. Both agencies have experienced in implementing ADB projects. No complex contract is envisioned. TRTA will support advance contracting actions.

Contact

Responsible ADB Officer

Leung, Leonard H.

Responsible ADB Department

Sectors Group

Responsible ADB Division

Agriculture, Food, Nature, and Rural Development Sector Office (SG-AFNR)

Executing Agencies

Ministry of Agriculture of the Republic of Uzbekistan

Timetable

Concept Clearance

22 Nov 2023

Fact Finding

31 Jul 2024 to 09 Aug 2024

MRM

-

Approval

-

Last Review Mission

-

Last PDS Update

22 Nov 2023

Funding