Uzbekistan : Precision Agriculture for Resilient Commercial Horticulture Sector Project

Project Name

Precision Agriculture for Resilient Commercial Horticulture Sector Project

Project Number

58181-001

Country / Economy

• Uzbekistan

Project Status

Proposed

Project Type / Modality of Assistance

• Grant

Source of Funding / Amount

Operational Priorities

• OP1: Addressing remaining poverty and reducing inequalities
• 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 / Agricultural production - Agro-industry, marketing, and trade

Gender

Effective gender mainstreaming

Description

The Precision Agriculture for Resilient Commercial Horticulture Sector Project will promote horticulture commercialization by (i) catalyzing the formation of producer groups and (ii) strengthening vertical market linkages between producer groups and downstream agribusiness. The project location is in Bakhmal district in the Jizzakh region, directly benefiting at least 170 small-scale farmers while indirectly supporting at least 85 agricultural workers and their families. The beneficiary small-scale farmers will collaborate in producer groups to produce consistent and high-quality produce, and the beneficiary agribusinesses will source raw produce from these producer groups. The project will provide digital and climate-smart equipment for horticultural production, post-harvest handling, and processing. In addition to supporting horticulture commercialization, the project will also promote adaptation of new technologies to improve water- and energy-efficiency and climate resilience.

Project Rationale and Linkage to Country/Regional Strategy

Climate vulnerability of agriculture. Agriculture in Uzbekistan faces significant vulnerability to climate change. Rising temperatures lead to increased evapotranspiration rates and greater water demand for crops. Land degradation and desertification are eroding arable land and soil fertility. Reduced snowmelt and rainfall exacerbate water scarcity. Over the past 15 years, per capita yearly water availability has declined from 3,048 m3 to 1,589 m3. By 2030, water scarcity is projected to increase from 2 billion m3 to 7 billion m3, and further to 13 billion m3 by 2050. These combined forces pose a serious threat to agricultural production and food security in Uzbekistan. Urgent adoption of new technologies is essential to enhance the resilience of the country's food system.

Small-scale farms in Uzbek agriculture. About 4.7 million rural households operate small-scale farms. The small-scale farmers (dehkans) have landholdings between 1 to 5 hectares (ha) in size, operate independently of government support, and account for the production of 66% of vegetables and 54% of fruits. Dehkans possess about 12% of total agricultural land out of 4.5 million ha. While the Asian Development Bank (ADB) has been supporting horticulture in Uzbekistan, further support is needed to promote horticulture commercialization. The project's objective is to address the following constraints:

Weak dehkans cooperation and value chain linkages. Traditionally, dehkans were given land plots to produce food for their own consumption. They are not accustomed to making joint investment and operations decisions. However, commercial horticulture calls for a high level of cooperation to create economies of scale, for example, in cultivating produce of uniform quality, buying inputs or selling output in bulk, sharing market information, disseminating knowledge and best practices. In addition, since dehkans have small volumes of produce, individual linkage with downstream agribusiness is weak.

Unfavorable government policies for promoting market linkages. Existing government policies do not foster farm-to-farm cooperation or farm-to-business linkages. Government initiatives aimed at promoting agricultural clusters have primarily focused on the cotton and wheat subsectors, yielding mixed outcomes. In contrast, horticulture producers lack organized clusters. The issue of insecure land tenure exacerbates the problem, leading to landholding fragmentation and discouraging horticulture producers from investing time and resources in long-term partnerships. Additionally, government support in horticulture tends to prioritize enhancing productivity at the individual farm level, rather than emphasizing horizontal (dehkan-dehkan) or vertical (dehkan-agribusiness) market linkages to maximize overall synergy.

Limited value-addition. A lack of consistent, high-quality produce at the on-farm level discourages downstream agribusiness from investing in processing facilities. These facilities play a crucial role in preserving quality and adding value to agricultural produce. As a result, the bulk of agribusiness trade consists of fresh produce or involves only basic processing. The inherent perishability of these goods limits their reach to distant markets. Deep-processing methods that transform raw produce into more stable forms, such as frozen or canned vegetables, fruit juice, or dried fruit, remain underutilized.

Impact

Food security enhanced and favorable agribusiness environment fostered

Outcome

Agricultural productivity, resilient livelihoods and market linkages of small-scale horticultural producers with downstream agribusiness improved.

Outputs

Digital agriculture and precision farming piloted.

Horticultural value chain and processing capacity strengthened.

Producer group and agribusiness operations supported.

Geographical Location

Jizzakh

Safeguard Categories

Environment

B

Involuntary Resettlement

C

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

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

14 Jun 2024

Fact Finding

02 Jul 2024 to 04 Jul 2024

MRM

-

Approval

-

Last Review Mission

-

Last PDS Update

11 Jul 2024

Funding