Uzbekistan’s goal is to boost both the amount of food it produces and exports that has a better value added to it. Given the current capacity shortages, the food processing industry in the country has a significant amount of room for expansion. Only 15 percent of the 20 million tons of fruits and vegetables that are grown each year are processed so that they have a longer shelf life, while the remaining 30 percent are lost owing to insufficient storage and processing capacity. Meat and milk are only processed to the extent of 16% each. On June 4, 2021, the government gave its approval to a list of 676 different kinds of technological equipment (including several different brands of equipment used for food processing) that will be free from paying customs duty and VAT when they are imported into the country. Only 4.5 percent of Uzbekistan’s harvest can be stored in the country’s already existing 1,500 refrigerated warehouses, but the government has plans to increase the capacity of its cold-storage chain by the year 2025. To accommodate an additional 30 percent of the crop, the current plan for development aims for the addition of 3.4 million tons of processing capacity by the year 2030. The order issued by the President on September 9, 2020 instructed the Ministry of Agriculture to establish a Main Directorate for the growth of the food processing industry. It is tasked with developing a strategy for the development of the food processing industry, creating conditions for productive collaboration between producers of agricultural products and food processing companies, facilitating the construction of necessary trade and logistics centers, and promoting the export of food products. The job of luring funds from international financial institutions has been given to the Minister of Investments and Foreign Trade.
The production of juice, fruit, vegetables, meat, and milk all present excellent chances for the delivery of processing and packaging equipment. These industries offer the most promising business prospects. The development of the private sector in these areas is actively encouraged by the government of Uzbekistan. Cardboard, paper, aluminum foil, and stretch films are the types of materials that are in highest demand as packaging supplies. There is a significant need for equipment on a smaller scale among small firms.
Companies interested in specific prospects should get in touch with enterprises that are already active in the food processing sector in Uzbekistan. Nestle, Coca-Cola, and PepsiCo are examples of some of the larger corporations that are active in the food processing industry in Uzbekistan at the present time. Local businesses seek to collaborate with their international counterparts and place a high value on foreign management, technology, technical expertise, and access to export markets.
Reference: “Uzbekistan – Food Processing.” International Trade Administration | Trade.Gov, https://www.trade.gov/country-commercial-guides/uzbekistan-food-processing. Accessed 8 June 2022.
Image Courtesy: https://blogs.worldbank.org/europeandcentralasia/how-create-more-jobs-and-reduce-poverty-uzbekistan-focus-agri-food-sector
