Objectives

The primary objective of the project was to transform the sheep industry into an efficient and sustainable market-based production system by:

  • increasing the profitability of sheep and wool farming,
  • privatizing the provision of several services to farmers, and
  • improving the management and conservation of natural grazing resources.

Activities

The project was intended to:

  • Support selected breeding-research activities and establish technical and management advisory services to train private farmers in improved sheep husbandry, rangeland management and marketing in order to increase sheep productivity.
  • Organize sheep farmers into about 150-200 village-level sheep producers' associations (SPAs) through which essential services can be channelled.
  • Develop a competitive marketing structure, with incentives for the production of quality wool.
  • Promote veterinary privatization and brucellosis control and strengthen the diagnostic and quarantine capabilities of the Department of Veterinary Services.
  • Develop improved pasture monitoring, evaluation and protection and disseminate sustainable pasture-management techniques among sheep producers to increase fodder quality and availability.


Outcome

The project has supported the development of a veterinary private sector, reducing government animal health expenditure and encouraging increased efficiency. The brucellosis vaccination pilot trial has reduced the number of human cases. The breeding programme has resulted in the development of new genetic stock and new concepts of production, thereby improving stock quality. A quality-control system has been introduced, increasing farmgate prices.

The project has also stimulated the development of farmer groups and associations, promoting improved organization, cooperation and efficiency. Farmers have been encouraged to diversify their activities by producing felt, cashmere and meat, in addition to wool, which allows them to obtain higher returns and broaden their market opportunities.

Organizations and people

The Government of Kyrgyzstan has already begun countrywide privatization. In this context, the project aims at the establishment of sound institutional capabilities to provide support services to producers and to advise private farmers in improved sheep husbandry, breeding, disease control, rangeland management, fodder use and sheep-product marketing.

Planned

Achieved

To provide support and technical assistance in the establishment of about 150-200 SPAs at the village level. Each SPA would have 30-50 members (50-100 households) and would raise approximately 10 000 sheep. SPAs would affiliate into regional sheep breeders' associations at the regional level and the Kyrgyz Sheep Breeders Association (KSBA) at the national level. KSBA would develop necessary technical and commercial services and promote the establishment of new groups and associations, as well as own and operate the Wool Marketing Centre.

To establish Agricultural Training and Advisory Services and to provide transport facilities and office, video and extension equipment, including graders and shearing tools. The project was to support study tours and the training of private farmers, KSBA members, trainers, extension agents and young lecturers at agricultural institutes, as well as providing short-term consultancy services for the training of local staff in shearing and grading.

To recruit staff for the regional sheep breeders' associations, expatriate extension specialists, 40 extension agents, subject matter specialists and senior professional staff for the Department of Livestock Management and Development, as well as one woman advisor per district to provide women with appropriate training in role awareness, management and technical skills.

To establish a pilot revolving fund scheme which would experiment with group lending through the producers' associations within a framework of supervised credit so as to enable farmers to purchase breeding stock, veterinary drugs and fodder-production inputs. Sub-loans would be made in kind, and collateral would be required.

 

A total of 105 sheep-producer organizations registered as cooperatives had been created by 2000. KSBA was registered as an independent cooperative under the new cooperative laws in February 2001. By 2000, KSBA had successfully carried out a pilot activity in the purchase and sale of wool. This pilot scheme introduced innovations in wool procurement, such as dual payment and quality testing. In addition, 165 sheep were purchased, contract slaughtered and sold to retail butchers. However, the benefits of this activity were insufficient to cover initial costs. By 2001, KSBA had introduced a system of quality-based payment for wool and begun to explore alternative marketing opportunities. It is attempting to strengthen the 115 SPAs (representing 1 250 members with approximately 125 000 sheep) through the provision of training, services and inputs.

KSBA has also organized and participated in farm shows and animal auctions.

Although livestock extension was delayed, a total of 16 sheep and wool advisors had been appointed by early 1999. SPA group leaders received technical training in wool handling under the project. However, it was noted that they lacked training in financial management and taxation.

No information is yet available on recruitment activities.

No information is yet available on the operation of the pilot revolving fund scheme.

Risk management

Wool marketing was hampered by the absence of adequate regulations based on international standards, by the lack of an effective greasy wool marketing infrastructure to carry out wool testing, wool selling and information and communication tasks, and by an ongoing bias against research into the problems and opportunities of wool marketing and processing. In addition, the classification and preparation of wool for sale, handling and storage suffered from poor quality control; the local processing industry was inefficient, and the main profit variables at the farm level were poorly understood.

Other deficiencies included government ownership of production and processing facilities, which reduced the need for marketing facilities and support services, and the centralized concentration of wool research in Russia. Kyrgyz wool processors were dependent on traditional markets in the former Soviet Union, where the absence of price premiums for high-quality wool failed to provide incentives for the full exploitation of the economic benefits associated with high-quality-wool production.

Planned

Achieved

To support laboratory wool testing and upgrade wool-testing facilities at the Livestock Research Institute and the Academy of Sciences.

To rehabilitate about 12 000 m2 of regional wool stores, as well as the management offices, stores and auction floors of the Wool Marketing Centre. The project was also to provide funds for the purchase of equipment and training sessions for Wool Marketing Centre technical personnel.

 

Progress in wool testing has been very slow. By March 2001, the procurement of necessary goods and equipment had not yet been initiated.

No information is currently available on wool-marketing rehabilitation activities.

Range management

The pasture area of approximately 8.8 million hectares is supplemented by forage areas of some 600 000 hectares. Past policy focused on increasing livestock numbers and has resulted in overgrazing and considerable resource degradation. The degradation of winter pastures, combined with a continued reliance on wool production from wethers (male castrates) kept over the winter, has necessitated high-cost supplemental feeding for four to five months of the year. In 1987, the amount of grains used for animal feed was approximately twice that used for human consumption. This situation was unsustainable and, with the disappearance of feed imports, producers reduced flock sizes considerably. Flock stabilization is hampered by the absence of clearly defined and accepted property and grazing rights supported by an efficient monitoring system that takes into consideration land-use capabilities. Reforms are necessary to improve incentive structures and correct the distorted input-output price ratio.

Planned

Achieved

To implement on-farm research and extension activities on the effects and economics of improved rangeland management, including various controlled grazing systems and pasture-rehabilitation methods.

To establish a pasture inventory and monitoring system.

To support Agricultural Training and Advisory Services in the provision of technical advice to farmers on optimal stocking rates for sustainable grazing, on improved pasture management and on the strategic feeding of conserved fodder. The project was to finance office and specialized equipment, vehicles, training, short-term technical assistance (18 man-months) in rangeland ecology, the recruitment of local staff and incremental operating costs.

 

By 2000, research in pasture production and conservation had demonstrated the long-term beneficial effects of protecting spring pasture.

The monitoring of natural pastures is being undertaken by the Land Survey Institute. By 2000, some monitoring had been carried out, and vegetation maps had been developed based on botanical composition, cover and other parameters. The Land Survey Institute also initiated three pilot studies in community land management in order to assess the concepts of pasture allocation and conflict management in the field.

No information is yet available on the range of management activities of Agricultural Training and Advisory Services.

Herd improvement

Livestock production contributes 64% of the gross value of agricultural output. The total sheep population was estimated at 10.5 million in 1990, but had declined to 8.8 million by 1993 and is expected to have declined to about 5-6 million by the end of 1995. This is mainly due to high death rates, low lambing rates and high off-take rates. The virtual collapse of the wool-marketing system and the strong demand for mutton have forced many private farmers to use meat-breed rams, undermining several years of selection for wool breeds.

Planned

Achieved

To import 300 high-quality rams in order to upgrade national genetic stock and to strengthen and upgrade breeding facilities on selected farms. The project was also to provide laboratory and office equipment, transport facilities, staff training in modern selection methods and post-graduate overseas training for nine Agriculture Institute students and other technical personnel.

To provide a short-term expatriate consultancy on animal genetics, breeding, reproduction, nutrition and feed analysis.

 

Imported Merino rams and ewes from Australia were successfully cross-bred with the Kyrgyz Fine Wool sheep. By May 2001, there were approximately 1 250 pure-bred Australian Merinos (605 of the original imports and 650 offspring) and about 40 000 offspring of the imported stock bred with local Merinos. About 58 000 Merino sheep were bred by artificial insemination. The benefits are increasingly appreciated by farmers, who demonstrate a willingness to exchange two sheep with "old genetics" for one with "new genetics".

A consultant was hired to develop a breeding strategy, but this was criticized for being overly biased towards wool production and failing to take into account the need for diversification.

Animal health

Diseases such as brucellosis, coupled with internal and external parasites, have been a major source of sheep loss in Kyrgyzstan. Despite the Government's efforts to eradicate these diseases, the delivery of animal-health services has been limited by the lack of resources and staff.

Planned

Achieved

To support the Government's attempt to privatize clinical veterinary services by providing training and financing the participation of private veterinarians in the brucellosis control programme.

To provide funds for the planning of the brucellosis control programme and for the procurement of vaccines and equipment.

To support the dissemination of information on diseases, the testing of new vaccines at the Veterinary Research Institute, training and monitoring. The project would provide study tours and post-graduate training for animal-health specialists in relevant fields.

To strengthen the diagnostic and quarantine capabilities of the Department of Veterinary Services by upgrading diagnostic laboratories and epidemiology units.

 

A small number of private veterinary practitioners have emerged and have been contracted by the Government to carry out national disease control. However, bureaucratic rules and regulations relating to licensing procedures and excessive registration fees present an obstacle to the establishment of a private veterinary-services industry.

Private veterinarians carried out a successful pilot vaccination campaign in one district. A total of 39 000 animals were vaccinated, and a technical and financial quality-control system was established. The vaccination campaign also reduced the number of human brucellosis cases from 39 to 19.

No information is yet available on the other animal-health activities.

Lessons learned

  • The creation of a private veterinary sector depends on governmental action to facilitate processes such as licensing and reduce registration fees.
  • Flexible export and pricing policies for wool should be developed in order to encourage foreign investors.
  • The formulation of appropriate by-laws and a clear definition of objectives are necessary to maximize the capacity of farmer groups and associations.
  • Training in animal production should be complemented by training in finance, management and marketing that is aimed at empowering the individual rural farmer and farmer groups.
  • In order to promote the continuation of project activities after the cessation of funding, it is necessary to endorse the transfer of implementation to local agencies and decrease dependence on consultants. Consultants should be used to provide training, expertise and guidance to project staff.

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