New investment by Uzbekistan and IFAD to strengthen family farmers and dairy sector

Washington/Tashkent, 28 April 2025 – The International Fund for Agricultural Development (IFAD) and the Government of Uzbekistan recently launched in Washington a new investment worth US$47.4 million that will target vulnerable dairy farmers. The Dairy Value Chain Development Project – Phase II (DVCDP II) will increase dairy farmers’ earning potential and contribute to better food security and nutrition in five regions of Uzbekistan.

DVCDP II will continue investing in the Jizzakh and Kashkadarya regions, while also expanding into Sirdarya, Samarkand and Surkhandarya. The project is designed to improve rural livelihoods by strengthening the dairy value chain, boosting productivity, and supporting sustainable development among dairy smallholder producers. It aims to reach around 31,000 households. Around 40 per cent of project participants will be women, and 30 per cent will be youth. The project will focus on household farmers, dehkan (smallholder) farmers, and vulnerable groups within the dairy value chain including people with disabilities and returning migrants.

“By helping connect Uzbekistan’s most vulnerable dairy farmers to resources and markets, this agreement underscores our vision of a more inclusive, productive, and resilient rural economy,” said IFAD President Alvaro Lario.

“We deeply value our partnership with the Government of Uzbekistan. This project will further improve the lives of small-scale producers, foster economic growth and drive competitiveness of the value chain across the whole region."

The new project marks a significant step forward in the collaboration established between IFAD and Uzbekistan since 2011, when the country joined IFAD. DVCDP II will build on the success of the first phase of the project, which ran from 2017 to 2023, supporting 117,367 Uzbek households with total financing of US$50 million.

IFAD’s investments in the horticulture and dairy sectors of Uzbekistan have attracted significant interest from private sector and development partners eager to transform agricultural markets. These investments have also supported vulnerable farmers with adapting to challenging climatic conditions.

In response to ongoing global challenges—including conflict, water scarcity, and inflation—IFAD remains committed to empowering rural populations. Over the past decade, IFAD’s investment in Uzbekistan has grown into the largest country portfolio in Central Asia, with a total of US$480.36 million, reaching over 550,800 rural households.

This latest investment is part of IFAD’s ongoing Country Strategic Opportunities Programme for Uzbekistan (2023–2027), which reinforces the Fund’s work to supporting small-scale producers and advancing agricultural diversification across the country.

For more information on IFAD’s work in Uzbekistan.

Household farmers are individuals who utilize plots of land within their properties for farming purposes. In contrast, smallholder farmers are those who have access to up to 5 hectares of land for agricultural activities.

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Press Release No.: IFAD/27/2025

IFAD is an international financial institution and a United Nations specialized agency. Based in Rome – the United Nations food and agriculture hub – IFAD invests in rural people, empowering them to reduce poverty, increase food security, improve nutrition and strengthen resilience. Since 1978, we have provided more than US$25 billion in grants and low-interest loans to fund projects in developing countries

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