Kyrgyzstan|business|February 23, 2019 / 03:55 PM
World Bank recommends more proactive approach to Kyrgyz government to address market failures in food value chain

AKIPRESS.COM - Realizing the potential of high-value agri-food exports is the cornerstone of the new government’s policy objectives for agriculture development, the World Bank said in the country’s economic update “Weak Growth Despite Emerging Regional Opportunities”.

The new government has declared that its priorities for agriculture sector development will be promoting high-value agri-food production and organic agriculture, improving the quality and safety of agri-food and orienting assistance to producers of those groups of agricultural products (such as selected fruits and vegetables, legumes, dried fruits) that have potential to generate high value-added in export markets.

To realize the government’s objectives, the World Bank has recommended the following three-track:

1) expanding markets for agri-food products and improving competitiveness;

2) linking small enterprises and farmers to market, and promoting value addition;

3) creating an enabling business environment for agri-food production.

This approach would require more proactive government policies that would address constraints faced not only by farmers but also by agri-food processors and exporters. In other words, addressing market failures along the entire food value chain. Doing so would help overcome the fragmented and small-scale structure of farms and agricultural firms, bringing the Kyrgyz agri-food sector to a new level of development, the World Bank stated.

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