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Malaysian Meraque Group to Invest in Uzbekistan’s Agriculture Sector

The Ministry of Agriculture of Uzbekistan has reported that a memorandum of understanding on agricultural technologies was signed between the leading Malaysian DroneTech company Meraque Group and the Ministry of Agriculture of Uzbekistan. This cooperation aims to improve the Uzbek agriculture sector, which includes 4.3 million hectares of cultivated land. Meraque intends to invest 20 million Malaysian ringgits ($4.78 million) in the next three years to establish a production enterprise that will create 1,000 jobs and serve 100,000 hectares of agriculture in Uzbekistan. The company is also looking to raise an additional 30 million ringgit ($7.17 million) for technological improvements in the region. The report reads: “A key part of the partnership will be policy development to create an ecosystem of drones for agriculture that will improve productivity and sustainability for the country’s 100,000 farmers. Meraque also focuses on training and knowledge sharing through training programs to support drone operations.” Razali Ismail, CEO of Meraque, said that this cooperation will sustain the development of the two countries' agriculture. The Times of Central Asia previously reported that in April of this year, the European Union presented €6 million ($6.4 million) to the Uzbek government to support the country’s National Food Security and Healthy Nutrition Strategy. In addition to the grant, the EU has also provided funds to help the Ministry of Agriculture carry out reforms. Further funding of €20 million ($21.4 million) will be issued later this year and next to support Uzbekistan’s National Agriculture Development Strategy for 2020-2030. Also, 3 million hectares of pastoral and agricultural lands have been degraded in Uzbekistan, and almost 2 million hectares have become saline. According to experts, by 2030, water resources in the region are in danger of decreasing by nearly 6% due to climate change. In response, Uzbekistan has developed a national program for adapting agriculture to climate change and mitigating its effects, which allocates more than $294 million in grants.

Kazakhstan Now Home to 99% of the World’s Saiga Population

The Minister of Ecology and Natural Resources of Kazakhstan, Yerlan Nysanbayev, has announced that the number of saigas in Kazakhstan has risen to around 4.1 million, equivalent to 99% of the global population. Just over half of the population - 2.8 million- resides in West Kazakhstan Oblast and the overall figure takes into account those born during May's birthing season. The presence of such large numbers of this type of antelope has not however, always been welcomed. As referenced by Nyanbayev, to lessen their damage to agriculture, Kazakhstan had previously taken measures to regulate the population. As recently as 2023, 42,000 saigas were seized, with their meat sold through processing plants in four regions. Under instruction of the Head of State, the practice has been stopped and commending the move, Nysanbayev reported, “No other state today has such a population. This is thanks to the efforts that the state: Money was spent, specialized enterprises were organized, and many legislative measures were taken." Saigas are one of the oldest breeds on the planet, dating back 250,000 years. Capable of reaching speeds of up to 80 kilometers per hour, and with unique nasal filters to help clean the air of dust and keep cool in the heat, the saiga migrate great distances, traveling up to 1,000 kilometers in search of food. A ban on shooting and hunting saigas in Kazakhstan was introduced in 1999. This decision was part of a conservation effort to protect the animals, whose population had been significantly reduced by poachers intent on seizing their horns, highly valued in traditional medicine. In December 2023, the International Union for Conservation of Nature (IUCN) updated the status of the Saiga from Critically Endangered to Near Threatened, but estimated the global population at 1.9 million, up from a low of 39,000 as recently as 2005. An April 2024 survey conducted by the Altyn Dala Conservation Initiative, however, recorded a population of 2,833,600 in Kazakhstan prior to the birthing season. The figure 4.1 million, therefore, falls within the range of the recent average increase in numbers of 48%. Saiga Antelopes – which migrate in excess of 1,000 kilometers between their summer and winter ranges because of “extreme variations” in climate - remain acutely susceptible to sudden mass deaths from pasteurellosis, an acute bacterial disease which killed up to 200,000 of the species in a three-week period in Kazakhstan in 2015.

Kazakhstan Makes Strides in Agricultural Machinery Production

China’s Zoomlion Agriculture Machinery Co., Ltd., a leader in agricultural machinery production, is manufacturing tractors in Kazakhstan in cooperation with a local company, QazTehna. The plan is to produce up to 700 tractors per year at a plant in Saran in the Karaganda region, the Kazakh Ministry of Industry and Construction announced. Kazakhstan is one of the world's largest producers of grain crops, with a total sown area of more than 24 million hectares. The country needs sufficient agricultural machinery to ensure agricultural production in such a vast area. The renewal of outdated agricultural machinery remains a pressing challenge for Kazakhstan’s agro-industrial sector. According to the Ministry of Agriculture, there are 149,800 tractors in the country today, but the average wear of the machines is very high. According to the Ministry of Industry, the production capacity of Kazakhstan’s manufacturing plants fully meets the domestic demand for tractors and combines, with more than 80% of all tractors and combines purchased in Kazakhstan in recent years being domestic production. Kazakhstan has eight plants manufacturing more than ten brands and 120 models and modifications of tractors of different capacities, from 11 to 575 horsepower.

Rise in Trade Between Kyrgyzstan and Afghanistan

In January-August 2024, trade between Afghanistan and Kyrgyzstan reached $14 million, including $6 million worth of Afghan exports to Kyrgyzstan. According to a TOLOnews report, based on data from the Afghan Ministry of Industry and Commerce, most of Afghanistan's exports to Kyrgyzstan and Uzbekistan consist of mineral water, carpets, non-alcoholic beverages, dried fruits, fruit juices, apricots, and sesame seeds. The report was issued in the wake of an announcement on September 6, in which Kyrgyzstan's Ministry of Foreign Affairs stated, "A decision has been made to remove the Taliban from the list of prohibited organizations within the territory of the Kyrgyz Republic.” The Ministry emphasized that the removal of the Taliban, the unrecognized group that effectively controls Afghanistan, from the list of banned terrorist organizations, aims to enhance regional stability and support ongoing dialogue. Confirmation was also made of Kyrgyzstan's ongoing commitment to supporting the efforts of the international community to ensure a stable and peaceful environment in both Afghanistan and the surrounding region. Reporting on the meeting between Chairman of the Cabinet of Ministers of the Kyrgyz Republic, Akylbek Japarov and the Chargé d'Affaires of Afghanistan in Kyrgyzstan, Nurullah Amin, on September 6, the Kyrgyz government’s press service outlined the parties' discussions on furthering bilateral cooperation between the two countries. On the Kyrgyz side, Japarov expressed interest in developing trade and economic relations, and transport links with Afghanistan, engaging in the joint development of  Afghan mineral deposits, and cooperating in the energy, industry, and agriculture sectors.

Turkmenistan Continues to Hide Forced Labor in Cotton Fields

Although the season has  yet to officially open, cotton harvesting is already underway in Turkmenistan. As reported by Azatlyk correspondents, workers, including budgetary employees in the Lebap province, are being watched by Ministry of National Security (MNS) officers. These officers, tasked with preventing information about forced labor being leaked, have forbidden the use of cell phones in the fields. Turkmenistan has long been criticized for its use of forced labor on cotton plantations, and authorities continue to hide the reality. The increased control by security agencies coincides with a briefing in Ashgabat on measures discussed in collaboration with the International Labor Organization (ILO), to eradicate child and forced labor. Despite official bans, including an order issued by Labor Minister Muhammetseyit Sylabov in July this year prohibiting the employment of children under 18, child labor continues in some regions, including Kerki and Chardjev etraps, and teachers confirm that high school students, with their parents' consent, participate in cotton picking. At the same time, cotton pickers complain about underpayment. Employers also repeatedly renege on promised rates of pay and in Lebap, citing the poor quality of the cotton harvested, are known to withhold up to 50% of their workers' salaries, leading to inevitable conflict. Despite orders issued by the authorities to increase pickers' wages in accordance with the state's  procurement prices for cotton, the workers' situation shows no sign of improving.  

Special Report: Prospects Look Good for Kazakh Wheat Exports

According to the International Grains Council, Kazakhstan's wheat harvest for the 2024/2025 season is expected to reach 16 million tons. As the harvesting campaign begins, the country's lack of elevator capacity and the problem of mainline railroads are concerns. Idle trains are still a problem, which leads to the introduction of regular restrictions and bans on the acceptance and shipment of wheat due to congestion on the railroad. Market participants note that the railroad cannot cope with the volume of shipments during the autumn rush, with its infrastructural ceiling on shipments at only 1 million tons of grain per month. This leads to a collapse at border railroad crossings and, consequently, a price drop in the domestic market. One obvious solution is to expand Kazakhstan's elevator capacity and grain storage facilities; this is one of the reasons for the increased load on the railroad infrastructure. Thus, according to the Ministry of Agriculture, 191 licensed grain-receiving enterprises have a total storage capacity of more than 13.2 million tons. In addition, agricultural producers have storage capacities for 15.8 million tons of grain, which, as the ministry assures, is enough to store grain considering the projected harvest. Also, according to the ministry, the construction of new grain storage facilities and the expansion of existing ones are envisaged. In 2024-2026, it plans to operate five granaries with a capacity of 30,200 tons. The national railway company Kazakhstan Temir Zholy (KTZ) has already established a grain headquarters, involving representatives from local executive bodies, the National Chamber of Entrepreneurs "Atameken," and shippers. This headquarters ensures adequate transportation for the upcoming season's harvest. As Salamat Abzhaliyev, Deputy General Director for Marketing and Planning of KTZ-Gruzovye Transportations LLP, noted during the briefing held at the end of August, for seven months of the current year, the total volume of grain loading on the network of railroads of the country amounted to 4.7 million tons. Only in Kazakhstan did wheat transportation increase by 3%, amounting to 1.1 million tons. An important factor affecting the efficiency of transporting grain and milling products is the availability of specialized wagons. In addition to boxcars, grain carriers are designed to transport these specific cargoes. Today, the total fleet of boxcars and grain cars on the railroad is about 16,000 and 12,000, respectively. According to KTZ, this fleet is sufficient to fulfill all agreed transportation plans. According to forecasts of the International Grain Council, the export of Kazakhstani wheat in the 2024/2025 season is projected at 10 million tons. During the first six months of the year, 2.4 million tons of wheat have already been shipped. The main buyers of domestic grain are traditionally Uzbekistan, China, Tajikistan, Italy, and Afghanistan. Grain exports to China have grown 5.7 times in the last three years, which makes China a key export destination. China is ready to accept large volumes of grain from Kazakhstan. Today, the country buys about 10 million tons of wheat worldwide, including from Kazakhstan. However, further development of trade is constrained by limited transportation...