The European Union, represented by the European Commission, and the Central Finance and Contracting Agency of the Republic of Latvia (CFCA) have signed a Contribution Agreement entitled “Strengthening the Economic Capacity and Efficiency of Small and Medium-Sized Farmers in Uzbekistan”. This strategic action aims to foster a sustainable, market-oriented, and inclusive agri-food system in Uzbekistan, leveraging opportunities created under the newly adopted Law on Agricultural Cooperatives.
The initiative will empower smallholder and dehkan farmers—who produce over 70% of Uzbekistan’s agricultural output—to engage more effectively in competitive and inclusive value chains. Through an integrated, participatory approach, the Action will build farmers’ capacity to form and manage cooperatives, supported by technical assistance, mentoring, and seed funding. Training programs and toolkits will strengthen governance, financial literacy, and sustainable farming practices, while peer learning and experience exchanges will promote best practices. Evidence-based policy engagement will ensure alignment with Uzbekistan’s new Law on Agricultural Cooperatives, creating a scalable model for systemic transformation.
Despite progress in the agri-food sector, Uzbekistan’s smallholders face challenges including fragmented land holdings, low productivity, and limited access to finance and advisory services. To address these issues, the Action combines local ownership with EU expertise in cooperative development.
The initiative will run for 36 months with a budget exceeding €2.6 million.
Key Components:
- Initial Assessment: Field studies and viability analyses to identify opportunities and constraints.
- Cooperative Formation: Capacity-building for farmer groups to establish and manage agricultural cooperatives, supported by technical assistance and seed funding.
- Policy Uptake: Evidence-based recommendations to inform national policy and support the implementation of Uzbekistan’s 2025 Law on Agricultural Cooperatives.
Training curricula will be co-developed with stakeholders to reflect local realities, and mentoring will be provided by EU and local experts. Lessons learned and success stories will be disseminated to ensure practical insights feed into ongoing policy dialogue.
Expected Impact:
By demonstrating the feasibility and benefits of cooperative development under the new legal framework, this Action will reduce fragmentation, increase competitiveness, and contribute to building an inclusive, sustainable, and resilient agricultural economy in Uzbekistan.