Tajikistan – Productive Agriculture Project (PRO-APT)

Working to Develop the Agricultural Sector to Benefit Smallholder Farmers

ACDI/VOCA and IFDC are implementing the USAID-funded Productive Agriculture Project in Tajikistan. The project is helping farms transition to commercial production and participate in profitable value chains. Taking a value chain approach, the project is leveraging private sector incentives and relationships between input dealers, processors and trade associations to strengthen market linkages and improve the delivery of vital services at the farm level, including technical assistance and finance. Farmers are then making investments in technologies which allow them to increase productivity and improve quality of production to reach markets that offer higher prices and in turn improve farm incomes.

Facilitating Investments at the Farm Level

The project addresses supply and demand constraints within the agricultural inputs industry to bolster growth and competiveness. PRO-APT is linking input dealers and lead farms to launch demonstration plots at the demand-level, conveying the potential yields and returns resulting from best agricultural practices. To help overcome the risk involved in adopting new technologies, vouchers cover the difference in cost between the new technology and current practices.

The project is strengthening the distribution network of agro-input businesses by supporting linkages between retailers, wholesalers, importers and international input dealers through trade fairs and study tours. It also supports the agro-input sector to market “technology packages” of high-quality, certified inputs with embedded technical assistance.

At the finance level, the project is facilitating mechanisms that improve the cash flow of farms to finance investments required for commercial production. It is also providing training to financial institutions and input dealers on agricultural cash flow analysis and assistance on loan product piloting and development.

Value Chain Linkages Yield Success

PRO-APT is improving value chain linkages to help farms investing in commercial production to secure access to premium domestic and international markets.

Lead firms have been engaged in the dried apricot sector to establish Tajikistan Foods Association, the first industry export association of its kind, that stands to become a major driver of value chain competitiveness. The association seeks to implement quality controls and improve the Tajikistan brand, solidify linkages with export markets (primarily in Russia through the migrant community) and promote industry policy interests.

Wholesalers and exporters have been brought to the farm gate to buy onions during seasonal windows when there are premium prices. This is creating long-term commercial relationships and allowing Tajikistan farms to expand onion sales to Russian markets.

PRO-APT has initiated important steps to building trust and relationships between tomato processors and farms. For the first time, processors are considering more formalized contract purchases from farmers to improve supply that is vital for their own profitability.

The project is supporting the establishment of a joint-stock company comprised of a lead exporter and supply farmers who raised the capital needed to invest in cold storage facilities and stock fresh apricots for export to Russia. Farm investors benefit from a secured market to sell their product and future dividend payments from the company.

For more information, contact Dun Grover at dgrover@acdivoca.org.

Updated: 1/12

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