The dairy industry plays an important role in the Kyrgyz Republic’s agricultural economy, which means improving and increasing milk production is essential for sustaining growth in the sector.

In February 2022, the USAID Kyrgyz Republic Agro Trade Activity, which is implemented by Chemonics International in partnership with ACDI/VOCA and other partners, teamed up with Alaiku Organics, LLC, a Kyrgyz-based company. Together, they launched a two-year project with the aim of increasing milk production capacity, expanding the milk supply network to farmers, and growing sales.

Operating in the Kyrgyz market since 2015, Alaiku Organics produces more than 50 varieties of organic dairy products, national beverages, and snacks. As part of the two-year project, USAID supported the company with six chilling tanks, which currently operate at milk collection points in the Aravan, Nookat, and Kara-Suu districts of Osh Oblast.

Prior to USAID support, the company had worked with approximately 600 dairy farmers and practiced a complicated milk collection method. A milk-collecting vehicle visited farmers one by one to buy milk, while the farmers cooled milk by placing a frozen bottle in the milk to keep it from souring, which required additional resources and a lot of time.

Establishing milk collection points in farmers’ neighborhoods simplified the milk collection process and had a positive impact on the milk quality, as milk could then be tested on the spot before mixing it with other milk. The company also trained farmers and milk suppliers on milk collection technology, animal husbandry, sanitation and hygiene, milk quality improvement, and other relevant topics.

Farmers bring milk to a chilling tank in the Aravan district. Photo by Danil Usmanov

“Installing chilling tanks in districts has made our job easier; it has boosted the milk quality, expanded market access, and facilitated the availability of finance for small farmers.”

Askar Mametzhanov, General Director of Alaiku Organics

To date, the company collaborates with 1,000 farmers. By cutting costs, the company was able to offer farmers a better price — 65 percent higher than last year — which increased farmers’ incomes.

Alaiku Organics also increased sales of dairy products in domestic and international markets. Exporting products to the Russian Federation and Uzbekistan helped the company to double its revenues.

ACDI/VOCA supports the USAID Kyrgyz Republic Agro Trade Activity by working to add economic value through more inclusive jobs and sales, particularly among women, for Kyrgyz agribusinesses and farmers. We also strive to increase cross-border and regional trade links between the Kyrgyz Republic and the Ferghana Valley and improve the enabling environment for increased Kyrgyz Republic-Uzbekistan market integration.

Learn more about the USAID Kyrgyz Republic Agro Trade Activity.

Learn more about our work in the Kyrgyz Republic.