Kyrgyz agriculture investment forum – 2011

Government of the Kyrgyz Republic

Food and Agriculture Organization of the United Nations	European Bank for Reconstruction and Development

KYRGYZ AGRICULTURE INVESTMENT FORUM - 2011

PROVISIONAL AGENDA

28 September 2011, Day One: “Policy Reforms and Official Aid”

8:00 Registration of participants

9:00 Opening by Chairman: H. E. Torogul Bekov, Minister of Agriculture

9:05 Official Opening Ceremony

H. E. Prime Minister Atambaev

Mr Mustapha M. Sinaceur, FAO Representative for Central Asia

Mr Masaru Honma, Director for Central Asia, EBRD (tbc)

09:30 COFFEE BREAK

10:00 Special Presentation on “ Challenges to Agricultural Growth in Kyrgyzstan” by

Mr. Johan Swinnen, International Agriculture Economist

Panel Discussion: “ Kyrgyz Agriculture: Past, Present and Future”

Panelists:

·  H. E. Torogul BEKOV, Minister of agriculture, Kyrgyzstan

·  H. E. Uchkun TASHBAEV, Minister of economic relations, Kyrgyzstan

·  Mr Charles RIEMENSCHNEIDER, Director of Investment Centre, FAO

·  Mr Mehmet ILKIN, Senior Banker, Agribusiness Team, EBRD

·  Ms. Aziza YULDASHEVA, Chair of National Alliance of Business associations (NABA) and Chair of Agribusiness Association “Jer-Azygy”, Kyrgyzstan

·  Mr Jyrgalbek TOKTOGAZIEV, Chairman of Agro Cooperative “Kum Dobo Birimdik”, Kochkor rayon, Naryn Oblast, Kyrgyzstan

·  Mr Peter GOODMAN, Senior Agricultural Specialist, The World Bank

Moderator: Ms. Sarina ABDYSHEVA, Investment Officer, FAO

11:30 Briefing on Parallel Round Table Discussions start

Timeframe: Parallel Roundtable sessions will take place during 13: 00 AM– 3:00 PM

12:00 LUNCH

13:00 Parallel Round Table Discussions:

1.  Promotion of Agricultural products on different markets: problems and ways to solve

Moderator: H. E. Torogul Bekov, Minister of Agriculture

Co-moderator: Mr. Sergei Ponomarev, Adviser to Prime Minister

As a new member of the WTO, Kyrgyzstan is surrounded by non-members, except for China. The country is to identify ways to harmonize trade regulations and regimes with other countries in order to facilitate import and export of agricultural goods and services. Kyrgyzstan is also member of the CIS Customs Union which imposes new conditions and challenges. The country is a net importer of agricultural products.

Participants and speakers include: Representatives of the Public Private Associations (Food Processing Industry), Chamber of Commerce, Business Trade Association, WTO.

2.  Priority areas for investments in the Kyrgyz agricultural sector

Moderators: Mr. Almazbek Dorombaev, Director of Agribusiness Competitiveness Centre (ABCC)

Co-moderator: Marlen Tynaliev, Expert of Agribusiness Competitiveness Centre (ABCC)

Aim of this session is to establish contacts with potential stakeholders, investors, partners with the view of future investment opportunities. The Roundtable will create a platform to initiate direct dialogue between relevant stakeholders, including local private agribusiness companies.

Participants and speakers include: “Kyrgyz Agro Marketing” Group, BNC Finance, Dairy Spring JS Company, State Investment Agency, IFC, EBRD.

3.  Rural Finance and Risk Mitigation

Moderator: Mr. Michael Marx, Senior Credit and Rural Finance Officer, FAO

Co-moderator: Ms Baktygul Jeenbaeva, Vice Governor of the Kyrgyz National Bank

Investors in agriculture, both domestic and international, need credit from the financial sector for their investments. While credit extended to the private sector has grown rapidly over the past decade, its overall levels (compared with GDP) are still comparatively low. Judging from the share of agriculture in total loan portfolios, it appears that non-bank finance and credit institutions(NFCIs) have developed much more appropriate tools and techniques to finance agriculture than banks.

Following an overview of risk management approaches applied by banks, MFIs and value chain operators, the round table will discuss current constraints that agribusinesses face when borrowing from financial institutions, and the constraints of financial institutions when lending to the agriculture/agribusiness sector. On this basis, the RT will then attempt to identify bottlenecks and constraints, as well as possible solutions and actions.

Participants and speakers include: Central Bank of Kyrgyzstan, Ayil Bank, ZIRAAT Bank, IFC, FAO, The World Bank, “Bai Tushum Partners”, Companion (Mercy Corp), USAID Microfinance, Swiss Cooperation Agency.

15:00 COFFEE BREAK

15: 30 Moderators provide brief summary of three RTs of Day One

16:00 Interactive Session with Questions and Answers on RTs

Briefing on RTs for the Day Two

Chairman moderates the session and closes the Day One

17:00-18:00 Visiting by participants of the Forum the exposition of Agricultural Products and Equipment on the VII International exhibition and trade fair “AgroExpo” at Sport Palace

19:00 Reception / Official dinner hosted by the Kyrgyz Government

(venue to be announced)

29 September 2011, Day Two: “Private Sector Investment in Agriculture”

8:30 Registration (of round table participants)

9:00 Parallel Roundtable sessions will take place during 9:00 AM – 12:30 PM

4.  Agro - Processing Industry in Kyrgyzstan as one of the priority economic sectors

Moderator: Mr. Sanjar Mukanbetov, Deputy Minister of Economic Regulations (TBC)

Co-moderator: Mr. Mike Berchill, Head of EU-funded project on agro processing

At present time MoER is finalizing the national programme of development of agro processing sector of the Kyrgyz Republic. Programme includes proposals and recommendations of the Working Groups, which consist of the representatives of the private, public and voluntary sectors from main selected subsectors (fruit and vegetables, meat, milk, flour and baker products). Also the result of the work of different international projects, which are working in the sector, were taken into account.. In this programme special attention is paid to the creation of favorable conditions for the development of agro processing in rural area of KR, development of clusters and increasing of supply of domestic finished products to local and regional markets with improvement of its quality from the point of view of food security. In this connection, in the framework of the Round Table it is proposed mainly to discuss project proposals of private and public sectors, which are closely connected with the objectives of above-mentioned national programme of development of agro processing sector. Implementation of these project proposals will solve common problems of subsectors and exert influence on development of the whole sector, but not only separate processing enterprises.

Participants and speakers include: Milk Union (JSC “Wimm-Bill-Dann”), Association of suppliers (including informal Meat Union), Central Asian Breeding Service, processing enterprises, donor projects, public structures and others.

·  "Recommendations for Improved Foreign Investment in the Agribusiness Sector" Special Presentation by International Finance Corporation (IFC)

By Ms. Rachel Freeman, Senior Operations Officer, IFC

5.  Interaction of state authorities and business community in agrarian sector

Moderator: Mr. Talaibek Koichumanov, Kyrgyz Investment Council

Co-moderator: Ms. Aynura Cholponkulova, Executive Director American Chamber of Commerce

The emergence of the private sector in the Kyrgyz Republic originated with the collapse of the USSR and the independence of Kyrgyzstan. In the early days of independence small and medium businesses, as well as large institutional investors appeared in the market. At this time, the established design, format and procedures of public-private dialogue was not yet available. As the business environment and attracting foreign investments developed little shoots of dialogue had appeared. Think tanks, consultative councils, ad hoc committees and working groups under the government agencies involved in the development of analytical and legal instruments and their further progress had emerged. However, such institutions were still sporadic and acted in solving separated problems. Only recently with the rapid development of business environment business started lobbying their interests, independent business associations and business councils were created. Since the partnership between public institutions and businesses in the agricultural sector is still underdeveloped and there is no serious analysis of this problem, the question of the interaction between public and private sector entities in the agricultural sector at the round table will be considered in close relationship and an example of public-private dialogue on a national scale.

Participants and speakers include: USAID, American Chamber of Commerce, Kyrgyz Chamber of Commerce, Association of Kyrgyz Businessmen, IBC, private Kyrgyz companies, Embassies of Russia, Kazakhstan, Germany, and others

6.  Investing in the Kyrgyz Agricultural Sector – feedback from the agribusiness community

Moderators: Ms Kunduz Masylkanova, Economist, FAO Investment Centre

Co-moderator: Mr Mehmet Ilkin, Senior Banker, Agribusiness Team, EBRD London

Aim of the session is to bring private sector stakeholders together to discuss current institutional constrains discouraging investments in Kyrgyz agriculture and suggestions to address these constrains to improve investment climate. Ideally the private companies should represent different regions (South/North), types of investments (dairy, vegetable, cotton ginneries, etc.), and stages of investment activities (already invested/planning to invest/failed to invest). The Government provides support to rural producers for implementation of sowing and harvesting works including distribution of seeds, fuels and lubricants, loans and other necessary materials, by public procurement of agricultural production, marketing and promotion. But private sector doubts the effectiveness and transparency of such support and involvement of business-community in decision0making process.

Participants and speakers include: Ekom, Coca-Cola, Wimm-Bill-Dann,  Kazexportastyk, Kyrgyz Agriculture and Food Corporation, L'Alliance, GIZ, ADB, JICA, and others.

10:30 COFFEE BREAK

11:00 Continuation of RT sessions

12:30 LUNCH

14:00 Each moderator of the RTs to present short summary of RT discussions on plenary session.

Moderated by Chairman: Mr. Charles Riemenschneider, Director of Investment Centre, FAO

15:00 COFFEE BREAK

15:30 Interactive Session with Questions and Answers

Moderated by Chairman: Mr. Charles Riemenschneider, Director of Investment Centre, FAO

17:00 Wrap up: recommendations and next steps

Speaker: Mr Masaru Honma, Director for Central Asia, EBRD

17:30 Closing of the Forum

By H. E. Torogul Bekov, Minister of Agriculture