Agriculture

Agricultural Production and Processing

The agricultural sector of Uzbekistan possesses a considerable foundation of resources based on farming and cattle breeding. It produces a wide selection of foodstuffs, tinned fruit and vegetables, juices, liquor, vegetable oil, meat and diary products. Uzbekistan is one of the world's top 20 vegetable oil producers, mainly producing cottonseed oil primarily for domestic consumption. The country's total production comprises one tenth of world production. Uzbekistan is one of the world's largest producers of tomato paste, raisins and dried fruit, famous for their exceptional taste and good quality. Ketchup and other condiments made from tomato paste are exported, while dried fruit is not yet ready for export. Viticulture is another successful activity of the agricultural industry, but wine production is inferior to that of world leaders. Poultry and meat production is lower than average world levels.

Agriculture production-related associations such as Uzplodoovoshwinprom, Maslojirtabakprom and Uzpisheprom have implemented programs to improve the effectiveness of production based on the latest technologies and equipment, attracting foreign investment and establishing joint ventures. The introduction of these programs is aimed at developing vegetable, fruit, potato farming, grape growing and viticulture, seed production, dairy and meat production - generally to improve the quality and volume of production to international standards, which will result in the growth of the export market. The production of gourds will be increased in the near future from 204 seeds per ha, up to 240 seeds per ha, raising the total domestic product from 3,580,000 tons in 1995 to 4,055,000 tons by the end of this year 2000, with no considerable increase in sowing area. An increase in the production of grapes from the present 800,000 tons to 1.3 million tons by 2005 is envisaged. Potato production will increase to 1.5 million tons in 2005, including the export of 8,000 tons. Improved farming techniques, the introduction of mechanized methods, and the use of effective fertilizers and plant chemicals will facilitate basic increases. Cultivating highly productive varieties of grapes, planting good quality potatoes, industrializing existing farms, researching conditions of various farming areas and salivating the soil should contribute to the increase in quality of agriculture in the country. The program to develop the agricultural and food processing sector will create expenses such as replacing technical equipment; reconstructing buildings; introducing new product lines; attracting foreign credit; and, establishing joint ventures   based   on  modern technologies, state-of-the-art equipment and experience. In order to lay a solid base of raw materials, which in turn will supply enterprises that produce quality products, agricultural companies will be established. Foreign partners will be used for their valuable experience in farming techniques. The Uzplodoovoshwinprom Association plans to implement 13 investment projects for fruit and vegetable production and processing - the total investment being approximately US$ 550-600 million. The Uzmyasomolprom Association plans to implement over 25 projects providing for the manufacture of specialized dairy products and packaged sausages - the total investment being US$ 27-30 million. The success of these projects will increase the volume of production almost 10-fold within 2 years, while decreasing import costs by US$ 72-85 million. Exports will in turn bring in US$ 10-12 million. Foreign partners are invited to play a role in the agricultural life of the Republic of Uzbekistan. Attracting well-known foreign partners as investors and cofounders of joint ventures will enable the introduction of new technologies, using their capacities to sell on the foreign market.

Uzbekneftegas - The National Oil and Gas Corporation - was founded in 1992 and consists of 14 basic units (more than 266 enterprises and organizations) employing over 84.000 people. Step-by-step, Uzbekneftegas has been undertaking the denationalization   and privatization of branch enterprises. In 1994, 46 enterprises were privatized and joint stock companies formed. They generally serve the basic oil and gas extraction industry. At this time (Sep 2000), there are approximately 40,000 people (40%) working in the non-governmental sector of the corporation. Prospected reserves of gas in the republic make up 37 percent; and oil with gas-condensate - 14.3 percent. These reserves will satisfy the gas requirements of the republic for the next 35 years, and oil for the next 30 years. On the whole, during recent years the production of oil has stabilized and with due account of condensate, the volume of hydrocarbon production will make up 10 million tons by the end of the year 2000 The export of motor petrol will increase by the end of the year and make up 400,000 tons; diesel - 700,000 tons; fuel oil - up to 200,000 tons; technical oils and lubricants -130,000 tons; aviation kerosene -150,000 tons; natural gas - up to 9 billion cubic meters; and, liquefied gas - up to 40,000 tons. The depths of Uzbekistan contain rich reserves of hydrocarbon, evaluated at more than US$ 1 trillion. Over 160 deposits of oil and gas were discovered in five oil and gas bearing regions - 92 of which are under exploitation. Hydrogen sulfide and sulfide compounds which are contained in gas and gas condensate are extracted and conversed into sulfur at the Oil and gas condensate produced in the republic are processed at the Fergana, Altyaryk and Bukhara oil refineries, with the total annual output exceeding 11 million tons. These plants produce virtually the entire range of products existing in the assortment of oil refining. The Gas pipeline network of the republic is a part of a single system of the CIS countries gas pipeline, having intergovernmental importance not only to Central Asia, but also to the European part of the CIS and Transcaucasia. It is possible to transport over 20 billion cubic meters of products through the system annually. Mubarek Gas Processing Plant at the Shurtan Gas Complex, which utilizes one of the world's largest molecular sieves. The overall capacity of those gas-processing enterprises makes up around 40 billion cubic meters per annum. Total quantity of sulfur production is over 330,000 tons per year. The construction of the Shurtan Gas and Chemical Complex for producing polyethylene and liquefied gas began in 1998, with designed annual capacity of 125,000 tons of polyethylene, 137,000 tons of liquefied gas, and 37,000 tons of light condensate. Hydrocarbon potential of the region is evaluated at four billion tons of equivalent fuel and there are all necessary prerequisites to discover new deposits of oil and gas. Currently, seven deposits have been discovered, one of gas, and six of gas condensate. The largest are Shakhpakhty, Urga and Akchalak. Initial reserves by their industrial categories exceed 95 billion cubic meters. Several joint ventures have been set up which produce high quality lubricants with Texaco (USA); Gas Compressor with American Engineering Incorporated (USA) to transfer vehicles from petrol to gas fuel; and, UzMalOil with Probady Sdn. Bhd (Malaysia) to develop and exploit depleted oil fields. The project of joint exploitation with Enron Corporation of gas-condensate deposits in Bukhara Province (the Kandym Project) is currently under study. The implementation of the project will enable production and export of an additional 6 billion cubic meters of natural gas per annum. The amount of foreign investment in the oil and gas industry of Uzbekistan will exceed US$ 1.5 billion.

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