The value of Uzbekistan food industry production increased to UZS86 trillion ($6.8bn) in 2023 with 23mn tonnes of fruit and vegetables harvested, President Shavkat Mirziyoyev said during a conference focused on food.

Uzbekistan's export of fruits and vegetables has surged to 251,200 tonnes within the span of just two months, as per the data released by the Statistics Agency. The exports, valued at approximately $150mn, mark an increase compared to the same period last year.
The statistics reveal a 1.9-fold increase, equivalent to 115,500 tonnes, in fruit and vegetable exports from Uzbekistan during January and February of 2024. This surge underscores the country's growing prowess in the agricultural export market.
Key export destinations for Uzbekistan's produce include Pakistan, Russia, Kazakhstan, and China, which collectively accounted for a substantial portion of the exported goods. Pakistan emerged as the top importer, representing 26.6% of the market share, closely followed by Russia at 26.1%. Kazakhstan and China also contributed significantly, with market shares of 9.1% and 9% respectively.

The president has introduced a swath of reforms designed to not only boost production but also add greater value to all of Uzbekistan production, including food processing. Mirziyoyev called for invigorating investment and boosting export capabilities within Uzbekistan's agriculture and food industry sectors.

Uzbekistan is already a food powerhouse with exports around the world. However, the export performance in 2023 did not meet expectations, achieving only $2bn against a potential of $5bn, primarily due to organizational hurdles encountered by government officials and exporters, Daryo reports.

A substantial portion of Uzbekistan's exports, around 80%, are directed to merely five countries, and the government is keen to diversify its food export customer base. Moreover, a few select products dominate the country's fruit and vegetable exports, underscoring the urgent need for product diversification. For example, Uzbekistan is one of the world’s largest exporters of cherries.

In an effort to bolster export activities, the government has allocated substantial funds, including UZS 700bn ($56mn) annually for agricultural export support and UZS 1 trillion ($79.4mn) to augment production. Nevertheless, the utilization of arable land and agricultural resources remains suboptimal in certain regions, impeding the growth of exports, according to the government.

President Mirziyoyev said that tackling high food inflation and maintaining currency stability are key enablers for food export expansion. The meeting also provided a platform for exporters and logistics companies to voice their concerns and suggest improvements to export procedures.

Among the strategies endorsed during the meeting were the establishment of trading houses in key international markets and port cities to improve trade facilitation and market access. Additionally, the development of modern, internationally accredited laboratories was proposed to ensure product quality aligns with global standards.

To alleviate working capital constraints faced by exporters, the Business Development Bank is set to disburse UZS 1.5 trillion ($119mn) in preferential loans to export-oriented companies. This initiative is expected to provide a financial lifeline to exporters and stimulate business expansion.

The meeting also addressed the need to reduce product losses during transport and storage, emphasizing investment in refrigerated cargo containers and advanced packaging solutions to minimize natural losses and preserve product quality en route.

Looking ahead, the food industry is poised for growth through targeted investments and project implementations aimed at enhancing production value and export revenues. A special commission on fruit, vegetable, and food exports, led by the Prime Minister, has been formed to spearhead these export initiatives and ensure cohesive efforts across the sector.