Uzbekistan’s Food Sector Surpasses $6.8 Billion in 2023

In 2023, Uzbekistan’s food industry reached a significant step, with its production value going over to UZS 86 trillion ($6.8 billion), claimed President Shavkat Mirziyoyev during a dedicated food conference. This achievement coincided with the successful harvest of 23 million tonnes of fruits and vegetables, underscoring the nation’s growing agricultural prowess.

Uzbekistan experienced an impressive surge in fruit and vegetable exports, which was around 251,200 tonnes in just two months. This uptick, valued at approximately $150 million, represents a substantial increase compared to the corresponding period of the previous year. Specifically, the data from the Statistics Agency display a remarkable 1.9-fold rise, equivalent to 115,500 tonnes, in fruit and vegetable exports during January and February of 2024, showcasing the country’s increasing footprint in the global agricultural export market.

Uzbekistan’s exported produce found key markets in countries such as Pakistan, Russia, Kazakhstan, and China, collectively constituting a significant portion of the exported goods. Pakistan emerged as the leading importer, commanding 26.6% of the market share, closely trailed by Russia at 26.1%. Kazakhstan and China also made notable contributions, capturing market shares of 9.1% and 9%, respectively.

Despite Uzbekistan’s status as a significant food exporter worldwide, the export performance in 2023 fell short of expectations, reaching only $2 billion against a potential of $5 billion. A concentration of exports to just five countries, accounting for approximately 80% of Uzbekistan’s export volume, underscores the necessity for diversification of the nation’s food export clientele. Additionally, the predominance of a few select products in Uzbekistan’s fruit and vegetable exports highlights the urgency for product diversification, notwithstanding the nation’s stature as one of the world’s largest cherry exporters.

To fortify export activities, the government has earmarked substantial funds, including UZS 700 billion ($56 million) annually for agricultural export support and UZS 1 trillion ($79.4 million) to bolster production. Nevertheless, certain regions grapple with underutilization of arable land and agricultural resources, impeding export growth, as highlighted by government officials.

Addressing high food inflation and ensuring currency stability emerged as crucial enablers for expanding food exports, as emphasized by President Mirziyoyev. Also, the conference provided a platform for exporters and logistics companies to articulate their concerns and proposed enhancements to export procedures.