Livestock farming is not just a branch of agriculture; it is a key source of food security and income for rural residents in Uzbekistan. The backbone of production consists of farmer and dehkan households, which supply the country with milk, meat, and other animal products. However, for many years, their development was constrained by limited access to financing, outdated equipment, and weak processing infrastructure.
The project “Financing the sustainable development of the livestock sector”, with the participation of the French Development Agency (AFD), aims to change this situation. With a total funding of around 100 million euro, the project supports farms, modernizes livestock operations, introduces climate-resilient technologies, and develops product processing.
Financing is provided through banks: international resources are allocated to the government and then distributed via commercial banks in the form of loans to farmers. This scheme ensures:
• access to long-term loans for various types of farms,
• reduction of financial risks,
• incentives for investment in agriculture.
As of March 2026, banks have already financed 339 subprojects totaling 57.6 million euro. Within these investments, farmers have purchased modern poultry and livestock equipment, significantly expanded their livestock herds, and upgraded machinery.
“Entrepreneurs can use loan funds to purchase pedigree livestock (cattle, sheep, goats), construct and modernize livestock complexes, acquire feed harvesting machinery, and install milk/meat processing equipment, as well as implement water-saving technologies on pastures. In particular, thanks to modern feeding methods and the acquisition of imported livestock, the productivity of a single cow in participating farms has increased by an average of 15–20%,” said Oybek Yusupov, Head of Investment Project Financing at MKBANK.
Thus, farmers use loans to address key priorities:
- Farm modernization — building new complexes, renovating existing farms, purchasing modern equipment.
- Feed base development — acquiring equipment for feed harvesting, expanding forage crop cultivation.
- Product processing — mini-dairy plants, refrigerated warehouses, meat processing lines.
- Implementation of modern technologies — automated feeding, digital farm management, genetic improvement of livestock.
In addition to loans, the project provides European Union grant support, which can cover up to 40% of the investment project cost. To date, participating farms that meet the standards of “green” livestock farming have already received 1.9 million euro in grants.
Beyond financing, the project includes a technical assistance component, aimed at improving farmers’ financial literacy, developing sustainable business plans, and implementing climate-optimized technologies. The initiative also promotes climate-resilient livestock practices, including efficient water use, improving the feed base, and reducing the carbon footprint of production.
These investments increase animal productivity, reduce production costs, and raise farm incomes. Moreover, the initiative creates jobs: 3,249 new jobs have been created through subprojects, 848 of which are designated for women.
The “Financing the sustainable development of the livestock sector” project, implemented with the support of the French Development Agency, contributes to the development of rural infrastructure and strengthens the country’s food security, creating a sustainable foundation for further development of the agricultural sector.
