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Economy 16/09/2024 Expansion of refrigeration capacities as a factor in reducing poverty

Expansion of refrigeration capacities as a factor in reducing poverty

Tashkent, Uzbekistan (UzDaily.com) — Currently, Uzbekistan produces over 22 million tons of fruits and vegetables annually, including vegetables (51.3%), potatoes (15.8%), fruits (13.8%), melons (11.3%), and grapes (7.7%).

The processing level for various products does not exceed 13-14% of production.

At the same time, losses are estimated by experts to be between 20-30%.

Horticulture and vegetable farming engage 5.4 million dehkan (household) and personal subsidiary farms, which produce a total of 57.3% of the country’s horticultural output.

Reducing losses in horticultural and vegetable products could bring an additional US$1.2-1.7 billion (at 2023 prices), which would contribute to reducing poverty in the country, where the poverty rate was estimated at 11.0% in 2023.

Thus, the issue of preserving horticultural products is becoming increasingly pressing, given the average annual growth rate of the horticultural sector at 3.7% over the past five years.

The primary purpose of refrigeration facilities is to temporarily store crops without deep freezing, which minimizes losses. This is a highly effective method for preserving the market appearance and taste qualities of fruits and vegetables.

As of 1 January 2024, the republic had 1,907 refrigeration warehouses with a total capacity of over 1 million tons.

Among the regions with the highest total refrigeration capacity are: Ferghana (161.9 thousand tons or 16.1% of the national capacity), Tashkent (130.5 thousand tons or 13.0%), Samarkand (102.6 thousand tons or 10.2%), and Andijan (100.4 thousand tons or 10.0%).

The average capacity of a refrigeration warehouse in the republic is 526.1 tons. The highest average capacity per refrigeration warehouse is observed in Tashkent (841.8 tons) and Namangan (788.3 tons) regions.

The smallest average warehouse sizes are found in the Republic of Karakalpakstan (264.9 tons) and Andijan (306.1 tons).

On average, refrigeration capacities in the republic cover 4.5% of the annual gross production of horticultural products.

The highest coverage rates are in Tashkent (7.1%), Kashkadarya (6.8%), Ferghana (6.6%), Khorezm (5.3%), Namangan (5.0%), and Jizzakh (5.0%) regions.

The lowest coverage rates are in Syrdarya (2.0%), Samarkand (2.9%), Bukhara (3.0%), Andijan (3.1%), Navoi (3.9%), Surkhandarya (4.4%) regions, and the Republic of Karakalpakstan (2.8%).

Industry experts argue that ideally, storage capacities should cover at least 75% of the country’s export potential.

In 2023, Uzbekistan exported 1.75 million tons of horticultural products.

This implies that refrigeration capacities in the republic should have reached 1.32 million tons by 2023. Thus, there was a shortfall of 315.1 thousand tons or a necessary growth of 31.4% in capacities.

In the future, given the significant increase in planned exports of horticultural products under government strategies, the shortage of refrigeration capacities could become more critical.

To address this, it is necessary to:

1. Assess the situation in regions to identify issues in expanding refrigeration capacities;

2. Conduct surveys of agricultural producers to determine the need for refrigeration warehouses, considering their volumes, types, etc.;

3. Develop a separate government support program for the creation of new refrigeration capacities in the regions of Uzbekistan, prioritizing the most lagging areas in terms of refrigeration facilities.

Support programs for constructing refrigeration warehouses are also implemented in other countries.

In 2023, the government of Georgia decided to implement a state program “Co-Financing of Refrigeration Warehouses for Berry Storage for Agricultural Cooperatives.”

The program will be managed by the Rural Development Agency. It will fund refrigerated warehouses designed for storing agricultural products with a minimum capacity of 30 tons. Co-financing for each potential beneficiary was set at up to 70% of the cost of the refrigeration warehouse, but not exceeding 250,000 lari (approximately US$96,000). To participate, the agricultural cooperative and/or at least five of its affiliated entities must have blueberry, blackberry, or raspberry plantations of at least 10 hectares in one municipality.

Similar programs have also been implemented in Moldova and Ukraine.

4. Create and make publicly available a digital map of transportation routes indicating the locations of refrigeration warehouses for storing fruits and vegetables, shock freezing projects, and processing facilities.

5. Consider the possibility of granting agricultural producers the right to place lightweight refrigeration warehouses on agricultural land.

Additionally, when providing state support for the construction of new refrigeration warehouses, it should be noted that refrigeration equipment with a capacity of 500 tons or more is primarily suitable for large enterprises and products that can be gathered for storage in bulk.

For perishable products requiring short-term storage, such as cherries, smaller capacity refrigerators are needed.

Attention should also be given to mobile refrigerated containers for storing produce. The main advantages of such refrigerators include:

- No infrastructure costs;

- Mobility;

- Temperature regimes adapted to specific crops.

Mobile refrigerators can be used throughout the fruit and berry season, moving between producers.

Stimulating the creation of new refrigeration capacities will help reduce crop losses in the republic and create opportunities for agricultural producers to increase their income by selling products out of season.

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