According to official information, the committee will purchase deeply frozen beef of first category in half-bulks to resupply strategic state reserves. At the same time, the product could be both of local production and imported one.

The committee will pay for supplied products in national currency. Enterprises, which have experience in the industry and possess license of the state bodies, can participate in tender.

The minimal proposed volume should be at least 200 tonnes. Total volume of beef, which will be purchased by Uzkomgosrezerv, will make up 6,840 tonnes. According to tender terms, the products should be supplied till 31 December 2011. At assessment of tender proposals, the maximum purchase price for beef of the first category set at 11,500,000 soums per tonne.

The cost of full tender documentation makes up US$150, which will not be returned. The advanced payment or banking guarantee will make up 1% of estimated cost of products.

Uzbekistan plans to invest about US$100 million into meat and milk of the country. Within the programme on expanding production of meat and milk products, it is planning to create 410 new enterprises, equipped with mini-technologies and compact equipment of processing meat and milk products, including 200 enterprises of meat processing with total capacity of 85,000 tonnes a year.

In February 2009, the Uzbek President Islam Karimov presented tax and customs preferences to meat and milk producers till 1 January 2012. In particular, they were exempted from customs payment for imported equipment, spare parts to them, additional materials, ingredients, components, used in production and processing of meat and milk, which are not manufactured in Uzbekistan.

The government also cut single tax payment by 50% to microfirms and small enterprises, specializing on processing milk and meat. The saved resources should be directed to re-equipment and modernization of the capacities.

Financing of mini-equipment will be conducted due budget resources, loans of the banks, which will direct at least 20% of their own loans to purchase equipment for production of food products.

According to official statistics, production of meat in Uzbekistan rose by 6.6% to 1.365 million tonnes and milk by 6.5% to 5.778 million tonnes. According to experts, Uzbekistan only covers 60% of its demand for meat and 70% for milk.

Uzbekistan currently has 104 enterprises on processing meat with capacity of 153,100 tonnes. At the same time, half of all capacities are located in Tashkent region. It is expected that 50 meat processing plans with capacity of 24,800 tonnes will be launched in 2011, 73 enterprises with capacity of 73,000 tonnes in 2012 and 78 enterprises with capacity of 28,000 tonnes in 2013.

According to Ministry of Agriculture and Water Management, number of cattle in all categories of farms reached 8.024 million heads as of 1 November 2010 or rose by 566,700 heads or 7.6% year-on-year. Number of cows made up 3.327 million heads or grew by 202,400 heads or 6.5% year-on-year. Number of sheep and goats grew 936,800 heads or 7.4% to 13.599 million heads.

Uzbekistan also introduced changes to rules on processing of meat and milk products from 1 July 2009. Industrial processing and production of ready meat and milk products in Uzbekistan can be conducted only by legal entities.

Individuals, who processed raw materials for realization at markets, super markets and processing, should re-register as microfirms and small enterprises. Till 2012, these enterprises will receive 50% discount for payment of single tax payment. This will help to boost activity of small processing plants.

Main department of state material reserves under the Cabinet of Ministers of Uzbekistan was founded in line with the governmental resolution from 1992. The department was re-organized into Committee on management of state reserves (Uzkomgosrezerv) under the Cabinet of Ministers of Uzbekistan in line with the resolution of the presidential decree from 9 December 2003. Committee on management of state reserves is the state body on management in formation of the state material reserves.