Uzbek farmers in the Ferghana Valley have benefited from the extensive reach of EDP's Regional Trade Promotion service, with a deal to supply USD 200,000 of tomato paste to a Ukrainian buyer. In addition to this, the efforts of EDP's Ferghana Trade Specialist, looks as though they will pay off with extensive interest being shown in Ferghana fruit and vegetables from a Russian buyer.

Over the past two years the Uzbek fruits and vegetables processing industry has seen a sharp decline in exports. During this period of time, the number of Uzbek canneries dropped to a third of their earlier levels. The decline was caused by several reasons, not least; a devaluation of Uzbek currency versus USD, bad weather affecting the harvest and increasing costs, and a limited marketing effort to promote the products.

Ferghana RTP specialist, Saidaziz Turdaliev, analyzed the situation and developed a strategy to turn things around. After reviewing the data available he decided that promoting Uzbek produce in targeted markets where Uzbek goods would have a competitive advantage would be the best course of action. Saidaziz started by placing information on Uzbek processed fruits and vegetables on websites such as www.ukr.market. He also began to contact customers directly and explain the advantages of Uzbek produce.

As a result of his actions, Ferghana based MS Food concluded a deal with Ukrainian firm PZH Antey to supply 500 tons of tomato paste valued at 200,000 USD. This deal benefits not only MS Foods, but also the local farmers who will supply the 3,500 tons of raw tomatoes required to produce the paste. Bringing together different parts of the value chain created a competitive advantage for Uzbek fruits and vegetables.

Saidaziz is now exploring exporting to the Russian market. Novosibirsk located Sibirsky Privoz recently sent a representative to the Ferghana Valley to visit local processing plants. While there, the representative detailed which products will have the greatest demand and the quality requirements for the Russian market. In anticipation of a deal being reached, local canneries are now planning their production capacities accordingly for the year 2005.