The project pilots new mechanisms for income generation to improve the quality of the existing sources of revenue in rural areas such new micro edit products in support to livestock breeding and horticulture, small business and development of agricultural co-operatives.

Due to the slow transition from a centralized to a market system and the lack of exposure to alternative forms of farmers’ organizations, farmers in Fergana region have had so far difficulties to comprehend the tangible benefits deriving from western style farmers cooperatives. In order to address this issue, the project organized training, roundtables and seminars on the in-and-outs of setting-up a business, accessing credit and ensuring the sustainability of agricultural enterprises. This support is complemented by specialized training in soil fertility, small irrigation, and water management.

After an assessment of the local environment for the development of western type of farmers’ cooperatives and the establishments of 16 farmers’ voluntary focus groups in 2006, the ELS project finally selected the two groups of Kahat and Navbahor in Bagdad and Rishtan districts and helped them to form two cooperatives.¹ The selection was made by the ELS project after an evaluation of the business proposals presented by focus groups and an evaluation of the degree of participation and interest shown by the focus groups during the whole process.

The ELS project has assisted the two farmers’ groups to register as legal entities and trained them in business management and administration. It is now purchasing agricultural equipment that will enable the two groups to lease agricultural inputs and provide services to local farmers. In parallel, the project has helped the groups to prepare business plans to access credits provided by local banks through credit lines of the European Bank of Reconstruction and Development (EBRD). The credits will be used by the farmers to purchase additional equipment.

The two cooperatives would like to set up machinery rings, cooperative associations, undertaking a range of activities intended to serve the commercial interests of the farming community and their land management activities. By cooperative use of time and resources the ring acts as a management broker to its members, in order that its capital intensive plant and equipment may be utilized in the most cost effective manner.
Agriculture is the most sustainable sector and backbone of the economy in the Fergana, a region well know for its cotton and silk, fruit, vegetables and animal production. The agricultural sector remains of primary importance for the local population as a source of income generation. As the ELS cooperatives are pilot initiatives, lessons learned and experiences will be studied closely by regional authorities and communities to see whether they can be replicated in future.

[1] The assessment showed that the main problems of farmers in Fergana region are irrigation, mechanization, fruit sale, processing, storage, access to seed and credits. The farmers’ and ELS project are working together to address these problems and the challenges related to shortage of mechanization services in the two areas.