AKIPRESS.COM - The agribusiness sector in Central Asia suffers from sluggish growth. In Kazakhstan, production fell 0.5 percent from 2007 to 2012; in Kyrgyzstan increased 0.9 percent over the same period, IFC said in its op-ed “How to Boost Sales and Cut Costs”.

Though figures vary from country to country, nearly two-thirds of Central Asians live in rural areas and depend on agriculture for their livelihood. Agriculture accounts for more than 45 percent of all jobs in Central Asia and nearly 25 percent of regional GDP. Even in Kazakhstan, with its strong energy sector and less agrarian economy, agricultural employment makes up 30 percent of the workforce.

To help Central Asian economies grow, it is essential to expand market access for the sector. The primary hurdle remains the minimal implementation of internationally recognized food safety standards. For example, in the Kyrgyz Republic, rising incomes resulted in increased food imports despite the country’s advantages in agriculture and food processing. The government’s priority now is to increase production in order to reduce import dependence on certain products, such as vegetable oil and sugar, and increase production of export-oriented products like dairy.

Improving food safety regulations is necessary, but not sufficient. Strengthening capacity at all levels is also needed. IFC experts are working to address the most pressing regional challenges, including raising awareness on food safety issues. The program also works with local market players to develop the capacity for implementing environmental and food safety practices and helps food producers with more in-depth advice on food safety practices.