Characterization of the aquafeed sub-sector in Kyrgyz Republic: A value chain analysis

Abstract

This is the first post-USSR country case study which assesses the value chain performance of the aquafeed sub-sector including mapping the aquafeed value chain, performance of different actors in terms of value addition and profitability and their possible constraints, and feed regulations, institutions and policies of aquafeed sub-sector in Kyrgyz Republic. Qualitative and quantitative data were collected, for each link in the value chain from different regions of the country. Qualitative and quantitative data analysis result shows that the Kyrgyz aquafeed sub-sector is still in its infancy since there is very little domestic aquafeed production. Its value chain is very simple, including only few actors comprising feed input suppliers, aquafeed producers, aquafeed traders and fish farmers, and all of them are doing their business profitably by performing some of the value addition activities including buying and selling, transportation, small-scale packaging, grinding, storage, etc. Most trout farmers (80–85%) use commercially manufactured pellet feeds typically imported from Europe and Russian Federation. In contrast, most carp farmers (90–95%) use farm-made feed, prepared from domestically produced feed ingredients, the exceptions being fishmeal, vitamins and premixes, which are imported from Kazakhstan and Russian Federation. The feed mills in Kyrgyz Republic produce conventionally pressed, pellet feeds, mostly for their own farm, with the remainder sold to neighboring farms. Feeds are sold directly to farmers with payment either in cash or on credit, or sold through intermediaries such as wholesalers and retailers. Feed ingredient costs represents 80–90% of the total operating costs of the feed mill, and feed costs represents 65–75% of the total operating cost of the fish farms. The strengths, weaknesses, opportunities and threats and other major factors impacting on the performance of the aquafeed value chain are also identified. The study recommends a number of supply and demand side entry points for interventions, and investments to sustainably develop the aquafeed sector in Kyrgyz Republic.