The goal is to study the current situation and prospects for the development of livestock farming in the Abay region, identify main problems and determine ways to solve them, aimed at stimulating and increasing the efficiency of the industry. Methods – to prepare the article, various economic research methods were used: abstract-logical, monographic, synthesis and analysis, comparative and statistical, systematic approach. Results - analysis of the state of livestock sector in this region in 2021-2023 was carried out based on comparison of indicators of the number of livestock of farm animals and poultry, production volumes, output per unit of livestock, use of resources, feed, pasture lands, and the size of attracted investments in fixed capital. The dynamics of the amount of processed livestock products is considered, main limiting factors are identified, and the possibilities of small and medium-sized business entities for growing the potential of processing industry are shown. Conclusions - main problematic issues of livestock farms in the region include: ineffective realization of potential due to insufficient access to innovative technologies, low level of developed infrastructure, risks of livestock diseases, lack of feed, lack of domestic large processing enterprises in the dairy industry, low utilization of their production capacities . An effective and efficient tool is proposed as measures to support small agricultural producers - government procurement of food products from small farmers in the region based on the division of large contracts into lots. This method is widely used in EU countries, which has allowed small-scale farmers to expand access to the national market, increase their incomes and contributed to the growth of employment in rural areas.
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