IFAD launches project for Uzbekistan dairy

Credit: ©IFAD/Elyor Nemat
The International Fund for Agricultural Development (IFAD) and the government of Uzbekistan recently launched a new investment worth US$47.4 million that will target vulnerable dairy farmers. The Dairy Value Chain Development Project – Phase II (DVCDP II) will increase dairy farmers’ earning potential and contribute to better food security and nutrition in five regions of Uzbekistan.
DVCDP II will continue investing in the Jizzakh and Kashkadarya regions, while also expanding into Sirdarya, Samarkand and Surkhandarya. The project is designed to improve rural livelihoods by strengthening the dairy value chain, boosting productivity, and supporting sustainable development among dairy smallholder producers. It aims to reach around 31,000 households. Around 40% of project participants will be women, and 30% will be youth. The project will focus on household farmers, dehkan (smallholder) farmers, and vulnerable groups within the dairy value chain including people with disabilities and returning migrants.
The new project marks a significant step forward in the collaboration established between IFAD and Uzbekistan since 2011, when the country joined IFAD. DVCDP II will build on the success of the first phase of the project, which ran from 2017 to 2023, supporting 117,367 Uzbek households with total financing of US$50 million.
IFAD’s investments in the horticulture and dairy sectors of Uzbekistan have attracted significant interest from private sector and development partners eager to transform agricultural markets. These investments have also supported vulnerable farmers with adapting to challenging climatic conditions.
In response to ongoing global challenges—including conflict, water scarcity, and inflation—IFAD remains committed to empowering rural populations. Over the past decade, IFAD’s investment in Uzbekistan has grown into the largest country portfolio in Central Asia, with a total of US$480.36 million, reaching over 550,800 rural households.
This latest investment is part of IFAD’s ongoing Country Strategic Opportunities Programme for Uzbekistan (2023–2027), which reinforces the Fund’s work to supporting small-scale producers and advancing agricultural diversification across the country.