Tajikistan is one of the regions in the world that is highly vulnerable to food insecurity. More than 27 percent of the population live on less than $1.90 per day. Based on a report by USAID, “before COVID-19, as many as 3.3 million Tajiks, or one-third of the total population, were estimated to be food insecure, and of those, 1.6 million are severely food insecure.” Agriculture in Tajikistan contributes to 22.6 percent of the country’s gross domestic product and employs 45.7 percent of the population.
FINCA actively works to help farmers in Tajikistan improve their products and their profits.
Agriculture in Tajikistan: Nazarov Tojiddin’s Journey
Nazarov Tojiddin, a client of FINCA’s since January of 2024, farms peaches and nectarines in Tajikistan’s Balkhi district. During the peak growing season, he earns about 38 US cents per kilo of fresh peaches that he produces. However, as the year progresses and the fruit becomes scarcer, peach prices can soar to $1.13 USD per kilo.
Recognizing the potential to maximize his profits, Nazarov secured a loan from FINCA to build a cold storage unit. Because Nazarov understands the trends with agriculture in Tajikistan his strategic move allows him to harvest his fruit during the peak season and store it until prices rise. By July, Nazarov had already packed 20 tons of almost-ripe peaches and nectarines in his refrigerated unit. With 30 tons of space still available, he plans to buy fruit from other farmers at peak-season prices and store it for later sale.
The cold storage unit not only helps Nazarov command higher prices. It also reduces waste in agriculture in Tajikistan. “The cold storage will help me sell more of what I grow,” said Nazarov. In previous years, up to 50% of his crop was wasted due to insufficient demand. Now, Nazarov looks forward to his first post-season sales. He is even considering another loan to build a second cold storage unit.
Establishing Sound Business Practices and Lasting Relationship with FINCA
Another agriculture client is Zoirov Rustambek. Zoirov has been working with FINCA since 2016. He grows peaches, plums, and apricots and some of his fruit to a juice manufacturer. Because Zoirov has a written agreement with the manufacturer, FINCA is able to offer him a lower-cost financing through a loan program funded by KfW.
The KfW-funded program aims to strengthen the agriculture value chain in Tajikistan. It is available to small- and medium-sized enterprises in the agri-food industry. FINCA’s local branch manager, Kutbiddin Khojamurodov, noted that most farmers make verbal agreements, making it difficult to qualify for the subsidized loan. To assist them, FINCA created templates for farmers to draft their first written agreements. Zoirov was one of the first clients to make use of the template and secure the lower-cost loan.
Because of all the benefits of acquiring a loan with FINCA tailored to citizens involved or invested in agriculture in Tajikistan, Zoirov is in discussions with FINCA about purchase a truck for more efficient transport of his harvest. He also is considering buying land to expand his orchard. It’s no surprise that Zoirov readily offers the fact that “I liked the advice I received [from FINCA] and the relationship I built with staff.”
Nazarov and Zoirov are seizing opportunities and building sustainable futures partnering with FINCA’s support in agriculture in Tajikistan.
