Automobile Industry of Uzbekistan by gyp14917

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									SOUTH-SOUTH TRADE PROMOTION PROGRAMME




                UZBEKISTAN

  ECONOMIC COOPERATION ORGANIZATION



  Supply and Demand Survey on Food and Beverages




                                 July 2002




 Uzbek Foreign Economy Information and Commercial Center “Uzincomcenter”
     Ministry for Foreign Economic Relations of the Republic of Uzbekistan
                             107, Amir Temur Str.
                    700084 Tashkent, Republic of Uzbekistan
                 Supply and Demand Survey on Food and Beverages – Uzbekistan




The designations employed and the presentation of the material in this document do not
imply the expression of any opinion whatsoever on the part of the International Trade
Centre UNCTAD/WTO (ITC) concerning the legal status of any country, territory, city or
area or of its authorities, or concerning the delimitation of its frontiers or boundaries.

While every effort has been made to verify the information contained in this document,
ITC cannot accept any responsibility for any errors that it may contain.




 This report has not been formally edited by the International Trade Centre UNCTAD/WTO (ITC).



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                   Supply and Demand Survey on Food and Beverages – Uzbekistan




                             TABLE OF CONTENTS

                             Part I:         Supply Survey
I.     INTRODUCTION                                                                      9

       A. Background                                                                     9

       B. Significance of the product to the economy and foreign trade sector
          of the country                                                                 9

       C. Specific objectives of the survey                                             10

       D. Methodology of survey                                                         10


II.    SUMMARY OF CONCLUSIONS AND RECOMMENDATIONS                                       11


III.   MAIN PART OF THE SUPPLY SURVEY REPORT                                            11

       A. Structure of the industry                                                     11
          1. Range of products                                                          11
          2. Number of firms manufacturing the products                                 14

       B. Capacity and production                                                       19
          1. Investment requirements for expanding the capacity                         20

       C. Raw materials                                                                 21
          1. Major indigenous and imported raw materials required for production        21
          2. Impact of prices of raw materials on the ex-factory value of the product   22
          3. Policy of the Government on imports of raw materials                       22
          4. The list of countries, with which were signed the Trade-Economic
             co-operation Agreements providing the MFN regime                           24
          5. The Value Added Tax (VAT)                                                  24

       D. Other production inputs                                                       24

       E. Quality standards                                                             25
          1. Quality control and preliminary shipment inspection of importing           25
          products

       F. Research and development                                                      26



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             Supply and Demand Survey on Food and Beverages – Uzbekistan




G. Domestic demand                                                           26
   1. Government policy on export supplies vis-à-vis domestic requirement    26

H. Export                                                                    26
   1. Trend of food and beverages export on the period 1997-2001             27
      (a) Direction of exports and relative shares of major export markets   27
   2. Trend of food and beverages export to ECO member countries             31
   3. Reasons for impressive or unimpressive export to participating         35
      countries
   4. Export prices                                                          35
   5. Nature of export plans markets and promotional measures                38

I.   Export policies and stimulations                                        39
     1. Export privileges provided by the Government                         39
     2. Tax benefit on exporting                                             39
     3. Export policy, regulations, procedures and their effectiveness       40

J. Export channels                                                           40
   1. Involvement of manufacturers in direct exports                         40
   2. Role of merchant-exporters (trading companies)                         40
   3. Perspectives of stimulation of export operations of small and middle
      size enterprises                                                       41
K. Transportation                                                            41
   1. Availability, suitability of transportation (auto, railway, air and
      sea transport) for export to member countries                          41

L. Packaging                                                                 42

M. Export insurance, credits and finance                                     42

N. Trade promotion                                                           43

O. Conclusions and recommendations                                           44




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                   Supply and Demand Survey on Food and Beverages – Uzbekistan




                            Part II:        Demand Survey

I.     INTRODUCTION                                                                  47

       A. Significance of the product to the economy and foreign trade sector
          of the country                                                             47

       B. Specific objectives of the survey                                          48

       C. Methodology of survey                                                      48


II.    SUMMARY OF CONCLUSIONS AND RECOMMENDATIONS                                    49


III.   MAIN PART OF DEMAND SURVEY REPORT                                             49

       A. Market size                                                                49
          1 Domestic industry                                                        49
             (a) Production volume of some beverages and foodstuff products
                 of “Oziqovqatsanoat” Association                                    50
             (b) Factors limiting the production output                              51
          2. Imports                                                                 52
             (a) Import of food and beverages for the period 1997-2001               52
             (b) Import tendency of food and beverages of Uzbekistan
                 for the period 1997-2001                                            53
             (c) Import of tea in Uzbekistan                                         54
             (d) Food and beverages imports to Uzbekistan by country of origin       55
             (e) Factors affecting imports                                           59
          4. Apparent consumption                                                    60
             (a) Export                                                              60
             (b) Distribution of food and beverages export of the Republic
                 of Uzbekistan to ECO members countries for the period 2000-2001     61

       B. Import policy and procedures                                               64
          1. Regulations                                                             64
          2. Import duties: description of classification, basis of assessment and
              amount of percentage duty                                              65
             (a) General                                                             65
             (b) The customs duties on foodstuff products and beverages              66
             (c) Most Favoured Nations (MFN)                                         66
             (d) Preferential                                                        67



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             Supply and Demand Survey on Food and Beverages – Uzbekistan




    3.   Other charges on import                                           67
    4.   Customs duties and collections                                    68
    5.   Custom valuation                                                  68
    6.   Documentary requirements for import                               68

C. Import practices                                                        69
   1. Alternative modes of transport to country; usual point of entry      69

D. Competition                                                             70

E. Market perspectives and market entry strategy                           71

F   List of useful addresses                                               72




                                 ANNEXES


Annex I       Euroasian Transport Corridors                                73
Annex II      Company profiles                                             75




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Supply and Demand Survey on Food and Beverages – Uzbekistan




      Part I: Supply Survey




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Supply and Demand Survey on Food and Beverages – Uzbekistan




                            8
                    Supply and Demand Survey on Food and Beverages – Uzbekistan




                               I.      INTRODUCTION

                                     A.      Background
As a second stage of implementing the “South-South Trade Promotion Programme” of the
International Trade Centre UNCTAD/WTO (ITC) and the “Expanding Intra-Regional Trade”
project of the Economic Cooperation Organization (ECO) Uzbek Foreign Economic
Information and Commercial Center “Uzincomcenter” carried out a marketing survey on
supply and demand on the Food and Beverages market of the Republic of Uzbekistan based
on the terms of reference of ITCs “South-South Trade Promotion Programme”.

This report reflects the results of the survey on food and beverages sector of Uzbekistan,
which includes the following product groups, defined for survey by the ITC:

          №        HS codes                                Product name
          1.         07             Vegetables and certain edible roots and tubers
          2.         08             Edible fruits, nuts, peel of citrus fruit
          3.         12             Oil seed, oleagic fruits, grain, seed, etc.
          4.         20             Processing of vegetables, fruits and nuts
          5.         22             Beverages, spirits, and vinegar



B.     Significance of the product to the economy and foreign trade sector of
                                 the country
Food and beverages sector of the Republic of Uzbekistan is one of the priority sectors of the
country.

The main market share on the foodstuff market is traditionally fresh and processed
agricultural products. Uzbekistan has powerful agricultural raw materials potential and is able
to grow up more than 10 million tons of horticultural and viticultural products,
5 million tons of vegetables, potatoes, melon and gourds.

Export share of this sector totaled 5.4% from the total export volumes in 2000 year, and 3.8%
in 2001.

The share of fresh and processed agricultural products of Uzbekistan is predominant in the
volume of food and beverages sector exports.

Though customs statistics shows the price reduction of fresh vegetables, fruits, seeds, canned
tomato and some other food products, the export of potato, onions, carrot and the number of
other vegetables and root plants were considerably decreased in last year. The exports of
processed agricultural products, including dried fruits, fresh fruits, oil seed and vegetable oil
were also less than in previous years. Unfavorable climatic conditions in past years, shortage
of water, affected the volume of production and exports.

Besides, as the comparison shows, import of foodstuff into the republic had been reducing
during several years, but the market, as it is known, did not suffer from the gap, and domestic
producers of agricultural products immediately reacted by filling it.

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                    Supply and Demand Survey on Food and Beverages – Uzbekistan




Import reduction of foodstuff to 6.6% was mainly conditioned with the decreasing of grain
and grain products purchases, and simultaneously building up of domestic foodstuff
production. As a result the import of flour-grinding products, ready-made grain products,
meat and sub-products, confectionery products and many other products decreased.


                        C.      Specific objectives of the survey
The main purpose of this survey is to address the situation, conditions, possibilities and
prospects of food and beverages sector of the Republic of Uzbekistan. Increasing of export
volumes to ECO member countries, as well as development of intra-regional trade are other
objectives of this survey.

The survey takes the following for achievement of the main purpose:

   Collection, analyzing of initial data on food and beverages sector as a whole and on
    separate enterprises;
   Identification of opportunities (advantages and disadvantages) and analyzing of conditions
    of food and beverages sector;
   Definition of strategy, tendency and prospects of sector development;
   Presentation of recommendations on quality improvement, increasing of volumes and
    export of food and beverages, as well as on investment opportunities of food and beverages
    sector of the Republic of Uzbekistan.



                              D.      Methodology of survey
The survey was carried out by collecting initial data through a direct method (questionnaire
and interviewing) from producers, exporters and importers of the food and beverages sector.
Information was received from the coordinating organizations as well as from authorized state
bodies. Collected information was generalized, systematized, analyzed by using of estimation,
measuring, comparison, and mathematical calculation methods. During the preparation of the
report databases of the Ministry for Foreign Economic Relations of the Republic of
Uzbekistan and “Uzincomcenter” were used.




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                   Supply and Demand Survey on Food and Beverages – Uzbekistan




     II SUMMARY OF CONCLUSIONS AND RECOMMENDATIONS


There is a great potential both for increasing of food and beverages raw materials export and
for building-up the production of processed products (on the basis of deep processing of local
raw materials) with the high added value, as well as for expanding of their exports.

In order to increase the export potential of the sector it is necessary to strengthen the
marketing activity by developing a strategy “to produce the products which are demand
driven”, that is considered to manufacture products for the target markets and specific buyers.

Besides, it is essential to provide exporters with business information, using modern
information and communication technologies, investment and tax benefits.



                      III        MAIN PART OF THE SURVEY


                            A.     Structure of the industry
Home industry presents more than 200 companies with different forms of ownership (without
counting small and medium firms) on the market of food and beverages. Specialized
governmental associations, holding company, enterprises and private sector are represent the
food and beverages sectors of the Republic of Uzbekistan.

   Association “Dekhqon va fermer khujaliklari”;
   Holding company “Uzmevasabzabotuzumsanoat-holding”;
   Governmental Joint Stock Company “Uzbeksavdo”;
   Association “Yogmoytamakisanoat”;
   Association “Oziqovqatsanoat”.

In addition to the large specialized enterprises, small and medium enterprises also produce
foodstuff in the republic.

1. Range of products

“Dekhqon va fermer khujaliklari” Association of the Republic of Uzbekistan unites all farmer
holdings of the Republic, the association’s members produce a wide range of foodstuffs
products – canned fruit and vegetables, juices, beverages, vegetable oil, meat and dairy
products.




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                     Supply and Demand Survey on Food and Beverages – Uzbekistan




The range of products, manufactured by the enterprises of holding company
“Uzmevasabzabotuzumsanoat-holding” exceeds 500, which include the following:

                                           Canned vegetables

 1. Tomato                                                 7. Jam
 -Tomato paste with 30% content of dried substances        -Apple
 -Tomato juice natural                                     -Quince
 -Ketchup                                                  -Plum
 2. Marinade                                               -Apricot
 -Cucumber pickled entire                                  -Pumpkin
 -Cucumber pickled cut                                     -Peach
 -Tomatoes pickled red                                     8. Fruit juices
 -Tomatoes pickled green                                   -Apple
 -Pepper pickled                                           -Quince
 -Garlic pickled                                           -Pomegranate
 -Sugar – beat pickled                                     -Grapes
 -Cabbage pickled                                          -Apple with pulp
 -Cabbage piquant                                          -Plum with pulp
 -Salad “Achchik-chuchuk”                                  -Peach with pulp
 -Salad “Yangilik”                                         -Apricot with pulp
 -Аssortment “Vesna”                                       -Pumpkin beverage
 3. Natural                                                -Fruit puree made of apricot, quince, plum, apple
 -Cucumber canned entire                                   standard 12%
 -Cucumber canned cut                                      11. Concentrated juices
 -Tomatoes canned                                          -Apple
 -Tomatoes in tomato sauce                                 -Grapes
 -Leafs of grapes                                          12. Dried products
 -Sugar – beat trimming                                    -Borsch set
 -Carrot trimming                                          -Cabbage dried
 -Cucumber in tomato juice                                 -Potatoes dried
 4. Snack                                                  -Raisins “Shigani”
 -Spawn amateur                                            -Onions dried
 -Aubergine pate                                           -Carrot dried, red
 5. Dinner                                                 -Carrot dried, yellow
 -Shchi made of fresh cabbage                              -Vegetable mixture for soup (by order)
 -Borsch. Made of fresh cabbage                            -Pepper “Bulgarian”, dried (by order)
 -Рассольник                                               -Pepper red, milled (by order)
 6. Compote                                                -Sugar – beat dried - (by order)
 -Apple                                                    -Turnip dried (by order)
 -Cherry                                                   -Apples dried (by order)
 -Plum                                                     -Dried-compote mixture
 -Apricot                                                  -Pear dried
 -Quince                                                   -Dried apricots (by order)
 12. Wine products                                         13. Champagne
 -Wine dried                                               -Dried
 -Wine fortified ordinary                                  -Semi-dried
 -Wine dessert, fine wine                                  -Semi-sweet
 -Wine dessert, ordinary                                   -Sweet



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                     Supply and Demand Survey on Food and Beverages – Uzbekistan




 14. Brandy                                           -Oltin favora
 -Uzbekiston                                          14. Wine materials
 -Ankhor                                              -Fortified, “Port” type
 -Shodlik                                             -White, dried
 -Sogdiana                                            -Wine dessert, ordinary, Kagor, Muskat, Tokay type
 -Afrosiab                                            -Wine dessert, fine wine, Uzbekiston, Aleatika, Gullya-
 -Samarkand                                           Kandoz, Shirin, Farkhad type
 -Khalkabad
 -Brendy Shokhrud
 -Balsam Samarkand


Product range of enterprises of Joint Stock Company “Uzbeksavdo”:

1. Canned products
 Apricot jam;
 Peach jam;
 Apple jam;
 Quince jam;
 Melon jam;
 Plum jam;
 Fig jam;
 Raspberry jam;
 Strawberry jam.


2. Frozen vegetables and fruits
 Cauliflower;
 Potatoes chips;
 Carrot;
 Pepper “Bulgarian”;
 Plum;
 Peach;
 Apricot;
 Raspberry;
 Strawberry;
 Aubergine;
 Vegetable mixtures.


The main types of the products, produced by enterprises of “Yogmoytamakisanoat”
Association, are: refined oil, household and toilet soap, margarine production, glycerin, etc.

Enterprises of “Oziqovqatsanoat” Association are mainly specialized on production of
carbonated non-alcoholic beverages.




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                          Supply and Demand Survey on Food and Beverages – Uzbekistan




2. Number of firms manufacturing the products

“Dekhqon va fermer khujaliklari” Association unites all farmer holdings of the republic as its
members on a contractual base. The Association is an independent and non-governmental
organization, it includes 23103 farmer holdings. 14074 of them-plant-growing, 5023-cattle-
breeding, 1838-horticultural and wine direction.

The members of the Association have a right to export fruit and vegetable products, produced
by the farmer holdings independently on a barter base. The main objectives of the association
are:
    Creation of favorable conditions for formation of class of owners on the base of rapid
     development of private business, small and medium business in agricultural sector;
    Active attraction of credit resources and foreign investments into the sector of private
     business activity of farmer holdings;
    Assisting to farmer holdings in realization of their products on local and foreign markets.

The sector of agricultural products processing has a large resources base. Products of stock
raising and farming are its basis. Wide range of foodstuff products, such as: foodstuff cans,
juices, beverages, vegetable oil, meat, dairy products, is being produced at the present time.

“Uzmevasabzabotuzumsanoat-holding” Holding Company was established in the form of a
joint stock company. It includes 27 specialized firms on procurement, storing, processing and
realization of fruit and vegetable products and wine, 40 re-casting, 89 agricultural and 15 joint
ventures.

         Enterprises included in “Uzmevasabzabotuzumsanoat-holding” Holding Company

    N°               Name of the organization                                    Address
                                        Manufacturers of dried products
                                                          2, Namangan str., Turakurgan city, Namangan
    1.     “Shirinlik” Firm
                                                          region, 727100, Uzbekistan
                                                          2, Dustlik str., Bulungur distr., Samarkand region,
    2.     “Bulungur mevalari” Firm
                                                          704500, Uzbekistan
                          Manufacturers of canned fruit and vegetables. Babies nutrition
                                                          10, Ingiskinsk str., Kattakurgan city, Samarkand
    3.     “Kattakurgan” Firm
                                                          region, 704200, Uzbekistan
                                                          Halkabad, Yangiyul distr., Tashkent region,
    4.     Firm named after Yusupov
                                                          702844, Uzbekistan
                                                          49, Amir Temur str., Gazalkent, Bustonlyk distr.,
    5.     “Gazalkent” Firm
                                                          Tashkent region, 702130, Uzbekistan




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                     Supply and Demand Survey on Food and Beverages – Uzbekistan




                                Manufacturers of Wine And Vodka products
6.    “Nukus-vino” Joint Stock Company              44, Jayingal str., Nukus city, 742903, Uzbekistan
                                                    Malyarov state farm, Hodjaabad distr., Andijan
7.    “Gulbulok” Firm
                                                    region, 711160, Uzbekistan
                                                    195, Bahouddin Nakshband str., Bukhara city,
8.    “Shokhrud” Firm
                                                    Bukhara region, 705007, Uzbekistan
                                                    Tongotar, Bakhmal settlement, Jizzakh region,
9.    “Bakhmal-sharob” Joint Stock Company
                                                    704507, Uzbekistan
                                                    170, Amir Temur str., Shakhrisabz city,
10.   “Kesh” Firm
                                                    Kashkadarya region, 731701, Uzbekistan
                                                    3, Sputnik str., Navoi city, Navoi region, 706800,
11.   ”Navoi” Joint Venture
                                                    Uzbekistan
                                                    Yukori Rovuston, Namangan city, Namangan
12.   “Osiyo” Firm
                                                    region, 716000, Uzbekistan
      “Yangikurgan wine factory” Joint Stock        Yangihayot, Yangikurgan distr., Namangan region,
13.
      Company                                       717323, Uzbekistan
                                                    Yangihayot, Yangikurgan distr., Namangan region,
14.   “Yanis-JV” JV
                                                    717230, Uzbekistan
                                                    H. Amirov str., Turakurgan distr., Namangan
15.   “Sohilobod”
                                                    region, Uzbekistan
                                                    58, Mahmud Kashgari str., Samarkand city,
16.   Firm named after Hovrenko
                                                    Samarkand region, 703000, Uzbekistan
                                                    Krasnogvardeysk, Samarkand region, 7046000,
17.   “Bulungur sharbati” Firm
                                                    Uzbekistan
                                                    Taylyak dist., Samarkand region, 704456,
18.   “Bagizagan” Firm
                                                    Uzbekistan
                                                    Shopulat, Taylyal dist., Samarkand region, 704454,
19.   Collective farm named after Saidnazarov
                                                    Uzbekistan
                                                    13, Registan str., Samarkand city, Samarkand
20.   “Zarafshan” Joint Stock Company
                                                    region, 703004, Uzbekistan
                                                    51, Sovet str., Denau city, Surkhandarya region,
21.   “Denau wine factory” Joint Stock Company
                                                    703550, Uzbekistan
                                                    11-A, Pushkin str., Syrdarya city, Syrdarya region,
22.   “Syrdarya-vino” Joint Stock Company
                                                    708400, Uzbekistan
                                                    Anbarsay, Denau dist., Surkhandarya region,
23.   “SAVB” Firm
                                                    733516, Uzbekistan
                                                    153, Samarkand str., Yangiyul city, Tashkent
24.   “Yangiyul” Firm
                                                    region, 702800, Uzbekistan
                                                    127, Sovet str., Parkent dist., Tashkent region,
25.   “Parkent sharobi” Joint Stock Company
                                                    700222, Uzbekistan
                                                    48, Zavod, Gazalkent city, Tashkent region,
26.   “Konvin” Joint Venture
                                                    702180, Uzbekistan
                                                    45, Akhunbabaev str., Tashkent, 700060,
27.   “Tashkentsharobi” Firm
                                                    Uzbekistan
                                                    186, S. Mashkadiy str., Tashkent, 700007,
28.   “Uzbekiston shampani” Firm
                                                    Uzbekistan




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                     Supply and Demand Survey on Food and Beverages – Uzbekistan




                                           Tare plants
      Andijan plant of polymer tare Joint Stock  Kirovobod, Hodjaabad city, Andijan region,
29.
      Company                                    711160, Uzbekistan
      Yangiyul plant “Metalloplastmass” Joint    215, Samarkand str., Yangiyul city, Tashkent
30.
      Stock Company                              region, 702800, Uzbekistan
31.   Yangiyul EPMZ                              Tashkent region, 702846, Uzbekistan
                                                 Namdanak, Parkent dist., Tashkent region, 733415,
32.   “Hamkor” Joint Stock Company
                                                 Uzbekistan
                                                 Muminobod, Urgut dist., Samarkand region,
33.   Muminobod LTD
                                                 Uzbekistan
34.   “Farital” Joint Venture                    Tashkent, Uzbekistan
35.   “Sun-Wine” Joint Venture                   Tashkent, Uzbekistan
36.   “Matonat” LTD                              Tashkent, Uzbekistan
37.   “Azel” LTD                                 Tashkent, Uzbekistan
38.   “Yigitali” Private Firm                    Andijan region, Uzbekistan
39.   “Bobur Mirzo” Subsidiary Enterprise        Surkhandarya region, Uzbekistan
40.   “Hur-Kush” Private Production Firm         Yangiyul city, Tashkent region, Uzbekistan
                                                 15, Akhunbabaev str., Tashkent, 700047,
41.   “Bolalar taomlari” Holding Company
                                                 Uzbekistan
42.   “Uzplodovoshimpex” Joint Stock Company     16-A, Lakhuti str., Tashkent, 700015, Uzbekistan
43.   “ Mevasabzavotuzumsanoatmarketing” Firm 6, Abay str., Tashkent, 700011, Uzbekistan
44.   Company “Uzplodovoshcentrservice”          16-а, Lakhuti str., Tashkent, 700015, uzbekistan
      “Uzmevasabzavotuzumsanoatloyiha” Joint
45.                                              16-а, Lakhuti str., Tashkent, 700015, uzbekistan
      Stock Company
                                                 6-b, T. Tula Vodniy str., Tashkent, 700003,
46.   “Mevasabzavot” Joint Stock Company
                                                 Uzbekistan
47.   “Uzagrotrans” Joint Stock Company          75, Gavkhar str., Tashkent, 700081, Uzbekistan
      “Uzkartoshkanavuruglari” Joint Stock
48.                                              248, Salomatin str., Tashkent, 700121, Uzbekistan
      Company
49.   Sh. Rashidov shirkat farm                  Kurgatepa dist., Andijan region, Uzbekistan
50.   Gallaosiyo shirkat farm                    Bukhara dist., Bukhara region, Uzbekistan
                                                 Honkurgan, Kasansay dist., Namangan region,
51.   Shark Yulduzi shirkat farm
                                                 Uzbekistan
52.   Govasoy shirkat farm                       Namangan region, Uzbekistan
53.   Turakurgon shirkat farm                    Turakurgan dist., Namangan region, Uzbekistan
                                                 Sichkov str., Kibray dist., Tashkent region, 702130,
54.   Kibray shirkat farm
                                                 Uzbekistan
                                                 R. Musamukhamedov shirkat farm, Kibray dist.,
55.   R. Musamukhamedov shirkat farm
                                                 Tashkent region, Uzbekistan
                                                 Zarkent, Parkent dist., Tashkent region, 702225,
56.   Zarkent shirkat farm
                                                 Uzbekistan
                                                 40, H. Olimjon str., Kitab dist., Kashkadarya
57.   Kitob shirkat farm
                                                 region, Uzbekistan
58.   Otajonov shirkat farm                      Ogonek, Kuychirchik dist., Uzbekistan
                                                 5, Samarkand str., Chinaz dist., Tashkent region,
59.   “Olmazor” Firm
                                                 Uzbekistan




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                     Supply and Demand Survey on Food and Beverages – Uzbekistan


                                       Private and other enterprises
                                                      33, Musaev str., Andijan city, Andijan region,
60.   “Andijan” Firm
                                                      710020, Uzbekistan
                                                      Musaev str., Kuyganer, Andijan city, 710000,
61.   “Mask” Joint Venture
                                                      Uzbekistan
62.   “Lidiya” Joint Venture                          “Mask” JV
                                                      Hojaabad distr., Andijan region, 711160,
63.   “Khojaabadmevalari”
                                                      Uzbekistan
                                                      B. Hudoynazarov str., Gallaorol city, Jizzakh
64.   “Baltimor – Gallaorol”
                                                      region, 704620, Uzbekistan
                                                      1, Nugaev str., Shakhrisabz city, Kashkadarya
65.   “Shakhrisabz” Firm
                                                      region, 731701, Uzbekistan
                                                      1, Temir yul str., Namangan city, Namangan
66.   “Namangan” Firm
                                                      region, 716003, Uzbekistan
                                                      88, Magistral str., Toylyak, Samarkand region,
67.   “Taylyaksharbati” Firm
                                                      704453, Uzbekistan
                                                      Mannonov str., Chelak city, Samarkand region,
68.   Baltimor-Chelek JV
                                                      cannery
                                                      Al Fargoni str., Kibray distr., Salar, Tashkent
69.   “Yangi Toshkent” Firm
                                                      region, 702147, Uzbekistan
70.   “Navruz” Firm                                   Bakhor str., Fergana city, 700312, Uzbekistan
                                                      47, A. Temur str., Kuva city, Fergana region,
71.   “Mevazor” Firm
                                                      713920, Uzbekistan
                                                      2, Al-Horazmi str., Samarkand city, 703033,
72.   “Kishmish” Firm
                                                      Uzbekistan
                                                      Bobur, Zangiota dist., Tashkent region, 700021,
73.   “Far-Vab” Joint Venture
                                                      Uzbekistan
                                                      Bobur, Navoi collective farm, Zangiota dist.,
74.   “Farovon” LTD
                                                      Tashkent region, 702021, Uzbekistan
                                                      11, H. Olimjon str., Kibray dist., Tashkent region,
75.   “Karvon”
                                                      702130, Uzbekistan
76.   “Doz-Tur” LTD Joint Venture                     Tashkent region, 702000, Uzbekistan
                                                      Tashkent dist., Keles city, Tashkent region,
77.   “Mekhnat” Small Enterprise
                                                      702004, Uzbekistan
78.   Zarkent LTD                                     Zarkent, Parkent dist., Tashkent region, Uzbekistan
79.   Parkent shampani Joint Venture                  Parkent dist., Tashkent region, 700222, Uzbekistan
                                                      14, Uzbekistan str., Keles city, Tashkent region,
80.   “Bulgaria-sharob” Joint Venture
                                                      702004, Uzbekistan
                                                      44g, Proekt str., Chilanzar dist., Tashkent,
81.   “Asil Billur” LTD
                                                      Uzbekistan
                                                      1, Navoi str., Kibray dist., Tashkent region,
82.   “Afsar” LTD
                                                      702130, Uzbekistan
                                                      Bobur, A. Navoi collective farm, Zangiota dist.,
83.   “Hamkor Osiyo” LTD
                                                      Tashkent region, 702021, Uzbekistan
                                                      Shampan, Parkent dist., Tashkent region, 702223,
84.   “Bonu-Golging” LTD
                                                      Uzbekistan
85.   “Gallaorol-Belogorsk” collective company        Gallaorol dist., Jizzakh region, Uzbekistan
                                                      73, Istanbul str., Kokand city, Fergana region,
86.   “Mastona” Joint Stock Company
                                                      713002, Uzbekistan
                                                      51, Kommunistic str., Urgench city, Khorezm
87.   “Urgench sharobi” Firm
                                                      region, 740000, Uzbekistan
                                                       195, Bahouddin Nakshband str., Bukhara city,
88.   “Nur” Joint Venture
                                                      Bukhara region, 705007, Uzbekistan
                                                      Hayrandara, Oltinsoy dist., Surkhandarya region,
89.   “Musallas ishlab chikarish” collective farm
                                                      Uzbekistan
                                                      Shopulat, Taylyak dist., Samarkand region,
90.   “Adas”
                                                      704454, Uzbekistan
                                                      Zangiota dist., Tashkent region, 702834,
91.   “Zangiota” plant
                                                      Uzbekistan
                                                      20/1, Chulpon shokh str., Anijan city, Andijan
92.   “Dacha” Joint Stock Company
                                                      region, 700193, Uzbekistan
                                                    17
                   Supply and Demand Survey on Food and Beverages – Uzbekistan



“Uzyogmoytamakisanoat” Association includes 19 oil and fat enterprises, experimental and
mechanical plant on production of non-standard equipment and spare parts, 2 private firms,
4 joint ventures, and a number of non-industrial organizations, which specialize on project,
construction and installation works, as well as service providing. Production is based on
processing of local agricultural raw materials: technical cotton seeds, pit and seed raw
material, tobacco, soya bean, etc.

“Oziqovkatsanoat” Association consists of 34 managing subjects, including 24 production
enterprises, and supplying project and construction associations. They include a number of
enterprises: producers, exporters, as well as importers of ready-made products and raw
materials.

The following enterprises produce the export-oriented products:

   “Coca-Cola ichimligi Uzbekistan LTD” Joint Venture;
   “Pulsar” Concern;
   “Rohat” Joint Stock Company;
   “Max-Huroson” Joint Venture.

“Coca-Cola ichimligi Uzbekistan LTD” Joint Venture produces nonalcoholic strong-
carbonated beverages “Coca-Cola”, “Fanta”, “Sprite” and 6 types of beverages with sugar-
substitute of Fresco series. Beverages are produced in bottles from PET, with 1,5 liter
capacity and in 0,25 liter glass bottles. Concentrates of “Coca-Cola” company are used only.

“Pulsar” Concern produces carbonated nonalcoholic beverages with partial use of sugar-
substitutes “Zelenoe yabloko”, “Apelsin”, “Klubnika”, “Cola”, “Buratino”, “Dyushes”, and
others, which are authorized by the Ministry of Health of the Republic of Uzbekistan.
Beverages are produced in 1,5 liter bottles from PET, and in glass bottles with capacity of
0,5 liter. Concentrates imported by foreign partners are used in production of beverages.

“Max-Huroson” Joint Venture-produces carbonated nonalcoholic beverages from
concentrates, imported from Germany, with use of sugar syrup and sugar-substitutes.
Beverages are produced in bottles from PET with capacity of 1,0 and 1,5 liters.

“Rohat” (Kibray) Joint Stock Company produces nonalcoholic beverages from concentrates,
imported from Germany, in glass bottles with capacity of 0,33 and 0,5 liters, with use of sugar
syrup. “Shaftoli”, “Kivi”, “Apelsin” and other beverages are in great demand in the local
market.




                                               18
                         Supply and Demand Survey on Food and Beverages – Uzbekistan




                                 B.       Capacity and production
The results of the survey show that most enterprises on production of food and beverages are
not fully exploited the production capacities due to different reasons.

For example, existing production capacities at enterprises of “Uzmevasabzavotuzumsanoat-
holding” Holding Company can provide the productivity of 404416 cans, but only
176720 cans are being produced at the moment. This consists 43.7% of the total volume of all
production capacity of the enterprises.

The shortage of agricultural raw materials (fruits and vegetables) is the main reason of not
fully exploiting the production capacities in the enterprises of Holding Company.

The general condition of production capacity utilization at the enterprises of
“Ozikovkatsanoat” is described in the following table:

  Company name            Measurement unit       1997         1998        1999         2000    2001
   “Coca-Cola” Joint
        Venture
    Annual capacity       Thousand deciliter     16950       27300        38950        38950   38950
  Beverages produced      Thousand deciliter     21047       21894        12187        12603    8481
  Capacity utilization           %               124.0        80.2         31.2         32.3    21.8
   “Pulsar” Concern
    Annual capacity       Thousand deciliter      3000        3000         3000        3000    3000
  Beverages produced      Thousand deciliter        759         704         197         217     159
  Capacity utilization           %                 25.3        23.5          6.6         7.2     5.3
 “Max-Huroson” Joint
        Venture
    Annual capacity       Thousand deciliter          -         750         750          750     750
  Beverages produced      Thousand deciliter                      -         138          192     347
  Capacity utilization           %                                         18.4         25.6    56.0
“Rohat” (Kibray) Joint
    Stock Company
    Annual capacity       Thousand deciliter      1909        1909          620          620     620
  Beverages produced      Thousand deciliter        879         425         315          316     404
  Capacity utilization           %                 46.0        22.3        50.8         50.9    65.2

Products are produced in accordance with the demand. It affects the capacity utilization. In
order to utilize it more effectively, mineral water is bottled on existing lines.

For realization of technical re-arrangement of beer production at “Rohat” Joint Stock
Company, with implementation of imported technologies, the enterprise needs 3.0 mln., US$
at the expense of foreign credits. The event is planned to be holding on 2002-2005.

The general condition of production capacity utilization at the enterprises of “Uzbeksavdo”
Company: Full capacity of the products for 2001 was: jam-500 ton per year, frozen fruits and
vegetables-2000 ton. The products are produced in two shifts.

Production capacities are not fully being utilized, due to shortage of raw materials and low
quality of packaging materials (standard of local cans and covers).




                                                     19
                    Supply and Demand Survey on Food and Beverages – Uzbekistan




It is necessary to improve the quality of raw materials and packaging, as well as create new
export markets for utilization of production capacities fully.

In order to expand the production capacities, it is essential to purchase the equipment for
producing the smallest packaging jams (portion: 20,25,30 gr.).

1. Investment requirements for expanding the capacity

Re-orientation from the production of raw materials into the manufacturing of finished goods
may be implemented at the expense of accelerating the development of basic sectors of
industry, attracting foreign investments to the economy of the Republic of Uzbekistan,
increasing the effectiveness of utilizing investment resources, financing of which allows for
further manufacture of export-oriented products with high added value. In accordance with
the above mentioned, main accent for further development of the economy of the Republic
should be directed to attract foreign investments to the sectors, which allows it to turn from
export of raw materials to the export of competitive ready-made products by creating
industrial chains “from processing of raw materials – to production ready-made products”.
   In canned production sector, modernization of operating equipment on production and pre-
    packing of tomato paste and fruit puree, equipment on “Twist-off” cap rolling and deep
    processing of fruits and vegetables, and pre-packing of products into small tare;
   In wine production sector, realization of projects of modernization of operating lines of
    wine and vodka bottling, improvement of the quality of wine and wine materials, creation
    of Joint Ventures on production of new kinds of products, and other.

“Uzmevasabzavotuzumsanoat-holding” Holding Company is realizing 13 investment projects
on processing of fruit and vegetable products and 8 projects-on production of agricultural
products. It will allow increasing of product export. The projects are oriented on purchase of
advanced technological equipment for production of natural juice, production and packaging
in aseptic pre-packing of tomato paste, table spirit production, tare and tare-packaging
materials, production of dried and frozen fruits, vegetables and other production. Great
attention is paid to orientation on products, produced for export.

It is planned to lead the production of fruit and vegetable products and wine to 7,1 million ton,
500-550 thousand ton of which is to be supplied for export in fresh condition in nearest
2-3 years. Financing of further supply of equipment produced by KHZ Firm (Germany) for
“Shoh-Shohbati” Joint Stock Company (Tashkent), champagne wine bottling line with
capacity of 8000 bottles per hour is opened. Negotiations with “Tekstima” Firm on purchase
of dried fruits are being held, and the question of creation of a Joint Venture, which
specializes on production of dried fruit products, on the base of one of the enterprises of the
company is being considered. Negotiations with “Fige” and “Gekeon-Fruchthandel GmbH”
Firms on supply of fruit and vegetable products for export, and with ”Lamgol” Firm on
supply of the equipment on production of tinplate covers of “Twist-off” type are being held.




                                                20
                      Supply and Demand Survey on Food and Beverages – Uzbekistan




                                         C.       Raw materials
The following table shows the import food and beverages of the Republic of Uzbekistan in the
period 1997-2001 (in thousand US$):

  №            Product name                   1997           1998        1999       2000         2001
 1.   Meat and edible meat offal           84,424.6          10,363.8     61,014    16,701.4      6,768.0
 2.   Fish & crustaceans                    1,094.9             920.0      456.5       214.0        209.6
      Dairy products: bird’ eggs;
 3.                                        46,540.1          39,254.4    31,775.1   21,485.1     12,491.3
      natural honey;
      Edible vegetables and certain
 4.                                           7,044.5         3,867.8     3,983.7    5,375.8      6,140.1
      roots and tubers
 5.   Edible fruit and nuts                 3,669.5        2,040.6        1,814.0    6,586.3      3,766.7
 6.   Coffee, tea, mate and spices         60,016.1       24,646.0       25,625.0   13,576.3     16,963.6
 7.   Cereals                             184,970.1      142,092.6       12,640.9   78,971.7     66,962.6
 8.   Products mill industry                   51,215        27,910.5    34,406.6   26,743.5      9,958.7
     Oil seed, oleaginous fruits;
 9.  miscellaneous grain, seed, fruit,     61,569.8          44,531.6    44,649.4   25,037.0     30,161.7
     etc.
     Animal and vegetable fats and
 10.                                      108,768.2          33,812.9    27,117.4   23,850.0     19,001.5
     oils
     Prepared meat, fish or
 11.                                       17,969.4           5,904.5    16,120.2    5,956.4      2,864.5
     crustaceans

 12. Sugar and sugar confectionery        156,221.6      123,453.4      100,174.3   97,374.7   129606,5.0
 13. Cocoa and cocoa products                 6,818.1         2,844.7     3,828.2    3,485.9      3,361.9
     Preparations of cereals, flour,
 14. starch or milk; pastry cooks’         22,463.1           6,045.8     3,195.7    2,782.1      1,507.1
     products
     Preparations: of vegetables,
 15. fruit, nuts or other parts of            1,675.5         1,020.6     1,128.8     963.2        970.3
     plants
 16. Other edible products                 38,110.8          29,066.3    21,650.9   18,040.1     14,608.6

 17. Beverages, spirits and vinegar           4,626.3         1,731.7     1,011.4    1,281.0      2,031.1

                 Total                    857,197.6      499,507.2      390,592.1   348,425     327,373.8


1. Major indigenous and imported raw materials required for production

Agricultural products (fruits, vegetables, etc.) are the major indigenous raw materials for
enterprises of “Uzmevasabzavotuzumsanoat-holding” Holding Company. They are grown and
supplied by farmer holdings and individual sector.

Sugar, which is the major raw material for production of nonalcoholic beverages at the
enterprises of “Oziqovqatsanoat” Association, is produced in necessary quantity for industrial
processing. Auxiliary materials – Label products and glass bottles are produced in unlimited
quantities in the republic. Only concentrates, capsules for blowing out the bottles from PET
and covers are imported on agreed prices.


                                                        21
                     Supply and Demand Survey on Food and Beverages – Uzbekistan




    Major indigenous and imported raw materials required for production of the enterprise
                          of “Uzbeksavdo” Joint Stock Company

     indigenous

     - Fresh fruits and vegetables;                               - Ascorbic acid;
     - Cardboard;                                                 - Pectin;
     - Bottles;                                                   - Polythene.

     imported

     -   Ascorbic acid;                                           - Bottles;
     -   Pectin;                                                  - Adhesive labels;
     -   Polythene;                                               - Cardboard.
     -   Covers;

The major sources of raw materials for enterprises of “Uzbeksavdo” Joint Stock Company
are:
   Indigenous: Farmer holdings (fruits and vegetables), Kuvasay plant (glass bottles),
    “Sanoatqalinqogozsavdo” Joint Stock Company (cardboard boxes);
   Imported: Russian and European companies (Adhesive labels, bottles, cardboard, edible
    supplements).

Quantity/volume
   Indigenous: 3000 ton of fruits and vegetables, polythene.
   Imported: 1000,0 thousand units of labels, bottles, covers, 400 thousand units of boxes,
    1 ton of Ascorbic acid per year, 500 Kg of pectin.

2. Impact of prices of raw materials on the ex-factory value of the product.

As a matter of fact, indigenous raw materials for production of foodstuffs and beverages in
Uzbekistan are used as the major raw material. The prices of indigenous raw materials are
relatively low. In this case, the prices of indigenous raw materials do not affect the ex-
factory value of the products.

It is also necessary to notice that the cost of the products may be negatively affected by
unfavorable climatic conditions, as well as by increase of prices on imported raw materials.

3. Policy of the Government on imports of raw materials

Since independence, the Government of the Republic of Uzbekistan is implementing a
regular policy on liberalization of trade regime of the Republic.

New rates of customs duties were declared by the Decree of the Cabinet of Ministers of the
Republic of Uzbekistan “About the improvement of foreign trade activity regulation” № 189
from May, 31, 2002, which were brought into force since July 1, 2002.



                                                 22
                      Supply and Demand Survey on Food and Beverages – Uzbekistan




The rates of customs duties are shown below:

                                                                                 Rates of customs duties
HS code
           HS code                       Product name                         (in % from the customs cost
 group
                                                                                   or in US$ per unit)
   1          2                                 3                                           4
   07     0701-0714     Edible vegetables and certain roots and tubers                      30
                        Edible fruit and nuts; peel of citrus fruit and
   08     0801-0814                                                                         30
                        melons
                        Oil seed, oleaginous fruits; miscellaneous grain,
          1201-1214
                        seed, fruit, etc.
                        Soya beans, whether or not broken
   12     1201 00                                                                           0
                        Groundnuts, not roasted or otherwise cooked,
          1202                                                                              30
                        whether or not shelled or broken...
          1203 00       Copra, linseeds, rape or colza, broken or not
                                                                                            10
          000-1214      broken...
                        Preparations: of vegetables, fruit, nuts or other
   20     2001-2009                                                                         30
                        parts of plants

   22     2201-2209     Beverages, spirits and vinegar

                        Waters, including natural or artificial mineral
                        waters and aerated waters, not containing added
                        sugar or other sweetening matter not flavored; ice   30, but not less than US$ 0,15
          2201 2202
                        and snow and other non-alcoholic beverages not       for 1 liter
                        including fruit or vegetable juices of heading No.
                        20.09
                        Beer made from malt                                  30, but not less than US$ 0,3
          2203 00
                                                                             for 1 liter
                        Wine of fresh grapes, including fortified wines;     30, but not less than US$ 0,5
          2204-2206
                        grape must other than that of heading No. 2009.      for 1 liter
                        Indentured ethyl alcohol of an alcoholic strength
                                                                             30, but not less than US$ 1,0
          2207-2208     by volume of 80% vol. Or higher; ethyl alcohol
                                                                             for 1 liter
                        and other spirits, denatured, of any strength
                        Vinegar and substitutes for vinegar obtained from
          2209                                                                              10
                        acetic acid

The Law “On customs” states that marginal rates of import customs duties are levies on
products, originating from the countries with whom the Republic of Uzbekistan is applying
for Most Favored Nations (MFN).

According to Resolution of the Cabinet of Ministers “About additional measures on
liberalization of foreign trade activity in Uzbekistan” № 137 from 31 March 1998, the rates
of duties, brought into force by the Resolution № 189 of the Cabinet of Ministers dated
31.05.2002 are the rates of MFN regime. Tariff rates of MFN regime are doubled for non
MFN regime countries.

In accordance with the intergovernmental Agreements of Trade-Economic co-operation the
Republic of Uzbekistan provides MFN status to 38 countries of the World.




                                                    23
                  Supply and Demand Survey on Food and Beverages – Uzbekistan




4. The list of countries, with which were signed the Trade-Economic co-operation
   Agreements providing the MFN regime

    1. Austria                         14. Ireland                          27. Romania
    2. Bangladesh                      15. Spain                            28. Saudi Arabia
    3. Belgium                         16. Italy                            29. Slovakia
    4. Bulgaria                        17. China                            30. USA
    5. Great Britain                   18. Korea                            31. Turkey*
    6. Hungary                         19. Latvia                           32. Finland
    7. Vietnam                         20. Lithuania                        33. France
    8. Germany                         21. Luxembourg                       34. Czech Republic
    9. Greece                          22. Malaysia                         35. Switzerland
    10. Denmark                        23. Netherlands                      36. Sweden.
    11. Israel                         24. Pakistan*                        37. Estonia
    12. India                          25. Poland                           38. Japan
    13. Jordan                         26. Portugal

5. The Value Added Tax (VAT)

The rate of VAT (20%) is fixed for importing products (works, services) by the Tax Code of
the Republic of Uzbekistan.

The VAT payment on imported products is effected before or during the customs registration.


                           D.      Other production inputs
At the present time many enterprises are equipped with state-of-the art technology. To assist
Uzbek enterprises to upgrade their facilities, the Government is promoting a policy aiming at
attracting foreign investments.

“Uzyogmoytamakisanoat” plans to create joint ventures on production of new kinds of
products: shampoos, edible aromatic supplements, spirit, packing up of spices, bottling of
mineral water.

Existing technologies and automatic lines on the enterprises of “Ozikovkatsanoat”
Association allow to produce the export-oriented products.




                                              24
                     Supply and Demand Survey on Food and Beverages – Uzbekistan




                                  E.      Quality standards
Quality standards and certification, which are used in the industry (national/international
standards) in the Republic of Uzbekistan: in cannery production-standards of the former
USSR (CIS countries) are used, in wine sector – new republican standards are elaborated, and
the use of some State Standards of the former USSR is continued.

Food and beverages are produced according to national and international standards, and the
work on quality improvement is continually monitored.

Before the distribution of finished goods a complete analysis of product quality is made, and a
certificate and quality conformity on shipped products are issued.

1. Quality control and preliminary shipment inspection of importing products

In order to provide the import of high-quality consumer goods, food, machines, equipment
and technologies the Cabinet of Ministers of the Republic of Uzbekistan decreed Resolution
(№ 534 from December 3 1997) “About measures of implementation of contracts independent
examination of preliminary shipping inspection of goods being imported”. The given
Resolution is directed on implementation by consulting firms of independent examination of
contracts on:
   Physical inspection for confirmation of quantity, quality and origin of goods to be shipped;
   Comparative analysis to evaluate the price of goods, freight, insurance and other fees
    corresponds to price level in origin country and international market prices;
   Checking of conformity of the present consignment of goods to contract requirements as
    well as to the customs instructions of the Republic of Uzbekistan.

Independent examination of import contracts and preliminary shipping inspection of goods
being imported is implemented by consulting companies that meet requirements of
International federation of inspection agencies and accredited in Uzdavstandard, in
accordance with principles of Agreement on preliminary shipping inspection GATT/WTO.

Economic management subjects of the Republic of Uzbekistan that fulfil import goods
delivery, have the right according to their own choice to address to consulting companies with
the purpose of contract examination and implementation of preliminary shipping inspection.

Implementation of preliminary shipping inspection of goods being imported does not apply
to:
   deliveries of goods according to contracts the total value of which does not exceed
    US$ 10 thousand;
   deliveries of specific goods, import of which is executed according to licenses that are
    being issued by the Ministry for Foreign Economic Relations of the Republic of
    Uzbekistan.




                                                 25
                         Supply and Demand Survey on Food and Beverages – Uzbekistan




       The list of the products, import of which is executed with obligatory procedures
                              of preliminary shipping inspection

             Product group                    Short name
                                                                                   HS codes
                number                 of HS code product group
            12                    Oil seeds and fruits                  120100
                                  Alcoholic and nonalcoholic
            22                                                          2203 00, 2204, 2207, 2208
                                  beverages



                                 F.        Research and development

There are Research and Development Centers in the structure of each Coordinating
Organization, as well as there are Research and Development divisions in each enterprise,
producing the researched products. They are busy with the solution of primarily problems of
scientific-technical development of the sector, including increasing of competitiveness in the
foreign markets, by the improvement in quality and design of manufacturing products.


                                        G.      Domestic demand
1. Government policy on export supplies vis-a-vis domestic requirement

The export of goods and services is the main source of hard foreign currency, so the
government policy is directed on export stimulation, including foodstuff products and
beverages. But the priority is given to export of products (based on deep processing of
domestic raw materials) with high added value. (Look below in the part “Export privileges
provided by the government” in the chapter “Export policies and stimulation”).


                                                H.      Export
In the following table are giving volumes of export of food and beverages from Uzbekistan
for the period 1997-2001 (in thousand US$):

      HS
№                    Product name                1997        1998           1999         2001        2002
     code
            Edible vegetables and certain
1.   07                                          47,867.9    28,779.5      42,078.6      26,092.6   21,282.9
            roots and tubers
2.   08     Edible fruit and nuts                56,943.0    34,390.1      33,979.0      42,953.7   37,512.9
            Oil seed, oleaginous fruits;
3.   12     miscellaneous grain, seed, fruit,     7,409.0     4,643.7      20,099.1      27,448.2   10,998.4
            etc.
            Preparations: of vegetables,
4.   20     fruit, nuts or other parts of        16,503.7    15,755.2      49,010.0      27,657.6   22,375.9
            plants
5.   22     Beverages, spirits and vinegar        4,191.1     2,348.7        3,660.4      5,177.2    4,692.6

                      Total                     132,914.7    85,917.2     148,827.1     129,329.3   96,862.7


                                                        26
                       Supply and Demand Survey on Food and Beverages – Uzbekistan




1. Trend of food and beverages export on the period of 1997-2001

The diagram above shows that export volumes have decreased from 1998 to 2001. This kind
of export recessionary trend is related to unfavorable climatic conditions of last years.

  160000
                                                                  148827,1
  140000
                               132914,7                                        129329,3
  120000
                                                                                         96862,7
  100000
                                              85917,2
      80000

      60000

      40000

      20000

               0
                       1997г .        1998г .            1999г .       2001г .           2002г .




(a)    Direction of exports and the relative shares of major export markets

            Grouping of export products of the Republic of Uzbekistan by country
                                 for the period 2000-2001.

                                01/01/2000-31/12/2000     Share    01/01/2001-31/12/2001
                                                                                          Share 2000
        Country                                Value,      in                   Value,
 №                      Unit                                                             in % to 1999
         name                   Quantity     thousand     % to     Quantity thousand
                                                                                           total in %
                                                USD       total                  USD
07    Edible
      vegetables and
      certain roots
      and tubers
      Total             Ton      17,061.7     26,089.1     1.19    161,328     21,79.5     1.20    81.56
      To foreign
                                   9,764       4,444.7              13,853     4,306.7             96.89
      countries
      Afghanistan                  1,144         296.5               5,273     1,434.4            483.71
      UAE                          4,270       1,925.8               4,678     1,602.7             83.22
      Turkey                       2,554       1,329.0               2,018       637.9             48.00
      Other foreign
                                   1,796         893.4               1,884       631.6             70.71
      countries
      To CIS
                                 160,854      21,644.4             147,475    16,972.8             78.42
      countries
      Kazakhstan                   14720       2,038.2               7,243       989.4             48.55
      Russia                     142,022      18,438.1             134,746    14,698.0             79.72
      Other CIS
                                   4,111       1,168.1               5,486     1,285.4            110.04
      countries




                                                   27
                       Supply and Demand Survey on Food and Beverages – Uzbekistan




 08  Edible fruit
     and nuts; peel
     of citrus fruit
     and melons
     Total              Ton      218,473      42,948.3    1.96   213,867     37,508.4      2.12     87.33
0802 Other nuts,
     fresh or dried,
     whether or not
     shelled or
     peeled
     Total              Ton        3,770       3,584.9    0.16      5,818     5,203.4      0.29    145.15
     To foreign
                                   2,824       3,047.7              3,245     3,708.7              121.63
     countries
     Afghanistan                      82         144.1               436        698.3              484.51
     Iran                                                            398        381.8
     Lebanon                          28          39.3               144        187.8              478.30
     Syria                            16          20.0               270        370.1             1,851.33
     UAE                             189         138.5               272        281.9              203.58
     Turkey                        2,392       2,623.6               942        982.9                37.46
     Other foreign
                                     117          82.2               782        805.3              980.12
     countries
     To CIS
                                     946         537.2              2,573     1,494.7              278.24
     countries
     Russia                          888         480.2              2,391     1,218.5              253.74
     Kazakhstan                       46          30.3                111       187.9              619.86
     Other CIS
                                      12          26.7                71         88.3              331.00
     countries

0806 Grapes, fresh
     or dried
     Total              Ton       92,434      20,765.6    0.95     89,272    16,653.7      0.94     80.20
     To foreign
                                   1,534       1,069.2              1,534     8,336.0               77.96
     countries
     Syria                            16           3.9                59        620.0             1,592.8
     The
                                     327         206.3               687        414.3              200.84
     Netherlands
     Turkey                          425         232.2               520        237.0              102.11
     Other foreign
                                     766         626.8               268        120.2               19.18
     countries
     To CIS
                                  90,900      19,696.4             87,738    15,820.1               80.32
     countries
     Russia                       87,256      18,423.2             85,198    14,922.7               81.00
     Other CIS
                                   3,644      12,733.0              2,540       897.4               70.48
     countries

0807 Melons
     (including
     watermelons
     papaws
     (papayas),
     fresh)
     Total              Ton       27,869       2,244.3    0.10     29,789     2,299.2      0.13    102.45
     To foreign
                                     157          39.3               194         42.1              107.21
     countries
     India                             0           0.1                13             3.3          2,515.38




                                                   28
                       Supply and Demand Survey on Food and Beverages – Uzbekistan




      Latvia                         117          33.5               181         38.8             115.92
      Other foreign
                                      40           5.6                                                  0
      countries
      To CIS
                                  27,712       2,205.1             29,594     2,257.2             102.36
      countries
      Russia                      25,876       2,050.9             28,052     2,119.1             103.33
      Other CIS
                                   1,836         154.2              1,542       136.0               89.52
      countries

0809 Apricots,
     cherries,
     peaches
     (including
     materials),
     plums and
     sloes fresh
     Total              Ton       34,678       4,587.4    0.21     37,276     5,089.9      0.29   110.95
     To foreign
                                       6           0.7                26         12.4             1,716.67
     countries
     Germany                                                           1             1.1
     Iran                                                             20             4.9
     The
                                                                        2            1.8
     Netherlands
     UAE                                                                2            4.2
     Other foreign
                                       6           0.7                  1            0.4            55.56
     countries
     To CIS
                                  34,672       45,876              37,249     5,077.5             110.70
     countries
     Russia                       34,186       4,506.9             36,666     4,993.2             110.79
     Other CIS
                                     486          79.6               583         84.3             105.68
     countries

0810 Other fruit,
                        Ton       21,262       2,536.8    0.12     19,892    21,058.0      0.12     83.01
     fresh
     To foreign
                                      73          41.7                86         31.4               75.26
     countries
     Korean
                                      34          28.6                16             5.1            17.89
     Republic
                                                                                                  4,120.6
      Latvia                          16           0.6                70         26.0
                                                                                                        3
      Other foreign
                                      22          12.5                  0            0.3             2.56
      countries
      To CIS
                                  21,189       2,495.0             19,807     2,074.4               83.14
      countries
      Russia                      20,520       2,378.1             19,433     2,025.6               85.18
      Other CIS
                                     669         117.0               374         48.8               41.72
      countries

0813 Fruit, dried,
     other than that
     headings
     № 0801 to
     0806 mixtures
     of nuts or
     dried fruits of
     this chapter
     Total              Ton       15,481       5,330.5    0.27     14,301     4,264.2      0.24     71.91


                                                   29
                      Supply and Demand Survey on Food and Beverages – Uzbekistan




     To foreign
                                     56         31.9                14.5        74.3             233.15
     countries
     Latvia                                                            3            6.9
     Lithuania                        1          1.3                   3            6.8          512.88
     The
                                                                     21         18.5
     Netherlands
     Pakistan                        10          7.7                 31         17.0             222.75
     Poland                                                          49          7.2
     Turkey                           8          2.0                 28         10.6             530.15
     Other foreign
                                     37         20.3                 10             7.4           35.41
     countries
     To CIS
                                 15,426      5,898.7             14,156      4,190.3              71.04
     countries
     Russia                      14,419      5,373.2             13,336      3,902.6              72.63
     Other CIS
                                  1,009        525.5                820        287.7              54.74
     countries

12   Oil seed,
     oleaginous
     fruits;
     miscellaneous
     grain, seed,
     fruit, etc.
     Total             Ton       39,997     27,446.8     1.25    26,153     10,997.7      0.62    40.07
     To foreign
                                 21,905     17,152.3             10,804      5,008.6              28.20
     countries
     Afghanistan                    324        167.7                630        252.1             150.33
     France                         675        292.3                713        343.5             117.51
     Korean
                                    456        198.3               1017        382.9             193.11
     Republic
     Pakistan                     2,238      1,550.2               2,066     1,027.6              66.28
     Turkey                      16,215     13,901.1               4,701     2,226.7              16.02
     USA                            519        134.6                 602       301.5             224.01
     Other foreign
                                  1,437        908.2             15,349      5,989.1              58.18
     countries
     To CIS
                                 18,093     10,294.5             15,349      5,989.1              58.18
     countries
     Azerbaijan                     242        244.0                598        319.6             142.70
     Russia                      13,961      8,054.2             10,884      4,268.8              53.00
     Ukraine                      2,656      1,296.1              2,661        983.1              75.85
     Other CIS
                                  1,234        720.2               1,206       417.7              57.99
     countries

20   Preparations:
     of vegetables,
     fruit, nuts or
     other parts of
     plants
     Total             Ton       31,398     27,654.9     1.26    36,698     22,371.9      1.27    80.90
     To foreign
                                    757        767.7                637             325           42.33
     countries
     Afghanistan                                                     37         41.5
     Bulgaria                                                        34         16.7
     Germany                        150        162.5                 50         25.4              15.63
     Korean
                                      2          3.9                 15         21.0             532.99
     Republic
     Poland                         450        412.7                500        218.5              52.94


                                                  30
                          Supply and Demand Survey on Food and Beverages – Uzbekistan



        Other foreign
                                         155        188.6                        1        1.9                        1.00
        countries
        To CIS
                                      30,640      26,887.2                36,061     22,046.9                       82.00
        countries
        Russia                        28,259      25,117.4                32,898     20,114.6                       80.08
        Other CIS
                                       2,381      1,769.8                  3,162      1,932.3                      109.18
        countries

22      Beverages,
        spirits and
        vinegar
        Total               Ton        9,809      5,176.5         0.24    11,155      4,692.4          0.27         90.65
        To foreign
                                          78         18.8                    15           0.1                        0.32
        countries
        Turkey                            57          9.5                    12           0.1                        0.63
        Other foreign
                                          21          9.3                        3        1.9                        1.00
        countries
        To CIS
                                       9,731      5,157.7                 11,154      4,692.3                       90.98
        countries
        Kazakhstan                     1,905      1,200.4                  1,661      1,347.3                      112.23
        Kyrgyzstan                       471        153.4                 601392        245.1                      159.78
        Russia                         5,967      3,320.5                  8,369      2,741.6                       82.56
        Tadjikistan                  479,543        270.4                513,335        282.9                      104.62
        Other CIS
                                         933        212.9                   141          75.5                       35.45
        countries


2. Trend of food and beverages export to ECO member countries

  Distribution of products export of the Republic of Uzbekistan to ECO member countries
                                  for the period 2000-2001.

                                                                 2000                           2001
 HS         Product position        Measurement                                                                   2001/2000
                                       unit                    Value,                                Value,
codes           name                              Quantity                           Quantity                       in %
                                                            thousand US                           thousand US
                                                    Afghanistan
              Total                                           10,813.7                                 10,897.8    100.8

         Edible vegetables and
 07                                    Ton           1,144               296.7           2.74           1,435.2    483.7
         certain roots and tubers
         Leguminous
         vegetables, shelled or
0708                                                         -               -           4.00             144.9        -
         unshelled, fresh or
         chilled
         Dried leguminous
         vegetables, shelled,
0713                                                 1,144               296.7          47.82           1,290.3    434.9
         whether or not skinned
         or split

         Edible fruit and nuts;
 08      peel of citrus fruit and                       82               144.1         446.00             706.0    489.9
         melons

         Oil seed, oleaginous
 12      fruits; miscellaneous                         324               167.9         631.00             252.0    150.1
         grain, seed, fruit, etc.




                                                         31
                        Supply and Demand Survey on Food and Beverages – Uzbekistan




       Preparations: of
 20    vegetables, fruit, nuts                       -                 -         37      41.5            -
       or other parts of plants
                                                 Azerbaijan
            Total                                                 1,975.3              1,882.7     95.3
       Edible vegetables and
 07                                 Ton            213               37.9      1,059    197.8     521.9
       certain roots and tubers
       Potatoes fresh and
0701                                Ton             34                5.7          -         -           -
       frozen
       Onions, shallots,
       garlic, leeks and other
0703                                Ton            127               20.2        26      11.7      57.9
       alliaceous vegetables
       fresh or chilled
       Dried vegetable cut,
       sliced, broken or in
0712                                Ton             40               11.2          -         -           -
       powder, but not further
       prepared
       Dried leguminous
       vegetables, shelled,
0713                                Ton                      -             -   1,033    186.1            -
       whether or not skinned
       or split

       Edible fruit and nuts;
 08    peel of citrus fruit and     Ton             48               50.3       162      81.7     162.4
       melons

       Oil seed, oleaginous
 12    fruits; miscellaneous        Ton            243             224.1        600     319.6     142.6
       grain, seed, fruit, etc.
       Ground-nuts, not
       roasted or otherwise
1202                                Ton            212             148.1        468     235.5     159.0
       cooked, whether or not
       shelled or broken
       Seeds, fruit and spores,
1209   of a kind used for           Ton             29               75.4       127      82.7     109.7
       sowing
                                                    Iran
            Total                                                69,207.9              77,947     112.6

       Edible vegetables and
 07                                 Ton             20                6.8       285      96.2    1,414.7
       certain roots and tubers

       Live trees and other
       plants; bulbs, roots and
 08                                 Ton                  -              -        32      39.9        -
       the like; cut flowers
       and ornamental foliage

       Oil seed, oleaginous
 12    fruits; miscellaneous                       306             233.1        260     146.6      62.9
       grain, seed, fruit, etc.




                                                    32
                     Supply and Demand Survey on Food and Beverages – Uzbekistan




                                             Kazakhstan
       Total                   Ton                        90,184                   51,255.7    56.8

     Edible vegetables
07   and certain roots         Ton          14,885         2,045       7,335         995.3     48.7
     and tubers

     Edible fruit and
08   nuts; peel of citrus                    6,049        1,108.2      3,838         657.6      0.6
     fruit and melons

     Oil seed, oleaginous
     fruits;
12                                             591         224.8         700         122.1     54.3
     miscellaneous grain,
     seed, fruit, etc.

     Preparations: of
     vegetables, fruit,
20                             667           337.5            6.0        766         431.8    127.9
     nuts or other parts
     of plants

     Beverages, spirits
22                                               -        1,200.6           -       1,347.6   112.2
     and vinegar
                                              Kyrgyzstan
        Total                                          37,125.5                    39,070.5   105.2

     Edible vegetables
07   and certain roots                         425           44.7        165           22.4    50.1
     and tubers

     Edible fruit and
08   nuts; peel of citrus                      132           20.6         12            0.9     4.4
     fruit and melons

     Oil seed, oleaginous
     fruits;
12                                              51            9.2         36           22.8   247.8
     miscellaneous grain,
     seed, fruit, etc.

     Preparations: of
     vegetables, fruit,
20                                              49            5.4         45           32.8   607.4
     nuts or other parts
     of plants

     Beverages, spirits
22                                               -         153.5            -        244.9    159.5
     and vinegar
                                               Pakistan
        Total                                             1,975.3                   1,564.4    50.7
     Edible vegetables
07   and certain roots         Ton              39           36.2           -             -       -
     and tubers

     Edible fruit and
08   nuts; peel of citrus                       70           33.1          49          24.7    74.6
     fruit and melons




                                                 33
                     Supply and Demand Survey on Food and Beverages – Uzbekistan




     Oil seed,
     oleaginous fruits;
12   miscellaneous                          2,243         1,550.7     2,068    1,027.3      66.2
     grain, seed, fruit,
     etc.
                                              Tajikistan
        Total                                          93,889.3               67,328.5      71,7

     Edible vegetables
07   and certain roots         Ton            356          237.0      1,400        288.5   121.6
     and tubers

     Edible fruit and
08   nuts; peel of citrus                     443          465.2       253         112.1    24.1
     fruit and melons

     Oil seed,
     oleaginous fruits;
12   miscellaneous                             45            30.7         -            -       -
     grain, seed, fruit,
     etc.

     Preparations: of
     vegetables, fruit,
20                                              7             9.0        1           2.1    21.2
     nuts or other parts
     of plants

     Beverages, spirits
22                                        479,543          270.6    513,335        282.9   104.5
     and vinegar

                                                Turkey
        Total                                            94,207.0             75,292.6      79.9

     Edible vegetables
07   and certain roots                      2,566         1,328.0     2,025         638     48.0
     and tubers

     Edible fruit and
08   nuts; peel of citrus                   2,834         2,858.0     1,492    1,231.3      43.1
     fruit and melons

     Oil seed,
     oleaginous fruits;
12   miscellaneous                         16,321        13,905.8     4,717    2,227.7      16.0
     grain, seed, fruit,
     etc.

     Beverages, spirits
22                                                            9.5         -          0.1     1.1
     and vinegar




                                                 34
                         Supply and Demand Survey on Food and Beverages – Uzbekistan




                                               Turkmenistan
            Total                                         54,407.7               3,7251.8       68.5
         Edible vegetables
    07   and certain roots         Ton            976        112.3        541          215.8    0.02
         and tubers

         Edible fruit and
    08   nuts; peel of citrus      Ton            145         10.7          6            3.1    29.0
         fruit and melons

         Oil seed,
         oleaginous fruits;
    12   miscellaneous             Ton             26         28.1           -             -       -
         grain, seed, fruit,
         etc.

         Preparations: of
         vegetables, fruit,
    20                             Ton             10          8.2         14           10.4   126.8
         nuts or other parts
         of plants

         Beverages, spirits
    22                             Ton                       213.1                      75.3    35.3
         and vinegar

Though, as a whole the export volumes of food and beverages have decreasing trend, but the
table above shows a trend of significant increase in food and beverages export to ECO
member countries.

3. Reasons for impressive or unimpressive export to participating countries

According to the results of the survey, the reason for the impressive increase of exports to
ECO member countries are due to:
    Demand for products;
    Absence of tariff and non-tariff customs barriers:
      Signed agreements on trade-economic cooperation with providing MFN status;
      Signed agreement on the creation of a free trade zone.

    Precluding of producers-exporters of Uzbekistan from customs duty charges on export;
    Good transport infrastructure between Uzbekistan and other ECO member countries.

4. Export prices

There is no “minimum export price system” in the Republic of Uzbekistan. At the same time
as per the law “About customs tariffs” a system of identification of customs costs of the
products exported was devised to avoid under-invoicing.




                                                     35
                     Supply and Demand Survey on Food and Beverages – Uzbekistan




           Prices for exporting products manufacturing by the enterprises of the
      “Uzmevasabzavotuzumsanoat-holding” Holding Company in terms of EXW

     Product name                         Packing                  Price for unit, US$
                                                  Vegetable cans
                                                    1. Tomato
                             Tin plate, weight 9.2 Kg              0.4
1. Tomato paste with
                             Aseptic bag                           0.45
   dried substances 30%
                             Glass bottle (1liter)                 0.5
2. Juice tomato, natural     Glass bottle (1liter)                 0.35
                             Glass bottle (0.33 liter)             0.35
                             Glass bottle (0.55 liter)             0.47
3. Ketchup                   Plastic (0.9)                         0.6
                             Plastic (0.5)                         0.4
                             Plastic (0.25)                        0.3
                                                     2. Pickles
1. Cucumber pickled,
                             Glass bottle (1liter)                 0.3
   entire
                             Glass bottle (1liter)                 0.28
2. Cucumber pickled, cut
                             Glass bottle (0.65 liter)             0.25
                             Glass bottle (1 liter)                0.28
3. Tomatoes pickled, red     Glass bottle (2 liter)                0.4
                             Glass bottle (3 liter)                0.6
4. Tomatoes pickled,         Glass bottle (1 liter)                0.25
   green                     Glass bottle (2 liter)                0.38
5. Pepper pickled            Glass bottle (1 liter)                0.4
6. Garlic pickled            Glass bottle (1 liter)                0.55
                             Glass bottle (1 liter)                0.33
7. Sugar-beet pickled
                             Glass bottle (0.65 liter)             0.28
                             Glass bottle (1 liter)                0.25
8. Cabbage pickled
                             Glass bottle (3 liters)               0.55
                             Glass bottle (1 liter)                0.27
9. Cabbage piquant
                             Glass bottle (3 liters)               0.57
10. Salad “Achchik-
                             Glass bottle (1 liter)                0.3
    chuchuk”
11. Salad “Yangilik”         Glass bottle (1 liter)                0.3
                             Glass bottle (1 liter)                0.3
12. Assortment “Vesna”
                             Glass bottle (0.65 liter)             0.27
                                                     3. Natural
1. Cucumber canned,          Glass bottle (1 liter)                0.35
   entire                    Glass bottle (3 liters)               0.6
                             Glass bottle (2 liters)               0.4
2. Cucumber canned, cut
                             Glass bottle (3 liters)               0.55
                             Glass bottle (1 liter)                0.3
                             Glass bottle (2 liters)               0.45
3. Tomato canned
                             Glass bottle (13 liters)              0.65
                             Glass bottle (0.65 liter)             0.28
4. Tomatoes in tomato
                             Glass bottle (1 liter)                0.38
   sauce
                             Glass bottle (0.65 liter)             0.3
5. Grapes leafs
                             Glass bottle (1 liter)                0.35
                             Glass bottle (0.65 liter)             0.3
6. Sugar-beet garnish
                             Glass bottle (1 liter)                0.32
                             Glass bottle (0.65 liter)             0.3
7. Carrot garnish
                             Glass bottle (1 liter)                0.33




                                                      36
                    Supply and Demand Survey on Food and Beverages – Uzbekistan




                              Glass bottle (1 liter)              0.4
8. Cucumbers in tomato
                              Glass bottle (2 liters)             0.6
   sauce
                              Glass bottle (3 liters)             0.7
                                                   4. Snacks
                              Glass bottle (0.65 liter)           0.3
1. Calf amateur
                              Glass bottle (1 liter)              0.38
2. Aubergine pate             Glass bottle (1 liter)              0.38
                                                   5. Dinner
1. Shchi from fresh
                              Glass bottle (1liter)               0.35
   cabbage
2. Borsch from fresh
                              Glass bottle (1 liter)              0.35
   cabbage
3. Rassolnik                  Glass bottle (1 liter)              0.35
                                                  6. Compote
1.   Apple                    Glass bottle (1 liter)              0.38
2.   Cherry                   Glass bottle (1 liter)              0.35
3.   Plum                     Glass bottle (1 liter)              0.38
4.   Apricot                  Glass bottle (1 liter)              0.45
5.   Quince                   Glass bottle (1 liter)              0.35
                                                     7. Jam
1.   Apple                    Glass bottle (1 liter)              0.6
2.   Quince                   Glass bottle (1 liter)              0.6
3.   Plum                     Glass bottle (1 liter)              0.6
4.   Apricot                  Glass bottle (1 liter)              0.65
6.   Pumpkin                  Glass bottle (1 liter)              0.57
7.   Peach                    Glass bottle (1 liter)              0.66
                                                    8. Juices
1. Apple                      Glass bottle (1 liter)              0.35
2. Quince                     Glass bottle (1 liter)              0.36
                              Glass bottle (0.65 liter)           0.42
3. Pomegranate
                              Glass bottle (0.5liter)             0.4
4. Grapes                     Glass bottle (1 liter)              0.35
5. Apple with pulp            Glass bottle (1 liter)              0.35
6. Plum with pulp             Glass bottle (1 liter)              0.36
7. Peach with pulp            Glass bottle (1 liter)              0.45
8. Apricot with pulp          Glass bottle (1 liter)              0.45
9. Pumpkin beverage           Glass bottle (1 liter)              0.3
10. Puree made of
    apricots, quince, plum,   Aseptic bags 200 Kg each            0.36
    apple, standard 12%
11. Concentrated juices
    Apple                     Tank-track                          0.65
    Grapes                    Tank-track                          0.9
                                              9. Dried products
1.  Borsch set                               1 Kg                            0.7
2.  Cabbage dried                            1 Kg                 0.7
3.  Potato dried                             1 Kg                 0.75
4.  “Shigani” raisins                        1 Kg                 0.75
5.  Onion died                               1 Kg                 1.25
6.  Carrot dried, red                        1 Kg                 0.75
7.  Carrot dried, yellow                     1 Kg                 0.70
8.  Apples dried (by
                                             1 Kg                 0.45
    order)
9. Dried compote
                                             1 Kg                 0.55
    mixture
10. Pear dried                               1 Kg                 0.40
11. Dried apricots (by
                                             1 Kg                 1.05
    order)
                                                       37
                         Supply and Demand Survey on Food and Beverages – Uzbekistan




                                              10. Wine products
  1. Wine dried                             0.7 liter                 0.50
  2. Wine fortified
                                            0.7 liter                 0.55
     ordinary
  3. Wine dessert, fine
                                            0.7 liter                 0.65
     wine
  4. Wine dessert ordinary                  0.7 liter                 0.65
                                                   11. Brandy
  1.   “Uzbekiston”                            0.5                    6.70
  2.   “Ankhor”                                0.5                    5.20
  3.   “Shodlik”                               0.5                    4.50
  4.   “Sogdiana”                              0.5                    1.00
  5.   “Afrosiab”                              0.5                    1.05
  6.   “Samarkand”                             0.5                    1.45
  7.   “Halkabad”                              0.5                    2.60
  8.   “Shohrud” Brandy                        0.5                    1.45
  9.   “Samarkand” Balsam                      0.5                    1.70
                                                12. Champagne
  1.   Dried                                  0.75                    1.15
  2.   Semi-dried                             0.75                    1.15
  3.   Semi-sweet                             0.75                    1.15
  4.   Sweet                                  0.75                    1.15
  5.   “Oltin favvora”                        0.75                    1.20
                                             13. Wine materials
  1. Fortified, Portwine
                                           1 deciliter                3.0
     kind
  2. White dried                           1 deciliter                2.5
  3. Wine dessert,
     ordinary, “Kagor”,
                                           1 deciliter                7.0
     “Muscat”, “Tokay”
     kind
  4. Wine dessert, fine
     wine “Uzbekiston”,
     “Aleatika”, “Gullya-                  1 deciliter                7.0
     Kandoz”, “Shirin”,
     “Farkhod” kind


5. Nature of export plans markets and promotional measures

After independence, the Republic has got an opportunity for entering foreign markets
independently, thereby expanding foreign trade flows of Uzbekistan.

Traditional transportation routes of Uzbek export-import cargoes are mainly through the
territories of Kazakhstan and Russia, which dictate their terms of transit intersection, that
unfavorably influences the cost of transportation.




                                                         38
                     Supply and Demand Survey on Food and Beverages – Uzbekistan




The Republic is exploring alternative, more effective and economical variants of
transportation for expanding foreign relations of Uzbekistan in three main directions:

   Western direction – through Trans-Caucasian corridor to the ports of the Black Sea
    (Uzbekistan – Turkmenistan – Azerbaijan – Georgia) - ;
   Eastern direction – via Kyrgyzstan to Chinese ports (to the Yellow and Eastern-Chinese
    Seas) - ;
   Southern direction – through Turkmenistan, Iran to the Indian Ocean - .

Uzbekistan is linked through direct airlines practically with all countries of the World. At
present, the length of railways amounts to 5 000 km, the density of railway network of the
Republic is the most saturated in Central Asia.

The role of route transportation is increasing mainly in international passenger and cargoes
transportation. The further development of transport infrastructure during the next 5 years will
connect all provinces and regions of the Republic.

The aim of all export-oriented economic policies is to eliminate the limiting factors and to
provide maximum benefit for export.


                         I.      Export policies and stimulation
1. Export privileges provided by the Government

The customs duties on export for all kind of products (works, services) in accordance with the
Decree of the President of the Republic of Uzbekistan “About additional measures designed
to stimulate export of goods (works, services)” № UP-1871, dated October 10, 1997, were
cancelled from the 1st November 1997.

2. Tax benefit on exporting

In accordance with the Decree of the President of the Republic of Uzbekistan of June 5, 2000
“About additional measures to stimulate the manufacturers of export products” income of
enterprises-exporters under all types of ownership derived form the export of goods (works,
services) of own production for freely convertible currency were exempted from the payment
of income (profit) tax.

In addition to this, from July 1, 2000 enterprise-exporters adopted a procedure for payment of
property tax depending on export share of goods (work, services) of own production in total
sales volume:
   if export share comes to 25-50%, the established rate of property tax is reduced by 50 per
    cent;
   if export share comes to 50% and over, property tax is not levied.




                                                 39
                    Supply and Demand Survey on Food and Beverages – Uzbekistan




Also in accordance with the Resolution of the Cabinet of Ministers of the Republic of
Uzbekistan of 22 June 2001 “About measures for further liberalization of currency market”
from 1 July, 2001:
   Micro-firms, small and medium enterprises were exempted from the compulsory sale of
    currency income, derived from export of own production goods (works, services);
   Foreign companies and firms are provided with exclusive rights to buy definite kinds of
    speculative products in guaranteed volumes for free convertible currency on auction base;
   Buying and selling of foreign currency is carried out on free rate of the exchange market
    on the following operations:
       Compulsory sale of exporters of 50% currency income;
       Import of equipment, components, raw materials and services;
       Attracting of new foreign credits;
       Repatriation of profit, dividends and other incomes of foreign investors;
       Business travelling expenses.
   Enterprises buying foreign currency on free rate of the exchange market are exempted
    from paying 5% duty levied for buying using free converting currency.

3. Export policy, regulations, procedures and their effectiveness

The effectiveness of operating a purposeful policy of export regulation in Uzbekistan is
defined by a gradual reduction of foodstuff raw materials export share and increasing of
volumes and share of ready-made food product exports with high added value.


                                  J.      Export channels
1. Involvement of manufacturers in direct exports

The policy of export regulation in Uzbekistan is oriented toward encouraging manufacturers
(including those in the foodstuffs sector) to produce competitive export-oriented products and
to increase the export volumes of products of own manufacture. There are a number of
preferences and privileges for producers-exporters. (Look at above in the chapter “Export
policies and stimulation”).

2. Role of merchant-exporters (trading companies)

At the same time a number of specialized trading companies-exporters operate, which carry
out trading in foodstuffs and beverages products (on approved quotas). Some of merchant
exporters are listed below:

Specialized companies of the Ministry for foreign economic relations of the Republic of
Uzbekistan:
   State joint-stock company “Uzprommashimpex”;
   State foreign trade joint-stock company “Uzmarkazimpex”;
   State foreign trade joint-stock company “Uzmarkazsanoatexport”;
   State foreign trade joint-stock company “Innovatsia”.


                                                40
                    Supply and Demand Survey on Food and Beverages – Uzbekistan




Coordinating Organizations and Associations:
   Association “Dekhqon va fermer khujaliklari”;
   Holding company “Uzmevasabzabotuzumsanoat-holding”;
   Governmental Joint Stock Company “Uzbeksavdo”;
   Association “Yogmoytamakisanoat”;
   Association “Oziqovqatsanoat”.

3. Perspectives of stimulation of export operations of small and middle size enterprises

Special attention is devoted to encouraging small and middle sized business to export
products (including in textile sector) and increase their export opportunities. (Look at above in
the part “Export privileges provided by the government” of the chapter “Export policies and
stimulation”).


                                   K.      Transportation
1. Availability, suitability of transportation (auto, railway, air and sea transport) for
   export to member countries

The geographical location of the Republic of Uzbekistan in Central Asia is conditioned by the
special necessity for the country to develop the transport corridors and their integration into
the World transport communication systems with the purpose of reaching the seaports by the
shortest route. In this connection, Uzbekistan is extremely interested in developing alternative
short routes of delivering of their foreign trade cargoes to the World market. (See attached
Annex I “Euroasian Transport Corridors”).

According to the results of the survey “Uzmevasabzavotuzumsanoat-holding” Holding
Company uses the railway transport route for the transportation of exported products.

Insufficient amount of refrigerator machines decreases the transportation of the products of
“Uzbeksavdo” Joint Stock Company, as well as the absence of intergovernmental agreements
with some countries of European Community decreases the entry of uzbek cargo machines.

Uzbekistan possesses a good transport infrastructure, which includes the systems of railway,
auto, air, pipeline and river transports.

The efforts of Government of the Republic is directed towards development and improvement
of the Great Silk Road, which intersects the territory of Uzbekistan and connects China, the
Central Asian countries, Iran and Turkey with the Europe.

The direction the following transport corridors are a part of the “the Great Silk Road”:

Uzbekistan-Turkmenistan-Iran-Turkey, which is operational, as a result of opening the
300 kilometer route Tedzhen-Serakhs-Meshkhed.




                                                41
                   Supply and Demand Survey on Food and Beverages – Uzbekistan




Tashkent-Charjou-Tedzhen-Seraks-Meshkhed-BandarAbbas over a lenth of 4,122 km has
essential importance for Uzbekistan. Estimated capacity of this route is 5.3 million Mt per
year.

The operation of this track has reduced the distance from the Chinese Yellow Sea ports to
Istanbul by 4,500 km.

The branch line Tedzhen-Serakhs-Meshkhed (Iran), the building of which was completed on
May 1996 connects the railways of China with the European railway system through the
Central-Asian countries.

Uzbekistan-Kyrgyzstan-China, is also one of alternative routes, linking Tashkent-Almata-
Taldikurgan-Drujba-Alashankou-Urumchi and further to Chinese ports Lyanyungan, Tsindao
and Shanghai.

Uzbekistan-Kyrgyzstan-China is represented as historical highway connecting Andijan-Osh-
Saritash-Irkeshtam-Kashgar. The length of the route is 578 km.

The European Union has brought the Central Asian Republics under the TACIS program, as
TRACECA (Transport corridor Europe-Caucasus-Asia) to link Europe and Central-Asian
region with a transport corridor, reviving one of the routes of “Great Silk Road”.

“The agreement of coordination of activity of railways” and “The agreement on co-operation
in the sphere of regulation of transit transportation between countries-members”, were signed
on May 13, 1996 in Serakhs by the Presidents of Azerbaijan, Georgia, Turkmenistan and
Uzbekistan.


                                     L.      Packaging
According to the requirements of buyers packaging of products can meet the international
standards.


                   M.      Export insurance, credits and finance
With the purpose of providing domestic exporters operating in international capital,
commodity and service markets with insurance cover, “On insurance” and the Resolution of
the Cabinet of Ministers of the Republic of Uzbekistan N° 167, dated 21 April 1998 “ On
measures designed to provide domestic exporter with insurance cover” export contracts,
which stipulate deferment of payment and are not provided with payment guarantees against
political and commercial risks from first-class banks, are insured by the banks-residents and
insurance companies of the Republic of Uzbekistan.

On the basis of the above-mentioned legislative acts, insurance agencies implement insurance
on commercial and political risks on export operations.




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                    Supply and Demand Survey on Food and Beverages – Uzbekistan




                                 N.      Trade promotion
There are governmental and non-governmental trade promotion organizations as well as
specialized divisions and companies in the Associations of the sector, the main purpose of
which is:

   Creation of infrastructure on information services in foreign economic activities;
   Promotion of export-oriented products of manufactures and exporters of the Republic of
    Uzbekistan to the World market;
   Assisting local and foreign importers.

List of main trade promotion organizations of the Republic of Uzbekistan:

   Ministry for Foreign Economic Activity of the Republic of Uzbekistan;
   Uzbek Foreign Economic Information and Commercial Center “Uzincomcenter” of the
    Ministry for Foreign Economic Relations of the Republic of Uzbekistan;
   Trade Point Tashkent (according to UNCTAD Program);
   Trade Exhibition Center of the Republic of Uzbekistan “Uzexpocenter” of the Ministry for
    Foreign Economic Relations of the Republic of Uzbekistan;
   Marketing agency “Uzbekinvest Eximinform” of insurance company “Uzbekinvest”;
   Business Communication Center (BCC) and others.

Non-governmental organizations such as “Pragma” USA, “USAID” USA, “GTC” Germany,
in the field of products promotion render free services (advertising and search of partners
abroad). They organize negotiations with potential foreign buyers, seminars, training
programs, provide gratis participation in trade fairs, in and out of the country, represent the
specialists and consultants in the field of marketing and management.

The government is operationalizing a number of measures and events in the sphere of foreign
trade and foreign economic relations, such as:

   Publication of investment and business guides, as well as advertising catalogues and
    others, by circulating them among the foreign potential buyers-importers (for instance, the
    catalogue “Producers and Exporters of Uzbekistan 2002-2003” was published by the
    Ministry for Foreign Economic Relations);
   Organization of specialized exhibitions and trade fairs in the country, as well as providing
    access for participation of representatives of local enterprises in similar exhibitions (for
    instance, the exhibitions of foodstuff products “Inter-FOOD” and “Agro-FOOD” are
    annually organized in Tashkent);




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                    Supply and Demand Survey on Food and Beverages – Uzbekistan




   Organization of specialized seminars and conferences to provide the meeting between
    sellers and buyers;
   Organization of special training courses on foreign economic activity, and others (for
    instance, training courses on the base of “Uzincomcenter” on the basis of foreign economic
    activity, international marketing, management, international business, export-import
    operations);
   Organization of special trade missions (meeting of potential sellers and buyers) to several
    foreign countries with the assistance of trade advisors of Embassies of the Republic of
    Uzbekistan in the foreign countries.


                      O.      Conclusions and recommendations
The results of this survey show that the food and beverages sector of Uzbekistan has a large
potential not only for increasing export of food raw materials, but also for increasing
production of manufactured products (based on deep processing of local raw materials) with
high added value and potential for export.




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Supply and Demand Survey on Food and Beverages – Uzbekistan




   Part II: Demand Survey




                            45
Supply and Demand Survey on Food and Beverages – Uzbekistan




                            46
                       Supply and Demand Survey on Food and Beverages – Uzbekistan




                                 I.         INTRODUCTION

This report reflects the results of a demand survey covering the food and beverages sector of
the Republic of Uzbekistan (in the frames of the South-South trade promotion programme of
the International Trade Center UNCTAD/WTO (ITC) and the project of the Economic
Cooperation Organisation (ECO) on “Expanding Intra-Regional Trade”), which includes the
following product groups:
     N°         HS code                                       Product name
     1.           02           Meat and edible meat offal
     2.           03           Fish & crustaceans, mollusc & other aquatic invertebrate
     3.           04           Dairy products: bird’ eggs; natural honey; edible product nes
     4.           09           Coffee, tea, mate and spices
     5.           10           Cereals
     6.           11           Products mill industry; malt; starches; inulin; wheat gluten
     7.           15           Animal and vegetable fats and oils and their cleavage products; etc.
     8.           16           Prepared meat, fish or crustaceans, molluscs, etc.
     9.           17           Sugar and sugar confectionery
     10.          18           Cocoa and cocoa products
     11.          19           Preparations of cereals, flour, starch or milk, pastry cooks’ products
     12.          21           Miscellaneous edible preparations



A.         Significance of the product to the economy and foreign trade sector of
                                     the country
As it is known the food and beverages sector of the Republic of Uzbekistan has a significant
role in the national economy. The presence of own powerful resource base provides the
country with the opportunity of step-by-step arrangement and increasing of production of
export-oriented and import-substituting products.

Share of import of the food and beverages, is not considerable and totals approximately
1/10 part from the total import volume of the country, which was 10,8% in 2001.

Such decreasing tendency of import volumes of these food products is due to restructuring of
purchase of grain and grain products from foreign countries, as well as increasing of food and
beverages production in the republic.

As a result, less products of mill industry, ready-made grain products, meat and meat offal,
confectionery, and other food products are imported now.




                                                     47
                     Supply and Demand Survey on Food and Beverages – Uzbekistan




                         B.      Specific objectives of the survey
The main purpose of this survey is the analysis of the situation, conditions, possibilities and
the prospects of foodstuff products and beverages of the Republic of Uzbekistan and
preparation of competitive information report on this base, which is essential for potential
foreign suppliers and sellers of these products in order to establish new trade relations.

The survey was done based looking at following areas:
   Collection, analysing of initial data on the sector as a whole and on separate enterprises;
   Identification of opportunities (advantages and disadvantages) and analysis of conditions
    of foodstuffs market;
   Definition of strategy, tendency and prospects of market development;
   Presentation of recommendations for entering the market and on investment opportunities.


                               C.      Methodology of survey
The survey was carried out through the collection of initial data for conducting of the survey
by using direct marketing method (questionnaire and interviewing) with producers and
importers of the sector. Information materials were received from the associations, co-
ordinating of branches of foodstuffs sector, as well as from the authorised state bodies.
Collected information was systematised and analysed by using of estimation and
mathematical calculation methods. During the preparation of the survey, databases of the
Ministry for Foreign Economic Relations of the Republic of Uzbekistan and “Uzincomcenter”
were also used.




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                    Supply and Demand Survey on Food and Beverages – Uzbekistan




                II. SUMMARY OF CONCLUSIONS AND
                       RECOMMENDATIONS

There is a sufficient demand on the products, which are included in the survey. The number of
importers and traders is quite relevant and have their own share in the market of Uzbekistan in
spite of the Government policy is giving the priority to stimulate the production (based on
deep processing of domestic raw materials) of export-oriented and import-substituted
products with high added value.

It is necessary to note that there are no special limitations and prohibitions concerning import
of food and beverages. At the same time, there are some preferences and privileges of food
products import in accordance signed bilateral and multilateral trade-economical cooperation
agreements with different countries.

One of the reliable methods for entering the market of Uzbekistan is the movement of
production capacities and establishment of new production on the territory of Uzbekistan by
creation of export-oriented and import-substituted products manufacture based on deep
processing of domestic raw materials.



      III.         MAIN PART OF DEMAND SURVEY REPORT

                                     A.      Market size
1. Domestic industry

Food and beverages are produced by the enterprises of “Uzyogmoytamakisanoat” Association
(vegetable oil, soap, mayonnaise), “Dekhqon va fermer khujaliklari” Association,
“Oziqovqat” Association, “Uzbeksavdo” State Joint Stock Company, “Uznonmakhsulot”
State Joint Stock Company (bread, flour, and flour products), “Uzgushtsanoat” (meat, meat
products, milk and dairy products), “Uzbaliq” Corporation (fish), and other non-governmental
and private enterprises of Uzbekistan.

“Uzgushtsanoat” Association includes 22 meat-processing and more than 150 stock-raising
holdings on cattle fattening up.

Financial Investment Company, Association of foreign economic activity, a number of firms
dealing with export and import transactions, work under the “Uzgushtsanoat” Association.
There are 6 joint ventures with foreign capital on production of juices, beverages, ice cream
and meat cans. Other 3 ones are on the stage of organization, on production of: yogurt and
other dairy products, babies nutrition, small polyester and polypropylene tare for products
packaging.




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                    Supply and Demand Survey on Food and Beverages – Uzbekistan




“Uzyogmoytamakisanoat” Association includes 19 oil and fat enterprises, experimental and
mechanical plant on production of non-standard equipment and spare parts, 2 private firms,
4 joint ventures, and a number of non-industrial organizations, which specialize on project,
construction and installation works, as well as service providing. Production is based on
processing of local agricultural raw materials: technical cotton seeds, pit and seed raw
material, tabacco, soya bean, etc. The major kinds of products are: refined oil, household and
toilet soap, margarine products, glycerine, etc.

Association realises modernisation and technical upgradation of enterprises, attraction of
foreign investments. New Joint Ventures on production of new kinds of products: shampoo,
edible aromatic supplements, spirit, spices packing, mineral water bottling are being
established.

      (a) Production volume of some               beverages     and    foodstuff   products   of
          “Oziqovqatsanoat” Association

Sugar is produced on “Horazm shakar” Joint Stock Company of “Oziqovqatsanoat”
Association from Sugar-beet and from raw sugar, which is imported from abroad. Sugar is
distributed only inside of the country, and is not exported.

Caramel with and without filling, sweets glazed or not glazed, sweets of “Assorti” kind,
chocolate, iris, dragee and others are produced from sugary confectionery wares.

Sugary wares, as well as flour confectionery wares, are produced by the enterprises of the
Association:
   “Lazzat” Joint Stock Production Association (Yangiyul city);
   “Rossi” Joint Venture (Yangiyul city);
   “Deroz” Private Trade Production Firm (Tashkent city).

“Lazzat” Joint Stock Production Association has the following capacities on production of
sugary confectionery wares:
   Caramel – 3178 ton per year -;
   Sweets in stick– 2620 ton per year -;
   Sweets of “Assorti” kind – 163 ton per year -;
   Sweets with waffle layer – 600 ton per year -;
   Sweets of “Ptiche moloko” kind – 218 ton per year -;
   Sweets of “Tryufeli” kind – 131 ton per year -;
   Sweets praline – 700 ton per year -;
   Bar of Chocolate – 80 ton per year -;
   Iris – 1465 ton per year.




                                                50
                     Supply and Demand Survey on Food and Beverages – Uzbekistan




“Rossi SA” Joint Venture has capacities on production of:
   Sweets of “Assorti” kind – 81 ton per year - .

Capacities on production of sugary wares are established on “Deroz” Private Trade
Production Firm:
   Sweets with waffle layer with productivity of 100 ton per year.

Production process consists of stages of preparation of caramel mass in vacuum-apparatus,
formation of loaf, adding the filling, labelling and packaging. The process is completely
automated.

Sweets are produced in different kinds, with bodies made of berries and fruits, with waffle
layer, with nut praline, candy, etc.

Existing production capacities are not utilized fully, because the products are produced
according to the demand.

In order to produce sweets of the highest sorts, cocoa beans, noble nuts are imported. Starched
treacle, condensed and dried milk are imported for production of caramel.

For importing of different supplements for confectionery foreign currency is required.

For production of high quality sugary confectionery, it is necessary to import annually:
   Starched treacle – 9900 ton -;
   Condensed milk – 90 ton -;
   Dried milk – 250 ton -;
   Cocoa beans – 100 ton -;
   Butter – 200 ton -;
   Nuts – 150 ton -;
   Coconut oil – 90 ton.

       (b) Factors limiting the production output

As the conducted survey shows the major factors limiting the production of food and
beverages sector are followings:
   Being not provided with raw materials for full load of production capacities;
   Deterioration of main technological equipment park;
   Shortage of working capital.




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                      Supply and Demand Survey on Food and Beverages – Uzbekistan




2. Imports

       (a) Import of food and beverages for the period 1997-2001 (in thousand US$)

   HS
                    Product name                1997      1998        1999          2000     2001
  code

  02      Meat and edible meat offal             84425    10364        61014         16701    6768


  03      Fish & crustaceans                    1094,9       920        456,5         214     209,6

          Dairy products: bird’ eggs; natural
  04                                             46540    39254        31775         21485    12491
          honey; edible product nes.

  09      Coffee, tea, mate and spices           60016    24646        25625         13576    16964


  10      Cereals                               184970   142093        12641         78972    66963

          Products mill industry; malt;
  11                                             51215    27911        34407         26744   9958,7
          starches; inulin; wheat gluten
          Animal and vegetable fats and oils
  15                                            108768    33813        27117         23850    19002
          and their cleavage products; etc.
          Prepared meat, fish or crustaceans,
  16                                             17969    5904,5       16120        5956,4   2864,5
          molluscs, etc.

  17      Sugar and sugar confectionery         156222   123453       100174         97375   129607


  18      Cocoa and cocoa products              6818,1    2844,7       3828,2       3485,9   3361,9

          Preparations of cereals, flour,
  19      starch or milk; pastry cooks’          22463    6045,8       3195,7       2782,1   1507,1
          products

  21      Miscellaneous edible preparations      38111    29066        21651         18040    14609


                    Total                       778612   446315       338005        309181   284304




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                   Supply and Demand Survey on Food and Beverages – Uzbekistan




     (b) Import tendency of food and beverages of Uzbekistan for the period 1997-2001
         (in thousand US$)




As the above-mentioned diagram shows the import volumes of food and beverages have been
reduced in the last five years. The import volumes of this sector were decreased to 2.7 times
(or to 63,5%) in 2001, in comparison to 1997.

According to existing data, in 2001 the total amount of imported raw materials for production
of confectionery was 1852.1 thousand US$. Modern labelling products from Turkey and
Pakistan prevail among them.

One of the researched products is tea, which in not grown in the country, therefore 100% of
tea consumed in the republic is imported.




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                      Supply and Demand Survey on Food and Beverages – Uzbekistan




      (c) Import of tea in Uzbekistan

                                     Tea, sort                                            Volume, tons
  Tea, green (not fermented)
                                                                                                42.0
  Fast prepacked, in packages, weight max 3 Kg
  Including
  From China                                                                                    40.1

  Tea, green (not fermented)                                                                11,720.2
  In any other form
  Including:
  From China                                                                                11,275.8
  From Georgia                                                                                 239.1
  From UAE                                                                                     146.0

  Tea, black, fermented and partly fermented, fast prepacked, in packages, weight
                                                                                             5,575.1
  max 3 Kg
  Including:
  From Sri-Lanka                                                                               806.3
  From Iran                                                                                  3,947.0
  From Russian Federation                                                                      111.9
  From UAE                                                                                     411.8
  From Turkmenistan                                                                            135.0

  Tea, black, fermented and partly fermented, in other forms                                 2,942.6
  Including:
  From China                                                                                   522.5
  From Georgia                                                                                 277.0
  From Iran                                                                                  1,219.0
 * Source: The Ministry for Macroeconomics and Statistics of the Republic of Uzbekistan

The most powerful tea hanging plants and representations of the largest tea suppliers in
Uzbekistan are located in Tashkent and Samarkand; regional companies, which are located in
large cities, are the distributors of the famous firms. The leading positions on the tea market in
Uzbekistan are occupied by “Beta Algoritm” (“Beta” mark), “West land general trading”
(“Weston” mark), “Tashkent tea hanging plant” (“Tashkent” mark), “Samarkand tea hanging
plant” (green tea). The volume of Uzbek tea market was estimated 25-30 thousand tons in
2000.

According to the data of the Ministry for macroeconomics and statistics of the Republic of
Uzbekistan (without taking into account the small and medium enterprises), the major
supplier of raw tea in Uzbekistan – China, where the half of all imported products comes from
(58%). The second place in the volumes of imported tea takes Iran (25%), the third-Sri-Lanka
(4%). Besides, Uzbekistan purchases tea from UAE, Georgia, Turkmenistan, and Russian
Federation.




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                         Supply and Demand Survey on Food and Beverages – Uzbekistan




       (d) Food and beverages imports to Uzbekistan by country of origin

                                         01/01/2000-
                                                              Share   01/01/2001-31/12/2001      Share
                                          31/12/2000
                                                               in                                 in   2001/2000
№     Country name          Unit.                 Value,                          Value,
                                                              % to                               % to    in %
                                      Quantity thousand               quantity   thousand
                                                              total                              total
                                                   USD                             USD
02   Meat and edible
     meat offal
     Total                   Ton        14,418     16,701     0.65       8,027         6,767.8   0.24      40.52
     From foreign
                                        14,418   16,700.7                7,962         6,707.5             40.16
     countries
     Brazil                                111      180.1                  758           695.6             386.19
     Latvia                                 11       10.6                  517           412.1           3,880.51
     USA                                 8,941    7,803.1                6,100         5,267.6              67.50
     Other foreign
                                         5,355    8,760.4                 588           332.3                3.82
     countries
     From CIS
                                             0        0.3                   65           60.3           20,096.67
     countries
     Turkmenistan                            -            -                 65           60.2                   -
     Other CIS
                                             0        0.3                    0             0.1             46.67
     countries

03   Fish &
     crustaceans
     Total                   Ton           292      214.1     0.01        288           209.3    0.01      97.79
     From foreign
                                            84       97.9                 141             133             135.84
     countries
     Denmark                                 -          -                    1             18                  -
     India                                   5       10.5                    3            6.9              65.75
     Indonesia                               -          -                    0           18.9                  -
     Norway                                  9       11.9                   64           25.7             215.34
     USA                                     -          -                   70             51                  -
     Other foreign
                                            69       75.4                    2           12.5
     countries                                                                                             16.56
     From CIS
                                           208      116.4                 147            76.3              65.72
     countries
     Russia                                137       72.0                 147            76.3             106.10
     Other CIS
                                            71       44.2                    -               -                  -
     countries

09   Coffee, tea, mate
     and spices
     Total                   Ton        20,718   13,574.3     0.53       2,930     16,975.0      0.60     125.05
     From foreign
                                        19,863   12,811.0               28,533     16,445.6               128.37
     countries
     Sri-Lanka                             808      813.2                  889      1,308.1               160.86
     China                              11,940    7,752.3               19,891     10,988.7               141.75
     Iran                                5,478    2,083.6                5,098      2,347.9               112.68
     Other foreign
                                         1,637    2,161.8                2,655         1,800.9             83.30
     countries
     From CIS
                                           855      763.3                 797           529.4              68,36
     countries




                                                     55
                          Supply and Demand Survey on Food and Beverages – Uzbekistan




      Azerbaijan                              2        0.9                  42            73.2            8,133.38
      Georgia                               516      436.2                 609           348.3               79.84
      Russia                                218      158.0                  38            38.5               24.40
      Turkmenistan                          142      119.4                  80            55.5               46.45
      Other CIS
                                             67       48.8                   27           13.9                28.51
      countries

 10   Cereals
      Total                   Ton       584,865   78,970.9     3.09     476,203     66,962.1      2.39        84.79
      From CIS
                                        538,814   66,237.0              417,356     47,982.3                  78.44
      countries
      Kazakhstan                        537,606   65,251.3              415,826     46,748.2                  71.64
      Other CIS
                                          1,208      985.7                1,530         1,234.1             125.19
      countries

1006 Rice
     Total                    Ton           665      238.2     0.01      51,016     18,013.4      0.64    7,562.63
     From foreign
                                            605      220.2               50,835     17,950.6              8,152.32
     countries
     USA                                      2        1.8               49,960     17,647.3             1,008,413.43
     Other foreign
                                            604      218.4                 875           303.3              138.83
     countries
     From CIS
                                             60       18.0                 181            62.8              349.06
     countries
     Kazakhstan                                                            113            43,1
     Russia                                  60       18.0                  66            18.4              102.28
     Other CIS
                                                                              2             1,3
     countries

 11   Products mill
      industry; malt;
      starches; inulin;
      wheat gluten
      Total                   Ton       111,896   26,742.9     1.05      39,760         9,958.0   0.35        37.24
      From foreign
                                          8,108    3,065.4                2,854         1,294.1               42.22
      countries
      Austria                               330      165.6                 443             229              138.67
      Belgium                             2,158      831.5                 801           305.0               36.68
      Republic of Korea                     528      309.7                 704           426.0              137.55
      USA                                   284       93.3                 537           178.3              191.21
      Other foreign
                                          4,809    1,665.2                 368           155.1                 9.31
      countries
      From CIS
                                        103,787    236,776               36,907         8,663.9               36.59
      countries
      Kazakhstan                         97,793   21,920.9               34,255         7,497.1              34.20
      Russia                              1,005      327.1                1,995           821.0             251.00
      Other CIS
                                          4,989    1,429.5                 657           345.9                24.19
      countries




                                                      56
                           Supply and Demand Survey on Food and Beverages – Uzbekistan




 15   Animal and
      vegetable fats and
      oils and their
      cleavage products;
      etc.
      Total                    Ton        26,795   23,849.3     0.93      31,961     19,000.2      0.68    79.67
      From foreign
                                          19,069   18,186.0               22,981     14,611,4              80.34
      countries
      Argentina                            2,305    2,280.6                2,339         2,068.2           90.68
      Germany                              1,737    1,596.2                1,361         1,102.8           68.09
      Iran                                 2,490    1,602.5               11,227         4,904.6          306.05
      the Netherlands                      1,773    1,884.6                1,303          1,07.0           69.35
      Turkey                               1,614    1,644.0                1,318           882.3           53.67
      Other foreign
                                           9,149     9178.0                5,433         4,346.5           47.36
      countries
      From CIS
                                           7,726    5,663.3                8,979         4,388.9           77.50
      countries
      Kazakhstan                             148      177.3                1,280         1,100.9          620.80
      Russia                               2,686    2,345.8                3,415         1,848.2           78.79
      Ukraine                              3,361   30,669.0                1,454         1,212.1           3,952
      Other CIS
                                           1,531       73.3                2,830          227.6           310.31
      countries

 16   Prepared meat,
      fish or
      crustaceans,
      molluscs, etc.
      Total                    Ton         4,632    5,956.0     0.23       2,512         2,864.1   0.10    48.09
      From foreign
                                           4,231    5,561.9                2,177         2,298.4           41.32
      countries
      Canada                                 981      972.4                 919           805.1            82.79
      Italy                                2,238    2,418.0                 495           386.4            15.58
      Latvia                                 767       1.63                 694           968.7            66.18
      Other foreign
                                             335      707.7                   68          138.3            19.54
      countries
      From CIS
                                             401      394.3                 335           565.7           143.46
      countries
      Russia                                 401      394.3                 335           564.8           143.46
      Other CIS
                                               -            -                  -             0.8               -
      countries

 17  Sugar and sugar
     confectionery
     Total                     Ton       320,324   97,371.7     381      370,126    129,604.5      4.62   133.10
1701 Cane or beet sugar
     and chemically
     pure sucrose, in
     solid form

      Total                    Ton       316,390   95,048.1     3.71     368.190    127,973.4      4.56   134,64




                                                       57
                       Supply and Demand Survey on Food and Beverages – Uzbekistan




     From foreign
                                     267,205   81,288.2              246,913     84,742.3                 104.25
     countries
     Brazil                              668      190.6               29,877      9,046.7                4,747.18
     Czech Republic                   20,254    6,126.5               20,481      7,455.3                  121.69
     Russia                            9,883    3,167.2               18,781      6,728.7                  212.45
     Lithuania                        37,102   10,812.6               16,051      5,926.3                   54.81
     Latvia                           34,817   11,314.7               59,132     20,322.9                  179.62
     Poland                          121,816   35,944.8               44,092     15,078.8                   41.95
     Great Britain                    15,375    5,089.6               11,912      4,400.5                   41.95
     Other foreign
                                      24,422    7,827.4               15,762     43,231.1      5,530.1     70.65
     countries
     From CIS
                                      49,185   13,759.9              121,276     10,753.7                 314.18
     countries
     Belorus                          18,390    6,145.8               31,245         32,445               174.97
     Russia                           30,438    7,506.1               90,029            0.8               432.67
     Other CIS
                                         357      107.9                    1                                 0.74
     countries

18   Cocoa and cocoa
     products
     Total                 Ton         3,342   18,039.0    0.70        3,281     14,606.9      0.52        80.97
     From foreign
                                       1,824    2,235.7                1,594         1,851.3               82.14
     countries
     Iran                                122       25.3                 323           107.1               422.99
     Singapore                           220      642.9                 310           948.5               147.54
     Turkey                              811      384.5                 556           293.1                76.23
     Other foreign
                                         670    1,201.0                 404           502.6                41.85
     countries
     From CIS
                                         641    1,231.1                1,238         1,510.0              122.84
     countries
     Russia                              588    1,159.0                1,210         1,458,5              125.84
     Other CIS
                                          53       72.1                   28           51.5                71.45
     countries

19   Preparations of
     cereals, flour,
     starch or milk;
     pastry cooks’
     products
     Total                 Ton         3,997    2,871.8    0.11        2,775         1,506.6   0.05        54.16
     From foreign
                                       3,544    2,415.1                1,648          930.2                38.52
     countries
     Germany                             133      276.0                   41          136.7                49.53
     Iran                              2,781      474.8                1,235          283.7                59.74
     Italy                                28       34.7                   41           96.6               278.33
     Pakistan                            153      777.3                   71          224.5                28.88
     Turkey                              249      127.0                  214           86.8                68.30
     Other foreign
                                         200      725.3                   45          102.0                14.07
     countries
     From CIS
                                         453      366.7                1,127          576.0               157.21
     countries
     Russia                              429      340.3                1,120            566               166.59
     Other CIS
                                          25       26.3                    7             9.5               36.00
     countries




                                                   58
                       Supply and Demand Survey on Food and Beverages – Uzbekistan




21    Miscellaneous
      edible
      preparations
      Total                Ton         3,342    18,039.0    0.70       3,281     14,606.9      0.52    80.97
      From foreign
                                       2,860    17,520.5               2,783     13,931.7              79.52
      countries
      France                           518.0    11,489.2                573      10,274.6              89.43
      Other foreign
                                       2.342     6,031.3               2210          3,657.2           60.64
      countries
      From CIS
                                         482      518.5                 498           675.2           130.21
      countries
      Azerbaijan                                                         12           203.0
      Kyrgyzstan                                                          3            64.7
      Russia                             441      474.1                 483           395.3            83.38
      Other CIS
                                          41        44.5                   1           12.2            27.35
      countries

 As we can see from the above-mentioned table, despite the decreasing tendency of total
 import volumes of food and beverages, the import from ECO member-countries is increasing.
 This is a result of both liberalisation of import regulation procedures and introduction of the
 tariff preferences and Most Favoured Nations (MFN) regimes to these countries.

        (e) Factors affecting imports

 The major factors affecting the imports of food and beverages are following:
    Increase or decrease of domestic production volume;
    Domestic and the World market prices;
    Further liberalization of tariff and non-tariff barriers;
    Signing the trade-economic cooperation agreements on providing MFN regime or on
     creation of free trade zones;
    Improvement of transport infrastructure between Uzbekistan and other ECO member
     countries.




                                                   59
                      Supply and Demand Survey on Food and Beverages – Uzbekistan




4. Apparent consumption

     (a) Export

Below-cited table shows the export volume of the products from the Republic of Uzbekistan
in the period 1997-2001 (in thousand US$):

    HS
                  Product name               1997          1998     1999      2000     2001
   code
    02    Meat and edible meat offal           13,4         275,8     10,1       4,8
    03    Fish & crustaceans                  124,4            82      2,8       2,1     85,3
    04    Dairy products: bird’ eggs;         196,1         116,6    201,6     518,3    430,7
          natural honey; edible product
          nes
    10    Cereals                              54,4          56,7      4,6       275   1555,4
    11    Products mill industry; malt;        26,6          41,6    204,1     439,3    266,3
          starches; inulin; wheat gluten
    15    Animal and vegetable fats and      7401,9        9820,8   5980,5    6699,7   4847,8
          oils and their cleavage
          products, etc.
    16    Prepared meat, fish or              127,2          43,6    531,8     152,4     22,1
          crustaceans, molluscs, etc.
    17    Sugar and sugar confectionery      2731,5        3345,3   5418,3    4231,5   1654,3
    18    Cocoa and cocoa products            128,4          51,5      287     219,6    215,9
    19    Preparations of cereals, flour,     266,3         305,1    978,6     628,4    455,8
          starch or milk; pastry cooks’
          products
    21    Miscellaneous edible                520,2          380      88,6     502,2    357,4
          preparations
          Total                             11590,4        14519    13708    13673,3    9891




                                                      60
                          Supply and Demand Survey on Food and Beverages – Uzbekistan




       (b) Distribution of food and beverages export of the Republic of Uzbekistan to
           ECO members countries for the period 2000-2001

                                                         2000                         2001
 HS                                                             Value,                    Value,          2001/2000
            Product group             Unit
code                                            Quantity       thousand   Quantity       thousand            in %
                                                                 US$                       US$
                                                  Azerbaijan
              Total                                             1,975.3                       1,882.7
       Dairy products: bird’
04     eggs; natural honey;           Ton          -               -             3                  6.9       -
       edible product nes

                                                Turkmenistan
              Total                                        54,407.7                          3,7251.8         68.5
       Dairy products: bird’
04     eggs; natural honey;           Ton          -               -             5                  5.1       -
       edible product nes

       Products mill industry;
11     malt; starches; inulin;        Ton          -               -             50              21.0
       wheat gluten

       Animal and vegetable
15     fats and oils and their        Ton              120        60.5       120                 60.5        100.0
       cleavage products; etc.

       Prepared meat, fish or
16     crustaceans, molluscs,         Ton               51       102.3       -                  -             -
       etc.

       Sugar and sugar
17                                    Ton          -               -             2                  4.5       -
       confectionery

       Cocoa and cocoa
18                                    Ton               3           6.1      -                  -             -
       products

       Preparations of cereals,
19     flour, starch or milk;         Ton               15        12.8       -                      0.1           0.8
       pastry cooks’ products

       Miscellaneous edible
21                                    Ton              118       109.3           16                 427       39.1
       preparations

                                                   Pakistan
              Total                                             1,975.3                       1,564.4         50.7
       Dairy products: bird’
04     eggs; natural honey;           Ton              191        84.9       239               105.0         123.7
       edible product nes

                                                 Afghanistan
              Total                                        10,813.7                          10,897.8        100.8
       Dairy products: bird’
04     eggs; natural honey;           Ton          -               -             22                 9,8       -
       edible product nes

10              Cereals                            2,767         275.0     12,991             1,382.3        502.7

                                                       61
                       Supply and Demand Survey on Food and Beverages – Uzbekistan




     Products mill industry;
11   malt; starches; inulin;                    1,703        193.0      1,104          148.5       76.9
     wheat gluten

     Animal and vegetable
15   fats and oils and their                        360      184.8        120               60     32.5
     cleavage products; etc.

     Sugar and sugar
17                                              -              -          127            38.9     -
     confectionery

     Miscellaneous edible
21                                              -              -          -                 0.1   -
     preparations

                                                    Iran
           Total                                           69,207.9                   77,947      112.6

     Miscellaneous edible
21                                 Ton                1       0.7         -             -             0.0
     preparations

                                                 Turkey
            Total                                          94,207.0                  75,292.6      79.9
     Dairy products: bird’
04   eggs; natural honey;          Ton                7       15.6        -             -         -
     edible product nes

     Animal and vegetable
15   fats and oils and their                                                  59         29.7     -
     cleavage products, etc.

                                               Kazakhstan
            Total                   ton                  90,184.0                    51,255.7      56.8
     Dairy products: bird’
04   eggs; natural honey;          173          269.3        106.0        143                      53.1
     edible product nes

09   Coffee, tea, mate and
                                                     44       32.4        -                 0.2       0.6
     spices

10   Cereals                                    -              -              12            0.7   -

     Products mill industry;
11   malt; starches; inulin;                         68       14.5            1             0.1       0.7
     wheat gluten

     Animal and vegetable
15   fats and oils and their                    1,805         94.9     10,809          622.6      656.1
     cleavage products; etc.

     Prepared meat, fish or
16   crustaceans, molluscs,                     -              -              2             7.8   -
     etc.

     Sugar and sugar
17                                              9,293       1,724.3     2,588          335.9       19.5
     confectionery




                                                    62
                       Supply and Demand Survey on Food and Beverages – Uzbekistan




     Cocoa and cocoa
18                                                114           94.6          8          11.7       12.4
     products

     Preparations of cereals,
19   flour, starch or milk;                       419         283.4       282          263.9        93.1
     pastry cooks’ products

     Miscellaneous edible
21                                 Ton            172           20.6          34         51.1      248.1
     preparations

                                               Kyrgyzstan
            Total                                        37,125.5                    39,070.5      105.2
     Fish & crustaceans,
03   mollusc & other aquatic       Ton              1            1.1      -                 0.5     45.5
     invertebrate

10   Cereals                                                            1,461          171.2        -

     Animal and vegetable
15   fats and oils and their                        2            1.6      -             -           -
     cleavage products; etc.

     Sugar and sugar
17                                                 16           25.0          10            0.7         2.8
     confectionery

     Cocoa and cocoa
18                                                 22           17.4          10             9      51.7
     products

     Preparations of cereals,
19   flour, starch or milk;                       376         252.4       313          174.3        69.1
     pastry cooks’ products

     Miscellaneous edible
21                                                  3            1.1          9          94.5     8590.9
     preparations

                                               Tajikistan
            Total                                           93,889.3                 67,328.5       71,7
     Dairy products: bird’
04   eggs; natural honey;          Ton                           1.0          11         30.5
     edible product nes.

     Coffee, tea, mate and
09                                                  5           88.2          1          18.7       21.2
     spices

10   Cereals                                                                  5             102     -

     Products mill industry;
11   malt; starches; inulin;                    1,151         231.7     1,914            88.8       38.3
     wheat gluten

     Animal and vegetable
15   fats and oils and their                    8,672        4,335.2    7,476         3,736.3       86.2
     cleavage products; etc.

     Prepared meat, fish or
16   crustaceans, molluscs,                                      8.0          92         13.5
     etc.


                                                   63
                         Supply and Demand Survey on Food and Beverages – Uzbekistan




       Sugar and sugar
17                                                   13        53.2         453        127.9   240.4
       confectionery

       Cocoa and cocoa
18                                                   38        95.7          72          82     85.7
       products

       Preparations of cereals,
19     flour, starch or milk;                        33        93.0          13         16.4    26.0
       pastry cooks’ products

       Miscellaneous edible
21                                                   22       137.2          31         72.5    52.8
       preparations



                              B.      Import policy and procedures
1. Regulations

According to the decree of the President of the Republic of Uzbekistan dated
18 February, 1998 “On additional measures on improvement of import operations”, only
import contracts of economic establishments, which are not secured with own hard currency
resources, are subject to registration in the Ministry for Foreign Economic Relation of the
Republic of Uzbekistan.

The major purpose of registration is protection of government and Uzbek importers interests
on import operations, consumers from delivering of non-qualitative products, prevention of
unfounded leakage of governmental currency resources.

All above-mentioned terms are also applicable to ECO member countries.

In order to provide the import of high-quality consumer goods, foodstuff, machines,
equipment and technologies the Cabinet of Ministers of the Republic of Uzbekistan approved
to the Resolution (№ 534 dated December 3 1997) “About measures of implementation of
contracts independent examination of preliminary shipping inspection of goods being
imported”. The given Resolution is directed towards pre-shipping control companies on:
    Physical inspection for confirmation of quantity, quality and origin of goods to be shipped;
    Comparative analysis to make known if the price of goods, freight, insurance and other
     fees corresponds to price level in origin country and international market prices;
    Checking of conformity of the present consignment of goods to contract requirements as
     well as to the customs instructions of the Republic of Uzbekistan.

Independent examination of import contracts and preliminary shipping inspection of goods
being imported is implemented by consulting companies that meet requirements of
International federation of inspection agencies and accredited in Uzdavstandard, in
accordance with principles of Agreement on preliminary shipping inspection from WTO.




                                                     64
                    Supply and Demand Survey on Food and Beverages – Uzbekistan




All legal entities of the Republic of Uzbekistan, which import the products, have a right to
choose the consulting firms for preliminary shipping and contract inspection.

Implementation of preliminary shipping inspection of goods being imported does not apply
to:
   For deliveries of goods amounting to no more than 10 thousand US$;
   For deliveries of specific goods, import of which is executed according to licenses that are
    being issued by the Ministry for Foreign Economic Relations of the Republic of
    Uzbekistan.

            The list of the products, which are imported with obligatory procedure
                                   of preliminary inspection.

          Product
                            Product group according to HS                  HS code
          group №
             02      Meat and edible meat offal                   0201-0210
             04      Dairy products                               0401-0402, 0404-0406



2. Import duties: description of classification, basis of assessment and amount of
   percentage duty

      (a) General

After obtaining independence the government of the Republic of Uzbekistan is implementing
the step-by-step policy on liberalization of trade regime of the Republic.

The Law of the Republic of Uzbekistan “On the customs tariff” which came into the force on
1st January, 1998 envisages the following types of customs duties rates:
   Advalor, charged in percent to the customs cost of taxed goods;
   Specific, charged in an established size per unit of the taxed goods;
   Combined, combining advalor and specific kinds of the rates of customs duties.

Marginal levels of the rates of import customs duties, applied in relation to the goods,
originating from the countries, in the trade and economic relations to which the Republic of
Uzbekistan applies MFN regime, are established by the legislation.

New rates of customs duties were declared by the Decree of the Cabinet of Ministers of the
Republic of Uzbekistan “About the improvement of foreign trade activity regulation” № 189
from May 31, 2002, which were brought into force since July 1, 2002.




                                                  65
                       Supply and Demand Survey on Food and Beverages – Uzbekistan




       (b) The customs duties on foodstuff products and beverages are shown below:

                                                                                           Rates of customs
      HS code                                                                                 duties (in %
                                  Product name                           HS code
      groups                                                                               from the customs
                                                                                                  cost)
        09      Coffee, tea, mate and spices                          0901,0903                    10
        17      Sugar and sugar confectionery                         1704                         30
        18      Cocoa and cocoa products                              1801-1806                    10
                Preparations of cereals, flour, starch or milk;       190190,1902-                 20
        19
                pastry cooks’ products                                1905
                Miscellaneous edible preparations                                                10
                Extracts, essences and concentrates of coffee, tea,   2101                       30
        21      mate and preparations with their basis; roasted       2103-2105 00
                chicory and other roasted coffee substitutes and
                extracts, essences and their concentrates, yeast      2106                       10

       (c) Most Favoured Nations (MFN)

By the Law “On customs’ tariff” also was mentioned that marginal rates of import customs
duties are using on products, originated from the countries trade economic relations with
which the Republic of Uzbekistan is applying of regime Most Favoured Nations (MFN).

According to Resolution of the Cabinet of Ministers “About additional measures on
liberalization of foreign trade activity in Uzbekistan” № 137 from 31 March 1998, the rates of
duties, brought into the force by the Resolution № 66 of the Cabinet of Ministers dated from
February, 2001 are the rates of MFN regime. Tariff rates of MFN regime are doubled for non-
applied MFN regime countries.

In accordance with the intergovernmental Agreements of Trade-Economic cooperation the
Republic of Uzbekistan provides MFN regime to 38 countries of the World.

             The list of countries, with which were signed the Trade-Economic cooperation
                           Agreements providing the MFN regime were signed.


39.     Austria.          49.      Israel            59.      Luxembourg             69.       Turkey*
40.     Bangladesh        50.      India             60.      Malaysia               70.       Finland
41.     Belgium           51.      Jordan            61.      Netherlands            71.       France
42.     Bulgaria          52.      Ireland           62.      Pakistan*              72.       Czech Republic
43.     Great Britain     53.      Spain             63.      Poland                 73.       Switzerland
44.     Hungary           54.      Italy             64.      Portugal               74.       Sweden.
45.     Vietnam           55.      China             65.      Romania                75.       Estonia
46.     Germany           56.      Korea             66.      Saudi Arabia           76.       Japan
47.     Greece            57.      Latvia            67.      Slovakia
48.     Denmark           58.      Lithuania         68.      USA




                                                        66
                     Supply and Demand Survey on Food and Beverages – Uzbekistan




      (d) Preferential

Import of products originating from the customs territory of countries signatories of the
“Agreement about the establishment of Free Trade Zone” are non-dutiable. Ministry of Justice
registered the list of countries-members of the “Agreement about the establishment of Free
Trade Zone” under the № 429, from April 8, 1998. Given regime is applying in trading with
Azerbaijan, Armenia, Belarus, Georgia, Kazakhstan*, Kyrgyzstan*, Moldova, Russia,
Ukraine, Tajikistan* and Turkmenistan.

Notes: * ECO member countries.

3. Other charges on import

The rate of VAT (20%) is fixed for importing products (works services) by the Tax Code of
the Republic of Uzbekistan.

The VAT payment on importing products is leviest before or during the customs registration.

According to article 82 of Tax codex of the Republic of Uzbekistan the lists of excise-liable
commodities, as well as rates of excise tax are specified by the Cabinet of Ministers of the
Republic of Uzbekistan.

The rates of excise taxes for imported and exported goods from Uzbekistan were specified by
the Resolution of the Cabinet of Ministers № 500, dated 26 December, 2000. For imported
excise-liable goods, the excise tax is calculated from the customs cost.

Excise tax for imported goods would be paid until or during customs registration.




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                     Supply and Demand Survey on Food and Beverages – Uzbekistan




        The rates of excise tax for imported goods by the juridical and natural persons
                                         to Uzbekistan.

HS code                                                                   Rates of customs duties
                      Product name                          HS code
 group                                                                    (in % from the customs cost)
            Preparations:                               200110000-        30
            of vegetables                               200190200,2002,

   20       Fruit, nuts or other parts of plants        2206-2008

            Juices                                      2009              35,but not less than
                                                                          0,2 US$ per litre
            Beverages                                   2201,2202         35, but not less than
                                                                          0,2 US$ per litre

            Beer                                        2203              45, but not less than
                                                                          0,3 US$ per litre

   22       Alcoholic products of 25 degrees            2204-2206         90
            (except beer)


            Alcoholic products of 25 degrees            2207,2208         99

            Spirit, ethyl                               2207              40

4. Customs duties and collections

According to customs codex of the Republic of Uzbekistan, customs registration of goods is
charged the following levies: (1) fees charged for customs registration; (2) fees for customs
service; (3) fees for issuing of customs certificate.

5. Custom valuation

The law of the Republic of Uzbekistan “On customs tariff” foresees that rates of customs
duties are calculated from the customs cost of products (work and services).

In correspondence with the customs legislation customs cost is used for calculation of advalor
rates of customs duty, customs fees, VAT and excise taxes. Customs cost is also used for
conducting of statistics on foreign trade.

6. Documentary requirements for import

According to the legislation on registration of cargo the transport way-bill, invoice, contract,
declaration of customs cargo, and also necessary certificates (certificate of origin, preliminary
inspection certificate, conclusion of expertise of import contracts issued by consulting service,
passport of import operation) are needed.



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                       Supply and Demand Survey on Food and Beverages – Uzbekistan




                                       C.       Import practices
Import of the products is carried out both by governmental and non-governmental, private
juridical and natural persons.

There are also a number of trade companies-importers, which are busy with delivery of food
and beverages from abroad.

It is necessary to note that considerable share of import and export volumes of food and
beverages are provided through informal trade (the called “shuttle trade”).

            Export and Import of goods by individuals of the Republic of Uzbekistan
                                    for the period of 2001.
                                      (Thousand US$ )
                                                    Export                           Import
 HS
              Country name             10/01/2000 10/01/2001 2001/2000 10/01/2000 10/01/2001 2001/2000
code
                                       31/12/2000 31/12/2001   in %    31/12/2000 31/12/2001   in %
02     Meat and edible meat offal                                           54.4       61.4      0.11
03     Fish & crustaceans                     2.1     73.6       0.06       43.2       68.0      0.12
       Dairy products: bird’ eggs;
04     natural honey; edible                231.8    245.9       0.18     387.5       118.4      0.20
       product nes
09     Coffee, tea, mate and spices         533.6    317.2       0.24     672.0       201.3      0.35
10     Cereals                                         2.0       0.00      62.4        33.1      0.06
       Animal and vegetable fats
15     and oils and their cleavage           59.5     24.3       0.02     493.3      1,439.9     2.48
       products, etc.
       Prepared meat, fish or
16                                            4.0         0.7    0.00     272.0        51.7      0.29
       crustaceans, molluscs, etc.
       Sugar and sugar
17                                          112.8     86.6       0.06     562.4       135.8      0.23
       confectionery
18     Cocoa and cocoa products              83.8     44.8       0.03     606.3       486.2      0.84
       Preparations of cereals,
19     flour, starch or milk; pastry          1.2         0.8    0.00     541.8       432.6      0.74
       cooks’ products
       Miscellaneous edible
21                                          256.8     89.6       0.07     293.3       169.8      0.29
       preparations

1. Alternative modes of transport to country; usual point of entry

Constantly increasing international freight transport, expanding trade between countries and
integration of the Republic of Uzbekistan into the global economy, demand improvements in
the use of the existing transport corridors and also the creation and development of alternative
ones, utilizing modern methods of transportation.




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                    Supply and Demand Survey on Food and Beverages – Uzbekistan




Uzbekistan is disposing of sufficiently powerful transport infrastructure, which is including
the systems of railway, auto, air, pipeline and river transports. At present, the systems of
communications of Uzbekistan have sufficiently economical base for satisfaction of
requirements of auto, railway and air transports. The efforts of Government of the Republic is
directed for development and improvement of international transport networks, which assists
to natural, step-by-step and economical authorized revival of Great Silk Road, which transit
intersects the territory of Uzbekistan and connects China, the Central Asian countries, Iran
and Turkey with the Europe.

Traditional transportation routes of Uzbek export-import cargoes is mainly lying through the
territories of Kazakhstan and Russia.

The Government is elaborating alternative, more effective and economical variants of
transportation for expanding foreign relations of Uzbekistan on three main directions:

   On western direction – through Trans-Caucasian corridor to the ports of the Black Sea
    (Uzbekistan – Turkmenistan – Azerbaijan-Georgia);
   On eastern direction – via Kyrgyzstan to the ports of China (to the Yellow and Eastern-
    Chinese Seas);
   On southern direction – through Turkmenistan, Iran to the Indian Ocean.

The volumes of international air-transportation are expanding, which is depended on
expansion of geography of foreign economic relations of the Republic. Uzbekistan is linked
through direct airlines practically with all countries of the World. At present, the length of
railways amounts to 5 000 km, the density of railways network of Republic is the most
saturated in Central Asia.

The role of automobile transportation is increasing mainly in international passengers and
cargoes transportation. The further development of transport infrastructure during the next
5 years will not only connect all provinces and regions of the Republic, but also will open
them access to any direction.


                                     D.      Competition
Presently, there is quite a number of successful importers and traders (wholesalers and
retailers) operating directly with the foreign producers and suppliers of food and beverages at
the same time with national producers and their trade agents network.

Despite the price of local manufactured food and beverages that are cheaper than imported
ones, their imported products are well considered because of the design and quality, which is
very important factor in today’s market of Uzbekistan.

In this connection the import-substituting products manufacturing by new established
enterprises with the foreign investments are more competitive. These enterprises are the major
competitors of importing products.




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                    Supply and Demand Survey on Food and Beverages – Uzbekistan




Moreover, to satisfy the market with the imported products the foreign trade activity of
natural persons (“shuttles”) are playing an important role.

In spite of above-mentioned, the foodstuff products market of the Republic of Uzbekistan has
its own sale segments. With other words it has own consumers segment, depending on price,
design and quality of textile products.

Therefore, foreign producers and suppliers of foodstuff products in order to enter into the
domestic market of Uzbekistan are working through network of trade dealers, distributors and
shops, which have arranged system of product promotion and providing after sale services.


              E.      Market perspectives and market entry strategy
It is necessary to note that there are no special limitations and prohibitions concerning import
of food and beverages. At the same time, there are some preferences and privileges of the
product import in accordance with signed bilateral and multilateral trade-economical
cooperation agreements by different countries, which includes providing the Most Favoured
Nations (MFN) regime.

It should be noted that the decreasing import tendency on the products market to Uzbekistan
over past five years. It is the result of purposeful government policy on stimulation of
production of export-oriented and import-substituted products (base on deep processing of
domestic raw materials), with high added value.

In spite of this, there is a sufficient demand for importing food and beverages, as domestic
producers do not cover all market segments, today. The segmentation of these products
market of the Republic allows defining of those free shares of segments while taking into
consideration on the national particularities of the present market.

Uzbekistan has a developed network of advertising agents and advertising facilities
(advertising agencies, television, radio, press and others), as well as marketing agencies,
which could assist in entering to the market of Uzbekistan. Participation on exhibitions, fairs
and tenders, organized on the territory of the Republic of Uzbekistan are also effective tools
in promotion of products to the Uzbek market.

One of the reliable means of entering the foodstuff market of Uzbekistan is the creation of
joint ventures on the territory of Uzbekistan by the means of organisation of outputting of
export-oriented and import-appointing production based on deep treatment of local raw
materials. The following factors will assist this:
   Existence of main raw materials in the Republic;
   Relatively inexpensive production resources;
   Favourable conditions are provided for foreign investments.




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                        Supply and Demand Survey on Food and Beverages – Uzbekistan


                                    F.      List of useful addresses

MINISTRY FOR FOREIGN ECONOMIC                               ”MARKAZSANOATEXPORT” STATE FOREIGN
RELATION OF THE REPUBLIC OF UZBEKISTAN                      TRADE JOINT
Address:   1, Shevchenko str., Tashkent, Republic of        STOCK COMPANY
           Uzbekistan                                       Address:   75, Buyuk Ipak Yuli str., Tashkent,
Phone:     (998-71) 138-50-00                                          Republic of Uzbekistan
Fax:       (998-71) 139-17-51                               Phone:     (99871) 120-80-31
E-mail:    secratary@mfer.uz                                Fax:       (99871) 120-80-32
”UZINCOMCENTER” UZBEK FOREIGN                               ”INNOVATSIYA” STATE FOREIGN TRADE JOINT
ECONOMIC INFORMATION AND                                    STOCK COMPANY
COMMERCIAL CENTER                                           Address:   75, Buyuk Ipak Yuli str., Tashkent city,
Address:   107, Amir Timur str., P.O. Box 524,                         Republic of Uzbekistan
           Tashkent, Republic of Uzbekistan                 Phone:     (998-712) 68-77-42
Phone:     (998-71) 138-58-08                               Fax:       (998-712) 68-77-33
Fax:       (998-71) 137-08-71
E-mail: info@uicc.mfer.uz
Internet address: uicc.mfer.uz
TRADE POINT TASHKENT                                        ”UZPROMMASHIMPEKS” STATE JOINT STOCK
Address:   107, Amir Timur str., P.O. Box 524,              COMPANY
           Tashkent, Republic of Uzbekistan                 Address:   75, Buyuk Ipak Yoli str., Tashkent,
Phone:     (998-71) 138-58-10                                          Republic of Uzbekistan
Fax:       (998-71) 138-58-12                               Phone:     (998712) 68-75-88,
E-mail: tpt@uicc.mfer.uz                                               (99871) 120-73-24
Internet address: uicc.mfer.uz                              Fax:       (998712) 68-73-83; 68-74-36
                                                            Internet address: www.upm.uz
”UZEXPOCENTRE” TRADE EXHIBITION                             “UZMEVASABZAVOTUZUMSANOAT-HOLDING”
CENTRE                                                      HOLDING COMPANY
Address:   107, Amir Timur str., Tashkent, 700084,          Address:   6, Abay str., Tashkent, 700011, Republic
           Republic of Uzbekistan.                                     of Uzbekistan
Phone:     (998-712) 35-09-73                               Phone:     (998 71) 144-27-56
Fax:       (998-712) 34-54-40                               Fax:       (998 71) 144-17-111

”UZMARKAZIMPEKS” STATE FOREIGN TRADE                        YOGMOYTAMAKISANOATASSOCIATION
JOINT STOCK COMPANY                                         Address:   73A, Nukus str., Tashkent, 700015,
Address:   75, Buyuk Ipak Yuli str., Tashkent,                         Republic of Uzbekistan
           Republic of Uzbekistan                           Phone:     (998 71) 2550790, 2549421
Phone:     (998712) 68-92-52                                Fax:       (998 71) 2556093, 2540411
Fax:       (998712) 68-75-55

OZIQOVQATSANOAT ASSOCIATION                                 ASSOCIATION OF DEHKAN AND FARMERS OF
Address:   7, Navoi str., Tashkent, 700038, Republic        THE REPUBLIC OF UZBEKISTAN
           of Uzbekistan                                    Address:   40, Murtazaev str., Tashkent, 700084,
Phone:     (998 71) 2418601, 2411682                                   Republic of Uzbekistan
Fax:       (998 71) 2415770                                 Phone:     (998 71) 1375791
                                                            Fax:       (998 71) 1375792

UZGUSHTSUT-SANOAT JOINT STOCK                               UZBEKSAVDO STATE JOINT STOCK COMPANY
ASSOCIATION                                                 Address:   25, Navoi str., Tashkent, 700011,
Address:   75, Koh-ota str., Tashkent, 700128,                         Republic of Uzbekistan
           Republic of Uzbekistan                           Phone:     (998 71) 1394522, 1394971
Phone:     (998 71) 2413142, 1443628                        Fax:       (998 71) 1394300




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Supply and Demand Survey on Food and Beverages – Uzbekistan

                        Annex I




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Supply and Demand Survey on Food and Beverages – Uzbekistan




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