An effective system of agricultural exports
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exportThis article reflects the opinion of specialists of the Republican Universal Agro-Industrial Exchange.

  • The main problems in the export of agricultural products:

1. Small commodity production of agricultural products produced by thousands of farms, dekhkan farms and subsidiary plots. Hence the problem of procurement of products.
2. The lack of fruit and vegetable terminals that would concentrate harvested agricultural products for wholesale parties. For the formation of transport parties (truck, wagon, fur. Section), it is necessary to have logistics centers with refrigerators and part-time agricultural products.
3. Problems with the use, production and acquisition of modern packaging.
4. When exporting agricultural products, a number of problems arise: from harvesting and storage to certification, transportation and pricing. About what improvements the sphere expects - in our review. Of varieties and varieties).
5. Lack of regular customers and stable suppliers.
6. Requirements for farms for the prepayment of agricultural products, and in cash.
7. Buyers' requirements to supply products to their location and their acceptance at the buyer's warehouse.
8. Problems of financing wholesale and trading systems both in Uzbekistan and abroad during the harvesting and sale of agricultural products.
9. Uncertain pricing policy, ignorance of the foreign market conditions sharply reduces the competitiveness of agricultural products compared with competing suppliers from other countries.

Existing agricultural export options are as follows:

  • 1 Niche of small wholesale trade:

a) an Uzbek reseller purchases agricultural products from farmers and organizes their export at his own expense. All risks from spoilage of products - at the reseller;
b) the farmer himself finds a local or at best a foreign buyer. As a rule, in this case, the representative of the buyer personally controls the quality of the purchased products, their packaging and loading with on-site settlements;
c) the farmer turns to the regional unit of Uzagroexport. In this case, two options are possible. A farmer, having found a buyer, simply draws up a deal through Uzagroexport. Or representatives of Uzagroexport offer a buyer, the probability of which is low.

Can a farmer set up efficient export of products on his own today? It all depends on the farmer's level of security, infrastructure for storage and processing of products.

Usually a farmer

  • busy with current activities, he lacks marketing knowledge;
  • insufficiently owns regulatory documents;
  • To solve these issues, the farmer needs to maintain a staff of specialists, which is unprofitable;
  • most farmers lack the means and capabilities to make containers, pack, transport, pay for certification laboratory services, etc.
  • even if the farmer overcomes all these difficulties, it can go from one to several trucks, which cannot be attributed to organized large deliveries.
  • 2 Niche ща middle wholesale trade:

It is filled with private agricultural firms involved in the harvesting and export of agricultural products in the regions. These structures are more mobile, close to regions and possess practical skills in exporting products.

Problems of such structures:

  • incomplete knowledge of the situation on the foreign commodity market and potential consumers of agricultural products. As a result, they “stick to" certain regions and consumers;
  • lack of terminals for storing, part-time, product packaging and reliable logistics;
  • problems of lending and financing in the procurement of agricultural products.
  • 3 Niche of large wholesale trade:

The major specialized government agencies for the export of agricultural products include Uztrade and Uzagroexport. They have regional structures involved in the harvesting of agricultural products, warehouses with refrigeration equipment, transport and trading houses abroad.
Structural issues:

  • lack of terminal space for storing agricultural products for large wholesale deliveries;  
  • insufficient ability to organize rhythmic deliveries of agricultural products in large quantities, which is one of the requirements of large retail chains abroad;
  • insufficient "promotion" (methods of promoting goods to the market) and, as a result, insufficient coverage of the consumer market, even with trading houses abroad;
  • each individual structure does not possess objective price information and the changing market conditions for agricultural products in the regions of the near and far abroad. It should be noted that, in addition to Uzbekistan, Turkey, Iran, China, Azerbaijan, Tajikistan, Kyrgyzstan, Moldova, Bulgaria, Bangladesh and the southern regions of Russia are powerful competing suppliers.

Today, the republican structures involved in the export of agricultural products are scattered and follow the path of trial and error.

  • What is offered

It is necessary to combine the efforts of all structures involved in export and related to agriculture in a single information space, whose participants will be farms, wholesale organizations, exchanges and banks.

The central role in this system should be played by Uzbek exchanges and exchanges of importing countries as a tool for concentration of supply and demand for agricultural products. Together they will help build a system of relations between producers and consumers of agricultural products, ensure accessibility and transparency of the market to its participants, guarantee delivery and payment of goods using the exchange clearing house mechanism.

  • The advantages of  exchange export include:
  • a wide and accessible review of proposals for the sale of agricultural products to potential buyers (daily bulletins);
  • market pricing of agricultural products based on supply and demand;
  • the use of collateral schemes for the sale of products when the prepayment of the goods is transferred to the seller by the clearing house of the exchange only after the goods are shipped under the exchange contract;
  • the possibility of placing offers of agricultural products of Uzbek producers on commodity platforms of foreign exchanges;
  • trust of foreign partners in concluded exchange transactions with a guarantee of delivery and in making payments;
  • the confidence of Russian banks in Russian exchanges, which will make it possible to lend to large retail chains to conclude exchange transactions.
  • Conditions for the formation of an effective export system:
  • large wholesalers, Uzagroexport, Uztrade, trading houses, agricultural firms and large farms to become participants in the exchange market for the sale of agricultural products;
  • create attractive conditions for participants in exchange transactions by providing them with a “green corridor” in customs clearance, certification, obtaining loans and preferential insurance;
  • get away from administrative pricing of agricultural products. Prices should be based on supply and demand during exchange trading;
  • to develop inter-exchange relations with major CIS exchanges, and primarily with the St. Petersburg International Commodity and Raw Materials Exchange, the Belarusian Universal Commodity Exchange and Kazakhstan commodity exchanges;
  • create a unified information database of supply and demand for the supply of agricultural products with the connection of the Council of farmers, dekhkan farms and private land owners, the Ministry of Agriculture and the departments of agriculture of khokimiyats, with the function of assisting producers in putting the grown produce up for exchange trading;
  • create a regularly updated price base for the main types of agricultural products in the context of the country's regions and in the context of the main regions of Russia, Belarus and Kazakhstan with the involvement of khokimiyats (in the context of the wholesale and dekhkan markets of the regions), the Republican Center for Commodity Markets and Marketing Departments of Uztrade and Uzagroexport with placement on portals of commodity exchanges;
  • to provide the right to participate in tenders to wholesalers, agricultural firms, including foreign traders, at no cost;
  • to develop a forward transaction system, providing for the possibility of submitting proposals for the supply of agricultural products up to a year in advance with a guarantee of supply, payment and risk insurance;
  • in order to increase payment guarantees, interact with clearing and settlement chambers of foreign exchanges and provide them with the right to conduct transactions in settlements with non-residents in any currency and participate directly in tenders of the currency exchange;
  • widely announce the system of exchange export of agricultural products.
  • The implementation of these measures will allow:
  • to attract large foreign wholesalers and network trading systems to the exchange commodity market;
  • increase the reliability of supplies and payment for products;
  • attract investment in the development of infrastructure, logistics, production, processing and storage of agricultural products;
  • to plan the volume of agricultural products by type for the next season, depending on demand;
  • will allow large banks of countries - importers of agricultural products to open credit lines to wholesale companies and retail chains for guaranteed deliveries on exchange contracts.
 

ABOUT RUAE

Year of foundation 1991. Republican Universal Agro-Industrial Commodity Exchange (RUAE) since 1992 is represented in the directory of world exchanges, since 1998 is a member of the Union of Commodity and Food Exchanges of CIS countries.

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100022 Tashkent city
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