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THE WAYS TO INCREASE THE EXPORT POTENTIAL OF THE FARMS
1Turobova Hulkar Rustamovna, 2Kodirov Aziz Anvarovich
1 Uzbekistan, Bukhara, Senior teacher of Bukhara State University;
2 Uzbekistan, Bukhara, teacher of Bukhara State University.
ARTICLE INFO
Received 7 December 2016 Accepted 15 December 2016 Published 30 December 2016
KEYWORDS
farms, exporters,
agricultural products, food safety and supply, cooperation
ABSTRACT
At the article illuminated importance of farms at agriculture and their role in the export of agricultural products. The food supply and security is one of the global problems. The Uzbekistan have a great opportunity manufacture of food products. Therefore, the export capacity of food products are high. At the article explains the benefits and convenience for exporters in Uzbekistan.
© 2016 The Authors.
Global trends in the levels the problems of food safety and supply and increasing the prestige of the population of the earth, as well as in the country increased the demand for agricultural products. In some countries, to provide natural and low-cost food products the population has become a pressing issue in a moment the average annual growth the volume of agricultural production of 6% in the country[2]. Continuity of reforms of the agricultural sector - the a result of given priority the introduction of market relations, the development of private ownership, growing products and the process of modernization, finished products in foreign markets such as. Networks involved in these issues of the process of globalization of food safety and supply problems necessary further development and stabilization of their activities. Develop of these measures is one of the most important tasks in front of scientists and experts working in the same sphere and this sphere organizations.
The results of investigations can be seen by domestic and foreign scholars and experts carried out a number of scientific and practical work, which the local and the global food crisis and to ensure his safety through the development of agriculture and food industry [1-10].
As well as scientific works of scientists A.Altuxov and S.G.Afanasev's [5-15] aimed food supply problems and ways to solve them, can be noted. The academicians I. Ushachev, A.Serkov [10] and I.Kulikov [5] are noteworthy approaches at improve the competitiveness of the agricultural problems and to solve them. The Uzbek scientist prof.A.M.Kodirov said that at the development of food industry the need to develop innovative policies and through the possibility of creating a safe food products. The F.Nazarova and A.Toshmurodov's emphasize issues such as that to analyze the potential of Uzbekistan's membership in the World Trade Organization; the need for the cultivation of of ecologically clean agricultural products; each in the development of agricultural production the period of agrarian reform; economic stimulating of manufacture of food products; the formation of an effective mechanism the development of market infrastructure; efficiency and the use of energy and resources saving technologies at the agricultural production, storage and processing; organizational and legal registration of Agro-Industrial Complex only as an object of public policy and improve the system of management; to promotion the development of cooperation and integration of enterprises of different forms of ownership at the agricultural production, processing and sales, at agro-service, trade and crediting [6,7].
The production of agricultural products and to increase its export and improve its competitiveness is considering issues related to ensuring food security and satisfaction the population's demand for food products, determines the relevance of this a theme effective forms of cooperation the need to put between agricultural enterprises and infrastructure, storage and processing enterprises at the further development of this sector and the further improvement of economic forms.
Analysis the global markets for food and agricultural products shows, in the future, increased food consumption and issues will deepening which is connected to provide the population with food and food products. According to the UN, In 2025, population of the planet will 8.3 billion and will be required 4
billion tons of food products for its1. As it is known these figures, the demand for food is growing day by day. These conditions necessary efficient use of agricultural production potential of Uzbekistan.
Integration into the global trading system and enhancing the export potential of agriculture and food industry, the formation of the statutory and legal basis and to improve financial, fiscal, price and customs, financial support food exporting producers issues not enough to solve. In this regard, learn best practices developed countries and suited to the conditions in the country are not the level of demand.
At the same time, in the country operating in more than 70 farms, share of the farms 98 per cent of the total agricultural production in the country.
Table 1. The analysis of agricultural products in Uzbekistan
Products Unit of measure 2011 2012 2013 2014 2015 Growth rate, in 2015 compared to 2011
Grain Thousand tons 7404.1 7054.0 7519,5 7807,8 7206 97,3
Cotton Thousand tons 3404.0 3500 3460,1 3361,2 3361 98.7
Potato Thousand tons 1694.8 1862.6 2057,1 2250,4 2696.7 159
Vegetable Thousand tons 6346.5 6994.0 7767,4 8518,4 10128 159
Fruit and berries Thousand tons 1710.3 1878.8 2052,8 2261,1 2746.2 160
Grape Thousand tons 987.3 1090.2 1206 1322,1 1579 159
Meat Thousand tons 1461.4 1564.2 1672,9 1787,8 2033.5 139
Milk Thousand tons 6169.0 6766.2 7310,9 7885,5 9028.2 146
Egg Million pieces 3061.2 3441.7 3873,7 4388,1 5526 180
Fish (caught) Thousand tons 8,7 17,2 25,9 37,5 39.2 4,5 times many
Source: Numbers of Uzbekistan. Statistical Report.2016
As seen in table 1, we can see increased potatoes - 59 percent, vegetables, grapes and other products are 59-60 percent in 2015 compared to 2011 in the republic (table 1).
The results of the research show that, the future world markets create great opportunities for Uzbekistan to exports without the direct or recycled part of more the domestic consumption of fruit and vegetables and melons. Although year-over-year developing the export sector of fruits, grapes and vegetables, despite the huge potential has not been sufficiently established in the republic.
Particular attention was paid to this sector in the years of independence, its consistent support and for the development, a robust legal framework has been created, observed support measures economic, financial and organizational, that:
1. Adopted resolution on March 26, 2012, "Additional measures to strengthen the promotion of export enterprises and expand the supply of competitive products for export" is an important factor increasing the effectiveness of the work in this direction.
2. According to resolution organized Export Support Fund for small business and private entrepreneurship under the National Bank for Foreign Economic Activity of the Ministry of Economy of the Republic of Uzbekistan, Ministry of Finance, the Ministry of Foreign Economic Relations, Investments and Trade Ministry, National Bank for Foreign Economic Activity, Chamber of Commerce and Industry and the Council of Farmers. Export Support Fund of small business and private entrepreneurship is nongovernmental institutions in the form of a legal entities, it is only service and support a small and private businesses and farms.
3. In Uzbekistan by the end of 2016, the volume of exports of agricultural products planed to increase twice. The implementation of the resolution November 20, 2013, the Cabinet of Ministers of the Republic of Uzbekistan "In 2014, production fruit and vegetables, potatoes, melons and grapes and about the use of forecast parameters", as well as in order to create additional facilities to the entrepreneurs the implementation of the export of fruit and vegetables the practice customs clearance was introduced in region which fruit and vegetable products grown[1].
External economic relations, including the export promotion and incentives aimed at regulating established according to Tax Code, Customs Code, "Customs Tariff Law", decrees and decisions of the President of the Republic of Uzbekistan, as well as the decisions of the Cabinet of Ministers of the Republic of Uzbekistan. Accordance with the law the following tax benefits and advantages for the export companies:
- In accordance with Article 230 of the Tax Code, excise tax is not for excisable goods, by their manufacturers for export sales. Established by the Cabinet of Ministers of the Republic of Uzbekistan some types of excise goods are except.
- In accordance with Article 212 of the Tax Code, value-added tax for export sales turnover goods in foreign currency is zero rate (Except precious metals).
1 Продовольственная безопасность. Агробизнес - Россия. № 11 . 2008. с 23
- "On additional measures to stimulate the manufacture of export products" according to the decree of President of the Republic of Uzbekistan dated June 5, 2000, for exporters the rate income tax, property tax and the single tax reduced the total sales volume of own production and goods (works, services) in connection with the share of exports which sold freely convertible currency. Taxes are reduced the share of exports from 15 per cent to 30 per cent - 30 per cent; exports accounted for 30 percent or more - 2 times.
- In accordance with the decree of March 28, 2011 President of the Republic of Uzbekistan, textile industry was exempt from paying property tax, which the volume of its product, including 80% of semi-finished products (yarn, fabrics, knitted fabrics and cotton spinning waste) and sells more freely convertible currency.
- According to the decision August 25, 2011 President of the Republic of Uzbekistan "Further measures to improve elimination of bureaucratic barriers and freedom of entrepreneurship" the new rates was approved customs clearance fees the current rate is reduced 2-fold which paid to the export of goods.
The analysis shows that, the issue of production fruit and vegetable, recycle and exports part of the domestic consumption of more than, the integration of the sector in foreign markets has been limited the focus of constant attention of the government towards and despite the favorable opportunities in this area that is the following issues:
- to deep modernization the production of fruit and vegetables sector, renewal issues of technical and technological are not yet complete solution in the republic.
- varieties and seeds lack of fruits and vegetables, melons and grapes for a long time and opportunities for long-distance transportation.
- the opportunities beautiful packaging and improvements design of agricultural products should not use it enough;
- special cold storage capacity fruits and vegetables which allows to keep the same temperature throughout the year not enough to satisfy the demand.
- many farmers are not able to reliable information channels and the necessary knowledge and skills about prices in the world markets, conjuncture and competitive environment, export operations procedures, applicable laws and regulations on world markets and rules,
- consulting and services, infrastructure which export assistance agricultural products not enough developed the republic.
The development of the economy one of the main objectives of the farm-implementing the production of high-quality and competitive products and its export-oriented on the basis of effective use of natural factors, material and technical resources. At the same time, this process provide to improve farm incomes and to update the material and technical base.
One of the most important ways increasing the incomes for farms and processing enterprises engaged foreign economic activity. Today in the republic businesses, in particular, farming activities in this regard created favorable conditions and benefits.
Farms plays a significant role production at the fruit and vegetable products and increasing export potential.
Produced vegetables, fruit and grapes will be a large part consumed by the population the country. In particular, in 2014, a total of grown 80.0 % of vegetables, 75.5 % of fruits and 67.9% of the grapes consumption by the population. the remaining of the agricultural products distributed seeds, processing and export[3]. In particular, in 2014, oriented processing 15.8 % of vegetables, 20.8 % of fruits and 24.8% of the grapes. The share of exports in the total amount of fresh fruits and vegetables remained at a low level. For example, in 2012, exports produced 2.6 % of vegetables, 7.7 % of fruit and 6.9% of the grapes, in 2014, these indicators of the 2.4 % of vegetables, 3.7% of fruits and 7.3% of the grapes. Evidently, The share of exports reduced in 2014 compared to 2012, that is total product structure 0.2 % of vegetables, 4.0% of fruits and 0.4% of the grapes.
This is the main reason increase exports of finished products with high added value great attention is paid on the basis of deep processing of raw materials in the republic and increased significantly the level of processing of fruits and vegetables.
Uzbekistan's agriculture have enormous export potential, grown fruit and vegetables can take place in the world markets. According to the data of "Food and Agriculture Organization (FAO)" in 2013, Uzbekistan entered the highest "20-up" in the countries into World food markets by 12 different kinds of products (table 2).
In recent years, the volume of exports of fruit and vegetables are growing every year in the republic. According to the Ministry of Foreign Economic Relations and the Ministry of trade and investment, fruit and vegetable products exports 592.0 thousand tons in 2015, in 2016 it amounted to 1400.0 thousand tons in the republic.
In the future, the value of exports of fruit and vegetables planned to 3 billion. US dollar. For this purpose, the production of fruit and vegetable products the solution additional allocation. In particular, according resolution of President of the Republic of Uzbekistan of December 29, 2015, "The measures to deepen and the development of reforming agriculture the period of 2016-2020" between 2016-2020
reducing 170,8 thousand hectares of cotton area and 50.0 million hectares irrigated fields of wheat. In return, tasks to increase 36.0 thousand of potato area, of 91.0 thousand of vegetables area and 18.0 thousand hectares of intensive gardens area. Increase the production volume that is 931.0 thousand of potato, 3002.2 thousand of vegetables, melons 648,6 thousand and 273.9 thousand tons of fruits. As a result, as well as with full coverage demand for fruit and vegetable products to be created regular increase in exports and a firm place in world markets. In country created guarantees, customs, tax and benefits system for export enterprises, farms, small business and private entrepreneurship in order to create a favorable business environment.
Table 2. The share and the role occupies in the world of the export of Uzbekistan's agricultural products in world food markets[4], 2013
The volume of exports The role The value of Instead of
Types of products Compared of total, occupies export exports, the value of
% volume US dollar exports
Apricot 58 260,0 16.25 2 54277 3
Dry fruits 40 494,0 7.25 4 32246 10
fresh fruits 66 800,0 2,81 5 66000 11
cherry and mountain plum 42 014,0 5,8 6 27862 10
Dried apricots 1 689,0 1,15 6 2753 11
Cucumber 49 813,0 2,04 8 26262 13
Cabbage 61 122,0 3,02 8 16166 12
wet vegetables 83 933,0 2,9 10 52075 14
Raisins (dry grapes) 17 194,0 2,28 11 19862 14
Grapes 120000,0 2,8 12 115000 16
Carrots and turnips 31 760,0 1,34 17 12482 14
Peach 14 540,0 0,77 20 15600 19
Source: http://faostat3.fao.org/download/T/TP/E
In the future, for increasing the export potential of the country, foremost, to review critically once again being provided benefits system, additional measures must be taken on the reduction of tariffs, for further simplification of customs procedures and their implementation, reduction of terms and to carry out foreign trade operate. Issuance of electronic forms introduction all documents in connection with the export of products and licensing procedures [ 2].
According to the results of the analyzes the process of integration into the global food market of Uzbekistan improvement commodity and geographical structure export of agricultural products plays an important role.
Learning experience of a great location world food markets, shows that diversification their exports of agricultural products. Increase significantly One or more of the share of goods exports that is exporting companies can remain in critical condition which the lower the price of these goods or in case of reduced external demand. As a result of the reduction in the volume of exports may face to decrease in foreign exchange earnings, worsening foreign trade balance and the financial state of crisis.
In our view, special attention for its intended purpose to expand the geography of exports improving the competitiveness of the market the country's agricultural production. Because, the volume of exports binding of the few countries are conspiracies condition. For example, the geography of export large countries will be able to prosper which the emergence of disputes between countries, that is political or other circumstances change, technical, environmental, sanitary and phytosanitary requirements or used in limited circumstances due of the economic sanctions. Previously, Uzbekistan exported fruits and vegetables in a traditional way CIS, mainly Russia and Kazakhstan, recently growing demand in the markets of Europe and Asia. Within the next 2 years, The geography of delivery expanded due to the Norway, Thailand, Vietnam, Malaysia, Indonesia, Brazil, Cyprus, Macedonia, Chile, Japan, Romania, Slovakia, Bulgaria, Canada and the US.
According to the expert analysis, these conditions despite a wide range of measures are being undertaken the dynamic development of fruits and vegetables in republic remained a number of problems still hindering foreign market:
- first, the international quality standards no enforced;
- second, the training of personnel, first of all, they operate in foreign markets, to search specialized professionals and the involvement;
- thirdly, the underdeveloped infrastructure, in particular the lack of cold storages (currently 4.4% of the storage capacity available in fruits and vegetables and melons) specialized in the export of agro-logistics centers for failure to establish a single system and the failure of the introduction of market mechanisms;
- fourth, to output foreign markets related to complex transport and logistics;
- This partial can be explained there is no direct access to sea ports of Uzbekistan and therefore the high costs of transport.
- fifth, not set up a modern marketing system that is to search partners, to participate in the exhibition and fairs, to study new markets, to improve sales system, the improvement the appearance of the products and of packaging.
Need to give special attention to the following the competitiveness and to increase the export potential of farms:
- further strengthening attention new productive and competitive, the creation of varieties of soil and climatic conditions of the regions of agricultural crops;
- the creation of further development Innovative techniques and agro-technology in agriculture;
- to grow agricultural products in accordance with the requirements of the international quality standards and packaging in accordance with the requirements;
- improvement stimulating economic mechanisms developments of farmers capable of cultivation high-quality export-oriented of agricultural products;
- expansion special cold storage capacity which allows you to keep the same temperature Fruit and vegetables during the year;
- improvements long-distance transportation system using the refrigerators fruit and vegetables;
- increase knowledge and skills the majority of farmers and peasants about applicable laws and rules and regulations of world markets;
- need further improvement to promote the production of agricultural products for export consulting, services and infrastructure in the republic.
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