Livestock and Market Development Project (LMDP)

The goal of the Livestock and Market Development Project 1 and 2 (LMDP-1 and LMDP-2) is to contribute to the reduction in poverty and enhanced economic growth in pasture communities in Naryn, Issyk-Kul, Osh, Batken and Jalal-Abad Oblasts of the Kyrgyz Republic.

The LMDP development objective is to improve livestock productivity and to enhance climate resilience of pasture communities in the Naryn, Issyk-Kul, Osh, Batken and Jalal-Abad Oblasts that will be reflected in improved and equitable returns to livestock farmers, which should ultimately lead to reducing the poverty and increasing economic growth in rural communities.

The Project tasks include: 

  • to introduce effective and sustainable pasture management based on participation of rural communities;
  • to improve pastures and their infrastructure;
  • to increase productivity in the livestock sector;
  • to reduce animal diseases that threaten human health;
  • to improve and extend an access for farmers and the rural population in general to various types of agricultural support services.

Total Project cost makes USD 65,3 mln. 

ARIS budget

USD 37,6 mln


International Fund for Agricultural Development (IFAD):

USD 28,4 mln
(including USD 16,7 mln - Loan and USD 11,7 USD Grant)

Adaptation for Smallholder Agricultural Programme (ASAP):

USD 9,2 mln

GoKR contribution:

USD 0,7 mln to cover taxes

Contribution of communities:

USD 10,0 mln

Main Project Target Groups: 

  • vulnerable households, primarily among small-scale livestock producers;
  • women-headed households, and women;
  • other livestock producer households;
  • private veterinarians (PVs).

Project implementation period: 2013–2021

LMDP consists of 4 Components:

Component 1: Community Pasture Management and Reduction of Vulnerability

The main objective of the Component is to expand access to more productive and climate-resilient pastures for small producers. The objective will be achieved through sustainable and community-led natural resource management that should increase access to additional forage base. The Component consists of two Subcomponents:

Subcomponent 1.1: Community Risk-Mitigation Pasture Management and Investments
This subcomponent will improve the productivity, use and access to pastures located within the areas of selected Pasture Users Unions (PUUs) through financing to be provided to support the following activities: (1) legal and regulatory reform; (2) pasture inventory and boundary demarcation; (3) improvement of Community Pasture Management and Use Plans (CPMUPs); (4) Policy Dialogue on Climate Change Adaptation; (5) Community Seed Fund (CSF) Program for forage crops.

Subcomponent 1.2: Institutional Strengthening of Pastures
Under this Subcomponent, the capacity of national-level organizations will be strengthened and built in order to develop the staff of technically qualified specialists in pasture management and improvement. Therefore, assistance will be provided to (i) the Pasture Department; (ii) the Kyrgyz Agrarian University; (iii) the Livestock and Pasture Research Institute in the area of research, training and other related activities; (iv) Kyrgyz Pasture Users Association "Kyrgyz Jaiyty" (AKJ); (v) support the Raion Agrarian Development Departments (RADD) under MAFIM of the KR; and (vi) establishing and implementation of the Early Warning System (EWS).

Component 2: Animal Health and Livestock Productivity Services

The key objective for the component is to increase access to livestock and veterinary services for smallholder producers resulting in decreased mortality and increased productivity of sheep/goat flocks and cattle herds due to the reduced incidence and prevalence of diseases. The component has three subcomponents:

Subcomponent 2.1. Strengthening Veterinary and Community Animal Health Services
The sub-component provides the means to develop a technically competent and financially sustainable private veterinary service together with continued support and training the Animal Health Sub-Committees (AHSCs). The AHSCs will assist to Jaiyt Committees of PUUs to develop and implement a plan on animal health activities within the PUU area that come as a part of Community Pasture Management and Using Plans (CPMUPs).

The Subcomponent 2.1. includes 3 activities: (i) Community Based Animal Health Worker (CBAHW) survey; (ii) Establishing and Strengthening AHSCs, and (iii) Community Veterinarian Capacity Building.

Subcomponent 2.2. National Disease Control Program
This Subcomponent mainly includes the following three key activities: (i) legislative framework - legal and regulatory reform of Veterinary Law; (ii) Vet medications and drugs control; and (iii) National disease control strategies.

Subcomponent 2.3. Animal Health Education and Capacity Building
This sub-component focuses on providing the technical and financial support necessary to produce young veterinarians motivated to work in targeted communities. The Subcomponent includes the following investment activities: (i) needs assessment and improvement of the veterinary education program; (ii) veterinary education and training; (iii) student incentive program; (iv) professional development and training; (v) support for priority research at the Kyrgyz Veterinary Research Institute (KVRI).

Component 3: Diversification and Milk Value Chain Development

The objective of this Component is to enable livestock producers in the targeted communities to expand their milk production to meet market demand and thereby achieve improved returns from their dairy animals, as well as to introduce additional viable income-generating activities that would increase the resilience of poor vulnerable groups, mainly, women.

Subcomponent 3.1: Program Development and Implementation
This subcomponent will assist ARIS in implementing Component 3 by providing funding for (i) hiring and engaging an international business and marketing specialist who, among other things, will work in close cooperation with ARIS to develop the terms of reference, bidding documentation and draft contract to be concluded with a specialized business service provider who will take responsibility for the implementation of this component's activities under the supervision of ARIS; and (ii) concluding a contract with a specialized business service provider mentioned above, who has extensive experience in business/market development and specific knowledge and skills in animal husbandry, preferably in the dairy sector.

Subcomponent 3.2: Investments in the Milk Value Chain
The second subcomponent will focus exclusively on the milk value chain in order to increase the cost of milk produced by supporting two initiatives: (1) establishing milk collection and cooling centers based on partnership agreements with milk processing plants; and (2) supporting women's groups in setting up small-scale enterprises for milk processing, focused mainly on the production of high-quality traditional products.

Subcomponent 3.3: Diversification of Income Sources to Reduce Vulnerability
Activities within this subcomponent include support for diversification of income sources, as a means of adaptation and assistance to livestock communities with innovative income-generating activities in collaboration with private and/or public partner enterprises, mainly focusing on women, which will allow to integrate income from livestock activities. Under this Subcomponent, the main initiatives to be financed are: (1) solar greenhouses to produce vegetables and horticultural products, which will meet the demand not only from communities, but also from the rapidly developing sector of national and international tourism; (2) multifunctional solar dryers or electric dryers to dry fruits, herbs and aromatic plants.

Component 4. Project Management

The goal of this Component is to ensure effective LMDP management. An Agricultural Projects Implementation Unit (APIU) under the Ministry of Agriculture, Food Industry and Melioration (MAFIM) of the Kyrgyz Republic bears overall responsibility for the Project. The APIU is responsible for implementation, coordination, control and reporting to IFAD and the Kyrgyz Government, including keeping close liaison with ARIS.

ARIS is responsible for implementation of all Project aspects, where the communities are involved and for administration of grants at the level of PUU, AHSC, PV and etc.