Promoting Agricultural Value Chain Integration in Central Asia and the Caucasus

Abstract

Despite its importance, the output of the agriculture sector in Central Asia and the Caucasus region has not reached optimum levels due to the limited market base and narrow range of agro-food products. One strategy to address this issue is to develop an integrated agricultural value chain through consolidation, agglomeration, and specialization. To effectively integrate agricultural value chain in the region, there is a need to overcome the key challenges in the upstream, midstream, and downstream levels of the value chain, from delivery of vital agricultural inputs to distribution of agrofood products. Two possible strategies are proposed: greater involvement of the private sector through public–private partnership schemes, and development of the agriculture and agribusiness sectors concentrated around major economic corridors.