An American investor intends to expand a vegetable processing plant in Qashqadaryo

American investor intends to expand vegetable processing plant in Qashqadaryo

The American company Wosune International plans to bring the volume of investments directed to fruit and vegetable processing in Qashqadaryo region to $50 million. A representative of the company announced this on October 21 during President Shavkat Mirziyoyev's visit to the Wosune Food Ingredients Karshi enterprise located in the "Qashqadaryo" free economic zone.

Initially, $8.5 million was invested in this enterprise, which produces ingredients for the food industry. According to the investor, the project consists of two stages, with the total investment volume amounting to $50 million.

"By dehydrating vegetables, we produce high-quality products that meet the requirements of the international market. Our products are intended for delivery to the US, Indonesia, and European countries, including major international companies such as Nestlé and Mars," he said.

The plant processes carrots, bell peppers, pumpkins, apples, green onions, spinach, and various herbs. The resulting ingredients are used in the production of instant noodles and soups, spices, canned foods, and cosmetic products.

For this purpose, convection equipment is used, which allows preserving the natural taste and nutritional properties of the products. Approximately 30 percent of the production processes are automated with robotics. 150 permanent jobs have been created at the enterprise.

Once the production capacity is fully commissioned, the plant can process up to 310 tons of raw materials per day. According to the investor's calculations, the annual turnover will reach $40 million.

In the report of the presidential press service, this sum is presented as the planned annual export volume. It was noted that international brands Nestlé and Purina are also among the expected buyers. Information regarding signed contracts and agreed delivery volumes was not provided.

It was also stated in the TV report that the enterprise's initial export target is $20 million, with plans to increase the volume of foreign deliveries to $45 million by 2029.

The representative of the American company outlined three reasons for choosing Uzbekistan to implement the project: economic reforms, the country's geographical location, and the agricultural potential of Qashqadaryo region.

"Uzbekistan's geographical location provides an important advantage in accessing international markets. There is an opportunity to deliver our products to the Port of Hamburg in less than two weeks, and to access other markets via Istanbul," he said.

According to the presidential press service, the enterprise is already exporting products to Russia, Europe, and CIS countries.

During the visit to the plant, issues of supplying the enterprise with local raw materials and expanding cooperation with farms were discussed.

Azizbek Urunov, Chairman of the Food Safety Committee, emphasized that the processing enterprise will allow agricultural producers to earn additional income, including from products that remain unsold in the regular market.

"There are three main beneficial aspects to this project. First, it provides additional income for our farmers and agricultural workers. Because after selling their non-marketable products here, they receive additional income. Second, processing itself is organized here, and our local population is provided with employment. And another very important side is that the finished products resulting from processing these items — by processing carrots, processing onions, processing bell peppers — give us the opportunity to export them to the American market, the European market, and the Southeast Asian market, including Singapore, Indonesia, and Vietnam," he said.

According to him, Qashqadaryo region exports nearly $130 million worth of fruits, vegetables, and other agricultural products. According to the presented calculations, creating similar processing projects nationwide could generate an additional $200 million in exports.

During the discussion, Mirziyoyev set the task of organizing the cultivation of export-oriented agricultural products on an area of 30,000 hectares. Regional and district administrations must study the available land capacity, identify promising land plots, and prepare proposals for putting them to work in cooperation with processing enterprises.

The president also stressed the need to conclude direct contracts with farmers, support them through advance payments, and create conditions for harvesting two to three times a year.

In addition, issues of improving water supply, installing pumping equipment, and using alternative energy sources were considered.

According to Mirziyoyev, the relevant decision must be prepared within a month. He also instructed officials to consider opportunities for further expanding production.

The official report of the presidential press service states that the cultivation of fruits and vegetables on an area of 3,500 hectares is envisioned to supply the plant with raw materials.