Tashkent, Uzbekistan (UzDaily.com) — The International Fund for Agricultural Development (IFAD) and the government of Uzbekistan have launched a new US$47.4 million investment project in Washington, aimed at supporting vulnerable dairy farmers.

The project, titled Dairy Value Chain Development Project – Phase II (DVCDP II), seeks to enhance the income potential of dairy farmers and strengthen food security across five regions of Uzbekistan.

Building on activities in Jizzakh and Kashkadarya regions, the project will expand to include Syrdarya, Samarkand, and Surkhandarya regions. Its goal is to improve rural livelihoods through developing the dairy value chain, increasing productivity, and supporting sustainable growth among small-scale dairy producers. Approximately 31,000 households are expected to benefit from the project, with about 40% of participants being women and 30% youth.

The project also aims to support vulnerable groups, including persons with disabilities and returning migrants. IFAD President Álvaro Lario emphasized that the initiative helps the most vulnerable dairy farmers gain access to resources and markets, contributing to a more inclusive and resilient rural economy.

DVCDP II builds on the success of the first phase of the project implemented from 2017 to 2023, which reached 117,367 households in Uzbekistan with total funding of US$50 million. IFAD’s investments in horticulture and dairy farming have attracted interest from the private sector and international partners seeking to transform agricultural markets.

In response to global challenges such as conflicts, water scarcity, and inflation, IFAD continues its mission to empower rural populations. Over the past decade, IFAD's investment portfolio in Uzbekistan has significantly grown, with total funding reaching US$480.36 million, benefiting more than 550,800 rural households.