Determinants of Kyrgyz Livestock Sector Competitiveness in the Markets of Eurasian Economic Union States

Abstract

Livestock sector for Kyrgyzstan is a long tradition of economic activities that takes considerable part in international trade. However, during the last years it faces with the new trade conditions effecting whole sector. For this reason it worthy to reveal hindering and stimulating export determinants. Qualitative investigation of the factors influencing competitive advantages of Kyrgyzstan’s livestock products on the market of EAEU was conducted. Before proceeding with the determinants of competitiveness, the Lafay method of competitive advantages allowed to reveal product categories that were able to sustain their niche on the foreign market. Dairy product groups, live animals, and meat products were able to compete in the EAEU market for eleven years. The semi-structural open ended questions of exploratory interviews gave a broad understanding of subject matter. Stakeholders facilitated to shed a light on the factors of competitiveness. It was found that there are two groups of influencing factors as external and internal. Within external group, the poor development of transport logistics hinders development of competitive advantages. Underdevelopment of logistics is caused by problems in all dimensions referred to logistics. The situation can be changed with attraction of private investments for prompt construction of trade and logistics centers at all levels. Legal and regulatory aspects alike possess to be barrier for improvement of livestock products competitive advantages in the Union’s market. Quite rigid veterinary control prevents domestic producers’ presents in the market. Organization of consulting services for farmers that directed toward familiarization with requirements and procedures needed for export and acceleration of laboratories accreditation are going to enhance regulation area. Similarly, internal factor of production capacity hinders improvement of competitive advantages. Extensive growth of production, deteriorated system of animal breeding, and contracting feeding base are contributing to underdevelopment of sector. Accessibility to financial resources is more stimulant rather than barrier for competitiveness. Extended governmental program along with the provision of funds by the Russian-Kyrgyz Development Fund are improving accessibility of financing to farmers. Yet, there is a huge field for enhancing actions expressed in more favorable terms, even interest-free financing for farmers. Finally, the interaction system between governmental agencies and farmers prevents development of competitive