Analysis of potential for cultivation of licorice in Karakalpakstan and Khorezm

About
project

Analysis of potential for cultivation of licorice in Karakalpakstan and Khorezm

Client: The Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ)

Start date: 09/2021

Completion date: 12/2021

Country and location

Uzbekistan Tashkent

Donor

GIZ

Duration of assignment

3 month

Description of project

On behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), the Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ) is implementing the regional project “Ecologically Oriented Regional Development in the Aral Sea Region” (ECO-ARAL). The project supports four regional administrations of the Aral Sea region in Uzbekistan (Republic of Karakalpakstan and Khorezm Oblast) and Kazakhstan (Kyzylorda and Mangistau Oblasts).

Direct beneficiaries are farmers, owners of Micro, Small and Medium Enterprises (MSME), universities, local administrations and cadaster agencies and others. Focus lies on cross-border cooperation, increasing resource efficiency in different economic sectors as well as capacity building in the use of GIS in territorial planning. ECO-ARAL proactively additionally supports the dissemination of knowledge and awareness on the ecological situation in the Aral Sea Region.

Wild liquorice is growing in Karakalpakstan on 70.000ha being harvested by the local population. The objective of the tendered service is to conduct a study of the economic potential and ecological impact of introducing sustainable cultivation of liquorice in the target Karakalpakstan & Khorezm in Uzbekistan, the processing of raw material and export to European Markets. Currently, most of the produced liquorice is harvested wildly, not processed in the country and exported as raw material. Intensive and unregulated harvesting of liquorice plants is a major direct pressure on this important resource. Excessive and unregulated collection poses a risk to the sustainable use of the plant.

The contractor explores the potential for extending and increasing the sustainability of the value chain of liquorice and to increase export opportunities to the European market without use of intermediaries and potential of ecosystem restoration through cultivation of liquorice in barren lands. The project will provide initial contacts to private enterprises and business associations.

The objective of the consultancy is to assess the potential to increase the value of raw liquorice through increasing process capabilities, securing the sustainability of the resource by moving from wild collection to cultivation, assessing possible restoration of degraded land and analyzing the market requirements and potentials.

Description
of project

01

Conduct assessment of the potential areas for cultivation of liquorice: Consider feasibility of cultivation regarding quality of land, water supply, accessibility and restoration of barren land

02

Assess and define climate change vulnerabilities and environmental impacts (e.g. water consumption, soil degradation and possible restoration, inter-cropping) to address both environmental and economic soundness

03

Potential use of waste product in liquorice production in other agricultural sec-tors (e.g. as biomass for production of artemia)

04

Assessment of ecological and economical possibility of supporting sustainable harvesting of wild liquorice while parallelly initiating the cultivation of liquorice; Showcase most ecological and feasible way of cultivating liquorice in the regions

05

Needs assessment of liquorice companies in the countries including potential for upscaling of operations

06

First assessment of needed capacity development of farmers, processors and mechanisation needs to cultivate liquorice (from preparing fields to harvest)

07

Explore European market by analysing the demand side by parameters of origin of import, destination of export and locally (Europe) sold liquorice

08

Explore the domestic market of Uzbekistan by analysing current supply parameters to international markets: Volume of harvest, volume of export, price and processing of ex-ported liquorice.

09

List key indicators of liquorice production in the Khorezm Oblast and Karakalpakstan in Uzbekistan for the years 2019 & 2020 including: volume of raw material harvested; raw material exported; destinations of export of raw material; export price for raw material; state of processing; export volume of processed material; content of Glycyrrhiza acid

10

In this context, a list of possible and current export destinations, and what quality of exported products (raw and processed material) is required

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