Government to introduce new subsidies and tax exemptions to boost livestock production

Under the new regulations, the Agency for Payments in the Agricultural Sector will distribute state budget funds to cover these subsidies. Households will receive UZS 500,000 for each pedigree calf obtained through artificial insemination and UZS 700,000 for calves produced via embryo transfer.

The decree introduces additional fiscal measures to support the industry, including a value-added tax (VAT) exemption on imports of pedigree cattle, sheep, and goats from June 1, 2026, until January 1, 2029. Furthermore, commercial banks will offer specialized, long-term loans at an annual interest rate of 10%, which includes a 4% bank margin, with a four-year grace period and a maximum maturity of 10 years.

These concessional loan packages are allocated for specific development streams:

• Projects aimed at setting up livestock complexes and purchasing pedigree large and small ruminants can access up to UZS 5 billion.

• Businesses establishing enterprises for breeding-bull semen production can secure up to UZS 20 billion to cover construction, equipment, and livestock acquisition costs.

• Entrepreneurial projects utilizing funds from international financial institutions secured under state guarantees will also receive a fixed annual rate of 10%.

The structural reforms also extend to land management. Starting from the 2027 harvest, agricultural organizations will be permitted to reallocate 50% of leased land originally designated for cotton and grain cultivation to grow fodder crops, leaving the remaining half for cotton and grain production.

These measures follow a mid-May review meeting chaired by the president regarding livestock support and are tied to a broader development strategy for 2026-2028. The government aims to expand the national livestock population to 16.5 million head of cattle, 30 million sheep and goats, and 141 million poultry. The long-term objectives focus on raising industrial meat and dairy processing levels to 50% and increasing the share of pedigree cattle nationwide to 90%.