Ministry of agriculture of republic of uzbekistan karakalpak insititute of agriculture and agrotechnology

MINISTRY OF AGRICULTURE OF REPUBLIC OF UZBEKISTAN


KARAKALPAK INSITITUTE OF AGRICULTURE AND AGROTECHNOLOGY
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Independent Work
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Theme: Fruit and vegetable growing in Uzbekistan
Plan:

1. Why Fruit and Vegetable Production is Not Fruitful for Uzbek Farmers?

2. Fruit and vegetable growing in Uzbekistan
3. Main results and Discussion Fruit and Vegetable Variety

Why Fruit and Vegetable Production is Not Fruitful for Uzbek Farmers?

Abstract
The natural and climatic conditions of the country provide ample opportunities for the development of fruit and vegetable production and food processing industry. Unfortunately, institutional transformations in agriculture in the past have promoted significant growth of cereal production, but not fruit and vegetable growing. As a result, consumption of healthy food in Uzbekistan is constrained by its seasonal and spatial availability and considerable price differences throughout a year, especially for rural population during off-season, and only highincome earners consume fruits and vegetables. Inadequate consumption of fruit and vegetables is among leading risk factors for public health in Uzbekistan. The purpose of this research is to investigate the existing constraints and opportunities to improve the availability and accessibility of fruit and vegetables as a key determinant of healthy diet. What hinders activities of fruit and vegetable producers in Uzbekistan? What policies should be used to increase year-long fruit and vegetable supply in Uzbekistan? A tabular analytical technique was used to qualitatively analyze the existing constraints for efficient fruit and vegetable production. Using a structured interview method, a sample size of 100 fruit/vegetable farms was selected randomly and disproportionally based on the master frame lists provided by the local authorities. The area covered included five districts in Tashkent province. Despite favorable geographical and climatic conditions, production of fruit and vegetables is constrained by various factors such as imperfect input and output markets, distribution system failures, low consumer demand, problems in financing and credit. The mechanisms to improve the current situation include reduction of bureaucracy and abuse of powers by public authorities, shift from planned system to market-oriented system of agricultural production, removal of export restrictions, better marketing research, knowledge capacity development, investment in new equipment, technologies and infrastructure, development of agricultural extension services and more effective work of associations and councils.
Introduction and Research Questions Tashkent province is located in the north-eastern part of Uzbekistan, between the Syrdarya River and Tien Shan Mountains. The capital is Tashkent, which is also the capital of the country, and is governed separately from the province as an independent city. The climate of Tashkent province is continental with mild wet winters and hot dry summers. Agriculture is one of the leading sectors of the province’s economy. Six districts (Ohangaron, Bustonlik, Zangiota, Kibray, Parkent and Yangiyul) out of total 15 specialize in producing fruit and vegetables, other districts are engaged in cultivation of cotton and wheat. The natural and climatic conditions of the country provide ample opportunities for the development of fruit and vegetable production and food processing industry. Unfortunately, institutional transformations in agriculture in the past have promoted significant growth of cereal production, but not fruit and vegetable growing. As a result, consumption of healthy food in Uzbekistan is constrained by its seasonal and spatial availability and considerable price differences throughout a year, especially for rural population during off-season, and only highincome earners consume fruits and vegetables (ASKAROV and NUPPENAU 2010; UZBEKISTAN ECONOMY 2006; MUSAEV et al. 2010). 3 Reciprocal determinism asserts that environmental and personal factors can dynamically interact with behaviors, such as fruit and vegetable consumption. There is some evidence that availability of fruits and vegetables (an environmental factor) (BERE and KLEPP 2005; CULLEN et al. 2003; GRANNER 2004) may increase fruit and vegetable intake. Given the importance of healthy diet and especially the adequate intake of fruit and vegetables, the current state of inefficient agricultural production in Uzbekistan has serious adverse consequences on the yields of fruit and vegetables, and thus on income of such farmers, and would raise the prices paid by consumers of such food products, especially in offseason. The purpose of this research is, therefore, to investigate the existing constraints and opportunities to improve the availability and accessibility of fruit and vegetables as a key determinant of healthy diet. And research questions may be formulated as follows: What hinders activities of fruit and vegetable producers in Uzbekistan? What policies should be used to increase year-long fruit and vegetable supply in Uzbekistan?

Data and Methods A tabular analytical technique with the help of percentages, averages and ratios was used to qualitatively analyze the existing constraints for efficient fruit and vegetable production. As for data, a structured interview method was chosen as it allows tailored data collection and enables getting the data which are not available in open access. As a matter of fact, data access remains a big issue in Uzbekistan. The farms which are producing fruit and/or vegetables were chosen as a target population for this survey. The area covered included five districts in Tashkent province, as the regional horticulture and vegetable growing is mainly concentrated in these districts due to their climatic and geographical peculiarities. Based on the master frame lists provided by the local authorities (totally, 2,332 farms), a sample size of 100 farms was selected randomly and disproportionally. As a result, the sample size of 100 farmers has Confidence Interval 9.59 at 95% Confidence Level. Actual on-site survey started on December 25, 2013 and finished on March 20, 2014. During this period a total sample of 100 farms was interviewed. Besides, expert interviews with representatives of local government (Khokimiyat), Farmers’ Council, agricultural experts, scientists and civil society were conducted.
Main results and Discussion Fruit and Vegetable Variety Within the sample, the farmers produced the basic fruit crops (grapes, apple, plum, sweet cherry, etc) and vegetables (onion, potato, tomato, carrot, pumpkin, etc). Greenhouse production of vegetables is mainly concentrated on tomato and cucumber growing. Green leafy vegetables are not the target crops for commercial farmers and the main supply of such crops in the market is provided by dehkan households. Besides, almost all dehkan households grow basic fruit and vegetables at their garden plots. Inter-relationships between Farms and the State There is still planned system of distribution of agricultural production by authorities (so called razmesheniye, meaning ‘placement’) based on the preliminary forecast of production carried out by the farmers themselves and in accordance with the development of priority sectors of agriculture. As a side effect of razmesheniye system, farms often fulfill the state plan "on paper", namely, they provide the necessary funds turnover for each mandatory crop production at the expense of production of other, more profitable crops. In general, farmers agree to follow the state production plan, but only on condition that its further efficient and profitable implementation and marketing is maintained. Based on the survey data, decisions for around 40 per cent of the production volume are made by famers themselves, and the rest 60 per cent – based on agreement with Khokimiyat. That shows a low level of farmers’ independence. 5 There are cases when tax authorities intervene in the activities of farmers through receiving information from other state bodies about the crop production and using such information for taxing farmers. Among other negative interventions by authorities, the farmers name the imposition of additional duties which are not a core business for farmers, such as mandatory participation of farmers in cotton-harvest picking and financial contribution for construction of local infrastructure. Sponsorship and charity forced by authorities cost a considerable amount to farmers in 2013 (3.8% of total expenditures).
Co-existence of various regulators (such as provincial departments of agricultural and water resource management, provincial and district representative offices of Farmers’ Council, water consumers’ associations, agrofirms, etc) creates a polycracy system where each stakeholder claims for the lead role. Despite a fairly high number of membership in various associations (that is mainly forced by the state-led policy), it is not clear, whether such membership is useful for farmers. For example, capacity building activities and legal consulting are assessed as effective for the farmers, whereas agricultural extension and machinery provision are less effective. Unfortunately, very few farms have links with agricultural research institutions and Chamber of Commerce and Industry. Land Relations According to the Land Code of the Republic of Uzbekistan (1998), land plots can be given to farmers for lease for up to fifty years since land is a property of the State, but not less than thirty years, on the basis of open competition, and letting the leased land (or even a part of it) for sublet is prohibited. Nevertheless, some farmers let their leased land to smaller contractors through either hiring them officially, or by signing a sublet agreement, which is illegal. It happens often that sublease system entails conflicts when subtenants fail to fulfill the state plan that ultimately has a negative impact on the main land leaser under his liabilities to implement the state plan (razmesheniye) for entire farm production. As farmers’ state mainly depends on their geographical location (even at a district level), it is those who have worse access to water resources and fertile soils are the most vulnerable farmers. Some farms are owned by elite groups (mainly from Tashkent metropolitan area), who can have access to better lands due to their economic and political power. Output Market Failures Sudden changes in output prices in the market and low consumer prices are seen by farmers as the biggest risk factor of their activity. In particular, wholesalers and processing companies with their low prices put the farmers in stalemate where the farmers have no other choice but accept such prices, due to lack of output markets. Insufficient marketing research (on average only 0.3 per cent of total expenditures in 2013) and, as a result, inadequate output delivery system also negatively affect the farmers’ activity. In fact, farmers despite their willingness are not able to fully explore the market on their own due to high costs, and alternatives (agricultural extension services, consulting companies, research centers, etc.) either do not exist or they are non-affordable
Labor
On average, the costs for permanent staff account for one third of total expenditures. Average number of permanent staff in the five districts of Tashkent region totaled nine people. The number of hired workers, who are attracted to work mainly during the harvest season, varies from region to region because of different specialization, depending on different level of laboriousness. Unpaid work consists mainly of members of the farmer's family (including children), as well as family members of wage workers who work seasonally on the farm. Seeds The farmers spent 11.3 per cent of total expenditures on seeds and seedlings in 2013. The deficit of local seed varieties leads to a situation where farmers are forced to buy seeds which are imported from abroad. And this import is expensive and only sold for cash in the market, which is very problematic for farmers as they usually do not possess a liquid cash, but non-cash funds. Often these are not quality seeds, which affect the quality of harvest. State control over the imported seed is ineffective. Fertilizers and Pesticides Purchase of fertilizers on average accounted for 7.9 per cent of total expenditures in 2013, and pesticides - 4.8 per cent. There is a lack of biological pest control agents and the knowledge to use them is inadequate. In general, farmers are aware of the preference of biological control agents in comparison with pesticides, but in practice, they increasingly use the latter ones due to a shortage of the former ones. Sanitary conditions are inadequate when selling and using pesticides, their quality is questionable; control over their sale is not carried out by the state, while the prices are very high. All this ultimately affects the quality of production and human health. Farmer noted need to create special units of spraying pesticides on a large scale across different farms, because the processing of only one farm does not solve the problem of pests due to their mobility. Irrigation For irrigation needs the farmers spent less than 2 per cent of their total costs. Such relatively low irrigation fees are explained by poor performance of WCA to ensure effective water distribution. In particular, there is the problem of clogging of canals and drainage water reservoirs. It even goes so far as farmers are forced to use drainage water for irrigation due to lack of water, which adversely affects the productivity and product quality. Management of transboundary waters affects the Uzbek farmers. When Kazakhstan closes the water (at the origins of the Syr Darya), the Uzbek farmers face water shortage. This situation leads to a large water deficit not only at the district level, but also at the regional level. As a result, there is a hostile attitude of farmers from different regions to each other in the management of scarce water resources. Machinery and Equipment There is a high level of obsolete equipment among both farmers and WCA. Another problem is fuel availability. Despite the fact that the state requires all farmers to buy petroleum products from local storage depots under the contract for non-cash payment, even in the presence of the relevant agreement, the tank farms primarily supply the required fuel to producers of cotton and wheat, resulting in insufficient fuel availability for the fruit and vegetable growers. Therefore, the latter are forced to buy fuel and lubricants in the market for cash (which is a financial disorder) at high prices (fuel costs amounted 6.6 per cent of total expenditures in 2013) and the quality is often questionable.
Soil Quality Despite the existence of a legal basis, according to the farmers, no organization is engaged in scientific assessment of soil quality (content of phosphorus, nitrogen, potassium). In contrast, the State Land Cadastre often artificially inflates scores of soil fertility in order to ensure greater quotas on agricultural production and, consequently, increase government revenues due to large tax payments. As a result, payment of a single land tax significantly affects the budget of farms (7.3 per cent of the total costs in 2013). Processing and Greenhouse Production According to the survey, processing of fruits and vegetables is carried out by only 22 per cent of farms. The main type of processed products is dried fruits (apricots, grapes, plums). Despite the low costs of drying fruit, the main factors limiting this type of processing include the absence or lack of free space, low prices for finished processed product in the market, low consumer demand and export restrictions. It should be noted that the production of greenhouse vegetables is not attractive to farmers because gas supply is a pressing problem in rural areas. Foreign Trade According to the survey results, it was obvious that the farmers neither directly import materials or supplies, nor directly export their products. The most correct explanation is the presence of export restrictions that were especially a problem for those who have previously relied on exports when planning their production. With regard to possible mechanisms for the settlement of existing problems, the majority of farmers are in solidarity with the fact that government policies (including the removal of export restrictions and import-substituting production) is the most efficient mechanism. The most effective measures for the development of export called by farmers included the following steps: export market research, creation of export cooperatives by farmers, and the development of centralized exports of fruits and vegetables through the Ministry of Foreign Economic Relations, Investments and Trade (MFERIT). Lending and Financing Farmers are faced with high interest for the loan, the lack of tangible benefits in obtaining loans, the presence of various barriers in obtaining loans, including the existence of informal payments. It should be noted that the adverse situation in obtaining loans directly affects the fact that farmers are forced to rely on personal savings as one of the most effective mechanisms for the resolution of their problems. In addition, any kind of help from informal sources (friends, relatives) is also highly significant for the farmers. Relatively high degree of public distrust is reflected in underuse of potentially effective mechanisms such as membership in cooperatives, participation in commodity exchange and formal insurance contracts. Farmers often do not believe in the effectiveness of such measures, because until now did not receive significant benefits from their use. Capacity Building and Technology Transfer Imperfect system of agricultural education system has a direct impact on the lack of qualified professionals in the labor market. Therefore, measures for training, including practical skills, are of great importance for the development of agriculture.
Investment in new equipment and technology is another mechanism capable to significantly improve the performance of farms. Intensive gardening technology using drip irrigation is served as one of the top priorities. 4 Conclusions Existence of various problems in daily activities of farmers hamper development of efficient system of production and distribution of fruit and vegetables in Uzbekistan. The mechanisms to improve the current situation include reduction of bureaucracy and abuse of powers by public authorities, shift from planned system to market-oriented system of agricultural production, removal of export restrictions, better marketing research, knowledge capacity development, investment in new equipment, technologies and infrastructure, development of agricultural extension services and more effective work of associations. Development of indoor production as well as fruit and vegetable processing are among the most effective ways towards ensuring a year-long supply of such products.


Introduction:Uzbekistan has great potential in fruit and vegetable production. The organization of high-income intensive production in agriculture is theclosest and most effective way to constantly improve the welfare of the population. Taking into account the need to fully use our existing potential and earn a large income, in recent years, this sector has been rapidly reformed in our country.Presidentof the Republic of Uzbekistan Sh. Mirziyoyev said, “The issues of agricultural reform and food security will undoubtedly remain one of the most important tasks for us. First of all, great attention will be paid to the consistent development of the agro-industrial complex and its locomotive, that is, the diversified farms with the driving force "[1].Therefore, in the context of diversification and transformation of the economy, it is important to create the foundations of a multi-sectoral economy in agriculture. The Government of the Republic also pays special attention to the reform of the agricultural sector, the creation of a new structure in its form and content.As noted in the traditional address of the President of the Republic of Uzbekistan Sh. Mirziyoyev to the members of the Oliy Majlis on January 24, 2020: After that, it is planned to export $ 2 billion worth of fruits and vegetables this year and 3-4 times more in the next 5-7 years.This year alone, water-saving technologies will be introducedon 44,000 hectares of land. ”[2] As a candidate for President of the Republic of Uzbekistan, Mirziyoyev also stated in his election program that "the introduction of completely new mechanisms for financing and insurance of cluster enterprises and farms inthe agricultural sector on stable, favorable terms and conditions" [3].Therefore, one of the important factors in achieving the expected results of the current reforms is the formation of a modern management system and its effective
mechanisms in the implementation of reforms in Uzbekistan based on democratic principles, aimed at building a stable economic system-market economy that ensures socio-economic well-being. The main goal of the current socio-economic, financial and structural reforms is to create a modern system of governance and ensure its effective operation.In the process of integration in the agricultural sector, the management of business entities in the integration into a single technological chain is one of the main directions of theprogram of independent Uzbekistan to deepen economic reforms.The sphere of management of property relations in the sectorsof the economy depends not only on the economy of our country,rather, it is one of the most important and key areas of human development in general, as it lays the foundations for financial stability.Ultimately, every business entity with a scientific basis of management contributes to the achievement of the highest peaks of the economy of the state and society by properly organizing economic reforms.Based on the important tasks set out in the Address of the President of the Republic of Uzbekistan Shavkat Mirziyoyev to the Oliy Majlis on December 28, 2018, “Priority attention should be paid to the development and implementation of a program to increase the competitiveness of the economy ....the activities of fruit and vegetable clusters should be comprehensively developed.Given that this area is relatively new to us, it needs to be supported by the state, including the simplification of the credit system, cost subsidies, revision of procedures for land allocation. ”[4] extensive use of tested experiences and ensuring financial sustainability are important.Today, a new stage has begun in the agricultural sector of the country with high scientific capacity, resource-saving, innovative production based on innovative ideas and scientific achievements, competitiveness of the industry in foreign markets, increasing the export potential of agriculture and ensuring food security.Gradual introduction of modern market mechanisms, expansion of the revenue base of local budgets, expansion of foreign economic relations in the Decree of the President of the Republic of Uzbekistan dated February 7, 2017 PF-No 4947 "On the Strategy for further development of the Republic of Uzbekistan" and a number of other normative acts introduction of modern technologies for the production of products and materials for export,It is planned to develop transport and logistics infrastructure, entrepreneurshipand increase investment attractiveness for foreign investors, improve tax administration, introduce modern principles and mechanisms of banking regulation, accelerate the development of diversified farms.President of our country Sh. One of the initiatives put forward in Mirziyoyev's speech at theSCO Summit. was the idea of developing agro-industrial clusters. He noted that our countries support the adoption of a program to stimulate industrial cooperation between business circles.This innovative ideawas quickly recognized by the world scientific community.Then President Sh. Based on Mirziyoyev's direct idea, the uniqueness and novelty of the innovative cotton textile cluster system implemented in Uzbekistan, its strategic importance in improving the quality of life and export potential of thecountry are analyzed in depth, both scientifically and practically.The way for our country to become one of the leading countries in the world is the introduction of cluster systems in agriculture, science, education and other areas.Mirziyoyev, as a candidate for President of the Republic of Uzbekistan, also stated in his election program that "the introduction of completely new mechanisms for financing and insurance of cluster enterprises and farms in the agricultural sector on stable, favorable termsand conditions" [5].The "Development Strategy of the new Uzbekistan for 2022-2026", approved by the Decree of the President of the Republic of Uzbekistan dated January 28, 2022 PF-60, states:
Increase the income of farmers by at least 2 times through intensive development of agriculture on a scientific basis, increase the annual growth of agriculture to at least 5%.➢Specialization of districts to grow a specific type of product.➢Expand the scope of state support in agriculture and implement new insurance mechanisms.➢Development of new and decommissioned 464 thousand hectares and allocation to clusters on the basis of open selection. Reduction of 200,000 hectares of cotton and grain fields and long-term lease to the population on the basis of open competition.➢Development of export-oriented products and fruit and vegetable growing, increasing the area of intensive orchards by 3 times and greenhouses by 2 times, and increasing the export potential by another $ 1 billion. ”[6].Therefore, in thecontext of the transformation of the agricultural sector, the main task of businesses is to quickly adapt their activities to changes in the external environment and to easily solve the problems at their own expense.Based on the experience of developed countries, the organization of management in various forms of ownership in accordance with market principles allows for efficient management.Therefore, in the process of introduction of the digital economy in Uzbekistan, special attention is paid to the rational organization of the management system in various sectors of the economy and increase its efficiency. The Action Strategy for the five priority areas of development of the Republic of Uzbekistan for 2017-2021 includes "deepening structural changes and consistent development of agricultural production, further strengthening the country's food security, expanding the production of environmentally friendly products, significantly increasing the export potential of the agricultural sector." .."Creating favorable conditions for the promotion and development of diversified farms engaged in the processing, preparation, storage, sale, construction and provision of services, in addition to the production of agricultural products, in particular" [7] Therefore,it is important to conduct research on the further development of enterprises in the fruit and vegetable sector, taking into account the activities, functions and principles of agricultural enterprises, which play an important role in the development of the economy.Decree of the President of the Republic of Uzbekistan No. PF-4947 of February 7, 2017 "On the Strategy for further development of the Republic of Uzbekistan", No. PF-5853 of October 23, 2019 "On approval of the Strategy of agricultural development of the Republic of Uzbekistan for 2020-2030" Decree No. PQ-4549 of December 11, 2019 "On additional measures for further development of the fruit and vegetable and viticulture sector, the creation of value chains in the industry", Decree No. PQ-4964 ofJanuary 27, 2021 "Farms, dehkan farms and Additional Measures for Financial Support of Landowners;Resolution of the Cabinet of Ministers of June 22, 2020 No. 397 "On measures to further develop the cotton and textile industry" and June 22, 2020 No. 398 "On measures to organize the activities of cooperatives for the cultivation and processing of raw cotton" Resolution of the Cabinet of Ministers No. 130 of March 11, 2021 "On the organization of state financial support of agricultural producers" and other regulations in other areas will serve in this work to some extent.Literature reviewThe conceptual basis, economic content and main principles of the cluster system have been studied by economists abroad and in the country on the organization and improvement of the management system of cluster activities in the context of the development of the digital economy.The concept of cluster was introduced into economic theory by the American scholar M. Porter, who “explains the essence of the concept of cluster in his book Dominance of Competition (1990), applied theories of local,
national and state competitiveness to the world economy, and the historical and intellectual condition of cluster theory. -analyzes thesituation and sees the competitiveness of the country not through the perspective of individual firms, but through the prism of international competitiveness of clusters of firms in different industries, in particular, the importance of the ability of these clusters to effectively use domestic resources [8]M. Enright, S. Rezenfeld, P. Maskell and M. Lorentsen also studied the concept of "regional clusters", A. Marshall "Theory of industrial zones", P. Bekatin "Theories of Italian industrial districts", M.Storper "Ideal regional cluster". created byValue added and cluster chain compatibility, regional training concepts are also included in this group. British theorists J. Dunning, K. Briman, Schmidt, J. Humphrey) Scandinavian scientists B. O. Lundwall, B.Johnson, B. Asheim, A. Isaacson -point out that the evolutionary development of the cluster goes through a number of stages [9].Cluster theory was studied by Russian scientists IN Garifullin, M.A. Erokhin, N.A.Suleymenov, R.B.Bekov, M.A.Shatalov, A.E.Akhmedov, S.Yu.Mychka Yu.S. BB Khurustaliev et al. [10] also studied and developed projects for implementation.The creation of the above theories and their practical significance implies increasing the competitiveness and high efficiency of the economies of countries, industries and enterprises. In the innovative development of the economy, especially in the current period when traditional methods of economic development are not sufficiently beneficial, the application of cluster theory is the most optimal way. Clustering can also be seen as a neweconomic system that fully meets the requirements of national and regional development in order to increase the competitiveness of enterprises by accelerating their innovative activities and resisting the strong impact of global competition.While the role of the state in the formation of the cluster is important, clusters were initially established only because of the invisible hand of the market (competition), primarily in the modernization of transnational companies, in the current context of globalization, The attractiveness of the cluster strategy, as well as the diversity of directions, requires that innovation clusters be formed by the state itself.On the theoretical aspects and practical significanceof the organization of production on the basis of the cluster system in the Republic MS Yusupov, F.Kh. Nazarova, R.X.Toshmatov, B.Zaripov, M.A.Rahmatov, X.Urdushev, A.Qulmatov, Sh.Kimsanboeva, B.Sindarov, A.Ergashev, B.Sh.Usmonov, F.X.Raximov, It is reflected in the scientific and monographic works of MS Dusmakhamedova, O. Radjapov, AA Mamatov, TT Juraev, E. Kuldashev and other scientists [11].As a factor of cluster integration, innovation and economic growth in the country, our scientists MA Rakhmatov, BZ Zaripov on the example of the cluster "Cotton-textile" [12], AM Kadyrov [13] has been extensively researched and elucidated, taking into account the scientific and practical aspects of the problem in all its aspectsThe above-mentioned scientists have not studied the theoretical aspects and practical significance of the organization of production on the basis of a cluster system as a separate scientific direction, taking into account the production characteristics of fruit and vegetable growing and processing, as well as logistics enterprises. This in turn requires scientific research on the chosen topicThe purpose of the study-to study and develop proposals for improving the organization and management of financial management in agricultural enterprises of various forms of ownership in the Republic of Uzbekistan in the context of the development of science, education and digital economy, in particular in agricultural enterprises in Andijan region.Object and tasks of research.The object of scientific research in the Republic of Uzbekistan is the improvement of the management system in the activities of entities involved in the organization and improvement of management systems in agro-cluster enterprises, in particular, fruit and vegetable clusters in Andijan region.Research subjects.The ongoing process of integration in the world economy has a great impact on its globalization. This, on the one hand, implies a transnational “chain” of value added, and on the other hand, intensifies competition in the manufacturing sector as well. In this context, the subject of this study is the processes associated with the organization and improvement of the management system in the fruit and vegetable clusters of the Republic.Research Methodology Analysis,induction and deduction, economic-mathematicalmodeling, statistical data grouping, comparative analysis, sample observation, correlation and regression analysis in the development of scientifically based conclusions and recommendations based on the systematization of the analysis results and other methods.Analysis and results:In the innovative development of enterprises in the economy, especially in the current period, when traditional methods of economic development do not provide sufficient benefits, it is best to establish a transnational "chain" of value creation and implement modern management systems (cluster theory), as well as increase its economic efficiency. is the way.Expected scientific news from the research: Based on the final results of the scientific work, the following scientific innovations were achieved:1. The need to improve the management system in the activities of fruit and vegetable clusters in the context of transformation and increasing the competitiveness of sectors of the economy and the indicators of their effective useare theoretically justified.2. Conceptual bases and forecasting methods of organization of modern management system in fruit and vegetable clusters in the conditions of transformation and increase of competitiveness of branches of economy are analyzed and substantiated.3. The management system of fruit and vegetable clusters in the country is analyzed and suggestions for improvement are made.4. Modern methods of making management decisions in fruit and vegetable clusters in the context of transformationand increasing the competitiveness of sectors of the economy have been developed and based.5. Ways have been developed to improve the management environment and management system in the business activities of fruit and vegetable clusters in the context of transforming and increasing the competitiveness of sectors of the economy.6. The role of the management system in the rational use of financial resources of fruit and vegetable clusters in the context of transformation and increasing the competitivenessof sectors of the economy and approaches, comments and suggestions on their improvement have been developed.Conclusions and Recommendations:The practical significance of the results of this research is that in the organization and improvement of management systems in fruit and vegetable clusters of the Republic of Uzbekistan, as well as in the activities of entities implementing management systems, in particular can use it to improve management. The results of the study can be used not only in fruit andvegetable clusters, but also in the process of production management from practical proposals in the management of the activities of other economic entities.References:1.Sh.Mirziyoev. Together we will build a free, prosperous, democratic state of Uzbekistan T .: Uzbekistan, 2016. 15-p.2.Decree of the President of the Republic of Uzbekistan 2020.3.Address to the Oliy Majlis of January 24. https://www.norma.uz/bizning_sharhlar/2020_yilgi_murojaatnoma_presidentning_maruzandan_osisi_zesislar4.Candidate for the President of the Republic of Uzbekistan Sh. Mirziyoyev's election program. T: Uzbekistan Publishing House. 2021.24-bet.5.President of the Republic of Uzbekistan Sh.