Livestock rearing plays a pivotal role in providing population with food commodities and contributes 46.3% of the gross agricultural output of Uzbekistan. Aftermath of independence many state enterprises, which were main livestock commodity producers were closed down. As conseąuence, now the livestock population take place in household plots and newly formed small sized private farms. Considering the rareness of research on livestock rearing in Uzbekistan in the last two decades this paper aims at finding out problems faced by livestock producers during the transition period and analyzes possible solutions for further improvement based on survey results of 56 livestock farms and 80 household farms from the region Khorezm. Improvement of input and output market infrastructure and appropriate institutional changes in land and water use rights would allow further development of the livestock sector in conditions of market economy.
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