HIGH-VALUE AGRICULTURE ACTIVITY QUARTERLY REPORT for the Period April – June 2018
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USAID/HVAA HIGH-VALUE AGRICULTURE ACTIVITY QUARTERLY REPORT For the period April – June 2018 This report is made possible by the support of the American People through the United States Agency for International Development (USAID). The contents of this report are the sole responsibility of Chemonics International and do not necessarily reflect the views of USAID or the United States Government HIGH-VALUE AGRICULTURE ACTIVITY QUARTERLY REPORT For the period of April - June 2018 CONTRACT NO. AID-117-C-17-00001 USAID COR: RODICA MIRON CHIEF OF PARTY: CYNTHIA STEEN JULY 2018 ACRONYMS AITTF Agricultural Innovation and Technology Transfer Fund ANSA National Food Safety Agency APESM National Table Grape Association B2B Business to Business BoM “Berries of Moldova” Association CEO Chief Executive Officer CIS Central Irrigation System COR Contracting Officer's Representative EU European Union FF Family Farm GAP Good Agricultural Practice GLOBALG.A.P. Global Good Agricultural Practice (voluntary standard managed by FoodPlus) HEKS-EPER Swiss Church Aid Office in Moldova HVA High Value Agriculture HVAA High Value Agriculture Activity IEE Initial Environmental Examination IPM Integrated Pest Management Ltd. Privat limited company MARDE Ministry of Agriculture, Regional Development and Environment MCC Millennium Challenge Corporation M&E Monitoring an Evaluation MEL Monitoring, Evaluation and Learning MFA Moldova Fruct Association MIEPO Moldova Investment and Export Promotion Organization MoU Memorandum of Understanding NBARM National Beekeepers Association of the Republic of Moldova NVS Nisporeni Vocational School OCA Organizational Capacity Assessments PERSUAP Pesticide Evaluation Report and Safer Use Action Plan PHH Post Harvest Handling PMEP Project Monitoring and Evaluation Plan SOW Scope of Work STTA Short-Term Technical Assistance SEMP Sector Export Marketing Plans ToT Training of Trainers UAE United Arab Emirates USAID United States Agency for International Development WUA Water Users Association CONTENTS Acronyms ............................................................................................................................................................ 1 EXECUTIVE SUMMARY ..................................................................................................................................... 3 SECTION I: Project Accomplishments by Objective ......................................................................................... 7 A. Objective 1: Expand and Strengthen Linkages to Domestic, Regional, and International Markets for Targeted Value Chains .................................................................................................................................... 7 B. Objective 2: Improve Productivity, Post-Harvest Handling, and Private Sector Capacity to Comply with EU and International Standards in Targeted Value Chains ........................................................................... 10 C. Objective 3: Strengthen Capacities of Member-Based Groups (Producer Groups, WUAs, and Industry Associations) to Serve Their Members in Targeted Value Chains ................................................................ 17 D. Objective 4: Improve the Enabling Environment Leading to Increased Investments and an Improved Work Force in Targeted Value Chains ........................................................................................................... 19 E. Cross-Cutting Activities to Support Implementation ............................................................................ 24 Progress Toward Targets under the Performance Monitoring and Evaluation Plan ....................................... 29 SECTION II. Deliverables ................................................................................................................................. 32 SECTION III. Schedules .................................................................................................................................... 32 SECTION IV. Problems .................................................................................................................................... 32 SECTION V: Major Activities planned for next quarter .................................................................................. 33 2 EXECUTIVE SUMMARY During the reporting period, HVAA focused its efforts on developing connections between local producers and international markets for the fruit, table grape, and honey sectors, and helped broker unprecedented access to major international buyers in Europe. Under the Agricultural Innovation and Technology Transfer Fund (AITF), HVAA signed 19 new agreements with organizations and producers from all regions of Moldova during the reporting period. With HVAA support, the Berries of Moldova Association (BoM) launched new editions of the Berry Fairs, offering producers the opportunity to exhibit, promote, and sell berries to local consumers, as well as share and learn new marketing, packaging, labelling, and selling practices from one another. USAID/HVAA brokered a partnership between USAID, the Ministry of Agriculture, Regional Development and Environment (MARDE), the National Office of Vine and Wine (ONVV, as it is known in Romanian), HEKS-EPER, Geographic presentation of HVAA activities and events and the Horticulture Research Institute (HRI), resulting in a signed Memorandum of Understanding (MoU) to commit approximately $400,000 for the rehabilitation of HRI’s tissue culture laboratory, greenhouses, and scion mother stock plantations. Thanks to the $20 million U.S. Government investment under the Millennium Challenge Corporation (MCC) Compact, which rehabilitated former Central Irrigation Systems (CIS), the Cosnita and Puhaceni Water User Associations (WUAs) are able to provide irrigation to over 3,000 hectares of farmland, servicing more than 5,000 small and medium farmers. To help farmers improve water use and benefit from irrigated land, HVAA provides complex support to Water User Associations and their members. During the reporting period, over 920 participants from 370 new unique firms and farms benefitted from HVAA assistance. 3 The table below shows the distribution of beneficiaries per type of event: The largest number of events during the period focused on stone fruit. The majority of events involved technical assistance related to apricot, sweet and sour cherry intensive and super-intensive production. This was followed by support for honey vertical hives and bee treatment trainings in the field. Main cross-cutting value chain activities for the period included the presentation of the farm crew feasibility study and business model, the feasibility study for the Horticulture Center of Excellence, and support for improved water consumption by WUAs. NUMBER OF EVENTS PER VALUE CHAIN IN Q3 FY18 Apples Vegetables 2% Berries 11% Table 11% grapes 4% Cross- cutting Stone Fruit 23% 29% Processed fruits and Honey vegetables 18% 2% 4 The geographic locations of events organized by number of participants and by value chain is shown on the maps below: Number of participants per type of event Number of participants in events per value chain 5 Highlighted Accomplishments Year 2 6 SECTION I: PROJECT ACCOMPLISHMENTS BY OBJECTIVE OBJECTIVE 1: EXPAND AND STRENGTHEN LINKAGES TO DOMESTIC, REGIONAL, AND INTERNATIONAL MARKETS FOR TARGETED VALUE CHAINS • During the reporting quarter, HVAA, Moldova Investment and Export Promotion Organization (MIEPO) and Moldova Fruct Association (MFA) reviewed the results of the joint activities implemented for 2017/18 fresh produce marketing season supporting the expansion and diversification of Moldovan HVA exports. 2017/18 HVAA marketing efforts specifically worked to connect Moldovan exporters with potential buyers in non-traditional, high-paying, reliable markets as alternatives for exporters to shift away from the traditional, less-stable Russian market. As part of a grant initiative, HVAA and MFA provided technical support to participants to learn how to effectively present their product availability and meet buyers with concrete offers in hand. Overall, the HVAA-MIEPO-MFA joint activities have facilitated exports valued at $16 million, including $3.9 million (or 25 percent) to the European Union (EU). Several of these transactions were pilot shipments that will be expanded into large supply programs in the upcoming seasons. • As part of its grant activity with HVAA, MFA continued to disseminate the results of its marketing efforts, and provided market insights to the grower community, including appearances on AgroTV and Jurnal TV to present outcomes from its trade mission at Gulfood International Exhibition (February 18 – 22, 2018) in Dubai, United Arab Emirates (UAE). During a television special, MFA’s Marketing Specialist and the director of a major fruit exporter, FreshTime Ltd., shared lessons learned regarding buyers’ requirements for apple varieties, sizing, and packaging, as well as discussed export logistics. FreshTime is one entity that is committed to allocating a significant portion of its upcoming harvest for buyers in the Middle East. To prepare committed buyers, MFA and HVAA will develop a “Shipping by Sea Container” Guide, which will assist exporters to ensure high-quality fruit arrivals in the terminal market. • HVAA has supported MFA to organize the trade mission of a Delta-Fruct representative, a member of Delta-Agrar Holding which is a large exporter registered in Serbia that sources fruits from many countries