Project Year Two First Quarterly Progress Report

Prepared fors review by the United States Agency for International Development under USAID Contract No72011418C00001,

The USAID Agriculture Program implemented by CNFA

The USAID Agriculture Program

Project Year Two First Quarterly Progress Report October 1, 2019 – December 31, 2019

USAID Contract 72011418C00001 Implemented by CNFA

Submitted to: USAID/Caucasus Mr. Brent Edelman, COR

Submitted on January 15, 2020

Contents Acronyms ...... 5 Executive Summary ...... 6 Program Description ...... 7 Overview of Activities in the First Quarter ...... 7 1. Cost-Share Grants to MSMEs, Cooperatives, Service/Information/Extension Providers, and Associations ...... 8 In-Kind Grants to MSMEs and Cooperatives ...... 9 Capacity Building Grants ...... 11 Proposed Innovation Grants ...... 12 2. Technical Assistance to MSMEs, Cooperatives, Service/Information/Extension Providers, and Associations ...... 13 Improved Access to New Varieties and Inputs ...... 13 2.1.1. Facilitate Nursery Certification ...... 13 2.1.2. Development of Modern Nurseries in Berry and Vegetable/Herb and Stone/Pome Fruits Value Chains .. 14 2.1.3. Resource Materials for New Varieties ...... 14 2.1.4. Short Certificate Courses in Berry and Culinary Herbs...... 15 2.1.5. Improved Access to Modern Fertilizers and Plant Protection Products ...... 15 2.1.6. Raising Awareness of New Farming Machinery and Equipment among Farmers and Agri-businesses ...... 16 Improved Production Technologies ...... 16 2.2.1. International Consultancy in Berry Production ...... 16 2.2.2. International Training of Trainers Course in Raspberry, Strawberry, Blackberry, and Blueberry Open Field Production for Local Agronomists ...... 16 2.2.3. International Consultancy in Table Grape Production Technologies ...... 16 2.2.4. International TOT in Culinary Herbs Greenhouse Production for Local Agronomists ...... 16 2.2.5. Knowledge Plot Education Programs ...... 16 2.2.6. Digital Farms in Selected Value Chains ...... 17 2.2.7. GlobalGAP Certification ...... 17 2.2.8. Organic Farming Best-Practices ...... 17 2.2.9. Facilitate Organic Certification...... 17 2.2.10. Promoting Organic Production in Georgia ...... 18 2.2.11. Study Tours that Highlight Best-Practices in Production and Technologies ...... 18 Improved Postharvest Handling and Processing ...... 18 2.3.1. Cold Chain Industry Survey ...... 18 2.3.2. Consultancies in Postharvest Handling Practices and Cold Store Operations ...... 18 2.3.3. International Consultancy in Pre-Cooling Practices ...... 19 2.3.4. International Consultancy in Freezing Techniques ...... 19 2.3.5. International Study Tour for Table Grape Cold Store Operators ...... 19 2.3.6. Modern Processing Techniques ...... 19 2.3.7. Facilitating Access to Modern Processing and Packaging Equipment ...... 19 2.3.8. Georgia Grown Spice Producers (Culinary Value Chain) ...... 20 2.3.9. Georgian Bay Leaf Producers (Culinary Value Chain) ...... 22 2.3.10. Modern Food Safety Standards ...... 23 Market Access...... 23 2.4.1. Improved Horizontal Collaboration at the Farmer Level ...... 23

2.4.2. Improved Vertical Collaboration ...... 24 2.4.3. Building Brand Awareness in Competitive Markets ...... 25 2.4.4. Brand Image for International Fairs ...... 26 2.4.5. International Trade Fairs ...... 26 2.4.6. Linking Farmers and Agro-Processors with Tourism and Catering Industries ...... 27 2.4.7. Promotional Events to Facilitate Market Access ...... 27 Capacity Building Activities ...... 27 2.5.1. Capacity Building Program for Agricultural Cooperatives ...... 27 2.5.2. Enhanced Capacity of Sectoral and Cross-cutting Business Associations ...... 27 2.5.3. Increased Capacity for Tax and Financial Reporting Among MSMEs ...... 27 2.5.4. Increased Capacity for Integrated Pest Management ...... 28 3. Cross-Cutting ...... 28 Inclusive Agricultural Value Chain Development ...... 28 Public Information and Outreach ...... 28 Environmental Compliance ...... 29 Access to Finance ...... 30 4. Donor and Host-Country Coordination ...... 30 5. Project Management ...... 32 Operations, Facilities, and Equipment ...... 32 Staffing ...... 32 International Subcontracting ...... 32 Monitoring and Reporting ...... 32 Financial Expenditure Summary ...... 33 Key Constraints ...... 33 Annex 1: The Ongoing, Initiated, and Completed Technical Assistance Projects in Quarter One of Year Two...... 33

Acronyms APS Annual Program Statement AR Autonomous Republic ARDA Agricultural and Rural Development Agency BEO Bureau Environmental Officer BMSB Brown Marmorated Stink Bug BRC British Retail Consortium CBG Capacity Building Grant CNFA Cultivating New Frontiers in Agriculture DCFTA Deep and Comprehensive Free Trade Area EBRD European Bank for Reconstruction and Development EDA Export Development Association EU European Union F2F Farmer to Farmer FAO Food and Agriculture Organization FAS Feed the Future Egypt Food Security and Agribusiness Support FSC Farm Service Center FSSC Foundation Food Safety System Certification G2G Government to Government GI Geographical Indication GoG Government of Georgia HACCP Hazard Analysis and Critical Control Point IAVCD Inclusive Agricultural Value Chain Development ICC Information-Consultation Center IFS International Featured Standards IPM Integrated Pest Management ISO International Standards Organization KMS Key Management Solutions LOP Life of Project MALR Egyptian Ministry of Agriculture and Land Reclamation MEL Monitoring, Evaluation and Learning MEPA Ministry of Environmental Protection and Agriculture MoESD Ministry of Economy and Sustainable Development of Georgia MSC Mechanization Service Center MSME Micro, Small and Medium Enterprise NFA National Food Agency NOP National Organic Program PPD Public Private Dialogue PY1 Project Year One PY2 Project Year Two Q1 Quarter One Q2 Quarter Two Q3 Quarter Three RFA Request for Applications RFP Request for Proposals PERSUAP Pesticide Evaluation Report and Safer Use Action Plan SEEDEV The South-East Europe Development Organization SOW Scope of Work SP Sole Proprietor SRCA Scientific-Research Center of Agriculture STTA Short Term Technical Assistance TA Technical Assistance TOC Terms of Cooperation TOT Training of Trainers USAID United States Agency for International Development USDA United States Department of Agriculture VC Value Chain VET Vocational Education and Training WFLO World Food Logistics Organization

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Executive Summary To place this Quarterly Report of the USAID Agriculture Program in the proper perspective, the Executive Summary of the Year One Annual Report should be revisited. The experience of Quarter One (Q1) of Project Year Two (PY2) confirms some key assumptions drawn at the end of Year One. The most important of these are that the Program has transformative or “game-changing” potential; that Innovation Grants can produce substantial leaps forward in agriculture surpassing the normally- expected incremental development pace; and that higher standards across all subsectors, along with higher-level technologies, are necessary Program goals. Each of these will be evident in the course of Year Two and beyond. This Quarter saw broad and robust program implementation. Emphasis was placed on refining systems and procedures, fully engaging all program components, and setting program component courses. In addition, having completed a full year of implementation in the prior Quarter, Program Management assessed Year One experience, reviewed program component status, and gleaned lessons learned as described below: 1. The Program’s grant limit of $75,000 is sufficient to spread existing technology but is less effective in introducing new and higher-level technologies. 2. The Program’s impact is maximized when the focus is on high- to mid-level beneficiaries who can lead sectors and affect change and generate development. 3. Increasing production efficiency of old, traditional varieties, regardless of sector, may allow farmers to continue current levels of operation, but will produce neither prosperity nor development of the sector. 4. Local propagation of new and improved varieties is essential to raise the competitiveness of most Georgian agriculture products. Importing new varieties can be a first step, but it is not sustainable. 5. Raising product standards and gaining product certification are increasingly necessary cross- cutting activities. 6. As more grants are made and technical assistance (TA) beneficiaries multiply, the Program’s reach is growing and becoming more focused. Within the current program year, we expect to define and pursue overarching goals that will prove transformative for selected value chains (VCs). We further expect that experience gained from such substantial steps forward will enable us ultimately to have transformative impact on all our targeted VCs. Operations after 15 months reveals two significant problems which must be mitigated by Program management: 1. The dearth of technical skills, particularly in agronomy, is an impediment to agricultural development nearly equal to small land plot size. 2. The lengthy grant approval process diminishes grant impact. The nature of investment grants calls for rapid approvals and early project launch. This allows for the fullest benefit from technical assistance resources. USAID and Program Management should address this. The process should be improved so that grant awards are essentially completed by the end of PY2. Program Management is confident that substantive lessons have been captured that can inform management over the next three program years, that contractual deliverables will be produced as scheduled, that Program activities will prove agriculturally transformative, and that new approaches to agriculture development will be a Program product by project completion.

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Program Description

The USAID Agriculture Program Life of Project Targets . $7.4 million in matching grants disbursed to 120 enterprises leveraging at least $9.04 million in matching contribution . 3,680 new jobs created . $70 million increase in sales by supported enterprises including $23 million in exports and $11.3 million through new local markets . New cash markets in a value of $10 million available to producers . Consultancies/trainings provided to 170,000 individuals by supported enterprises

The USAID Agriculture Program is a five-year activity that aims to accelerate the growth of agricultural sub-sectors that demonstrate strong potential to create jobs and increase incomes and revenues of micro, small, and medium enterprises (MSMEs). In particular, the Program supports the development of VCs by assisting and strengthening relevant enterprises and organizations within the target agricultural sub-sectors, which include berries (including kiwi fruit), culinary herbs, stone fruits, perishable vegetables, pome fruits (apples), table grapes, mandarins, and nut crops (except hazelnut). The USAID Agriculture Program is implemented through two integrated, mutually reinforcing components. Under Component One, the Program provides cost-share grants to MSMEs, cooperatives, service/information/extension providers, and associations, while Component Two focuses on demand-driven technical assistance, including technical and/or business trainings, and a wide spectrum of customized consultancies aimed at building the capacity of targeted VC actors. Overview of Activities in the First Quarter This Quarter, the USAID Agriculture Program started implementing activities proposed in the Year Two Work Plan and continued activities initiated in Project Year One (PY1). The highlights of this Quarter are described below: . The USAID Agriculture Program selected 15 enterprises for In-Kind Grant support under its second Request for Applications (RFA). One beneficiary was approved by USAID in PY1. As for the remaining 14 applicants, their grant packages were developed and submitted in Q1 of PY2. To date, the Program has received approval for nine projects, thus, committing $636,005 of grant portfolio and leveraging $1,232,266 of private sector funds. . In October 2019, the USAID Agriculture Program released its third RFA to award In-Kind Grants to processing enterprises within target VCs. Shortly after the announcement, the Program conducted a campaign to promote the grant opportunity and reached 285 interested individuals. Ultimately, 57 enterprises applied. The Program has started scoring the applications and will prepare an initial shortlist early in Q2. . The USAID Agriculture Program launched two Capacity Building Grant (CBG) projects. The goal of one project is to facilitate export of horticultural commodities, while the other aims to improve access to modern inputs. In Q1, the Program prepared the third capacity building RFA to facilitate an inclusive agricultural VC development and the Program will solicit applications early in Q2. . The USAID Agriculture Program’s TA team completed, continued, and initiated a number of projects in the area of food safety for both primary producers and processors/cold storage operators. These projects are being implemented on a cost-share basis. For processors/cold storage operators, the Program conducted the following activities: (1) completed Hazard Analysis Critical Control Point (HACCP) GAP Analyses for six agribusinesses; (2) launched HACCP GAP Analyses for 11 bay leaf processors and two spice processors; (3) completed one ISO 22 000 certification project for a cold storage operator; and (4) implemented four

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HACCP/ISO 22 000 certification projects. For primary producers, the Program conducted the following activities: (1) completed one GlobalGAP certification project for a lettuce grower and (2) implemented five GlobalGAP certification projects for four berry producers and one lettuce grower. . In seeking to improve established practices in priority VCs, the USAID Agriculture Program provided tailored consultancies to nine mandarin growers in postharvest handling operations. Six lettuce growers benefitted from consultancies in greenhouse production. The Program also consulted 10 grantee and non-grantee berry growers in production of modern varieties. . With growing interest in organic production, the USAID Agriculture Program awarded a Capacity Building Grant to Caucascert LLC to enable the organization to obtain a United States Department of Agriculture (USDA) accreditation and become authorized to conduct organic certifications in Georgia according to the US standards. The Program also provides consultancy in organic farming and assists six growers to obtain organic certification. . The USAID Agriculture Program promotes production of modern, protected varieties in Georgia and introduced eight new, virus-free strawberry varieties. As a result, six growers established new orchards with 64,800 seedlings. . The USAID Agriculture Program provided marketing and branding support to 13 beneficiaries. Five spice processors are receiving consultancies in new labelling requirements, four food processors are benefitting from international consultancy in product development and branding, and four organic producers were assisted to develop promotional materials. . To facilitate access to modern equipment, the USAID Agriculture Program organized a study tour for food processors in Turkey. Four companies attended a Packaging Industry and Food Processing Technology fair in Istanbul and established contacts with potential suppliers of equipment. . In response to the new “Law on Occupational Safety and Health,” the USAID Agriculture Program delivered an intensive training program to representatives of Georgian agribusinesses from priority VCs. As a result, 22 individuals obtained certificates as Qualified Occupation Safety Specialists. In addition, the Program provided practical guidance to 17 agribusinesses to enable them to implement these standards. . The USAID Agriculture Program signed Terms of Cooperation (TOC) with McDonald’s Georgia to support the development of a sustainable local food supply chain for the company. As a first significant result of this TOC, one of McDonald’s Georgia’s lettuce suppliers - Smart Logistics Ltd – obtained a GlobalGAP certificate with the Program’s assistance. 1. Cost-Share Grants to MSMEs, Cooperatives, Service/Information/Extension Providers, and Associations

Key Achievements in the First Quarter of PY2 . 15 grant packages submitted to USAID and nine projects approved under the second RFA. Within the scope of the approved nine projects, the program will commit $636,005 of grant portfolio and leverage $1,232,266 of private sector funds. . Agreements signed with four In-Kind grant recipients approved under the second RFA. . Third RFA released for processing enterprises and 57 applications received. . Two capacity building grants awarded to Export Development Association and Agroservice. . Third capacity building RFA released for local business associations. . Annual Program Statement is being developed to invite entrepreneurs to submit concept papers with innovative and transformative ideas.

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In-Kind Grants to MSMEs and Cooperatives RFA 002: The USAID Agriculture Program announced its second RFA to strengthen postharvest handling and cold storage links in priority VCs and selected a total of 15 applicants. In the reporting period, the Program submitted all grant packages to USAID on behalf of applicants. USAID approved nine projects and agreements were signed with four grantees. Under the approved projects, the Program will commit $636,005 of grant portfolio and leverage $1,232,266 of private sector funds. Grant agreement signed with Agritouch Ltd Considering the lack of storage facilities, this is one of the most pressing challenges in Georgia’s agriculture sector and this grant round was particularly important in achieving a broader impact in priority VCs. All grant recipients approved by USAID plan to establish cold storage facilities in different regions of Georgia. The majority of these enterprises will provide postharvest handling and cold storage services to the primary producers based in neighboring areas. By doing so, these grant recipients will enable their beneficiaries to supply the market with quality, and in some cases, off-season products, which, in turn, will increase their revenues. The grant recipients approved in Q1, along with anticipated project outcomes, are discussed below: Cooperative Agro Development is a primary producer of apples (3.5-ha), plums (0.5-ha), table grapes (1-ha), and peaches and nectarines (1-ha), based in Shida Kartli region. The enterprise applied for the USAID Agriculture Program’s grant to set up a 594 m2 facility with five cold chambers. The anticipated project outcomes are as follows: . Cooperative Agro Development will create six new jobs in the first year of the project. . Over the Life of Project (LOP), the cooperative is estimated to generate $234,892. . The grant recipient is expected to provide cold storage services to around 35 small and medium-sized farmers. Cooperative DK-Kolga is a primary producer from Samegrelo-Zemo Svaneti region with a 13.6-ha open-field raspberry orchard. With the USAID Agriculture Program’s support, the grant recipient will set up a 148.5 m2 postharvest handling facility with a pre-cooling chamber and two cold chambers. The anticipated project outcomes are as follows: . Cooperative DK-Kolga will create five permanent/outsourced jobs and 118 seasonal jobs. . Over the LOP, the grant recipient is estimated to generate $756,824 in sales revenue. . The cooperative intends to provide to pre-cooling and cold storage services to 16 small and medium-sized berry producers. Agritouch Ltd has traditionally provided berry growers with consultancy in primary production and export of agricultural commodities. Recently, the company decided to apply for the USAID Agriculture Program’s grant to establish a 425 m2 cold storage facility in the Guria region. The anticipated project outcomes are as follows: . Agritouch Ltd will create 13 permanent and seasonal jobs. . The company plans to train at least 400 farmers interested in new agricultural technologies during field days organized at a 1-ha bio blueberry demo plot. . Over the LOP, Agritouch Ltd is expected to generate $722,068 from pre-cooling and cold storage services and $236,144 from sales of raspberries, blackberries, kiwi, mandarins, feijoa, and persimmons collected from around 35 small and medium-sized farmers. MKM Ltd is a recently established company based in Shida Kartli region. The USAID Agriculture Program will support the grant recipient to set up a 450 m2 cold storage facility with four cold chambers. The anticipated project outcomes are as follows:

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. MKM Ltd will create 38 jobs and train 348 people (including other cold store operators, farmers, and new employees) in modern postharvest handling and storage technologies. . Over the LOP, the company is estimated to earn $887,205. . MKM Ltd will provide cold storage services to 70 small and medium-sized farmers. Sole Proprietor (SP) Zurab Merebashvili produces apples (3.7-ha), sweet cherries (1-ha), and plums (0.5-ha) in Shida Kartli region. With the USAID Agriculture Program’s support, the entrepreneur will establish a 480 m2 cold storage facility with five cold chambers. The anticipated project outcomes are as follows: . SP Zurab Merebashvili will create 11 jobs (including seasonal) in the first year of the project. . Over the LOP, the grant recipient will generate $392,812 in sales revenue. . The applicant will provide cold storage services to 18 local producers. Agro Complex Ltd unites six founding members that collectively operate 31 hectares of high-density apple orchards in Kvemo Kartli region. As part of the investment project, the company will establish a 1,440 m2 postharvest handling facility with 10 cold chambers. The anticipated project outcomes are as follows: . Over the LOP, Agro Complex Ltd will generate $1,148,123 in sales revenue. . The company will create four full-time jobs and 30 seasonal jobs in the first year of the project. . Agro Complex Ltd will train around 300 people (interested farmers and students) through field days to share knowledge about agricultural technologies. Agro+ Ltd produces blueberries (15-ha) in the Imereti region. The company initiated this investment project to establish a 525 m2 postharvest handling facility with two pre-cooling chambers, a freezer, and two cold chambers. The anticipated project outcomes are as follows: . Agro+ Ltd will create 134 jobs (including seasonal). . The company is expected to generate $728,538 in sales revenue. . The grant applicant will provide pre-cooling and cold storage services to 15 neighboring producers of raspberries and thorn-less blackberries. Red Velox Ltd produces apples on 7.5-ha in the Shida Kartli region. With USAID support, the company will establish a 1,529 m2 postharvest handling facility with 10 cold chambers. The anticipated project outcomes are as follows: . Red Velox Ltd will create nine permanent jobs and 218 seasonal jobs. . Over the LOP, the company will earn $673,435. . The company will provide cold storage services to 95 small and medium-sized farmers based in Kaspi municipality. RFA 003: On October 29, 2019, the USAID Agriculture Program released its third RFA offering investment opportunities to processing enterprises. The Program conducted an outreach campaign, which attracted 285 people (see section 3.2). Interest in this grant round was anticipated to be high, as many organizations have requested support in this direction. A total of 57 enterprises responded to the third RFA, including 16 agricultural cooperatives. The USAID Agriculture Program conducted an initial screening of the applications, which revealed that the majority of the enterprises are based in the regions of Kakheti, Imereti, and Guria and plan to produce dried fruits and canned products. Detailed statistics are provided in the diagrams below. The Program has started scoring the applications and will prepare an initial shortlist early in Q2.

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Grant applicants by region Grant applicants by activities The third RFA was released before the walnut, almond, pistachio, and kiwi fruit VCs were approved by USAID. As a result, the USAID Agriculture Program is considering announcing RFA 003 (B) in January 2020 to ensure that processing enterprises operating in the new priority VCs have access to the Program’s grant support. RFAs 004-006: Since RFA 003 was released later than initially planned, the USAID Agriculture Program plans to announce RFA 004 for consolidation centers in March 2020, RFA 005 for high-tech nurseries in May 2020, and RFA 006 for missing links in September 2020. Capacity Building Grants RFA CBG 001: In PY1, the USAID Agriculture Program awarded capacity building grants to ISO Consulting and Caucascert LLC. The former will obtain International Featured Standards (IFS) and British Retail Consortium (BRC) accreditations to provide consultancy services to Georgian enterprises, while the latter will acquire USDA’s accreditation and become authorized to conduct organic certifications in Georgia according to the US standards. In the reporting period: . ISO Consulting purchased IFS-related training materials and obtained access to the IFS database. The company selected five training modules to translate into Georgian, including: IFS Academy Food 6.1 Industry, HACCP – from the perspective of the IFS, IFS internal auditing, IFS Food Fraud Mitigation Training, and Food Defense training (534 pages, in total). These modules cover both theory and case studies. Translated materials are being reviewed and edited under IFS office’s guidance. . Caucascert LLC contracted an international consultant to assess quality control documents and identify GAPs against National Organic Program (NOP) requirements for certifying agents. Caucascert used the recommendations to improve the certification system and submitted an application to NOP in October 2019 for review. The feedback from NOP is anticipated in January 2020. In November 2019, an international consultant delivered a training course to Caucascert’s staff in NOP import requirements and certification procedures. To test obtained knowledge, Caucascert conducted a trial inspection of one of organic operators (drying facility) according to the NOP requirements. The operator corrected non-compliances and reported them in accordance with the NOP protocol. RFA CBG 002: In August 2019, the USAID Agriculture Program announced a second capacity building RFA for local agricultural and cross-cutting business associations. The goal of this RFA was to further strengthen the priority VCs in the following two directions: . Modern approaches and mechanisms to facilitate export in horticultural commodities; and . Improved access to modern inputs. The USAID Agriculture Program selected Export Development Association (EDA) to implement a project aimed at facilitating export of horticultural commodities. EDA is a member-driven organization uniting up to 100 Georgian export-oriented producers and service providers. Within this nine-month project, which totals $83,150 (with $27,750 as grantee’s contribution), the grant recipient plans to help established and start-up exporters to access, absorb, and process knowledge on export procedures and market entry regulations (tailored to concrete products and countries), strengthen linkages within the respective VCs in Georgia, and access supply chains in foreign

Page 11 | PY2 First Quarterly Report Contract 72011418C00001/ The USAID Agriculture Program markets. EDA will develop the CROP2SHOP webpage (accessible in Georgian language) that will offer exporters detailed and hands-on guidance on all necessary steps, formal procedures, and the most up-to-date regulatory information. The project is anticipated to target more than 20 commodities with high export potential and at least five countries/exporters. Another project that will be launched under this RFA aims to improve access to modern inputs. The USAID Agriculture Program awarded a grant to Agroservice, which unites 39 Farm Service Centers (FSCs) across Georgia. Within this 12-months project, which totals $104,758 (with $31,428 as grantee’s contribution), Agroservice plans to conduct a nationwide Public Private Dialogue (PPD) for better agricultural inputs market, engaging the Ministry of Environment Protection and Agriculture of Georgia (MEPA), National Food Agency (NFA), inputs dealers, FSCs, and agribusinesses. The grantee will deliver a training program to the private and state extension specialists on soil management, Integrated Pest Management (IPM), and innovative agricultural machinery and will focus on the Program’s priority VCs. In addition, Agroservice will develop resource materials on new inputs, varieties, and machinery and operationalize a module in the web-portal AGROSMART intended to promote proper and safe use of inputs and organic products. The USAID Agriculture Program expects both grant projects to start in early January 2020. RFA CBG 003: To facilitate an inclusive agricultural VC development, the USAID Agriculture Program developed and will release a third capacity building RFA early in Q2. The Program will solicit applications from local business associations. This RFA will be focused on the following directions: . Providing opportunities to women-owned MSMEs in the horticultural sector; and . Facilitating youth engagement in agribusiness and rural economic activities. The USAID Agriculture Program expects to finance four projects under this call for proposals, with two in each direction. The maximum grant amount will comprise $35,000. Proposed Innovation Grants In Q2, the USAID Agriculture Program plans to release an Annual Program Statement (APS) to invite entrepreneurs to submit concept papers with innovative and transformative ideas that will drive the development of the agriculture sector. This is a limited grant category termed “Innovation Grants,” which aims to seize unanticipated investment opportunities. The purpose of the Innovation Grants allotted by USAID is to stimulate large and rapid steps forward to advance agriculture development. These grants are not intended to promote incremental agriculture improvements. In the Innovation Grants, the Program seeks significant ideas that will transform one or more of the Program’s approved sub-sectors or transform the agriculture sector as a whole through unique cross-cutting actions. These grants should be the source of new and bigger ideas. Since it is innovation the Program encourages, it is impossible and unwise to attempt to prescribe in any detail what these ideas might or should be. The USAID Agriculture Program does not wish to constrain in any way the proposals that might be submitted under this program. However, examples of the type of result the Program seeks might include restructured agriculture logistics, introduction of new or higher technology, establishment of unique process or procedure, or production of a new and demanded product. The Program encourages all ideas and is aware that the most successful ones may well be those that prove the least expected or most unusual.

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2. Technical Assistance to MSMEs, Cooperatives, Service/Information/Extension Providers, and Associations

Key Achievements in the First Quarter of PY2 . HACCP GAP analyses completed for six agribusinesses (two fruit processors, two cold store operators, and two lettuce growers) and launched for 11 bay leaf processors and two spice processors. . ISO 22 000 certification completed for one agribusiness. HACCP/ISO 22 000 certifications are being implemented for four agribusinesses. . One beneficiary obtained GlobalGAP certification. The same initiative is being implemented for four berry growers and one lettuce grower, on a cost-share basis. . Strengthening capacity of 10 organic producers: 10 organic berry growers to introduce modern farming practices and six organic growers to obtain organic certification. . Eight new virus-free, certified strawberry varieties introduced in Georgia for the first time: 64,800 seedlings planted by six strawberry growers. . 13 agribusinesses were provided and are being provided with marketing and branding support: four organic producers assisted to develop promotional materials, five spice processors to comply with new labelling requirements, and four food processors assisted in product development and branding identity. . 12 spice processors assisted to upgrade technical knowledge in modern marketing trends. . 25 agribusinesses assisted to introduce modern production practices: 10 berry growers in new strawberry and raspberry varieties, nine mandarin growers in modern postharvest practices and six lettuce growers in greenhouse production. . Increased technical knowledge in mandarin production of 22 state and private extension specialists. . 12 beneficiaries assisted to participate in study tours: (1) eight table grape growers in Table Grapes Production and Postharvest Practices in Moldova and (2) four food processors in Packaging Industry and Food Processing Technology Fairs in Istanbul. . In cooperation with Enterprise Georgia, four organic growers are being assisted to prepare for Biofach 2020.

Improved Access to New Varieties and Inputs 2.1.1. Facilitate Nursery Certification In PY1, the USAID Agriculture Program started working on the voluntary nursery certification project with NFA and Scientific-Research Center of Agriculture (SRCA). The agencies plan to introduce a classification and certification scheme that will enable the nurseries to align their operations with international best practices. In addition, this initiative will facilitate a functional regulatory and business environment that will help the nurseries to produce and distribute high-quality, disease and pest free planting materials, improve the development and yield of crops through enhanced genetic potential, and contribute to overall health of individual plant varieties. In the reporting period, the USAID Agriculture Program engaged its sub-contractor, the South-East Europe Development Organization (SEEDEV), in the project. SEEDEV’s consultant, in cooperation with SRCA, finalized the scheme for production of saplings and defined the main criteria for the varieties that are to be included in the national catalogue. SEEDEV shared with stakeholders the method for categorization of planting material – scion and rootstocks mother blocks – and determined basic requirements for the nurseries, such as isolation and mother orchard placement. In addition, SEEDEV’s consultant conducted working session with NFA to discuss the list of regulated non-quarantine harmful organisms by crop cultures and nursery inspection manual, which indicated the methods of inspection of harmful organisms. On December 19-20, 2019 the USAID Agriculture Program, in cooperation with MEPA, organized a workshop to discuss Workshop on nursery certification project Page 13 | PY2 First Quarterly Report Contract 72011418C00001/ The USAID Agriculture Program the nursery certification project with all relevant agencies subordinate to the Ministry. The attendees included the Directors and leading specialists of different departments of NFA and SRCA. The meeting touched the topic of possible allocation of responsibilities between the cooperating entities, which is necessary to finalize the voluntary certification scheme. The management of the USAID Agriculture Program and the representatives of MEPA agreed to closely collaborate in any issue that may emerge in this process. 2.1.2. Development of Modern Nurseries in Berry and Vegetable/Herb and Stone/Pome Fruits Value Chains Vegetable/herbs nurseries: The USAID Agriculture Program’s Herbs and Vegetables VC specialist, in coordination with the Agricultural and Rural Development Agency’s (ARDA) Information- Consultation Centers (ICCs), visited nine vegetable seedling producers in Adjara region, Tskaltubo and Marneuli municipalities, to obtain information about their operations and identify their readiness to adopt new approaches and practices in seedling production. To ensure a coordinated and consistent approach towards promoting the development of a modern nursery network in Georgia, the Program met with MEPA representatives and discussed the recently issued and upcoming normative acts regulating vegetable seedling production. The Program will engage an international consultant who will facilitate linkages between the local seedling producers and relevant international input suppliers. Facilitating linkages between Georgian berry growers and Italian breeders: Certified and virus-free varieties are key to establishing a competitive and market- oriented agriculture sector. With this in view, the USAID Agriculture Program invited a leading agronomist from BerryPlant1 to facilitate linkages with Georgia berry growers. BerryPlant is a large and reputable Italian breeder focused on blackberry and raspberry propagation in six European and African countries. On December 15-18, 2019, the Program organized site visits to seven beneficiaries from Shida Kartli, Kvemo Kartli, and Kakheti and arranged a workshop in propagation and production best practices for Visiting the Program’s beneficiary 20 grant recipients and beneficiaries. Promoting new strawberry varieties in Georgia: The USAID Agriculture Program’s international consultant imported plants of eight new strawberry varieties from Italy. Over the next four years, the Program intends to apply learning from this experience to establish new varieties in selected nurseries; enable every small producer to purchase new varieties at affordable prices; cover 100 hectares with new varieties; increase average yields from three tons/ha to 25 tons/ha; substantially increase shelf-life; and increase exports. The Program anticipates that this will lead to a postive transformation of the Georgian strawberry sub-sector. Italian Consultant’s visit to Georgia 2.1.3. Resource Materials for New Varieties The USAID Agriculture Program continuously seeks to create a better understanding of the industry best-practices to help farmers make informed decisions and enhance their operations. At present, there is a significant lack of knowledge of new varieties and productive cultivars among the primary producers and relevant stakeholders from priority VCs. The Program started developing informational guides to provide growers with the necessary technical information and will utilize the

1 www.berryplant.com

Page 14 | PY2 First Quarterly Report Contract 72011418C00001/ The USAID Agriculture Program existing network of ARDA’s state extension centers, FSCs, and sector associations to disseminate the materials. These guides will include step-by-step production recommendations from planting to postharvest handling, as well as descriptions of specific cultivars that are best suited to the local growing conditions and meet both local and international buyer preferences. In the reporting period, the USAID Agriculture Program developed informational guides for lettuces and started preparing manuals for mandarins. The former was prepared by a local consultant, while the latter was assigned to an international consultant, both under a Short-Term Technical Assistance (STTA). Next, the Program plans to develop a guide for table grapes and is working closely with SRCA, which regularly observes table grape production in Georgia. SCRA has identified 10 modern varieties that are best suited to the country’s climate. The center prepared a production calendar, which ensures continuous supply of table grapes from July to November. The Program will use this calendar to develop a guide on modern, demanded table grape varieties. When the guide is available, it will be disseminated among interested growers and relevant stakeholders. 2.1.4. Short Certificate Courses in Berry and Culinary Herbs Recognizing significant growth potential and steadily increasing demand for fresh herbs and conventional/specialty vegetables in both domestic and international markets, the USAID Agriculture Program plans to introduce a sustainable knowledge transfer mechanism to educate young specialists and interested individuals in modern production technologies and practices. The goal of this initiative is to increase production to, initially, meet the demand for high-value products and, eventually, substitute imports and expand exports. The USAID Agriculture Program decided to develop and institutionalize a certificate program in greenhouse production of culinary herbs and conventional/specialty vegetables and released a Request for Proposals (RFP) to that end for local universities and Vocational Education and Training (VET) institutions. The applicants were required to partner with a reputable international university, extension center, and/or licensed nursery that offer similar programs and/or have similar partnership experience in order to ensure that the curricula incorporate higher-level expertise, modern approaches, and innovative practices. The Program received proposals from two candidates. The proposals will be evaluated according to established procedures. In PY1, the USAID Agriculture Program identified the Agricultural University of Georgia to develop certification courses in berry production, in collaboration with the Michigan State University. This activity will be launched early in Q2. 2.1.5. Improved Access to Modern Fertilizers and Plant Protection Products With the joint efforts of the private sector and donor organizations, Georgia has established a well- developed network of FSCs that provide growers with necessary information and offer them a wide selection of internationally produced agricultural inputs. Due to the relatively small size of the Georgian market, prices are high, the quality of pesticides and fertilizers is relatively low, and growers have limited access to the latest plant protection products and fertilizers. The USAID Agriculture Program facilitates dialogue between the local stakeholders to identify potential ways of improving the quality of agricultural inputs available in the country. The Program conducted a series of meetings with the representatives of multinational and local input suppliers, BASF (Agrovitae Ltd) and Dupont (Cartlis Agrosystems), and Sengenta (Agro kartli) to discuss technical issues related to the registration of existing and new pesticides and fertilizers. During the meeting, the companies noted that many Georgian exporters have requested to expand the list of crops for plant protection materials so that they can comply with the GlobalGAP requirements and organic standards. Input suppliers, in cooperation with other stakeholders, are willing to undertake concerete actions to introduce registration practices that comply with international standards. The Program will follow-up with these efforts in partnership with Agroservice, which recently obtained a capacity building grant (see section 1.2).

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2.1.6. Raising Awareness of New Farming Machinery and Equipment among Farmers and Agri- businesses Starting in Q2, the USAID Agriculture Program plans to offer awareness raising sessions to farmers, FSC operators, and agricultural machinery dealers in selected VCs. The sessions will focus on modern equipment and smart farming practices. Improved Production Technologies 2.2.1. International Consultancy in Berry Production Under this activity, the USAID Agriculture Program plans to promote high tunnel technology among its grant recipients and ARDA’s beneficiaries. The Program will engage two consultants, one for raspberry and blackberry production and another for blueberry production. This activity is anticipated in April-May 2020. 2.2.2. International Training of Trainers Course in Raspberry, Strawberry, Blackberry, and Blueberry Open Field Production for Local Agronomists The USAID Agriculture Program plans to organize a theory and practice Training of Trainers (TOT) course for selected local agronomists in April 2020 and plans to engage three international consultants for strawberry, raspberry/blackberry, and blueberry. 2.2.3. International Consultancy in Table Grape Production Technologies The USAID Agriculture Program plans to engage an international consultant to raise table grape producers’ awareness of pruning, pest management, fertigation, and related industry best-practices through training sessions and on-site consultancies. Seven producers from Kakheti and Mtskheta- Mtianeti regions, including ARDA’s beneficiaries, have been targeted for these programs, which are anticipated in Q3. 2.2.4. International TOT in Culinary Herbs Greenhouse Production for Local Agronomists The USAID Agriculture Program plans to design a TOT course for selected local agronomists, FSCs, ARDA’s state extension specialists, and the representatives of local colleges and Universities. The Program is willing to equip them with the technical knowledge and expertise to further promote and teach agricultural best-practices throughout the farming community. The course is anticipated to be delivered in March 2020. 2.2.5. Knowledge Plot Education Programs Lettuce field day: In December 2019, the USAID Agriculture Program arranged a lettuce field day at the greenhouse of Agricultural Cooperative Ertoba, in Khelvachauri municipality. The event featured modern technologies for greenhouse production of various lettuce varieties. The Program invited a local consultant who shared key technical aspects of primary production, including facility specifics, soil treatment, and pest management. The event also showcased best postharvest handling practices for minimizing losses and extending the product shelf-life. This field day gathered 22 participants, including local farmers, consolidators, and representatives of Agroservice Center under the Ministry of Agriculture of Adjara Autonomous Republic (AR). The Program provided the participants with tailored guides/manuals, highlighting basic principles and new approaches to lettuce production. These guides will be further disseminated among the broader audience of farmers, postharvest handling operators, Lettuce field day in Khelvachauri consolidators, and extension specialists. municipality Mandarin field day: Held at a model mandarin orchard operated by the Ministry of Agriculture of Adjara AR in Chakvi, this field day gathered 18 mandarin growers and public extension specialists. The goal of the event was to increase the participants’ awareness of modern pest management practices. The field day was led by the USAID Agriculture Program’s local consultants, who covered

Page 16 | PY2 First Quarterly Report Contract 72011418C00001/ The USAID Agriculture Program various topics, including key technical aspects of crop disease prevention and schemes for application of modern inputs. 2.2.6. Digital Farms in Selected Value Chains The USAID Agriculture Program is cooperating with a leading Georgian information technology company, UGT, to cost-share the development and implementation of a mobile harvest application for the Program’s beneficiary primary producers operating in target horticultural VCs. The mobile application is expected to increase harvest efficiency, reduce workload in keeping track of pickers and harvested fresh produce, and easily generate statistical data related to payments, yield of different varieties, and quality control. At this stage, around 40 growers, including ARDA’s beneficiaries, are targeted for this pilot project. The Program plans to sign a TOC with UGT in late January to have an operational mobile application ready for the 2020 growing season. 2.2.7. GlobalGAP Certification The USAID Agriculture Program continues to provide cost-shared financial support to primary producers willing to obtain GlobalGAP certification. GlobalGAP is an essential certification for exporters of fresh fruits, berries, and vegetables, which creates opportunities to supply higher-tiered markets for higher prices. One of the Program’s beneficiaries, Smart Logistics Ltd, obtained certification in November 2019, while five enterprises are expected to become certified in the summer of 2020 (list of all beneficiaries can be found in Annex 1). 2.2.8. Organic Farming Best-Practices In December 2019, the Government of Georgia (GoG) declared that organic production is one of its key priorities and announced a plan to launch a new comprehensive program in cooperation with international organizations and donors to support organic production in Georgia. One of the challenges facing organic producers is a limited knowledge of modern organic farming practices, specifically in the use of bio-pesticides and bio-fertilizers, mechanical cultivation, cover crops, and weed control that are central to successful organic farming. To this end, in PY1, the USAID Agriculture Program launched a pilot consulting project to support organic berry growers in introduction of best production practices. Targeted for this consultancy are: . Geologos LLC with 2.5-ha blackberry orchard in Gurjaani municipality. . Agricultural Cooperative Agrostore with 3-ha raspberry orchard in Kvareli municipality. . SP Aleksandre Vashakidze with 12-ha raspberry and blackberry orchards in Marneuli municipality. . Georgian Berry Partnership with 6.5-ha raspberry and blackberry orchards in Marneuli municipality. . SP Manana Anjaparidze with 3.5-ha raspberry orchard in Mstkheta municipality. . MNK Group Ltd with 4-ha blackberry orchard in Tskaltubo municipality. In the reporting period, a consultant conducted soil and water lab tests for beneficiaries in the reputable Polish testing lab, developed individual pest management/fertigation plans, and provided online consultancies in application of pesticides and fertilizers. 2.2.9. Facilitate Organic Certification In July 2019, the USAID Agriculture Program launched a 50-50 cost-shared program to support its beneficiaries in obtaining organic certification. Targeted for this project are: . MNK Group Ltd with 4-ha thorn-less blackberry orchard in Tskaltubo municipality. The company expects to obtain certification in 2020. . Agricultural Cooperative Agrostore with 3-ha raspberry orchard in Kvareli municipality. Organic certification is expected in 2022. . SP Elizabed Khmiadashvili, growing different varieties of lettuce on a 1-ha plantation in Tsnori municipality. The company expects to obtain organic certification in 2020.

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. SP Aleksandre Vashakidze with 3-ha blackberry, 7-ha raspberry, and 1-ha blackberry orchard in the village of Shaumiani, Marneuli municipality. Organic certification is expected in 2022. . Shavra Ltd with 1.2-ha plum orchard in Kareli municipality. This company expects to obtain organic certification in 2020. . SP Rusudan Kharabadze cultivating saffron (50,000 bulbs) on 1,700 m2 land plot. Organic certification is expected on December 20, 2021. In October-November 2019, Caucascert LLC conducted annual inspections of all six farms, as required by the certification system. The beneficiaries addressed non-conformities the inspectors identified. These were mostly related to the record keeping system. 2.2.10. Promoting Organic Production in Georgia The Horticultural Biomarket Survey described ways in which effective dissemination of knowledge and campaigns that raise awareness among consumers, food retailers, restauranteurs, and other related stakeholders can significantly contribute to the growth of organic production in Georgia. Recognizing that ARDA plans to introduce a new program supporting organic production, the USAID Agriculture Program may consider a capacity building grant to coincide with these activities. 2.2.11. Study Tours that Highlight Best-Practices in Production and Technologies The USAID Agriculture Program’s Technical Assistance Director and Berry and Table Grapes VC Specialist attended a study tour in Italy. The goal of the tour was to meet berry, table grape, and stone fruits farmers and visit berry in-vitro labs and berry, stone fruits, and pome fruits nurseries to discuss cooperation opportunities. The Program’s staff also met with representative of BerryPlant, a family-run nursery with 30 years of experience in propagation of Rubus. The representative of BerryPlant later visited Georgia to establish linkages with local berry growers and introduce the Program’s grant recipient nurseries to protected, virus-free berry seedlings (see section 2.1.2). Improved Postharvest Handling and Processing 2.3.1. Cold Chain Industry Survey The USAID Agriculture Program, in cooperation with its sub-contractor, World Food Logistics Organization (WFLO), is finalizing the cold chain assessment report. The Program expects to submit the report to USAID early in Q2. 2.3.2. Consultancies in Postharvest Handling Practices and Cold Store Operations Tailored consultancies to mandarin VC stakeholders: The USAID Agriculture Program’s local consultants delivered tailored assistance to eight mandarin growers and consolidators operating in Adjara and Guria regions. This assistance aimed to build the capacity of farmers and postharvest handling operators in harvesting, postharvest handling, and storage practices. Informational guides prepared as part of these consultancies will enable mandarin sector stakeholders to easily access relevant technical information on primary production, harvesting, and Delivering tailored consultancies to postharvest handling practices. Mandarin VC stakeholders TOT in mandarin production: The USAID Agriculture Program’s inetrnational mandarin consultant delivered a TOT course to a group of 22 agronomists, comprised of individual experts and representatives from the Ministry of Agriculture of Adjara AR, Batumi Shota Rustaveli State University, and the FSC network. With improved knowledge of modern practices and technologies applied in mandarin production, these beneficiaries will further disseminate knowledge and information among primary producers, postharvest handling operators, and consolidators to increase their operational efficiency and help them achieve higher quality and extended shelf-life of mandarins.

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2.3.3. International Consultancy in Pre-Cooling Practices Pre-cooling is a new practice in Georgia and requires significant technical guidance which is currently missing in the country. For this reason, the USAID Agriculture Program plans to engage an international consultant to render assistance in two visits that are anticipated in April 2020 and July 2020. 2.3.4. International Consultancy in Freezing Techniques The frozen food industry is poorly developed in Georgia, while opportunities in international markets, especially in the EU countries, are growing. With this in mind, in July 2020, the USAID Agriculture Program plans to engage an international specialist to provide individual consultancies and informational workshops to cold storage operators to help them develop freezing capabilities, including deep-freezing and individual quick freezing. 2.3.5. International Study Tour for Table Grape Cold Store Operators With the support of the USAID Agriculture Program, eight table grape producers participated in a study tour in Moldova organized by the Food and Agriculture Organization (FAO) of the United Nations, jointly with the European Bank for Reconstruction and Development (EBRD). The study tour aimed to improve high value crop trade opportunities in horticulture sectors of Georgia, Moldova, Tajikistan, and Uzbekistan. Georgian table grape producers attended a conference, which covered various topics, including an overview of the Table grapes study tour in Moldova sector and production of viticulture planting material. The group visited model vineyards and had an opportunity to consult with the National Institute of Winegrowing and Winemaking and in-vitro laboratory, Association of Producers and Exporters of Table Grapes, extension centers, and private companies engaged in table grapes sector. The participants’ feedback indicated that the tour gave them useful knowledge and insights on business development opportunities. In addition, table grape producers established contacts with potential partners. The USAID Agriculture Program will follow-up with the participants to build on this experience. 2.3.6. Modern Processing Techniques The USAID Agriculture Program plans to engage an international consultant to address knowledge gaps and shortcomings faced by the grantee and non-grantee processors engaged in juice production, canning, and fruit/vegetable drying. The Program developed Scopes of Work (SOWs) for international consultants and solicited the following calls in cooperation with the USAID Farmer to Farmer (F2F) Project, as well as through its own channels: . Dried fruit industry consultant (focusing on product development and marketing). . Drying fruit technologies consultant (focusing on during technologies). . Vegetable sauces, pasta, and spreads production. 2.3.7. Facilitating Access to Modern Processing and Packaging Equipment With cooperation and financial support from Tuyap Georgia, the USAID Agricultural Program organized a study tour for Georgian processors and packaging companies. The tour took place in Istanbul in October 2019 and covered two international fairs: Packaging Industry and Food Processing Technologies. These are the two largest and most comprehensive trade fairs for packaging and processing Attending a fair in Istanbul

Page 19 | PY2 First Quarterly Report Contract 72011418C00001/ The USAID Agriculture Program technologies in the Eurasian region. The visitors had access to state-of-the-art food processing and packaging equipment, as well as the latest technologies and materials designed to lower costs, reduce waste, and increase efficiencies. The USAID Agriculture Program selected the following four study tour participants, in coordination with ARDA and Georgian Food Packaging Association: . TMT LLC2, a cannery based in Kaspi municipality. The company’s main export markets include the USA, Germany, and Israel. At present, TMT LLC cooperates with a wholesaler operating in New York and Chicago3. With current capacity, the company produces around 1.2 to 1.5 million jars per year. During the fair, the beneficiary identified suitable equipment (washing, filling, capping, labeling, and wrapping/shrinking) that will allow it to increase its production capacity to 2.2 million jars per year. TMT LLC’s representative managed to make a deal with a jar cap manufacturer4 for 300,000 caps. In addition, the company established contact with Frumak and has been considering their offer for a full processing line for jams and sauces. . Natvit LLC, ARDA’s beneficiary company, which is willing to launch fruit concentrate production. Currently, Natvit LLC is constructing the facility and negotiating with the manufacturers of concentrate equipment. During the trade fair, the company’s Director obtained valuable information and met with different manufacturers who operate worldwide. The beneficiary selected the equipment best suited to the planned activities. A number of manufacturers provided Natvit with detailed information on equipment specifications, as well as lower-cost offers compared to expensive Italian and German equipment. . SP Davit Janelidze, an entrepreneur who decided to produce seasonings packed in tubes for both the local and export markets. Although Mr. Janelidze had already purchased main processing equipment, he attended the fairs to find solutions for packaging, labeling, and storage. The entrepreneur met with the manufacturers of filling and packaging equipment and became interested in two suppliers: Tam-Tas and Smart Mak. Mr. Janelidze shared with them all required information and product specifications and expects to receive precise offers by the end of January 2020. . Gigi LLC, a cold storage operator based near Tbilisi. The company is planning to produce washed, peeled, sliced, and packed fruits and vegetables. During the fair, Gigi LLC’s representative was mainly looking for cold storage and packaging solutions and identified two equipment manufacturers – Penerji and AVCI Makina. Parties agreed to follow-up and hold more detailed negotiations.

2.3.8. Georgia Grown Spice Producers (Culinary Value Chain) Growing worldwide demand for ethnic spice blends offers opportunities to exporters in developing countries, including Georgia. The country has great potential to commercialize its spice industry by focusing on niche market. For this reason, the USAID Agriculture Program prioritized the spice cluster within the culinary herbs VC and launched a program to support the Georgian spice industry. Georgian spice market survey: In September 2019, the USAID Agriculture Program contracted TBSC Consulting to conduct a survey of the Georgian spice cluster (including spices, seasonings, and sauces). Completed in late October, the survey describes prevailing

2 www.tiemti.ge Cover page of “Georgian Spices Market Overview” 3 www.georgianimports.com 4 www.sarten.com.tr

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dynamics within the Georgian spice industry and provides an overview of the size and structure of the industry, including import, export, domestic production, structure, and business operators within the sector. Based on the findings, TBCS Consulting recommends the following directions to create opportunities for Georgian spices at local, EU, and US markets: . Commercialize Georgian Spices; . Improve Basic Sector Information Infrastructure; . Improve Food Safety Practices; and . Introduce Private Sector Assistance. Roundtable meeting with spice producers: In November 2019, the USAID Agriculture Program arranged a roundtable meeting with 18 leading Georgian spice producers including Enterprise Georgia’s beneficiaries. During the meeting, TBSC Consulting presented the Georgian Spice Industry Survey findings and recommendations. The presentation was followed by discussions which were aimed at identifying the most demanded areas and effective ways for assistance. Spice producers prioritized several areas, including the establishment of a sector association, international food safety norms, support to primary spice producers, Geographical Indications (GIs), lab analyses to determine contamination levels, intensive PPD over customs, and other regulations. Agricultural marketing workshop for spice producers: In December 2019, the USAID Agriculture Program’s international consultant conducted a workshop in marketing and branding for 12 spice producers. The consultant gave a presentation on modern trends in the spice industry and provided individual recommendations regarding their current packaging, graphics, and labels to enable them to better comply with industry standards. Compliance with new labelling requirements: Georgian Spice Industry Survey and follow-up discussions with spice Agricultural Marketing Workshop for Spice producers revealed that one of the challenges for local spice Producers producers is the lack of technical knowledge necessary to comply with labelling requirements, which were introduced by a new regulation that entered into force on March 1, 2019. According to the regulation, producers are required to provide credible information on food products in order to protect consumers' rights within the Deep and Comprehensive Free Trade Area (DCFTA) framework. The regulation has expanded the mandatory information required on labels related to food safety. To this end, in December 2019, the Program contracted a local consulting company to develop an easy-to-understand one-pager for spice producers, listing new requirements. The Program also plans to provide individual consultancies to six spice producers, including Dabi Ltd, Farconi Ltd, Guruli Ltd, SP Giorgi Chkhaidze, SP Zura Kokhreidze, and Caucasan Ltd. These consultancies will include the assessment of labels (around 100 labels, in total), as requested by the enterprises. Food safety standards for spice producers: European buyers are continuously searching new suppliers with special varieties and high-quality products, especially in developing countries. However, those willing to enter European and other high-end markets need to comply with strict quality, food safety, and traceability requirements. In Georgia, this is a serious challenge for the majority of spice producers, as there are only a few companies with HACCP or ISO 22000 certifications. The USAID Agriculture Program contracted a local consulting company to develop a plain-language, basic food safety guidelines for HACCP/ISO 22000, including the recommended facility layout. This guideline will be widely disseminated among spice producers. In addition, the Program has offered several industry players an onsite GAP analysis of the facility and received two responses from Dabi Ltd (Tbilisi) and Guruli Ltd (Ozurgeti municipality). It is likely that others were not interested in

Page 21 | PY2 First Quarterly Report Contract 72011418C00001/ The USAID Agriculture Program conducting the analysis due to extremely poor infrastructure. The Program will continue its efforts in this area through trainings, resource materials, and other awareness raising events. 2.3.9. Georgian Bay Leaf Producers (Culinary Value Chain) The USAID Agriculture Program plans to provide grants and technical assistance to strengthen the Georgian bay leaf industry, which has a high export potential. In the reporting period, the Program implemented the following activities to support this cluster: Prioritization of bay leaf commodity in Georgia: Due to its versatile use, bay leaf is one of the most exportable and increasingly demanded commodities in Georgia. To better meet the existing demand, the country needs to better commercialize bay leaf production. Currently, there are few commercial bay leaf plantations and raw materials are mostly consolidated on smallholder farms. Industry players believe that the situation can change for the better if bay leaf is included in the list of priority crops of ARDA’s Plant the Future Program, which co-finances the arrangement of new orchards/plantations. With this in view, the USAID Agriculture Program, in close cooperation with the Association of Bay Leaf Producers and Exporters, plans to advocate for prioritization of bay leaf in the Plant the Future Program and support cultivation of modern bay leaf plantations. To move the process forward, the Program developed a bay leaf production guide and information about regions suitable for production based on their soil and other characteristics. The USAID Agriculture Program contracted local extension specialists to develop the guide and a testing laboratory to test the agrochemical, physicomechanical, and entomological properties of soil; define level of essential oils in local bay leaves; and identify pests and diseases in leaves. The tests were conducted in Samegrelo-Zemo Svaneti (Abasha, Khobi, Senaki, Zugdidi, Tsalenjikha, and Chkhorotsku municipalities), Imereti (Vani, Tskaltubo, Samtredia, and Terjola municipalities), Guria (Lanchkhuti, Ozurgeti, and Chokhatauri municipalities), Adjara (Kobuleti, Khelvachauri, and Keda municipalities), and Kakheti (Lagodekhi municipality). Once the findings are discussed with the Association of Bay Leaf Producers and Exporters, the Program will present them to ARDA. Database of bay leaf producers and processors: In October 2019, the USAID Agriculture Program developed a database of bay leaf producers (with at least one-hectare plantation) and processors. The database includes 48 operational agribusinesses: five from Imereti region, five from Adjara region, five from Guria region, and 33 from Samegrelo-Zemo Svaneti region. Overall, 17 out of the 48 agribusinesses operate commercial plantations on a total of 98 hectares. The majority of the businesses interviewed seek: . Financial support to purchase modern processing equipment and modernize their facility; . Assistance in modern food safety standards; and . Assistance in modern production and drying technologies. The USAID Agriculture Program plans to further engage these producers and processors in its technical assistance activities, including group trainings and individual consultancies in the requested areas. Modern food safety norms by bay leaf processors: Compliance with international food safety norms and standards is one of the major challenges in the bay leaf sector. In December 2019, the USAID Agriculture Program contracted ISO Consulting to conduct onsite GAP analysis against HACCP requirements for the following bay leaf processors: . Imereti 98 Ltd and SP Maia Bregadze, based in Imereti region. . SP Eduard Sikharulidze and SP Davit Chkhaidze, based in Guria region. . SP Zhuzhuna Lomaia, SP Irakli Todua, Jumiti Ltd, SP Yuri Lagvilava, SP Soso Kvaratskhelia, SP Spartak Lomaia, and Gepriprava Ltd, based in Samegrelo-Zemo Svaneti region. The GAP analysis is expected to be completed and shared with targeted companies starting in late January 2020.

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2.3.10. Modern Food Safety Standards Improved food safety helps agribusinesses meet regional and export market requirements, attract investment, realize cost savings, and strengthen brands, which is why the USAID Agriculture Program continues to support cold storage operators and food processors in obtaining relevant certifications. The goal of this assistance is to enable them to comply with internationally recognized food safety and operational standards, including HACCP, ISO 22000, Foundation Food Safety System Certification (FSSC) 22000, BRC, and IFS. The Program closely cooperates with ARDA to provide food safety related support to its beneficiary companies operating in target VCs. With the standards and certifications in place, these cold storage operators and food processors can enter new markets (e.g. the EU market, where the certifications are required) and meet the terms of their contracts with buyers (many of whom require these standards as a prerequisite). The Program’s ongoing and initiated food safety certification projects are listed in Annex 1 (submitted as a separate document). Market Access 2.4.1. Improved Horizontal Collaboration at the Farmer Level Cooperative marketing and other horizontal collaborations among target VC growers are weak. This is primarily due to the lack of overall awareness about the benefits and market opportunities brought about by cooperation. The USAID Agriculture Program conducted a number of activities to help the growers understand and embrace the benefits of horizontal linkages. Roundtable discussions with blueberry growers: In October 2019, the USAID Agriculture Program organized roundtable discussions with blueberry growers in Zugdidi and Kobuleti. The goal of this initiative was to identify the existing problems and challenges and collect first-hand information about the technical assistance needed to sustain and advance the beneficiary blueberry enterprises. A total of 38 people participated in discussions, which elicited useful information. The Program will use these insights to provide informed and targeted support. Meeting Blueberry Growers in Western

Support establishment of sectoral association: Sector associations can serve as an important mechanism to address the existing constraints and further strengthen VCs. The Program puts greater emphasis on building the core capacities and/or establishing partner private sector associations (when initiated by the private sector) across all targeted VCs. In the reporting period, the USAID Agriculture Program assisted local blueberry growers in strategizing and formulating VC needs and operations of the association. In December 2019, blueberry growers established the Blueberry Council of Georgia with the aim to unite all key players and facilitate better integration across the VC. The USAID Agriculture Program plans to provide follow-up support to the council through technical assistance and/or capacity building grants to enable the council to introduce services that can promote efficiencies, reduce costs, open markets, and motivate beneficial competition. Cooperation with Georgian Citrus Producers Association: Georgian Citrus Producers Association – Subtropiki was actively engaged in the capacity building activities the USAID Agriculture Program implemented during this Quarter. In particular, eight member-farmers participated in a TOT course designed for the selected group of mandarin growers, consolidators, and public extension specialists. The association’s representatives also participated in field-based educational events dedicated to primary production, harvesting, and postharvest handling practices, thereby enhancing their knowledge and competencies in above-mentioned technical areas. This, in turn, will help the organization to better address challenges and take informed and coordinated actions to strengthen the mandarin sector.

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Database of kiwi producers and processors: In December 2019, the USAID Agriculture Program developed a database of kiwi producers (with no less than 0.5-ha orchards in Samegrelo, Adjara, Guria, and Kakheti (Kvareli municipality) regions), cold storage operators, and food processors that use kiwis in their products. The Program identified 36 kiwi growers: . 18 producers are based in Samegrelo-Zemo Svaneti region. Their orchards make up 51-ha in total and yield around 640 tons annually. . Nine producers operate a total of 9.3-ha orchards in Adjara region. Their annual production capacity comprises around 38.5 tons. . Seven producers are based in Guria region and operate 34.8-ha orchards with annual production capacity of around 50 tons. . Two growers are based in Kakheti region. Their orchards make up a total of 1.2-ha, while annual production capacity comprises around 7 tons. The survey revealed that there are 13 enterprises in Georgia that process kiwis and eight cold storages that store them together with other crops. The USAID Agriculture Program also identified initial technical assistance needs that will be followed up on in the next reporting period. Database of almond and walnut producers and processors: In December 2019, the USAID Agriculture Program, in partnership with the Almond and Walnut Producers Association, started developing a comprehensive database of almond and walnut processors, as well as producers with commercial orchards exceeding 1-ha in Imereti, Shida Kartli, Kvemo Kartli, Mtskheta-Mtianeti, and Kakheti regions. The database will be completed in late January 2020. The Program plans to arrange a follow-up presentation with these agribusinesses to identify directions and mechanisms for cooperation. The majority of the agribusinesses are association members. Roundtable discussion with stone and pome fruit growers: In cooperation with ICCs, the USAID Agriculture Program organized a roundtable discussion with stone and pome fruit growers in Gori, Shida Kartli region. Around 20 large farmers were invited to share information, exchange experiences, and discuss the existing challenges in the stone and pome fruits VCs in Shida Kartli region. The bullets below summarize key problems identified in the course of roundtable discussions: . Lack of irrigation water (water drills). . Absence of laboratory that would check pesticide residues in fresh fruit. . Absence of a factory that would manufacture anti-hail nets or any of its components locally, giving the farmers an opportunity to purchase it locally for competitive price. . Lack of knowledge of postharvest handling and storage practices among the farmers. The USAID Agriculture Program agreed with the representatives of the farmers group and ICC to hold a more structured follow-up discussion in early Spring to identify relevant intervention mechanisms that can mitigate the problems and help famers and other stakeholders improve their operations, thereby strengthening the stone and pome fruit VCs. 2.4.2. Improved Vertical Collaboration The USAID Agriculture Program will focus on the facilitation of vertical collaboration within the targeted VCs in the next Quarter, as the number of grantee and non-grantee beneficiaries is increasing. Since these beneficiaries represent different VC actors, it creates opportunities for collaboration. Some of the planned activities in this direction were launched during this reporting period. These include the survey launched to identify opportunities for strengthening linkages within the domestic agricultural supply chains and establishing market links among local producers, multinationals, hotel chains, and other hotel, restaurant, and café (HORECA) businesses, as well as two recently awarded capacity building grant projects, with one aimed at facilitating export of horticultural commodities and another focused on improving access to modern inputs.

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2.4.3. Building Brand Awareness in Competitive Markets The USAID Agriculture Program acknowledges that a strong and well-positioned brand is vital for gaining competitive advantage, increasing sales volume and the numbers of customers, and becoming more sustainable. Thus, the Program offers its grant recipients cost-shared branding support, which includes development of logos, labels, and packaging configurations, promotional materials, and websites. Informational brochures for organic producers: The USAID Agriculture Program continues providing individual consultancies in marketing to its grantee and non-grantee beneficiaries to enable them to position their products and services in the marketplace, attract more clients, and increase sales. With the Program’s assistance, four organic producers developed corporate brochures (see table below). The beneficiaries will use these brochures to represent themselves at international and local trade exhibitions and meetings with prospective buyers and clients. Company Product Kakheti Bio Ltd Culinary herbs and wild plants Georgian Berry Ltd Fresh raspberries and blackberries Caucasan Ltd Medicinal and culinary herbs, teas, wild berries, and fruits MNK Group Ltd Fresh blackberries

Brand visuals for Caucasus Organic Fruits: With the USAID Agriculture Program’s assistance, Caucasus Organic Fruits built their visual brand for dried fruits and developed promotional materials. Their products can now be found in one of the 20 stores of Georgia’s largest retailer, Europroduct. Caucasus Organic Fruits Ltd is a German-Georgian dried fruit producer established with ARDA’s financial support. Branding and product development support to start-up food processors: In December 2019, the USAID Agriculture Program engaged an international agricultural marketing consultant to assist recently established food processors and agribusinesses that are launching new lines of products for new export markets. The assistance was focused on brand visuals, packaging, and product names. Targeted for this Newly branded products of Caucasus Organic consultancy were: Fruits . Fruit Paper Company Ltd, a Kareli-based processor, established with ARDA’s financial support. With modern equipment, this company can process 10 tons of raw materials daily to produce fruit purees. The USAID Agriculture Program is assisting the Fruit Paper Company to obtain NFA’s authorization to produce baby/kid food and will develop labels to help the beneficiary compete with international brands that are available at the local market. . TMT LLC5, a Kaspi-based food processor, which is producing jams, compotes, sauces, marinades, and various canned food. With the USAID Agriculture Program’s assistance, the company will identify suitable products for mainstream customers in these and other countries. In addition, the Program’s international marketing consultant will provide recommendations on brand visuals and product names to enable TMT Ltd to compete with other brands and attract target customers. . Achinebuli LLC6, a Telavi-based juice producer, established with ARDA’s support. With its modern equipment, the company produces 100% natural apple, peach, blackberry, and grape juices and supplies leading supermarket chains in Georgia. Achinebuli LLC is now considering whether to enter export markets in the Gulf region and the EU, in particular. The

5 www.tiemti.ge 6 www.alalijuice.ge

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USAID Agriculture Program’s international marketing consultant will provide recommendations on brand visuals, label graphics, and market-demanded juices. . SP Davit Janelidze, a start-up enterprise, which is launching production of vegetable and greens creamy sauces in Tskaltubo municipality, Imereti region. The company will become fully operational in February 2020 and plans to supply packed sauces to both local and international markets. At present, SP Davit Janelidze is considering whether to enter markets in Ukraine, the EU, and the Gulf region. The USAID Agriculture Program’s international marketing consultant will provide recommendations on the most suitable products for export, as well as brand visuals and names. The goal of this assistance is to enable the enterprise to compete with the flavors, blends, and styles of products available in target export markets. . Kartuli Agroprodukti Ltd7, a Gurjaani-based juice producer, established with ARDA’s support. Equipped with modern infrastructure, the company plans to launch production of mono juices and fruit and vegetable juice blends and is targeting the EU and Gulf region. The USAID Agriculture Program’s international marketing consultant will provide recommendations on brand visuals, market-demanded juice blends, and website content and graphics. The recommendations will be shared and discussed with the beneficiaries in late January 2020. 2.4.4. Brand Image for International Fairs In December 2019, the USAID Agriculture Program engaged its international marketing consultant to assist Enterprise Georgia of the Ministry of Economy and Sustainable Development of Georgia (MoESD) in developing the visual style, branding guidelines, and display structures that will better position the country as a point of origin at international trade fairs. This will be done through a collaborative approach with the relevant state institutions, such as MoESD, MEPA, and ARDA, as well as the private sector. Enterprise Georgia expects to collect feedback from these institutions through questionnaires that will be developed by the Program’s international consultant by late January 2020. Based on the findings, the Program will provide a follow-up support. 2.4.5. International Trade Fairs In partnership with Enterprise Georgia, the USAID Agriculture Program plans to support participation of its grant recipients and beneficiary agribusinesses in Biofach 2020 and Gulfood 2020 trade fairs. These fairs have been selected by Enterprise Georgia and ARDA as the most relevant and promising markets for the selected VCs: Biofach 2020 is one of the world’s leading trade fairs for organic food that will take place in Nuremberg on February 12-15, 2020. Enterprise Georgia and the USAID Agriculture Program jointly identified four organic producers that will participate in the fair, including Georgian Berry Ltd (fresh raspberries and blackberries), Kakheti Bio Ltd (culinary herbs and wild plants), Caucasan Ltd (medicinal and culinary herbs, teas, wild berries, and fruits), and Caucasus Organic Fruits Ltd (dried fruits and vegetables). With the Program’s and Enterprise Georgia’s assistance, the beneficiary companies registered and uploaded in a timely manner the required product-specific information on the relevant system provided by official organizers. To maximize the results of this fair and provide the exhibitors with tailored on-site assistance, the Program plans to also fund the participation of Caucascert LLC’s representative, since Caucascert is the only organic certifier body in Georgia. In early January 2020, the Program will arrange individual meetings with participants to ensure that each company is prepared and understands the benefits and opportunities this fair can bring about. The Program will collaborate with Enterprise Georgia and Caucascert to prepare brief outlines of on-site activities for each participant company.

7 www.gefruit.ge

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Gulfood 2020 takes place on February 16-20, 2020 in Dubai. It is the largest fair catering to Middle Eastern markets. In partnership with Enterprise Georgia, the USAID Agriculture Program plans to provide financial and technical support to Georgian exporters and help them exhibit their products at Gulfood 2020. In total, 14 Georgian agribusinesses have been selected to participate in the trade fair, including the Program and ARDA’s six beneficiary companies: Georgian Nectar Ltd (natural juice producer), Geoflower Ltd (culinary herbs and herbal tea producer), TMT Ltd (producer of jams/preserves, pickled vegetables, and sauces), Agrolane Ltd (blueberry producer and processor), Blue Valley Ltd (blueberry producer), and Campa Ltd (juice producer). 2.4.6. Linking Farmers and Agro-Processors with Tourism and Catering Industries In December 2019, the USAID Agriculture Program contracted Key Management Solutions (KMS) Georgia LLC – one of the leading consulting companies in tourism and catering industries – to conduct a survey to identify opportunities for strengthening linkages within the domestic agricultural supply chains and establishing market links among local producers, multinationals, hotel chains, and HORECA businesses. Around 70 hotels and catering outlets will be interviewed in Tbilisi, Mtskheta, Kutaisi, Telavi, Sighnagi, Batumi, and Shekvetili to identify their needs for local fresh produce and products. The Program will communicate the findings, along with required standards, to the farmers and agribusinesses and will support them to implement these standards, so that they may become acceptable vendors for international hotel chains. International brands, local chains, and the most popular hotels/chains on TripAdvisor are targeted for this survey. The survey is anticipated to be completed in late January 2020. Based on the findings, the Program will plan follow-up actions to help grant recipients and beneficiaries develop stronger buyer relationships and increase market share within tourism and catering industries. 2.4.7. Promotional Events to Facilitate Market Access The USAID Agriculture Program plans to organize a Berry Fair in West Georgia and a Spice Festival in Tbilisi in cooperation with Enterprise Georgia. The date of the Spice Festival will be set later in PY2, while the Berry Fair is anticipated to be organized in July 2020 in Guria Region. Capacity Building Activities 2.5.1. Capacity Building Program for Agricultural Cooperatives In November 2019, the USAID Agriculture Program met with the Agricultural Cooperatives Development Service of ARDA to discuss technical and organizational aspects of capacity building trainings planned for agricultural cooperatives. Based on the discussions, the Program decided to engage the cooperatives recommended by this Service, along with cooperatives that were covered in the survey conducted earlier. The Program had follow-up communication to identify the anticipated level of engagement and released an RFP for local consulting companies, which have relevant expertise and experience to develop and deliver training courses in business management and agriculture marketing. The Program will assess proposals and select the best candidate to undertake the assignment in January 2020. 2.5.2. Enhanced Capacity of Sectoral and Cross-cutting Business Associations Under this activity, the USAID Agriculture Program plans to offer a tailored, capacity building program that emphasizes four key areas of operation: adopting a strategic approach to organizational development and management; improving services and delivering value to existing and potential members; financial management; and strategic marketing. The Program may engage an international consultant to deliver this training program. 2.5.3. Increased Capacity for Tax and Financial Reporting Among MSMEs In October 2019, Georgia passed a new law on accounting, reporting, and auditing, which requires enterprises of the 3rd and 4th categories, primarily micro- and small- enterprises, to submit their financials on reportal.ge - the first public information resource in the country containing financial and management records from companies registered in Georgia. In response, the USAID Agriculture Program plans to develop a plain language guide for farmers and agribusinesses of varying legal

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status, including agricultural cooperatives, that will help them understand the taxes they need to pay, benefits they can enjoy, and financial reports they are required to submit. This guide will be widely distributed for use by the Program's grant recipients and beneficiaries and serve as a resource for trainings in financial management. 2.5.4. Increased Capacity for Integrated Pest Management In the period of October 27 – November 2, 2019, Trécé Inc hosted representatives of the USAID Agriculture Program, NFA, and FSC Agrovita on a study tour in the US. The group learned about exclusion and detection systems implemented for common pests threatening high-value crops, such as leafy vegetables, berries, nuts, and pome and stone fruits. In addition, the visitors had an opportunity to observe modern practices and technologies US farmers apply in primary production, postharvest handling, and processing of these crops. Visiting orchards in the US 3. Cross-Cutting Key Achievements in the First Quarter of PY2 . 285 people participated in the outreach campaign dedicated to promoting the grant opportunity. . 22 individuals obtained the certificates of Qualified Occupation Safety Specialists. . Pesticide Evaluation Report and Safer Use Action Plan submitted to USAID for review and approval. . Agricultural packaging survey findings presented to the Food Packaging Association.

Inclusive Agricultural Value Chain Development Each grant package submitted to USAID under RFA 002 (see section 1.1) includes an Inclusive Agricultural Value Chain Development (IAVCD) Plan, which covers the gender and youth components. Prior to developing the plans, the Program’s Gender Specialist studies the applicants’ existing and/or planned policy towards engaging women and youth as co-owners, managers, and technical specialists and provides relevant recommendations that are incorporated into IAVCD Plans. After the projects are approved and launched, the Program will monitor implementation of IAVCD Plans as one of the components of the investment projects. In the reporting period, the USAID Agriculture Program developed a capacity building RFA to be released early in Q2 (see section 1.2), focusing on two directions: . Providing opportunities to women-owned MSMEs in the horticultural sector; and . Facilitating youth engagement in agribusiness and rural economic activities. Public Information and Outreach Outreach campaign: After releasing its third RFA for processing enterprises, the USAID Agriculture Program conducted an outreach campaign to increase awareness about the grant opportunity in different regions of Georgia and clarified questions related to the application process and the Program’s requirements with interested agribusinesses and cooperatives. The campaign took place in the period of November 4-19, 2019 and covered 12 sessions, which attracted a total of 285 people (see table below). Attending these meetings Meeting potential applicants in Adjara were the representatives of local municipalities and regional ICCs. These stakeholders received printed versions of the RFA and application forms to further disseminate information among relevant enterprises.

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Location Participants Date Venue Mtskheta, Mtskheta-Mtianeti Region 20 November 4 Mtskheta Municipality City Hall Gori, Shida Kartli Region 14 November 5 Vocational College “Gantiadi” Akhaltsikhe, Samtskhe-Javakheti Region 10 November 6 Centers for Civic Engagement Marneuli, Kvemo Kartli Region 14 November 7 Centers for Civic Engagement Telavi, Kakheti Region 26 November 8 Holiday Inn Telavi Hotel State Representative Office in Ambrolauri, Racha-Lechkhumi and 13 November 11 Racha Lechkhumi- Kvemo Svaneti Kvemo Svaneti Region Region Imereti Region Chamber of Kutaisi, Imereti Region 33 November 12 Commerce and Industry State Representative Office in Zugdidi, Samegrelo-Zemo Svaneti 65 November 13 Racha Lechkhumi- Zemo Svaneti Region Region Ozurgeti, Guria Region 32 November 14 Centers for Civic Engagement Region Chamber of Commerce Batumi, Adjara Region 20 November 15 and Industry Kobuleti, Adjara Region 15 November 16 Agroservice Center Tbilisi 23 November 19 Hotel Coste Total Number of Participants 285

USAID’s Annual Fair: In October 2019, the USAID Agriculture Program organized the participation of 15 supported enterprises in USAID’s Annual Fair. This fair is a unique opportunity for USAID and US Embassy staff to meet the beneficiaries and purchase fresh products. USAID supported companies sold cheese, fruits, vegetables, tea, and the favorite Georgian snacks Churchkhela and dried fruits. Agricultural packaging survey: In November 2019, the USAID Agriculture Program arranged a presentation of USAID’s Annual Fair agricultural packaging survey findings for Food Packaging Association. The Program contracted Export Development Association (EDA) to conduct this survey. EDA provided an overview of the local packaging industry, Georgian and EU legislation, modern packaging trends, types of most demanded packaging options, and market forecasts by volume of all formats of agricultural packaging. As requested by the association, the Program decided to arrange another presentation and invite all key agricultural packaging companies and fresh produce exporters to further discuss potential ways and solutions to meet demand of agribusinesses in this area and facilitate coordination between food packaging companies and agribusinesses. The Program plans to translate the survey into Georgian and share it with relevant stakeholders. Environmental Compliance Labor safety measures: In cooperation with Occupational Safety, Health, and Environment Association of Georgia, the USAID Agriculture Program delivered an intensive training program on Occupational Safety and Health to representatives of Georgian agribusinesses that operate in priority VCs in Imereti region and Tbilisi. This activity was initiated in response to the new “Law on Occupational Safety and Health,” which requires all businesses to instruct and train staff in labor safety norms, emergency preparedness, and safe use of machinery, equipment, and tools. Through these training sessions, the Program enabled beneficiaries to Agribusinesses trained in Occupational Safety and Health Page 29 | PY2 First Quarterly Report Contract 72011418C00001/ The USAID Agriculture Program implement the above-mentioned requirements with the aim of improving employment conditions and workers’ health and safety. In total, 22 individuals obtained the certificates of Qualified Occupation Safety Specialists. Seventeen agribusinesses also received practical guidance to implement the standards into their operations. The Program was pleased to receive positive feedback from the participants and will continue to deliver similar trainings in other regions of Georgia. Pesticide Evaluation Report and Safer Use Action Plan: In the reporting period, the USAID Agriculture Program’s international consultant drafted Pesticide Evaluation Report and Safer Use Action Plan (PERSUAP). The document was shared with USAID’s Bureau Environmental Officer (BEO) for review. The Program addressed the BEO’s comments and later re-submitted the PERSUAP for approval. When the document is approved, selected chapters will be translated and distributed to the Program’s grantee and non-grantee beneficiaries, who will use it as a guide to ensure safe use, transportation, storage, and disposal of pesticides. Access to Finance Prior to soliciting In-Kind grant applications from processing enterprises, the USAID Agriculture Program invited representatives of TBC Bank, Bank of Georgia, VTB Bank, Synergy Capital, and Credo Bank to share information about its third RFA and seek their assistance in increasing awareness about the grant opportunity among relevant enterprises. The representatives of the financial institutions agreed to notify their client agribusinesses about the opportunity and encourage suitable candidates to attend information sessions and submit applications. The banks disseminated information among their regional coordinators, who, in turn, informed different branches to eventually reach potential applicants. 4. Donor and Host-Country Coordination Public Sector Partners The Ministry of Environment Protection and Agriculture of Georgia: The USAID Agriculture Program regularly coordinates activities, including the Program’s initiatives designed to develop nurseries in Georgia. Agricultural and Rural Development Agency: In PY1, the USAID Agriculture Program established strong relations with ARDA and actively cooperates with the agency in order to obtain necessary information, identify potential beneficiaries, and plan joint activities. National Food Agency and Scientific-Research Center of Agriculture: NFA and SRCA have become one of the most significant public sector partners of the USAID Agriculture Program. A fair share of joint activities in this Quarter were focused on voluntary nursery certification project (see section 2.1.1). In December 2019, the USAID Agriculture Program facilitated a workshop on the Government to Government (G2G) project that will be implemented by NFA. The workshop gathered representatives from USAID, NFA, and USDA. This G2G project Government to Government Co-Creation aims to strengthen NFA’s plant protection capacity and will Workshop focus on two major areas – phytosanitary Pest Risk Analysis and the development of a phytosanitary supervision and surveillance system. During the workshop, NFA gave a presentation about the project concept, budget, and milestones, while other attendees provided recommendation necessary to finalize the proposal. Enterprise Georgia: The USAID Agriculture Program signed a TOC with Enterprise Georgia in PY1. The parties now actively cooperate to organize the participation of beneficiary companies in international trade fairs (see section 2.4.5). The Program also assists the institution in developing the

Page 30 | PY2 First Quarterly Report Contract 72011418C00001/ The USAID Agriculture Program visual style, branding guidelines, and display structures that will better position Georgia as a point of origin at international trade fairs (see section 2.4.4). Private Sector Partners McDonald’s Georgia: In October 2019, the USAID Agriculture Program and McDonald’s Georgia signed a TOC to reflect their mutual intention to cooperate and coordinate on the development of a sustainable local food supply chain for McDonald’s Georgia and facilitate market linkages between the company and the Program’s beneficiaries operating in target vegetables and culinary herbs VCs. As part of the TOC, the USAID Agriculture Program assisted Smart Logistics Ltd – McDonald’s Georgia’s supplier of lettuces – in introducing GlobalGAP norms and practices in its operations. The company obtained corresponding certificate in November 2019. Signing TOC with McDonald’s Georgia Trécé Inc: The USAID Agriculture Program established strong relations with Trécé Inc and was hosted by this partner on a study tour in the US (see section 2.5.4). The Program intends to further expand collaboration to introduce modern IPM practices applied for pests other than Brown Marmorated Stink Bug (BMSB). Coca-Cola Company: In Q2, the USAID Agriculture Program partnered with Coca-Cola Company and NFA to organize a Scientific Conference on Food and Food Additives Safety. The event gathered highly experienced scientists form Turkey and Georgia, along with representatives of governmental agencies of Ukraine, Moldova, Armenia, and Azerbaijan, donor organizations, consulting firms, business service providers, juice and spice producers, testing laboratories, and other food manufacturers, who shared Scientific Conference on Food and Food their experience and knowledge of various aspects of food Additives Safety and food additives safety. The conference covered topics such as food safety policy in Georgia, risk assessment of food additives, the practice and importance of reflecting science in EU regulations, and public policy. It also highlighted issues ranging from an overview of the existing regulations, risk communication, implementation of food safety standards in local companies, and perspectives and challenges regarding local markets. Program staff led specific topical sessions, introduced segments and speakers, and provided concluding summary statements. The USAID Agriculture Program will continue collaboration with Coca-Cola Company to develop joint activities focused on building capacity of the NFA in food safety area. Other Donor-Funded Projects Feed the Future Egypt Food Secuity and Agribusiness Support Project: The USAID Agriculture Program continuously seeks to share the experience of USAID Caucasus and Georgia’s best practices. In the reporting period, the Program hosted the staff members and grantees of the Feed the Future Egypt Food Secuity and Agribusiness Support (FAS) Project, as well as the representative of the Egyptian Ministry of Agriculture and Land Reclamation (MALR). The group visited Georgian FSCs in Shida Kartli, Kakheti, and Imereti regions to learn about Georgia’s FSC model and observe best practices and innovations in their operations. This will give FAS grantees a clear idea of what their Farm Service Center/Mechanization Service Center (MSC) businesses can look like. In addition, Visiting a Farm Service Center in Shida MALR was interested in outsourcing extension services to the Kartli Region

Page 31 | PY2 First Quarterly Report Contract 72011418C00001/ The USAID Agriculture Program private sector input suppliers (FSC/MSCs) in Egypt and learned how a similar initiative works in Georgia. 5. Project Management Operations, Facilities, and Equipment On November 14, 2019, the USAID Agriculture Program’s contract was modified in order to reflect the expansion of the budget by $4,915,697 and new priority VCs, including nuts (except for hazelnuts) and kiwi fruits (under berry VC). It should be noted, that within the scope of the expansion, the Program will also emphasize the establishment of Public-Private Partnerships. Staffing New staff positions: After receiving USAID’s approval for expansion of the project, the USAID Agriculture Program announced calls to recruit new staff members on the positions of Public-Private Partnership Manager, Grants Procurement Assistant, Grants Analyst, and Nuts (Walnuts, Pistachios, and Almonds) VC Specialist. The Program will interview shortlisted applicants and select suitable candidates, who will undertake these positions early in Q2. “Mariam Kutelia Research Grant Competition”: In October 2019, the USAID Agriculture Program announced the “Mariam Winners of the “Mariam Kutelia Research Grant” competition Kutelia Research Grant” competition for its interns. The goal of this initiative was to solicit research ideas that address the existing constraints in the agriculture sector of Georgia. The Program received proposals from four groups of interns. As part of the selection process, the committee assessed the proposals and presentations delivered by the applicants and selected two winners that obtained $1,000 grant to carry out researches. The grant funds are provided by CNFA. International Subcontracting In the reporting period, the USAID Agriculture Program’s sub-contractor SEEDEV worked closely with NFA and SRCA on nursery certification project, sharing valuable insights, expertise, and methodologies with the agencies (see section 2.1.1). As for WFLO, the sub-contractor is working on the cold chain assessment report, which is anticipated to be finalized in Q2. Monitoring and Reporting Technical Assistance Component: In the reporting period, the USAID Agriculture Program’s Monitoring and Evaluation team was mainly focused on tracking the progress of the TA component, particularly, the activities targeted to non-grantee beneficiary companies. To date, 53 MSMEs are either benefitting from or have received TA in different directions, including: food safety/quality standards; branding/labeling; agricultural technologies; GAP Analysis; trade fairs and etc. Apart from MSMEs, there are individuals who also take part in the above-mentioned initiatives. For this reason, the USAID Agriculture Program visited 14 individuals who completed a TA impact assessment survey. This time, the Monitoring and Evaluation team collected baseline data from those individuals who benefited from different activities and identified an appropriate time lapse for the next survey. This survey will be aimed at attributing the impact on their business performance to the Program’s technical assistance. Key findings will be presented by the end of Q2 in the Semi- Annual Report. One of the most important TA directions initiated by the USAID Agriculture Program in this Quarter were the group trainings in Occupational Health and Safety for interested grantee and non-grantee companies (see section 3.3). High importance and relevance of this training program has been acknowledged by the Program and the USAID Georgia mission. The Program’s Monitoring and Evaluation team familiarized themselves with GOG’s new regulations and international practice in

Page 32 | PY2 First Quarterly Report Contract 72011418C00001/ The USAID Agriculture Program this direction and identified corresponding program indicators from the Monitoring, Evaluation, and Learning (MEL) plan in order to capture the outputs and outcomes of this particular TA. As a result, the Program selected eight indicators, where this activity will contribute to the achievement of overall program goals:

Number of individuals participating in USG food security programs [IM-level] EG.3-2 Full-time equivalent employment of firms receiving USG assistance EG.5-2 Number of individuals in the agriculture system who have applied improved management practices or EG.3.2-24 technologies with USG assistance [IM-level] Number of private sector firms that have improved management practices or technologies as a result of EG.5.2-2 USG assistance CBLD-9: Percent of USG-assisted organizations with improved performance [IM-level] EG.3.2-29 Number of firms receiving USG-funded technical assistance for improving business performance EG.5.2-1 Number of recipient organizations that receive technical assistance Custom Number of individuals who have received USG supported short-term agricultural sector productivity or Custom food security training

In cooperation with Occupational Safety, Health, and Environment Association of Georgia, the USAID Agriculture Program assisted 21 agricultural companies and trained one employee of NFA on a cost- shared basis. Out of the 21 beneficiaries, three represented the Program’s grant recipient enterprises (see section 3.3). As an immediate result of this training, participant companies hired new qualified personnel in order to further develop and implement Occupational Safety, Health, and Environment Standards at their workplaces. This, in turn, will bring significant benefits to these companies over the certain period of time. Grants Component: Under the second RFA, USAID approved nine recipients of In-Kind grants (see section 1.1). The USAID Agriculture Program will visit these enterprises in Q2 to collect the baseline and projected performance data. Financial Expenditure Summary USAID Contract No.: 72011418C00001 Date of Issuance: 9/24/2018 Total Potential Amount: $23,140,394.00 Amount Obligated to date: $6,961,965.00 Total Project Funds Expended through: 11/30/2019 $3,229,122.43

Key Constraints The major constraint the USAID Agriculture Program faced in this Quarter was slow approvals of submitted grant packages. This issue also concerns the private sector – the grant applicants. The Program fears that this may reduce the confidence of grant recipients who wish to invest their funds with minimum delay in order to achieve maximum impact. Annex 1: The Ongoing, Initiated, and Completed Technical Assistance Projects in Quarter One of Year Two Submitted as a separate document.

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Annex 1: The Ongoing, Initiated, and Completed Technical Assistance Projects in Quarter One of Year Two

Type of Technical No. Beneficiary Value Chain Activity Profile Location Project Status Completion Date Beneficiary Assistance

Food Safety

HACCP/GAP Anticipated in 1 Imereti 98 Ltd Culinary Herbs Bay Leaf Processor Kutaisi Non-Grantee Ongoing Analysis January 2020 HACCP/GAP Anticipated in 2 SP Maia Bregadze Culinary Herbs Bay Leaf Processor Kutaisi Non-Grantee Ongoing Analysis January 2020 SP Eduard Chokhatauri HACCP/GAP Anticipated in 3 Culinary Herbs Bay Leaf Processor Non-Grantee Ongoing Sikharulidze Municipality Analysis January 2020 Lanchkhuti HACCP/GAP Anticipated in 4 SP Davit Chkhaidze Culinary Herbs Bay Leaf Processor Non-Grantee Ongoing Municipality Analysis January 2020 SP Zhuzhuna Khobi HACCP/GAP Anticipated in 5 Culinary Herbs Bay Leaf Processor Non-Grantee Ongoing Lomaia Municipality Analysis January 2020 Khobi HACCP/GAP Anticipated in 6 SP Irakli Todua Culinary Herbs Bay Leaf Processor Non-Grantee Ongoing Municipality Analysis January 2020 Chkhorotsku HACCP/GAP Anticipated in 7 Jumiti Ltd Culinary Herbs Bay Leaf Processor Non-Grantee Ongoing Municipality Analysis January 2020 Khobi HACCP/GAP Anticipated in 8 SP Yuri Lagvilava Culinary Herbs Bay Leaf Processor Non-Grantee Ongoing Municipality Analysis January 2020 SP Soso Khobi HACCP/GAP Anticipated in 9 Culinary Herbs Bay Leaf Processor Non-Grantee Ongoing Kvaratskhelia Municipality Analysis January 2020 Khobi HACCP/GAP Anticipated in 10 SP Spartak Lomaia Culinary Herbs Bay Leaf Processor Non-Grantee Ongoing Municipality Analysis January 2020 Khobi HACCP/GAP Anticipated in 11 Geopriprava Ltd Culinary Herbs Bay Leaf Processor Non-Grantee Ongoing Municipality Analysis January 2020 Fruit and Medical Lanchkhuti Anticipated in 12 SP Giorgi Melua Culinary Herbs Non-Grantee HACCP Certification Ongoing Herbs Processor Municipality August 2020

1

Type of Technical No. Beneficiary Value Chain Activity Profile Location Project Status Completion Date Beneficiary Assistance Vegetables and ISO 22 000 13 Euro Farm Ltd Wholesaler Tbilisi Non-Grantee Completed December 2019 Culinary Herbs Certification Spices/Medical Herbs ISO 22 000 Anticipated in 14 Farconi Ltd Culinary Herbs Kutaisi Non-Grantee Ongoing Processor Certification January 2020 Georgian Stone and Pome Gurjaani ARDA’s ISO 22 000 Anticipated in 15 Stone Fruits Ongoing Agroproduct Ltd Fruits Processor Municipality Beneficiary Certification June 2020 Georgian Fruit Stone and Pome Apple and Cherry Kareli ARDA’s ISO 22 000 Anticipated in 16 Paper Company Initiated Fruits Processor Municipality Beneficiary Certification August 2019 Ltd Stone and Pome Stone and Pome Sighnaghi ARDA’s 17 Badagi + Ltd GAP Analysis Completed December 2019 Fruits Fruits Processor Municipality Beneficiary Stone and Pome Cold Storage Sighnaghi ARDA’s 18 Khornabuji Ltd GAP Analysis Completed December 2019 Fruits Operator Municipality Beneficiary Stone and Pome Cold Storage Sighnaghi ARDA’s 19 Alazani Ltd GAP Analysis Completed December 2019 Fruits Operator Municipality Beneficiary Borjomi Product Stone and Pome Stone and Pome Borjomi ARDA’s 20 GAP Analysis Completed November 2019 Company Ltd Fruits Fruits Processor Municipality Beneficiary Green Crops Mtskheta 21 Culinary Herbs Lettuce Grower Non-Grantee GAP Analysis Completed November 2019 Distribution Ltd Municipality Anticipated in 22 Dabi Ltd Culinary Herbs Spice Processor Tbilisi Non-Grantee GAP Analysis Ongoing January 2020 Ozurgeti Anticipated in 23 Guruli Ltd Culinary Herbs Spice Processor Non-Grantee GAP Analysis Ongoing Municipality January 2020 Mtskheta- Vegetables and Tomato and Lettuce GlobalGAP 24 Smart Logistics Ltd Mtianeti Non-Grantee Completed November 2019 Culinary Herbs Producer Certification Municipality Zugdidi ARDA’s GlobalGAP Anticipated in 25 Drill Master Ltd Berry Blueberry Grower Ongoing Municipality Beneficiary Certification August 2020 Agricultural Zestaponi GlobalGAP Anticipated in 26 Cooperative Berry Raspberry Grower Non-Grantee Ongoing Municipality Certification August 2020 Agromomavali

2

Type of Technical No. Beneficiary Value Chain Activity Profile Location Project Status Completion Date Beneficiary Assistance SP Davit Nursery and Berry Gori ARDA’s GlobalGAP Anticipated in 27 Berry Ongoing Robanishvili Grower Municipality Beneficiary Certification August 2020 Agricultural Vani GlobalGAP Anticipated in 28 Berry Raspberry Grower Grantee Ongoing Cooperative Chiri Municipality Certification August 2020 GAP Tetritskaro Anticipated in 29 Biorasi Ltd Culinary Herbs Lettuce Grower Non-Grantee Analysis/GlobalGAP Ongoing Municipality August 2020 Certification

Organic Production Consultancy in

Aleksandre Marneuli Organic Farming & Anticipated in 30 Berry Blackberry/Raspberry Non-Grantee Ongoing Vashakidze Municipality Organic June 2020 Grower Certification Consultancy in Blackberry/Raspberry Tskaltubo Organic Farming & Anticipated in 31 MNK Group Ltd Berry Grantee Ongoing Grower Municipality, Organic June 2020 Certification Consultancy in Agricultural Organic Farming & Anticipated in 32 Cooperative Berry Raspberry Grower Kvareli Non-Grantee Ongoing Organic June 2020 Agrostore Certification Gurjaani Consultancy in Anticipated in May 33 Gealogos Ltd Berry Blackberry Grower Non-Grantee Ongoing Municipality Organic Farming 2020 Marneuli Consultancy in Anticipated in May 34 Georgian Berry Ltd Berry Blackberry Grower Non-Grantee Ongoing Municipality Organic Farming 2020 SP Manana Mtskheta Consultancy in Anticipated in May 35 Berry Strawberry Grower Non-Grantee Ongoing Anjaparidze Municipality Organic Farming 2020 SP Elizabed Sighnaghi Organic Anticipated in May 36 Culinary Herbs Dried Herbs Producer Non-Grantee Ongoing Khmiadashvili Municipality Certification 2020 Kareli Organic Anticipated in July 37 Shavra Ltd Stone Fruits Stone Fruits Grower Non-Grantee Ongoing Municipality Certification 2020 SP Rusudan Sagarejo Organic Anticipated in 38 Culinary Herbs Saffron Grower Non-Grantee Ongoing Kharabadze Municipality Certification December 2020

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Type of Technical No. Beneficiary Value Chain Activity Profile Location Project Status Completion Date Beneficiary Assistance

Marketing and Branding Consultancy in Anticipated in 39 Dabi Ltd Culinary Herbs Spice Producer Tbilisi Non-Grantee Labelling Ongoing January 2020 Requirements Consultancy in Anticipated in 40 Farconi Ltd Culinary Herbs Spice Producer Tbilisi Non-Grantee Labelling Ongoing January 2020 Requirements Consultancy in Ozurgeti Anticipated in 41 Guruli Ltd Culinary Herbs Spice Producer Non-Grantee Labelling Ongoing Municipality January 2020 Requirements Consultancy in SP Giorgi Anticipated in 42 Culinary Herbs Spice Producer Rustavi Non-Grantee Labelling Ongoing Chkhaidze January 2020 Requirements Consultancy in SP Zurab Samtredia Anticipated in 43 Culinary Herbs Spice Producer Non-Grantee Labelling Ongoing Kokhreidze Municipality January 2020 Requirements Consultancy in Jam, Compotes, and Fruits and Kaspi Product Anticipated in 44 TMT Ltd Marinated Non-Grantee Ongoing Vegetables Municipality Development and January 2020 Vegetables Producer Branding Consultancy in ARDA’s Product Anticipated in 45 Achinebuli Ltd Fruits and Berry Juice Producer Telavi Ongoing Beneficiary Development and January 2020 Branding Consultancy in Product Anticipated in 46 SP Davit Janelidze Culinary Herbs Sauce Producer Tskaltubo Non-Grantee Ongoing Development and January 2020 Branding Consultancy in Kartuli Gurjaani ARDA’s Product Anticipated in 47 Fruits and Berry Juice Producer Ongoing Agroprodukti Ltd Municipality Beneficiary Development and January 2020 Branding

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Type of Technical No. Beneficiary Value Chain Activity Profile Location Project Status Completion Date Beneficiary Assistance Culinary Herbs Branding Support 48 Kakheti Bio Ltd Culinary Herbs Grower/Wild Plants Tsnori Non-Grantee and Promotional Completed December 2019 Processor Materials Branding Support Culinary Herbs & 49 Caucasan Ltd Culinary Herbs Kharagauli Non-Grantee and Promotional Completed November 2019 Wild Fruits Processor Materials Branding Support Fresh Raspberry and 50 Georgian Berry Ltd Berry Marneuli Non-Grantee and Promotional Completed November 2019 Blackberry Grower Materials Branding Support 51 MNK Group Ltd Berry Blackberry Grower Tskhaltubo Grantee and Promotional Completed December 2019 Materials

Modern Production Practices Consultancy in New SP Aleksandre Kvareli 52 Berry Strawberry Grower Grantee Strawberry Variety Completed October 2019 Sologhashvili Municipality Production Consultancy in New Marneuli 53 Mza Chitili Ltd Berry Nursery Grantee Strawberry Variety Completed October 2019 Municipality Production Consultancy in New SP Giorgi Marneuli 54 Berry Raspberry Grower Non-Grantee Raspberry Variety Completed November 2019 Gujabidze Municipality Production Consultancy in New SP Mate Kaspi 55 Berry Raspberry Grower Non-Grantee Raspberry Variety Completed November 2019 Khurtsidze Municipality Production Agricultural Consultancy in New Khobi 56 Cooperative Berry Strawberry Grower Grantee Strawberry Variety Completed October 2019 Municipality Shamatia Production Agricultural Shortlisted Consultancy in New Senaki 57 Cooperative Berry Strawberry Grower Candidate for Strawberry Variety Completed October 2019 Municipality Persimmon Round Two Production Raspberry, Consultancy in New SP Berdia 58 Berry Blackberry, and Tskaltubo Grantee Strawberry Variety Completed October 2019 Silagadze Strawberry Grower Production

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Type of Technical No. Beneficiary Value Chain Activity Profile Location Project Status Completion Date Beneficiary Assistance Agricultural Consultancy in New Raspberry and Senaki 59 Cooperative Dk- Berry Grantee Raspberry Variety Completed November 2019 Strawberry Grower Municipality Kolga Production Raspberry, Consultancy in New Agricultural Gurjaani 60 Berry Blackberry, and Non-Grantee Raspberry Variety Completed November 2019 Cooperative Gile Municipality Strawberry Grower Production Consultancy in New Kareli 61 SP Ucha Elbakidze Berry Raspberry Grower Non-Grantee Raspberry Variety Completed November 2019 Municipality Production Consultancy in Khelvachauri 62 Beglar Tsintsadze Mandarin Mandarin Producer Non-Grantee Postharvest Completed November 2019 Municipality Practices Consultancy in Khelvachauri 63 Resan Paghava Mandarin Mandarin Producer Non-Grantee Postharvest Completed November 2019 Municipality Practices Consultancy in 64 Levan Beridze Mandarin Mandarin Producer Batumi Non-Grantee Postharvest Completed November 2019 Practices Consultancy in 65 Tengiz Kartivadze Mandarin Mandarin Producer Batumi Non-Grantee Postharvest Completed November 2019 Practices Consultancy in Kobuleti 66 Davit Ananidze Mandarin Mandarin Producer Non-Grantee Postharvest Completed November 2019 Municipality Practices Consultancy in Rostom Khelvachauri 67 Mandarin Mandarin Producer Non-Grantee Postharvest Completed November 2019 Tvalgaridze Municipality Practices Consultancy in Malkhaz Khelvachauri 68 Mandarin Mandarin Producer Non-Grantee Postharvest Completed November 2019 Diasamidze Municipality Practices Consultancy in Kobuleti 69 Aslan Tsulukidze Mandarin Mandarin Producer Non-Grantee Postharvest Completed November 2019 Municipality Practices

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Type of Technical No. Beneficiary Value Chain Activity Profile Location Project Status Completion Date Beneficiary Assistance Consultancy in Manuchar Kobuleti 70 Mandarin Mandarin Producer Non-Grantee Postharvest Completed November 2019 Nijaradze Municipality Practices Consultancy in Khelvachauri 71 Jaba Tavartkiladze Culinary Herbs Lettuce Producer Non-Grantee Greenhouse Completed December 2019 Municipality Production Consultancy in Khelvachauri 72 Joni Tavartkiladze Culinary Herbs Lettuce Producer Non-Grantee Greenhouse Completed December 2019 Municipality Production Consultancy in Khelvachauri 73 Medea Tsulukidze Culinary Herbs Lettuce Producer Non-Grantee Greenhouse Completed December 2019 Municipality Production Consultancy in Shakro Khelvachauri 74 Culinary Herbs Lettuce Producer Non-Grantee Greenhouse Completed December 2019 Malakmadze Municipality Production Consultancy in Khelvachauri 75 Mzia Tsuluidze Culinary Herbs Lettuce Producer Non-Grantee Greenhouse Completed December 2019 Municipality Production Consultancy in Levan Khelvachauri 76 Culinary Herbs Lettuce Producer Non-Grantee Greenhouse Completed December 2019 Tavartkiladze Municipality Production

Study Tours Study Tour in Table Grape Production SP Vazha Kvareli 77 Table Grapes Table Grape Grower Non-Grantee and Postharvest Completed October 2019 Kemoklidze Municipality Practices in Moldova Study Tour in Table Grape Production Gori 78 David Esitashvili Table Grapes Table Grape Grower Non-Grantee and Postharvest Completed October 2019 Municipality Practices in Moldova Gurjaani Study Tour in Table 79 Tedo Chutlashvili Table Grapes Table Grape Grower Non-Grantee Completed October 2019 Municipality Grape Production

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Type of Technical No. Beneficiary Value Chain Activity Profile Location Project Status Completion Date Beneficiary Assistance and Postharvest Practices in Moldova Study Tour in Table Grape Production Gori 80 Badri Devidze Table Grapes Table Grape Grower Non-Grantee and Postharvest Completed October 2019 Municipality Practices in Moldova Study Tour in Table Grape Production Jumber Telavi 81 Table Grapes Table Grape Grower Non-Grantee and Postharvest Completed October 2019 Khundadze Municipality Practices in Moldova Study Tour in Table Grape Production Konstantine Telavi 82 Table Grapes Table Grape Grower Non-Grantee and Postharvest Completed October 2019 Qazarashvili Municipality Practices in Moldova Study Tour in Table Grape Production Sagarejo 83 Leila Devdaridze Table Grapes Table Grapes Grower Non-Grantee and Postharvest Completed October 2019 Municipality Practices in Moldova Study Tour in Table Grape Production SP Ramana Kvareli 84 Table Grapes Table Grapes Grower Non-Grantee and Postharvest Completed October 2019 Tsukoshvili Municipality Practices in Moldova Perishable Applicant of RFA Food Tech and 85 Gigi Ltd Cold Storage Tbilisi Completed October 2019 Vegetables 002 Packaging Expo Perishable Vegetables and Kaspi Food Tech and 86 TMT Ltd Cannery Non-Grantee Completed October 2019 Pome and Stone Municipality Packaging Expo Fruits

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Type of Technical No. Beneficiary Value Chain Activity Profile Location Project Status Completion Date Beneficiary Assistance Concentrate Telavi Food Tech and 87 Natvit Ltd Pome Fruits Non-Grantee Completed October 2019 Production Municipality Packaging Expo Perishable Sauce and Seasoning Tskaltubo Food Tech and 88 SP Davit Janelidze Vegetables and Non-Grantee Completed October 2019 Production Municipality Packaging Expo Culinary Herbs

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