Resilience and Economic Growth in the Sahel - Accelerated Growth (REGIS-AG)

PROJECT YEAR 3 (FY17) QUARTELY REPORT (1 OCTOBER 2016 – 31 DECEMBER 2016)

This quarterly report, submitted for review by the United States Agency for International Development, was prepared by CNFA under USAID Contract No. AID-625-C-14-00001, Resilience and Economic Growth in the

Sahel – Accelerated Growth Project.

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1 Resilience and Economic Growth in the Sahel – Accelerated Growth (REGIS-AG) Contract No. #AID-625-C-14-00001

Resilience and Economic Growth in the Sahel – Accelerated Growth Project

Project Year 3 (FY17) Quarterly Report

(1 October 2016 – 31 December 2016)

USAID Contract

No. AID-625-C-14-00001

Implemented by CNFA

Submitted to:

Patrick Smith

COR USAID/Senegal

1 February 2017

DISCLAIMER

The authors’ views expressed in this publication do not necessarily reflect the views of the U.S. Agency for International Development or the United States Government. 3

TABLE OF CONTENTS

ACRONYMS ...... 5 SUMMARY ...... 1 PART 1 - PROJECT DESCRIPTION ...... 5 REGIS-AG and the RISE initiative ...... 5 1.1 Goal, Objectives and Expected Results ...... 5 1.2 Intervention Areas ...... 5 1.3 Implementation Partners...... 5 1.4 Overview of Value Chain Development Strategy...... 6 PART 2 – PROJECT PERFORMANCE – Level of Achievement in Q1of FY17 Expected Outputs ...... 7 2.1. Component 1: Identify Opportunities through Value Chain and End-Markets Analysis ...... 7 2.1.1. Carrying out complementary studies ...... 7 2.1.2. Refining project strategies ...... 7 2.2. Component 2: Strengthen Linkages and Relationships in Selected Value Chains ...... 10 2.2.1. Cowpea Value Chain ...... 10 2.2.2. Small Ruminants Value Chain ...... 15 2.2.3. Poultry Value Chain ...... 17 2.3. Component 3: Strengthen Input Supply and other Supporting Services and Improve Smallholder and Agro-Pastoralist Access to Interconnected Markets...... 23 2.3.1. Cowpea Inputs and Services ...... 23 2.3.2. Animal Inputs and Services ...... 29 2.4. Component 4 - Increase access to finance, innovation and private sector investment ...... 33 2.5 Component 5: Improve the Enabling Environment for Local and Regional Private Investment...... 35 PART 3 - PROJECT PERFORMANCE - Level of Achievement in Q1 of FY17 Expected Outcomes and Performance Indicators ...... 39 3.1 Strengthening of the M&EL system ...... 39 3.1.1. Assessment of the M&EL system ...... 39 3.1.2. Organizing the baseline study ...... 40 3.2 Status of achievement of performance indicators at Q1 in FY17 ...... 41 PART 4 - PROJECT MANAGEMENT ...... 50 iii Resilience and Economic Growth in the Sahel – Accelerated Growth (REGIS-AG) Contract No. #AID-625-C-14-00001 4.1. Project staff ...... 50 4.2 Management activities ...... 51 4.3 Collaboration with RISE partners ...... 51 4.4 Project Reporting and Public Communication ...... 52

iv Resilience and Economic Growth in the Sahel – Accelerated Growth (REGIS-AG) Contract No. #AID-625-C-14-00001 ACRONYMS

A2N Association Nodde Nooto ADI Association des Distributeurs d’Intrants Agricoles du Niger AE Auxilliaire d’élevage AGRA Alliance for Green Revolution in Africa AGED Association pour la Gestion de l’Environnement et le Développement AGRODIA Association des Grossistes et Détaillants d’Intrants Agricoles du Burkina Faso ANFT National Association of Suppliers, Transformers and Traders of the BVCP ANPB National Association of Livestock Producers AREN Association pour la Redynamisation de l'Elevage au Niger ASCOV Association of Poultry Traders ASPRODEB Association Sénégalaise pour la Promotion des Petits Projets de Développement à la Base BDS Business Development Services BPH Bonnes Pratiques d’Hygiène BOA Bank of Africa CAHW Community Animal Health Workers CNCB Conseil National des Chargeurs du Burkina Faso CNFA Cultivating New Frontiers in Agriculture CERRA Centre Régional de Recherche Agronomique CILSS Permanent Interstate Committee for Drought Control in the Sahel (Comité Permanent Inter-États de Lutte contre la Sécheresse dans le Sahel) COFENBAVI Confédération des Fédérations Nationales de la Filière Bétail/Viande des pays de l’Afrique de l’Ouest COP Chief of Party COR Contracting Officer’s Representative CRA Chambre Régionale d’Agriculture CRS Catholic Relief Services DCA USAID Development Credit Authority DCOP Deputy Chief of Party DDEL Délégation Départementale de l’Elevage DFAP USAID Development Food Aid Program DOPAIR Direction de l’Organisation des Producteurs et de l’Appui aux Institutions Rurales DQA Data Quality Assessment DRE Direction Régionale de l’Elevage DREL Délégation Régionale de l’Elevage DRRAH Direction des Ressources Animales et Halieutiques (Regional Directorate of Animal and Fishery Resources) DSA Direction de la Santé Animale (Directorate of Animal Health) ECOWAS Economic Community of West African States

v Resilience and Economic Growth in the Sahel – Accelerated Growth (REGIS-AG) Contract No. #AID-625-C-14-00001 FAO Food and Agriculture Organization of the United Nations PO Farmers’ Based Organization FCFA Franc de la Communauté Financière d’Afrique FFP Food for Peace FIARA Foire Internationale de l’Agriculture et des Ressources Animales FODEL Fonds de Développement de l’Elevage GERME Gérer Mieux son Entreprise GRET Groupe de Recherches et d’Echanges Technologiques GIE Groupement d’Intérêt Economique GIP Groupement d’Intérêt Public GPS Global Positioning System GSC Groupement de Service et de Conseil IFAD International Fund for Agricultural Development INERA Institut de l'Environnement et de Recherches Agricoles du Burkina Faso INRAN Institut National de Recherche Agricole du Niger IP-BVCP Inter Profession Bétail-Viande Cuirs et Peaux LABOCEL Laboratoire Central de l'Elevage du Niger LAHIA Livelihoods, Agriculture and Health Interventions in Action (DFAP) LOP Life of Project MAGEL Ministère de l’Agriculture et de l’Elevage MCPSP Ministère du Commerce et de la Promotion du Secteur Privé M&E Monitoring and Evaluation MEL Monitoring, Evaluation and Learning MFI Micro-Finance Institution MICA Ministère de l’Industrie du Commerce et de l’Artisanat MT Metric Ton MOU Memorandum of Understanding MRA Ministère des Ressources Animales MSME Micro, Small and Medium Enterprise NGO Non-Governmental/Non-Profit Organization OCADES Organisation Catholique pour le Développement Economique et Social OHADA Organization for the Harmonization of Business Law in Africa ONV-BF Ordre national des Vétérinaires du Burkina Faso ONVN Ordre National des Vétérinaires du Niger OPCV Organisation des Producteurs des Chaînes de Valeur PAS Programme d’Ajustement Structurel PASAM-TAI Program for Support to Household Food Security PDLK Projet d’Appui au Développement Local de la Komandjari PERSUAP Pesticide Evaluation Report & Safe Use Action Plan PICS Purdue Improved Cowpea Storage PMP Performance Monitoring Plan PO Producers’ Organization PRODIB Professionalization of Agro-Input Dealers in Burkina Faso vi Resilience and Economic Growth in the Sahel – Accelerated Growth (REGIS-AG) Contract No. #AID-625-C-14-00001 PROFIL Projet des Filières Agricoles Q Quarter RECA Réseau des Chambres d’Agriculture REGIS-AG Resilience and Economic Growth in the Sahel – Accelerated Growth REGIS-ER Resilience and Economic Growth in the Sahel - Enhanced Resilience RISE USAID Resilience in the Sahel Enhanced ROI Return On Investment RSAP Réseau de Santé Animale de Proximité ROPPA Réseau des organisations paysannes et de producteurs de l'Afrique de l'Ouest SAFEM Salon de l’Artisanat pour la Femme SAREL Sahel Resilience Learning Sawki Mercy Corps DFAP (means facilitation in Haussa language) SHF Small Holder Farmers SIBVAO Salon International Bétail-Viande de l’Afrique de l’Ouest SIMA System of Agricultural Marketing Information SIM-B Système d’Information du Marche Bétail SIPRA Société Ivoirienne de Production Animale SNV Netherlands Development Organization SOFAB Société de Fabrication d’Aliments Bétails au Burkina Faso SOP Strategic Orientation Plan SPRING/DG Strengthening Partnership Results and Innovations in Nutrition Globally/Digital Green STA-SA Société de Transformation Alimentaire STTA Short Term Technical Assistance SVPP Service Vétérinaires Privés de Proximité ToR Terms of Reference ToT Training of Trainers UEMOA Union Economique et Monétaire West Africaine UNICEF United Nations Children's Fund USAID United States Agency for International Development USD US Dollar USG US Government VC Value Chain VCA Value Chain Approach VCS Value Chain Study VETOPROX Vétérinaire de Proximité Sahel VHH Vulnerable Household ViM Victoire sur la Malnutrition (Projet) VSF-B Vétérinaires Sans Frontières-Belgique VVV Vaccinateur Villageois de Volaille WFP World Food Program WHO World Heath Organization ZEPESA Zebu Peul au Sahel (Projet de développement du Zébu Peul au Sahel) vii Resilience and Economic Growth in the Sahel – Accelerated Growth (REGIS-AG) Contract No. #AID-625-C-14-00001 SUMMARY

The Resilience and Economic Growth in the Sahel – Accelerated Growth (REGIS-AG) project REGIS-AG aims to increase the resilience of vulnerable populations in the Sahel region by upgrading the competitiveness and inclusiveness of pro-poor value chains (cowpea, small ruminant and poultry) in agro-pastoralist and marginal agricultural zones of Burkina Faso and Niger. By increasing the inclusiveness and competitiveness of these value chains, REGIS-AG will increase the incomes of 50,000 vulnerable households and communities (both men and women) by 50% or more and to reduce the poverty in these households by 20%. More specifically, the project target is to increase incomes from the cowpea value chain at least by 69% among target vulnerable households and communities, 38% among the small ruminant value chain beneficiaries, and 60% among those involved in the poultry value chain. The project activities are structured around five integrated components.

Under the project’s Component 1, REGIS-AG focuses on carrying out detailed analysis in the target value chains to identify opportunities for catalyzing necessary upgrading of product quality and stakeholders’ operations. During the reporting period, the project validated three reports of studies carried out in Q4 of FY16 to fine-tune understanding or obtain necessary details that were not captured in the three inception studies. In addition, to sharpen the project strategic focus to enhance implementation effectiveness and project performance, the project initiated the development of two strategy documents: a value chain strategy and an access to finance strategy. The field work part of the assignments was carried out during the reporting period. The draft strategies will be available for review and finalization in Q2 of FY17.

During Q1 of FY17, activities carried out under Component 2 covered all three value chains. On the cowpea value chain, the main project achievements are the following: (i) Validation of the draft report of a study conducted by the project team in Burkina Faso Q4 f FY16 to better understand the barriers and obstacles that hamper the transformation of producer groups into GIEs (Economic Interest Group1). (ii) Initiation of a study focused on identifying cowpea-based processed products that have high potential for success in market development in Burkina Faso. The project signed a contract with GRET and held an orientation meeting with the consulting team. Following this meeting, the GRET team started field data collection through individual and group interviews. The study will be completed during Q2 of FY17. (iii) Connecting cowpea processors from Zinder and Torodi to supermarkets. More specifically, REGIS- AG’s support made it possible for the processors’ groups INCHALLAH of Zinder, REFAM of Maradi and Potal of Torodi to sell 1,408 kgs of Dan Wake in stores in Niamey and Maradi for an amount of 864,000 FCFA ($1,452). REGIS-AG will continue monitoring progress made in these business relationships that have been established while supporting processors in quality improvements. (iv) Rolling out intense preparatory sensitization and mobilization activities for setting up the warehouse receipt financing (WRF) mechanism in Burkina Faso and Niger, an initiative that allows for significant

1 Groupement d’intérêt Economique. 1

reductions in transaction costs and increases the potential for relationship-based production and marketing.

On the small ruminant value chain, the main project achievements during the quarter are the following: (i) Facilitating an important post – FIARA order of 700 small ruminants concluded in November in Maradi for 21 million FCFA ($35,294). All animals supplied in this deal were sourced from 31 REGIS-AG beneficiary farmers’ groups representing 420 vulnerable households. (ii) Facilitating the participation of beneficiaries in Burkina Faso Independence Day Fair in Kaya with the sale of 1,173 poultry and 35 pigeons for a total amount of 2,344,300 FCFA ($3,940), in addition to 9 small ruminants for 620, 000 FCFA ($1042). The highlight of REGIS-AG's participation in this fair was the award received by a male producer (who is also a beneficiary of the PROFIL project) for outstanding performance. (iii) Validating the study on the processing of goat's milk into Tchoukou (dry goat cheese) that was carried out in Niger in June-July 2016. Based on the study’s results, four pilot sites belonging to 2 producers’ organizations (POs) in Filingue (Afden Wali and Niima), and 2 others in Zinder (Kama Hanou Jouna and Tatali Daoura) were selected for project support.

On the poultry value chain, the following project achievements during the quarter are focused on capacity building: (i) Developing the training modules required for educating poultry producers in Burkina Faso on the different types of organizations. The actual training for poultry producers will be carried out during the next quarter. The same activity is planned to be carried out in Niger in February 2017. (ii) Training of 30 beneficiaries from 17 POs and five (05) livestock auxiliaries in Niger on the management of poultry and poultry production technical skills. (iii) Identifying 51 poultry producers (including 22 women) in Niger to produce poultry feed. These producers will be groomed by the project to produce poultry feed as a business initially within their respective PO, and eventually for sale in the villages. (iv) Validating the results of the study on the marketing of eggs in Burkina Faso and Niger. The study identified priority areas of focus for developing the market for guinea fowl eggs. Innovative strategies for increasing the supply of guinea fowl eggs on the national market were also identified. (v) Training of 105 marketing officers (including 22 women) in Burkina Faso on marketing, negotiation skills and sales. (vi) Distributing the Practice Guide for poultry farming to 21 poultry POs (1,226 members, including 1,128 women) representing 629 households in Tillabéri. (vii) Identifying 49 poultry producers (including 22 women) in the Region of Tillabéri to be trained in poultry production techniques, management and marketing, as well as facilitating their access to financing for equipment and working capital.

Under the project’s Component 3, activities carried out focused on facilitating work with POs and MFIs to set up an inventory credit system (warrantage) schemes in both countries, promoting the use of PICS bags for cowpea storage, rolling out a training-of-trainers approach (TOT), and facilitate access to animal inputs and services. Concerning the warrantage, a total of 1,075 tons of cowpea were confirmed (600 tons 2 in Burkina Faso and 475 tons in Niger) with a credit requirement of 185,689,900 FCFA ($312,083) [119,789,900 FCFA ($201,327) in Burkina Faso and 65,900,000 ($110,756) in Niger]. On the training-of- trainers, a total of 219 beneficiaries were trained (73 in Burkina and 146 in Niger). They are expected to train 1,754 more (968 in Burkina Faso 786 in Niger) in Q2.

To facilitate access to animal inputs and services, the project activities carried out focused on the identification of private veterinarians who were willing to form a RSAP in Burkina Faso, the selection of AE who will be members of the RSAP to be constituted around each of the selected private veterinarian, and the identification and training of new AE in the project area in Niger. Two (02) private veterinarians volunteered in Burkina Faso. The selection process of AE is under way and will continue in Q2. In Niger, 49 new AEs were identified and 20 AEs trained.

Under the project’s Component 4, activities carried out focused on functional literacy and strategy development to facilitate access to finance. REGIS-AG organized an awareness-raising campaign on functional literacy in all regions in Burkina Faso, with a plan to select 25 new centers in Q2 of FY17. In Niger, functional literacy trainings that are generally carried out from April to mid-October continued in all but one of the 25 centers. The Daourawa center stopped earlier in September due to high drop out of trainees due to high food insecurity. In Burkina Faso, all 18 centers operated throughout the period. In addition, teaching aids were developed and validated by representatives of the technical services in charge of literacy and those responsible for agriculture and livestock.

REGIS-AG carried out the first phase of a consultancy which aims to refine the project strategy in facilitating project beneficiaries’ access to finance. The field work in the two countries was completed during this reporting period. The second phase of the consultancy is planned for Q2 of FY17. It will consist of more meetings with the different actors of the value chains to finalize the strategy document and training of loan officers of ECOBANK, MFI as well REGIS-AG staff.

Under the project’s Component 5, activities carried out during this reporting period focused on analyzing 5 livestock markets in Burkina Faso, facilitating the election of members of the livestock market management committees in Dori and Pissila (Burkina Faso), strengthening collaboration with Trade Hub, supporting the set-up of 9 livestock markets management committees: GIE Hadin Kai of Magara, GIE Nazari of Gada, GIE Sada Zumunta of Kwaya, GIE HASKEN KARA of Mayahi, GIE Fusa'ar Cigaban Kara of Sabon Machi, GIE Cigaban Kasuar Kara of Dakoro , GIE Cigaban Kasuar Kara of Filingué (CKKF), GIE Balleyara Almaney Habbo Mazada (BAHM) of cattle market of Balleyara and GIE Mojéré Lumobé Jawdi of TORODI. The project was also finalizing the report on the study of official and unofficial road taxes in Niger and Burkina on commercial trucks carrying agricultural commodities.

During the reporting period, project performance monitoring activities focused on strengthening the Monitoring, Evaluation and Learning (M&EL) system and actual performance monitoring. Two key activities were carried out to strengthen the M&EL system: an assessment of the system itself by an external consultant and organizing the baseline study. Both reports will be available in Q2 of FY17. For project management, activities focused on ensuring adequate project staffing, meaningful reporting, effective communication, and adequate planning and monitoring. Throughout this reporting period, the project staff count remained stable, with the exception of only two staff members who submitted their 3 resignation: the MEL Manager (Moussa Sayo; end of October) and the Input & Service Market Advisor (Moussa Ango; end of December). In addition, the project Administrative and Finance Assistant (Safiatou Kossongonona Boly) based in Ouagadougou passed away. Administrative processes for filling all vacant positions have been initiated and replacements are expected to occur in Q2 of FY17. All project employees continued to be fully equipped. However, staff mobility and the ability to do the field activity implementation and monitoring remained a challenge. Provisions for purchasing an additional vehicle and two motor cycles for Burkina Faso and six motor cycles for Niger are included in the project budget realignment REGIS-AG submitted to USAID for approval.

A critical planning process on a quarterly basis was initiated. The team extracted activities to be implemented in Q2 based on the overall work plan submitted to USAID to form the plan for Q2. Plans were developed for each component and for each staff. For each activity, milestones were agreed upon, indicators were identified and their target specified. In addition, a specific staff was designated as the leader of the activity (i.e., he/she is responsible for making sure that the activity is carried out as planned) and all staff who should be involved in the delivery of every milestone specified. A review meeting will be held at the end of the quarter to assess progress, draw lessons and plan for the next quarter. These meetings also serve as team building encounters. Concerning collaboration with RISE partners, key project accomplishments during the reporting period are the following:

(i) Finalizing the Joint work plan with LAHIA and Sawki in Niger. (ii) Holding a joint planning meeting with REGIS-ER in Burkina Faso in December. (iii) Planning of a meeting with Trade Hub for joint work plan development in early Q2 of FY17. (iv) Finalization of an MOU with SPRING in December 2016 (v) Holding discussions with the World Food Program (WPF) for joint activities in Burkina Faso and Niger. Joint work-plans in the pipeline are expected to be submitted to USAID in Q2 of FY17.

In terms of reporting and communication, the project accomplished the following:

(i) Submission of the project’s annual report to USAID (ii) Addressing USAID questions on the draft work plan for FY17 (iii) Drafting of four Success stories to be submitted to USAID for approval in Q2 of FY17.

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PART 1 - PROJECT DESCRIPTION

REGIS-AG and the RISE initiative

1.1 Goal, Objectives and Expected Results On 28 January 2015, USAID signed a $34.4 million dollar contract with Washington-based Non- Governmental Organization (NGO) Cultivating New Frontiers in Agriculture (CNFA) for the implementation of a new project: Resilience and Economic Growth in the Sahel – Accelerated Growth (REGIS-AG). REGIS-AG is a five-year project focusing on strengthening the cowpea, small ruminant, and poultry value chains in agro- pastoralist and marginal agricultural zones of Niger and Burkina Faso. By increasing the inclusiveness and competitiveness of these value chains, REGIS-AG will increase the incomes of vulnerable households (including men and women), enhancing the resilience of families and communities to shocks such as drought, conflict, and economic crises.

The three value chains were selected because they have a high potential for commercially oriented activities and either are or have the potential to be critically important sources of income for both men and women in households across livelihood status groups.

The target outcome of REGIS-AG is to increase income from sheep, goats, poultry and cowpeas by 50% among target households (vulnerable households), which will, in turn, contribute to reducing the depth of poverty (among the poor) by 20%. REGIS-AG will reach 270,000 direct beneficiaries.

1.2 Intervention Areas Program implementation is managed through five integrated components: • Component 1: Identify opportunities through value chain and end-market analysis • Component 2: Strengthen vertical and horizontal value chain linkages and relationships in selected value chains • Component 3: Strengthen input supply and other supporting services and improve smallholder and agro-pastoralist access to these interconnected markets • Component 4: Increase access to finance, innovation and private sector investment • Component 5: Improve the enabling environment for local and regional private sector investment

1.3 Implementation Partners REGIS-AG is implemented by a CNFA-led consortium of international and local NGOs. The international NGOs are CRS, SNV and VSF. The local NGOs are A2N and AGED in Burkina Faso, and Karkara and AREN in Niger.

REGIS-AG is not a stand-alone intervention. The project implements innovative “pull” strategies linking smallholder groups to markets, in close cooperation and synergy with projects operating in its target zones and which focus on production-level “push” strategies, in order to move vulnerable households from subsistence-level farming to commercial farming and increased food security. These projects include: • The Enhanced Resilience Cooperative Agreement REGIS-ER • The Food for Peace (FFP) Development Food Aid Programs (DFAP), namely

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o in Niger ▪ Livelihoods, Agriculture and Health Interventions in Action (LAHIA) implemented by a consortium led by Save the Children International ▪ Sawki implemented by a Mercy Corps-led consortium ▪ Program for Support to Household Food Security (PASAM-TAI) implemented by a CRS-led consortium o In Burkina Faso ▪ Programme Faso implemented by a CRS-led consortium ▪ Victoire sur la Malnutrition (ViM) Projet implemented by an ACDI/VOCA-led consortium • The learning agenda procurement Sahel Resilience Learning (SAREL) project. • Non-USAID funded projects o IFAD-funded Projet d’Appui aux Filières Agricoles (PROFIL) implemented by the government in Burkina Faso o World Bank-funded Projet Régional d’Appui au Pastoralisme au Sahel (PRAPS) implemented by government Burkina Faso and Niger o World Food Program projects

To achieve its objectives, REGIS-AG is expected to work in tandem with these projects and others that focus in facilitating production activities that relate to the intensification of livestock and high potential crops operating in its target zones.

1.4 Overview of Value Chain Development Strategy REGIS-AG interventions focus on fostering inclusive economic development and competitiveness in the cowpea, poultry and small ruminant value chains in Burkina Faso and Niger. Through market-oriented, pro- poor interventions, REGIS-AG has the goal to reach 50,000 households and have the following impacts: (a) increasing household incomes by 50%, and (b) reducing poverty of vulnerable households by 20%, thereby strengthening household resilience to shocks. There are two sides to what these objectives imply. On the demand side, this implies changing the development trajectory of small marginalized producers by identifying opportunities within the value chain and demand in the markets (VC/End Market studies) and acting on what is required (work plan implementation) to shift these producers away from selling to collectors/intermediaries in thin local markets only, in favor of selling their products to external, more developed markets within their country and abroad on fairer terms, which will lift them out of poverty. On the supply side, REGIS-AG sister project REGIS-ER and other partners (in and outside the RISE consortium) support the production at the village and farm levels. Consequently, REGIS-AG cannot achieve its objectives without close and coordinated efforts with these projects; only together can these projects succeed in developing inclusive market systems that are resilient and beneficial to all.

To achieve this transformation, REGIS-AG interventions are focused on bringing about the kinds of systemic-level changes that would facilitate market linkages and product and process upgrading or allow them to take place at scale. Such interventions address systemic issues which were identified in the value chain and end market analyses carried out at the beginning of the REGIS-AG project. The analysis concluded that marginalized producers (especially women) are consistently constrained from entering the targeted value chains or fully participating in their development. For this, REGIS-AG uses a value chain

6 approach (VCA) and recognizes that the demand-drive approach is critical for success in value chain development. As a result, REGIS-AG VC development begins by focusing on demand and, more specifically, on the nature and character of demand. There are two important market dynamics that guide REGIS-AG VC activities.

PART 2 – PROJECT PERFORMANCE – Level of Achievement in Q1of FY17 Expected Outputs

2.1. Component 1: Identify Opportunities through Value Chain and End-Markets Analysis Under the project’s Component 1, REGIS-AG focuses on carrying out detailed analysis in the target value chains to identify opportunities for catalyzing necessary upgrading of product quality and stakeholders’ operations. After the project inception studies, additional complementary analysis was carried out either to deepen understanding of issues or to refine project strategies.

2.1.1. Carrying out complementary studies During the reporting period, the project validated three reports of complementary studies carried out in Q4 of FY16 to fine-tune the understanding and to obtain the necessary details that were not captured in the three inception studies. Table 1 presents a list of the activities implemented in relation to those studies. Details are provided under the corresponding project components.

Table 1: List of activities implemented in relation to market analyses/studies and the strategies completed during this reporting period Reference in Activity the work plan 1. Held a workshop to validate the report on the study conducted to analyze Sub activity 2.1.1 the main barriers and obstacles in Burkina Faso to upgrading producer organizations to GIEs or Cooperatives within each value chain 2. Held a workshop to validate results of the study “Goat milk processing into Sub activity 2.9.2 Choukou (dry goat cheese)” carried out under sub activity “Support the promotion of a range of simple, adapted and accessible packaging” 3. Held a workshop to validate results of the study on the marketing of eggs Sub activity 2.13.1

2.1.2. Refining project strategies In an effort to sharpen the project strategic focus to enhance implementation, effectiveness and project performance, and based on discussion with USAID, REGIS-AG initiated, during this reporting period, the development of two strategy documents: The Value chain strategy and access to finance strategy.

a) Value chain development strategy development

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This activity focused on conducting the field work for the development, in collaboration with the REGIS- AG team, of a revised value chain strategy that consists of three separate VC strategies (cowpea, small ruminants, and poultry). REGIS-AG signed a consultancy contract with a consultant to carry out the assignment. Field trips were organized in Burkina Faso and Niger in two phases: phase 1 (November 2- 12, 2016) and phase 2 (November 28 to December 16). Working closely with the Value Chain Advisor, the Program Manager and DCOP, the consultant reviewed key project documents and met with Component leads, Value Chain coordinators, and relevant staff as assigned by the COP. The consultant also met with REGIS-AG COR in Dakar for additional guidance during the first phase of the field trip. He also reviewed the market development approach and resilience building strategies developed and implemented by each RISE partner and drew lessons learned / best practices that are guiding the design of the strategy he will propose for the three REGIS-AG VC during Q2 of FY17. The strategy is expected to include the following: • Commodities/end markets to be prioritized within the 3 targeted VC (cowpea, small ruminants, poultry), differentiating them by products and target markets. • Set separate targets for households engaged in each selected product/market to derive the following: − # of vulnerable households whose income from the [poultry, cowpea, or small ruminants] value chain will increase by at least 50% by end of project. Also provide benchmark targets by year. − # of households with increased income from [commodity] by the end of project. • Discussion of the risks producers face when they go after particular markets, decision making considerations households may have, and how these risks and perceptions of risks will be addressed. • Activities for developing products/markets identified and description of each major activity in terms of the level of effort to be expended ($ and staff time), the nature and number of beneficiaries, and the cost per beneficiary. In addition, the narrative should explain how that activity links to other RISE partner activities, particularly highlighting inter-dependencies, sequencing issues, and possible redundancies.

b) Access to finance strategy development This activity was structured in two parts with the first one focusing on the development of an access to finance strategy document in collaboration with REGIS-AG component 4 staff in Burkina Faso and Niger. The second part focused on improving the financial sector’s understanding of the agriculture sector, especially the targeted value chains. Field work for this assignment was organized in two phases: phase in 5-25 November 2016, while phase 2 is to be held in January 2017. During the first phase, the consultant performed the following tasks: • Reviewing existing material on REGIS-AG, RISE projects, DCA programs in Niger and BF, and other material as applicable to design and adapt training modules to the current environment. Topics reviewed with the banks included lending volume, loan size and purpose, and other customer data in order to better understand current bank operations. • In coordination with the Component 4 Leads, Chief of Party and Deputy Chief of Party, planning and finalizing training schedule, modules, participant list, etc.

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The second phase will be carried out during Q2 of FY17 with the following specific assignments: • Mobilizing to Niger and Burkina Faso to complete the review of topics covered with the banks during the first phase and to conduct trainings both to the targeted banks and to REGIS-AG staff. • Collaborating with Component 4 staff to write a REGIS-AG finance strategy for submission to USAID. • Writing final report detailing the trip, lessons learned from the trainings, recommendations to REGIS-AG on next steps.

The finance strategy will build on the VC strategies by focusing on the specific finance needs of actors in the value chains. Identify finance needs according to the recipient in terms of their assets/collateral, use of the financing, the scale required, and the timeline required. For each specific need, appropriate financing options will be designed and the most appropriate providers identified. All types of financing will be considered (equity, loans, leases, warrantage, purchase-on-credit, installment payments, etc.) and all types of potential finance providers (banks, MFIs, savings groups, buyers, traders, wholesalers, investors, processors, etc.). The strategy will explain how marketing approaches to scale up use will be developed and implemented in partnership with the identified providers.

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2.2. Component 2: Strengthen Linkages and Relationships in Selected Value Chains

Through Component 2, REGIS-AG focuses on improving market access and aggregation functions by strengthening vertical and horizontal linkages or relationships among actors in the selected value chains (cowpea, small ruminants and poultry). The vertical linkages are strengthened by facilitating the development of buying and selling relationships to drive innovations and upgrading of products and/or processes. Horizontal linkages are developed through cooperatives, associations and informal groups that lower the cost of agro-inputs and services (including financial services), create economies of scale, and contribute to increased efficiency.

2.2.1. Cowpea Value Chain Cowpea is the most important cash crop in the REGIS-AG project zone, with over 50% of production exported. It is produced by small holders as a source of food for households and also for commercial purpose. The cowpea value chain faces several constraints, notably high rainfall variability, decrease of soil fertility, improved seeds access, and disease and pests. In spite of these constraints, cowpea production has steadily increased in Burkina Faso and Niger over the past 20 years and has become an important source of income for both countries. The nutritional benefits of cowpea are significant; it contains essential proteins and amino acids important for human growth2. In addition to facilitating access to market for cowpea beans, improving small-scale cowpea processing and marketing of processed products will contribute to increasing the incomes of women involved in this sector and enhance of their capacities to face and resist income shocks.

During Q1 of FY17, activities carried out in the cowpea value chain focused on four main interventions: (i) validating the draft report of a study to better understand the barriers and obstacles that hamper the transformation of producer groups into GIEs (Economic Interest Group3) conducted by the project team in Burkina Faso Q4 f FY16.

(ii) initiating a study focused on identifying cowpea-based processed products that have high potential for success in market development in Burkina Faso.

(iii) connecting cowpea processors from Zinder and Torodi with supermarkets; and

(iv) organizing warehouse receipt financing (WRF) mechanism in each country.

2 The protein in cowpea seed is rich in the amino acids, lysine and tryptophan, compared to cereal grains; however, it is deficient in methionine and cysteine when compared to animal proteins. Therefore, cowpea seed is valued as a nutritional supplement to cereals and an extender of animal proteins. Source: https://www.hort.purdue.edu/newcrop/afcm/cowpea.html 3 Groupement d’intérêt Economique.

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Activity 2.1: Carry out comparative analysis of existing forms of producer organizations

a) Sub activity 2.1.1: Conduct initial analyses of main barriers and obstacles in Burkina Faso and Niger to upgrading producer organizations to GIEs or Cooperatives within each value chain In Burkina Faso, during the FY16, REGIS-AG conducted a study to better understand the barriers and obstacles that hamper the transformation of producer groups into GIEs (Economic Interest Group4). The study was conducted by the project team. After incorporating internal REGIS-AG reviews and comments, the study report was finalized for external validation. During the reporting period, a validation workshop was held in Kaya, Burkina Faso, on October 4, 2016.The one for Niger is scheduled to be held in Q2 of FY17. The Kaya workshop gathered 59 participants (including five women). It was attended by two High Commissioners and the provincial Secretary General. The productive feedback received at the workshop enhanced the study report. Key findings of constraints hampering the transformation of producer groups into GIEs include the following: • Limited knowledge by producers of regulations of the Organization for the Harmonization of Business Law in Africa (OHADA)5, • Remoteness of locations of GIE Registration Centers in the regional capitals, • Poor governance POs, • Insufficient government resources to support the implementation of the OHADA regulations (absence of stakeholder platform, and inadequate resources (staff, equipment or financial) of the provincial High Commissions).

Based on these findings, the following recommendations REGIS-AG will be acting on emerged: • Conducting information campaign sessions for FPOs to explain the OHADA regulations, • Training POs on the rules and requirements for operating as a GIEs, as well as on advantages and disadvantages of the transformation into a GIE, • Advocating for strengthening the Provincial High Commissions with the adequate staff or financial and material resources to enable them to be more effective in registering cooperatives.

Activity 2.2: Conduct feasibility studies on processing a) Sub activity 2.2.1: Select best products and promote new products at 2 market fairs or tasting events in each country

(i) Starting the GRET study on cowpea-based processed products When selecting its cowpea-related activities, REGIS-AG lays an emphasis on the promotion of cowpea- based processed products because of their nutritional value and their importance for women’s income generation. In order to increase the market share of products processed by women, REGIS-AG organizes tasting events for their products or facilitates their participation in fairs with a view to promoting their

4 Groupement d’intérêt Economique. 5 Organisation pour l’Harmonisation en Afrique du Droit des Affaires.

11 products to potential consumers. In order to better target its interventions, REGIS-AG planned to carry out a study focused on identifying cowpea-based processed products that have high potential for success in market development in Burkina Faso and Niger.

During the reporting period, REGIS-AG, through CRS, signed a contract with GRET, which has expertise on issues related to cowpea processing and market studies, in order to carry out this study in Burkina Faso6. After signing the contract, the GRET team held an orientation meeting with the project team. Following this meeting, the GRET team started to collect information in the field through individual and group interviews. The study will be completed during Q2 of FY17 with the preparation of a report that will include specific recommendations to facilitate the introduction of new products presenting development potentials in the market. The same study is planned to be carried out in Niger during Q3 of FY17. Follow up activities will be determined based on the study’s recommendations.

(ii) Connecting cowpea processors from Zinder and Torodi with supermarkets While working on the aforementioned study (identifying cowpea-based processed products that have high potential for success in market development), REGIS-AG of in Niger seized the opportunity of the 25th anniversary celebration in September of CRS in Niger and invited the groups INCHALLAH of Zinder and WAAFAKAY of Torodi to present their food for tasting by the guests. This taste test enabled participants at the ceremony to evaluate the quality of these products. As a result, in this reporting period, and thanks to the project encouragement, managers of the supermarkets BAAKILINI and ZABARKANE respectively ordered 30 kgs of Dan Wake flour and 500 g of Nieriz in order to promote these products among customers of their supermarkets by displaying them on their shelves. During the reporting period, REGIS- AG continued to visit the stores to observe how the products are moving and to encourage the managers to continue displaying them in the stores. The project also organized direct meetings between the store managers and the processors to strengthen the business relationships with the goal of letting the processors serviced the stores directly. Significant sales are being recoded. Table 2 shows that the promotion of processed products with REGIS-AG’s support made it possible for the processors’’ groups INCHALLAH of Zinder, REFAM of Maradi and Potal of Torodi to sell 1,408 kgs of Dan Wake in stores in Niamey and Maradi for an amount of 864,000 FCFA ($1,452).

Table 2: Quantities and values of cowpea-based products sold by group processors to Supermarkets

Cowpea Quantity sold (kg) and value of sale (FCFA) by supermarket Magasin processors’ Maradi Store BAAKLINI ZABARKANE Copro Maradi group Quantity Value Quantity Value Quantity Value Quantity Value Inchallah Zinder 48 43 200 REFAM Maradi 300 270 000 450 405 000 134 120 600 POTAL Torodi 28 25 200 TOTAL 300 270 000 450 405 000 182 163 800 28 25 200

6 The study was planned in the contract of the project subcontractor CRS to be carried out in Burkina Faso in FY2 and in Niger in FY3.

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During the remaining quarters of FY17, REGIS-AG will continue monitoring progress made in the business relationships that have been established while supporting processors in quality improvements.

Activity 2.3: Develop and expand the activities of marketing platforms

a) Sub activity 2.3.1: Organize 3 workshops in each country to promote group sales, allowing for significant reductions in transaction costs and increasing potential for relationship-based production and marketing To facilitate access to credit for cowpea’s producers and agro-dealers, REGIS-AG opted to promote the warehouse receipt financing (WRF) mechanism (or inventory credit financing or warrantage). The WRF has the potential to improve the supply of rural finance by directly easing collateral constraints and simultaneously enhancing the risk profile of farmers by fostering improvements in output markets that can lead to higher farm incomes. The system revolves around warehouse receipts (WR), which are issued as evidence that specified commodities of stated quantity and quality have been deposited at particular locations or warehouse by named depositors. The WRs may be issued to farmers, traders, exporters, or processors as well as individuals or corporate bodies. Warehouse operators or collateral managers, who issue the WRs, guarantee that a bona fide holder of the receipt can take delivery of the underlying commodity. They further warrant that they can make good any value lost through theft or damage by fire and other catastrophes – this is often underpinned by insurance, a practice not commonly used in Burkina Faso and Niger7. The guarantee is critical to the credibility of the WR system as it allows for the receipt to be pledged or transferred to trade counterparties.

During the FY16, in preparation for rolling out this initiative in Burkina Faso and Niger, REGIS-AG conducted surveys of existing financial institutions and storage facilities in the project zone. A total of 200 warehouses with storage capacities ranging from 5 tons to 500 tons were identified as potential sites for the project warrantage schemes.

During the first two weeks of November, REGIS-AG sensitized producers’ organization (PO) and MFI in Burkina Faso and Niger on warrantage process, the roles and responsibilities of participants, and the project plan for setting up a number of schemes. The same activity was carried out in Niger from October 28 to November 14. This effort, which was organized as sub activity 3.5.1, constituted the preparatory field work. REGIS-AG organized a workshop to discuss and share results of this warrantage preparation fieldwork in Burkina Faso in November and in Niger in December. These two workshops gathered representatives of cowpea POs (44 in Burkina Faso and 40 in Niger) and distributors of PICS bags (13 in Burkina Faso and 1 in Niger) in order to set up a network designed to meet the potential demand of bags identified during the preparatory field work (8,188 in Burkina Faso and 9,000 in Niger). Discussions at the workshop also focused on addressing constraints related to the supply and availability of PICS bags, the financing requirements for wholesalers and retailers of PICS bags, and credit needs of producers willing to join a warrantage scheme. Details of the discussion of credit needs of producers are presented under sub activity 3.5.3.

7 For this reason, REGIS-AG plans to develop and implement pilot projects on the use of agriculture insurance in FY17.

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The discussion focusing on the supply and availability of PICS bags revealed the existence of competition from triple layer bags that are different from the PICS bags (made under a license from Purdue University) and are less satisfactory for cowpea storage. In addition, there are outright counterfeit bags in the market that have PICS label but are cheap low quality bags that are not effective in storing cowpea. Another important constraint raised is the limited knowledge of farmers on the use of PICS bags which the project addresses through sub activity 3.6.1.

Participants also discussed and agreed upon a strategy for marketing PICS bags. In Burkina Faso, a commercial consultant of the Purdue University will be controlling the quality of PICS bags sold in the country. Producers should be encouraged to buy the PICS bags from the distribution network set up by Boutara Company who is the exclusive distributor of PICS bags in the country. Agrisahel Enterprise and Tougma & Fils are the only wholesalers operating in the project area and they supply to their network of retailers who sell to cowpea farmers as individuals or organizations. An action plan focusing on the following REGIS-AG interventions was agreed upon:

(i) broadcasting behavior change messaging through community radio to continue sensitizing producers on the benefits of using PICS bags,

(ii) organizing periodic meetings between PICS bags distributors and FPOs, and (iii) training and supporting PICS bags distributors in developing their business plans.

Activity 2.4: Promoting competitiveness in end markets

a) Sub activity 2.4.2: Train Producer on the use of PICS bags With a view to improving cowpea competiveness in the project area, REGIS-AG focuses on training the producers on the use of PICS bags for cowpea better conservation and storage after the rainy season. In order to reach a large number of producers, REGIS-AG utilized a cascade training approach. In Burkina Faso, the first phase of these training sessions started during the month of December by providing training to trainers who were essentially made up of REGIS-ER agents, representatives of provincial directorates of agriculture and the regional chamber of agriculture, and REGIS-AG subcontractors’ agents in Fada (eastern region), Dori (Sahel region) and in Kaya (Center-North region). In total, 73 participants were trained (including 15 women) on cowpea conservation and storage techniques. The training was structured in a theoretical and practical phases. The theoretical phase addressed the following themes: (i) good practices for improved cowpea production, (ii) adequate drying prior to conservation, (iii) essential factors for cowpea quality, (iv) importance of cowpea, (v) main pests of cowpea grains, (vi) technology of triple drying process, (vii) procedures for a good grain conservation.

Upon completion of the theoretical phase, participants were trained on how to use the PICS bags. After the training, the trainers were assigned to the field and provided training to 119 producers (including 69 women) grouped in 60 POs. Training sessions on adequate cowpea conservation and storage are still ongoing.

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2.2.2. Small Ruminants Value Chain The livestock industry in Niger and Burkina Faso is an important economic activity with a long tradition in both countries. Small ruminants, such as sheep and goats, fulfill a major role in the livelihood strategies, food security, and economic activities for both men and women throughout the local communities. REGIS- AG is primarily focused on linking producers to buyers of live animals through local and international fairs as well as through business to business platforms. In addition, the project undertakes interventions aimed at enhancing the competitiveness of value-added products such as dried and fresh meat, milk and cheese, and hides and skins.

During Q1 of FY17, activities carried out focused on facilitating a post – FIARA order of 700 small ruminants concluded in November in Maradi, participating in the Burkina Faso Independence Day Fair in Kaya, and validating the study on the processing of goat's milk into Tchoukou (dry goat cheese) that was carried out in Niger in June-July 2016.

Activity 2.7: Develop commercial relations between producers and livestock buyers a) Sub activity 2.7.1: Organize market linkages between farmers and traders level

(i) Post – FIARA order for 700 small ruminants concluded in November in Maradi

With REGIS-AG support, Mrs. Maiga Zalika, a livestock producer and trader from the Tillabéri region, who is also the President of Women Producers and Entrepreneurs for Development (AMFAD) in Niger, participated at the 17th edition of the FIARA8 in Dakar (April 2016) to develop and reinforce business relationships with buyers. She also participated in SIBVAO (31August – 4 Sept 2016) in Abidjan where she led a delegation of women from the Interprofessional Livestock-Meat Leather and Skins of Niger and was able to sell sold 13 sheep for 1,560,000 FCFA ($2,622). Her most impressive achievement at the FIARA was to negotiate a follow up order of 700 pure-breds of Red Maradi goats. This order was finalized with REGIS-AG guidance in November 2016 in Maradi for 21 million FCFA ($35,294). All animals supplied in this deal were sourced from 31 REGIS-AG beneficiary farmers’ groups representing 420 vulnerable households.

Mrs. Maiga's experience is one example of how REGIS-AG activities create synergies. During the SIBVAO9, Mrs. Maiga was honored for her efforts as woman member of the livestock federation of West Africa. By receiving this honor, she gained visibility among potential buyers in the sub-regional market, especially women entrepreneurs. One Ivorian woman approached Mrs. Maiga to further understand how she could become a producer; after many discussions, she decided to create a livestock farm. To begin operations, she ordered 80 sheep (20 Balami, 20 Azawak, 40 Bali Bali) amounting to FCFA 17.5 million ($29,412), all of which were sourced by Mrs. Maiga from her own herd and from two (2) REGIS-AG beneficiary farmers’ groups representing 20 households.

b) Sub activity 2.7.2: Organize/participate to small ruminants fairs at regional and national level

8 Foire Internationale de l’Agriculture et des Ressources Animales 9 Salon International Bétail-Viande de l’Afrique de l’Ouest

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(i) REGIS-AG participation in the Burkina Faso Independence Day Fair in Kaya, December 4-11th, 2016 REGIS-AG participated in the Kaya fair to provide sales opportunities to poultry and small ruminant producers that are beneficiaries of REGIS-AG, REGIS-ER, PROFIL and ViM. The fair was part of celebrations organized for the country’s independence, with Kaya getting the honor to be location where the country’s President will be celebrating with the people. As a result, many people were expected to travel to Kaya for this special event, offering to livestock producers an opportunity to tap on. In order to better coordinate and plan participation among the partners, a pre-fair planning meeting was held before the event to define roles and responsibilities for participation and to agree on the communication and branding strategy. PROFIL was responsible for mobilizing producers and pay for their participation (transport, lodging and meals). REGIS-AG and REGIS-ER were responsible for mobilizing farmers. In addition, REGIS-AG had the responsibility to create aware of purchase opportunities among potential buyers through radio and TV messages. REGIS-AG also contacted a number of buyers directly through phone calls.

REGIS-AG and its partners facilitated the participation of: • 13 poultry POs that exhibited 1,205 poultry (hens and guinea fowl) and 35 pigeons. The H.E. Andre Young, US Ambassador to Burkina Faso enjoying his 13 POs have a combine total of 197 visit of booths at the Kaya fair members, 100 of these members are women. One of the 13 POs is a female only group (NABASNOGO with 11 members) while the others are mix gender. • 3 small ruminant producers’ organizations that offered 73 small ruminants for sale; • One (01) male livestock trader who was attending to buy animals from producers; • One (01) agrodealer member of AGRODIA10.

The products exhibited were the following: sheep and goats (local breed), poultry (local breed of chickens, guinea fowl), dried meat (Kilichi), and agricultural inputs (fertilizers, phytosanitary products, and agricultural equipment). In addition, REGIS-AG and REGIS-ER had a common booth exhibiting various documents to allow those wishing to learn about the two projects and the support that they offer to the actors in the Sahel Regions of the North and East Central.

Participants sold 1,173 poultry and 35 pigeons for a total amount of 2,344,300 FCFA ($3,940). They also sold 9 of the 73 small ruminants for a total amount of 620,000 FCFA ($1,042). The highlight of REGIS- AG's participation in this fair was the award received by a male producer (who is also a beneficiary of PROFIL) for outstanding performance based on the animal presented. The agrodealer was invited to

10 Association des Grossistes et Détaillants d’Intrants Agricoles du Burkina Faso

16 promote PICS bag. He also ceased the opportunity for to promote their association and increase its visibility.

Moreover, His Excellency the Ambassador of the United States of America to Burkina Faso visited the REGIS-AG and REGIS-ER booth and those occupied by the projects’ beneficiaries. He congratulated the exhibitors for their performance and encouraged REGIS-AG and its partners for their initiatives in favor of vulnerable communities and families operating the three RISE priority value chains.

Activity 2.9: Promote the development of small ruminants processed milk

a) Sub activity 2.9.2: Support the promotion of a range of simple, adapted and accessible packaging An important market segment in the small ruminant value chain is dairy. With all the potential nutritional benefits of dairy products for women and children, REGIS-AG sees the promotion of these products from goats and sheep as an opportunity to help in the fight against malnutrition. Given the hygienic challenges associated with the handling of dairy products, especially milk, REGIS-AG planned to carry out studies on stakeholders already processing the milk, cheese and butter during the reporting period. A study on the processing of goat's milk into Tchoukou (dry goat cheese) was carried out in Niger by INODEV CONSULT in June-July 2016. The study’s results were validated by key REGIS-AG staff at a workshop held in Maradi on December 2nd. The discussion at the meeting also focused on next steps, especially where to organize follow up training to improve production techniques and packaging of cheese as well as the development of business plans for marketing this cheese. Four pilot sites belonging to 2 POs in Filingue (Afden Wali and Niima), and 2 others in Zinder (Kama Hanou Jouna and Tatali Daoura) were selected on the ground that they are more advanced in cheese processing than other POs having received support on production and handling techniques from the Mercy Corps Madara project. The same study will be carried out in Burkina Faso during Q2 of FY17, to better define the distribution system for processed products based on goat milk and all the stakeholders involved. This will enable REGIS-AG to better assess constraints on dairy development and to develop a strategy to improve the competitiveness of dairy products, especially the challenges involved setting up a supply chain and distribution network.

2.2.3. Poultry Value Chain In Burkina Faso and Niger, traditional poultry farming is practiced by more than 90% of rural households and constitutes an important source of cash for basic household needs and emergencies. In the project areas, poultry farming is mainly carried out by women for whom it is one of the few opportunities they have for savings, investment and protection against risk. Consumer preference for local poultry results in a high demand for poultry products (eggs, chicken and guinea fowl in urban centers) in all periods (holidays, various ceremonies and regular off-seasons). There is an established farm to market system with experienced collectors and dealers going to producer markets and buying poultry for the end markets in larger towns and cities. However, the poultry sector is characterized by the lack of proper hygiene and biosecurity measures throughout the value chain which causes high mortality and reduces the profit margin because stakeholders lack required management tools, have poor access to credit and are poorly organized when faced by epidemics. This is compounded by competition from imported frozen chicken and table eggs. To upgrade the value chain, REGIS-AG interventions have focused the following:

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• Promoting the practice of vaccination and moving poultry health services closer to producers • Strengthening poultry associations. • Training collectors and roasters on bio-security and hygiene. • Developing market linkages for producers for value-added activities • Strengthening coordination of stakeholders in poultry value chain.

During Q1 of FY17, activities carried focused on six (06) main interventions:

1. educating poultry producers on the different types of organizations, 2. training members of poultry POs on management of poultry and poultry production technical skills, 3. training members of POs to produce poultry feed, validating results of the study on the marketing of eggs, 4. training poultry value chain actors on marketing, negotiation skills and sales, 5. distributing Best Practice Guide to Tillabéri poultry producers, and 6. identifying poultry marketing managers of POs in the Region of Tillabéri to train them in poultry production techniques, management and marketing, as well as facilitating their access to financing for equipment and working capital.

Activity 2.11: Strengthen poultry associations

a) Sub activity 2.11.1: Educate Poultry producers on the different types of organizations During the reporting period, the project focused on developing the modules required for the training in Burkina Faso, which includes modules on administrative and management requirements for types of organization. Particular emphasis is placed on cooperative societies and GIEs as defined in the OHADA provisions. The actual training for poultry producers will be carried out during the next quarter. The same activity is planned to be carried out in Niger in February 2017.

Activity 2.12: Strengthen trade relations between poultry producers and buyers

a) Sub activity 2.12.1: Train members of poultry POs on management of poultry and poultry production technical skills To strengthen the capacity of poultry producers, REGIS-AG partnered with REGIS-ER to train 30 beneficiaries from 17 producers’ organizations (PO) from the communes of Guidan Roumdji and Sabon Machi (Maradi Region). In addition, five (05) livestock auxiliaries from the SVPP networks of Guidan Roumdji and Dakoro also participated. The training was held in the two communes consecutively during the period of December 19-23. It focused on health, hygiene, biosecurity, and utilization of better production materials and equipment, which together will help to improve the quantity of poultry produced Participants at the training held in Guidan Roumdj

18 and marketed. During the training, participants were also shown how to calculate the cost of feed made from locally available raw materials which was estimated at the training at 183.3 FCFA (31 cents) compared to 240 FCFA (40 cents) for the imported food. Reflecting on the importance of the training, a participant (Sani Idi) from the Village of Fiadi (commune of Sabon Machi, Maradi region) who benefited from REGIS- ER poultry kits testified as follows: “God raised our hopes thanks to the training that REGIS-AG has given us; this training is really welcome.”

b) Sub activity 2.12.2: Train members of POs to produce poultry feed REGIS-AG inception study on the poultry value chain highlighted difficulties related to the supply of foodstuff to the poultry breeders. To address these challenges, working with the national research institute in Niger, REGIS-AG introduces poultry feed made from locally available resources. Due to the enthusiasm aroused by the pilot experiment of local production of poultry feed, REGIS-AG committed to supporting each PO engaged in producing its own poultry feed. To this end, working with POs, the project team identified 51 poultry producers (including 22 women). These producers will be assisted by the project to produce poultry feed as a business initially within their PO, and eventually for sale in the villages. Their training on poultry manufacturing, management and marketing will be organized during Q2 of FY17.

Activity 2.13: Strengthen trade relations between poultry producers and buyers

a) Sub activity 2.13.1: Organize validation workshops on results of the study on the marketing of eggs In order to better target its interventions for stakeholders involved in the poultry value chain, REGIS-AG initially carried out a study on the development of an innovative and sustainable marketing strategy for eggs, in particular guinea fowl eggs. In Burkina Faso, this study, which was conducted during the fourth quarter of FY16, was validated in November in a workshop held in Kaya in the Central North region. In addition to REGIS-AG staff, 40 people participated in the workshop, including representatives of REGIS- ER, ViM, Programme FASO, the Ministry of Livestock and Pastoralists, all of whom agreed upon and adopted priority areas of focus for developing the market for guinea fowl eggs as follows: • Area 1: Increasing productivity and production of guinea fowl eggs at the farm; • Area 2: Improving the performance of poultry markets; • Area 3: Strengthening the stakeholders’ capacities in the poultry sector.

Increasing the supply of guinea fowl eggs on the national market (and thereby increase incomes for guinea fowl producers in the project area) requires the implementation of innovative strategies, notably: • use of gas, electric or solar incubators; • applying new techniques to reduce the mortality of guinea fowl; • targeting support to women n guinea fowl production; • collecting and selling of eggs by farmers' organizations and the creation of sale points to help organizations market their guinea fowl eggs • Improving the packaging (use of egg cartons) for guinea fowl eggs transportation to markets.

To address the weak organization of poultry producers which makes it difficult for them to satisfy important markets, REGIS-AG collaborates with REGIS-ER to better organize producers in a single group

19 that will allow them to better benefit from market opportunities. The two projects worked together to develop a plan for each of the aforementioned innovative strategies and their implementation will start in Q2 of FY17.

In Niger, the same study was also conducted in 4Q of FY16 and it was validated in a workshop held on October 11 in Niamey. The workshop gathered 46 participants, including representatives of the ministry in charge of livestock, project beneficiaries, representatives of NGOs (PIAFA11), representatives of private enterprises (SVPP, Centers for the supply of zoo technical products, and LABOCEL), and partner projects (REGIS-ER, and Sawki). Participants at the workshop validated the study’s report. Implementation of the study recommendations will start in Q2 of FY17.

b) Sub activity 2.13.2: Train poultry value chain actors on marketing, negotiation skills and sales REGIS-AG assists POs in production and market research techniques in order to allow producers to develop their businesses and increase their incomes. In Burkina Faso, REGIS-AG conducted trainings of marketing officers for poultry POs in 3 regions of the project area (Table 3). In total, 105 marketing officers were trained including 22 women.

Table 3: Dates and number of participants at the REGIS-AG trainings of marketing officers for poultry in Burkina Faso Location Date Number of participants Dori 14 to 16 November 2016 30 poultry producers, including 5 women Kaya 22 to 24 November 2016 43 poultry producers, including 12 women Fada 28 to 30 November 2016 32 poultry producers, including 5 women

The training consisted of a power point presentation followed by discussion sessions between the trainer and the participants on the following topics: (i) The socio-economic importance of poultry in households, (ii) Overview of poultry farming and the relationship of poultry producers to the market, (iii) the analysis of strengths, weaknesses, opportunities and threats facing poultry producer organizations, (iv) production planning, (v) the calculation of costs production and setting sales prices (practical cases), (vi) Sales techniques (grouped sales) (vii) The concept of marketing and market research techniques.

After the discussions, success stories were shared and group work sessions organized on specific topics selected from the stories.

Activity 2.14: Improve the competitiveness of the poultry processing

11 Plateforme d’Innovations des Acteurs de la Filière Avicole

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a) Sub activity 2.14.1: Work with REGIS-ER and DFAPs to organize poultry producers into groups, especially for women. REGIS-ER to take lead providing basic poultry management training; REGIS-AG to focus on improved access to animal health services, credit, and markets

(i) Distribution of Best Practice Guide for Tillabéri Poultry Producers, November, 2016 In an effort to raise awareness among POs members in the poultry value chain and to popularize of good practices in traditional poultry farming, REGIS-AG designed, produced and made available a Guide to POs. The guide highlights the importance of vaccination and the need for good poultry habitat and its characteristics. It also provides information on poultry feed production using local materials, summarizes ways by which poultry disease are transmitted, and emphasizes the link between poultry feed and productivity. The goal is to increase quantities sold, thus increasing household incomes by upgrading the main technical production parameters. All 21 poultry POs REGIS-AG supports in the Tillabéri Region received a copy of the Guide (Table 4). These 21 poultry POs have1,226 members (including 1,128 women) representing 629 households. The distribution of this Guide will be extended in the other regions during Q2 of FY17.

Table 4: Distribution of POs beneficiary Department Number of POs beneficiary Torodi 7 Kollo 3 Tillabéri 5 Ballayara 4 Filingué 2 Total 21

(ii) Identification of Poultry Marketing Managers of POs in the Region of Tillabéri The purpose of the training of Poultry Marketing Managers of POs, REGIS-AG organized during the month of November was to identify members of the POs in charge of this activity in the region of Tillabéri. The identification focused on POs that are beneficiaries of REGIS-AG in the villages where REGIS-ER poultry kits were distributed. In total, 49 poultry producers, including 22 women were selected as shown in Table 5 below:

Table 5: Distribution of manufacturing managers by department

Number of # POs identified for the training Department REGIS-AG POs Total W M Tillabéri 21 1712 5 12 Ballayara 12 12 5 7 Torodi 7 7 7 0

12 In Tillabéri, 2 of the POs are in the same villages and only on manager was selected for both. In 3 POs the team was able to identify a manager who can read, write and calculate.

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Kollo 3 3 1 2 Filingué 10 10 4 6 Total 53 49 22 27

The next steps in this activity are the training of the selected manager in poultry production techniques, management and marketing, as well as facilitating their access to financing for equipment and working capital in Q2 of FY17.

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2.3. Component 3: Strengthen Input Supply and other Supporting Services and Improve Smallholder and Agro-Pastoralist Access to Interconnected Markets The REGIS-AG value chain studies clearly indicate that access to quality inputs and supporting services are important to enable agro-pastoral smallholders, traders and processors, and/or buyers the project targets to upgrade their operations and increase their potential income. The effective and timely delivery of these inputs and services is essential for achieving the project goals, and gender is a critical dimension in increasing access to and delivery of inputs and services given barriers to women’s mobility and limited participation in off-farm commercial activities. Under Component 2, REGIS-AG is expected to develop sustainable commercial networks for the supply of inputs and services by training and certifying 250 private agrodealers and linking producers and traders to this proven rural service platform. REGIS-AG is also expected to create 7 professional animal health networks linking 7 private veterinarians, 44 veterinary stores, 233 Community Animal Health Workers (CAHWs) and 65 women village-level vaccinators, and supporting disease surveillance in the project area.

Activities planned under this component are structured around two broad intervention areas: cowpea input services and animal inputs services. During the reporting period, activities carried out focused on facilitating intermediation between POs and MFIs in warrantage schemes, promoting the use of PICS bags for cowpea storage and rolling out a cascade training of beneficiaries approach (TOT), and facilitate access to animal inputs and services.

2.3.1. Cowpea Inputs and Services

Activity 3.5: Facilitate credit access for cowpea producers

a) Sub activity 3.5.1: Educate PO and MFI on warrantage mechanism REGIS-AG considers warrantage as an effective mechanism to facilitate the access of cowpea producers to credit from MFIs and ECOBANK, either for access to agricultural inputs or for income-generating activities. In both Burkina Faso and Niger, to facilitate the implementation of the warrantage mechanism, the project team first defined the objectives, the expected results, the roles and responsibilities of stakeholders involved (producers, MFIs, DFAPs, REGIS-ER, and other partners). Then, the project team organized an in-house workshop in each country to agree on what information and materials are required to implement the warrantage mechanism, including lists cowpea producer organizations and storage sites as well as technical guides. The in-house workshop was concluded by establishing warrantage preparation program for the cowpea POs and partners. The REGIS-AG team split into sub teams to visit cowpea POs and prepare them in a workshop setting on the process of implementing the warrantage mechanism.

During the preparation workshops, the sub teams explained to producers the warrantage mechanism and its requirements. Particular emphasis was laid to the benefits of warrantage, and how it allows producers to obtain credit on the basis of the stored cowpea as collateral and provide funds for purchasing agricultural inputs or initiating income-generating activities. In addition, the sub teams explained the benefits to producers of group sales and conducted a question-answer sessions. A key result of these preparation workshops is the development of a process for collecting information on the quantities of

23 cowpea to be stored for warrantage and financing needs. In other words, working with the cowpea POs to estimate what volume of cowpea that would be available for storage under warrantage and the associated credit needs.

• 600 tons of cowpea confirmed for warrantage with a credit requirement of 119,789,900 FCFA ($201,327) in Burkina Faso

In Burkina Faso, stakeholders involved were cowpea POs, two MFIs (MECAP13 and FCPB14), DFAPs, (Programme Faso and ViM) REGIS-ER, and PROFIL. REGIS-AG Burkina team split into four sub teams from November 2-19, 2016, to visit farm producer organizations (FPOs) in the Sahel, North-Central and Eastern regions and prepare them on the process of implementing the warrantage mechanism. A total of 23 warrantage preparation workshops were conducted and 1,028 cowpea producers participated, (including 660 women) representing 476 POs with a total of 12,410 members (including 9,538 women). The analysis conducted in the month following the preparation workshop showed that there was an available stock of 600 tons of cowpea for warrantage that would require credit 119,789,700 FCFA ($201,327). Furthermore, the requirement for PICS bags for cowpea storage was estimated at 8,188 PICS bags A view of a warehouse visited in Kaya at a cost of 9,825,600 FCFA ($16,514).

Additional meetings to explain REGIS-AG strategy for implementing the warrantage mechanism were held with a number of projects (REGIS-ER, ViM, P4P, VALPAPE, PRRIA, and SYS-FeM), FAO, the agricultural input distributors, and microfinance institutions (MECAP, GRAINE SARL, SIMBA, and FCPB) and ECOBANK.

At the end of rounds of stakeholder meetings, REGIS-AG organized a workshop on November 28th 2016 in Kaya (North-Central Region) to share the analysis of the data collected to estimate the volume of cowpea for warrantage. Participants in this workshop included representatives of cowpea POs, MFI managers from the FCPB and MECAP, representatives of partner projects (REGIS-ER, ViM, PROFIL, and Programme Faso) and FAO. At the end of this workshop, the FCPB and MECAP made a commitment to accompany REGIS-AG project in this initiative.

Thereafter, 31 cowpea PO leaders were trained in cowpea storage warehouse management in Kaya on December 1st -2nd, 2016 in the North-Center region. The training was conducted in collaboration with the AGRA-funded SYSFEM project. It was structured in two phases, a theoretical classroom phase and practical phase at the storage warehouse of the Sanmatenga Union of cowpea producers. Topics covered during the classroom training were the following:

13 Mutuelle d'Epargne et de Crédit des Artisans et des Producteurs du Burkina 14 Faitière des Caisses Populaires du Burkina Faso

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− General information on cowpea grain (physical characteristics, moisture content, germination, grain deterioration mechanisms, and storage), − Cowpea grain grades and quality standards, − WFP specifications required for their local purchase programs, − Documents for inventory management − Maintaining cowpea grain quality during storage. Training of producers on warehouse space management

Participants shared each other’s experiences in classroom discussions. At the end of this theoretical training, a guide was produced and distributed to participants for future reference needs. During the practical phase of training, participants were able to apply their classroom knowledge to an actual storage site.

• 475 tons of cowpea confirmed for warrantage with a credit requirement of 65,900,000 ($110,756) in Niger

In Niger, stakeholders involved were cowpea POs, four MFIs (ASUSU.SA, KOKARI, MECAT and Yarda), DFAPs, (Programme Faso and ViM) and REGIS-ER. In early October, REGIS-AG Cowpea Value Chain coordinator in Niger visited POs to determine potential amount of grains that could be involved in a warrantage scheme and the associated credit needs. From October 28 to November 14, 2016, REGIS- AG Niger team split into two sub teams, to visit cowpea POs in the three regions (Maradi, Tillabéri and Zinder) and prepare them on the process of implementing the warrantage mechanism. More specifically, the objective of these visits was to assess of the potential stocks available for storage under warrantage for the 60 FPOs and secure commitments for participating in the warrantage program for the 2016 harvest. The sub teams sought to: − Update and confirm the availability of 900 tons of cowpea to be mobilized by the organizations in the 60 villages for storage for warrantage by grouping − Update and confirm the requirements for 9000 bags of 100 Kg triple layer PICS bags for cowpea storage quality; − Update and confirm the commitment of 60 POs in engaging in warrantage mechanism and their credit requirements of FCFA 176 400 000 ($296,471); − Verify the quality of the 60 storage depots the project identified for warrantage in terms of storage capacity (at least 20 tons) and infrastructure quality (final or semi-hard material store, ventilated store, double-padded metal doors, pallets, cemented floor, and secure site). − Confirm what activities cowpea producers intend to carry out with the credit being sought and came up with following credit needs: purchase of agricultural inputs, small agricultural equipment, extraction of peanut oil, fattening, expenses for horticulture, and the cowpea. At the end of these visits, 81 cowpea POs were selected (including 69 basic POs and 12 Unions) and 55 warehouses in good condition identified. In addition, a total stock of 712.8 tons was confirmed for a total value estimated at about 142,420,000 FCFA ($239,361). Additionally, REGIS-AG has chosen as a

25 warrantage mechanism that can accompany producers to the cowpea market through group sales. After the awareness raising and stakeholder mobilization efforts described above, REGIS-AG Niger team also organized a workshop on December 7th to 10th in Maradi to: − Share with stakeholders the results of the data collected on 102 cowpea POs during the awareness and mobilization phase; − Adopt a consensus approach to the warrantage mechanism and a mode of support by REGIS-AG and the various partners to the above-mentioned 81 producer organizations15, − Credit application procedure for MFIs16; − Strengthen the capacity of the 81 organizations in determining their funding and training needs; − Support the supply of the 81 organizations in 9.000 bags of 100 Kg PICS as demonstration and sensitization of its use for the storage of the seeds; − Facilitate the implementation of the agreed consensus approach to the warrantage mechanism and the agreed mode of support.

Discussion at the workshop was structured around the following presentation: − Presentation of summary of mobilization awareness mission − Presentation of three types of mechanisms proposed by REGIS-AG17 − Documentary projection and demonstration of the use of PICS bags − Presentation of MFIs on their credit policies warrantage18 At the end of the December workshop, the following points were agreed: − A collaborative operational plan covering the points and conditions of engagement and the role of each stakeholder was established between REGIS-AG, the organizations, DFAP, REGIS-ER and the MFIs (ASUSU.SA, KOKARI, MECAT and Yarda).

15 Includes animation / training of the OP and the MFI in warrantage techniques; information / awareness raising; identification of needs; decision-making and planning of the implementation of the warrantage activity; declaration of intent of the OP with an MFI to participate in the warrantage program; preparation of storage facilities; and collection and stocking of 712.9 tons of cowpea for warrantage in the 55 selected stores (8 in Zinder, 33 in Maradi and 14 in Tillabéri). 16 Includes preparation of files, negotiations and conclusion of the credit agreement between the MFIs and the POs; credit granted by the MFI; distribution by the OP of the credit; monitoring and maintenance of the store (control); credit monitoring; recovery and repayment of credit; and inventory withdrawals, with forecast periods of bundling between the beginning and the end of May 2017 (4 to 5 months with the credit placement before mid-December). 17 The presentation began with a reminder of the definition of warrantage before leading to the 3 types of mechanisms: (1). warrantage without input supply; (2). warrantage with input supply and (3) bundling. For each of these mechanisms, a set of tasks or steps was developed to show participants that warrantage is not a one-day activity but rather takes 9 months starting in October. 18 Representatives of the microfinance institutions ASUSU SA, KOKARI and MECAT gave presentations on their credit policies, with particular emphasis on credit warrantage. The various banking regulations (interest rate, method of calculating interest, credit duration, credit ceiling, and authorized method of reimbursement ...) were presented. Finally, the representatives of the MFIs highlighted the problems they encountered in the framework of credit warrantage: misuse of credit, poor governance within POs, selection of products for warrantage and lack of knowledge of MFI’s requirements. This presentation stimulated much discussion and participants’ sharing of their experiences.

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− 40 agreements defining commitments were accepted by stakeholders for the implementation of 40 warrantage schemes; − 475,025 kgs of cowpea (450,925 kgs of cowpea grains and 24,100 kgs of seeds) from the three regions will be stored in 40 warehouses in compliance with the warrantage mechanism (Table 6). These will be supplied by 40 organizations FPOs in 100-kg PICS bags. − The credit access mechanism for cowpea POs from the three regions (Table 6) was put in place for 70% of the value of the stock at harvest, which corresponds to 65,900,000 FCFA ($110,756); − The collective sale of the stock of cowpeas is carried out not more than 6 months after the release of the credit. POs are expected to gain at least 25% more than what they would have earned had they sold their products at harvest.

Table 6: Participants to the training by organization # of # of PICS Value of Credit Quantity Regions Storage # of FPOs bags Inventory Required (MT) Depots needed (FCFA) (FCFA) Maradi 20 268 20 2,682 53,600,000 37,500,000 Zinder 8 107 8 1,070 21,300,000 14,900,000 Tillabéri 12 100 12 1,000 20,600,000 13,500,000 TOTAL 40 475 40 4,752 95,500,000 65,900,000 ($160,504) ($109,833)

Additional recommendations for operationalizing the agreements were also made: − Cowpea POs and MFIs will be monitoring implementation of the operational plan; − Asusu SA will strictly respect the schedule of stock tracking which will be defined in the credit agreement; − Implementation of the operational plan adopted by the POs should start no later than Monday 12 December 2016 − The warrantage credit process should be accelerated so that disbursement occurs no later than the first week of January 2017.

b) Sub Activity 3.5.3: Facilitate intermediation between POs and MFIs During the reporting period, REGIS-AG facilitated intermediation between POs and MFIs were carried out in Burkina Faso and Niger as a key element for setting of the warrantage schemes which have been detailed under sub activity 3.5.1 above. Given the level of commitment the MFIs showed during these processes, REGIS-AG is confident that disbursement will effectively occur. These will be reported in the Q2 report. In Burkina Faso, following the commitments made at the November 28th workshop in Kaya, exchanges between REGIS-AG and MFIs continued. These exchanges resulted in the elaboration of two draft protocols of agreements with MECAP and FCPB to be signed in early January 2017.

Activity 3.6: Establish Relationships with PICS sacks suppliers and agrodealers to develop distribution networks in the focal areas

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a) Sub Activity 3.6.1: Train producers on the use of PICS bags To implement this activity and reach out many beneficiaries, REGIS-AG adopted a training of trainer (TOT) approach whereby the capacity of a number of trainers (members of POs or local NGOs) on the use of PICS bags was strengthened, and these trainers in turn train members of their organizations and other value-chain actors such as processors, traders and agricultural-input suppliers.

In Niger, a total of 164 trainers were trained, including 146 PO members and 18 trainers (Table 7). The training gathered partners such as REGIS-ER, extension agents, processors of cowpea value chain, and agro dealers. Trainers are REGIS-AG and REGIS-ER19 staff as well as extension agents and staff of the national research institute INRAN.

Table 7: Dates and Number of participants at the REGIS-AG trainings on the use of PICS bags in Niger Number trained Training Training date PO location Total Female Trainers members Tillabéri 16 to 20 September 48 11 42 6 Maradi 2 to 7 December 64 8 59 5 Zinder 23 to 27 December 52 6 45 7 Total 164 25 146 18

Trained PO members in the three regions are in charge of replicating the training to the poultry value chain POs at the municipal level. They are expected to train about 786 other direct beneficiaries.

In Burkina Faso, the training reached 73 participants (few lead producers, staff of REGIS-AG subs, REGIS-ER staff, extension agents, and agro dealers), of which 15 were women as indicated in Table 8. Starting in Q2 of FY1, these 73 trained participants will in turn train 968 lead producers from 585 organizations who are also expected to train 11,000 producers who are members of their organizations.

Table 8: Number of participants by organization at the REGIS-AG trainings on the use of PICS bags in in Burkina Faso # male # female Organization Total participants participants Participants from REGIS AG 29 14 43 Participants from REGIS ER 19 0 19 AGRODIA 6 0 6 Provincial Agricultural Directorate 3 1 4 Regional Chamber of Agriculture 1 0 1 TOTAL 58 15 73

In both countries, training was conducted in two phases: a theoretical phase followed by practical phase. The theoretical focused on the following topics: − Good practices for cowpea production

19 There was a special participation of 16 lead farmers in Maradi under REGIS-ER.

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− Importance of drying for cowpea storage − Storage and essential factors for ensuring cowpea quality − Insect pests that affect cowpea beans − Triple-sack technology − Precautions to ensure good conservation − Advantages of grouped sales

The practical phase consisted of demonstration sessions showing how to efficiently store cowpea using PICS bags.

To facilitate PICS bags suppliers to adequately meet the potential demands, REGIS-AG initiated many meetings with potential suppliers in Niger and in Burkina Faso. In Niger, REGIS-AG held a meeting with the PICS bags registered dealer of Niger and Professor Jess from the University of PURDUE to agree on collaboration opportunities and actions. Moreover, contacts were made with the PICS bags registered dealer (Ets Husa’a) who has a supply of more than 33 000 PICS bags in stock for this year. Through Ets Husa’a, the project now has the contacts and localities of the different distributors in Niger. In Burkina Faso, REGIS-AG had exchanged with Vester Gard, a French company selling triple bottom sacks called “Zero fly”. After finding that these bags were treated with Deltametrine, and in accordance with the project vision to make pesticides-free packages available to producers, REGIS-AG discontinued discussions with Vester Gard. The project is also in touch with BOUTAPA business, the registered representative of PICS bags in Burkina Faso to facilitate cowpea producers’ supply of PICS bags. In addition to these efforts, the project started holding exchange meetings with the different distributors in Burkina Faso and in Niger to establish a distribution network for PICS bags.

2.3.2. Animal Inputs and Services During the reporting period, activities were implemented to facilitate access to animal inputs and services focused the identification of private veterinarians willing to form a RSAP in Burkina Faso, the selection of AE who will be members of the RSAP to be constituted around each of the selected private veterinarian, and the identification of 49 new AE and training 20 AE in the project area in Niger.

Activity 3.7: Establish SVPP networks in the project intervention area

a) Sub activity 3.7.1: Recruit interested private veterinarians

Identification of 2 private veterinarians willing to form a RSAP in Burkina Faso As part of the expansion of the RSAP20 network in its area of intervention, REGIS-AG has identified private veterinarians committed to adhering to the RSAP concept developed by VSF. In November, REGIS-AG organized a workshop in Fada for livestock sector stakeholders, including Ministry of Livestock staff, private veterinarians, producers, and field staff from REGIS-ER agents. The workshop was organized in collaboration with the Regional Project of Support to the Livestock Sector (PRAPS) in Fada in the Eastern Region in order to introduce the RSAP approach and encourage participation. This awareness-raising

20 Réseau de Santé Animale de Proximité (Known as SVPP in Niger)

29 activity focused on the principles of the RSAP approach and on the selection criteria for private veterinarians. At the end of this activity, 2 private veterinarians (VETO CONSULT and VETO ASSISTANCE) made the commitment to operate as veterinarians of the Eastern Region RSAP. The next step is the selection and training of new livestock auxiliaries (AE) and women-vaccinators who will be part of their network (sub activities 3.7.4). This activity was carried out in Niger in Q4 of FY16.

b) Sub activity 3.7.4 : Select new livestock auxiliaries (AE) and women-vaccinators for the new SVPP networks Identification of 49 new AE in the project area in Niger

Project planning for FY17 includes the setting up of 2 new SVPPs21 in the project intervention area in Niger. Livestock auxiliaries (AE) who are private service providers operating in a network under a veterinarian play a very important role in ensuring the success of the SVPP program. During the reporting period, the project focused identifying and selecting qualified AEs. To this end, the project team organized a supervision tour that resulted in the selection of 49 new AE distributed as follows: − 10 AE in the communes of Dessa, Anzourou and Sinder in the department of Tillabéri, − 30 AE in the communes of Wacha, Dan Chiao, Magaria, Yekoua, Kwaya, Sasoumbroum and Bande in the department of Magaria − 9 AE in the communities of Gafati, Hamdara and Gouna in the department of Mirriah.

This awareness-raising tour was also an opportunity for the project to evaluate 26 former AE supported by the project partner Sawki in the department of Mirriah. The evaluation revealed that all the 26 AE are well equipped and 6 of them were not functional. Moreover, the mission noted that, in addition to their old age (55 to 64 years old), the geographic distribution of AE did not meet the required density (high concentration of AE in a small radius) in the Mirriah department. As a result, only 20 of the 26 AE were selected for the establishment of the SVPP in the department of Mirriah. They will be complemented by 9 new AEs the project will identify.

Selection process of AE under way in Burkina Faso

After the selection of private veterinarians in Burkina Faso (as described in sub activity 3.7.1), the project focused on the identification and selection of AEs. This process is in progress and will be completed in Q2.

c) Sub activity 3.7.5 Train AE and selected women-vaccinators on animal health

Training 20 AE in Niger After the identification of AE, REGIS-AG conducted the training of 20 new AE as part of the installation of two SVPP networks in Niger. Thus, in addition to the 49 new AE, 20 AE were trained from 12 to 16 November 2016 on Modules 1 and 2 of AE detailed as follows:

21 Service Vétérinaires Privés de Proximité

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Table 9: Modules provided during the training of new livestock aid (AE) Module Themes Module 1: Roles, Functions and - The importance and justification of the training of the Breeding Limits of the Auxiliary of Breeding Auxiliary - Working tools for the breeding aid, guide for the Breeding aid, medicine box, materials. - The different functions of the breeding aid, sanitary defense, sale of medicines, awareness and organization of work of collective interests; - The different forms of collaboration that the Breeding aid should adopt during his/her assignment; - the Limits of the breeding aid Module 2: Basic animal health - Definitions and characteristics of the major disease groups and concepts description of the causes of disease; - Notions of symptoms, lesions, treatments and transmissions; - The different steps to follow in order to make a complete diagnosis of a disease; - The body means of defense; - How to strengthen the body means of defense; - Annual prophylaxis schedule; - Measures to be taken in the event of epizootics; - Consequences of the disease.

Activity 3.8: Strengthen the technical capacity of existing networks SVPP

a) Sub activity 3.8.2: Refresher course for AE in the project intervention areas

Refresher course for 127 breeding aids in Niger During the FY16, REGIS-AG set up 3 SVPP networks in the project area in Niger. In accordance with the principles set out in the national SVPP policy, REGIS-AG carried out the refresher course for the 127 AE involved in the animation of the 3 SVPP networks, including 41 in Filingue, 40 in Guidan Roumdji and 46 in Dakoro. The course covered the following themes grouped around the three (3) modules defined as follows.

Table 10: Themes provided during the AEs refresher course Modules Themes Module 1: Roles, functions and - The importance and justification of the training of the Breeding limits of the Breeding aid aid - Working tools for the breeding aid, guide of the Breeding aid, medicine box, materials. - The different functions of the breeding aid, sanitary defense, sale of medicines, awareness and organization of work of collective interests; - The different forms of collaboration that the Breeding aid should adopt during his/her assignment;

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Modules Themes - the Limits of the breeding aid Module 2: Basic animal health - Definitions and characteristics of the major disease groups and concepts description of the causes of disease; - Notions of symptoms, lesions, treatments and transmissions; - The different steps to follow in order to make a complete diagnosis of a disease; - The body means of defense; - How to strengthen the body means of defense; - Annual prophylaxis schedule; - Measures to be taken in the event of epizootics; - Consequences of the disease. Modules 3: Parasites and notions - Definition of a parasite; of parasitic cycles - Development of parasites; - Diagnosis of parasitic diseases; - Some examples of parasite cycles; - Treatment and prevention of parasitic diseases

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2.4. Component 4 - Increase access to finance, innovation and private sector investment

Under the Component 4, REGIS-AG focuses on facilitating access to finance for beneficiaries targeted under the project’s components 2 and 3 in a way that enables product, process and/or function upgrading that are described in project description section of this report. To increase investment for these necessary upgrades by targeted beneficiaries, it is critical to address factors limiting access to finance that stem from both the “supply” and “demand” sides. For this, in addition to linking farmers’ groups and SMSEs with MFIs and commercial banks when appropriate, the project has two important tools: (a) its Strategic Services Subawards (3S) Fund of $500,000 as its primary tool to jumpstart product and process upgrading for vulnerable SHFs in the project intervention areas that are poorly capitalized, and (b) the DCA program.

During Q1 of FY17, activities carried focused on organizing an awareness raising campaign with the plan to select 25 new centers in Q2 of FY17, continuation of training in existing centers, and initiation of a consultancy aimed at refining the project strategy in facilitating project beneficiaries’ access to finance. The following paragraphs present the details of the different activities carried out during the first quarter of FY17.

Activity 4.1: Provide training in functional literacy to project participants particularly women Improving families’ and vulnerable communities’ access to market, financing, innovation and private sector investment in the project areas of intervention constitutes a major priority for REGIS-AG. However, the literacy rate for most of these stakeholders is very low in the project intervention area. Most producers cannot read or write and this limits their ability to negotiate with microfinance institutions or banks. This low literacy also limits the adoption of new technologies and the development and use of marketing strategies for their products. It is therefore imperative to build the capacities of these actors in order to make their participation in these value chains more productive while at the same time enhancing their personal development and empowerment.

a) Sub activity 4.1.1: Identify appropriate center for literacy training (15 in Niger and 25 in Burkina Faso) During FY16, REGIS-AG launched 43 functional literacy centers (18 in Burkina Faso and 25 in Niger). A total of 1,397 beneficiaries (571 in Burkina Faso and 826 in Niger) were trained, including 1,219 women (468 in Burkina Faso and 751 in Niger). Due to the success of FY16 functional literacy activities, REGIS- AG planned to open 50 new literacy centers (25 in Burkina Faso and 25 in Niger) for 1500 learners in the project interventions zone. To this end, in Q1 of FY17, REGIS-AG activities in functional literacy in Burkina Faso included an awareness creation campaign in the Sahel, North-Central and the East regions to identify members of POs from the targeted value chains who were interested in receiving functional literacy training. After this awareness campaign, REGIS-AG developed selection criteria for deciding where to launch 25 literacy centers and who to provide literacy training to (with a target of 750 members). For a PO to be selected, it must:

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(i) be receptive and motivated, (ii) have a bank account, (iii) have a governance system for accountability, (iv) be a beneficiary of a DFAP or REGIS-ER, and (vi) be close to where the literacy center will be located. Selection of the new centers will be done in Q2 of FY17. This activity will also be carried out in Niger during the same period.

b) Sub activity 4.1.4: Training of learners in literacy centers Functional literacy trainings are generally carried out from April to mid-October. In Niger, during the reporting period, classes continued in all but one of the 25 centers. The Daourawa center stopped earlier in September due to high drop out of trainees resulting from high food insecurity. The situation improved after the harvests, with an attendance of about 1/3 of the learners. In Burkina Faso, all 18 centers operated throughout the period.

c) Sub-Activity 4.1.4 Design, production and translation of training modules On the 24th and 25th of October 2016, REGIS-AG organized a workshop in Zinder to validate teaching aids. The workshop gathered 27 participants representing the technical services in charge of literacy and those responsible for agriculture and livestock. All teaching aids designed for the implementation of the functional literacy training (pagi voltes and the technical sheets) were presented to the participants and their observations and comments collected and integrated. This workshop made it possible to validate the pagi voltes and the technical sheets proposed at the workshop and to elaborate the teaching aids.

Activity 4.8: Develop and operationalize a finance strategy to sharpen the project focus on value chain development financing

a) Sub activity 4.8.1. Develop a finance strategy that is aligned with the new project value chain strategy

As described in Component 1 of the present report, during the reporting period, REGIS-AG carried out the first part of a consultancy that was initiated to refine the project strategy in facilitating project beneficiaries’ access to finance. This first phase was limited to field work in the two countries. In Niger, the consultant met with value chain stakeholders, including ECOBANK and MFIs (ASUSU, Kokari, MECAT, and YARDA) from November 12-18, 2016. The field trip in Burkina Faso was carried out from November 19 to 25, 2016 and involved meetings with processors, traders and producers from the three value chains, as well as He financial institutions (in particular ECOBANK, FCPB, MECAP), and an insurance company (Planet Guarantee). After the information gathering and interviews of the stakeholders, the consultant held a debriefing meeting with key project staff in Ouagadougou on December 12 to share the information collected in the field and his preliminary thought with the view of furthering develop the access to finance strategy. The second phase of the consultancy is planned for Q2 of FY17 and will consist of more meetings with the different actors of the value chains to finalize the strategy document and training of loan officer of ECOBANK and MFI as well REGIS-AG staff as described in Component 1.

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2.5 Component 5: Improve the Enabling Environment for Local and Regional Private Investment

REGIS-AG Component 5 focuses on improving the enabling environment for investing in inputs, equipment, storage, and processing in a way that enables upgrading in the targeted value chains in Burkina Faso and Niger. The project is expected to achieve this result through coordination and linkages with relevant projects (REGIS-ER, DFAP and Trade Hub) and by strengthening the advocacy capacity of associations and farmers’ organizations representing the private sector actors throughout the three project’s value chains. Activities carried out by REGIS-AG under this component have focused on raising awareness among stakeholders on laws governing private investments in land and agriculture, promoting an inclusive management livestock markets, facilitating women’s access to land and services, and coordinating with the USAID-funded Trade Hub to address regional constraints related to marketing.

During this reporting period, activities carried out focused on analyzing 5 livestock markets in the area of intervention of REGIS-AG in Burkina Faso, facilitating the election of members of the livestock market management committees in Dori and Pissila, strengthening collaboration with Trade Hub, supporting the setting up of 9 livestock markets management committees as GIE, and finalizing the report on the study of official and unofficial road taxes in Niger and Burkina on commercial trucks carrying agricultural commodities.

Activity 5.1: Capacity Building for Value Chain Actors on Policy and Advocacy

a) Sub Activity 5.1.1: Develop materials and sensitize beneficiaries on the relevant laws identified by the Laws on studies that govern private investment in land and Agriculture REGIS-AG met with the Director General of Legal and Judicial Affairs in Burkina Faso in November to inquire about the possibility of obtaining translated texts for copying and to use as handouts for the workshops on the implementation of these laws. The DG referred REGIS-AG to the directorate that is responsible for managing translated documents. The project and the directorate agreed work together to translate four legal instruments22. This is scheduled to start in Q2 of FY17.

Activity 5.4: Identify pilot markets in Niger and Burkina Faso

a) Sub Activity 5.4.2: Select markets in each country for inclusive marketing in collaboration with Systeme d'information sur le marché (SIM) Agriculture/Livestock Analysis of 5 livestock markets in the area of intervention of REGIS-AG in Burkina Faso In order to boost livestock markets, REGIS-AG identified five (05) new livestock markets in the North- Central region during this quarter and carried out preliminary analyses of these markets, relying on the

22 These are: Loi n°034-2009/AN du 16 Juin 2009 portant régime foncier rural. Loi n°034-2012/AN du 02 juillet 2012 portant réorganisation agraire et foncière. L’acte uniforme relatif aux sociétés coopératives (AUSC). La loi n°62/95/ADP du 14 décembre 1995 portant Code des investissements. 35 participation of formal and informal management committees. The main criteria used to select these markets were: - the quality of proposals submitted by the technical services; - how well the market is performing, even if management structures are not in place; - A minimum level of infrastructure development in the markets; - The markets located in the by REGIS-AG or REGIS-ER project zone.

Based on these criteria, a team of REGIS-AG went to the field to carry out the analyses of the following markets: Korsimoro (October 4th), Nawoubkiba market (October 5th), Barsalogho market (October 6th), Sampelga market (October 19th), and Yalgo market (October 20th). Information collected for the analyses included: (i) the movement of small ruminants, (ii) the level of the organization of the stakeholders, (iii) the current level of governance and accountability, and (iv) the stakeholders’ commitment for improving operations. The study report be produced during Q2 of FY17 and it will recommend which markets have the best potential for restructuring and should receive the support of REGIS-AG.

b) Sub Activity 5.4.3: Negotiate agreements with 6 municipalities in focal areas in Niger and in Burkina Faso to establish co-management of markets Election and installation of the livestock market management committees in Dori and Pissila After the validation of the livestock markets analyses carried out by REGIS-AG during FY16, the project team initiated several awareness-raising and negotiation activities with the different actors for the establishment of inclusive committees through elections for the management of the markets in Dori and Pissila during Q4 if FY16. These awareness-raising activities continued during Q1 of FY17 with producer associations, retailers and local authorities. In addition, radio messages were broadcast to ensure that most stakeholders were informed before the elections in order to guarantee full stakeholder participation. REGIS- AG prepared the working documents (notably draft statutes, internal rules, a plan of action), lists of tasks assigned to the members of the management committee, and material required for the elections. Election of the management committee member was held in Dori took place on October 19th, 2016. REGIS-AG and a representative of the Animal Resources Directorate of the ministry and one from the local municipality monitored the elections in order to ensure the transparency. A total of 240 stakeholders participated in the elections, including livestock traders, shopkeepers and producers. At the end of the elections, an executive committee comprising ten (10) members was set up. In addition to the executive office, two (2) advisors and two (2) external auditors were elected to ensure good governance of this committee. Therefore, a total of 14 members (including 3 women) were elected to manage the livestock market in Dori.

The Pissila Market Management Committee was established on the 27th November 2016 in the presence of REGIS-AG, the Mayor and the 2nd Deputy Mayor. This committee includes 12 elected members (one woman), Box 1: The Mayor of Pissila comments: two elected counselors (one woman) and two elected « I am satisfied with the support REGIS-AG auditors. The composition of this new bureau includes has provided. Truly, this has allowed me to all socio-professional segments that are active in the address the challenge I had to renew the office. I have no doubt that this good work will livestock market. stimulate the type of dynamic we need for the functioning of the Pissila livestock market. c) Sub Activity 5.4.4: Support establishing, organizing, and training market management committees

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Supported the setting up of 9 livestock markets management committees as GIE During the 1st quarter of FY16 in Niger, REGIS-AG signed 2-year protocols with 9 livestock markets to improve their management through more inclusive and effective committees. During Q1 of FY17, REGIS- AG carried out a series of awareness raising sessions in the different markets with the goal of setting up functioning committees. After developing and validating the TORs by the project management, the project team started working with the different committees on explaining the different forms of organization. In Niger, REGIS-AG supported the setting up of the following 9 livestock markets management committees as GIE: GIE Hadin Kai of Magara, GIE Nazari of Gada, GIE Sada Zumunta of Kwaya, GIE HASKEN KARA of Mayahi, GIE Fusa'ar Cigaban Kara of Sabon Machi, GIE Cigaban Kasuar Kara of Dakoro , GIE Cigaban Kasuar Kara of Filingué (CKKF), GIE Balleyara Almaney Habbo Mazada (BAHM) of cattle market of Balleyara and GIE Mojéré Lumobé Jawdi of TORODI. Each GIE has its own statutes, internal rules, a plan of action, and a draft convention and a board democratically elected in the presence of legal administrators or court clerks.

Members of the Balleyara Almaney Habbo Mazada Members of the HASKEN KARA GIE of Mayahi (BAHM) GIE posing with the mayor posing with the mayor

Once the GIE were set up, REGIS-AG trained representatives of these 9 GIEs on: (a) texts that govern the trade of livestock, hides and skins in Niger; (b) different ways of managing a livestock market (according to the market code Public administration in Niger); (c) procedures to follow when holding a meeting; and (d) tools for managing a GIE's accounts. In total, more than 388 trade delegates participated, including 38 women. Below are some illustrative photos of this process.

Activity 5.6: Coordinate with the Trade Hub on regional trade issues

a) Sub activity 5.6.1: Coordinate with the Trade Hub on regional trade issues and on collaboration with regional inter-professional associations; participate in regional meetings Strengthening collaboration with Trade Hub On November 22th, 2016 the cowpea specialist of REGIS-AG met with the Trade hub Manager in Burkina Faso. The two projects presented their activities and agreed to develop a joint work plan in January 2017.

b) Sub activity 5.6.3 Coordination of Component 5 activities and exchange learning

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Finalizing reports on the study of official and unofficial road taxes in Niger and Burkina on commercial trucks carrying agricultural commodities. During FY16, REGIS-AG carried a study on official and non-official taxes levied on three value chain products: cowpea, small ruminants and poultry in Burkina Faso and Niger. The scope of the study included a documentary review of the studies already carried out across by the GON, The West Africa Trade Hub, CILSS, and PRODEX ; information on trading channels from the local market to the final market; the identification of stakeholders involved throughout the circuit; transportation costs (estimate based on quantity of products transported); and the identification and analysis all taxes linked to the export of the product to the final market (official taxes, unofficial taxes or incidentals, other costs, etc.). The two draft reports were finalized in December. These will be used in Q1 of FY17 to develop the advocacy themes the project will be working on in collaboration with Trade Hub, Borderless Alliance, and national and regional value chain platforms.

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PART 3 - PROJECT PERFORMANCE - Level of Achievement in Q1 of FY17 Expected Outcomes and Performance Indicators

During the reporting period, project performance monitoring activities focused on strengthening the Monitoring, Evaluation and Learning (M&EL) system and actual performance monitoring.

3.1 Strengthening of the M&EL system Two key activities were carried out to strengthen the M&EL system: an assessment of the system itself and organizing the baseline study.

3.1.1. Assessment of the M&EL system Two key activities were carried out during the reporting period: DQA by SAREL and assessment of the project MEL by an external consultant. a) DQA 2016 During the month of October, at the request of USAID, the SAREL project evaluated the quality of the REGIS-AG data on 12 indicators monitored by the project. This data quality assessment (DQA) was structured in two steps: • Verifying the status of implementation of the recommendations made by the DQA exercise in 2015 • Carrying out a complete DQA of 12 project indicators selected by USAID

The results of this assessment, which are detailed in the report SAREL produced, revealed strengths and weaknesses of the project MEL system. Recommendations made for the main weaknesses observed corresponded to the corrective measures already being taken within the project (e.g. translation of the PMP in French, effectiveness of the recruitment of the M&EL Officer of Burkina Faso, linking activities implemented with project indicators which was already being at right from TORs development stage, inclusion of the project indicator table in progress reports) or corrective measures the project team had included in the budget realignment submitted to USAID (e.g. strengthening the monitoring and evaluation team in the regions and at the leadership level). REGIS-AG's support for this activity focused on presenting the level of achievement of the 2015 DQA recommendations, providing all documents the mission needed, and giving feedback to the assessment team during its debriefing meetings held in Ouagadougou and Niamey. Results of the DQA were shared with project staff during the quarterly planning meeting the team held in Burkina Faso and Niger (refer to bullet f in 4.2 below).

b) Assessment of the project MEL by an external consultant In addition to the DQA, the project carried out an assessment of the project M&EL system, including tools, team, and procedures using a USAID-approved external consultant. In December 2016, the consultant performed the following tasks: • Reviewing Monitoring and Evaluation material related to REGIS-AG and RISE including but not limited to the M&E plan and annexes, the DQA from FY16016 and FY16017, etc. • Reviewing the collection tools indicator-by-indicator, results and database for REGIS-AG indicators and providing feedback to the team to improve the overall collection and management systems in place for the project. • Developing a set of standardized reporting forms and a draft field survey questionnaire, 39

• Examining of a proposed baseline survey plan, • Presenting to and discussing with REGIS-AG leadership team and M&E staff recommended improvements and follow up activities if needed. The consultant also conducted training for the project’s M&E specialist in data collection and reporting, secure document storage, field survey methodologies, and calculation tools for Gross Margins for all three targeted value chains. A report detailing the trip, lessons learned, recommendations to REGIS-AG on next steps will be submitted during Q2 of FY17.

3.1.2. Organizing the baseline study The baseline study was planned in the REGIS-AG Work Plan for FY16 of implementation following the approval of the M&E Plan in December 2015 to establish the reference values of the project indicators, and specify targets better. REGIS-AG baseline study was initially focused on the following two indicators: ➢ 01: Aggregated farm-level values of the sales (US $) of the cropping season for the 3 value chains (cowpeas, small ruminants and poultry) resulting from program implementation. ➢ 0.2: Gross margins values (US $) per hectare (for cowpeas), animal (goat, sheep, chickens, guinea fowl, pigeons) or cage of selected products.

As reported in the project annual report for FY16, REGIS-AG worked with SAREL for its planning. After a low planning process23, field work was scheduled to start by the end of Q1 of FY17 with the plan to report to USAID during Q2.

During Q1 of FY17, activities only focused on contracting and finalizing the survey instruments. In addition to the aforementioned core indicators, discussion with the project COR led to the inclusion additional data collection effort to determine the following: ➢ indicator of women empowerment (WEAI); ➢ depth of poverty data (household consumption) to allow comparability with the RISE baseline ➢ # of stakeholders implementing risk-reducing practices/actions to improve resilience to climate change as a result of USG assistance; ➢ # of farmers who have adopted new technologies or management practices; as a result of USG assistance; ➢ Net income from the value chains sales.

The Subcontractor is now expected to submit agreed upon deliverables in accordance with the following schedule:

Deliverable No. Deliverable Name Due Date 1 Minutes of the scoping meeting with REGIS AG January 8, 2017 Detailed methodological proposal January 10, 2017 2 Staff training report January 20, 2017

23 The slowness of the process was due to the instability experienced at the project leadership level. The amended ToR was the submitted to SAREL for approval. On 21 April, a call for financial and technical proposals to carry out the survey was published in the local newspapers in Niger and Burkina. Subsequently, during a business trip in Niamey, of M & E Specialist USAID Senegal held a meeting on 19 May with the team at the REGIS-AG office during which the ToR was reviewed again. REGIS-AG proposed additional inclusions in October that have now been integrated. 40 3 Report of the data collection February 15, 2017 4 Complete database on Excel and SPSS February 25, 2017 5 Draft report of the study (preliminary report) March 10, 2017 6 Report of the restitution of the preliminary report March 20, 2017 7 The final report March 27, 2017 8 The completed paper surveys archived March 27, 2017

REGIS-AG is confident that the March 27 deadline for the production of the final report will not be met.

3.2 Status of achievement of performance indicators at Q1 in FY17 REGIS-AG Monitoring and Evaluation Plan includes a list of 36 indicators used to measure and report project progress and impact. All indicators used are designated as either Feed the Future (FtF) indicators (18) or custom indicators (18) developed especially for the REGIS-AG project. Twenty-two (22) of these indicators are Output (OP) indicators while 14 are Impact/Outcome (I/O) indicators. Project performance on these indicators is presented in Table 11 below with justifications and observations.

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Table 11: Project performance and progress towards achieving project performance results

Target achieved Target Target achieved Unit/ LOP Target Q1 FY17 Indicator achieved to date (FY15-17) Justifications and observations Disaggregation Target FY17 (12/31/2016) FY15-16 Unit Rate (%) Unit Rate (%) 0.1 Value (US $) of US $ by country: This is partly dependent on the baseline Incremental sales − Total $4.21mil $0 $ 400,000 $0 0% $0 0% survey which is now being carried out. (collected at farm − Niger Values of sales are recorded in specific level) attributed to − Burkina Faso activities. The survey for determining program values of sales thorough out the target implementation US $ by VC beneficiaries is planned for Q2 of FY2 − Cowpea Data expected in the Q2 FY17 report. − S. ruminants − Poultry

US $ by Sex: − Men − Women 0.2a Gross margins US $ by country: The survey for determining this is (US $) per hectare − Total $1,024 $0 $ 512 $0 0¨% $0 0% planned for Q2 of FY2 and will be (for cowpeas) − Niger reported in Q3. It was not done in FY16 − Burkina Faso due to the limitation of the MEL system US $ by Sex: and project leadership instability − Men throughout the first part of the year. − Women 0.2b Gross margins US $ by country: Same as above (US $ per adult − Total $17.00 $0 $ 12 $0 0% $0 0% animal) for small − Niger ruminants (goat and − Burkina Faso US $ by animal: sheep) − Goat − Sheep US $ by Sex:

− Men − Women 0.2c Gross margins US $ by country: Same as above. (US $) for poultry − Total $3.40 $0 $ 2.00 $0 0% $0 0% (chickens and guinea − Niger fowl) − Burkina Faso US $ by poultry:

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Target achieved Target Target achieved Unit/ LOP Target Q1 FY17 Indicator achieved to date (FY15-17) Justifications and observations Disaggregation Target FY17 (12/31/2016) FY15-16 Unit Rate (%) Unit Rate (%) − chicken − guinea fowl US $ by Sex:

− male − female 2.1 # of Food security # by country: The count includes the number of POs private enterprises, − Total 600 616 90 94 0% 616 103% that have benefited of trainings on the producer, water user − Niger 21 PICS bags, business linkage events or community based − Burkina Faso 73 through fairs, B to B events, and # by VC: organizations, meetings with agro dealers, and the women's groups, − Cowpea number of POs’ marketing manager who trade and business − S. ruminants received project guide for poultry associations receiving − Poultry production. These POs were reached in # by type of org.: USG-funded FY16. Given that the LOP target has assistance − POs already been met, the project now plans to focus on intensifying support to these beneficiaries to ensure the sustainability of this outcome as opposed to add more beneficiaries. However, some additional

(new) POs will be strategically added in subsequent quarters, especially given the target of 50,525 households set for indicator 2.2. 2.2 # of vulnerable # by country: During this quarter, staff made field visits households benefiting − Total 50,525 24,095 11,365 1,667 15% 25,762 51% to sensitize PO’s for warrantage. Those directly from USG − Niger 537 meetings recorded many participants. interventions − Burkina Faso 1,133 Many more activities directly benefiting vulnerable households will be organized throughout the year. 2.3 % of households in % by country: The survey for determining this is which a woman has − Total 25% 3% 18% 0% 0% 3% 12% planned for Q2 of FY2 and will be benefited directly − Niger reported in Q3. from ownership of − Burkina Faso % by VC: personal fields, new ownership of small − Cowpea ruminants or poultry, − S. ruminants − Poultry

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Target achieved Target Target achieved Unit/ LOP Target Q1 FY17 Indicator achieved to date (FY15-17) Justifications and observations Disaggregation Target FY17 (12/31/2016) FY15-16 Unit Rate (%) Unit Rate (%) or involvement in a savings/loan program 2.4 % of households % by country: The survey for determining this is engaged in a new − Total 40% 0 25% 0 0% 0 0% planned for Q2 of FY2 and will be income-generating − Niger reported in Q3. micro-enterprise as a − Burkina Faso result of USG interventions 2.5 # of new jobs # by country: The survey for determining this is attributed to USG − Total 2,920 166 360 0 0% 166 6% planned for Q2 of FY2 and will be

implementation* − Niger 99 0 99 reported in Q3. − Burkina Faso 67 0 67 # by VC: − Cowpea − S. ruminants − Poultry # by Sex: − Male − Female 2.6 # of stakeholders # by country : The survey for determining this is implementing risk- − Total 19,840 1,347 3,680 0 0% 1,347 7% planned for Q2 of FY2 and will be reducing − Niger 0 reported in Q3. − practices/actions to Burkina 0 improve resilience to Faso climate change as a # by Sex: result of USG − Male assistance − Female 2.7 # of market # by country : Two fairs were organized in this quarter, exchanges (bourses) − Total 95 21 13 2 15% 23 24% one in Burkina Faso during national and fairs linking sellers − Niger 15 1 16 independence holiday on December 11 and buyers − Burkina Faso 6 3 1 7 and the other in Niger during on # by VC: December 18. Eleven more fairs and B − Cowpea to B events are planned in subsequent − S ruminants quarters. − Poultry # by country : 40 0 5 0 0% 0 0% − Total

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Target achieved Target Target achieved Unit/ LOP Target Q1 FY17 Indicator achieved to date (FY15-17) Justifications and observations Disaggregation Target FY17 (12/31/2016) FY15-16 Unit Rate (%) Unit Rate (%) − Niger The process of transforming POs in GIEs − is still at the stage of validating the Burkina Faso project strategy for achieving the 2.8 # of women’s # by VC: expected results. The validation groups transformed − Cowpea workshop will be held in Q2 of FY17. into GIEs − S ruminants Follow up activities will lead to − Poultry transformation of POs in GIEs by the

end of FY17. 3.1 metric cube (#) of Metric meters By Increase in installed country, VC, & 85,000 - 10,000 0 - - - storage capacity (m3) Sex 3.2 # of Farmers who # by country : The survey for determining this is have adopted new − Total 48,550 1,347 13,767 0 0% 1,347 3% planned for Q2 of FY2 and will be technologies or − Niger 0 reported in Q3. management − Burkina Faso 0 practices as a result of # by Sex:

USG assistance − Male − Female 3.3 # of agro-dealers # by country : Trainings were only planned in trained in business − Total 250 0 90 0 0 0 0 subsequent quarters. management and − Niger technical skills − Burkina Faso # by Sex:

− Male − Female 3.4 # of private # by country : The process is ongoing. As reported in veterinarian outreach − Total 7 6 2 0 0% 6 86% sub activity 3.7.1, two (02) private services (SVPPs) − Niger 0 veterinarians (VETO CONSULT and created − Burkina Faso 0 VETO ASSISTANCE) made the commitment to operate as veterinarians of the Eastern Region RSAP. The next step is the selection and training of new livestock auxiliaries (AE) and women-

vaccinators who will be part of their network (SVPP/RSAP) which is going on in sub activity 3.74 and 3.7.5.

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Target achieved Target Target achieved Unit/ LOP Target Q1 FY17 Indicator achieved to date (FY15-17) Justifications and observations Disaggregation Target FY17 (12/31/2016) FY15-16 Unit Rate (%) Unit Rate (%) 3.5 # of private # by country : The survey for determining this is enterprises, producer − Total 480 59 72 0 0% 59 12% planned for Q2 of FY2 and will be organizations, water − Niger 0 reported in Q3. user associations, − Burkina Faso 0 # by Sex: trade and business associations, and − Male community-based − Female # by VC: organizations (CBOs) that applied new − Cowpea technologies or − S ruminants management − Poultry # by type of ent.: practices as a result of USG assistance − POs

3.6 # of private # by country : The project activity through which this enterprises, producer − Total 600 616 90 0 0% 616 103% assistance is currently being provided is organizations, water − Niger 0 the warrantage scheme. Data will only user associations, − Burkina Faso 0 be reported in Q2 of FY17 when credit trade and business disbursements would have occurred. At associations, and the current stage of the process, 71 POs community-based are involved (31 in Burkina Faso and 40 organizations (CBOs) in Niger). Additional assistance planned receiving USG will involve SVPP/RSAP, some cowpea assistance processors and meat roasters. 4.1 Value(US $) of US$ by country : As indicated in the FY16 annual report, new private sector − Total $250,000 $0 $75,000 $0 0% $0 0% no major investment was made but good investment in the − Niger opportunity being developed such as agricultural sector or − Burkina Faso poultry feed production with local US $ by VC: value chain leveraged resources (limited scale, tested), by project − Cowpea investments in PICS bags, glass boxes for implementation − S ruminants selling meat glass cage for sales of meat under reasonable hygienic conditions, solar power for conservation of − Poultry perishable products, or Kilichi in Burkina Faso. New potential private sectors investments were identified during the

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Target achieved Target Target achieved Unit/ LOP Target Q1 FY17 Indicator achieved to date (FY15-17) Justifications and observations Disaggregation Target FY17 (12/31/2016) FY15-16 Unit Rate (%) Unit Rate (%) quarter among cowpea processors and meat roasters. 4.2 Value (US $) of US$ by country: $6.021 Same as in indicator 3.6. At the current agriculture and rural − Total M $0 $1,602,500 $0 0% $0 0% stage of the warrantage process, the loans made by USG − Niger total amount of credit MFI are willing to assisted financial − Burkina Faso give to farmers is estimated at about US institution $312,045 ($201,327 in Burkina Faso and $110,758 in Niger). In addition, the project plans to work with a number of processors (including the one from Bogande USAID met during the recent RISE portfolio review field trip in Burkina Faso) who need equipment to upgrade their operation is likely to generate additional loans that will be much larger. 4.3 # of new and/or # by country: No new and/or innovative services and innovative services − Total 12 1 2 0 0% 1 8% technologies was made available to VC (including insurance) − Niger actors as a result of the project during and technologies − Burkina Faso Q1. However, there a number of available to VC actors planned activities that will generate the as a result of USG data that will allow the project to meet assistance the target set for FY17. This is case for example for the study that will lead to piloting insurance products and the support that will be provided to financial institutions to develop innovative products. 4.4 Number of # by country: Same as in indicator 3.6. MSMEs, including − Total 1,540 0 412 0 0% 0 0% farmers, receiving − Niger USG assistance to − Burkina Faso access loans 4.5 # of Strategic # by country: Services Sub-awards − Total 20 0 6 0 0% 0 0% awarded − Niger

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Target achieved Target Target achieved Unit/ LOP Target Q1 FY17 Indicator achieved to date (FY15-17) Justifications and observations Disaggregation Target FY17 (12/31/2016) FY15-16 Unit Rate (%) Unit Rate (%) − Burkina Faso 4.6 # of business plans # by country: No assistance was provided for business developed with USG − Total 280 0 60 0 0% 0 0% plans development during Q1. However, assistance − Niger with the roll out envisages for service − Burkina Faso provision through the 3S Fund and the needs assessment carried out in FY16,

the project believes that this target will be met by the end of FY17. 4.7 # of MSMEs, # by country: Same as in indicator 4.6. including farmers, − Total 2,439 1,394 569 0 0% 1,394 57% receiving business − Niger development services − Burkina Faso from USG assisted services 4.8 # of public-private # by country: No public-private partnerships formed partnerships formed − Total 6 0 2 0 0% 0 0% during Q1. However, this target is likely as a result of FtF − Niger to be achieved in subsequent quarters at assistance − Burkina Faso least through the project activity focusing on improving livestock market managements. # by country: 5.1 # of laws or 10 0 2 0 0 0 0% No law or regulatory action was regulatory actions − Total advocated by associations of value chain advocated by − Niger actors during Q1. In their joint work associations of value − Burkina Faso plan, REGIS-AG and Trade Hub have chain actors (e.g., envisaged to work together to organize farmers, agro- advocacy activities as described in sub pastoralists, activity 5.6.3. cooperatives, traders, processor, exporter associations) and accepted by host government 5.2 # of multi- # by country: Ten workshops were held in Niger stakeholder − Total 92 22 20 10 50% 32 35% during which draft conventions were workshops organized − Niger 9 shared with stakeholders. In Burkina, − Burkina Faso 2 1 one workshop was held on the eggs.

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Target achieved Target Target achieved Unit/ LOP Target Q1 FY17 Indicator achieved to date (FY15-17) Justifications and observations Disaggregation Target FY17 (12/31/2016) FY15-16 Unit Rate (%) Unit Rate (%) 5.3 # of livestock # by country: REGIS-AG facilitated election and markets revitalized − Total 25 2 4 2 50% 4 16% installation of the livestock market through community − Niger 0 management committees in Dori and management − Burkina Faso 2 Pissila (sub activity 5.4.3). In addition, the project supported the setting up of 9 livestock markets management committees as GIE in Niger (sub activity 5.4.3). Three other markets in Niger (Mayahii, Sabon-Machi and Dakoro) are in an advanced stage election and installation of the livestock market management committees. 5.4 # of trade # by country: No trade associations/profession group associations/profession − Total 8 0 2 0 0% 0 0% was supported with advocacy skills and groups supported with − Niger strategic plans during Q1. However, as advocacy skills and − Burkina Faso mention under indicator 5.1, REGIS-AG strategic plans and Trade Hub have envisaged to work

together to organize advocacy activities (sub activity 5.6.3). 5.5 # of quarterly # by country: Two project workshops were organized, learning meetings & − Total 18 4 4 2 50% 6 33% one in Maradi in Niger as escribed in project wide learning − Niger 1 bullet f of section 4.2 of the present summits − Burkina Faso report. Similar meetings are planned for 1 the remaining quarters.

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PART 4 - PROJECT MANAGEMENT Project management activities focused on ensuring adequate project staffing, meaningful reporting, effective communication, and adequate planning and monitoring. This part of the report summarizes activities REGIS- AG carried out in these areas during the reporting period.

4.1. Project staff As reported in the annual report of FY16, six (06) departing employees needed to be replaced at the end of the FY, five (05) in Burkina Faso and two (02) in Niger24. During the quarter, two staff resigned: the MEL Manager (Moussa Sayo; end of October)25, and the Input & Service Market Advisor (Moussa Ango; end of December)26. In addition, the project Administrative and Finance Assistant (Safiatou Kossongonona Boly) based in Ouagadougou passed away. Administrative processes for filling all vacant positions have been initiated and replacements are expected to occur in Q2 of FY17. One can however say that throughout the reporting period, the project staff count remained stable. This situation was attributable to the stability of the leadership and a greater sense of staff satisfaction for progress being made. By the end of Q1, project implementation was being carried out by a team of 70 staff distributed in the same six (06) as indicated in the Table 12 below. In three of the six project offices, REGIS-AG continued to co-locate with REGIS-ER.

Table 12: REGIS-AG staffing and geographic distribution

Number of staff Co-location Project offices Technical Admin & Finance Total with REGIS-ER In Burkina Faso: 20 6 26 - • Ouagadougou 7 4 11 Yes • Dori 13 2 15 No In Niger: 32 12 44 - • Niamey 15 9 24 No • Maradi 4 0 4 Yes • Tillabéri 4 0 4 Yes • Zinder 9 3 12 No

All project employees continued to be fully equipped. However, staff mobility and the ability to do the field activity implementation and monitoring remained a challenge. Approval expected in Q2 of FY17 of the project budget realignment REGIS-AG submitted to USAID will reduce this challenge because it includes a provision for purchasing an additional vehicle and two motor cycles for Burkina Faso and six motor cycles for Niger.

24 In Burkina Faso: two (02) Small Ruminants and Poultry VC Coordinator (from AGED and A2N), a BDS Innovator Advisor, a Resilience/Disaster Risk Reduction (DRR) Specialist, and a Functional Literacy Coordinator. In Niger: a Small Ruminants VC Coordinator. 25 Resigned for personal reasons. 26 Resigned to return to the public service due to the end of his leave of absence. 50

4.2 Management activities During the reporting period, the project COP provided the overall leadership of the project management. However, for each of the project components, specific staff members were formally assigned the leadership responsibility for the day-to-day management of activities under a component. Key management activities carried out during the quarter are the following:

a) Weekly project planning/review meetings were held with staff in Burkina Faso and Niamey b) Skype-based meetings27 were held with CNFA backstopping team in Washington DC. c) Multiple meetings held between the COP, the DCOP and Project Manager to monitor activity implementation in the field. d) Multiple Project Managers’ meetings with staff in field offices in Niger and Burkina Faso e) Work planning meeting held in Niger (29 November to 2 December) and Burkina Faso (6-9 December). f) A critical planning process on a quarterly basis was initiated – the team met in Niger (29 November to 2 December) and Burkina Faso (6-9 December) to cave out Q2 work plan of activities base on the overall work plan submitted to USAID. Plans were first developed for each component and then each staff developed his/her individual plan for the quarter. For each activity, milestones were agreed upon, indicators targeted identified and their target specified. In addition, a specific staff was designated as the leader of the activity (i.e., he/she is responsible for making sure that the activity is carried out as planned) and all staff who should be involved in the delivery of every milestone specified. A review meeting will be held at the end of the quarter to assess progress, draw lessons and plan for the next quarter. These meetings also serve as team building encounters. g) Multiple email and face-to-face exchanges between the COP and the COR occurred. Though generally held on an ad hoc basis, these exchanges are highly appreciated by the project team because they proved to be a critical source of guidance and orientation that significantly improves project performance.

4.3 Collaboration with RISE partners Operationally, REGIS-AG continued to collaborate with the RISE partners. This collaboration is built around a Memorandum of Understanding (MOU) that is implemented through annual collaborative or joint work plan. Table 13 below presents the lists of partners and the geographic area involved.

Table 13: REGIS-AG key implementing partners and geographic areas of collaboration

27 These are meetings that bring together REGIS-AG management team (i.e., COP, DCOP, Program Manager, Value Chain Advisor, and DFO) and the CNFA backstopping team based in Washington DC (Program Manager, Program Coordinator, Finance Officer, and Vice President for Programs) to discuss updates on activities and administrative issues. They are led by the DC-based Program Manager who sends an agreed upon agenda before each meeting. This platform informs the Washington DC team guidance and support to the COP. 51

Lead Geographic areas of Partner Status of the partnership implementer collaboration In Burkina Faso: REGIS-ER CLUSA In 3 regions (Sahel, Center- No formal MOU signed North and the Eastern) PROFIL Burkina Faso In 2 regions (Sahel and Structured and formalized thru Government Center-North) MOU signed on 09/07/2015 ViM ACDI VOCA In 1 region (Center-North) No formal MOU signed Programme Faso CRS In 2 regions (Center-North No formal MOU signed and Eastern Region) In Niger: REGIS-ER CLUSA In 3 regions (Maradi, Tillabéri No formal MOU signed and Zinder) LAHIA Save the Children In in 1 region (Maradi) Structured and formalized thru MOU signed on 03/03/2016 Sawki Mercy Corps In 2 regions (Maradi & Zinder) Structured and formalized thru MOU signed on 12/08/2016 PASAM-TAI CRS In 2 regions (Maradi & Zinder) Being structured and formalized -- MOU signing process in process

Key project accomplishments during the reporting period are the following • Finalized Joint work plan developed with LAHIA and Sawki in Niger • Held a joint planning meeting with REGIS-ER in Burkina Faso in December • Planned a meeting with Trade Hub for joint work plan development in early Q2 of FY17 • Finalized an MOU with SPRING in December • Held discussions with the World Food Program (WPF) for join activities in Burkina Faso and Niger

Joint work plans in the pipeline are expected to be submitted to USAID in Q2 of FY17.

4.4 Project Reporting and Public Communication During the reporting period, in terms of reporting and communication, the project accomplished the following: • Drafted and submitted to USAID of the project annual report for FY16 • Addressed USAID questions on the draft work plan for FY17 • Initiated the drafting of four Success stories to be submitted to USAID for approval in Q2 of FY17.

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