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Agricultural Support to Azerbaijan Project (ASAP) Implemented by CNFA

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Agricultural Support to Azerbaijan Project (ASAP) Implemented by CNFA AGRICULTUR AL SUPPORT TO AZERBAIJAN PROJECT (ASAP) YEAR FIVE WORK PLAN Project Year 5: October 1, 2018-September 17, 2019 Prepared for review by the United States Agency for International Development under USAID Contract No. AID-112- C-14-00001 , Agricultural Support to Azerbaijan Project (ASAP) implemented by CNFA. Submitted to USAID on September 10, 2018 Table of Contents I. Executive Summary ....................................................................................................... 4 II. Project Overview ........................................................................................................... 5 III. Year 4 Accomplishments .............................................................................................. 6 a. Hazelnut Value Chain .................................................................................................... 7 b. Orchard Value Chain ..................................................................................................... 8 c. Pomegranate Value Chain ........................................................................................... 10 d. Vegetable Value Chain ................................................................................................ 12 e. Berry Value Chain ....................................................................................................... 13 f. Access to Finance ........................................................................................................ 14 g. Food Safety and Quality .............................................................................................. 15 h. U.S. Linkages .............................................................................................................. 15 i. Preventing Violent Extremism .................................................................................... 15 IV. Year 5 Work Plan Activities ........................................................................................ 19 a. Hazelnut Value Chain Strategy ................................................................................... 19 b. Orchard Value Chain Strategy ..................................................................................... 32 c. Pomegranate Value Chain Strategy ............................................................................. 45 d. Vegetable Value Chain Strategy ................................................................................. 54 e. Berry Value Chain Strategy ......................................................................................... 61 f. Cross-Cutting Assistance ............................................................................................. 70 g. Monitoring and Evaluation Plan .................................................................................. 92 Annex A: Illustrative Potential Technology Transfer Fund Investments for PY5 ................ 92 Annex D: Anticipated PY5 STTA and Other International Travel ..................................... 996 Annex E: BSP Technical Assistance Matching Fund ......................................................... 997 Annex F: Demonstration Plots............................................................................................ 102 Annex G: Training Schedule……………………………………………………………....107 Index of Acronyms ABGA Azerbaijan Berry Growers Association AHEC Azerbaijan Hazelnut Exporters Consortium AHPEA Azerbaijan Hazelnut Producers and Exporters Association APPEA Azerbaijan Pomegranate Producers and Exporters Association ASAP Agricultural Support to Azerbaijan Project ASAU Azerbaijan State Agricultural University ATDC Azerbaijan Teachers Development Center AZN Azerbaijani manat AzREG Azerbaijan Buy-in to the USAID Regional Economic Growth Project BDS Business Development Services BMSB Brown Marmorated Stink Bug BSP Business Service Provider CKI Countering Kremlin Influence DO Development Objective EOI Expression of Interest GAP Good Agricultural Practices G-HIP Georgia Hazelnut Improvement Project HACCP Hazard Analysis and Critical Control Points IR Intermediate Result ISO International Organization for Standardization MOU Memorandum of Understanding PVE Preventing Violent Extremism REAP Restoring Efficiency to Agricultural Production REG USAID Regional Economic Growth Project SEDA USAID Socio-Economic Development Activity SME Small and Medium-Sized Enterprise STTA Short-Term Technical Assistance TTF Technology Transfer Fund VC Value Chain I. Executive Summary This work plan addresses the fifth year of project assistance, from October 1, 2018 through September 17, 2019 under USAID/Azerbaijan’s Agricultural Support to Azerbaijan Project (ASAP) as implemented by CNFA. This work plan lays out the overall strategy for ASAP in Project Year 5, and provides both an operational and programmatic overview of activities for Result 1, Improved quality and quantity of goods produced, and Result 2, Good agricultural practices implemented. It also includes a proposed strategy and activities for $100,000 in incremental funding that the project has been obligated from USAID’s innovation hub, the U.S. Global Development Lab. In Project Year 5, ASAP will specifically concentrate its efforts on supporting USAID/Azerbaijan Development Objective (DO) 1, Improved Investment Climate in Azerbaijan and Intermediate Result (IR) 1.3 Improved Competitiveness in Target Sectors. In addition, ASAP will complement USAID’s IR 1.2, Development of a More Robust Financial Sector. Through improving the competitiveness of agribusinesses and small and medium-sized farmers through improvements in quality, quantity and other efficiencies, ASAP will improve the Azerbaijan agriculture sector’s ability to compete in local, regional and world markets and contribute to USAID’s goal of a more diversified economy. To accomplish USAID/Azerbaijan’s goal of increasing the incomes of agribusinesses and agricultural producers through the development of Azerbaijan’s non-oil economy, ASAP will utilize four main program interventions: tailored technical assistance; matching investments to improve the competitiveness of medium and large agribusinesses; practical demand-driven training to improve the production, post-harvest and marketing of agricultural goods; and extensive market research to identify and facilitate access to new products and technologies produced by U.S. agribusinesses that could play a critical role in modernizing Azerbaijani agriculture and making it more efficient and profitable. Driven by its value chain approach since the project’s launch and findings to date, ASAP will continue to target interventions in five high- potential value chains: berries, hazelnuts, pomegranates, orchard crops, and vegetables. ASAP will support the growth of agribusiness SMEs through delivery of custom technical assistance from its own staff and program-supported local agronomists, conducting group training with the assistance of local business development service (BDS) providers, industry associations, and agricultural service centers, and continued implementation of the Technology Transfer Fund (TTF) to stimulate investment in improved equipment and techniques. The project will also promote improved production practices through capacity-building efforts to increase the 4 CNFA AID-112-C-14-00001 availability, quality and sustainability of extension services, a series of demonstration plots and outreach activities; efforts to strengthen capacity of input dealers and distributorships; and facilitate support to agribusiness industry groups such as the Azerbaijan Hazelnut Processors and Exporters Association and Azerbaijan Pomegranate Producers and Exporters Association, as well as other efforts aimed at fostering industry collaboration and public dialogue. II. Project Overview The Agricultural Support to Azerbaijan Project is a 51-month, $11.6 million USAID initiative to increase the incomes of agribusinesses and agricultural producers, with the purpose of accelerating the development of Azerbaijan’s non-oil economy. Since June 2014, ASAP has supported the growth and expanded exports of agribusiness SMEs through an extensive program of technical assistance by project staff, field-based agronomist assistants, and the utilization of local Business Service Providers (BSPs), facilitation of increased access to finance and financial tools and information, promotion of improved production practices through strengthened extension services, and facilitation of a favorable business enabling environment through expanded dialogue and the use of analytical tools and training. ASAP is building on the successes of USAID’s support to agricultural producers and processors in Azerbaijan achieved over the last 20 years, which has strengthened the ability of domestic producers to meet international quality standards, increase exports, and better supply domestic market demand, while boosting employment and incomes. ASAP is targeting five value chains with the highest competitive potential, including berries, hazelnuts, pomegranates, orchard crops, and vegetables, through activities designed to: 1. Assist growers and processors to adopt new technologies and techniques to increase the quality and quantity of production; 2. Facilitate increased exports and enhanced domestic marketing through more rigorous food safety systems, packing, and post-harvest methods; 3. Strengthen the linkages among actors in the respective value chains and foster cooperation through strengthened industry associations; 4.
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