AGRICULTURAL SUPPORT TO AZERBAIJAN
PROJECT
Fourth Annual Progress Report
Year 4. October 1, 2017 – September 30, 2018
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.
Agricultural Support to Azerbaijan Project
Fourth Annual Progress Report
October 1, 2017 – September 30, 2018
Submitted by: CNFA USAID Contract AID-112-C-14-00001
Submitted to: USAID/Azerbaijan Samir Hamidov, COR
Submitted on October 22, 2018
Revised version submitted on November 15, 2018
Table of Contents Acronyms ...... iii Executive Summary ...... 1 Detailed ASAP Progress by Activity and Component ...... 4 Operations ...... 4 Finance (audit, budgets, taxes, etc.) ...... 5 Legal Registration ...... 6 Financial and Expenditure Summary ...... 7 Project Budget Summary and Spending through September 30, 2018 ...... 7 Programs ...... 7 Result 1: Improved Quality and Quantity of Goods Produced...... 7 Hazelnut Value Chain ...... 7 Orchard Fruit Value Chain ...... 12 Pomegranate Value Chain ...... 20 Vegetable Value Chain ...... 27 Berry Value Chain ...... 31 Result 2: Good Agricultural Practices Implemented ...... 34 Cross Cutting Activities ...... 35 Farmer Group Training ...... 35 ASAP Agronomist Support ...... 35 Facilitating Linkages with U.S. Agribusiness ...... 36 Technology Transfer Fund ...... 39 Business Support Provider (BSP) Technical Assistance Matching Fund ...... 40 Access to Finance ...... 41 Quality and Food Safety ...... 42 Monitoring and Evaluation (M&E) ...... 43 Environmental Management and Monitoring ...... 46 Gender ...... 49 Youth ...... 50 ICT ...... 51 Preventing Violent Extremism ...... 51 Collaboration with other Assistance Efforts ...... 52 Key Constraints and Lessons Learned ...... 54 Appendices ...... 57 APPENDIX A: Impact Indicator Tables ...... 58 APPENDIX B: Short-Term Technical Assistance/International Assignments ...... 79 APPENDIX C: Technology Transfer Fund (TTF) Status Updates ...... 80
i Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
APPENDIX D: Demonstration Plot/Activity Status Updates ...... 83 APPENDIX E: Project Success Stories ...... 87
ii Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
Acronyms
AFVPEA Azerbaijan Fruit and Vegetable Producers and Exporters Association APGEA Azerbaijan Persimmon Growers and Exporters Association ASAP Agricultural Support to Azerbaijan Project ASAU Azerbaijan State Agricultural University AZRIP Azerbaijan Rural Investment Project BDS Business Development Services BMSB Brown Marmorated Stink Bug BSP Business Service Provider CKI Countering Kremlin Influence COM Cabinet of Ministers of Azerbaijan DO Development Objective DPM Deputy Prime Minister EOI Expression of Interest GAP Good Agricultural Practices HACCP Hazard Analysis and Critical Control Points IR Intermediate Result ISO International Organization for Standardization MEP Monitoring & Evaluation Plan MOA Ministry of Agriculture of Azerbaijan MOU Memorandum of Understanding PERSUAP Pesticide Evaluation Report and Safer Use Action Plan PMP Performance Management Plan PVE Preventing Violent Extremism REG USAID Regional Economic Growth Project RFA Request for Applications RFQ Request for Quotations SABIT Special American Business Internship Training Program SEDA USAID Socio-Economic Development Activity SME Small and Medium-Sized Enterprise STTA Short-Term Technical Assistance TTF Technology Transfer Fund VC Value Chain
iii Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
Executive Summary
During PY4, ASAP continued to provide training and technical assistance to growers and processors in all five value chains, including the introduction of group trainings in improved cultivation practices. As a result of ASAP’s interventions, entrepreneurs are increasingly interested in introducing new activities, such as intensive production in orchard operations, new pomegranate and persimmon orchards in the Aran region, and the construction of new cold storage facilities in many parts of the country. ASAP has also increased demo plots and implementation of good agricultural practices, the impact of which is most visible in the hazelnut value chain, as yields from ASAP’s hazelnut demo plots have more than doubled over the previous two years. ASAP’s productivity-focused technical assistance on hazelnut orchards has featured irrigation projects implemented in several beneficiary orchards. ASAP has already begun the establishment of a new hazelnut nursery project to be completed in PY5, which will be built in Zagatala, Gakh, and Khachmaz. ASAP’s investments in these nurseries will go towards the provision of drip irrigation systems and ongoing technical assistance.
Throughout PY4, ASAP continued to facilitate international trade and service linkages while scaling up its focus on U.S. linkages. This was evident in two ASAP-led study tours to the U.S., and multiple distributorship agreements with U.S. vendors and Azeri agribusinesses that were either established or are now underway. In all, ASAP organized three international study tours this past year. In late 2017, 10 kiwi and feijoa growers and two ASAP staff members traveled to western Georgia to visit modern, internationally-certified kiwi and feijoa orchards, as well as nurseries and a fruit-drying facility. As a result of this visit, an ASAP beneficiary engaged in kiwi production established a demo plot using a “t-bar” staking technique. Additionally, as part of its collaboration with the USAID Regional Economic Growth Project (REG), ASAP organized two study tours to the U.S., including one from November 4-11, 2017, where 14 beneficiaries from the hazelnut value chain traveled to the Willamette Valley in Oregon. The group visited hazelnut orchards, nurseries, processors, an in-vitro laboratory, research and development laboratory, industry associations, as well as several machinery and equipment producers and vendors. Through this visit, participants learned about hazelnut orchard management practices to improve yields, specifically the densely-planted intensive hazelnut orchards and mono-trunk planting schemes. Azerbaijani processors were exposed to American manufacturers, serving as an opportunity to source specific equipment and begin the discussion of potential partnerships and distributorships with Azerbaijani agribusinesses.
Later in PY4, ASAP facilitated another study tour in collaboration with REG to northern California. Participants visited nurseries, production operations, input and machinery dealers, as well as industry support organizations. The study tour familiarized participants with advanced horticultural technologies and enabled them to carry out preliminary negotiations with potential dealers to import new high-yield fruit and berry varieties, as well as agricultural inputs, from the U.S. During visits to nurseries utilizing state-of-the-art methods and technologies, the participants learned about developing quality rootstock, including tree training, budding,
1 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report fumigation, pest controls, spraying, grading, and harvesting. Several partnerships between U.S. companies and Azerbaijani producers emerged as a result of the study tour. Vatan-AZ LLC signed an exclusive distributorship agreement valued at $220,000 with an American specialty fertilizer formulator, Grow More, Inc. Other ASAP beneficiaries engaged in strawberry production decided to order 278,000 strawberry plants of new strawberry varieties developed by the University of California, Davis from Viveros California, a distributor of these varieties in Spain.
In addition to the California study tour, ASAP PY4 activities marked a renewed focus on Azerbaijan’s berry sector. In fact, several Azerbaijani berry growers who participated in the California Study tour were inspired by a visit to the California Strawberry Commission to form an initiative group of ten growers and two agronomists to establish their own Azerbaijani Berry Growers Association. ASAP facilitated the association’s registration process, which is expected to be completed early in PY5. The association will mutually benefit growers as it will reduce barriers to international inputs supply and export initiatives.
ASAP’s agricultural assistance was extended beyond the support provided by the local agronomists and the Project’s Agribusiness Advisor. A short-term technical assistance (STTA) assignment in June 2018 targeted the berry sector. Professor Nebojsa Momirovic of the University of Belgrade spent seven days in Azerbaijan visiting berry nurseries to provide updated production and post-harvest techniques. Dr. Momirovic traveled to Jalilabad and Ganja, respectively, delivering trainings to local farmers on best practices in strawberry and raspberry production and visiting demo plots and beneficiary’s farms. Dr. Momirovic concluded that, to maximize raspberry and blueberry production, large quantities of a proper substrate are needed. In regard to strawberry production, the largest impediment is a well-designed and operated nursery. Dr. Momirovic deemed the Shamkir region to be the best equipped in terms of having the most developed infrastructure and modern strawberry inputs supply suitable for increased strawberry production.
This year also marked a significant triumph in ASAP-supported advocacy efforts. With support from ASAP, the Azerbaijan Hazelnut Producers and Exporters Association (AHPEA) lobbied government bodies to improve the business climate and reduce trade barriers in the hazelnut sector. AHPEA held meetings with the Ministry of Tax and Food Safety Agency to discuss industry concerns. Such advocacy resulted in exporters receiving a 3% government rebate on annual exports. There were several other major lobbying achievements as well that are outlined in this report.
As a result of its participation in last year’s Fruit Logistica trade fair in Berlin, Germany, an ASAP beneficiary attended a B2B meeting in Vienna in November 2017 with a European produce buyer, Greenyard. This led the Ministry of Agriculture to organize participation of several large companies at Fruit Logistica in February, including Mars FK LLC and the Azerbaijan Pomegranate Producers and Exporters Association (APPEA). To further expand on linkages established during last year’s Fruit Logistica exhibition, Rashad Shirinov was approached by a 2 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
manager from Al-Raya’s, a Saudi supermarket chain, to initiate a potential pomegranate export agreement.
Continued assistance on food quality and safety improvement also generated significant impacts during the year. Mars FK LLC obtained GlobalG.A.P. certification, making it the first pomegranate producer in Azerbaijan to have fully implemented this standard. ASAP support to Mars FK in this endeavor included training, pre-audits, and support in developing the required documentation. Similarly, following on from trainings on GlobalG.A.P. and HACCP last year, Bine Agro renewed its international certification in PY4. This allowed the beneficiary to reach new international markets in the Baltic countries and the United Arab Emirates. AS Group obtained GlobalG.A.P. in January and ISO 22000 in certification in February. ASAP also worked closely with Shamil Jahangirov, Rashard Shirinov, and Buta Group on adopting requirements for international food quality and safety certification.
Summary of Achievements in Quarters 1-4
Result 1: Improved Quality Result 2: Good Finance, Administration, and Quantity of Goods Agricultural Practices & Deliverables Produced Implemented • 9 ERCs for demo plot and TTF • 4,743 short-term agricultural sector • Group training in the five activities - applications productivity trainings and TAs were ASAP Target Value Chains approved; provided; resulted in 3,258 instances • 12 research reports developed • 14 beneficiaries from the hazelnut of farmers trained on as per USAID’s request value chain participated in Oregon various seasonally relevant issues by the end of the study trip; • 10 kiwi and feijoa growers year. participated in study trip to Georgia; • 12 Azerbaijani agribusiness entrepreneurs, including four of the country’s leading strawberry growers, visited California for a study tour; • Mars FK successfully passed its annual GlobalG.A.P. control audit; • AS Group obtained GlobalG.A.P. and ISO 22000 certificates; • Hazelnut Processor Atababa LLC Gakh and KhanEl, received ISO 22000 • Multi-day, on-farm trainings and Technical Assistance (TA) on good agricultural practices and application of knowledge on intensive farming resulted in improved management of present farms and establishment of
3 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
new intensive orchards on 1,676 hectares; • $2,118,053 in client investment in improved technologies facilitated through ASAP assistance; • 4 berry Value Chain beneficiaries purchased strawberry seedlings from Viveros California, a provider of American varieties; • Azer Amiraslanov established a distributorship for U.S. company Grow More thanks to ASAP assistance. • 5 US business linkages were facilitated; • 2 new service providers were hired and trained by ASAP to serve farmers in Azerbaijan’s Southern region. • In collaboration with AgroCenter, ASAP started to provide field-based trainings for students from Azerbaijan State Agricultural University in Ganja
Detailed ASAP Progress by Activity and Component
Operations
Host Country National Staffing:
During PY4, ASAP made several significant staffing changes. In April, following the earlier departure of the project’s Manager of Finance and Administration Ms. Nurana Aliyeva, ASAP requested and received USAID approval for the promotion of Accountant/Office Manager Ms. Aygun Eyvazova to the Manager of Finance and Administration position. After receiving USAID approval, ASAP also hired Ms. Gulmira Gojayeva to the newly created position of Assistant Procurement Specialist. In addition, ASAP drafted and issued an announcement that it was seeking candidates to fill the newly vacated Accountant/Office Manager position. After reviewing applications and interviewing the top candidates, ASAP requested USAID rate approval for its proposed candidate. On July 5th, USAID provided rate approval for Ms. Amina Mammadova for the position. Ms. Mammadova assumed her duties on July 9th.
In addition, in December 2017, ASAP engaged two new field-based agronomists to provide technical assistance and training in the project’s southern region. Adalat Nehmetov, Director
4 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report of the Jalilabad Agribusiness Company, was engaged to serve strawberry growers in Jalilabad rayon, while Mobil Panjaliyev, Director of Janub Agribusiness Center, was engaged to serve kiwi and feijoa growers in Lenkaran and Astara regions. Both agronomists had experience delivering similar trainings through previous USAID-supported activities and each was engaged for up to seven days per month.
Finance (audit, budgets, taxes, etc.)
USAID Financial/Procurement Review: On January 19, 2018 CNFA’s submitted written responses to the findings and questions outlined in the Financial/Procurement Review Recommendations that USAID submitted to CNFA late in 2017.
Incremental Funding Request and Approval: In the PY5 ASAP Work Plan that it submitted to USAID on September 10, 2018, CNFA requested $100,000 in incremental funding to support a new International Short-Term Technical Assistance (STTA) Component as part of its U.S. Linkages activities. On September 12, 2018, USAID approved this proposal, which will allow ASAP to tap into resources from the U.S. Global Development Lab to facilitate the establishment of U.S. linkages and the reorientation of Azerbaijani exports away from Russia and toward the European Union, Gulf Countries, and other alternative markets. This incremental funding increased the total ASAP project budget to $11.6 million through September 17, 2019.
Items Contract Invoiced September Cumulative Contract Budget Prior to 2018 Cost to Funds PY1 September (projected) date (with Remaining to PY6 2018 September (with projections) December projections) WAGES SUB TOTAL 3,975,395 3,180,886 75,000 3,255,886 719,509 FRINGES SUB TOTAL 615,710 541,364 10,950 552,314 63,396 CONSULTANT FEES 502,145 389,195 7,300 396,495 105,650 TRAVEL, 652,848 500,507 7,600 508,107 144,741 TRANSPORT, PER DIEM EQUIPMENT AND 62,772 51,537 630 52,167 10,605 SUPPLIES COMMUNICATIONS 32,003 27,193 485 27,678 4,325 ALLOWANCES 642,346 516,903 13,840 530,743 111,603 REG. NAT. WK. SHOP 4,302 562.2 0 562 3,740 AND SEM. OTHER DIRECT 857,331 643,997 9,870 653,867 203,464 COSTS TECHNOLOGY 1,150,000 635,676 50,842 686,518 463,482 TRANSFER FUND
5 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
INDIRECT COST @ 2,519,541 1,963,637 42,302 2,005,939 513,602 33.66% FIXED FEE 485,607 385,224 8,231 393,455 92,152 TOTAL 11,500,000 8,836,681 227,050 9,063,731 2,436,269
Legal Registration
Although ASAP remained unregistered as of the drafting of this report, there were several notable registration developments during PY4. On October 18, 2017, USAID contacted ASAP regarding a meeting that the U.S. Deputy Chief of Mission had had not long before with the Deputy Minister of Agriculture of Azerbaijan, and during which the Embassy had reiterated the importance of legal registration of projects such as ASAP if the USG was to support agricultural development in Azerbaijan. The Deputy Minister indicated that he and the Minister would look into this and try to assist with registration. In order to provide the Ministry with the relevant background information, USAID requested that ASAP draft an overview summary of its registration efforts to date. ASAP submitted this information to USAID later the same day. By the end of the next quarter, however, CNFA had still not received any formal response, positive or negative, to this or any of its previous submissions over the then 45 elapsed months of the project.
In July 2018, however, ASAP was contacted by the Project Registration Department of the Ministry of Justice (MoJ) of Azerbaijan to request that ASAP resubmit the project registration package that had been most recently submitted in 2015. After revising the package, ASAP notarized the required documents and submitted the package to the MoJ on July 26th. In mid- August, Mr. Rahim Rahimov, the head of the Project Registration Department contacted the ASAP office in Baku several times to clarify several questions about ASAP’s design, activities, and implementation status. ASAP’s COP had several phone conversations with Mr. Rahimov, who invited the COP to his office for a meeting in person. As of the drafting of this report, it had been agreed that the USAID Mission Director Jaidev Singh would attend the meeting as well, schedule permitting, but the date for the meeting had not yet been set.
In addition, on August 30th the Embassy of Azerbaijan in Washington, DC contacted CNFA’s home office and invited the NGO’s staff to the embassy to discuss the project. On September 5th, Sahar Al-Rufai, CNFA’s Director of Programs, and Tina Pritt, its Awards and Compliance Manager, met at the Embassy with Sarkhan Ismayilov, Economic Officer, and Orkhan Zeynalov, Counselor. CNFA provided a briefing on the project, the value chains, and the types of support ASAP provides (training, capacity building, demo plots, international certifications, linkages through study tours to the U.S., and so on). According to the embassy representatives, they provided a good reference on CNFA after the first meeting back in 2014. They did not know why the registration did not come through. Mr. Zeynalov noted that he would like to connect CNFA to the U.S. Azerbaijan Chamber of Commerce (USACC) in the US, and subsequently made an introduction to the Chamber. Zeynalov also indicated his belief that CNFA’s work is in line with the new strategy of the Government of Azerbaijan, which is trying to diversify its 6 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report economy with a particular emphasis on agriculture in its strategic plan. He noted that he had close connections with the new Minister of Agriculture and promised to provide very good feedback to the Ministry of Foreign Affairs about CNFA.
Financial and Expenditure Summary
USAID Contract No.: AID-112-C-14-00001 Date of Issuance: 6/17/2014 Total Potential Amount: $11,600,000 Amount Obligated to date: $11,600,000 Total Project Funds Expended through 9/30/18: $9,063,731
Project Budget Summary and Spending through September 30, 2018
Spending Project Total Budget through Balance 9/30/2018 Salaries and Wages $3,975,395 $3,255,886 $719,509 Fringe Benefits $615,710 $552,314 $63,396 Consultants $502,145 $396,495 $105,650 Travel, Transportation, Per Diem $652,848 $508,107 $144,741 Equipment and supplies $62,772 $52,167 $10,605 Communications $32,003 $27,678 $4,325 Allowance $642,346 $530,743 $111,603 Workshops and seminars $4,302 $562 $3,740 Other Direct Cost $857,331 $653,867 $203,464 Indirect Cost $2,519,541 $2,005,939 $513,602 Fixed fee $485,607 $393,455 $92,152 Total $10,350,000 $8,377,213 $1,972,787 Grants $1,150,000 $686,518 $463,482 TOTAL $11,600,000 $9,063,731 $2,436,269
Programs
Result 1: Improved Quality and Quantity of Goods Produced
Hazelnut Value Chain
In the fourth year of implementation, ASAP provided significant assistance to hazelnut value chain project beneficiaries in the application of relevant agricultural practices at the beneficiary
7 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report demonstration plots, marketing to identify new export opportunities, improving the quality of processed goods through the introduction of advanced equipment and food safety standards, as well as Preventing Violent Extremism (PVE) and Countering Kremlin Influence (CKI). ASAP worked to improve collaboration among value chain stakeholders with the ultimate goal of improving their standing in the international marketplace and initiated a new round of demonstration plot activities so that the project now covers a much broader geographic area, assisting clients across the country's entire northwest and northern regions. There has been significant progress in processing facilities, most notably in refurbishing their operations in preparation to meet international food safety standards such as ISO 22000 and HACCP. PY4 accomplishments in the hazelnut value chain include: • Increasing the number of demo plots and implementing good agricultural practice- related activities at the 18 beneficiary orchards; • Providing over 1,270 participants in 7 regions of Azerbaijan with agricultural sector productivity training; • Improved technologies or management practices were implemented on over 2,000 hectares of land; • Refurbishment and equipping of the Azerbaijan Hazelnut Processors and Exporters Association (AHPEA) training center in Zagatala and launching of formal grower group trainings at the center; • Supporting a TTF project that supplied hazelnut roasting equipment to Jaarchi Hajiyev’s hazelnut processing facility; • Facilitation of a study tour of 15 Azerbaijani processors, exporters and growers to the U.S. to expose participants to modern agricultural practices and help them establish new trade linkages; • Identification of PVE-affected communities in the north and the northwest and initiation of irrigation and fruit drying projects together with the USAID SEDA project; and • Developing collaboration with AHPEA and drafting a joint plan addressing grower training and servicing large hazelnut plantations in the northwest region through the proposed establishment of a logistics service and agricultural machinery center.
• Demonstration Plots
During PY4, ASAP demo plot beneficiaries made various investments in their orchards to eliminate weeds, engage in harvesting, and apply GAP practices. ASAP provided training in conducting these practices, but the beneficiaries themselves hired workers to complete these tasks. One of the major reasons for high yields was application of the ASAP-taught practices by beneficiaries. Due to the timely application of these practices, ASAP beneficiaries increased ASAP agronomist scouting demo plot in Khachmaz 8 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report their yields to as much as double those that were achieved in previous years, with an average increase of 142% in the northwest and northern regions. Compared with the 2016 harvest, 2018 production by some ASAP demo hazelnut demo plots yielded in some cases five times as much thanks to project assistance, with an average increase of 261%. In addition to general good practices applied at the demo plots, such high productivity is due to irrigation projects implemented in several beneficiary orchards. Of all of Azerbaijan’s agricultural crops, hazelnuts are the only one that is being exported to as many as 25 different countries. The table below shows increases in yields of ASAP hazelnut demo plots compared to the harvests of the previous two years.
• Group Training Provision and Training Capacity Building
ASAP completed development of a comprehensive hazelnut manual and printed 650 copies. ASAP handed over the copies to its local agronomist in the Northwest and to the agronomist in the North. During the year, ASAP held over 110 formal group grower trainings, covering seven rayons and over 2,000 hectares of orchards. During the past year, the number of trainees reached 1,170 hazelnut growers, which exceeds ASAP’s annual training plan for the hazelnut value chain by almost 25%.
The Project has now provided technical assistance and training at some 18 demo plots in two major hazelnut-growing districts, covering seven regions and tens of villages and communities. Grower trainings and TA sessions are held in the AHPEA training room as well as in the field, i.e., beneficiary demo plots, local community halls, teahouses and farmers’ homes. Training topics addressed included deep Agricultural training for ASAU students at the pruning, winter soil fertility ASAP Hazelnut Demo Plot in Gabala measures, rodent and pest control, spraying the leaves with micro-elements, orchard planting, nursery management, irrigation, green pruning, harvesting and post-harvest handling.
Besides rural farmers, ASAP also extended its training program to students of agronomy. ASAP facilitated a training for students of Azerbaijan State Agricultural University (ASAU) students and selected faculty. ASAP’s hazelnut demonstration plot in Mirzabayli, Gabala was selected to 9 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report host the training. This six-hectare orchard where the Project has been working for the past two years has made significant progress in revitalizing the orchard and increasing its productivity, including installing a drip irrigation system. Two busses took over 40 third-year students and two agronomy professors from Ganja to Gabala. ASAP local agronomist Ziyaveddin Aliyev delivered a presentation followed by a Q&A session during scouting in the orchard rows. Students showed keen interest in the discussion and asked many questions.
• Technology Transfer Fund Activities
In order to facilitate adding more value to exported hazelnut kernels, ASAP supported beneficiary Jaarchi Hajiyev to procure and install a hazelnut roasting line. The equipment, which was procured through an ASAP TTF, was delivered Jaarchi Hajiyev’s hazelnut roasting line (left) and a vacuum packing machine (right) to the beneficiary in May 2018. While the roasting line cost was $55,000, the beneficiary paid $46,000 to complete the line and installation. As a part of his cost-share contribution, Hajiyev purchased several parts of the line, such as elevators, feed bunkers, a vacuum packaging machine, trays and channeling on a new gas line to the facility. Overall, Mr. Hajiyev invested over $120,000 in his processing facility. Although the roasting line will be operational in November 2018, the beneficiary has already conducted several trials and is confident of the quality of the roasted kernels. According to his market research, Hajiyev will be able to charge a markup of $0.5-1 per kg of product compared to the price for unroasted kernels.
Based on the PY4 Work Plan, ASAP also initiated the establishment of a hazelnut nursery project. ASAP researched potential locations for nurseries in the Northwestern and Northern regions. It identified potential locations in Zagatala, Gakh, and Khachmaz regions and proposed them for selection. All three locations meet ASAP’s criteria for demo plot selection: the locations are near highways, have water available for channel irrigation, Potential nursery location by the highway in Zagatala the soil supports the growth of hazelnut saplings, and the beneficiaries are interested and willing to cost-share. ASAP’s investments will provide drip irrigation systems and ongoing technical assistance, while the recipients are expected to provide the plant material (hazelnut saplings), fencing (to keep away animals), one hectare of land, all necessary inputs (fertilizers, pesticides, chemical microelements and 10 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report herbicides), and the necessary machinery and labor to perform all agricultural practices over the lifetime of the nursery. Pending USAID approval, the projects will be completed in PY5.
• Association Development and Stakeholder Collaboration
As previously reported, ASAP has assisted Azerbaijani hazelnut processors extensively through capacity building and training in management of the Association’s relationships. In 2016, hazelnut processors achieved formal registration. In the first quarter, ASAP assisted AHPEA to outline four key areas of concentration in 2018: 1) lobbying for an improved business climate; 2) holding mass grower training events jointly with ASAP; 3) establishing an extension services provider group; and 4) creating linkages with ASAU and investing in research and development, as well as in educating future horticultural agronomists. Despite some temporary difficulties that the association encountered, such as late payments of AHPEA’s annual planning meeting membership dues by some members, and various other administrative challenges, AHPEA reached many of the goals set for the current year. Together with ASAP, AHPEA trained over 500 growers in the association’s training room and successfully lobbied with several government bodies. In 2018, AHPEA had meetings with the Ministry of Tax and newly formed Food Safety Agency to discuss industry concerns. The Association’s advocacy work allowed AHPEA to reach significant achievements, which led to exporters to receive a 3% government rebate on their annual exports in recognition of the foreign currency that they are attracting into Azerbaijan. Following a meeting with Food Safety Agency, AHPEA reached a principal agreement with the Agency to conduct mutual training sessions to the growers concerning better post-harvest handling practices which will result in the improved quality of hazelnuts both exported and sold domestically. The Azerbaijani government established a laboratory at the Customs Station in Zagatala, which helped reduce the customs procedures for the export of one truck of hazelnuts from Azerbaijan from 5-7 days to 1-3 days (subsequently this function was transferred to the newly established Food Safety Agency). Finally, AHPEA was successful in its efforts to lobby for improved access by hazelnut exporters to the foreign currency that they generate from their foreign sales. (It had previously been restricted.)
• U.S. Linkages Support and Marketing Assistance
To establish U.S. linkages, ASAP met with the owner and Director of Azagro Taxil, Mr. Etibar Karimov. As previously reported, Az Agro Taxil is a group of agricultural input and machinery companies including Agromarket, which is a distributor for American firms Valley Irrigation, DuPont Pioneer Seeds, and other international companies. ASAP discussed the possibility of Azagro Taxil submitting a bid for the ASAP procurement to supply AHPEA with U.S. machinery and other equipment for a logistics center. Following ASAP’s recommendation, Azagro Taxil, 11 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report contacted the Ukraine office of the world’s biggest tractor manufacturer, Massey Ferguson, to ask about opportunities to sign a distributorship agreement. Massey Ferguson replied that they would consider this opportunity if Azagro Taxil makes an initial purchase of at least two tractors to begin with. ASAP will Potential partnership with Massey Ferguson continue supporting its new beneficiary to pursue this potential deal.
• Oregon Hazelnut Study Tour
ASAP organized and facilitated a hazelnut study tour for a group of Azerbaijani producers and exporters to the Willamette Valley region in the U.S. state of Oregon from November 4-11, 2017. Tour participants included various Azerbaijani hazelnut sector stakeholders, including producers, processors, exporters, traders, input and machinery suppliers, agronomists and representatives of two of the country’s largest agricultural players, PMD and Agrarco. In total, nine beneficiaries took part. ASAP was represented by three staff members, Hazelnut processors visit a machinery as well as two local agronomist consultants. The center in Portland, Oregon group visited hazelnut processing companies, several hazelnut orchards, nurseries and in-vitro laboratories, the research and development and testing laboratory premises at Oregon State University, hazelnut industry associations, as well as several U.S. machinery/equipment producers and vendors. Participating growers were particularly interested in learning about densely-planted intensive hazelnut orchards and the mono-trunk planting schemes that can increase yields by a factor of two or more. Currently, Azerbaijani orchards yield three times less than production in the intensively planted and managed orchards in Oregon. Exposing Azerbaijani processors to American manufacturers provided both parties with an opportunity to source specific equipment for immediate needs, as well as to discuss potential partnerships for distribution in Azerbaijan.
Orchard Fruit Value Chain
During PY4, ASAP provided 527 Orchard Value Chain beneficiaries with group trainings, 26 with individual technical assistance, including seven agribusiness companies and 19 farmers, and continued to oversee the maintenance of 14 demonstration plots. About 70% of ASAP’s farmer trainees from this VC are from PVE-vulnerable communities. ASAP provided technical assistance to growers in a wide variety of areas, including winter pruning, green pruning, fertilization, irrigation and other agronomic issues. Demos selected and supported by the 12 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report project included an orchard in Gusar with apples, cherries, nectarines, plums, and table grapes; a fruit nursery and apples, pears, cherries, plums, nectarines in Guba; and an operation in Khachmaz with apples, cherries, and plums.
One particularly noteworthy outcome of project efforts during the year was the establishment of a tissue culture laboratory by beneficiary ORELAY LLC in Agdash. As a result of the participation of Orkhan Adilov, its Executive Director, in an ASAP-supported study tour to Italy in 2016, which included a visit to an in-vitro laboratory, ORELAY decided to invest one million AZN in a new laboratory to produce virus-free stone fruit rootstocks through micro- propagation. The lab became operational in 2018, making it Azerbaijan’s first tissue culture laboratory. Previously, Azerbaijani growers had only been able to import ready-made saplings and rootstocks from overseas, as there was no tissue culture laboratory producing virus-free planting materials.
Also during PY4, in collaboration with the USAID REG Project, ASAP facilitated the participation of 12 ASAP beneficiaries in a study tour to California. As a result, the participants increased their knowledge of advanced horticultural technologies and carried out preliminary negotiations with potential dealers to import some new high-yield fruit and berry varieties, and agricultural inputs such as pesticides and agricultural equipment. Visits to nurseries that use state-of-the-art methods and technologies enabled the participants to learn about various aspects of the development of quality rootstock including tree training, budding fumigation, pest controls, spraying, grading, and harvesting.
In addition to technical assistance, the ASAP project provided matching funding to help beneficiaries upgrade their infrastructure. For example, with ASAP support Shamil Jahangirov established a 500-MT cold storage, which then enabled over 200 local farmers to store their produce and extend its shelf life. ASAP matching financial support enabled Shohrat Farzaliyev to install a drip irrigation system in his 21-hectare intensive and semi-intensive orchard in Gusar. In Guba, ASAP matching support supported the establishment of a training center and provided it with furniture and training equipment.
ASAP also supported the region’s farmers to access more high-quality consultancies and technical trainings. In cooperation with GIZ (the German donor and technical assistance provider), AgroCenter, and the Guba Farmer House, 10 trainings were conducted on orchard management for farmers, representatives of a scientific research institute, and other interested professionals. Among the participants were youth interested in the field and eager to start their own businesses in this sector.
Based on ASAP’s recommendations, over 120 hectares of new intensive and semi-intensive orchards were established in the Guba-Khachmaz area. At present, a cold storage facility with a capacity of 600 MT is under construction with ASAP TTF matching support as well. This will create an opportunity for hundreds of neighboring farmers to store and sell their products, while directly creating jobs for five permanent and 50 seasonal workers.
13 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
In previous years, in order to help establish new marketing linkages, ASAP facilitated beneficiary participation and exhibiting at agricultural trade fairs in Dubai, Germany, and France. As a result, in PY4 beneficiary D. Fruits established new trade contacts, resulting in sales of over 1,000 tons of fruit from last year’s harvest. This year, two tons of fruit (one MT each of cherries and apricots) were exported to London on a trial basis. Buyers from Dubai, Saudi Arabia, Iraq, and Malaysia all signed agreements and purchased more than 1,500 tons of produce, expanding D. Fruits’ sales of this year’s harvest.
• Industry support service provision
Intensive and semi-intensive horticulture is a nascent agricultural activity in Azerbaijan. With that in mind, ASAP continued to provide technical assistance to local farmers during PY4 in cultivating and expanding intensive and semi-intensive orchards, implementing IPM and GAP practices, and establishing new orchards. The total size of the farms that have been established through ASAP technical support is now 127 hectares. Providing TA to Musa Huseynov on banding branches in his intensive apple orchard Some of the stone fruit and pomegranate farms were attacked by a number of pests and weeds which resulted in reduced yield and fruit quality. The only option for the farmers was to reach out to ASAP specialists to learn how to combat and control the pests. Based on ASAP recommendations, the farmers Eldar Zalov, Ceyhun Abdullayev, and Zakir Karimov successfully controlled weeds and diseases in their apple and pear orchards. With assistance from ASAP, some farmers increased the yield of their intensive apple orchard by 65-70 MT and harvested hundreds of Provision of TA on green pruning of young tons of apples this year. cherry trees in Mr. Zalov’s orchard in Guba
Packaging and storage are one of the main problems that the businesses have been facing for a long time. With ASAP support, the owner of a cold storage, Azar Haktari, established a plastic box and cardboard production line in order to meet the growing need for boxes in the region. At present, his production has risen from 30,000 to more than 100,000 boxes per month. In order to minimize the Azar Haktari’s new cardboard box- risk of electricity cuts, the company purchased and making equipment in Zardabi, Guba installed a generator. In total, the farmer invested $514,500 in implementation of these activities. The entrepreneur also provides the storage of 14 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report stone fruits and pome fruits in his cooling chambers as a service to local farmers. More than 100 farmers per year use his pre-cooling and cooling facilities to facilitate exports.
During PY4, farmer Gulahmad Mammadov requested technical assistance on the establishment of a blueberry production demo plot in Hasanga, Guba. The ASAP Agribusiness Advisor visited the farm to evaluate the potential success of such a demonstration. The soil pH was measured on the site as 7.8, but blueberries require a soil pH range of 4.0-5.5, and so the farmer was advised not to pursue this activity.
For its part, beneficiary ORELAY LLC expanded its fruit dehydration and dried fruit operations thanks to the water purification system provided by ASAP. Orelay LLC has dried a total of 300 MT of fruits (persimmons, grapes, cherries, cornelian cherries, plums, and sour plums) this past year. Since December 2017, the company has been packaging dried persimmons in five to ten-kilogram- capacity bags for export to Ukraine. Owner, Namik Adilov, plans to install ten additional fruit dryers in order to increase the quantity and quality of his products (construction work is in progress) and to pursue food safety certification with ASAP Gulahmad Ahmadov’s farm in Gusar: assistance. Measuring soil pH on the farm
In addition to his part-time work as the ASAP Orchard VC Agronomist, Mr. Heybatov imports various rootstocks designed for intensive horticulture to support the growth of small and medium fruit growers in Azerbaijan. ASAP has established linkages among a large number of farmers who wished to pursue intensive and semi- intensive production, which has led to an increased demand for saplings for new, modern orchards. To meet the need, the Orchard VC Agronomist has doubled production by planting an additional 98,000 Ali Bagirov’s farm: Agronomic TA on irrigation and soil fertility in the farmer’s apple orchard in Guba virus-free rootstocks, which will benefit many farmers next season. Small- and medium-sized farmers who have limited access to intensive and semi-intensive fruit saplings also benefit from his nursery. ASAP’s provision of air blast and herbicide sprayers for Heybatov have helped him increase his own production and thus supply more buyers, as well as to provide spraying services to neighboring growers. ASAP also furnished Mr. Heybatov’s training facility with a projector, printer, furniture, and other equipment to facilitate the provision of group training to farmers in the future.
Persimmon growers in Goychay and Aghdash regions increased the quality of produced products by over 60% and the quantity also increased by 70% with ASAP support. Mr. Anar Musayev from Goychay was able to export 90% of his produced 60 tons of persimmons from his three hectares of production, versus production of only 20 tons (only 40-50% suitable for 15 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report export) when ASAP started to work with him in 2015. Mr. Elbrus Jabrayilov from the Aghdash region became a very important persimmon supplier for fresh market traders to Russia because of his adoption of ASAP recommendations. His total production from six hectares of persimmons was 150 tons, of which 140 tons was purchased by a single Russian trader.
• Association Development and Stakeholder Collaboration
This year, ASAP specialists met with Mr. Bashir Guliyev and Mr. Fuad Shahvaladov, Chairman and Executive Director, respectively, of Azerbaijan Fruit and Vegetable Producers and Exporters Association (AFVPEA), to discuss the possibility of building cooperation between AFVPEA and ASAP. Unfortunately, due to ASAP’s lack of legal registration in Azerbaijan, AFVPEA was reluctant to work with ASAP without receiving explicit permission to do so from the Government of Azerbaijan. As a result, after discussions with USAID, it was agreed that ASAP would discontinue its efforts to try to assist the association prior to achieving legal registration.
ASAP also met with the Head of the Azerbaijan Persimmon Growers and Exporters Association (APGEA), Mr. Gadir Yusifov, at its office in Agrovest’s distribution center. While around 50 pomegranate growers from the central regions are theoretically interested in joining the association, ASAP’s findings suggest that the association is not really an independent member- based organization that will pursue the interests of its constituent agribusinesses. Rather it seems like a top-down, government-initiated group. Indeed, its head was appointed to his position by the Ministry of Economic Development. However, if it subsequently learns that the association is being managed for the benefit of industry stakeholders, ASAP may reconsider its decision to refrain from providing assistance to the group.
• Group Training Provision and Training Capacity Building
During PY4, ASAP provided 527 Orchard Value Chain beneficiaries with group trainings, 26 with individual technical assistance, including seven agribusiness companies and 19 farmers, and continued to oversee the maintenance of 14 demonstration plots. About 70% of ASAP’s farmer trainees from this VC are from PVE-vulnerable communities. ASAP provided technical assistance to growers in a wide variety of areas, including winter pruning, green pruning, fertilization, irrigation and Guba Farmer House: ASAP Specialist conducting a presentation on bacterial canker control other agronomic issues. Demos selected and supported by the project included an orchard in Gusar with apples, cherries, nectarines, plums, and table grapes; a fruit nursery and apples, pears, cherries, plums, nectarines in Guba; and an operation in Khachmaz with apples, cherries, and plums.
16 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
In March 2018, three ASAP specialists and 11 Orchard VC beneficiaries from the Guba- Khachmaz region (two specialists from DAD, five specialists from AgrarCo, two agronomists from Ibrahim Sheydayev’s farm, and two agronomists from Eldar Zalov’s farm) attended a four- day training in Integrated Pest Management (IPM) in Stone Fruit Orchards, which was organized by ASAP and GIZ. The training was conducted by scientists from the Azerbaijan Plant Protection Institute. On the training’s second day, ASAP specialist, Jabbar Heybatov, conducted a presentation on bacterial canker control to educate the trainees on identifying symptoms of the disease, and controlling it at the right time. Of 25 total trainees, 16 were ASAP beneficiaries invited by the Project.
ASAP also provided several group trainings on various farms on chemical and mechanical thinning of fruit trees, as well as controlling apple scab and powdery mildew. ASAP also provided TA on the implementation of Integrated Pest Management (IPM) practices and Good Agricultural Practices (GAP), such as irrigation management, green pruning, and soil fertility and conducted two trainings. One of them was on “Application of proper irrigation rates and practices in orchards” and was conducted in Shohrat Farzaliyev’s fruit orchards in Hasangala village, Gusar region. The Farm group training at Jabbar Heybatov’s training and consulting center second training, on “Training trees and bending and tying lateral branches to the trellis wire in intensive orchards,” was held in Guba Training Center.
• Demonstration Plots
During the year, ASAP oversaw a total of 14 demonstration plots in intensive and semi-intensive apple, pear, plum and sour plum orchards in the Guba, Gusar and Khachmaz rayons. The plots were designed to demonstrate and introduce new production technologies, agricultural tools and equipment. ASAP supported him in applying sprinkler Ayaz Alakbarov’s sprinkler irrigation systems, irrigation depot, temporary storage for fertilizers and pesticides in Gusar irrigation on his three- hectare old cherry orchard to meet the farm’s demand for irrigation water. With ASAP’s technical assistance, the farmer spent AZN 13,800 to build a shelter for irrigation pump units and a temporary facility for storage of fertilizers and pesticides. ASAP successfully linked the farmer to DeLaval (Switzerland) and Beta Fidan (Turkey) to purchase stone fruit saplings in order to establish an 11-hectare orchard, and provided recommendations on preparing land,
17 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report identifying pollinators, determining orchard design, and conducting proper planting techniques.
• Technology Transfer Fund Activities
- Shamil Jahangirov: Through USAID TTF funding, the farmer nearly doubled the capacity of his storage facility to store both his own produce and produce purchased from the other growers. He is also providing storage services to nearby farmers. For example, in August he started using the USAID-assisted storage facility and since then has stored 500 MT of persimmons from over 200 farmers, which will allow them to sell their produce later when prices are higher. - Azar Haktari: With ASAP assistance, the farmer started producing plastic boxes that are specially designed to package apples, pears, cherries, and plums. The farmer has increased daily production from 3,000 boxes to 6,000 (up to 16,000 during the peak season), as the USAID-provided molds enabled him to produce the best boxes of their kind in Azerbaijan. These boxes are in high demand among growers. As a result, Haktari has increased his monthly revenue from AZN 58,500 to AZN 97,500. - Eldar Zalov’s TTF activity: With matching funding from ASAP’s Technology Transfer Fund, the Eldar Zalov’s new Cold storage in Guba farmer constructed a 660-MT-capacity cold storage. The storage facility began operations in September 2018, and will directly and indirectly benefit hundreds of local farmers. - Shohrat Farzaliyev: Through matching funding from the ASAP Technology Transfer Fund, drip irrigation was installed in the farmer’s 21.5- hectare orchard. In July, after a month of operation, the system was tested with ASAP Installation of drip irrigation was completed in Shohrat Farzaliyev’s intensive and semi representatives, the vendor, and the beneficiary intensive orchards in Gusar in attendance and handover was completed.
• Business Linkages:
- ASAP has linked Shohrat Farzaliyev and Eldar Zalov to drip irrigation suppliers (Netafim LLC, Beta Irrigation & Nursery LLC, Aztexnika LLC, AIK LLC, Damla Suvarma LLC, Irrigator-Ukraine LLC) and cold storage suppliers (Bay-so LLC, Atec Global LLC, Titan LLC). - ASAP linked Shohrat Farzaliyev to Turkish fruit sapling supplier, Beta Fidan, and he bought 15,800 saplings to establish an orchard.
18 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
- ASAP put Mr. Ayaz Alakbarov in contact with Kolorit-A, Bay-So, and Titan (Fayton) to further research options for establishing a cold storage facility. ASAP put Mr. Ayaz Alakbarov in contact with Guldem Endustriyel Sogutma A.S., a Turkish cold storage manufacturer that also installs cooling systems, to further research options for establishing a cold storage facility. - Ali Baghirov’s farm: ASAP linked the farmer to irrigation expert Hussein Abdulsalamov to establish an irrigation system in his new orchard. - Ali Baghirov’s farm: ASAP linked the farmer to Aztexnika and Agrofan to purchase an air-blast sprayer and other agricultural equipment for his new orchard. - Orelay LLC: ASAP linked the company to local farmers to ensure propagation of higher quality pomegranate varieties in order to produce virus-free saplings in its tissue culture laboratory.
• Study Tours and Other Activities:
- Study Tour to Georgia: ASAP organized a study tour for ten Azeri kiwi and feijoa growers, including two staff members (1 full-time staff and 1 local agronomist consultant) to Georgia. Among the beneficiaries participating from Azerbaijan, nine were fresh fruit producers and one was a nursery producer. The trip program included visits to five facilities in three different locations: 1) Nergeta Ltd – Kiwi orchard; 2) Gemuani Ltd – Kiwi orchard and fruit-drying factory; 3) Akaki Olonti – a farmer with a feijoa orchard and nursery. Mr. Olonti is a Ph.D. who specializes in feijoa and kiwi propagation, and propagates feijoa by grafting, which prevents diseases and obtains good quality and yields. Azerbaijani farmers generally use generative multiplication (from seeds), but ASAP will advise and assist other farmers in adopting Olonti’s practices. - California Study Tour: ASAP facilitated the participation of 12 beneficiaries in a study tour to California from April 28 through May 12, 2018. The study tour was designed to impart knowledge of California’s agricultural practices for persimmons, pomegranates, stone fruits, pome fruits, strawberries and table grapes in the areas of horticultural methods, soil and water management, post-harvest physiology, cold chain management, and association development. The study tour acquainted the participants with advanced horticultural An ASAP beneficiary inspects virus-free saplings at Gold Nurseries in California technologies and facilitated preliminary negotiations with potential dealers to import into Azerbaijan several new high-yield fruit and berry varieties, and agricultural inputs such as pesticides and agricultural equipment. Visits to nurseries that use state-of-the-art methods and technologies enabled the participants to learn about various aspects of the development of quality rootstock, including tree training, budding fumigation, pest controls, spraying, 19 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
grading, and harvesting. The study tour also demonstrated networks of drip and sprinkler irrigation systems and taught them about the advantages of raised-bed planting equipped with sprinkler irrigation, which protects the collar of the trees against excessive amounts of irrigation water and ensures full coverage of the root system. During the tour, ASAP also arranged for one of its beneficiaries to meet with the CEO of Grow More Inc., an L.A.-based specialty fertilizer formulator, to carry out preliminary negotiations to establish a distributorship in Azerbaijan, Kazakhstan, Uzbekistan, and Georgia. The study tour also facilitated meetings that identified a potential demand for large Azerbaijani companies like DAD and Agrovilla to export their fruit, such as dried persimmons, to the U.S. market in the future. Other positive results from the trip included several innovations being introduced to the group to increase yields, reduce cost and store fruit longer, such as: o Calibrating all cold storage thermometers. A difference of only 2 degrees Celsius can double the useful storage life of persimmons; o Reducing phosphorous fertilizer applications of fruit trees; o Improving strawberry production produces much larger berries; and o Work of industry bodies such as the Strawberry Commission, which described its role in increasing the production and demand for California strawberries.
- Guba Apple Festival: On October 7th, the annual Apple Festival took place in Guba. Among ASAP’s beneficiaries, D. Fruits LLC (DAD) and Gilan displayed their produce at the festival. - Tea, Rice and Citrus Festival took place in Lenkaran on December 19, 2017. The event was organized by the Executive Committee of Lenkaran region. More than 60 companies from Astara, Lenkaran, and Masalli regions from the tea, rice, and citrus sectors were invited to the festival. Every company had their own booths or places to demonstrate and display their various products. Companies such as Dostluq Firm, Gilan Holding, Azersun Holding, Farda LLC and some big farmers from the region displayed their fresh feijoa, kiwi, lemon, orange, and other citrus products. They also displayed various processed citrus products. Many local attendees and visitors from neighboring regions toured the area and tasted exhibitors’ products. Visitors met with farmers and companies in attendance, obtained product samples and contact information, and will explore opportunities for collaboration.
Pomegranate Value Chain
In PY4, ASAP focused on capacity building of pomegranate producers and service providers. In addition to conducting classroom and field-based group trainings for small and medium pomegranate producers, ASAP built the capacity of its local agronomist in the Pomegranate VC and assisted local training provider AgroCenter to educate additional selected trainees using ASAP demo plots in Goychay region. The project continued supporting agribusinesses in various aspects of cultivation, processing, and marketing of pomegranates. ASAP worked to improve the current growing practices through the development of demo plots and by
20 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report illustrating innovative cultivation practices. ASAP also continued providing technical assistance in pruning for mono-trunk management, mineral fertilization, pest and disease management, and post-harvest handling through its demo plots. Improved irrigation practices were one of the key activities highlighted by ASAP through its seven pomegranate VC demo plots.
In PY 4, ASAP started to work with seven new small, medium and large farmers. These farmers typically were introduced to ASAP through pomegranate producers whom the Project had previously assisted. Several existing beneficiaries made significant improvements in production and sales. Red Valley LLC, although already very successful prior to being linked with ASAP, was linked by the project to new potential buyers for its high-quality pomegranate saplings.
ASAP obtained very good results from the demo plots it assisted through training as well as through the provision of sprayers and rotary disc plows. This helped growers to save time and money by being able to more cheaply conduct these activities, improve spraying and plowing quality, and schedule these activities at a more convenient and advantageous time, as they were no longer dependent on the limited availability of outside equipment and/or equipment operators in order to conduct this work.
ASAP also assisted Israeli buyer NS Oils to conduct research on potential sources for importing pomegranate seeds from Azerbaijan. NS Oils met with several pomegranate processors and a confectionary factory in Ganja. The Israeli company also expressed interest in making a joint investment if any pomegranate processing companies start marketing pomegranate seeds.
• Industry support service provision
- Growtech/Turkey: With a recommendation from ASAP, beneficiaries Eyvaz Samedov and Mammad Alakbarov attended the Growtech Eurasia Fair in Istanbul with support from the Azerbaijan Entrepreneurs Confederation. As a result of the event, participants learned about fresh market demand and also built relationships with potential agricultural machinery spare parts suppliers. - NS Oils Ltd.: ASAP coordinated contacts between Israeli buyer NS Oils, and potential pomegranate seed suppliers from Azerbaijan, including Az-Granata LLC and Antim LLC. Although Az-Granata did not express any interest in processing and exporting its pomegranate seeds, Antim LLC is very interested. After discussing the required processing technology for the seeds with NS Oils, Antim decided to make such improvements. Since the required investment for a 500 kg/hour pomegranate seed drying line would be about $500,000, Antim will need some time to arrange the financing and plans to procure the line next year. In addition, Antim is currently focused on this year’s priority of improving its newly established pomegranate concentrate production line (which requires a chiller, grader, and osmosis water line). NS Oils also visited Azersheker OJSC in Ganja for the possible purchase of hazelnut fragments, as Azersheker OJSC has strong links with all hazelnut producers and processors in the Sheki-Zagatala region. NS Oils also visited its key Azerbaijani supplier, Aznar CJSC. During the meeting, NS Oils mentioned that the quality of 21 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
Aznar’s seeds is now of higher quality and better suited to meet NS Oils’ requirements, but that the prooxidant level is still too high due to Aznar’s use of infrared drying. The buyer recommended that Aznar buy a drum dryer as a replacement. - California Study Trip: Mabat LLC and Agrovilla LLC representatives visited California for a study tour where they participated in several theoretical and field training sessions along with field visits related to fruit and vegetable production and post- harvest handling. - ASAP-Israeli Embassy-USAID-AgroCenter meeting: ASAP organized a meeting with representatives from USAID, the Israeli Embassy, and AgroCenter, an Azerbaijani agricultural consultancy company. The meeting focused on the opportunity for ASAP and AgroCenter to apply to the Israeli MASHAV program to bring two Israeli pomegranate experts to Azerbaijan on an STTA basis in order to conduct trainings for professors and students from Azerbaijan State Agricultural University in Ganja, professional agronomists, and pomegranate growers, as well as to support the development of a pomegranate production. The newly arrived USAID Mission Director took part in the meeting as well. The main discussions covered pomegranate value chain issues and gaps in access to sources of knowledge, information, and services. The importance of capacity building of agricultural graduates and extension service providers was strongly noted. As agreed, ASAP and AgroCenter subsequently drafted and submitted a formal application requesting that MASHAV provide consultants on agronomic and business development of the pomegranate production sector after the harvest season, which takes place in October. - Rashad Shirinov: ASAP coordinated a visit by a manager from Al-Raya’s, a Saudi supermarket chain, to Rashad Shirinov’s farm regarding a potential agreement to export pomegranates. This linkage was facilitated by ASAP through a contact made at the Fruit Logistica exhibition in Berlin. At the same time, ASAP’s local agronomist was introduced to Mr. Shirinov for future cooperation (promotion of seedlings or a possible nursery TTF). The Al-Raya Al-Raya supermarket delegation representative was very impressed with the quality at Rashad Shirinov’s farm and taste of the grower’s pomegranates and promised to be back as soon as possible after discussions on packaging and pricing terms and conditions. During the meeting, the beneficiary also requested ASAP TTF support in acquiring a sorting line.
• Association Development and Stakeholder Collaboration
- 12th Goychay Pomegranate Festival: On November 3rd, the 12th annual Goychay
22 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
Pomegranate Festival took place on Goychay’s main street. It was launched with public speeches by the head of the Goychay ExCom and the Deputy Minister of Culture of Azerbaijan. Key pomegranate processors such as Aznar, Azersun, Goychay Sud, and Gilan exhibited their products. Part of the main street was dedicated to pomegranate sales by small and medium pomegranate producers. U.S. Ambassador Mr. Robert Cekuta also gave an interview to the press on the benefit of the event and on economic collaboration on agricultural activities, including the pomegranate VC. Unfortunately, although ASAP initially received a positive response from its application to the Goychay ExCom to exhibit through a USAID booth at the event, representatives of the Azerbaijani presidential administration later took over control of the festival, so USAID could not get a stand. ASAP beneficiary Eyvaz Samedov exhibited and sold his pomegranates at the event. For the first time, the Azerbaijan Pomegranate Producers and Exporters Association (APPEA) had a professionally designed booth and it demonstrated Mars FK LLC’s pomegranates under the “Originar” brand name. - ASAP and USAID representatives met with the Azerbaijani Pomegranate Producers and Exporters Association (APPEA) to discuss potential follow-on activities, including conducting joint trainings, opening a training center in Goychay or Kurdamir, and participating in ASAP’s horticultural study tour to California. One APPEA member participated in the study tour in April 2018. - Fruit Logistica Trade Fair: Last year, ASAP helped several fruit and vegetable companies to exhibit at the Fruit Logistica trade fair, which is held annually in Berlin, Germany. The event helped beneficiaries identify new buyers and contacts and enabled them to expand their sales channels. An ASAP beneficiary hazelnut exporter also benefited through ASAP and USAID’s REG project support for attendance at a B2B meeting in Vienna in November 2017 with Greenyard, a major European produce buyer. In recognition of this fact, the Ministry of Agriculture organized the participation of several large companies at Fruit Logistica this February. As ASAP did last year, Azerbaijani export promotion agency AzPromo assisted the country’s agribusinesses to exhibit through a national stand. These companies included Mars FK LLC and the Azerbaijan Pomegranate Producers and Exporters Association (APPEA). ASAP linked the USAID REG Agribusiness Consultant with Mr. Garashov, President of APPEA, and representatives of Mars Companies to discuss the target market strategy, capacity, and various leads. REG coordinated a meeting with Greenyard managers, who presented the latter’s supply system and expressed serious interest in sourcing 23 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
pomegranates from Azerbaijan. Mars is currently following up on the opportunity. REG also linked Mars to EU buyers, Delta Agrar and Euro Group Italy, who were interested in receiving offers from companies and asked USAID to facilitate further communication.
• Group Training Provision and Training Capacity Building
- Azerbaijan Pomegranate Production Manual: ASAP completed a revised draft of the Pomegranate Production Manual for Azerbaijan this month. The publication is the first effort to provide a guide for growing pomegranates in Azerbaijan under conditions that are unique to this country. The publication is being distributed to experts in pomegranate production who will submit recommendations, corrections and additional review in a typical peer review process. When completed, this will GlobalG.A.P. training at Red Valley LLC farm be a useful guide for small- and medium- sized producers as well as a text for AgroCenter’s instruction at the Agricultural University. The ASAP Agribusiness Advisor has attended lectures on pomegranate production at the university and discovered that there is no text available to growers or academics at this time. - AgroCenter: ASAP met with some of the cotton agronomy faculty at the Azerbaijan State Agricultural University in Ganja to discuss their needs. In the process of this conversation, ASAP was introduced to the local manager of a new initiative between Gilan Holding and GIZ. This program is focusing on developing field- level agronomists for the hazelnut, pomegranate, and cotton industries in Azerbaijan. The project has selected a group of students and is providing them Group training at Samedov farm in Goychay with additional training on these crops. ASAP subsequently met with the project’s national management in Baku, where ASAP offered to supply technical training documents for these crops for their use. Much of this has already been translated and more will follow. In December 2017, 44 students visited ASAP beneficiary Eyvaz Samadov’s pomegranate orchard for a field-based training. In addition to ASAP’s local agronomist, two ASAU professors also led training sessions on the basics of pomegranate cultivation.
24 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
- Red Valley LLC/Rashad Shirinov: ASAP conducted a group training for the key personnel of the farm on GlobalG.A.P. standards. As a follow-up, ASAP provided the farm with technical assistance to prepare Shirinov’s operations for meeting the required standards during the audit process. Previously, ASAP linked Shirinov to several potential buyers from the EU and Gulf countries, including Italy, Oman, Poland, and the UAE. Most of them, particularly those from the EU, required international certification for exporting pomegranates. Shirinov requested the training for his operation after learning about Mars FK’s successful achievement of GlobalG.A.P. certification, which was facilitated through ASAP support. - Topics of group trainings: ASAP conducted group trainings to both pomegranate VC farmers and persimmon fruit growers on the following topics which covered year-round cultivation and post-harvest practices: ✓ Orchard restoration, new orchard ASAP LA conducts training on IPM planting; pruning and shaping, importance of the application of efficient tools and equipment in orchard pruning, treatment after pruning, green pruning; ✓ Fertilization, application timing methods and quantity (depended on age and planting scheme) of mineral and organic fertilizers; ✓ IPM, pest and disease management, share PERSUAP, label reading importance and application methods; ✓ Irrigation, fluid, drip and sprinkling methods. Timing and quantity calculation; ✓ Weed control, mechanical and chemical control, application methods; {Pest management TA at Samadov farm ✓ Post-harvest handling.
In all, over 500 pomegranate and persimmon growers took part in ASAP group trainings during PY4.
• Demonstration Plots
Pomegranate producers in Azerbaijan still face challenges maintaining quality and quantity standards for the international fresh market. To solve this challenge, ASAP continues the provision of technical assistance to pomegranate demo plots in all aspects of cultivation practices. In parallel to this, ASAP continued introduction of innovative methods to be utilized during the cultivation process, and promoted ways of achieving international market standards.
25 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
Correct input supply (saplings), post-harvest handling methods were key parts of the technical assistance provided by ASAP during PY4. Selected demo plots shared their learnings with the other farmers and even traders. With ASAP technical assistance and thanks to drip irrigation application through a TTF project, Eyvaz Samadov was able to solve root rot disease problem on his farm. As a result, today, the production is expected to be over 100 tons of exportable pomegranates (to the Russian and Ukrainian markets) from his 40-hectare orchard. A number of neighboring pomegranate Mars FK LLC’s new pomegranate growers visited Samadov to gain insight and practical harvesting machine knowledge on pomegranate cultivation practices during the year. Aladdin Fermer LLC expects to harvest at least 200 tons of high-quality pomegranates from his farm this year. This could be double the amount of last year’s harvest, which itself was three times higher than that of the previous year. The farmer expressed strong interest in obtaining GlobalG.A.P. certification for access to EU fresh markets in the near future. Mars FK LLC started to use its new pomegranate harvesting machine from Israel, which it purchased thanks to linkages made during the ASAP study tour to Israel in 2015 and MASHAV consultants’ recommendations. The price of the machine was GlobalG.A.P. training at Red Valley LLC farm $100,000. Since successfully obtaining GlobalG.A.P. certification, the company is now better positioned to export its produce. The company also started designing a new 3,500-MT-capacity cold storage facility on the farm. Recently, Gilan’s management visited the farm to learn about cultivation practices, including irrigation and fertilization. Thanks to ASAP, Antim LLC yielded eight tons of pomegranates per hectare from its five-hectare demo plot. This is triple the yield compared to last year’s crop. In total, the farm produced 120 tons of pomegranates to store in its cold storage facility. In addition, it will use over 50 tons of low-quality produce in its own processing facility. Alamdar Gasimov reported a tremendous increase in production in the form of 150 tons of fresh pomegranates (0.80-1.20 AZN/kg) exported through local traders and 60-70 tons sold Aladdin farm’s pomegranate production to Aznar and Goychay Sud companies as a second- grade product. Thanks to ASAP, the farmer achieved high productivity on his three hectares of persimmons as well. Mabat LLC sold for 3 AZN apiece all 50,000 Wonderful-variety pomegranate saplings it grew from cuttings imported from Israel. These sales to Gilan and Mars LLC generated 150,000 AZN in revenue. The saplings were grown by incorporating knowledge gained during visits to nursery companies in Israel and Italy during ASAP-supported study tours. 26 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
• Technology Transfer Fund Activities
Mabat LLC: USAID approved Mabat LLC’s pomegranate nursery TTF, and the grant agreement between CNFA and the beneficiary was subsequently signed. ASAP visited the grantee to monitor the farm’s preparation for implementation of the nursery TTF project and all appears to be in order. Excavation of the water reservoir is ongoing, as are preparations of the drainage system and construction of an office/administrative building. In May 2018, after provision of a detailed report on rural lending by banks, the farmer expressed interest in obtaining credit for its operational costs. ASAP linked the farm to Pasha Bank management, where it received an initial positive response on a 100,000 AZN loan for operational costs with a low interest rate of 4-5%. Mabat LLC also started to develop an electrical line to 11 hectares of the farm. The farm’s long-term goal is to expand its holdings up to 50 hectares.
ASAP successfully completed a Technology Transfer Fund (TTF) project that equipped a 16- hectare pomegranate orchard of beneficiary Aladdin Fermer in Salyan with drip irrigation. In turn, the farmer invested over $30,000 to improve his 5,000-MT-capacity cold storage in accordance with ASAP recommendations that were provided by a STTA in 2015. Due to good prices at the farm gate in PY4, the farmer sold his pomegranates immediately after harvest and leased out his cold storage space to other fruit and vegetable growers.
Vegetable Value Chain
During 2018, the ASAP Vegetable VC achieved some successes, while also encountering some unexpected challenges. Among ASAP’s beneficiaries in Shamkir, where the majority of the VC’s clients are located, is a seedling nursery that was established through TTF support. During the year, this seedling nursery became well known locally and sold out of the 120,000 tomato seedlings it put up for sale, generating 54,000 AZN in increased revenue. More importantly, the operation became self-sufficient and is now no longer dependent on outside seedling suppliers. However, the producer’s vegetable sales to Russia were lower than in previous years due to an oversupply of tomato imports in the country. Nevertheless, the agribusiness moved forward with the business, investing around a million manats to upgrade its nine hectares of soil-based production to coco peat bag culture, a technological improvement that ASAP has repeatedly promoted throughout the life of the project. Hydroponic tomato production will relieve disease and pest pressures, thereby increasing productivity while reducing labor costs. During the year, ASAP continued monitoring the progress of a Demo Plot in Samukh that it had established to help a vegetable grower improve irrigation using a pivot system and travelling gun unit. As was projected, this approach provides more precise irrigation, which, together with ASAP-recommended cultivation improvements, increased the farmer’s yields by up to 20%. Improvements included proper seed selection and soil improvement, as well as pest and disease control through sound IPM techniques and post-harvest handling.
27 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
As a result of ASAP’s trainings on GlobalG.A.P. and HACCP for a client greenhouse in PY3, Bine Agro, a beneficiary with 40 hectares of greenhouse production, received GlobalG.A.P. certification. During PY4, with its renewed international certification, Bine Agro entered new international markets. The company’s sales to the Baltic countries were approximately 180,000 euros and sales to Dubai reached 300,000 AZN.
• U.S. Linkages Support and Marketing Assistance
In 2018, ASAP initiated new trade linkages between existing local agribusinesses and U.S. companies interested in introducing and expanding exports to Azerbaijan. ASAP was contacted by Soil Biotics regarding partnering to conduct a trial of soil amendments formulated by the firm for specific local soil conditions. ASAP selected and appointed two greenhouses with a total size of 0.50 ha for testing that now will hopefully take place in December in Shamkir at ASAP’s beneficiary farms. A delay in delivery of the amendments to CNFA by Soil Biotics during PY4 has made uncertain the future of the agreed-to trials. If the U.S. firm provides the soil amendments in time for next season, however, a new U.S. produced high-quality product for soil enrichment will be demonstrated to nearly a hundred farmers in Shamkir that may facilitate an increase in production of up to 25%. If the new fertilizer-testing project goes well, it will represent a new U.S. linkage to Azerbaijani farmers. For the Vegetable VC, ASAP also contacted Spectrum Technologies, Irrometer, and Hollar Seeds among U.S. companies regarding the possible introduction of their technology, equipment and input supplies to Azerbaijani agribusinesses who are willing to sign dealership agreements.
• Group Training Provision and Training Capacity Building
The beginning of this year was very challenging for greenhouse business owners in terms of disease and insect problems in greenhouses. It is essential to protect greenhouses from various diseases and insects, and to identify the plants underproducing at early stages of tomato and cucumber growth so that deficiencies can be quickly corrected, and healthy, high-quality produce be grown with good yields. ASAP beneficiaries who received technical assistance and agricultural production trainings from local agronomist Allahverdi Kazimov did not experience failures in vegetable production. Throughout the year, Kazimov provided great care and protection from plant-devastating diseases to all beneficiary greenhouses so that they were able to harvest and export large volumes of high-quality produce. ASAP’s agronomist is now well recognized among beneficiaries, who highly recommend him to other non-beneficiary greenhouses in the western region.
During this year some of ASAP greenhouse Part two of the training for ASAU students, beneficiaries achieved increased export successes which was held in a beneficiary’s greenhouse
28 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report beyond Russian markets due to improved cultivation practices, improved plant material, and international certifications.
During the summer months, greenhouse production in Azerbaijan declined, as most greenhouses conducted cleaning, disinfection and preparation in advance of a new cucumber and then tomato growing season that usually starts from August and lasts until May. During these three months, Kazimov worked closely with farmers to provide recommendations on proper greenhouse facility clean up, soil preparations, as well as procurement, planting and treatment of certain tomato seedlings. Only 6% of ASAP beneficiaries had tomatoes exported in summer. They were ASAP TTF recipients, Aydin Jabbarov, GlobalG.A.P. holder, Bina Agro LLC and two beneficiaries that receive constant greenhouse production recommendations, Rovshan Mustafayev and Teymuraz Ojagverdiyev.
One of the achievements for the ASAP project was the completion of a training facility in Shamkir in the ASAP Local Vegetable VC Agronomist’s input supply store. The training room was furnished and equipped through USAID funding with all necessary facilities to support coordination meetings between local farmers as well to hold ASAP group trainings. ASAP also provided the agronomist Allahverdi Kazimov with agronomy trainings and practical agricultural tools to help build his capacity to provide high-quality trainings Training on chemical application against nema- and individual consultations to area growers. ASAP todes in Rovshan Mustafayev’s greenhouse developed a curriculum on greenhouse crop production, including PowerPoint presentations and printed handouts. This helped to facilitate an agreement with AgroCenter by which ASAP hosted selected students of Azerbaijan State Agricultural University for a series of trainings on greenhouse production that were delivered in the training room in Shamkir. This year ASAP continued the provision of intensive trainings on crop handling techniques, weed control, sanitary and hygienic procedures, pesticides and insecticides usage norms, temperature and moisture control, general greenhouse management and other agricultural production-related topics. These trainings and live demonstrations were delivered by the ASAP local agronomist Allahverdi Kazimov in the field during beneficiaries’ actual work and mainly focused on female employee trainees. Throughout the year, Allahverdi Kazimov trained about 550 greenhouse employees, 80% of which were female.
Along with trainings, ASAP’s local agronomist provided agricultural production recommendations to more than 120 agribusinesses on the identification and control of cotton moths (from the Heliothis genus), tomato moths, blossom-end rot disease in tomato plants, weed control, on micro and microelement deficiency, proper fertigation, irrigation and best formulation of insecticides to combat the diseases.
29 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
• Demonstration Plots
Integrated Pest Management (IPM) Demo Plot: In the spring of 2016, ASAP provided two greenhouse crops growers in Shamkir, Yegana Ismayilova and Yunus Namazov, with IPM tools and trainings on new practices for better control of diseases and pesticides resulting with increased productivity and yield. Every year these farmers use the valuable IPM tools twice: in fall and in winter growing seasons. These IPM tools are demonstrated to the community growers every year as there is still a great need for improved IPM practices in soil-based greenhouses. Using the tools in a complex lowers production costs and improves the quality and quantity of the vegetables produced. This year ASAP continued monitoring the performance of Demo Farms implementing IPM and demonstrated their advantages to other growers. These IPM tools and improved practices included: • Adding screens to all openings to control insects and diseases; • Monitors to control humidity, temperature and soil moisture to help control the greenhouse environment to prevent diseases; • Implementation of weed control around the greenhouses to reduce insect and disease pressure; • Improvement of sprayers used inside the greenhouses; • Mini tractors for soil mowing; • Application of flame burner units to remove diseased vegetation between crops. As a result of using the IPM tools in their greenhouses, the beneficiaries Yegana Ismayilova and Yunus Namazov increased their production by 15% and 11% per annum respectively. Several farmers from the community borrowed the flame burner and mini soil mowers from ASAP beneficiaries to test the tools independently in their greenhouse with further decision to procure some of the tools for personal use.
Irrigation Demo Plot: During the year, ASAP continued monitoring the progress of a Demo Plot in Samukh that it had established to help a vegetable grower Mammad Alakbarov improve irrigation using a pivot system and travelling gun unit. As was projected, this approach provides more precise irrigation, which, together with ASAP-recommended cultivation improvements, increased the farmer’s yields by up to 20%. Improvements included proper seed selection and soil improvement, as well as pest and disease control through sound IPM techniques and post- harvest handling.
• Technology Transfer Fund Activities
Aydin Jabbarov’s vegetable nursery: As was reported previously, ASAP’s seedling nursery project was quite successful. During the past two years of existence, the nursery became recognized in the region among tomato and One-month-old seedlings in Gafar Bagirov.’s nursery
30 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report cucumber growers for provision of high quality, disease-free seedlings to the community, and generated about 100,000 AZN in sales revenue. This year, nursery owner Aydin Jabbarov decided to transform the 10-ha soil-based greenhouse into coco-peat hydroponic production, which required an investment of nearly 1 million AZN. The reason for this conversion was that nematodes, which are a common obstacle to soil-based greenhouse production, have been spreading throughout his greenhouses. Due to decreased production volume and the low quality of tomatoes they harvested this spring, the company made it a priority to invest in more secure production, which, although costly, will more reliably help ensure productive yields and high-quality produce.
Berry Value Chain
The ASAP Berry VC is concentrated in the two largest berry-producing areas in the country: from Shamkir to Samukh in the west, and from Jalilabad to Absheron regions in the east, as well as in the Southern Regions of Astara and Lenkaran. The Berry VC includes the following crops: strawberries, raspberries, kiwis, and feijoa. ASAP assistance and support helped accelerate the growth of this VC this year. Multiple achievements followed on from the participation of berry growers in the ASAP/REG-organized Study Trip to California in spring of this year. To improve and make Azerbaijan’s Berry sector competitive in local and international markets, ASAP nominated several large sectoral players for TTF support, which has already shown tangible results.
• U.S. Linkages Support and Marketing Assistance
Vatan-AZ LLC and U.S. company partnership: As mentioned below, multiple benefits of berry growers’ study trip to California should be noted. One benefit to recognize is the linkage created with ASAP beneficiary, strawberry grower and input dealer Vatan-AZ LLC, with Grow More, Inc., an American specialty fertilizer formulator. The companies signed an exclusive distributorship agreement worth an estimated $220,000 for the first year of partnership. Soon thereafter, Vatan-AZ submitted its first product order in the amount of $56,000.
U.S. strawberry varieties purchase: Another significant need of strawberry producers that emerged during the California study trip was for high-quality plants that Azerbaijani farmers can’t currently access in a timely manner. ASAP linked the beneficiaries with Viveros California, an American company’s representative in Spain, which offers sought-after U.S.-developed and licensed varieties. As a result of this linkage, the Azerbaijani growers have ordered 278,000 strawberry saplings in the amount of €40,866 that are expected to be delivered to Azerbaijan in early September.
• Association Development and Stakeholder Collaboration
After visiting the California Berry Association in the U.S., several Azerbaijani berry growers came to an agreement to establish the Azerbaijani Berry Growers Association to ease
31 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report international inputs supply and export initiatives to achieve best results in production quality and quantity. ASAP fully supported this idea and provided hands-on facilitation to the process of registration. After several meetings and discussions in Baku, and with a guidance from ASAP, the growers collected all necessary documents and applied to the Ministry of Justice for legal registration. Recently, the organizational charter of the Azerbaijan Berry Growers Association with 15 founding members was approved, and a Azerbaijan Berry Growers recommendation letter was received shortly from Association members meeting the Ministry of Agriculture for submission to the Ministry of Justice. A chairman of the Association was appointed, Nemat Seyfullayev, a business man and trader from the South region.
• Group Training Provision and Training Capacity Building
ASAP improved outreach to berry growers by providing them with a sequence of trainings on best international practices of strawberry, kiwi and feijoa growing in the South. This was achieved by hiring two berry agronomists, Adalat Nehmatov and Mobil Penjaliyev, to conduct trainings in Jalilabad and Lenkaran respectively. Over the year, ASAP provided over 1,300 instances of training and technical assistance to educate on better growing practices, harvest and post-harvest skills for strawberry, kiwi and feijoa production. Trainings held by local agronomists in the South
• Demonstration Plots
Improved Kiwi Irrigation: After participation in a Study Tour to Georgia in 2017 through ASAP assistance, a kiwi producer from Astara, Sakhavat Sultanov, decided to establish a demo plot upon being impressed by pruning techniques that were conducted to train kiwi vines using a “T-bar” staking technique. ASAP supported this idea and provided the farmer with a “T-bar” system of staking for his kiwi orchard. With “T-bar” trained kiwifruit vines, it becomes more efficient to implement agricultural practices than those that A modern “T-bar” training system and sprinkler are trained based on obsolete Soviet technologies, irrigation system at Sakhavat Sultanov’s Demo Plot 32 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report as the former allows for easier pruning and blossom thinning throughout the year. Additionally, the demo plot demonstrates to community farmers how “T-bar” training system helps farm workers to properly identify and control all potential pests and diseases. In addition to this system, ASAP also established a sprinkler irrigation system. The advanced technologies will help the farmer to double kiwifruit production to produce 25 to 30 MT per hectares of kiwifruit versus Soviet technology-based orchards which yield about 15 MT of produce per hectare. Managed with “T-bar” and sprinkler irrigation, kiwifruit trees will produce high quality fruit with a marketable appearance, which will allow the farmer to access new export markets.
Expansion of ASAP’s Berry Demo Plot: Mammad Alakbarov, who was selected by ASAP to host a 300-square-meter berry demo plot, has produced strawberries there for two consequent years. The grower was not satisfied with the quality of the produce and decided to update the production technology. This year Mammad Alakbarov expanded the demo plot up to ASAP’s berry demo plot before (at the top), 1000 square meters and after expansion and modernization (right) (0.10 ha) with high troughs and coco-peat substrate, installed a water purification system that lowers water electrical conductivity to the level needed for ideal strawberry growing conditions. The grower imported 23,000 Festival variety strawberry seedlings from Turkey and planted in early fall. In general, the farmer invested $65,000 in the expanded demo plot that is currently producing high-quality strawberries and the demo greenhouse serves as a model for the community’s growers.
• Technology Transfer Fund Activities
Cold Storage in Jalilabad: On February 28th, CNFA and Miragha Hasanov, a strawberry producer in Jalilabad, signed an agreement with Nemat Seyfullayev, head of vendor company Kalorit, for the purchase and installation of a cold storage system in a facility being built by Mr. Hasanov. Financed by Miragha Hasanov in the amount of $117,600, with matching funding from USAID of $50,000, the project was finalized in March 2018. Hasanov is pleased with the new facility, which can cool down five tons of strawberries to the required storage temperature in just four hours. Since completing initial testing of the equipment, the beneficiary has been storing his strawberries in the facility. Over the season, Miragha Hasanov sent 200 tons of strawberries to Moscow after chilling and storing them in his new facility. Strawberries are also collected from community growers, stored in the cold storage, and then sold in local markets or exported to Russia.
33 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
Cold Storage in Samukh: To improve and make the Azerbaijani Berry Sector more competitive within the global market, ASAP provided another strawberry grower in the western region with TTF support for cold storage establishment. Emin Huseynov, who ASAP specialists inspecting strawberry grower Miragha Hasanov’s newly completed currently grows cold storage facility in Jalilabad, which was built with USAID matching funding strawberries on 15 hectares and participated in the California study tour, started construction of the 100-ton storage facility in September 2018. The beneficiary cost share for the project is anticipated to be $80,193, and USAID will fund $50,000, to be finalized by the end of October 2018. This project will be another success for ASAP and will build a competitive agribusiness and raise export potential for Azerbaijani produce.
Cold Storage in Lenkaran: To support kiwi and feijoa growers and facilitate sales of high-quality Azerbaijani citrus produce, ASAP provided finance for the establishment of 200-square-meters cold storage for Mohubbat Ibrahimov, a kiwi and feijoa grower in Lenkaran. In total, 60 hectares of community members with different citrus fruits will benefit from this project where the beneficiary cost share is $80,000 and USAID’s share is $40,000.
Result 2: Good Agricultural Practices Implemented
Result 2 activities are aimed at smaller Azeri growers than are Result 1 activities, and are primarily focused on microenterprises with fewer than 10 staff. To achieve this result, ASAP was designed to promote adoption of improved agricultural practices through the development of extension provider capacity, provision of group training to growers, and the use of demonstration plots to model proper growing practices for neighboring farmers and other interested growers. While a delay in project registration led to a decision early on to postpone group trainings until project registration was completed1, on-farm, firm-level assistance nevertheless led to some widespread impacts, including farm workers taking new knowledge and skills imparted at their place of employment and additionally implementing them in the management of their own private plots, as well as neighboring farmers copying the new practices they saw implemented by ASAP beneficiaries. In addition, a small number of direct ASAP beneficiaries were small enough to be considered Result 2 clients.
1 This was because obtaining advance permission to hold public events in the country’s regions is generally required and requesting such approval prior to ASAP project registration was not deemed advisable. 34 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
In addition, during PY4 a joint decision was made by USAID and ASAP to begin delivering group farmer training. The registration of the national hazelnut and pomegranate associations, ASAP’s equipping of a room in the hazelnut association’s office building to serve as a training facility, and prospective linkages with various other registered projects and training organizations, made a variety of group trainings much more feasible for ASAP. Thus, a comprehensive training plan was drafted that ASAP incorporated into its PY4 Work Plan. The plan mapped out training commitments over the year in the following categories: Berries, Hazelnuts, Orchard Crops, Persimmons, Pomegranates, Vegetables, and Southern Crops (including grapes, potatoes, strawberries, kiwi, and feijoa) and the project began holding regularly scheduled group trainings in November 2017. Implementation of this intensive program of group trainings continued this reporting period.
Cross Cutting Activities
Farmer Group Training
Under the training plan that ASAP incorporated into its PY4 Work Plan, the project began holding regularly scheduled group trainings in November 2017. Implementation of this intensive program of group trainings continued this reporting period. Over the course of the year individual growers were trained through these trainings bringing the total of instances of training up to 3,258.
ASAP Agronomist Support
Whereas ASAP’s agronomists are some of the best in their field in Azerbaijan, the science of agriculture advances rapidly and in addition to catching up from the Soviet era, these agronomists are being challenged to catch up with the world’s latest technology.
There are several mechanisms that ASAP uses to constantly improve their skills. These consist of such methods as: • STTA: Bringing international experts to Azerbaijan for short-term study trips when they share their skill sets • Foreign Study Trips: This program year included trips to the US California fruit and berry regions and the Oregon hazelnut growing region • Annual in-house training: This includes providing new tools for their use in the field. In PY3, Irrometers were introduced to measure plant available soil moisture and in PY4 hand-help pH meters for measuring soil and water pH in the field • Training Materials: Reviewing the training materials used by the agronomists and introducing new materials • Translations: Locating new production publications and translating them for their use
35 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
• Field visits: Finally, regular field visits by the ASAP Agribusiness Advisor and the Value Chain Program Staff transfers knowledge and ensures that newly introduced principles are integrated into the work and training of the field agronomists.
Over the course of the ASAP project, the skills and knowledge of the field agronomists has improved. This has translated into more modern training and increases in the production volume and quality of the fruits and vegetables produced by ASAP’s participants as well as community members who observe and discuss these innovations.
Each new program year brings changes in project emphasis and in PY4 additional emphasis in training of both existing clients and perhaps more important, new recipients that could not be served through the more expensive demonstration program emphasis. This change made the improvement of the skills and knowledge of ASAP’s field agronomists more critical.
The sustainability of these improvements is critical. Much of this sustainability is ensured through the linkage initiative. The tools that have been introduced are in the process of being made available in Azerbaijan through distributorships between American manufacturers and Azerbaijani companies. This will help bring new technology to Azerbaijan as soon as it is commercially available. This is already true for innovative fertilizers and soon contracts for instruments will be complete. The Texas A&M University contract includes an exchange program for students and faculty at the ASAU that will last beyond the end of ASAP’s PY5.
Facilitating Linkages with U.S. Agribusiness
Among its various objectives, ASAP seeks to strengthen the commercial presence of U.S. agricultural companies in Azerbaijan and help them to increase their sales in Azerbaijan, increase the profitability of Azerbaijani companies and bring needed new technology to Azerbaijan.
• AzTexnika/John Deere: AzTexnika, the Azerbaijani distributor of John Deere products in Azerbaijan, is interested in several activities to strengthen its operations in the country. ASAP is providing assistance on the following efforts: o AzTexnika/John Deere are interested in expanding their product offerings in Azerbaijan to include the full line of seed, fertilizers and crop production products needed for cotton production. Two U.S. companies were contacted regarding a potential distribution agreement. ASAP will continue to develop a relationship them, Loveland Chemicals and Crop Production Services which together have a full line of high-quality cotton production inputs. o John Deere/AzTekhnika, ASAP met with members of the faculty at ASAU to discuss the teaching materials being used for cotton agronomist training. By mid-December, the e-version was provided to ASAP. In reviewing it, ASAP learned that it consists of technology that is sourced in China. The text was hastily developed and does not include some key subjects such as IPM. Thus, ASAP will begin to collect and compile materials that use current technology appropriate for production in Azerbaijan.
36 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
o As part of USAID’s Linkages initiative ASAP did conduct some limited activities to improve the sales of the John Deere Company in Azerbaijan. To do this ASAP recruited a cotton and grain agronomist from the US to advise the customers of John Deere as well as to attract new customers through the provision of technical assistance. The ASAP-recruited cotton and grain agronomist worked with the PMD farm at Yalama as well as many other farms and submitted an extensive report that was in turn provided to the managers of John Deere. o ASAP met with Mr. Ramil Abdullayev, After Market Manager for the John Deere Company to discuss possible distribution contracts for US manufactured products. He was interested in the first proposal of an American made implement. Additional information will be provided, and a dialogue begun between the two companies. The result of this distributorship would be profitable to John Deere by extending their product line into a new market, reduce soil erosion reduce irrigation needs and improve yields of cotton, corn and soybeans. Additionally, Mr. Abdullah is in talks directly with representatives of ASAP, AgroCenter, and Texas A&M University for him to complete a certification program developed by the University to train cotton and grain agronomists. • AgroCenter: AgroCenter is a group that is funded by multiple donors consisting of Gilan and PMD holdings and the German Government through GIZ. Program crops consist of pomegranates, hazelnuts and cotton. Cotton is not one of ASAP’s Value Chains, so pomegranates and hazelnuts were emphasized in our collaborative work. AgroCenter initially focused on the development of teaching materials for the curricula in hazelnut, pomegranate and cotton as well as accessing ASAP’s many demo plots and agronomists for use as “Outdoor Classrooms” for their select students at ASAU. Additionally, ASAP linked AgroCenter with the cotton agronomy faculty at Texas A&M University. This resulted in a two-year collaboration that will serve to improve cotton production in Azerbaijan and improve the capacity of the faculty at ASAU. The total contract with Texas A&M is $400,000 over a two-year period that will include a cotton production manual for Azerbaijan, the identification of the US grown cotton seeds that are appropriate and an exchange program of students and faculty between these two universities. ASAP has identified a comprehensive list of the crop inputs necessary for cotton and grain production. AgroCenter’s donors are in the process of seeking distribution rights for these products. ASAP is developing short one-page technical sheets for each of these products through its agronomist under contract in the U.S. who has used these products for years in the field and in many cases, has conducted research trials in the field for their manufacturers. • California Study Trip: On April 28th, 12 Azerbaijani agribusiness owners departed for the U.S. on a two-week, ASAP-supported study tour to northern California. The trip was designed to introduce the group to modern production processes, technologies, and suppliers. In order to help Azerbaijani agribusiness entrepreneurs to access new technologies, identify new suppliers, and establish new potential business linkages, ASAP scheduled visits to the University of California, Davis as well as a wide range of farms, processors, and agribusiness suppliers. The trip was jointly funded by 37 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
ASAP and the USAID Regional Economic Growth Project (REG), with significant matching funding from the participants themselves. Upon their return to Azerbaijan, ASAP began providing follow-on assistance in the form of facilitating ongoing communications, contracting, and due diligence support to develop these linkages between U.S. and Azerbaijani agribusinesses. Below is a brief summary of the specific commercial linkages in development: o ASAP facilitated a distribution agreement between Grow More, Inc., a California- based specialty fertilizer formulator and Vatan-AZ LLC, an Azerbaijani input dealer and strawberry producer. After Grow More LLC and Vatan-AZ signed a distributorship agreement for the annual amount of $220,000, the Azerbaijani firm submitted its first order for $56,000 o The negotiation for the purchase of a U.S.-produced grape variety from International Fruit Genetics (IFG) of Bakersfield, California by beneficiary, Aliyar Naghiyev. This purchase is being assisted by the US Commercial Service via the Commercial section of the US Embassy in Baku. This collaboration was begun by USAID’s introduction of ASAP to their counterparts at the US Embassy. o New American strawberry varieties developed by the University of California at Davis and commercially available to buyers in Azerbaijan through Viveros California, a distributor in Spain interested four ASAP beneficiaries. ASAP’s specialists initiated correspondence and the beneficiaries submitted the first order for amount of €197,000 for 278,000 strawberry saplings; • U.S. Embassy Webinar: In April, ASAP and USAID representatives participated in a webinar conducted by the Commercial Section of the U.S. Embassy for U.S. agribusinesses interested in penetrating the Azerbaijani market. ASAP followed up on two responses to the event for additional information on possible sales to Azerbaijan. One was from a potential rice importer and the other from a food safety certification company. The ASAP Food Quality and Safety Compliance Specialist will be the contact person for further assistance and collaboration with the Embassy. • Texas A&M University Cotton Collaboration: The ASAP Translator assisted with interpretation for the Texas A&M University (TAMU) team during their initial visit to Azerbaijan during the last week of April. Translations included field visits as well as group lectures to a class of 50 agronomy students and faculty on cotton production. AgroCenter, an Azerbaijani agribusiness consultancy, has contracted with TAMU to implement a two- year program of technical assistance to help modernize cotton production in Azerbaijan. The total cost of the project is $405,000 with a portion of year two being paid by the Minister of Agriculture. • Activities to Combat Brown Marmorated Stink Bug: On June 25th, ASAP made a presentation to a group of business and government leaders on the Brown Marmorated Stink Bug (BMSB) threat to Azerbaijani agriculture at a seminar organized by AgroCenter. The Ministry of Agriculture has asked that the presentation also be presented in many potentially affected regions. USAID has agreed to assist and AgroCenter is currently collecting a list of interested regions. Also, during June, ASAP met with AgroCenter to discuss their potential assistance in monitoring Brown 38 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
Marmorated Stink Bug (BMSB) this season. AgroCenter tentatively agreed to cover approximately 90% of the estimated $6,000 in traps and lures for this year’s expanded monitoring program. AgroCenter has discussed the BMSB issue with the heads of Gilan Agricultural Group (GAG) and PMD as well as the new Minister of Agriculture. Due to a funds-transfer error, the traps did not arrive in time for the 2018 season and will be deployed in the summer of 2019. • Meeting with U.S. Embassy’s Commercial Section: Phillip Guthrie and Govar Mammadova of the U.S. Embassy’s Commercial Section met with ASAP staff. They agreed to assist in making commercial linkages with the larger, more complex companies in the U.S. that would respond better to a request directly from the US Embassy. A short Due Diligence process was presented by them that will aid ASAP staff who are working on the U.S. Linkages initiative. The program is now operating with several US companies and products ASAP Agribusiness Advisor George Melton delivering being linked with Azerbaijani companies. a presentation on BMSB to government • Agroleasing: Agroleasing has and private sector experts approached Mr. Ramil Abdullah at Aztexnika regarding the purchase of 50 pH meters, Electro-Conductivity meters and other such instruments. One set of these tools would be placed in each Agroleasing office. This availability of instrumentation if properly coupled with training would improve fertilization and irrigation practices along with others. • Irrometer Company: The owner of the US based Irrometer Company that manufactures tools for measuring soil water and irrigation needs has begun will arrive in Baku from October 23-27th for a trip in search of a distributor. The ready availability of this valuable technology would improve irrigation efficiency, increase crop yields, reduce salinization and reduce irrigation costs while improving the profitability of the Irrometer Company and its Azerbaijan distributor. • Grow More, Inc.: Before the new fertilizers that Vatan is buying from its US partner, they must be registered and samples of them must be delivered to the Ministry of Agriculture. Grow More has had a great deal of trouble with these shipments due to new EU legislation. The DHL Company refused the shipment and Grow More finally succeeded in shipping the complete set of samples by shipping them through FedEx. They are now being considered for registration by the Ministry of Agriculture.
Technology Transfer Fund
A key element of the ASAP project is its Technology Transfer Fund (TTF) program. While formally called Grants under Contract in CNFA's contract with USAID, the operational name
39 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report of this assistance is "Technology Transfer Fund Matching Investments". Through the activity, ASAP is providing up to $65,000 in individual in-kind investments to facilitate the procurement, installation, and use of modern agricultural and agribusiness technologies in order to help the recipient agribusiness expand and modernize, as well as to educate participants in the wider value chain about opportunities to expand production and profitability.
During PY4, ASAP received and evaluated fifteen TTF applications, of which twelve were approved by the Technical Evaluation Committee (TEC), three were cancelled including one of approved TTF applications, three are on hold, five projects were finalized, one is under evaluation, one TTF package is being finalized to be submitted to USAID in October 2018 and three are under implementation to be finalized in PY5. The twelve approved investments were as follows - for three hazelnut nurseries in North-West region for beneficiaries: Fuad Eldarov, Huseyn Tarverdiyev and Elvin Omarov, hazelnut growers; for machinery for beneficiary AHPEA, an association of hazelnut processers and exporters in Zagatala rayon; for a drip irrigation system for beneficiary Shohrat Farzaliyev, a fruit grower in Gusar rayon; for cold storage for beneficiary Eldar Zalov, a fruit grower and exporter in Guba rayon; for cold storage for beneficiary Emin Huseynov, a strawberry grower in Samukh rayon; for cold storage for beneficiary Miragha Hasanov, a strawberry grower in Jalilabad rayon; for cold storage for beneficiary Mohubbat Ibrahimov, a kiwi and feijoa grower in Lenkaran rayon; for cold storage for beneficiary Ayaz Alakbarov, a fruit grower and exporter in Gusar rayon; for raising packaging line for beneficiary Aliyar Naghiyev, a grape grower in Jalilabad rayon; for pomegranate nursery for beneficiary Mabat LLC, a pomegranate producer in Kurdamir rayon. The TTF application submitted by beneficiary Aliyar Naghiyev was cancelled after it was approved by USAID, because the beneficiary could not get the necessary loan from the Government; the TTF application submitted by beneficiary Red Valley LLC was cancelled because the beneficiary did not submit revised TTF application to ASAP; Agrovilla LLC was cancelled because the beneficiary couldn’t privatize the land he is using. Three hazelnut nursery projects in the North-West region for hazelnut growers, Fuad Eldarov, Huseyn Tarverdiyev and Elvin Omarov, are on hold because the beneficiaries need to provide land ownership documents for the land they are using. During PY4, the Project had completed the environmental clearance process for all approved projects, selected vendors for twelve projects through competitive bidding processes and finalized the grant packages for seven of them and submitted to USAID, which provided final approval for all seven. An overview of applications received to date and their current implementation status is provided in the table in Appendix E to this report.
Business Support Provider (BSP) Technical Assistance Matching Fund
The Business Support Provider (BSP) Matching Funding Facility is a resource that ASAP uses to provide cost-sharing to agribusiness beneficiaries that seek technical assistance from local BSPs. The Fund enables clients to access subsidized technical assistance from local BSPs. Depending on demand for and the projected costs of the particular technical assistance assignment,
40 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report beneficiaries are required to contribute 30-70% of the cost of BSP assistance to encourage long-term commercial relationships between BDS providers and agribusinesses.
During PY4, ASAP did not receive any applications for BSP matching funding. However, ASAP did request and receive USAID approval to make several procurements during the year with funds from this project line item. For example, ASAP fully equipped and furnished local agronomists’ training rooms in Guba and Shamkir regions and provided two local agronomists’ training centers in the South with printer/scanners and digital projectors. In all, the items cost $7,954.38. A decision to use the Local Business Development Service Provider line item for these purchases was made because ASAP considered building the capacity of its agronomist consultants (who themselves are of local BDS providers) to be an important priority. In addition, $33,067.26 from this line item was utilized to help cover the cost of the study trip to California in April-May 2018 for three ASAP staff, one local agronomist consultant, and 12 project beneficiaries, because it was considered that the trip was helping ASAP to build the capacity of its local agronomist participant as well as its participating staff, thereby enabling the project to better provide technical assistance to its beneficiaries.
Access to Finance
During PY4, ASAP assisted selected agribusinesses in business planning, drafting project profiles, and identifying potential banks and investors. The project met with agribusinesses and finance providers in the regions to better understand their needs and capacity, analyze their agricultural lending products, make comparisons, and identify the most affordable and convenient financing solutions for specific agribusiness operations.
Specific project efforts during PY4 are described below: • Financial Statement Assistance: ASAP assisted twelve project beneficiaries (Emin Huseynov, Miraga Hasanov, Eldar Zalov, Aliyar Nagiyev, Shohrat Farzaliyev, Ayaz Alakbarov, Fuad Eldarov, Rashad Shirinov, Hasan Tarverdiyev, Mohubbat Ibrahimov, Agrovilla LLC and Khaspoladoba) to prepare financial statements for Technology Transfer Fund applications, including helping beneficiaries to understand the structure of the financial statements required, and how to properly draft them on their own. • Analytical Reports: During PY4, ASAP drafted the following twelve finance and economic-related analytical reports/briefing notes requested by USAID: 1) “Brief overview of Azerbaijan’s economy in 2017” 2) “A brief analysis of Azerbaijan’s draft state budget for 2018” 3) “Credit Guarantee fund of Azerbaijan Republic” 4) “Factors affecting the currency market and forecast for manat's rate in 2018.” 5) “Azerbaijan’s Foreign Trade in 2017: Non-Oil Export Products and Destinations” 6) “Impact of the discount rate reduction on the credit market.” 7) “Potential impact of Russia and Turkey's economic instability on Azerbaijan” 8) “Are banks lending to business?” 41 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
9) “Azerbaijan’s Non-Oil Exports: Progress & Prospects” 10) “Major effects of devaluation on Azerbaijan's banking sector.” 11) “Growing cotton for small farmers.” 12) “Azerbaijan’s non-oil export in 2018”
• Banks: During the year, the ASAP continuously met with the top management of Pasha Bank, International Bank of Azerbaijan, Bank of Baku and other banks to discuss their agricultural project lending financing plans. • Cost/benefit analysis: The ASAP Access to Finance Specialist analyzed the economics of strawberry production, comparing the costs and returns of establishing and producing fresh and processed market products for further dissemination to Project beneficiaries. • Meetings: o The ASAP Access to Finance specialist met with a representative from AWF company (part of YR Group, Israel) to learn more about the agricultural solutions and financing terms that they provide. The solutions proposed by AWF in the fields of agriculture include greenhouses, tree nurseries, net houses, tunnels and open field on the one hand; and animal breeding farms such as dairies, chicken coops, and aquaculture on the other. AWF is interested in expanding in the CIS countries and is seeking interesting projects in Azerbaijan. o The Access to Finance Specialist met with representatives of Next Step, an Azerbaijan-based company that provides services for start-ups (entrepreneurship courses, incubation, accelerators). New agricultural start-up ideas were discussed. They also introduced some start-up projects from the U.S., which could be interesting to ASAP’s beneficiaries.
Quality and Food Safety
Trade capacity building efforts included assistance to beneficiaries in adopting and achieving certification in international quality and food safety standards. During Project Year 4, pomegranate grower Mars FK successfully passed its annual GlobalG.A.P. control audit, greenhouse vegetable grower AS Group Investment obtained GlobalG.A.P. and ISO 22000 certification, and hazelnut processors Atababa LLC and KhanEl received ISO 22000 certification. In all, there were 56 instances of beneficiaries being trained in international quality and food safety standards during the year.
• Mars FK LLC obtaining GlobalG.A.P. certification, maked the Company as the first pomegranate producer in Azerbaijan that has been awarded this standard. ASAP support to Mars FK in this endeavor included training, pre-audits, and support in developing the required documentation. • ASAP provided TA and recommendations on GlobalG.A.P. and ISO 22000 standards to AS Group. After obtaining GlobalG.A.P. in January, AS Group obtained ISO 22000 Food Safety certification in February.
42 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
• ASAP focused on a beneficiary from the Orchard VC (Shamil Jahangirov). ASAP provide GlobalG.A.P. training to Shamil Jahangirov’s workers. Besides ASAP implemented GlobalG.A.P. procedures in orchard. • ASAP provided GlobalG.A.P. training for Rashad Shirinov’s pomegranate orchard. ASAP fully completed GlobalG.A.P. procedures in pomegranate orchard. All preparations process completed and only Certification audit is on progress. • ASAP specialist Fuad Aghayev met with Mr. Fuad Shakhvaliyev, the Executive Director of the Azerbaijan Fruit and Vegetable Producers and Exporters Association, on May 2. Vugar Bayramov, a Commercial Director for Buta Group (a greenhouse producer) that is one of the association members also attended the meeting. The parties discussed first steps of cooperation where they suggested Fuad Aghayev start his initial audit and training on GlobalG.A.P. with Buta Group, followed by visits to greenhouse producer Amoris, DAD company, and Agrarco LLC (previously named Agrowest LLC). These companies have recently joined the Association and are seeking GlobalG.A.P. certification to facilitate their expansion into international markets. Association management noted that they would like ASAP to attend the next association annual event to give a presentation to members on the purpose and benefits of GlobalG.A.P. and other international quality certifications for agribusinesses. ASAP audited Buta Group’s facility and sent them a report, which the company is now using to developing a budget for the cost of required compliance activities. Buta’s goal is to expand its efforts and seeks GlobalG.A.P. certification in order to help facilitate this process.
Monitoring and Evaluation (M&E)
In February, ASAP's COP and M&E Specialist met with USAID representatives to discuss the needed changes to the project’s Monitoring and Evaluation Plan (MEP). As a result of these discussions, ASAP submitted revised version of its Monitoring and Evaluation Plan (MEP) to USAID on June 22, 2018. The revision made to the document consisted of new targets for Project Years 4 and 5, revised the definitions of several of its indicators to capture broader project activities in its reporting and adding one standard indicator to capture the result of its activities in Preventing Violent Extremism (PVE). Subsequent revisions to the MEP targets have been based on actuals achieved during subsequent project implementation as well as any relevant changes in Mission priorities for the project’s objectives. USAID approved the revision to the document on September 11, 2018.
For surveying the Result 2 beneficiaries, however, by the end of the Project Year 4 ASAP staff made a master database of the beneficiaries receiving training or TA from the Project and on an annual basis will survey the selected sample of the beneficiaries to check if they adopted the provided knowledge on their households.
During the quarter, ASAP's Monitoring and Evaluation Specialist continued to coordinate the drafting and submission of ASAP's Monthly and Quarterly Reports, conducted the consolidation
43 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report and reporting of Project achievements against impact indicator targets, and responded to additional data queries from USAID. She also assisted in the development of four videos on Project beneficiaries that were presented as part of USAID/Azerbaijan’s contribution to Global Entrepreneurship Week, from November 13-19, 2017 and six videos that would be presented at the USAID Second Portfolio Review event in October 2018.
In addition to conducting regular ongoing reporting activities, ASAP’s Monitoring and Evaluation Specialist conducted a monitoring trip to the Western regions in March 2018, Goranboy- Goychay regions of Azerbaijan in May 2018 and Gakh-Zagatala regions in June 2018. The purpose of the trips was to meet project beneficiaries and agronomists and get more closely acquainted with the activities implemented in the field. During the visits, beneficiaries expressed gratitude for the project’s support and credited it with changing their attitude toward farming. One such beneficiary, persimmon grower Elbrus Jabrayilov, mentioned that before ASAP began providing him with assistance, he used to spend significant resources experimenting with agricultural practices in his farm without getting any positive results. Now, with ASAP’s guidance, he has a more organized approach to farming. Now, even spending 100 AZN on proven internationally recognized practices leads to better results, and these new methods have transformed the farm into a primary destination for traders in Agdash.
ASAP PY4 Annual Survey Results
To monitor the sales results for Year 4, ASAP held two types of surveys: Survey #1 was focused on the agribusinesses with which the Project is in particularly close contact, providing technical assistance and other intensive types of assistance. Survey #2 was focused on the beneficiaries who participated in Project-provided group-based trainings or occasional technical assistance.
Survey #1 was implemented by the Value Chain Specialists during October 2018 and covered 110 direct Project beneficiaries. In most cases, in all five Value Chains the Project noted increases of over 20% of the targets set for both export and domestic sales. The Vegetable and Hazelnut VCs, for example, increased sales by 28% and 24%, respectively.
However, while the Pomegranate/Persimmon Value Chain reported a 12% decrease in domestic sales, export sales increased by 59% over the year, due largely to an increase in the quality of produce and resulting export opportunities. The farmers who were mostly selling to the processing facilities now sell an average of only 25% of their produce to (domestic) processing facilities.
In the Orchard Value Chain, export sales decreased mainly due to the decreasing value of the ruble and a decrease in the demand in CIS markets occurred as a result of newly established orchards in the North Caucasus, Krasnodar and Balkans reaching productivity. Apples are the main crop in the Orchard VC and most farmers sold their produce to traders who stored the
44 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report apples in anticipation of selling them after November when prices are expected to rise in both domestic and export markets
In the Berry Value Chain, 3 out of 6 respondents started to export this year for the first time. However, due to a decrease in Vatan-Az LLC’s sales this year, the overall average increase in exports for the sector is just 10%. Having observed increased competition in the market, Vatan- Az started to direct more of his business toward sales of strawberry seedlings, so this was a transition year for his business.
For surveying the beneficiaries who participated only in group trainings or who received occasional technical assistance from the Project, ASAP developed a master database of the beneficiaries. ASAP surveyed a selected sample of the beneficiaries under Survey #2 to check if they adopted the provided knowledge in their own operations.
ASAP reached 3,082 individuals during the Year 4, but for survey purposes it excluded the individuals from Shamkir area as mainly the participants were greenhouse employees who refused to leave their contact numbers in the training log sheets. All the greenhouse owners were captured in Survey # 1. Therefore, the population size ASAP used for the Survey #2 was 2,117 individuals. With a 95% confidence level and 6% margin of error, ASAP came up with a sample size of 240 respondents.
Over 408 calls were made to record response from 241 farmers in different regions and value chains. 166 calls were not successful as either the phone number did not work, or the call was not answered. Of the 241 interviewed individuals, 229 have adopted at least one or more practices provided in their farms (thus, 12 individuals did NOT implement any new practices). With a margin of error of 6%, we can say that out of 2,117 individuals trained, 2,011 have adopted practices provided by ASAP. Of the population, 65% were farmers with equal or less than 2 hectares of land, categorizing them as Result 2 beneficiaries. This said, the number of small households adopting ASAP assistance is 1,037.
12 farmers who did not adopt any practices as a result of the participation at the ASAP provided trainings either considered their traditional approach satisfactory and were not open to adopting new practices, or did not have enough financial resources to apply the acquired knowledge.
The respondents provided mainly positive feedback. To the question, “As a result of the adopted practices, have you been able to observe an increase in your productivity or improve the quality of your produce?”, 219 of the 229 respondents who applied at least one new practice answered positively. Conversely, 10 of the 229 who applied at least one new practice did NOT observe an increase in productivity or improvement in the quality of their produce. These 10 respondents blamed their negative result on either bad weather during the growing season, poor quality of chemicals applied, or having applied only one practice instead of a sufficient
45 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report number of complementary practices that would have led to a positive impact on their production.
Environmental Management and Monitoring
Since October 2017, Environmental Expert Elvin Sadikhov has continued to work on the ASAP Project with the primary responsibility of working on USAID’s Environmental Review Checklists (ERC) preparation, approval and completion (ROC). Within a year, Mr. Sadikhov made several field trips, as well as conducted desk research in order to find out ASAP project’s environmental, social, safety and health aspects and advised mitigation measures of any hazards.
The process included the preparation of Records of Compliance (ROC) for each completed project. From October 2017 to September 2018, eleven ERCs (ten TTFs and one Demo Plot) and fifteen ROCs (five TTFs and ten Demo Plots) were prepared and approved (two of ERCs are pending for approval) by USAID. The Environmental Expert visited different rayons of Azerbaijan, met with and interviewed responsible beneficiaries according to the ERC requirements. At the same time, he consulted with beneficiaries about future possible non- compliance which farmers need to pay attention to during implementation and operational phases.
Also, the Environmental Expert conducted monitoring of already implemented ASAP TTF and Demonstration Plot activities to check implementation of EMMP commitments. As a result of follow up monitoring, some environmental advisement has been provided to beneficiaries.
The USAID Mission organized a field trip between December 19-21, 2017 to Zagatala region to monitor environmental compliance of ongoing and completed projects in Zagatala region and Agdash rayon. The Mission consisted of USAID COR/AOR/Activity Manager - Samir Hamidov, USAID Mission Environmental Officer - Gocha Lobzianidze, USAID Program Office Director - David Ratliff, Tamilla Mammadova - Monitoring & Evaluation and Project Design Specialist, and six projects (Parvana LLC's drip irrigation system AHEC's processing facility, Karaca LLC’s- truck weight equipment, Jaarchi Hajiyev’s roasting line equipment, AHPEA’s training room, Orelay LLC’s water purification system). The result of the monitoring was positive, and any negative environmental process has not been noted by the Mission.
A training on utilizing Environmental Monitoring and Management Plans (EMMP) was provided to ASAP’s Value Chain Coordinators and local agronomists, its implementation process, and their role in this process was provided on February 9, 2018.
As of the close of PY4, the status of ERCs and ROCs submitted to USAID was as follows:
46 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
Status of ERCs and ROCs for ASAP TTF Projects (October 2107- September 2018) No Project Name Type of ERC Status ROC Status Funding 1 Improvement of Hazelnut Processing at Ismail TTF Approved on Approved on Orujov’s plant in Zagatala rayon 16/09/2015 21/05/2018 2 Upgrading Heating System for Eynur KT LLC TTF Approved on Approved on 17/05/2016 21/05/2018 3 Establishment of a Seedling Nursery for TTF Approved on Approved on Aydin Jabbarov in Shamkir Rayon 13/07/2016 21/05/2018 4 Furnishing of Azar Haktari’s plastic box TTF Approved on Approved on production facility with necessary equipment 02/03/2017 21/05/2018 and accessories in Guba rayon 5 Improvement of Pomegranate Processing on TTF Approved on Approved on Aladdin Fermer LLC’s farm in Salyan rayon 13/07/2016 21/05/2018 6 Procurement of Roasting Line for Jaarchi TTF Approved on Hajiyev’s Hazelnut Processing Plant 02/08/2017 7 Installation of Cold Storage Equipment on TTF Approved on Miraqa Hasanov’s Farm in Jalilabad rayon 26/02/2018 8 Installation of Cold Storage Equipment on Eldar TTF Approved on Zalov’s Farm in Guba rayon 07/02/2018 9 Improvement of Orchard Production at TTF Approved on Shohrat Farzaliyev’s Fruit Farm in Gusar 26/02/2018 Rayon 10 Installation of Cold Storage Equipment on TTF Approved on Ayaz Alakbarov’s Farm in Gusar rayon 26/02/2018 11 Establishment of Pomegranate Seedling Nursery TTF Approved on for Mabat LLC in Kurdamir Rayon 30/05/2018 12 Establishment of hazelnut sapling nursery in Elvin TTF Approved on Osmanov’s farm in Zagatala rayon, Hasan 26/03/2018 Tarverdiyev’s farm in Gakh rayon, Fuad Eldarov’s farm in Khachmaz rayon 13 Installation of Cold Storage Equipment on Emin TTF Approved on Huseynov’s Farm in Samukh rayon 22/05/2018 14 Procurement of Agricultural Machineries and TTF Re-sent to Metal Detector for Azerbaijan Hazelnut USAID for Processors and Exporters Association (AHPEA) approval on 17/05/2018 15 Installation of Cold Storage Equipment on TTF Approved on Mohubbat Ibrahimov’s Farm in Lenkaran rayon 27/07/2018 16 Construction of Artesian Wells for Khaspoladoba TTF ERC returned Community for Irrigation of Hazelnut Orchards in with Khachmaz Rayon comments by
47 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
USAID on 28/09/2018
Status of ERCs and ROCs for ASAP Demo Plot Projects (October 2107- September 2018) No Project Name Type of ERC Status ROC Status Funding 1 Procurement of sprayers and rotary disc plow Demo Plot Approved on Approved on for Alamdar Gasimov’s pomegranate orchards 12/12/2016 21/05/2018 in Barda rayon 2 Procurement of farm attachments for Ekinchi Demo Plot Approved on Approved on BO LLC’s pomegranate orchard – Orengala 12/12/2016 21/05/2018 settlement, Beylagan rayon 3 Procurement of sprayers and rotary disc Demo Plot Approved on Approved on plow for Eyvaz Samedov’s pomegranate 12/12/2016 21/05/2018 orchards in Goychay rayon 4 Procurement of Equipment for Yunis Demo Plot Approved on Approved on Hafiz Namazov’s greenhouse through ASAP’s 02/03/2017 30/05/2018 Integrated Pest Management Demo Activity 5 Procurement of Items for Integrated Pest Demo Plot Approved on Approved on Management Demo Plot in Yegana Ismayilova’s 02/03/2017 22/05/2018 greenhouse 6 Introduction of a traveling gun irrigation unit at Demo Plot Approved on Approved on Mammad Alakbarov’s farm in Samukh rayon 29/12/2015 30/05/2018 7 Construction of Demonstration Greenhouse for Demo Plot Approved on Approved on Production of Strawberries, Raspberries, and 10/11/2015 22/05/2018 Blackberries 8 Improvement of Cherry Processing in Ayaz Demo Plot Approved on Approved on Alakbarov’s Orchard in Gusar Rayon 02/03/2017 30/05/2018 9 Procurement of modern air-blast and herbicide Demo Plot Approved on Approved on sprayers for Jabbar Heybatov’s orchards and 12/06/2017 13/08/2018 nurseries in Guba rayon 10 Introduction of a traveling gun irrigation unit for Demo Plot Approved on Approved on the purpose of improving soil fertility at Surayya 03/08/2015 11/09/2018 Ismailova’s farm in Tovuz rayon 11 Improvement of Kiwi Orchard in Sakhavat Demo Plot Approved on Sultanov’s Farm in Astara Rayon 13/07/2018
Microenterprise Assistance & Reporting
In FY 2018, ASAP greatly expanded its assistance to microenterprises by launching a nationwide group training program for smallholder agricultural growers in all five of the project’s targeted value chains. The group trainings were held each month throughout the year and addressed 48 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report topics relevant to each part of the growing season, including (depending on crop) winter pruning, green pruning, fertilization, irrigation, fertigation, spraying and other applications of micronutrients, Integrated Pest Management (IPM), harvesting, and postharvest management. Group trainings were provided in classroom settings as well as in the field, often utilizing ASAP’s Demonstration Plots, which model best agricultural practices, for practical training sessions. Project activities also included capacity building of field agronomists/trainers, curriculum development such as development of presentations, handouts, and grower guides, and building capacity of training centers by equipping them with furniture, audiovisual equipment, and practical field equipment. During FY 2018, ASAP assisted 1037 microenterprises, of which 59 were female, to implement proven agricultural practices and harvesting techniques for open- field and greenhouse operations. Based on ASAP’s annual survey, an estimated 985 improved practices, such as advanced pruning, fertilization, irrigation, and other cultivation techniques, were adopted by trainees as a result of this assistance, leading to improved yields and increased farmer incomes.
On December 15th, ASAP submitted the 2017 USAID Microenterprise Results Report (MRR), which details its assistance to microenterprises. During the latest reporting period, from October 2016 through September 2017, ASAP assisted 343 microenterprises, of which 19 were owned and operated by women.
Gender
Although the majority of agricultural workers in Azerbaijan are female, ownership and management are predominantly male. In order to encourage inclusive enterprise development, ASAP invites men and women to participate in all program activities. In order to integrate women into TTF opportunities, all agribusiness applicants are required to outline how female owners, managers, or employees will benefit from the requested assistance in their applications and receive additional points in the scoring process for enterprises owned by, managed by, or benefiting women. Approved TTF agreements also require discussion of how women will benefit from the requested assistance, and this impact will be tracked and evaluated over the life of the project. The evaluation process for applicants to ASAP's BSP Technical Assistance Matching Fund provides additional points for applications from women-owned or managed enterprises, or those employing or procuring from a significantly large share of woman or women-owned businesses. Result 2 extension service providers similarly have measurable gender-based impacts planned for female participation in their training. CNFA expects a minimum of 25% of direct Result 2 program beneficiaries (employees and farmers trained) to be women and will explore specific activities targeted at women or tailored to their needs should this percentage prove difficult to attain.
In FY 2018, USAID continued its focus on integrating Democracy, Human Rights and Governance principles into economic growth programming, especially to address gender equity/women empowerment, youth, and resilience issues. First, efforts focused on ensuring women’s full and effective participation in economic activities, specifically in agriculture. During
49 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report the reporting period, there were 1082 instances of ASAP short-term agricultural sector productivity training provided to 840 different women, and 10 women-owned agribusinesses assisted. This included at least ten women-owned, small- or medium-sized agribusinesses receiving project assistance to improve business operations and increase incomes. These results, while vast increases on the previous year’s results of 45 and 25, respectively, still represent significantly less than half of all trainees. However, it must be emphasized that Azerbaijan is a male-dominated culture and the vast majority of farm-owners and managers in the country are male. Owners and managers and/or husbands in rural areas are often reluctant to allow their female staff/spouses to attend trainings. In addition, the particular housework and childcare burden that falls on married women in the home takes up most of their non-work time.
USAID trained 352 female farmers on overall greenhouse management, as well as harvesting and packaging techniques, representing 552 separate instances of training. In the reporting period, ASAP introduced on-the-job greenhouse training sessions in order to reach women who were unable to attend classroom sessions in third-party locations. ASAP also provided field-based trainings to 36 female agronomy students from the Azerbaijan State Agricultural University (ASAU) in Ganja. In FY 2019, ASAP will expand its group training efforts, initiate a women’s grafting program to empower female beneficiaries to earn income through independent piecework to support intensive and semi-intensive orchard fruit production, and increase outreach to and collaboration with other USAID activities focused on fostering women’s entrepreneurship, such as the E4 and Women’s Participation Program, to further boost women’s access and participation in ASAP activities.
Youth
During FY 2018, ASAP placed an increased emphasis on facilitating youth participation in its activities. The project’s agronomist trainers expanded outreach to youth to identify them and encourage them to attend group trainings and also partnered with AgroCenter, a local training provider, to strengthen its two-year agronomist training program for students of Azerbaijan State Agricultural University (ASAU). Under ASAP, youth are defined as individuals under 30 years of age. Assistance to youth is important because unemployment among this group is significantly higher than for the population at large (13.79% among youth in 2017 versus an overall rate of less than 5%, according to the World Bank). Youth are also more vulnerable to the lure of violent extremism.
During the year, ASAP provided 415 youth (including 129 females) with training or other assistance in fruit, vegetable, and hazelnut production, including field-based trainings to a total of 115 agronomy students (36 women) from ASAU and the AgroCenter agronomist training program. Although agriculture is the most important economic activity in rural Azerbaijan, where ASAP activities are focused, interest in pursuing an agricultural career is low among Azerbaijan’s youth, even among students of agronomy. This is in part due to the generally low level of agricultural education at ASAU, and its mostly theoretical focus, far from the realities
50 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report of the actual needs of agricultural employers. Thus, ASAP group trainings addressed practical topics relevant to each part of the growing season, including winter pruning, green pruning, fertilization, irrigation, fertigation, spraying and other applications of micronutrients, IPM, harvesting, and postharvest management. Group trainings were provided in classroom settings as well as in the field, often utilizing ASAP’s Demonstration Plots, which model best agricultural practices in a practical setting, and allow students to interact with and ask questions of commercially engaged growers and processors. As a result of completing the AgroCenter agronomist training program, 10 students were offered jobs with Azerbaijani agribusinesses.
ICT
ASAP previously procured Plant Growth Stations and Portable Weather Monitors that, at regular intervals, automatically measure and record environmental data relevant to agricultural production, including temperature, humidity, solar radiation, and other parameters. This data can be uploaded to a computer for analysis and to drafting various charts, tables, and reports. The project has installed these units at various Demo Plots and other client operations and is utilizing them to provide customized analysis and growing recommendations for local plots. ASAP is also bringing together the data from various monitors to draft reports for the benefit of a broader group of local farmers, as meteorological and environmental data are extremely hard to access in Azerbaijan, which is one of many factors that makes decision-making particularly challenging for the country's growers. During the reporting period, ASAP purchased two new monitors of a new design. They are constructed with ultraviolet (UV) and rain protection that are specifically designed to calculate the “degree day accumulation” that correlates with the growth stage of cotton development, thereby allowing agronomists and researchers to predict pest problems and the harvest date. Most importantly, the new monitors, together with a computer program that manages the data, will aid in the selection of the best cotton varieties for these areas of Azerbaijan. They will be installed in the demonstration fields chosen by Texas A&M University (TAMU) under the program funded by AgroCenter. When the season is completed, ASAP, AgroCenter, and TAMU will have the first such data for Azerbaijan.
Preventing Violent Extremism
During PY4, ASAP began integrating work on Preventing Violent Extremism (PVE) into its programming, particularly in the Northwest, North, and South of Azerbaijan, areas that USAID research, including its September 2017 Azerbaijan Violent Extremism Risk Assessment, deemed most vulnerable to violent extremism. Late in PY3, program staff travelled extensively in the south to a wide variety of communities in the rayons of Jalilabad, Masalli, and Lenkaran to better explore the agricultural crops with the most potential and the most need for assistance, as well as to generate a PVE map and PowerPoint presentation to outline the areas at greatest risk. During PY4, ASAP worked closely with USAID and its EWMI-implemented Socio-Economic Development Activity (SEDA) to explore opportunities to collaborate to prevent the risk of VE through joint implementation of new community-based projects. 51 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
The first such project concept that was pursued concerned Khaspoladoba, a hazelnut-growing community in Khachmaz rayon. ASAP had already been working with the community for over a year on a hazelnut demonstration plot activity it had been implementing on six hectares of the community’s over 60 hectares of hazelnut production. The community had identified a lack of year-round irrigation water as a primary constraint to maximizing productivity of its hazelnut trees and had requested assistance in drilling two artesian wells to provide the orchards with a steady water supply. By combining SEDA’s expertise in engineering of water project and mobilizing communities to implement projects to address common needs with ASAP’s expertise in hazelnut production and relationship with the community, a joint ASAP-SEDA project was initiated to which each project contributed 50% of the cost. As of the end of PY4, ASAP was finalizing a grant package to be submitted to USAID for approval and implementation was expected to start in October 2018.
ASAP also met with SEDA late in PY4 to discuss a second possible joint PVE grant project. This activity would entail working with the community of Aliabad in Zagatala rayon to develop a fruit drying facility to help add value to plums and other produce grown by the community’s farmers. As of the end of PY4, ASAP was still researching the feasibility of the project concept in conjunction with community stakeholders. ASAP and SEDA also held multiple meetings in the Southern region of Azerbaijan to explore potential collaboration there, but by the end of PY4 had not yet identified a project concept that would overlap with both projects’ geographic and programmatic coverage areas there. During PY5, ASAP will continue to engage with SEDA and other USAID- and non-USAID-funded projects to explore opportunities to collaborate on projects to prevent violent extremism.
In all, trainings in these three regions reached nearly 1809 new vulnerable individuals, of which 430 were women. ASAP also designed a grant project to provide access to irrigation water in a small hazelnut-growing community in the northern region, just one village over from where a violent extremist act had been committed earlier in the year, and began designing for vulnerable communities in the northwest hazelnut and fruit-drying projects, as well as a machinery service center for hazelnut growers, all of which will be initiated in FY 2019. To try to capture this impact during FY 2019, ASAP plans to propose a new indicator: Number of vulnerable households benefiting directly from USG assistance. The proposed target for this indicator for FY 2019 is 700, including at least 350 youth.
Collaboration with other Assistance Efforts
In order to avoid overlap and better focus its resources, ASAP coordinates with other relevant USAID and other donor-funded activities. During PY4, ASAP met with the USAID-funded Socio-Economic Development Activity (SEDA) at least once quarterly to share information and explore opportunities for collaboration. Some of the resulting collaboration was outlined above in the PVE section of the present report. ASAP also considers assisting producers and processors who can benefit most to attend regional workshops and study tours in Georgia in collaboration with the USAID-funded Restoring Efficiency to Agriculture 52 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
Production (REAP) Project and Georgia Hazelnut Improvement Project (G-HIP) project. During PY4, the Azerbaijan buy-in to the USAID Regional Economic Growth Project (REG) also provided customized international training and technical assistance to ASAP and its beneficiaries, as is detailed in previous sections of the present report.
Collaboration with AgroCenter, a private Azerbaijani agricultural training provider, continued in PY4. In addition to facilitating a meeting between AgroCenter and Texas A&M University in College Station, Texas that led to an over $400,000 partnership between AgroCenter and Texas A&M University to boost cotton production in Azerbaijan, ASAP worked with AgroCenter on at least four additional initiatives during PY4. First, the organizations held joint classroom and field trainings for agronomy students from Azerbaijan State Agricultural University (ASAU) in Ganja. Second, they conducted a presentation to raise awareness of the threat of Brown Marmorated Stink Bug (BMSB) to Azerbaijani agriculture for both Ministry of Agriculture and private sector players. Third, they agreed to collaborate on implementing a nationwide BMSB monitoring program in late summer. While AgroCenter, as agreed, contributed 90% of the cost of procuring U.S.-manufactured traps and lures to monitor any possible BMSB infestation in Azerbaijan, and cleared them through customs, their delivery was too late in the year for them to be used in 2018. Nevertheless, they are now in country and will be ready for use in the summer of 2019. Finally, GIZ, the German technical assistance funder and provider, provided tentative agreement to provide matching funding to support the printing of ASAP-developed brochures on BMSB for distribution to trainees through upcoming joint ASAP-AgroCenter BMSB awareness-raising trainings.
ASAP also hosted a meeting in August with representatives from USAID, the Israeli Embassy, and AgroCenter. The meeting focused on the opportunity for ASAP and AgroCenter to apply to the Israeli MASHAV program to bring two Israeli pomegranate experts to Azerbaijan on an STTA basis in late 2018 in order to support the development of a pomegranate production manual and conduct trainings for professors and students from Azerbaijan State Agricultural University in Ganja, as well as professional agronomists and pomegranate growers.
In PY4, ASAP planned to coordinate closely with the anticipated new CNFA Europe- implemented and EU-funded, Azerbaijan Hazelnut and Pomegranate Initiative (AHPI). Although implementation remains contingent on successful registration of the project, the 30-month intensive agricultural project was designed to complement ASAP by directly addressing the challenges that smallholder farmers face, while simultaneously building upon the existing opportunities so that they become successful agricultural entrepreneurs. The two projects’ combined efforts will both strengthen the curriculum for improving hazelnut and pomegranate production practices and expand access to such training and small grants to an expanded audience of growers and communities.
In PY4, ASAP also made specific efforts to identify ways to collaborate with other USAID- funded activities, such as those implemented by IOM and UNDP as a result of the USAID field-based Portfolio Review that took place from October 30-November 2, 2017 in Ganja. Although neither or these efforts resulted in successful collaboration, during the upcoming fall 53 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
2018 USAID field-based Portfolio Review in Guba, ASAP will continue exploring opportunities for collaboration with these and other active USAID projects.
Key Constraints and Lessons Learned
Over the life of the project, ASAP has identified various key constraints and lessons learned from its activities. The most significant of these are outlined below and are divided between those that have been noted in previous annual reports and those that we are emphasizing here for the first time.
Previously Noted:
Lack of Project Registration: Although all required ASAP registration documents were submitted to the proper authorities in October 2014, again in August 2015, and then a third time in May 2016, and the project was finally contacted by the Ministry of Justice in August 2018, formal legal registration in Azerbaijan was still not completed by the end of PY4. As noted in previous reports, the requirement that projects be legally registered in Azerbaijan prior to initiating assistance activities led to the project maintaining a low profile and avoiding formal group training activities (which were anticipated to comprise the bulk of Result 2 assistance efforts) until PY4. While CNFA, in coordination with USAID, decided to initiate group trainings starting in PY4 through the auspices of its beneficiary associations and the training rooms of its local agronomists, which the project equipped, lack of registration still imposes some constraints on how open the project can be about the scope of its activities. Perhaps just as significantly, lack of registration constrains some potential partner government institutions from directly coordinating with or collaborating with the project. Nevertheless, ASAP has been able to provide extensive technical advice to clients on an individual and firm-level basis, and was even able to initiate some limited collaborative work with the government of Azerbaijan during PY4 via partner organization AgroCenter (see previous section of this report for details).
Economic Environment and Lack of Credit: In addition, as indicated regarding specific clients earlier in this report, the economic crises in Russia and Ukraine, by far the biggest agricultural export markets for Azerbaijan, as well as the substantial devaluation of the Azeri manat in December 2015 (in addition to an earlier devaluation the previous February), cut the AZN’s strength against major Western currencies in half, while significantly dampening business confidence among agricultural entrepreneurs. Many agricultural inputs are imported from countries with currencies that have strengthened versus the Azeri manat, while the traditional markets for Azeri produce have currencies that have weakened relative to the currencies of the sources of the aforementioned inputs. As a result, exports to traditional markets are less profitable at a time when demand has also slowed. In addition, tightened credit markets have made it harder to obtain financing even for those Azeri entrepreneurs who remain confident in their business prospects. Furthermore, there has been continued uncertainty as to the actual costs (including unofficial "fees") of clearing shipments through customs, further dampening
54 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report trade at a time when lower incomes have already curtailed economic activity in general and trade in particular, as well as decreasing government revenues. Not surprisingly, the volatility caused by all of these factors led to greater caution on the part of some entrepreneurs. Several ASAP clients scaled back or put on hold their investment plans. ASAP continued to seek out new clients and remains optimistic that there will be sufficient opportunities to work with clients through its various assistance mechanisms. However, implementation of some Demo Plot, TTF, and Matching Fund investments has at times been delayed with existing clients or in some cases collaboration with specific clients needed to be discontinued and new projects identified to take their place.
Newly Noted:
Lack of Trained Agronomists: One of the key constraints is a lack of agronomists with proper skills and knowledge of modern cultivation practices. This is tied to there being only one agricultural university in the country, the Azerbaijan State Agricultural University (ASAU) in Ganja, which has quite uneven and mostly outdated faculty and facilities at its disposal. With that in mind, ASAP partnered with ASAU to provide trainings to university students in order to enhance their practical knowledge of orchard management. Similar trainings need to be continued in the future even after the end of the ASAP Program.
Lack of Modern Curricula: Related to the poor quality of agronomists and agronomic education is the lack of available literature on modern production practices. To address this for pomegranate and persimmon growers, ASAP has begun adapting existing materials in other languages and drafting new material to produce an Azerbaijani language curriculum. The next step will be to develop this into a pomegranate production manual that will be peer-reviewed by Israeli experts who are scheduled to come to Azerbaijan in late 2018 through ASAP collaboration with the MASHAV program and AgroCenter, the latter organization which will be responsible for turning the material into formal lesson plans that will be professionally formatted and published to support high-quality trainings in PY 5 and eventual use by ASAU. While providing the Hazelnut Value Chain with such a manual was simplified by ASAP’s success in gaining permission from Ferrero/AgriGeorgia to translate and adapt its production manual into Azerbaijani, the project does not have such a luxury for all of its value chains. Getting local agronomists to document their lesson plans in writing and work with ASAP to develop formal presentations has required extensive oversight, as well as translation and constant updating to ensure that the most up-to-date materials are in use.
Limited Awareness of Azerbaijan Makes Establishing U.S. Linkages Difficult: Establishing linkages with the US-based companies is another challenge, as they lack information and knowledge about Azerbaijan and Azerbaijani agribusinesses, thus remaining skeptical about both the scope of the business opportunity, the capacity of the country to protect intellectual property, and the sophistication of the country’s businesses to engage in international commerce. In some cases, this skepticism is warranted, as mislabeling, piracy, and a flawed justice system are indeed present. However, the country is taking important steps forward and ASAP’s role in facilitating
55 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report introductions, providing good background information, facilitating communication, and responding to questions and concerns as potential partners negotiate with one another is providing to be critical, as is the role that the Commercial Department of the U.S. Embassy in Baku can play in establishing the credibility of Azerbaijani agribusinesses and the resources that are offered through the U.S. Embassy to facilitate such new linkages. The distributorship established by Azer Amiraslanov with U.S. specialty fertilizer formulator Grow More is a notable example of how B2B meetings can help facilitate and strengthen such linkages.
Engaging Women Beneficiaries Remains a Challenge: Involving women in ASAP agricultural trainings was another constraint mainly due to the conservative nature of the Azerbaijani society. Women will be more willing to participate in trainings if they are conducted by women trainers, but as noted above, even identifying qualified male trainers is a real challenge in the local environment. While ASAP will try to engage some women trainers and perhaps even current female agronomy students during PY5, a more realistic short-term goal may be simply trying to offer more trainings for women-only audiences.
56 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
Appendices
A. Impact Indicator Tables
B. Short-Term Technical Assistance/International Assignments
C. Technology Transfer Fund (TTF) Status Updates
D. Demo Plot Status Updates E. Success Stories
57 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
APPENDIX A: Impact Indicator Tables
Impact Indicator Table 1:
Indicator Actual for Total for PY 4 Total Project to Target Comments on September Data September Date PY4 1. Number of individuals who M F M F M F 2,500 16-group training in Orchard VC, Guba region; have received USG-supported 45-group training in Hazelnut VC, Khachmaz region; short-term agricultural sector 260 86 3,661 1,082 5,667 1,214 32- group training in Hazelnut VC, Gakh-Zagatala region; productivity training 90-group training in Berry VC, Jalilabad region; 11-group training in Berry VC, Lenkaran region; 6-TA in Berry VC, Lenkaran region; Youth Participation 47-group training in Pomegranate VC, Goychay region; in PY4 16-group training in Persimmon VC, Goychay region; 520 187 4-TA in Pomegranate VC; 3-TA in Persimmon VC; 41-TA in Vegetable VC, Shamkir region 2. Number of improved Annual 1,038 1,133 650 Annual Survey results is 1,037; agricultural practices adopted survey Since the start of the PY4, the local agronomist Allahverdi Kazimov by farmers and agribusinesses supported Kerim Hasanov (0.35 ha) who adopted the provided (microenterprises only) recommendations. 3. Number of agribusinesses 0 18 133 22 receiving customized/direct USG supported assistance (improving management practices, investment, technical assistance, etc.) 3b. Number of agribusinesses 0 12 53 10 receiving customized/direct USG supported assistance in improving management practices, investment, and business linkages, or finance only
58 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
4. Number of farmers and 8 25 118 18 Since the start of the PY4, the local agronomist Allahverdi Kazimov others who have applied new supported the following new farmers, who adopted the provided technologies or management recommendations: practices as a result of USG Bayram Gurbanov 0.70ha assistance Nazim Ibrahimov 2ha Zaur Seyidov 0.50 ha Ogtay Gurbanov 1.7ha Fariz Hasanov 2.5ha Bayram Salmanov 0.5ha Asim Sadikhov 2.20ha Agil Mammadov 1ha 5. Number of beneficiaries 0 56 294 100 provided training or TA on food safety and quality standards or practices 6. Number of food safety and 2 16 79 20 Hazelnut Processor Atababa LLC Gakh received ISO 22000 quality standards or practices Hazelnut Processor KhanEl, Khachmaz received ISO 22000 adopted 7. Number of information and 0 4 17 10 support service providers strengthened 8. Increased value of domestic Annual USD 4,724,865 Berry: 40% +20% sales of Value Chain products survey Vegetable: 35% by assisted farmers and Orchard: 42% agribusinesses Pomegranate/Persimmon: -12% Hazelnut: 98% 9. Increased value of exports Annual USD 16,015,735 Berry: 10% +20% of targeted agricultural survey Vegetable: 27% commodities as a result of Orchard: (5)% USG assistance Pomegranate/Persimmon: 59% Hazelnut: 20% 10. Number of assisted firms 0 252 135 18 that invest in improved
2 As a result of the annual data quality check, the annual result for this indicator has been modified to match indicator #4, as all the new agribusinesses the Project began supporting have invested in applying new practices. 59 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
technologies as a result of project assistance 11. Number of hectares under 1,291.45 ha 1,676 ha 2,963.8 ha 700 • Since the start of the PY4, the local agronomist Allahverdi improved technologies or Kazimov supported the following new farmers, who adopted the management practices as a provided recommendations: result of USG assistance Bayram Gurbanov 0.70ha Nazim Ibrahimov 2ha Zaur Seyidov 0.50 ha Ogtay Gurbanov 1.7ha Kerim Hasanov 0.35 ha Fariz Hasanov 2.5ha Bayram Salmanov 0.5ha Asim Sadikhov 2.20ha Agil Mammadov 1ha • 1,280 ha - Total size of the farmland of surveyed farmers who applied the knowledge and were not reported previously 12. Value of investment in 0 USD3 (AZN) 2,118,053 USD 9,888,044 USD4 2,300,000 $397,654- Jaarchi Hajiyev, Shohrat Farzaliyev, Miragha Hasanov and improved technologies and USD Aladdin Fermer made client investment in TTF projects during PY4. agricultural and rural loans by 50,000 AZN ($29,411) - Mars FK received loan from Unibank assisted firms 13. Number of financial NA 20 20 10 1-Mabat LLC received loan from Unibank; consultations, coaching 2-Research reports shared with the beneficiaries: “Are banks lending to instances, financial research business?” and “Factors affecting the currency market and forecast for reports shared and loans manat's rate in 2018” facilitated 17-supported beneficiaries to develop balance sheets and income statements as a part of TTF application 14. Number of vulnerable 190 1,809 M F 1,500 Farmers trained in Astara, Masalli, Lenkaran, Jalilabad, Zagatala, households benefiting directly Gakh, Guba, Gusar, Khachmaz regions from USG assistance* 1,379 430
3 $1=1.70 AZN rate was used to convert AZN amount into dollars. 4 In the June 22nd, 2018 dated revision of the MEP, ‘Value of investment in improved technologies by assisted firms’ was combined with the indicator ‘Value of agricultural and rural loans.’ Therefore, this total includes the Project total for both of the old indicators. 60 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
15. Number of US business NA 5 5 New • Texas A&M University collaboration with AgroCenter linkages made as a result of indicator • Grow More, Inc. distributorship with Vatan-AZ USG-supported assistance • Viveros California seedling purchase by Berry Association • Aztexnika/John Deere • Spectrum Technologies, Inc. one-year contract with SMINAgro 16. Value of the US exports to NA $832,176 $832,176 New • $405,000 - Texas A&M University Azerbaijan as a result of USG- indicator • $206,000 – Grow More, Inc. supported business linkages • $46,176 – Viveros California $100,000 – Aztexnika/John Deere • $75,000 – Spectrum
61 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
Impact Indicator Table 2: Reasons for Deviations between Targets and Actuals
Indicator Total for PY 4 Target Reason for Actual’s Deviation PY4 (if any) from the Target 1. Number of individuals who have received USG-supported M F 2,500 short-term agricultural sector productivity training 3,661 1,082 Achieved
2. Number of improved agricultural practices adopted by farmers 1,038 650 Achieved and agribusinesses
3. Number of agribusinesses receiving customized/direct USG 18 22 Achieved supported assistance (improving management practices, investment, technical assistance, etc.) 3b. Number of agribusinesses receiving customized/direct USG 12 10 Achieved supported assistance in improving management practices, investment, or finance only 4. Number of farmers and others who have applied new 25 18 Achieved technologies or management practices as a result of USG assistance 5. Number of beneficiaries provided training or TA on food 56 100 Food Safety and Quality Specialist took on additional safety and quality standards or practices responsibilities for coordination of Southern region activities and U.S. linkages, leaving less time available to devote to original responsibility area 6. Number of food safety and quality standards or practices 16 16 Achieved adopted 7. Number of information and support service providers 4 10 Reduced budget for and programmatic focus on (based on strengthened limited beneficiary interest in) ASAP’s BSP Matching Fund 8. Increased value of domestic sales of Value Chain products by Berry: 40% +20% Reasons are listed in the Monitoring and Evaluation Section assisted farmers and agribusinesses Vegetable: 35% of the report Orchard: 42% Pomegranate/ Persimmon:(12)% Hazelnut: 98% 62 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
9. Increased value of exports of targeted agricultural Berry: 10% +20% Reasons are listed in the Monitoring and Evaluation Section commodities as a result of USG assistance Vegetable: 27% of the report Orchard: (5)% Pomegranate/ Persimmon:59% Hazelnut: 20% 10. Number of assisted firms that invest in improved 25 18 Achieved technologies as a result of project assistance 11. Number of hectares under improved technologies or 1,676 ha 700 Achieved management practices as a result of USG assistance 12. Value of investment in improved technologies and 2,118,053 USD 2,300,000 USD Difficult credit environment, some delays in TTF agricultural and rural loans by assisted firms implementation 13. Number of financial consultations, coaching instances, 20 10 Achieved financial research reports shared and loans facilitated 14. Number of vulnerable households benefiting directly from 1,809 1,500 Achieved USG assistance* 15. Number of US business linkages made as a result of USG- 5 New indicator NA supported assistance 16. Value of the US exports to Azerbaijan as a result of USG- $832,176 New indicator NA supported business linkages
63 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
Impact Indicator Table 3: Actual Result Detail, by Indicator
Indicator Total for PY Total Project to Target Details for the reported PY4 Data 4 Date PY4 1. Number of individuals who have M F M F 2,500 received USG-supported short-term agricultural sector productivity 3,661 1,082 5,667 1,214 training 2. Number of improved agricultural 1,038 1,133 650 March 2018: practices adopted by farmers and 9-kiwi and feijoa growers Nurlan Asgerov, Elvin Gadimov, Emil Babayev, agribusinesses Agamir Kazimov, Aliyev Nevai, Pirizade Araz, Saleh Hasanov, Murad Akberov, Bakhtiyar Jabiyev applied fertilizers, plowing and restoration of irrigation channels as per ASAP’s recommendations. September 2018: Since the start of the PY4, the local agronomist Allahverdi Kazimov supported Kerim Hasanov (0.35 ha) who adopted the provided recommendations. Annual Survey results is 1,037; 3. Number of agribusinesses 18 133 22 December 2017: receiving customized/direct USG 1- ASAP beneficiary farmer and agronomist received assistance on developing supported assistance (improving his presentation skills; management practices, investment, 1 – Ayaz Alakbarov received knowledge on establishing and running new technical assistance, etc.) cooperative company consisting of three farmers; 1 – AHPEA received assistance on developing its membership and reporting structure to the association members January 2018: Firdovsi Aliyev, Habib Dadashov, Bahar Bedelov, German Shixaliyev, Yashar Ziyadxanov and Elbrus Jabrayilov started to receive ASAP assistance. February 2018: 1 – AS Agro Co LLC received assistance on adopting food safety certification requirements May 2018: 1-Rafiq Cafarov applied weed control recommendations on feijoa orchard; 1-Babakishi Ibrahimov applied recommendations on weed control and repairing irrigation channels on feijoa and kiwi orchards; 1-Ulvi Isgandarzadeh adopted good agricultural practices on his pomegranate orchard in Borsunlu village, Goranboy;
64 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
1-Ibrahim Mammadov adopted good agricultural practices on his pomegranate orchard in Garadirnag village, Barda; 1-Balakans LLC adopted good agricultural practices on its pomegranate orchard, Chuxhanli village, Salyan; 1-Agshin Babayev adopted good agricultural practices on his pomegranate orchard. June 2018: 1-Rovshan Badalov applied the knowledge he acquired during the trainings organized by ASAP on his six-hectare intensive orchard 3b. Number of agribusinesses 12 53 10 November 2017: receiving customized/direct USG 1 - Kaslar was linked and visited Greenyard in Austria supported assistance in improving 2 - Patil Biotech Pvt. Ltd was linked with Gilan and AzGranata with the management practices, investment, or intention to assist other pomegranate companies on organic production finance only 1 – Antim LLC was directed to Aznar to sell pomegranate seeds left after processing in its newly established processing facility January 2018: 1 – Ayaz Alakbarov in contact with Kolarit-A, Bay-So, and Titan to do more research in cold storage establishment. May 2018: 1-Thanks to ASAP’s recommendations, there is significant improvement in the day-to-day operations of Alamdar Gasimov farm. June 2018: 4-ASAP linked and facilitated Emin Huseynov, Miragha Hasanov, Mammad Alakbarov, and Azer Amiraslanov’s purchase or strawberry seedlings from a provider of American varieties of seedlings, Viveros California; 1-Azer Amiraslanov received American company Grow More’s distributorship with ASAP’s facilitation; 1-Mabat LLC contacted Pasha bank for rural loan after one on one meeting with ASAP specialist and reading the report on developed by ASAP on rural loans 4. Number of farmers and others who 25 118 18 1. Mabat LLC have applied new technologies or 2. Rahile Muradova management practices as a result of 3. Ali Bagirov USG assistance 4. Feqani Malikov 5. Firdovsi Aliyev, 6. Habib Dadashov, 7. Bahar Bedelov, 8. German Shixaliyev, 9. Yashar Ziyadxanov 10. Elbrus Jabrayilov 65 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
11. Rafiq Cafarov 12. Babakishi Ibrahimov 13. Ulvi Isgandarzadeh 14. Ibrahim Mammadov 15. Balakans LLC 16. Agshin Babayev 17. Rovshan Badalov Since the start of the PY4, the local agronomist Allahverdi Kazimov supported the following new farmers, who adopted the provided recommendations: 18. Bayram Gurbanov 0.70ha 19. Nazim Ibrahimov 2ha 20. Zaur Seyidov 0.50 ha 21. Ogtay Gurbanov 1.7ha 22. Fariz Hasanov 2.5ha 23. Bayram Salmanov 0.5ha 24. Asim Sadikhov 2.20ha 25. Agil Mammadov 1ha 5. Number of beneficiaries provided 56 294 100 October2017: training or TA on food safety and TA on the following elements of GlobalG.A.P.: quality standards or practices 3- Filling internal audit checklist at Mars FK 3- Taken soil samples for lab tests at Mars FK November 2017: 2 – Jarchi Hajiyev and Vugar Hagverdiyev received TA on proper warehouse construction based on ISO 22000 standard’s requirements. February 2018: 3 - TA in Green Factory (Sheki) on Personal Hygiene Procedure. March 2018: 3-Emin Huseynov’s team recommendations provided during the initial GlobalG.A.P. assessment; 6-Vugar Hagverdiyev and Jaarchi Hagverdiyev’s team received recommendations regarding to the construction of warehouse in accordance to ISO 22000. April 2018: 6-Vugar Hagverdiyev and Jaarchi Hagverdiyev’s team received recommendations regarding to the construction of warehouse in accordance to ISO 22000; 3-Rashad Shirinov’s team received recommendations on the elements of GlobalG.A.P.;
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May 2018: 3-Buta LLC on GlobalG.A.P.; 3-Balakan Foods on ISO 22000; 2-Rashad Shirinov’s farm on GlobalG.A.P. June 2018: 5-Rashad Shirinov’s farm on GlobalG.A.P. July 2018: 6-training to Rashad Shirinov’s farm on GlobalG.A.P. August 2018: 3-TA on Personal Health and medical tests element of GlobalG.A.P. in Red Valley 3-TA on General Guidelines and Documentation element of Organic standards on Agrarco 6. Number of food safety and quality 16 79 16 October 2017: standards or practices adopted Mars FK adopted internal audit procedures of the GlobalG.A.P. standard. November 2017: 1 – Mars FK obtained GlobalG.A.P. certificate January 2018: 1 – AS Group obtained GlobalG.A.P. certificate. ASAP assisted this company with half of the certification process efforts. March 2018: 1-Jaarchi Hagverdiyev recommendations regarding to the construction of warehouse in accordance to ISO 22000. April 2018: ASAP supported AgroCenter’s operations. May 2018: 2-Rashad Shirinov adopted maintenance of facilities and equipment and record keeping elements of GlobalG.A.P. standard. June 2018: 3-Rashad Shirinov adopted personal hygiene, putting up sign boards, readiness to respond to emergency situations and provide emergency medical care elements of GlobalG.A.P. standard. July 2018: 3-Rashad Shirinov adopted requirements for spraying, storing, waste management and visitor safety elements of GlobalG.A.P. standard. September 2018: 67 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
Hazelnut Processor Atababa LLC Qakh received ISO 22000 Hazelnut Processor KhanEl, Khachmaz received ISO 22000 7. Number of information and support 4 17 10 December 2017: service providers strengthened 2 – Mobil Panjaliyev and Adalat Nehmetov were hired and trained by ASAP to serve the farmers in the Southern region 8. Increased value of domestic sales Berry: 40% Berry: 40% +20% of Value Chain products by assisted Vegetable: 35% Vegetable: 35% farmers and agribusinesses Orchard: 42% Orchard: 42% Pomegranate/ Pomegranate/ Persimmon:(12)% Persimmon:(12)% Hazelnut: 98% Hazelnut: 98% 9. Increased value of exports of Berry: 10% Berry: 10% +20% targeted agricultural commodities as a Vegetable: 27% Vegetable: 27% result of USG assistance Orchard: (5)% Orchard: (5)% Pomegranate/Persi Pomegranate/Persim mmon:59% mon:59% Hazelnut: 20% Hazelnut: 20% 10. Number of assisted firms that 25 135 18 November 2017: invest in improved technologies as a 1 – Vagif Tagiyev started to establish orchard and nursery as a result of the result of project assistance experience he gained during ASAP organized study tours; 1 – Greenhouse farmer Rahile Muradova started to invest in ASAP recommended greenhouse management practices; December 2017: Ali Bagirov and Feqani Malikov invested in establishing new intensive orchards (apple, cherry, quince) with ASAP’s supervision January 2018: Firdovsi Aliyev, Habib Dadashov, Bahar Bedelov, German Shixaliyev, Yashar Ziyadxanov and Elbrus Jabrayilov invested in establishing a new orchard with ASAP’s supervision. May 2018: 1-Rafiq Cafarov applied weed control recommendations on feijoa orchard; 1-Babakishi Ibrahimov applied recommendations on weed control and repairing irrigation channels on feijoa and kiwi orchards; 1-Ulvi Isgandarzadeh adopted good agricultural practices on his pomegranate orchard in Borsunlu village, Goranboy; 1-Ibrahim Mammadov adopted good agricultural practices on his pomegranate orchard in Garadirnag village, Barda; 68 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
1-Balakans LLC adopted good agricultural practices on its pomegranate orchard, Chuxhanli village, Salyan; 1-Agshin Babayev adopted good agricultural practices on his pomegranate orchard in Garamaryam village, Goychay June 2018: Rovshan Badalov applied the knowledge he acquired during the trainings organized by ASAP on his six-hectare intensive orchard 11. Number of hectares under 1,676 ha 2,963.8 ha 700 November 2017: improved technologies or 3 ha - Ibrahim Sheydayev started to prepare land to establish new orchard with management practices as a result of ASAP’s supervision; USG assistance 3 ha - Zakir Karimov started to prepare land to establish a new orchard; 5 ha - Eldar Zalov started to prepare land to establish a new orchard; 11 ha – Ayaz Alakbarov started to prepare land to establish a new orchard; 12 ha – pomegranate farmers Murad Maksudov and Mubariz Nuriyev applied good agricultural practices in their farms; 11 ha – Vagif Tagiyev spent on purchase of land to establish quins and pomegranate orchard and pomegranate nursery; 4 ha – Agrointernational LLC started to establish new intensive apple and pear orchards; 0.8 ha -Greenhouse farmer Rahile Muradova started to apply ASAP recommended greenhouse management practices December 2017: 17 ha – Ali Bagirov started to prepare land to establish new intensive orchards (apple, cherry, quince) with ASAP’s supervision; 14 ha – Feqani Malikov started to prepare land to establish new intensive apple (8 ha) and cherry (6 ha) orchards with ASAP’s supervision. January 2018: 7 ha – Firdovsi Aliyev started to establish a new pomegranate orchard with ASAP’s supervision; 6 ha - Elbrus Jabrayilov started to establish a new pomegranate orchard with ASAP’s supervision; 8 ha – Habib Dadashov established intensive apple orchard with ASAP assistance;
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8 ha – German Shixaliyev established (2 ha) new intensive orchard and started to receive assistance on agricultural practices on his existing farm (6 ha) from ASAP; 1.86 ha – Yashar Ziyadxanov started to establish intensive orchard with ASAP assistance; 48 ha – Bahar Badalova started to establish intensive orchards with ASAP assistance. February 2018: 10 ha - AS Agro greenhouses are now managed according to the food safety standards as a result of ASAP assistance. March 2018: 7.5 ha-kiwi and feijoa growers Nurlan Asgerov, Elvin Gadimov, Emil Babayev, Agamir Kazimov, Aliyev Nevai, Pirizade Araz, Saleh Hasanov, Murad Akberov, Bakhtiyar Jabiyev applied fertilizers, plowing and restoration of irrigation channels as per ASAP’s recommendations. April 2018: 8-Zaur Hajiyev applied good agricultural activities on 4ha pomegranate orchard he purchased and established new 4 ha persimmon orchard. May 2018: 12 ha-Rafiq Cafarov applied weed control recommendations on feijoa orchard; 2 ha-Babakishi Ibrahimov applied recommendations on weed control and repairing irrigation channels on feijoa and kiwi orchards; 55 ha-Ulvi Isgandarzadeh adopted good agricultural practices on his pomegranate orchard in Borsunlu village, Goranboy; 5ha-Ibrahim Mammadov adopted good agricultural practices on his pomegranate orchard in Garadirnag village, Barda; 54 ha-Balakans LLC adopted good agricultural practices on its pomegranate orchard, Chuxhanli village, Salyan; 54 ha-Agshin Babayev adopted good agricultural practices on his pomegranate orchard in Garamaryam village, Goychay June 2018: 6 ha-Rovshan Badalov applied the knowledge he acquired during the trainings organized by ASAP on his six-hectare intensive orchard September 2018:
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Since the start of the PY4, the local agronomist Allahverdi Kazimov supported the following new farmers, who adopted the provided recommendations: Bayram Gurbanov 0.70ha Nazim Ibrahimov 2ha Zaur Seyidov 0.50 ha Ogtay Gurbanov 1.7ha Kerim Hasanov 0.35 ha Fariz Hasanov 2.5ha Bayram Salmanov 0.5ha Asim Sadikhov 2.20ha Agil Mammadov 1ha 12. Value of investment in improved 2,118,053 USD 9,888,044 USD 2,300,000 October 2017: technologies and agricultural and USD 20,100 AZN – Mars FK invested in making the proper changes to its facility in rural loans by assisted firms order to comply with the GlobalG.A.P. standard 9,800 AZN – Ayaz Alakbarov spent on pruning and branch tying in intensive apple orchard; Weed control activities; Winter treatment in cherry and nectarine orchards 17,000 AZN – Jabbar Heybatov continued to spend on construction work of office/training center and shelter 15,900 AZN – Eldar Zalov spent on pruning of young cherry orchard, and apple orchards, tying the branches of intensive apple trees and weed control activities 14,800 AZN – Zakir Karimov spent on pruning and tying the branches of intensive apple trees, weed control activities 1050 AZN – Musa Huseynov spent on pruning and tying the branches of intensive apple orchards and weed control activities 1,300 AZN - Jeyhun Abdullayev spent on pruning and tying the branches of intensive apple trees and weed control activities 10,600 AZN – Agrointernational LLC spent on tying apple branches to the trellis wire and weed control activities 4,500 AZN – Abumuslim Qazibeyov spent on pruning and tying the new branches to the trellis wire in intensive apple orchard and some renovation work 12,500 AZN- Shohret Farzaliyev spent on preparing the land to establish orchard, developing water channels which will lead to the water reservoir and preparation of topographic map of the farm. November 2017:
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$20,000 (34,000 AZN) - Jaarchi Hajiyev spent on the renovation of the warehouse building and other equipment in order to place the roasting line within the TTF project; 90,000 AZN – Vugar Hagverdiyev purchased 0.1 hectare of land to expand his processing facility; 41,000 AZN – Shohret Farzaliyev spent on purchasing seedlings from Beta Fidan that he was linked with ASAP assistance; 3,200 AZN – Ibrahim Sheydayev started to prepare 3 ha land to establish new orchard with ASAP’s supervision; 8,700 AZN – Agrointernational spent on preparing land for establishing new orchard; 2,400 AZN – Jeyhun Abdullayev spent on pruning and tying intensive apple trees and winter pruning; 1,850 AZN – Musa Huseynov spent on pruning and tying intensive apple trees and weed control activities; 6,400 AZN – Zakir Karimov spent on winter treatment of pear and apple orchards and preparation of 3 ha land to establish a new orchard; 9,000 AZN – Eldar Zalov spent on preparation of 5 ha land to establish a new orchard; 8,400 AZN – Jabbar Heybatov continued to spend on construction of shelter near the office-training center; 16,500 AZN – Ayaz Alakbarov spent on preparation of 11 ha land to establish a new orchard; 40,000 AZN – Vagif Tagiyev spent on purchase of 11 ha land to establish quins and pomegranate orchard and pomegranate nursery based on the skills and practices learned during study tours to Israel and Italy; 55,000 AZN - Mars company also invested on improvement of its farm and cold storage area to meet Global G.A.P standards; December 2017: 12,500 AZN – Jaarchi Hajiyev spent on the renovation of the warehouse building and other equipment in order to place the roasting line within the TTF project; 41,650 AZN (24,500 USD) - Jaarchi Hajiyev spent on the material and installation of drying barrels - two dryers and the furnace, as a part of roasting line TTF project; 5,100 AZN (3,000 USD) - Jaarchi Hajiyev spent on training in Turkey as a part of roasting line TTF project; 15,000 AZN – Vugar Hagverdiyev on the groundworks and some construction to expand his processing facility; 72 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
27,000 AZN – Shohret Farzaliyev spent on digging the holes for planting the trees and establishing an artificial lake; 2,800 AZN – Ibrahim Sheydayev continued to prepare 3 ha land to establish new orchard with ASAP’s supervision; 6,500 AZN – Agrointernational continued spent on preparing land for establishing new orchard; 3,800 AZN – Jeyhun Abdullayev continued to spend on pruning and tying intensive apple trees; 800 AZN – Musa Huseynov continued to spend on pruning and tying intensive apple trees and weed control activities; 11,000 AZN – Zakir Karimov continued to spend on preparation of 3 ha land to establish a new orchard; 4,800 AZN – Eldar Zalov continued to spend on preparation of 5 ha land to establish a new orchard; 6,000 AZN – Jabbar Heybatov spent on construction water reservoir; 40,000 AZN – Ayaz Alakbarov continued to spend on preparation of 11 ha land to establish a new orchard; January 2018: 12,000 AZN – Elbrus Jabrayilov spent on establishing new persimmon orchard on 6 ha; 49,000 AZN – Firdovsi Aliyev spent to establish 7 ha pomegranate orchard with ASAP’s supervision; 40,000 AZN – Zaur Hajiyev spent on purchase of 5 ha land to establish new orchards; 15,000 AZN – Vugar Hagverdiyev on construction to expand his processing facility; 65,000 AZN – Ayaz Alakbarov spent on purchasing seedlings and planting them to establish a new orchard; 13,000 AZN – Jabbar Heybatov spent on developing water reservoir for improving water quality of irrigation system; 40,000 AZN – Eldar Zalov spent on purchasing new seedlings to be planted at the newly established orchard and pruning the existing orchard; 40,000 AZN – Zakir Karimov spent on purchasing several equipment for improving the irrigation quality; purchase of the remaining part of the seedlings and pillars for the new orchard establishment; 5,800 AZN – Agrointernational LLC spent on pruning of apple orchards; 9,800 AZN – Ibrahim Sheydayev spent on purchasing part of the seedlings for establishing a new orchard and planting them on 3 ha land; 45,000 AZN – Shohret Farzaliyev spent on planting activities of stone fruits; 73 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
14,500 AZN – Ali Bagirov spent on fencing the orchard and planting the seedlings; 53,554 AZN – Afsana M., Araz V., Elgun H., Jeyhun H., Nurlan M., Zahid M., Akbar R., Bakhtiyar S., Hafiz N., Mirza M., Ruslan A., Rustabil A., Urfan A., Vidadi H. spent on fertilization of their greenhouses as per ASAP’s recommendation; 4,500 AZN – Etbar Maharramov spent on renewing the polyethylene cover of 1 ha greenhouse and fertilization activities. February 2018: 1,020 AZN – Murad Maqsudov spent on fertilization of his pomegranate orchard; 3,000 AZN – Mubariz Nuriyev spent on fertilization of his pomegranate orchard; 5,000 AZN – Eyvaz Samedov spent on fertilization of his pomegranate orchard; 6,430 AZN – Alamdar Gasimov spent on fertilization and pruning activities; 4,900 AZN – Antim LLC spent on pruning and shaping activities; 46,400 AZN – Afsan G., Afsana M., Akbar R., Araz V., Arzu Sadixov, Eldar G., Elgun H., Etibal A., Etibar M., Huseynali B., Ilgar M., Yasin A., Jeyhun H., Reshad G., Rovshen M., Sahil A., Saleh A., Ucar Q., Yegane I., Vidadi H., and Zahid M. spent on fertilization of their greenhouses as per ASAP’s recommendation; 135,000 AZN – Ayaz Alakbarov spent on purchasing new irrigation equipment and establishing two water reservoirs of the new orchard; 11,900 AZN – Zakir Karimov spent on purchasing of concreate tiles for establishing the intensive orchard; 70,000 AZN – Agrointernational LLC spent on purchasing and shipping 2,500 nectarine and 560 cherry seedlings; 2,200 AZN – Ibrahim Sheydayev spent on planting activities for establishing a new orchard; 1,800 AZN – Shohret Farzaliyev spent on initial pruning of the newly planted seedlings; 5,200 AZN – Ali Bagirov spent on reforming the water reservoir and planting the seedlings. March 2018: 4,500 AZN-Eyvaz Samadov spent on pruning and treatment activities done after pruning; 8,000 AZN-Ekinchi BO LLC spent on pruning activities; 4,800 AZN-Alamdar Gasimov spent on application of treatment activities done after pruning; 58,000 AZN-Ayaz Alakbarov spent on 1) disease control of nectarine orchards; 2) establishing an orchard with stone fruits; 3) disease control of apple orchards; 17,500 AZN-Eldar Zalov spent on planting different sorts of apples and pears; construction of cold storage;
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8,000 AZN-Zakir Karimov spent on tying the apple trees and disease control activities; 2,600 AZN-Musa Huseynov spent on disease control activities; 4,700 AZN-Jeyhun Abdullayev spent on disease control activities; 58,500 AZN-Agrointernational spent on purchasing phytosanitary products and disease control activities; 2,800 AZN-Ibrahim Sheydayev spent on pest and disease control activities on cherry and pear orchards; 2,500 AZN-Shohret Farzaliyev spent on purchase of pesticides; 4,200 AZN-Ali Bagirov spent on purchase of pesticides; 65,205 AZN – Hafiz N., Rustabil A., Akif K., Mirza M., Oktay G., Ruslan Al., Teymuraz O., Urfan A., Vadim Sh., Afsana M., Akbar R., Araz V., Etibar M., Huseynali B., Jeyhun H., Sahil A., Saleh A., Ucar Q., Yegane I., Vidadi H., and Zahid M. spent on fertilizers and other chemicals as per ASAP’s recommendation; 4,090 AZN-kiwi and feijoa growers Nurlan Asgerov, Elvin Gadimov, Emil Babayev, Agamir Kazimov, Aliyev Nevai, Pirizade Araz, Saleh Hasanov, Murad Akberov, Bakhtiyar Jabiyev spent on application of fertilizers, plowing and restoration of irrigation channels. April 2018: 3,300 AZN-Eyvaz Samadov spent on pruning and treatment activities done after pruning; 165,294 AZN (97,232 USD)-Miraga Hasanov spent his share on cold storage TTF project; 29,000 AZN-Ayaz Alakbarov spent on 1) disease control of nectarine orchards; 2) establishing an orchard with stone fruits; 20,000 AZN-Eldar Zalov spent on treatment activities done after pruning; construction of cold storage; 4,000 AZN-Zakir Karimov spent on tying the apple trees and disease control activities on apple orchard; 1,200 AZN-Musa Huseynov spent on disease control activities; 5,950 AZN-Jeyhun Abdullayev spent on disease control activities; 1,200 AZN-Ibrahim Sheydayev spent on pest and disease control activities on cherry and pear orchards; 17,000 AZN-Shohret Farzaliyev spent on preparatory works for establishing irrigation and phytosanitary works; 4,200 AZN- Ali Bagirov spent on covering the water reservoir and disease control activities
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25,000 AZN-Agrointernational spent on purchasing phytosanitary products and disease control activities. May 2018: 2,300 AZN-Samadov, Eyvaz spent on fertilizer, chemicals for weed and pest control; 5,800 AZN-Gasimov, Alamdar spent on fertilizer, chemicals for weed and pest control; 350 AZN-Maksudov, Murad spent on fertilizer, chemicals for weed and pest control; 1,800 AZN Aladdin farm spent on fertilizer, chemicals for weed and pest control 680 AZN Rasulov, Ikram spent on fertilizer, chemicals for weed and pest control; 3,500 AZN Antim LLC spent on fertilizer, chemicals for weed and pest control; 270 AZN-Musayev, Anar spent on fertilizer, chemicals for weed and pest control; 690 AZN-Karimov, Shahmali spent on fertilizer, chemicals for weed and pest control; 680 AZN-Jabrayilov, Elbrus spent on fertilizer, chemicals for weed and pest control; 22,820 AZN-Jeyhun Hasanov, Rustabil Asgarov, Hafiz Namazov Huseyinali Bayramov, Teymuraz Ocagverdiyev, Yegana Ismayilova, Ucar Gasimov, Urfan Abdullayev, Vidadi Huseynov, Zahid Mammadov, Ruslan Aliyev, Afsana Mammadova, Mirza Mammadov, Rovshan Mustafayev spent on fertilizers and chemicals for greenhouse production and irrigation units; 900 AZN-Rafiq Jafarov spent on weed control activities; 750 AZN-Babakishi Ibrahimov applied recommendations on weed control and repairing irrigation channels on feijoa and kiwi orchards; 38,500 AZN-Ayaz Alakbarov spent on purchasing phytosanitary products and fertilizers and their application; 5,500 AZN-Zakir Karimov spent on chemicals for disease control and fertilization on apple orchard; 2,800 AZN-Musa Huseynov spent on disease control activities; 6,300 AZN-Jeyhun Abdullayev spent on disease control activities; 31,000 AZN-Agrointernational spent on disease control and fertilization activities; 2,800 AZN-Ibrahim Sheydayev spent on pest and disease control; 11,300 AZN-Shohret Farzaliyev spent on preparatory works for establishing irrigation and phytosanitary works; 76 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
3,850 AZN-Ali Bagirov spent on covering the water reservoir and disease control activities. June 2018: 18,000 AZN-Ayaz Alakbarov spent on purchasing phytosanitary products and fertilizers and their application; 2,500 AZN-Ali Bagirov spent on disease control activities; 21,900 AZN-Agrointernational spent on disease control, fertilization and thinning activities; 1,250 AZN-Ibrahim Sheydayev spent on pest and disease control; 3,000 AZN-Shohret Farzaliyev spent on d phytosanitary works; 1,500 AZN-Musa Huseynov spent on disease control activities; 3,300 AZN-Jeyhun Abdullayev spent on disease control and thinning activities; 4,200 AZN-Zakir Karimov spent on chemicals for disease and weed control and fertilization on apple orchard; 4,000 AZN-Eldar Zalov spent on application of chemicals and purchase of fertilizers; 21,700 AZN- Bakhtiyar Salmanov, Jeyhun Hasanov, Etibar Aliyev, Ujar Gasimov, Ruslan Aliyev,Hafiz Namazov, Sahil Asgarov, Yegana Ismayilova, Vidadi Huseynov, Tehmuraz Ojagverdiyev, Rovshan Mustafayev spent on fertilizers and chemicals for greenhouse production; 1,260 AZN-Eyvaz Samedov spent on fertilizer, chemicals for disease and pest control and green pruning; 8,300 AZN Antim LLC spent on pesticides and green pruning activities; 130 AZN- Murad Maksudov spent on pest control; 1,170 AZN-Ali Farajov spent on green pruning and pesticides; 3,800 AZN-Alamdar Gasimov spent on green pruning and pesticides. July 2018: 1,080AZN-Eyvaz Samadov spent on purchase of fertilizer and pesticides; 270AZN-Murad Maksudov spent on purchase of fertilizer and pesticides; 1,640AZN-Alamdar Gasimov spent on purchase of fertilizer and pesticides; 75AZN-Anar Musayev spent on purchase of pesticides; 20,000 AZN-Ayaz Alakbarov spent on purchasing phytosanitary products and fertilizers and their application and fruit thinning activities; 8,000 AZN-Eldar Zalov spent on application and purchase of chemicals and fertilizers; 3,200 AZN-Zakir Karimov spent on application and purchase of chemicals and fertilizers; 5,300 AZN-Jeyhun Abdullayev spent on application and purchase of chemicals and construction of small storage area; 77 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
13,000 AZN-Agrointernational spent on disease control, fertilization and thinning activities; 2,800 AZN -Shohret Farzaliyev spent on d phytosanitary works and construction works; 3,000 AZN-Ali Bagirov spent on disease control activities; 178,500 AZN-Azer Haktari purchased one carton box producing equipment; 14,100 AZN-Etibar Maharramov, Ismayil Abdullayev, Mirza Mammadov, Nurlan Mammadov, Sahil Asgarov, Ujar Gasimov, Urfan Abdullayev, Yasin Abdinov spent on fertilizers and chemicals for greenhouse production; 7,665 AZN-hazelnut farmers Nuru Omarov, Fuad Eldarov, Polad Badalov, Akbar Suleymanov, Kamal Mammadov invested in the following practices such as cleaning of the irrigation canals, irrigation, weed control, IPM and disease control measures and spraying activities; August 2018: 27,800 AZN-Agil Mammadov, Amir Mammadov, Arzu Sadikhov, Asim Sadikhov, Bakhtiyar Salmanov, Etibar Aliyev, Etibar Maharramov, Fariz Hasanov, Hafiz Namazov, Ismayil Abdullayev, Mirza Mammadov, Nurlan Mammadov, Rovshan Mustafayev, Sahil Asgarov, Urfan Abdullayev spent on fertilizers and chemicals for greenhouse production; 10,640 AZN-hazelnut farmers Nuru Omarov, Fuad Eldarov, Polad Badalov, Akbar Suleymanov, Kamal Mammadov, Tofig Hajiyev, Yusif Musayev, Shahryar Gurbanov, Vugar Hagverdiyev, Vugar Hagverdiyev, Ismail Orujov, Ilham Arabov, Jabbar Fazliyev, Shamil Fazliyev, Hajimammad Ulukhanov, Ismail Humbatov invested in the following practices such as cleaning of the irrigation canals, irrigation, weed control, IPM and disease control measures and spraying activities; 16,520 AZN-Ayaz Alakbarov, Eldar Zalov, Zakir Karimov, Agrointernational, Shohret Farzaliyev, Ali Bagırov spent on green pruning activities; September 2018: $397,654- Jaarchi Hajiyev, Shohrat Farzaliyev, Miragha Hasanov and Aladdin Fermer made client investment in TTF projects during the Year 4. 13. Number of financial 20 20 10 1-Mabat LLC received loan from Unibank; consultations, coaching instances, 2-Research reports shared with the beneficiaries: “Are banks lending to financial research reports shared and business?” and “Factors affecting the currency market and forecast for manat's loans facilitated rate in 2018” 17-supported beneficiaries to develop balance sheets and income statements as a part of TTF application
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14. Number of vulnerable households 1,809 1,809 1,500 Farmers trained in Astara, Masalli, Lenkaran, Jalilabad, Zagatala, Gakh, Guba, benefiting directly from USG Gusar, Khachmaz regions assistance* 15. Number of US business linkages NA 5 New made as a result of USG-supported indicator assistance 16. Value of the US exports to NA $832,176 New Azerbaijan as a result of USG- indicator supported business linkages
APPENDIX B: Short-Term Technical Assistance/International Assignments
Name/Functional Area of # Purpose of Trip Dates Expertise • Provide recommendations and technical support to ASAP staff and strawberry, blackberry, raspberry, and blueberry farmers on updated 1. Nebojsa Momirovic/Berry VC production and post-harvest handling techniques; June 4-9, 2018 • Determine the causes of yield reductions and propose corrective measures.
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APPENDIX C: Technology Transfer Fund (TTF) Status Updates
Requested Proposed TTF ASAP Client TTF # Applicant Investment Matching Project Status Investment Description Funding (USD) (USD) Ismail Orujov, Hazelnut optical 01/01-2015 143,185 65,000 Project completed Hazelnut Processor sorter
Vugar Hagverdiyev, Hazelnut optical 03/01-2016 101,660 25,000 Project completed Hazelnut Processor sorter
Karaja Findik LLC, Electronic truck 06/01-2016 45,000 22,000 Project completed Hazelnut Processor scale
Jaarchi Hajiyev, Roasting line for 08/01-2017 102,144 55,000 Project completed Hazelnut Processor hazelnut kernels
Azerbaijan Hazelnut Industry Processors and 12/01-2018 Association 150,400 121,000 Under evaluation Exporters Machinery Pool Association (AHPEA) Three members of AHPEA: Elvin On hold. Two of three proposed beneficiaries Azerbaijan Hazelnut Omarov have now provided ASAP with landownership 09/01-2018 Processors and (Zagatala), Hasan documentation. As soon as ASAP gets it will 10/01-2018 39,339 18,000 Exporters Tarverdiyev share with USAID if they are acceptable TTF 11/01-2018 Association (AHPEA) (Gakh), and Fuad packages will be updated for submission to Eldarov USAID (Khachmaz)
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Khaspoladoba Drilling of two TTF package is ready, waiting for ERC 13/01-2018 Community/Municipal 8,918 1,176 artesian wells approval for official submission to USAID ity Water cleaning Orelay Firmasi, Dried 04/01-2016 system 62,840 24,200 Project completed fruit processor equipment Shamil Jahangirov, 02/04-2016 Cold storage 190,000 50,000 Project completed Orchard farmer Shohrat Farzaliyev, 05/04-2018 Drip Irrigation 133,510 39,927.54 Project completed Orchard farmer Eldar Zalov, Orchard Project completed, but there some 04/04-2018 Cold storage 129,500 50,000 farmer shortcomings that vendor is fixing now. The beneficiary requested to wait until 06/04-2018 Ayaz Alakbarov Cold storage 129,500 50,000 October 10, as he is visiting Turkey week of Oct. 8 to negotiate issues with vendor. Azer Hakhtari, 03/04-2017 Plastic box molds 114,820 49,500 Project completed Orchard farmer Kurdakhani Shitil Tray washing and 02/01-2015 LLC, Seedling disinfecting 45,980 23,500 Project completed Nursery machine Eynur KT LLC, New greenhouse 02/02-2016 127,800 36,864 Project completed Greenhouse owner heating system Azer Amiraslanov, 04/02-2016 Cold Storage 138,165 50,000 Project completed Greenhouse owner Aydin Jabbarov, Establishment of 03/02-2016 149,250 54,000 Project completed Greenhouse owner Seedling Nursery 05/02-2017 Miragha Hasanov Cold Storage 117,000 50,000 Project completed
06/02-2018 Emin Huseynov Cold Storage 80,193 50,000 Under implementation
08/02-2018 Mohubbat Ibrahimov Cold Storage 80,000 40,000 Under implementation
81 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
Aladdin Fermer LLC, Drip irrigation 03/02-2017 65,000 35,000 Project completed pomegranate grower system
Eyvaz Samedov, Drip Irrigation 01/03-2016 98,685 50,012 Project completed Pomegranate grower System Inputs required 07/03-2018 Mabat LLC 109,646 40,432 Under implementation for the nursery Total $2,362,535 $1,000,6125
5 Not including cancelled projects’ estimated costs. 82 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
APPENDIX D: Demonstration Plot/Activity Status Updates
# Value Chain, Client Name, Region Demo Plot Demo Plot Activities, Assistance Elements Demo Type Contact Person, Coordinator Name, Phone Contacts 1. Hazelnut Vugar Hagverdiyev, Gakh Ziyaveddin Aliyev Good Agricultural Practices (GAP) Demo Plot on older 2.7 ha 0502206616 0503422285 and 3.2 ha orchard (pruning, fertilization, integrated pest management, irrigation, green pruning, harvest, postharvest handling) 2. Hazelnut Ismayil Orujov, Zagatala Ziyaveddin Aliyev GAP Demo Plot on 10.5 ha young orchard (pruning, fertilization, 0502201919 0503422285 integrated pest management, irrigation, green pruning, harvest, postharvest handling) 3. Hazelnut Yusif Musayev, Oghuz Ziyaveddin Aliyev Providing technical assistance on fertilization, spraying, and 0503261939 0503422285 irrigation on 3 ha of the hazelnut orchard 4. Hazelnut Jabbar Farzaliyev Zagatala Ziyaveddin Aliyev Providing technical assistance on GAP implementation on 2.5 0503422285 hectares of new hazelnut demo plot 5. Hazelnut Shamil Farzaliyev Zagatala Ziyaveddin Aliyev Providing technical assistance on GAP implementation on 2 0503422285 hectares of new hazelnut demo plot 6. Hazelnut Tofiq Hajiyev Gabala Ziyaveddin Aliyev Providing technical assistance on GAP implementation on 2 0503422285 hectares of 15 years old hazelnut demo plot 7. Hazelnut Vugar Hagverdiyev, Gakh Ziyaveddin Aliyev Good Agricultural Practices Demo Plot on older 3.2 ha (pruning, 0502206616 0503422285 fertilization, integrated pest management, irrigation, green pruning, harvest, postharvest handling) 8. Hazelnut Ismayil Humbatov Balakan Ziyaveddin Aliyev Providing technical assistance on GAP implementation on 2 0503422285 hectares of 15 years old hazelnut demo plot 9. Hazelnut Hajimammad Zagatala, Danachi Ziyaveddin Aliyev Good Agricultural Practices Demo Plot on 16 years old 1.5 ha Ulukhanov 0503422285 (pruning, fertilization, integrated pest management, irrigation, green pruning, harvest, postharvest handling) 10. Hazelnut Shahryar Gurbanov Bilejik, Sheki Ziyaveddin Aliyev Good Agricultural Practices Demo Plot on older 0.5 ha (pruning, 0503422285 fertilization, integrated pest management, irrigation, green pruning, harvest, postharvest handling)
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11. Hazelnut Ilham Arabov Zagatala Ziyaveddin Aliyev Good Agricultural Practices Demo Plot on older 3 ha (pruning, 0503422285 fertilization, integrated pest management, irrigation, green pruning, harvest, postharvest handling) 12. Hazelnut Fuad Eldarov Khachmaz Bahlul Bayramov Providing technical assistance on GAP implementation on 2 0514624200 hectares of 20 years old hazelnut demo plot 13. Hazelnut Polad Badalov Khachmaz Bahlul Bayramov Providing technical assistance on GAP implementation on 6 0514624200 hectares of 15 years old hazelnut demo plot 14. Hazelnut Nuri Omarov Khachmaz Bahlul Bayramov Providing technical assistance on GAP implementation on 5 0514624200 hectares of 20 years old hazelnut demo plot 15. Hazelnut Kamal Mammadov Khachmaz Bahlul Bayramov Providing technical assistance on GAP implementation on 2 0514624200 hectares of 20 years old hazelnut demo plot 16. Orchard Ayaz Alakbarov, Gusar Jabbar Heybatov Pest management, (Apple, Cherry, 0503430158 0505184051 pruning, fertilization, irrigation, green pruning, harvest, Nectarine, peach, postharvest handling plum) 17. Orchard Jabbar Heybatov, Guba Jabbar Heybatov Pest management, pruning, fertilization, irrigation, green pruning, (Apple, pear and fruit 0505184051 0505184051 harvest, postharvest handling and fruits saplings growing. nursery) 18. Orchard (Apple, Ibrahim Sheydayev Khachmaz Jabbar Heybatov Recommendation on pruning, planting new orchards, fertilization cherry) 0503489000 and pest management on plum, pear, peach, etc. orchards. 19. Orchard (Apple, Eldar Zalov Guba Jabbar Heybatov Pest management, cherry) 0506489070 pruning, fertilization, irrigation, green pruning, harvest, postharvest handling 20. 1Orchard (Apple, Zakir Karimov Guba Jabbar Heybatov Pest management, . pear, cherry) 0503325850 pruning, fertilization, irrigation, green pruning, harvest, postharvest handling 21. Orchard (Apple, Musa Huseynov Guba Jabbar Heybatov Pest management, cherry) 0504280201 pruning, fertilization, irrigation, green pruning, harvest, postharvest handling 22. Orchard (Apple, Jeyhun Abdullayev Guba Jabbar Heybatov Pest management, pruning, fertilization, irrigation, green pruning, cherry) 0503522449 harvest, postharvest handling
84 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
23. Orchard (apple, Shohrat Farzaliyev Gusar Jabbar Heybatov Pest management, pruning, fertilization, irrigation, green pruning, quince and stone harvest, postharvest handling, extending new intensive and semi- fruits) intensive orchards area. 24. Orchard Shahmali Karimov Aghdash Zaur Hajiyev, 0503369876 Pest and disease control, weed control and irrigation (Persimmon) 25. Orchard Vidadi Mahmudov Aghdash Zaur Hajiyev, 0503369876 Pest and disease control, weed control and irrigation (Persimmon) 26. Orchard Elbrus Jabrayilov Aghdash Zaur Hajiyev, 0503369876 Pest and disease control, weed control and irrigation (Persimmon)
27. Orchard Sahib Rafiyev Aghdash Zaur Hajiyev, 0503369876 Pest and disease control, weed control and irrigation (Persimmon) 28. Orchard Anar Musayev Goychay Zaur Hajiyev, 0503369876 Pest and disease control, weed control and irrigation (Persimmon) 29. Orchard (Kiwi) Sakhavet Sultanov Astara Mobil Penjaliyev Sprinkler Irrigation Demo Plot 0506262688 30. Vegetable Surayya Ismayilova, Tovuz Allahverdi Kazimov Potato: Irrigation, soil fertilization, post-harvest handling, and (Potato and Onion) 0503155995 0558523233 storage; Onion: crop mix, planting 31. Vegetable ATA LLC Samukh Allahverdi Kazimov Irrigation Travelling Gun for open field vegetable production 32. Berry ATA LLC Samukh Indira Ismayilova Berry production in a greenhouse facility 33. Vegetable Yegana Ismayilova Shamkir Allahverdi Kazimov Integrated Pest Management tools 0558523233 34. Vegetable Yunis Namazov Shamkir Allahverdi Kazimov Integrated Pest Management tools 0558523233 35. Pomegranate Eyvaz Samedov Goychay Zaur Hajiyev, 0503369876 Pre-harvest, harvest and Post-harvest handling.
36. Pomegranate Ikram Rasulov Goychay Zaur Hajiyev, 0503369876 Pre-harvest, harvest and Post-harvest handling.
37. Pomegranate Murad Maksudov Goychay Zaur Hajiyev, 0503369876 Pre-harvest, harvest and Post-harvest handling.
38. Pomegranate Mubariz Nuriyev Goychay Zaur Hajiyev, 0503369876 Pre-harvest, harvest and Post-harvest handling.
39. Pomegranate Alamdar Gasimov Barda Zaur Hajiyev, 0503369876 Pre-harvest, harvest and Post-harvest handling.
85 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
40. Pomegranate Ibrahim Mammadov Barda Zaur Hajiyev, 0503369876 Pre-harvest, harvest and Post-harvest handling.
41. Pomegranate Ekinchi BO LLC Beylagan Zaur Hajiyev, 0503369876 Pre-harvest, harvest and Post-harvest handling.
42. Pomegranate Antim LLC Goranboy Zaur Hajiyev, 0503369876 Pre-harvest, harvest and Post-harvest handling. 43. Pomegranate Aladdin Fermer LLC Salyan Zaur Hajiyev, 0503369876 Pre-harvest, harvest and Post-harvest handling. 44. Pomegranate Mars FK LLC Kurdamir Zaur Hajiyev, 0503369876 Pre-harvest, harvest and Post-harvest handling.
45. Pomegranate Rashad Shirinov Hajiqabul Zaur Hajiyev, 0503369876 Pre-harvest, harvest and Post-harvest handling.
46. Pomegranate Balakan Food LLC Salyan Zaur Hajiyev, 0503369876 Pre-harvest, harvest and Post-harvest handling.
47. Pomegranate Ulvi Isgandarov farm Goranboy Zaur Hajiyev, 0503369876 Pre-harvest, harvest and Post-harvest handling.
86 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
APPENDIX E: Project Success Stories
# Month Title Value Chain Beneficiary Name USAID Demonstrations and Training Help Pomegranate Ekinchi BO LLC, Alamdar Gasimov and Eyvaz 1. October 2017 Pomegranate Growers Increase Profits Samedov Persimmon growers boost production and profitability Vidadi Mahmudov, Sahib Rafiyev and Shahmali 2. November 2017 Orchard thanks to USAID assistance Karimov USAID builds agronomist capacity through agronomist field Cross- 3. December 2017 Agronomists training Cutting Cold Storage Facility Built with USAID Support Helps Over 4. January 2018 Orchard Shamil Jahangirov 200 Farmers to Access Export Markets USAID Helps Greenhouse Grower to Obtain International 5. February 2018 Berry AS Group Quality and Safety Certification USAID Launches Hazelnut Grower Trainings at Agribusiness 6. March 2018 Hazelnut AHPEA Association’s Newly Furnished Training Center USAID Agronomist Saves Azerbaijani Greenhouse Grower’s 7. April 2018 Vegetable Yunis Namazov Tomato Crop USAID Helps Azerbaijani Strawberry-Growing Community 8. May 2018 Berry Miraga Hasanov to Boost Capacity Fruit Producer Exports to New Advanced Markets with 9. June 2018 Orchard D. Fruits LLC USAID Assistance (updated) USAID-Assisted Hazelnut Association Achieves Advocacy 10. July 2018 Hazelnut AHPEA Successes
87 Agricultural Support to Azerbaijan Project (ASAP) Fourth Annual Progress Report
Agricultural Support to Azerbaijan Project (ASAP)
USAID Demonstrations and Training Help Pomegranate Growers Increase Profits
ntil recently, about two-thirds of pomegranates grown in Azerbaijan could be used only in juice and U concentrate production. Due to their small size, splitting and cracking, as well as pest problems, most pomegranates were not suitable for the fresh market, and could only be sold to processors for minimal prices. The poor quality was due primarily to a lack of knowledge of proper agricultural practices and the benefits of investing in proper managmement and equipment. As a result, even farms with more than 200 hectares of pomegranates often Pomegranate quality improved on could not generate more than $120,000 in annual revenue. Eyvaz Samadov‘s farm in Goychay plow, as well as introduced to best practices in chemical pest and disease control. This new machinery helped the growers to cut cultivation costs by 50% this year. The rotary disc plow replaced three different pieces of equipment: a plow, disc, and harrow, thereby saving time, labor, and fuel costs. Spraying is greatly improved thanks to a greater number of adjustable, high-pressure nozzles, which enables greater and more accurate spraying coverage, while reducing by half the volume of pesticides needed to treat the same area.
Production and Sales Farmer 2015 2016 2017 Ekinchi Farm’s USAID-provided sprayer Ekinchi 132 MT, 750 MT, 1050 MT, BO LLC 120,000 680,000 900,000 In order to address these obstacles, ASAP began a training (200 ha) AZN AZN AZN and demonstration program to raise awareness and facilitate Eyvaz 25 MT, 70 MT, 90 MT, access to improved technologies. To serve as demos, ASAP Samedov 8,500 38,000 75,000 chose pomegranate farms operating in three different areas of (40 ha) AZN AZN AZN Azerbaijan: Ekinchi BO LLC in Beylagan, Alamdar Alamdar 35 MT, 80 MT, 190 MT, Gasimov’s farm in Barda, and Eyvaz Samedov’s farm in Gasimov 7,800 44,000 176,000 (50 ha) AZN AZN AZN Goychay. Assistance began with field training in improved production practices throughout the growing cycle. These efforts have not only increased productivity, but have Next, ASAP showed through simple calculations how led to higher quality fruit as well, 60% of which can now be maximizing production is not always the best strategy. For sold to the lucrative fresh market. This has made it possible example, rather than producing poor-quality pomegranates to attract new buyers who demand consistent quality from on one’s entire orchard, it is more profitable to invest one’s their suppliers in order to commit to long-term purchases. limited resources in proper cultivation practices on a smaller Thus, farmers who had previously struggled to sell their section of the orchard and produce only high-quality fruit that produce in rudimentary domestic markets are moving up the can be sold for a premium. value chain into more sophisticated market channels, even Third, to demonstrate the advantages of more expensive into exports of fresh pomegranates. While these exports are modern machinery, teach demo was provided with a set of conducted through middlemen at present, the next step may tractor attachments, consisting of sprayers and a rotary disc be to export directly and thus capture even more value. ASAP is a five-year, USAID-funded project to increase the incomes of agribusinesses and agricultural producers along the entire berry, hazelnut, orchard, pomegranate, and vegetable value chains. By supporting the growth and expanded exports of agribusiness SMEs through technical assistance by international experts and local Business Service Providers (BSPs), increased access to new technologies, marketing services, and finance, and strengthened international linkages, ASAP will contribute to the accelerated development of Azerbaijan’s rural and non-oil economy.
Agricultural Support to Azerbaijan Project (ASAP)
Persimmon growers boost production and of modern orchard management and the positive results of these efforts. profitability thanks to USAID assistance By the end of the first growing season, ASAP assistance In Azerbaijan, persimmons are produced mainly for export, already helped bring about substantial progress. Since with an emphasis on the the former Soviet market. Two years ago, a number of growers in central Azerbaijan contacted ASAP and reported being unable to export their
Anar Musayev preparing his harvest for export 2015, the fruit quality has not only improved, but productivity more than doubled. This resulted in sales tripling on average, as the share of low-quality persimmons decreased to just 5% of total production. These impacts are shown in the table below:
Farmer Production and sales (AZN)
Improved pest and disease control have helped 2015 2016 2017 Shahmali Karimov to increase his production Vidadi 22 MT, 40 MT, 55 MT, fruit due to deterioration in the quality of their crops. Mahmudov (3 ha) 8,000 28,000 44,000 ASAP selected four persimmon growers for assistance: Shahmali 40 MT, 55 MT, 120 MT, Mr. Vidadi Mahmudov, Sahib Rafiyev, and Mr. Shahmali Karimov (15 ha) 25,000 39,000 96,000 Karimov in Aghdash, and Mr. Anar Musayev in Goychay Anar Musayev 20 MT, 38 MT, 53 MT, region. The project began by working with them to establish (3 ha) 14,500 31,000 47,000 demonstration farms. On-farm training and technicaal Sahib Rafiyev 10 MT, 15 MT, 20 MT, assistance helped educate the growers on proper (3 ha) 6,500 12,800 16,000 management throughout the growing season, including fertilization, irrigation, pruning and shaping, green pruning In addition to these specific growers benefitting from and thinning, as well as pest, disease and weed control. In increased sales, neighboring farmers are being exposed to addition, ASAP provided each grower with a set of pruning and adopting these practices as well. During this project tools, including loppers, handsaws, pruners, trimmers, and year, ASAP will expand its outreach efforts to bring large hand sprayers to demonstrate efficient cultivation. Next, groups of outside growers to the demo plots for training so ASAP included one demo plot host from each of the two that they can see the results firsthand and learn how they rayons on a study trip to Italy in 2015 to provide an example can expand their own production and efficiency as well.
ASAP is a five-year, USAID-funded project to increase the incomes of agribusinesses and agricultural producers along the entire berry, hazelnut, orchard, pomegranate, and vegetable value chains. By supporting the growth and expanded exports of agribusiness SMEs through technical assistance by international experts and local Business Service Providers (BSPs), increased access to new technologies, marketing services, and finance, and strengthened international linkages, ASAP is contributing to the accelerated development of Azerbaijan’s rural and non-oil economy.
Agricultural Support to Azerbaijan Project (ASAP)
USAID builds agronomist capacity through Second, in January it will facilitate a visit to Texas A&M agronomist field training University, America’s premier educational and research institution in cotton production, by two senior staffers from Hazelnuts and pomegranates are two of the few Azerbaijani AgroCenter. The goal is to build a partnership to enable crops that can be exported to modern markets, such as the EU Azerbaijan to develop the technical capacity needed to and the Gulf. Thus, they are lucrative options for local growers. revitalize and grow its cotton industry. In partnership with One of the major obstacles to fully capitalizing on these Texas A&M, AgroCenter plans to establish a dual degree opportunities, however, is the shortage of agronomists program to both train technical agronomists at Azerbaijan State specialized in these cultivars in Azerbaijan. Agricultural University (ASAU) in Ganja and establish an In order to address this deficit, the USAID Agricultiural agribusiness degree program at a university in Baku. The vision Support to Azerbaijan Project (ASAP) has begun collaborating is for Texas A&M to lead both programs through U.S. faculty with a newly established research and training center to build serving as visiting professors in Azerbaijan and Azerbaijani its capacity to facilitate expanded and improved production in faculty studying at Texas A&M. AgroCenter also hopes to these and other crops. The Azerbaijan Agriculture Training and establish a 4-H type program in Azerbaijan to promote Development Center, also known as AgroCenter, was created agriculture as an exciting field and encourage youth to consider to build capacity in agricultural training and education, research it as a potential career. Texas A&M staff could serve as mentors and development, promotion, as well as foster dialogue and to help oversee development of the program. cooperation. Commissioned by the Gilan Agriculture Group in Third, ASAP has begun utilizing its demonstration plots to 2017, AgroCenter aims to cooperate with leading international provide hands-on field trainings to agronomy students from academic institutions and support organizations to promote ASAU. For this reason, in December ASAP organized a innovation, modernization and expansion of agricultural
ASAP demonstrates modern machinery to agronomy students
training at the farm of one of its pomegranate VC beneficiaries, ASAP conducts a group training at its Demo Mr. Eyvaz Samadov, in Veysalli village, Goychay region to Pomegranate Plot in Goychay rayon teach 44 students studying orchard management about pomegranate production as well as the work of a professional production. agronomist. ASAP staff and agronomists were supported by Starting last year, ASAP began supporting AgroCenter on two ASAU professors, and the trainees were provided with several initiatives. First, ASAP began assisting it to develop written training materials produced by the project. Next in formal classroom-based curricula in hazelnut and pomegranate January, ASAP and AgroCenter plan to conduct a similar field production, including a growing body of technical instructional visit for students in northwestern Azerbaijan where the focus materials, for the training of trainers in the production of these will be on hazelnut production. crops.
ASAP is a five-year, USAID-funded project to increase the incomes of agribusinesses and agricultural producers along the entire berry, hazelnut, orchard, pomegranate, and vegetable value chains. By supporting the growth and expanded exports of agribusiness SMEs through technical assistance by international experts and local Business Service Providers (BSPs), increased access to new technologies, marketing services, and finance, and strengthened international linkages, ASAP is contributing to the accelerated development of Azerbaijan’s rural and non-oil economy.
Agricultural Support to Azerbaijan Project (ASAP)
Cold Storage Facility Built with Jahangirov applied to USAID for assistance in establishing an additional cold storage facility. USAID Support Helps Over 200 ASAP agreed to co-fund the project through its Farmers to Access Export Markets Technology Transfer Fund by providing $50,000 in matching funding to support Jahangirov’s investment of he cold chain is a part of the value chain which over $100,000 to construct and commence operations of helps add value to produce by extending shelf the new cold storage facility. The cold store’s 500 MT T life. Cold storage enables one to sell produce at a capacity almost doubled the beneficiary’s total cold later date, when market prices are higher, or to send it to storage capacity to 1,150 MT. distant lucrative export markets with a reduced risk of it When construction was completed in August 2017, spoCiling before it reaches its destination. A recent much of the year’s cold storage season had already USAID-funded activity in western Azerbaijan helped a passed. Nevertheless, the beneficiary was able to store local fruit grower and exporter to do just that. 120 tons of peaches and other late summer fruits from his S Shamil Jahangirov has been in the business of own farm and later also leased space to 210 small farmers procuring fruits and vegetables from local farmers for to store 500 tons of persimmons for 0.08 AZN/kg/month. exportI since 2005. Although he already owned a cold storage facility with a capacity of 650 MT, at peak times demand far exceeded this volume. As a result, he couldn’tS generate sufficient volumes to meet larger buyers’ minimum requirements nor rent out space to all interested local growers. Therefore, Jahangirov had to rent space from others. As the outsourced cold storages were in remote locations, they created additional operational issues to manage and the entrepreneur had reduced control over storage quality. Frequently, poor storage management caused the entrepreneur to lose Shamil Jahangirov displays persimmons packed for loading into his cold storage As a result, Jahangirov was able to earn 50,000 AZN more from sales of his own produce and 160,000 AZN from leasing the space for persimmon storage for five months. The persimmon growers in turn were able to earn 288,750 AZN (35%) more from selling their produce later, when prices were higher, mostly to export markets in the region, as good cold chain management enabled them to maintain their produce quality all the Newly established 500-ton-capacity cold way through transport to the destination markets. storage established with USAID support Operation of the new storage facility itself also created significant shares of the produce stored there. In other four new full-time and 20 seasonal jobs, which benefited cases, there was no available cold storage to rent, forcing the local community as well. In 2018, as Jahangirov will Jahangirov to sell the produce he had just purchased have a full season to operate the cold storage, sales immediately for as little as half the anticipated sales volumes will increase and the benefits to local growers, price, resulting in losses. To address this obstacle, staff, and Jahangirov will grow even more.
ASAP is a five-year, USAID-funded project to increase the incomes of agribusinesses and agricultural producers along the entire hazelnut, orchard, pomegranate, and vegetable value chains. By supporting the growth and expanded exports of agribusiness SMEs through technical assistance by international experts and local Business Service Providers (BSPs), increased access to new technologies, marketing services, and finance, and strengthened international linkages, ASAP is contributing to the accelerated development of Azerbaijan’s rural and non-oil economy.
Agricultural Support to Azerbaijan Project (ASAP)
USAID Helps Greenhouse Grower advised AS Agro Co LLC to contact the project. ASAP then provided training of staff and management in making to Obtain International Quality the necessary facility improvements and adopting the and Safety Certification required policies and operating procedures, as well as auditing the facility to ensure it was on track to achieve s agricultural production in Azerbaijan has certification for its five hectares of greenhouse tomato expanded in recent years, growers and processors production. (It also engages in greenhouse strawberry have increasingly recognized the need to broaden production.) After several months of assistance, AS Agro A underwent formal audits from an accredited quality their sales beyond the traditional domestic and former Soviet markets. Advanced markets in Europe and the management company and successfully obtained formal Persian Gulf offer the advantages of more reliable certification in GlobalG.A.P. in January 2018 and in ISO demand, reduced political risk, and higher prices, 22000 Food Safety a month later. In March, this will help including payment premiums for quality. These markets enable AS Agro to expand its exports beyond the former USSR into the Gulf countries for the very first time. are also more demanding, as they demand not just higher quality itself, but the implementation of systems that ensure that this quality is consistently achieved through best practices in production, monitoring, traceability, and procedures for detecting and mitigating risk. For this reason, USAID has made assistance to beneficiaries in understanding and meeting international food quality and
AS Agro operating in line with international food safety standards This is just the beginning of the agribusiness’s ambitious plans, however. It now plans to expand its tomato and strawberry greenhouses up to 120 hectares, as AS Agro’s ISO 22000 and GlobalG.A.P. food safety certificates well as build its own packaging, processing, laboratory, safety standards one of its main priorities. and storage facilities, as well as a logistics center to Since its launch in 2014, the USAID Agricultural deliver fresh produce to buyers. This will help AS Agro to Assistance to Azerbaijan Project (ASAP) has assisted in increase production 12-fold over the next five years, the modernization of the country’s horticultural sector. In possibly with U.S. equipment that it may purchase as a late 2017, an ASAP beneficiary greenhouse operation just result of an ASAP-led study trip to California’s Central outside Baku referred a neighboring greenhouse business Valley and a self-funded private tour of greenhouse to the project. Bine Agro, which obtained GlobalG.A.P. suppliers there that the project has helped AS Agro to and HACCP certification in 2016 with ASAP support, design.
ASAP is a five-year, USAID-funded project to increase the incomes of agribusinesses and agricultural producers along the entire berry, hazelnut, orchard, pomegranate, and vegetable value chains. By supporting the growth and expanded exports of agribusiness SMEs through technical assistance by international experts and local Business Service Providers (BSPs), increased access to new technologies, marketing services, and finance, and strengthened international linkages, ASAP is contributing to the accelerated development of Azerbaijan’s rural and non-oil economy.
Agricultural Support to Azerbaijan Project (ASAP)
USAID Launches Hazelnut Grower In December 2017, ASAP completed furnishing the training room by supplying it with glass partitions, a large Trainings at Agribusiness Association’s conference table and chairs for 55 persons, heating, as well as Newly Furnished Training Center computer and audiovisual equipment to facilitate the development and delivery of handouts, presentations, and s one of the top export commodities in Azerbaijan, training sessions. Having turned the empty facility into a hazelnuts are a source of income for some 40,000 rural training room, ASAP worked with its local agronomist A households and over 20 processing facilities. Despite a Ziyaveddin Aliyev to build his training capacity, as well as 200-year-old tradition of their cultivation in the country, supply him with comprehensive training manuals in the hazelnuts are mostly grown passively, without much active care or application of good agricultural practices. This results in low yields, as productivity in Azerbaijani hazelnut orchards is up to three or four times lower than in similar orchards in Turkey, Italy, or the U.S. A lack of formal training and educational materials on modern growing pracices, as well as a shortage of trained agronomists, are among the major causes of this underperformance.
ASAP delivering training in the AHPEA training room on improving hazelnut growing practices Azerbaijani language that it had adapted from a curriculum developed by AgriGeorgia and its parent company Ferrero, the world’s leading hazelnut producer and buyer. ASAP also provided the agronomist with jute bags to provide to trainees to help facilitate proper storage of harvested hazelnuts. Grower group trainings at the AHPEA training center began in early 2018 and to date over 120 farmers have undergone training led by ASAP technical staff. Trainings Training for Azerbaijan State Agrarian University cover such vital topics as orchard design and establishment, students at an ASAP hazelnut demonstration plot pruning, soil fertility, micro-nutrients, irrigation, disease and pest control, harvesting, and post-harvest handling of The Azerbaijan Hazelnut Producers and Exporters hazelnuts. After classroom trainings, farmers are often taken Association (AHPEA) is based in Zagatala and was legally to ASAP plots in Zagatala or Gakh region to provide a hands- registered in 2016. One of the association’s main functions is on illustration of the proper application of good agricultural working with local growers to educate them on good practices. ASAP plans to train over 750 growers in 2018 and agricultural and post-harvest practices in order to increase the expects yields to double once improved practices are applied. country’s hazelnut output. Last year, AHPEA acquired a two- “We are targeting many local growers, including more story building to be used for the association’s purposes. In the young people to go through the hazelnut trainings,” says fall, the association leadership approached ASAP with a Zulfugar Gurbanov, Deputy Chairman of AHPEA. “By request that it help furnish and equip one of the building’s increasing their knowledge of modern hazelnut cultivation, we rooms to transform it into a training center. AHPEA proposed truly believe that we will help more young people to decide to to contribute to this activity by helping to identify potential return to their land, as increased yields will improve their trainees, provide logistical support in planning and conducting living standards, decrease unemployment, and serve as a trainings, and share training costs. buffer against financial difficulties caused by the currency devaluation and financial crisis.”
ASAP is a five-year, USAID-funded project to increase the incomes of agribusinesses and agricultural producers along the entire berry, hazelnut, orchard, pomegranate, and vegetable value chains. By supporting the growth and expanded exports of agribusiness SMEs through technical assistance by international experts and local Business Service Providers, increased access to new technologies, marketing services, and finance, and strengthened international linkages, ASAP is contributing to the accelerated development of Azerbaijan’s rural and non-oil economy.
Agricultural Support to Azerbaijan Project (ASAP)
USAID Agronomist Saves Azerbaijani and those fruits that did begin forming appeared to be hollow inside. Greenhouse Grower’s Tomato Crop In an attempt to save his investment, the farmer While a willingness to try innovative approaches can be a contacted the ASAP agronomist, apologized for not useful quality in business, the ability to recognize when listening to his earlier warnings, and asked him to evaluate something isn’t working out and change course in a timely the situation in the greenhouse and provide any possible manner is also critical. An ASAP beneficiary and greenhouse grower’s recent attempt to try something new nearly ended in disaster. Thankfully, with assistance from USAID, the grower was able to remedy the problem and save his crop before it was too late. Yunis Namazov is a greenhouse tomato and cucumber grower in Shamkir in western Azerbaijan. Last fall, in an effort to get tomatoes early to market and sell them for a higher price, Namazov planted out his 1.8-hectare greenhouse on November 1st, two months earlier than is standard local practice. Allahverdi Kazimov, the Vegetable Value Chain Agronomist for the Agricultural Support to Successfully grown tomatoes Azerbaijan Project (ASAP), tried to talk the farmer out of on Yunis Namazov’s farm his plan. He explained that the decreasing lengeth of the days and the typically overcast weather in December recommendations. Mr. Kazimov inspected the plants and noted problems in their root system. The crop in the part of the greenhouse that had been hit worst by the disease could not be saved and was replanted with cucumbers, while the rest of the tomatoes were successfully treated for the disease through the targeted application of chemicals and fertilizer through the drip irrigation system. The agronomist also provided recommendations on proper pruning, fertilization, irrigation intervals, and temperature control to increase the number of flowers and provide a healthy basis for fruit setting and growth. As a result, although Namazov’s total harvest was approximately 70 tons less than originally anticipated, the Yunis Namazov displays the crop greenhouse still produced over 100 tons of tomatoes, which saved thanks to USAID assistance were sold for approximately $168,000. This not only retards blossoming and weakens tomato plants, making covered his $110,000 in operational costs, but left him with them more susceptible to disease. Unfortunately, the a substantial profit, even after he had reconciled himself to farmer chose not to follow the agronomist’s being able to break even at best. “As an experienced farmer recommendations and hired a new agronomist from Turkey and businessman, I would like to take this opportunity to who agreed to oversee the operation’s early planting advise other farmers to avoid engaging inexperienced activities. agronomists with promises of generating greatly increased Two and a half months into the growing cycle, profits,” Namazov says. “I give my thanks to the ASAP Namazov realized that the plants were not flowering agronomist who saved my business from a major loss.” properly, as the flowers withered and fell from the vine,
ASAP is a five-year, USAID-funded project to increase the incomes of agribusinesses and agricultural producers along the entire berry, hazelnut, orchard, pomegranate, and vegetable value chains. By supporting the growth and expanded exports of agribusiness SMEs through technical assistance by international experts and local Business Service Providers (BSPs), increased access to new technologies, marketing services, and finance, and strengthened international linkages, ASAP is contributing to the accelerated development of Azerbaijan’s rural and non-oil economy.
Agricultural Support to Azerbaijan Project (ASAP)
USAID Helps Azerbaijani Strawberry- These resources made possible the construction of a 300- metric-ton-capacity cold store that was completed in April Growing Community to Boost Capacity 2018. ike many high-value horticultural products, Thanks to the new facility, Hasanov soon was able to strawberries are highly perishable and sensitive to dispatch his first-ever export shipment, sending 160 tons of L variations in temperature. Nevertheless, strawberry production has grown rapidly in recent years in Azerbaijan, as the crop is in great demand both domestically and abroad. The capacity of many domestic growers to seize export opportunties, however, is severely limited by the lack of access to cold storage. Without removing the field heat from berries after they are picked, often in temperatures of 35°C to 45°C, it can be difficult if not impossible to deliver them to the Baku market in saleable condition, much less ship them to lucrative export markets.
The beneficiary showing off the first strawberries stored in his new USAID-supported cold store strawberries across the border in May 2018. Through flash chilling, strawberry shelf-life can now be extended from three to as many as ten days, while the berries better retain appearance and flavor. Hasanov is not the only beneficiary of the new facility. As the leader of an informal 15-member group of local Hasanov views a modern strawberry farm during a strawberry growers with about 20 additional hectares of recent ASAP-organized study tour to California production, Hasanov is utilizing his cold storage for their This was the challenge that Miragha Hasanov faced benefit as well. In addition to allowing group members to when he contacted the USAID Agricultural Support to utilize the storage at cost (they are charged only for their Azerbaijan Project (ASAP) in 2017. Although he had share of operational costs), he buys berries from growers in developed a well-managed, 40-hectare open-field both the village and the wider region. This incremental strawberry operation, his revenue was completely volume enables Hasanov to scale up shipments to meet dependent on local market prices upon harvest. Not buyers’ volume requirements and take advantage of surprisingly, prices are lowest as the harvest reaches its economies of scale to ship at a lower unit cost. In all, the peak due to the glut of strawberries on the market. group expects to export 1600 tons of strawberries in 2018. In order to address this challenge, Hasanov drafted and “I want to thank USAID on behalf of the farmers’ submitted a proposal to ASAP to construct a cold storage group,” Hasanov says. “This valuable assistance will help facility on his farm in Goytepe village in Jalilabad, a region ensure the sustainability of strawberry production for in southern Azerbaijan. The project approved the proposal nearly 20 local families and support long-term and agreed to match the grower’s own $117,000 marketability for more than 50 regional strawberry investment with a contribution of $50,000 in USAID funds. producers.”
ASAP is a five-year, USAID-funded project to increase the incomes of agribusinesses and agricultural producers along the entire berry, hazelnut, orchard, pomegranate, and vegetable value chains. By supporting the growth and expanded exports of agribusiness SMEs through technical assistance by international experts and local Business Service Providers (BSPs), increased access to new technologies, marketing services, and finance, and strengthened international linkages, ASAP is contributing to the accelerated development of Azerbaijan’s rural and non-oil economy.
Agricultural Support to Azerbaijan Project (ASAP)
Fruit Producer Exports to New Advanced international standard for fresh produce quality and traceability. The training, which was conducted by a Markets with USAID Assistance certified Turkish specialist whom the USAID projects
ith a few notable exceptions, the primary export brought to Azerbaijan, was followed by field visits to Wmarkets for Azerbaijan’s agricultural produce conduct initial audits of DAD and other orchard remain Russia and other countries of the Former Soviet producers. Union (FSU). This is not just a carryover of Soviet trade DAD was also among beneficiaries whom REG flows, but in many cases it reflects the fact that producers supported to travel to Dubai in February 2016 to attend are not capable of providing the consistent quality and Gulfood, the region’s largest annual food trade show. supply required by other advanced markets. As DAD met several potential buyers there and subsequent Azerbaijani agricultural entrepreneurs develop their negotiations led to the shipment later that year to a United businesses, however, this is starting to change. These Arab Emirates (UAE) based wholesaler of 20 MT each of producers are increasingly seeking to diversify their sales plums and cherries, as well as 60 MT of apples to the channels into more lucrative modern markets. USAID is wholesaler and a grocery chain there. This marked a helping them to accomplish that by teaching them to dramatic change from its traditional exports to Russia, identify these markets’ needs and ensure that their produce Ukraine, and Kazakhstan. With support from REG, DAD meets them. also participated in the SIAL exhibition in Paris in 2016, One such beneficiary is D. Fruits LLC, a fruit producer where it was linked to a new Emirati buyer to which it was based in Guba in northeastern Azerbaijan that markets its able to sell 100 MT of apples. As a result, DAD’s overall produce under the DAD brand. The USAID Regional exports to the Gulf and other non-FSU countries Economic Growth Project (REG) and Agricultural skyrocketed from 200 MT in 2016 to 2400 tons in 2017. Such exports to new markets now represent 20% of DAD’s total production, and include India (via Dubai) and Iraq, in addition to the UAE. The company also began exporting cherries and apricots to Hong Kong and the U.K. this year, though contined shipping to the latter market will require international certification, which ASAP may help DAD obtain. The firm also has an agree- ment to start exporting apples to Malaysia in November and is currently negotiating potential direct sales to India.
DAD’s apples ready for sale
Support to Azerbaijan Project (ASAP) have assisted this producer of apples, cherries, and other orchard crops to improve its quality assurance, postharvest operations, and marketing through several project activities. Thanks to a REG-supported study trip to Italy for orchard fruit producers in 2016, DAD improved its postharvest Fruit to be shipped to UAE by DAD operations and invested €49,000 in the purchase of an Italian packaging machine. This equipment is providing Finally, DAD is seizing opportunities to collaborate for the marketing of produce in small 1-2 kg bags for with other Azerbaijani growers for mutual benefit. In individual retail sales at a 25-35% price premium. REG August 2016, it joined eight other industry leaders as a and ASAP organized Azerbaijan’s first-ever group founding member of a new Azerbaijani Association of training in GlobalG.A.P., which is the most important Fruit and Vegetable Producers and Exporters. ASAP is a five-year, USAID-funded project to increase the incomes of agribusinesses and agricultural producers along the entire berry, hazelnut, orchard, pomegranate, and vegetable value chains. By supporting the growth and expanded exports of agribusiness SMEs through technical assistance by international experts and local Business Service Providers (BSPs), increased access to new technologies, marketing services, and finance, and strengthened international linkages, ASAP is contributing to the accelerated development of Azerbaijan’s rural and non-oil economy.
Agricultural Support to Azerbaijan Project (ASAP)
USAID-Assisted Hazelnut Association government rebate on their annual exports in recognition of the foreign currency that they are bringing into Azerbaijan. Achieves Advocacy Successes Previously, only roasted and value-added hazelnuts fell under this category, but after AHPEA initiated working sessions he Azerbaijan Hazelnut Producers and Processors with the authorities to suggest adding raw kernels to the export Association (AHPEA), which was one of USAID’s promotion category, the President issued a June 2018 decree T first successful efforts to facilitate the creation and enabling raw hazelnut exporters to benefit from the program legal registration of an agribusiness association in the as well. This rebate will enable more SMEs to expand exports, country, now boasts more than 60 members. After bringing which in turn should help liberalize trade, reduce monopolies, together industry stakeholders and assisting them to gain legal and bring more foreign currency into the country. registration, the ASAP project trained its officers and More recently, excess levels of aflatoxins, dangerous executive staff, equipped a training room in AHPEA’s office molds that can form when hazelnuts are not dried and stored in Zagatala, and worked with it to develop a joint training properly, caused 30 truckloads of nuts to be barred from entry program for hazelnut growers. ASAP has also introduced a to the EU and returned to Azerbaijan from European ports of program to monitor for and has educated members and entry. As the customs lab was clearly not properly detecting Ministry officials about the potential threat posed to aflatoxins in hazelnuts, AHPEA set up a meeting with the Azerbaijani horticulture by Brown Marmorated Stink Bug newly established Azerbaijan Food Safety Agency (FSA) to (BMSB), an invasive pest that has caused major damage to discuss this problem. Mr. Orujov emphasized the desire to agriculture in the Republic of Georgia. work together to raise awareness among growers of their role in preventing aflatoxin through proper drying and storage, as well as the need to establish an internationally certified food safety laboratory to provide reliable food analyses and reassure foreign buyers. The FSA is now working to increase the reliability of testing. In July 2018, the Agency moved testing of hzelnut exports back to Baku on a temporary basis as it ramps up the standard operating procedures for testing and has helped mitigate the logistical inconvenience by providing transport- ation of samples to and from Baku and anonymizing samples The AHPEA board and Azerbaijan Food Safety to ensure greater testing integrity. An FSA delegation also Agency holding a joint meeting in Baku in June 2018 scheduled a visit to Zagatala for August 2018 to follow up on these discussions, indicating the seriousness with which the Registered only in 2016, the Association is already playing Agency is taking the Association’s lobbying efforts. a key role in developing the country’s hazelnut production. Finally, AHPEA was successful in its efforts to lobby for After APHEA Chairman Mr. Ismayil Orujov made several improved access by hazelnut exporters to the foreign currency recommendations to the Azerbaijani President at an they generate from foreign sales. The Financial Market entrepreneurship forum in Baku, including the need for a Supervisory Authority had imposed a limit on hazelnut nearby customs laboratory, such a lab was built at the customs exporters’ bank withdrawals. The government instructed office in Zagatala in 2017. Whereas it had taken 5-7 work days hazelnut processors to sign contracts with growers in order to to export a truck of hazelnuts due to a need to send samples to track hazelnut procurement, which is currently difficult given the central customs lab in Baku to certify them for export, the that most hazelnut purchases are in cash. Recently, AHPEA Azerbaijani government established a new lab in Zagatala, met with this government body and achieved temporary thereby reducing the process to just 1-3 business days. cancellation of this provision for the current season. Hazelnut Mr. Orujov, together with AHPEA members representing processors regained access to their foreign currency and Azerbaijan’s largest hazelnuts exporters, also met with the AHPEA agreed with the MOT to hold joint training sessions Minister of Taxes (MOT) to discuss new formalized export to educate growers on drafting the required sales bills, which procedures, which will provide the exporters with a 3% will now be required starting only from next year.
ASAP is a five-year, USAID-funded project to increase the incomes of agribusinesses and agricultural producers along the entire berry, hazelnut, orchard, pomegranate, and vegetable value chains. By supporting the growth and expanded exports of agribusiness SMEs through technical assistance by international experts and local Business Service Providers (BSPs), increased access to new technologies, marketing services, and finance, and strengthened international linkages, ASAP is contributing to the accelerated development of Azerbaijan’s rural and non-oil economy.