KOSOVO AGRICULTURAL GROWTH AND RURAL OPPORTUNITIES ACTIVITY Quarterly Report: April 2017– June 2017
July 20172017 This publication was produced for review by the United States Agency forfor International Development. It was prepared by Tetra Tech.
Prepared for the United States Agency for International Development, USAID Contract Number, AID- 167-C-15-00001 Agricultural Growth and Rural Opportunities (AGRO) Activity.
Prepared By: Tetra Tech 159 Bank Street, Suite 300 Burlington, VT 05401 Tel: 802-495-0282 Fax: 802-658-4247 Email: [email protected]
Principal Contacts: Mark Wood, Chief of Party ([email protected]) Claudia LaLumia, Program Manager ([email protected]) Carol Chan, Deputy Program Manager ([email protected])
KOSOVO AGRICULTURAL GROWTH AND RURAL OPPORTUNITIES ACTIVITY
Quarterly Report: April 2017–June 2017 : Oct 2015 - Sept 2016
July 2017
DISCLAIMER
The authors’ views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 1
TABLE OF CONTENTS
TABLE OF CONTENTS ...... I ACRONYMS AND ABBREVIATIONS ...... II EXECUTIVE SUMMARY ...... 1 1.0 VALUE CHAINS ...... 5 1.1 FRUIT VALUE CHAINS ...... 5 1.1.1 Apples and Pear ...... 5 1.1.2 Table Grapes ...... 11 1.1.3 Strawberries ...... 15 1.1.4 Raspberries ...... 18 1.1.5 Sour Cherries ...... 22 1.1.6 Blueberry ...... 28 1.2 VEGETABLE VALUE CHAIN ...... 31 1.2.1 Peppers and Tomatoes ...... 31 1.2.2 Gherkins and Cucumbers ...... 36 1.2.3 Lettuce ...... 39 1.2.4 Asparagus ...... 41 1.2.5 Medicinal and Aromatic Plants (MAP) ...... 44 1.2.6 Innovative Horticultural Value Chains ...... 48 1.3 LIVESTOCK ...... 52 2.0 CROSS-CUTTING ...... 55 2.1 AGRICULTURAL SUPPORT SERVICES ...... 55 2.2 AGRO-JOB CAREER CENTER ...... 61 2.3 ENVIRONMENTAL COMPLIANCE ...... 63 2.3.1 Environmental Compliance for IIF Activities ...... 65 2.4 GENDER, YOUTH, CVE AND MINORITY INTEGRATION...... 66 3.0 PERFORMANCE MONITORING PLAN (PMP) ...... 69 3.1 AGRO DASHBOARD ...... 69 3.1.1 Sales Performance ...... 69 3.1.2 Number of Individuals Trained Indicator Performance: ...... 69 3.1.3 Hectares under Improved Technologies ...... 69 3.2 GPS LOCATION OF CROPS ...... 70 3.3 PMP RESULTS ...... 70 4.0 IIF GRANTS AND SUBCONTRACTS REPORT ...... 76 4.1 GRANTS ...... 76 4.1.1 Activity Progress ...... 76 4.2 SUBCONTRACTS ...... 79 4.2.1 Activity Progress ...... 79 ANNEX I ...... 80 ANNEX II ...... 81
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT i ACRONYMS AND ABBREVIATIONS
AGRO Agricultural Growth and Rural Opportunities Activity APC Agroproduct Commerce B2B Business to Business CC Collection Center CDCS Country Development Cooperation Strategy CLA Collaborating Learning and Adopting CLE Contract Law Enforcement (Activity) COP Chief of Party COR Contracting Officer’s Representative CTA Chief Technical Advisor CVE Countering Violent Extremism DDD Dichlorodiphenyldichloroethane DO Development Objective DQA Data Quality Assessment ePORT Electronic Program Observation, Reporting, and Tracking EU European Union FACTS Foreign Assistance Coordinating and Tracking System FTF Feed the Future GlobalGAP Global Good Agricultural Practice GEM Gender Empowerment Measure GHP Good Hygiene Practice GMP Good Manufacturing Practice GOK Government of Kosovo HACCP Hazard Analysis and Critical Control Points IFC International Finance Corporation IIF Innovation and Incentive Fund IPM Integrated Pest Management IR Intermediate Result KAMP Kosovo Association of Milk Producers KCBS Kosovo Center for Business Support
ii KOSOVO AGRO: FY17Q3 QUARTERLY REPORT KDPA Kosovo Dairy Processors Association KIESA Kosovo Investment and Enterprise Support Agency KSA Knowledge, Skills, Abilities LOP Life of Program M&E Monitoring and Evaluation MAFRD Ministry of Agriculture, Forestry and Rural Development MIS Management Information System MOU Memorandum of Understanding MTI Ministry of Trade and Industry NGO Non-Governmental Organization NOA New Opportunities for Agriculture PePeKo Peme e Perime te Kosoves, or Fruits and Vegetables of Kosovo PERSUAP Pesticide Evaluation Report and Safe Use Action Plan PIRS Performance Indicator Reference Sheet PMP Performance Management Plan PPSE Promoting Private Sector Employment (Project) RF Results Framework SOW Scope of Work SoQ Standard of Quality SP Strategic Partner SPSS Statistical Package for the Social Sciences STTA Short-Term Technical Assistance TRMS Transparent Raw Milk Sampling USAID United States Agency for International Development USG United States Government VC Value Chain WAEI Women’s Agricultural Empowerment Index WB World Bank
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT iii
EXECUTIVE SUMMARY
This quarterly report precisely follows the format of the Agricultural Growth and Rural Opportunities (AGRO) Activity annual work plan 2017. The report does not restate the strategy and background by value chain or provide a description of the activities to be undertaken. Under each value chain and under the project level objective, the report lists the associated activities only. Each of these activities is listed, and described for completeness according to how they appear in the project work plan, regardless of the progress made towards their achievement due to the seasonal nature of the program. Tasks carried out in preparation for these activities are detailed under each activity heading. Following each objective is a table that has been extracted from the approved annual work plan highlighting the Performance Management Plan (PMP) indicator number that is most closely associated with it, the short name of the indicator and results achieved this year to date under Q1, Q2 and Q3 table headings. The present report FY 17 Q3 covers the spring and early summer of 2017 and captures the late season sales of frozen raspberry and dried medicinal and aromatic plants. This period was marked by unseasonal late spring frosts. This event was Europe wide, and has had an impact on production and markets throughout the region. Activity during this quarter concentrated on training in preparation for the 2017 production season as well as planting of new sour cherry areas scheduled for spring planting in Eastern Kosovo. Also during this spring season, work has continued with the ambitious plan to assist all raspberry growers in the Podujevo municipality (producing raspberries on over 400Ha) in obtaining international Global G.A.P food safety standard certification. The 4 associations that received operational grant support during Q2– the national raspberry, organic growers and fruits and vegetable processors associations as well as the Kosovo Agricultural Education center, initiated their work with project support. One additional association was added to the AGRO partnership during Q3 – the National Agricultural Input Supply Association. As a result, AGRO is serving now the full range of apex associations set to drive their respective sectors. Support to these associations will remain a focus throughout the remaining life of the project.
HIGHLIGHTS: FRUIT VALUE CHAINS It has continued to be a difficult season for apple growers who have faced significant losses in 2016 from an initial spring frost, then suffered once again from a late spring frost with temperatures of -5 C at the time when the crop was in late pollination and early fruiting stages. As a result, yield losses are expected to be as high as 50%. Nevertheless, the industry still had sufficient enthusiasm to come together to discuss the issues surrounding a national marketing campaign and showed an interest in forming a reconstituted national commercial association. Q3 saw the conclusion of an intensive apple awareness campaign carried out within local schools, reaching 2,614 students in all regions. The late spring frosts also negatively impacted table grape production with some areas being badly affected. The AGRO team spent considerable time training growers to manage the canopy after fruiting point damage. Spring frosts severely damaged fresh market strawberries with some fields experiencing 100% loss due to irreversible flower damage. Strawberry for the industrial market continues to show promise with a new CVE grant to SP Besiana-G destined to increase the area under strawberry production in the Viti region and 8 supply contracts concluded. Local market sales were $207,197 in Q3 despite the frost damage. Q3 saw very late season sales of $585,928 of frozen raspberry crop into western European markets. These volumes virtually cleared the stock holdover from the 2016 harvest. Encouragingly, and despite a 2016 season of depressed prices and delayed payments from buyers, 4 new collection centers were completed in Q3, adding almost 5,000 mt to the installed freezing capacity for the national crop. Global GAP certification continues in Podujevo with all the required soil samples and water samples having been taken and analyzed. The Podujevo municipality continued with its excellent collaboration, delivering most of the required farm equipment to farmers during Q3. Attendance at the Tutto Food fair in Milan was a highlight where the national raspberry brochure in Italian was very well received. Significantly, the sour cherry sector was effectively revitalized during Q3. In total, 44,335 excellent quality trees of 2 varieties were imported from Hungarian suppliers and 90 Ha of new orchards were established in 4
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 1 municipalities (to be GPS validated in Q4). Irrigation establishment by the municipal teams was a serious issue by the end of Q3, requiring ongoing pressure by the AGRO team. Support to the now additional 20 Ha in the blueberry value chain continued during Q3, with a series of sequenced STTA assignments. The unseasonal frost and a few isolated hail storms added to the pressure of getting a fresh market crop into European markets. Total sales reported by the end of Q3 amounted to $39,066. Full GlobalGAP Certification was achieved by AGRO SP Boost Berry during Q3.
HIGHLIGHTS: VEGETABLE VALUE CHAINS To overcome the challenges to upgrading the production practices of the pepper and tomato value chains, 128 farmers have undertaken on-farm trainings through a grant to AGRO SP Agrocelina. Effective pepper production is being highlighted across the 9ha of model production established with grant support in Q3. A total of 128 growers signed production contracts to supply pepper processor Ananas Impex – an excellent example of a fully contracted value chain. Q3 saw continued strong production from the gherkins and cucumbers crop. Although there were some production problems associated with micronutrient imbalances at the very high yields being achieved, sales have been encouraging. Sales at the collection center level for Q3 totaled $805,262 – a strong performance, now well entrenched now in the minds of the growers and buyers. The lettuce value chain continues to show a stable albeit low level of production. Q3 sales of $66,527 almost exactly equal Q2 and Q1 performance respectively. This implies a steady market matched by production. Until the next level of market demand is felt, this value chain is expected to remain at this level. Asparagus, like lettuce, has continued to be a highlight of early spring production, but no significant additional areas under crop have been developed. All areas under crop were well managed, and despite the late spring frosts which reduced salable yield by one “harvest round”, sales through Q3 amounted to $44,163. Local demand is beginning to stimulate increased interest in new plantings, but at a very modest level. Three small regional collection centers are now operating, delivering competing product to market. The MAPs sector continues to grow, with, encouragingly, cultivated product beginning to dominate. This development is resulting in very strong interest from women’s farming groups in small scale Micro MAPS production. Q3 saw an expansion of growers under contract especially for Micro MAPS supply. AGRO initiated support to women’s groups in Kacanik and Malishevo as well as production among minorities, of Micro MAPS in Istog. The solar drying technologies introduced in Q1 appear to have resolved the drying bottleneck for small producers and opened the way for significant expansion of this MAPS component. Inbound marketing visits during Q3 continued to request for more and more product. Export sales during Q3 amounted to $2,052,849 and are ongoing. All 734 Ha of plantings (to be GPS validated in Q4) of pumpkin for seed for export were completed during Q3. This includes 4Ha under hybrid plantings which are looking far superior to the open pollinated materials under commercial production. AGRO supported growers during Q3 in their search for new lucrative markets for pumpkin seed including local industry users. The 30 Ha of organic production was interim certified during Q3.
HIGHLIGHTS: DAIRY VALUE CHAIN The promotion of pasteurized milk remains a priority for AGRO support to the diary sector. Through the dedicated campaign sub contracted by the program in support of the industry, fresh milk sales continuing to be encouraging because of consistent messaging in the media as well as strong in-store promotion programs. Sales this year to date through Q3 are now $730,870 or 73% of AGRO’s annual target. Dairies are satisfied with sales and some are making renewed efforts to upgrade their packaging and presentation.
CROSS-CUTTING The highlight this quarter continued to be the rapid progress toward full GlobalGAP certification of all the approximately 500 farmers in the Podujevo Municipality. The enthusiasm with which the Municipality and central government has now embraced this critical marketing element for Kosovo is encouraging. This will go a long way to generate enthusiasm for next year’s national program. In parallel with this work, Q3 saw the international certification of 14 GlobalGAP internal auditors and 17 HACCP internal auditors. These went
2 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT on to external auditor training, results of which will be final in Q4. For the first time now, certifications in Kosovo can be supported by local auditors, reducing costs and improving efficiency.
GENDER, YOUTH, CVE AND MINORITIES
AGRO initiated support to several women’s groups as growers of MICRO MAPs products. The introduction of the solar drying mechanisms has opened opportunities for many small grower groups ready to meet the increasing market demand for their product. Grants let during Q3 to women’s groups in Kacanik and Malishevo – 2 new areas for Micro MAPS production by small growers - have been well implemented and sales will materialize during Q4. The Agro Jobs Career center received its grant support during Q2 and placed the first round of 11 graduates with the private sector during Q3. Reports from the firms and the graduates are positive. Micro MAPS production in Istog, by members of the Egyptian, Roma and Ashkali communities is moving ahead steadily with harvest expected in early Q4. CVE grants to beneficiary groups through SPs were concluded in Q3, with grants to LAB in Hani e Elezit, Besiana-G for Viti and Agrium for beneficiaries in Ferezaj. Total grants awarded under this component amounted to $247,787 for 105 beneficiaries producing industrial strawberries, raspberry, MAPS and greenhouse vegetables. RESULTS SUMMARY The table below shows Q3 FY17 results against indicators reported on a quarterly basis.
FY2017 FY2017 FY2017 2017 FY2017 Performance Indicator Name Q1 Q2 Q3 Performance Target Results Results Results to date R 1.1: Number of individuals who have received USG-supported short-term 3000 478 1482 475 81% agricultural sector productivity or food security training R 1.3: Number of hectares under improved technologies and/ or 1500 549 180 744 99% management practices R 1.4: Number of unique visits from 200 53 69 44 83% youth using the AgroJobs Center R 1.5: Average hits per month to the web-based agricultural job 1500 - - 1457 97% identification services R 1.6: Number of firms receiving USG assistance to invest in improved 30 - 6 6 40% technologies R 2.1: Value of domestic and export $25.8M $2,803,426 $5,150,638 $4,931,387 50% sales of supported value chains R2.2: Number of new linkages with domestic supermarkets through long- 5 - - term contract agreements R 2.3: Number of new regional and international market opportunities 10 - 7 - 70% captured R 2.4: Number of supply contracts between producers and strategic 600 47 145 591 130% partners R 2.5: Number of strategic partners 30 3 3 9 50% issuing supply contracts
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 3 FY2017 FY2017 FY2017 2017 FY2017 Performance Indicator Name Q1 Q2 Q3 Performance Target Results Results Results to date R 2.6: Value sales as result of supply contracts established between $5M $1,748,014 $1,373,754 $938,610 81% producers and SPs R 2.7: Number of SPs organizing B2B and other market investigation events 20 1 1 1 15% and trade shows R 2.8: Number of people attending strategic B2B and market investigation 720 57 70 25 21% events and trade shows organized by or in collaboration with SPs
4 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 1.0 VALUE CHAINS
1.1 FRUIT VALUE CHAINS
1.1.1 APPLES AND PEAR
OBJECTIVE 1: IMPROVED FARM PRODUCTION AND FOOD PROCESSING
Activity #AP311: Improve orchard management and service provision ACTIVITY PROGRESS This activity is being carried out in collaboration with the Agrojobs Career Center of the University of Pristina’s Faculty of Agriculture. The goal is to prepare and ultimately support 5-10 young graduate students in becoming entrepreneurial service providers. First, the students received trainings on good agricultural practices regarding fruit production, provided by Maxhun Shehaj, AGRO’s Senior Fruit Production Manager, and Naim Krasniqi, the program’s Apple Value Chain Specialist. The AGRO technical team then selected the best students, based both on these trainings and on presentations made by the students. As a result of this activity, the students who provided the best presentations on their entrepreneurship projects were asked to prepare applications for small grant support, valued at between €3,000 and €5,000, for startup funding to launch their agricultural service provider businesses. These were presented during Q3, during which time the final selections were made, and grant documentation initiated. PLANNED FOR THE NEXT QUARTER - During Q4, the final group of successful students will sign their contracts, and AGRO will assist the selected beneficiaries in the implementation and monitoring of their activities. ADDITIONAL ACHIEVEMENTS Open Field day in Bllagaje, Peja. A field day at the site of AGRO’s strategic partner, UVB Association, based in Bllagaje, Peja, was conducted during Q2. A total of 20 participants attended, including municipal extension agents from Peja and Deçan, apple lead farmers and members of UVB association. RTK television was present and covered the event for television. The field day included a demonstration of new tools for the pruning and mulching of apples. AGRO has provided necessary equipment to the association (two atomizers, two mulchers, a machine for manufacturing wooden boxes and professional battery-powered pruning shears) that will serve to demonstrate the added value of improved member services.
AGRO technical team, promoting new technologies for pruning and mulching at UVB’s site in Peja
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 5 Field visit with young graduate students in Llugaxhi Lipjan – The Program conducted a field day during Q2 in Llugaxhi, Lipjan for young graduates from the Faculty of Agriculture. The students had a chance to see, in practice, demonstrations of apple and pear pruning and to practice different pruning methods under the supervision of Maxhun Shehaj, Program Senior Fruit Production Manager, and Naim Krasniqi, Apple VC Specialist, at SP “Agrovizioni” facilities. The graduates stated that they were very satisfied with this visit. For some of them, incredibly, it was their first visit to the field to witness and practice these critical top fruit management techniques. It is hoped that some of these graduates will enter into agricultural advisory service provision in the future.
The Program technical team demonstrated apple and pear pruning and greenhouse activities to young graduates from the Faculty of Agriculture at SP “Agrovizioni” facilities in Llugaxhi, Lipjan
Activity #AP312: Strengthen Input Dealers to disseminate new technologies ACTIVITY PROGRESS Provision of training on fertilization to apple and pear lead farmers - The Program performed one training session in Pristina during Q2 in collaboration with the input supplier “AgroPharma,” based in Vitia, and ICL, a leading international fertilizer company. The training on the proper fertilization of apples under intensive production was carried out by Gabor Zsigo, the manager of the ICL consortium for Eastern Europe. Fifty apple and pear lead farmers, agriculture extension agents and young graduates from all over Kosovo attended this training.
Training for lead apple farmers on proper fertilization, conducted by Gabor Zsigo – an ICL manager.
PLANNED FOR THE NEXT QUARTER - The program will continue to work closely with the input supplier’s association to complete this activity. The program together with the lead input suppliers will craft further professional trainings to be carried out during the summer season.
6 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT Activity #AP313: Innovation in SPs post-harvest and processing activities ACTIVITY PROGRESS This activity is now complete. During Q1, the AGRO program, together with its Strategic Partner AMA and the Ministry of Agriculture, inaugurated a new apple grading line installed at AMA’s new facility in Lugaxhi, Lipjan. USAID, through the AGRO activity, assisted in the purchasing of the line through a grant valued at €93,000, while Strategic Partner AMA invested more than €140,000 in the construction of the facility and the accompanying areas. The new unit washes, brushes, dries and grades apples by size and weight. It also sorts apples and other round fruits by color. The operation of the unit supports 20 new employees, mainly women. The packaging capacity of the unit is 5 metric tons per hour. This unit can therefore support up to 400 hectares of commercial plantings. It represents an excellent opportunity for the apple-growing central region.
Launch day of the new apple grading line at AMA
OBJECTIVE 2: INCREASED LINKAGES TO DOMESTIC, REGIONAL, AND INTERNATIONAL MARKET
Activity #AP321: Strengthen long-term contracts ACTIVITY PROGRESS Frutomania, a juicing company in Gjilan, entered into 71 supply contracts with growers during Q1 and these were fully ratified during Q2, creating a new production relationship between growers and this important buyer. These contracts will guarantee a seasonal supply and, if successfully completed in 2017, could lead to the signing of long-term supply contracts. Fatosi-Com, a wholesale trader, also entered into one supply contract for the first time during Q1. It too may also become long-term upon successful completion. It remains to be seen how these early contracts are fulfilled during the harvest season later in 2017. PLANNED FOR THE NEXT QUARTER
- Continue to promote sustainable long-term supply contracts in this difficult market. Activity #AP322: Improve marketing and sales of strategic partners ACTIVITY PROGRESS A round-table discussion with apple stakeholders was conducted in Q1. The main aim of this activity was to discuss how to improve sales of locally produced apples. This activity attracted 17 participants, including apple lead farmers from the main apple-producing regions in Kosovo, representatives of supermarkets and lead wholesale traders from the main green markets in Pristina as well as representatives of different apple packaging companies. During the meeting, participants reached several important conclusions: ‒ The industry should produce an annual harvest estimate and monitor imported volumes; ‒ More attention should be paid to varieties as this relates to market demand;
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 7 ‒ The grading of apples should be based on market requirements; and ‒ Attention should be paid to apple packaging for local market consumption and improved packaging will help with entering new export markets. One issue that was again raised is the issue of VAT application for apples and pears. The industry leaders then worked with AGRO to further define the problem prior to articulating it before the appropriate officials at MAFRD. These discussions involved the advisor to the Agriculture Minister. Round-table discussion on improving the sale of Improved promotion of apples – In order to apples produced locally improve the promotion of domestic apples, during Q2, AGRO marketing and technical staff organized preparatory meetings with two larger apple producers, “Dhemetra” and “AMA,” to plan joint activities for 2017. In addition, another meeting was carried out during Q3 to improve the marketing and promotion of apples. AGRO, “Dhemetra” and AMA planned joint activities for the end of the 2017 season. One proposal is to purchase cardboard cartons for local markets as well as printing an apple brochure and paying visits to regional countries to further the development of exports. Thus, the approach for apples showed an interesting change during Q3. Where previously, producers were trying to persuade supermarkets to buy local, they now see exports as an opportunity that might generate better results. AGRO will engage an international STTA for an apple marketing and sales strategy. In a meeting held during Q3, commercial apple growers agreed that marketing training was critical to their development. As such, it was decided that AGRO will engage an international STTA to train SPs on apple marketing and sales strategy. The purpose of this assignment is to build the capacity of the SPs through trainings on marketing and sales with SPs, lead farmers and collection centers. As the part of this assignment the consultant will present experiences from other countries regarding branding, marketing and sales strategy for apples. Through this activity, the consultant will help apple SPs to improve their apple marketing and sales strategies to better access local and export markets. The SOW for this activity was prepared for approval during Q3; the STTA will carry out his assignment early in Q4. PLANNED FOR THE NEXT QUARTER - Continue providing coordination among representatives of apple lead farmers, supermarkets, traders and representatives of the apple associations, as it relates to marketing activities. Activity #AP323: Apple school educational program ACTIVITY PROGRESS The ‘Apple School Educational Program’ has been carried out, according to the agenda and plans for its implementation. During Q3, the final presentations occurred in 24 primary schools, in 21 municipalities throughout Kosovo. The activity was carried out by two interns who completed presentations in Pristina, Prizren, Gjakova, Peja, Mitrovica, Gjilan and Ferizaj, Lipjan, Suharekë, Malishevë, Shtime, Vushtrri, Viti, Rahovec, Podujevë, Skënderaj, Fushë Kosovë, Obiliq, Klina, Istog and Deçan. In all, 2,614 pupils in the third, fourth and fifth grades heard the presentation. The main aim of this activity was to raise awareness of the consumption of local apples and to generate new consumers who will drive demand for products from Kosovo.
8 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT Name of the No. Venue Presentation date No. of participants primary school 03.02.2017 Faik Konica x 2 03.03.2017 1 Pristina Ismail Qemaili 363 16.03.2017 Elena Gjika 24.03.2017 2 Prizren Abdyl Frashëri 23.03.2017 89 3 Gjakova Mustafa Bakija 09.03.2017 98 4 Peja Xhemail Kada 02.02.2017 80 5 Mitrovica Migjeni 23.02.2017 63 6 Ferizaj Gjon Serreqi 02.03.2017 90 7 Gjilan Selami Hallaçi 15.02.2017 65 8 Lipjan Vëllezërit Frashëri 27.04.2017 145 9 Suharekë 7 Marsi 03.05.2017 120 10 Malishevë Ibrahim Mazreku 04.05.2017 175 11 Shtime Emin Duraku 28.04.2017 90 12 Vushtrri Naim Frasheri 11.05.2017 110 13 Viti Bafti Haxhiu 10.05.2017 180 14 Rahovec Isa Boletini 12.05.2017 105 15 Podujevë Shaban Shala 16.05.2017 120 16 Skënderaj “Shaban Jashari” 19.05.2017 120 17 Fushë Kosovë “Mihal Grameno” 23.05.2017 126 18 Obiliq “Ibrahim Rugova” 24.05.2017 105 19 Klina “Ismet Rraci” 15.05.2017 155 20 Istog “Bajram Curri” 25.05.2017 110 21 Deçan “Lidhja e Prizrenit” 15.05.2017 105 Total 2,614 Summary of presentations provided in primary schools in different municipalities
Reflections of the teachers “Your initiative is very important for the promotion of local products, since we are a young country, the promotion of local products to the pupils plays a crucial role, because the foundation begins with education and raising awareness of the pupils. To work today with children, means to have a guaranteed future for tomorrow,” said Mrs. Kumrije Bajraktari, teacher at the primary school “Faik Konica” in Prishtina. Reflections of the pupils Riana Zogu a pupil in the fourth grade at the “Ismail Qemaili” primary school in Pristina said, “I really liked this presentation so much, because until now I thought that apples were not cultivated in Kosovo, but now that I know that there are quality apples produced in my country, I will always choose and buy local apples.” Meanwhile, a pupil in the third grade at “Faik Konica” school, Fatbardh Selimi, said “I enjoyed this presentation a lot. I learned many things concerning the features of apples. In this regard, I learned a lot about apples produced locally. By seeing the benefits of consuming local apples, I will always consume the products of Kosovo, consuming local products, my country will be stronger”.
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 9 Provision of the presentation by the AGRO interns to enthusiastic pupils
OBJECTIVE 3: STRENGTHENED STRATEGIC PARTNERS
Activity #AP331: Support National Fruit Sapling Association to improve labeling ACTIVITY PROGRESS Support MAFRD and Fruit Sapling Association to Improve Labeling This activity was completed during Q1. A dedicated label printer was procured, along with custom software for the management of a national database of fruit tree certifications. This equipment was positioned during Q2 in the office of the Ministry of Agriculture to maintain the national database of registered nurseries as well as information on their production and sales. This will be crucial for the inspectorate and to improving standards, and hence will support producer confidence in locally produced fruit tree planting material. With this support, all registered nurseries will be able to provide planting material fully regulated by the appropriate authorities. ADDITIONAL ACHIEVEMENTS During Q3 a round-table discussion with the apple lead companies was conducted. The round-table discussion was conducted with 10 apple lead companies to discuss the main challenges facing the sector. The main issues or priorities that were raised during this round table were as follows: a) lowering the VAT on fruits (with a particular emphasis on apples) from 18% to 8% b) the enforcement of insurance for agricultural crops c) introducing greater incentive measures for local apple growers An official paper was prepared with support from AGRO technical staff and will be presented to the new government. The large commercial apple producers will address this paper to the minister of agriculture. During Q3 a coordination meeting was held with representatives of the Kosovo Tax Administration Agency to organize trainings - The main aim of this meeting was to organize a two-day training to be carried out by officers of the Tax Administration Agency. It was agreed to present the training to the different actors in agriculture such as representatives of “Mjedra e Kosovës”, “Organika”, “PePeKo” and the Union of Fruit Producers in Kosovo association. The training will cover all the issues concerning taxation as well as an explanation of the updated law on VAT in Kosovo. It was agreed by both parties that the training will take place at the beginning of July.
10 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT RESULTS THIS QUARTER
Short Name of the FY17 Q2 FY17 Q2 FY17 Q3 Number FY17 Q1 Actual Indicator Actual Actual Actual R 1.1 No. of people trained 16 127 10 20 R 2.1 Sales $460,100 $197,528 $102,015 R 2.4 Contracts 69 R 2.7 SP’s B2B 10 10
1.1.2 TABLE GRAPES
OBJECTIVE 1: IMPROVED FARM PRODUCTION AND FOOD PROCESSING
Activity #TG311: Supporting SPs to upgrade to commercial production technologies ACTIVITY PROGRESS The forced-air cooling chamber installed in Suhareka at the ISeferi company was completed and will play a crucial role in 2017 in the marketing of table grapes. It is the first such system installed in the table grape sector in Kosovo. Local suppliers involved in this process have gained experience in manufacturing and installation challenges for this type of system. Three refrigeration suppliers (Osa Termosistem, Frigo Toni and Ital Term) learned about the importance of the correct choice of coolant for this demanding system. Local markets were able to supply monoethylene glycol instead of propylene glycol, the product most commonly used for this unit. Volunteers from Engineers Without Borders U.S. (EWB) supported the design and installation of the unit. Following a successful season of training during 2016, ISeferi has linked up with 50 commercial growers who are interested in applying production technologies recommended by the company. Three (3) modular trainings have been drafted thus far by ISeferi and its professional staff, all with AGRO support. The difference between the new training modules and the previously provided trainings lies in the fact that the collection center is putting quality criteria as the objective for all field actions and is thus changing the thinking and practices of commercial growers.
Table grapes supplied to ISeferi collection center (left) and packaging in process during Q1 In January 2017, low temperatures hit many production zones that exceeded critical lower limits for table grapes. In some parts of the country, temperatures of minus 24oC were recorded. The frost was expected to have damaged buds. An evaluation was carried out by local experts mentored by AGRO staff. The level of damage was influenced by the management of vineyards during the previous vegetation period, particularly where there had been an excessive use of nitrogen, which stimulated the overgrowth of young shoots. That in
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 11 turn led to failure of the plants to lignify prior to winter dormancy. At the end of February and the beginning of March, the first visual evaluations were done. The Bujku TV show attended one of these exercises in the field where local STTA demonstrated practical evaluation methods to distinguish between damaged and healthy buds. Initial reports indicated that the variety Cardinal on northwest-facing slopes suffered damage between 15% and 50%, depending on the previous year’s canopy management. Varieties such as Muscat Hamburg, Italia, and Victoria on the same slopes suffered damage of between 20% and 30%. Damage was far less on south-facing slopes. Thirty-five (35) table grape growers, all potential partners of ISeferi, conducted winter pruning supervised by the ISeferi agronomist. Basic instruction by AGRO staff was provided to the ISeferi professional team with a focus on maintaining quality and increasing yields. During Q3, production areas experienced a very late frost with low temperatures of -70C for three nights in a row. This extraordinarily cold weather damaged up to 100% of young shoots in some areas. Less damage was recorded at higher altitudes and on terrain with better air circulation. The picture on the upper left shows sleepy buds that will break in As presented in the following picture, buds in spring even if the primary one is destroyed by the frost. The right picture shows a destroyed bud. fruiting laterals were damaged by frost, reducing expected yield.
Long lateral (A) without young shoots as a result of frost injury. Consequently, the yield is expected to be very low. Young shoots emerging from the trunk base (B), are expected to provide some yield to mitigate expected losses The AGRO team met with Haziz Tafaj, General Manager of the AgroKosova Company, to discuss their long-term objectives and plans in the table grape sector. The company owns over 1,200 hectares of cultivated land with 200 hectares under grape cultivation. The company has recently planted 40 hectares with wine
12 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT grapes and top fruits and their projections for 2018 are to establish 70 additional hectares. A 4,000 m3 cooling facility for grapes and fruits will also be constructed in 2017. The firm’s parent company is providing technical advice from Italy, but the concept of engaging young graduates has been explained with a focus on the possibility of AgroKosova engaging these agronomists in to support their program and planned activities. This idea will be further developed by the company.
Newly emerged bunches and well-managed crop at Kosovo Holdings
Small and medium growers are adopting the canopy management systems introduced by USAID NOA, and followed up by AGRO, in newly established vineyards. Growers were advised to pay particular attention to plant protection, proper crown formation in the newly established sites, use of proper fertilizers and correct utilization of drip lines in sites where they have been established. It has been observed that MAFRD is still issuing grants promoting a very high number of vines per hectare, which doesn’t necessarily guarantee high yield or improved quality. One and a half (1.5) hectares of new vineyards were established, implementing all new technologies introduced previously by USAID through the NOA program. The support system was manufactured locally. Instructions on the establishment, including variety selection and planting distances, were provided by service providers trained by NOA and later by AGRO. In parallel to this, there are growers implementing MAFRD grant schemes still planting unrealistically dense vineyards to meet criteria New vineyard on a rocky site with multiple T system established by the government. These vineyards total trellises. Here, vine growth is very promising. about 7 hectares.
New plantations at different stages of development.
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 13 PLANNED FOR THE NEXT QUARTER ‒ Provide training to selected growers on implementing best agricultural practices, through local STTA and direct to farmers through field visits; and ‒ Follow up on the idea of AgroKosova Holding’s hiring young graduates to support their operations. Activity #TG312: Support SP to manage processing of Table Grape ACTIVITY PROGRESS Based on the 2016 harvest experiences, AGRO supported ISeferi to estimate the outcomes for the 2017 harvest and to plan accordingly. In 2016, growers trained by ISeferi produced more than 1,000 metric tons of table grapes. Of that total, 976 tons were qualified as premium product and offered to local markets, after being processed through the packing facility. The 2017 harvest season is set to produce at least 1,100 tons of premium quality product, despite losses due to frost damage. Muscat Hamburg is the most widely cultivated variety (more than 50%) followed by Hafuz Ali (25%) and Cardinal at about 15%. The firm is now capable of handling the differing harvest and packing requirements of these particular varieties. Additionally, during the 2016 harvest season, AGRO and its partners with EWB-US assisted the firm in identifying and addressing areas of weakness in its storage and packing systems. Modifications, to be implemented by the firm in 2017, include critical adjustments to humidity controls, air-circulation improvements, and refinements to the insulation parameters of the storage chambers. The Iseferi refrigeration system, supported during Q1 by AGRO partner EWB, repaired during Q2, and tested during Q3 is ready to provide dedicated cooling for table grape harvests in Q4. The director of the Rahoveci Institute and his professional team met to discuss progress on the installation of a meteorological and disease forecasting system. Supported by the Italian project KosAGri, two stations in Rahovec and one in Suhareka have been installed thus far. AGRO started working during Q3 on an IPKO initiative to install more reference stations in different regions to provide climatic data and recommendations for other crops, such as raspberry and apples. This investment is designed to provide a valuable service to agriculture and to use the IPKO platform to provide the necessary data transmission to farmers. PLANNED FOR THE NEXT QUARTER ‒ Follow up on the initial cooling of the table grape harvest and report on results; and ‒ Follow up the simple cooling system’s introduction to the growing community.
OBJECTIVE 2: INCREASED LINKAGES TO DOMESTIC, REGIONAL, AND INTERNATIONAL MARKET
Activity #TG321: Support SP to conduct B2B meetings involving growers and Italian growers ACTIVITY PROGRESS A B2B strategy has been discussed with ISeferi’s professional staff. Two company staff members will travel on a cost-share base to Italy at the beginning of the harvesting period, likely at the end of August or the beginning of September, 2017. Luigi Catalano from the Bari Institute has been contacted with a request to draft a tour agenda for a maximum of 5 people. Marketing topics will comprise the core of the agenda and the supply chain for table grapes, from harvest to supermarkets, will be presented to the group from Kosovo. Based on his suggestion, the tour will take place by the end of August, with a maximum of 5 people. Arrangements for the trip to Italy for commercial personnel from ISeferi and one local expert were concluded during Q3. The trip is planned to occur at the end of August, as recommended by the Italian counterpart Luigi Catalano, who was requested to support AGRO in organizing the tour.
14 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT Two potential buyers from Switzerland and Norway have approached ISeferi expressing their interest in importing premium Kosovo-grown table grapes. Data on varieties, potential quantities and time of delivery have been provided. ISeferi Company personnel travelled to the Istanbul agricultural products show to promote their product and search for markets for Kosovo table grapes. In addition to this, the AGRO Marketing Specialist has discussed their 2017/2018 marketing program with ISeferi sales management. The company is seeking new packaging material in the region. Once they have a range of different packaging options, ISeferi and AGRO staff will meet with major wholesale market players in Pristina and supermarkets to explore possibilities of selling cooled and packed table grapes. ISeferi is now networking for potential sales to Switzerland and Norway, and will be more dynamic during Q3 when the company expects to conduct B2B meetings with potential market players. A trip to the UK by ISeferi management and agronomists is also planned for Q4 as a result of the company’s market investigations. PLANNED FOR THE NEXT QUARTER ‒ Facilitate ISeferi and AgroKosova Holding Company meetings on marketing and production.
OBJECTIVE 3: STRENGTHENED STRATEGIC PARTNERS
Activity #TG331: Provide training to SP on business management ACTIVITY PROGRESS AGRO is working with Recura to identify potential SPs interested in improving their business practices. ISeferi will likely receive financial and management training in support of its table grape business. A meeting between AGRO subcontractor, Recura, and ISeferi was organized to identify its needs in support of improving marketing practices. However, due to ISeferi staff priorities and a mismatch in expectations, the meeting was not concluded. RESULTS THIS QUARTER
Number Short Name of the Indicator FY17 Q1 Actual FY17 Q2 Actual FY17 Q3Actual R1.3 Tech HA 7 R1.6 Firms new Tech - 1 R2.7 SPs organizing B2B 1 1
1.1.3 STRAWBERRIES
OBJECTIVE 1: IMPROVED FARM PRODUCTION AND FOOD PROCESSING
Activity #SB311: Increase strawberry crop production by introducing and expanding cultivation of varieties for processing ACTIVITY PROGRESS During Q1, an irrigation system covering 5 hectares of newly planted strawberry orchards was delivered by AGRO to the Fresh Fruit-PR strategic partner in Lipjan to support the growing of fresh fruits for processing. Fresh Fruit-PR, in cooperation with local farmers, is in the process of expanding cultivation of the Zenga Zengana strawberry variety, which is already contracted for export to the EU. Under this activity, the strawberry runners are being financed by the farmers themselves or in conjunction with the municipality of Obiliq, while AGRO is supporting the irrigation systems. Strawberries are being planted in 8 different plots
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 15 managed by 7 farmers in the following municipalities: Obiliq (2.1 ha), Podujeve (0.5 ha), Gracanica (2.1 ha) and Lipjan (0.3 ha). Two of the farmers are women. The crop overwintered well. Unfortunately, early spring frost and heavy rain had an impact, as it affected the blooming of some strawberry fields, reducing yield potential and delaying the first harvests. During Q2 and Q3, AGRO intensified cooperation with the SP Besiana-G company and with the municipalities of Ferizaj, Kacanik and Viti, which are all interested in increasing strawberry production. They are specifically interested in industrial strawberries, which offer a diversified One of the new strawberry plots established market outside the usually saturated market for fresh fruit. this year in Lipjan The activity covers expansion of new strawberry plantings by involving youth in the sector. Besiana-G has signed a MoU with these municipalities to cost-share the establishment of strawberry orchards by youth on small plots. Through Besiana-G, the cultivation of strawberries by young farmers interested in the highly marketable Zenga Zengana industrial variety, will demonstrate the economic opportunities that exist in agriculture and that agribusiness can provide a sustainable income for their future. Currently, the project is at the stage of selecting the company that will deliver the 350,000 strawberry runners, which will be planted during the next quarter (Q4), ensuring establishment prior to the winter dormant period. PLANNED FOR THE NEXT QUARTER ‒ Establish new orchards with industrial strawberries.
OBJECTIVE 2: INCREASE LINKAGES TO DOMESTIC, REGIONAL, AND INTERNATIONAL MARKETS
Activity # SB321: Facilitate market outbound B2Bs for SPs ACTIVITY PROGRESS During Q1, AGRO worked on preparations for the participation by identified strawberry SPs in the international Fruit Logistica Fair in Berlin. Two companies were identified as SPs within the strawberry value chain interested in participating in the Fair in order to find direct markets for Kosovo’s industrial strawberry exports. During Q2, AGRO lead the group and coordinated the visit to Berlin, where representatives of Besiana-G from Ferizaj and Hit Flores from Dragash had an opportunity to create new linkages with interested buyers and input dealers. The activity was implemented through the National Association “Mjedra e Kosoves,” which is supporting SPs active in both raspberries and strawberries for industrial market. This activity was implemented in parallel with Activity #RS321. During Q3, from June 20 through 22, the Program organized, for the sixth year in a row, (previously supported by NOA) the Strawberry Promotion Days. The event was held in downtown Pristina, in parallel with the annual blueberry promotion days. Five strawberry farmers, all young graduates supported in 2016 by USAID in establishing strawberry orchards, presented strawberries dedicated for fresh consumption. These were the first fruits of the Albion variety to ripen this season; the harvest will peak between July and August. DCM Colleen Hyland from the U.S. Embassy in Pristina and James Hope, the USAID Kosovo Mission Director, met with the young farmers. The high level representatives were invited by the students to visit their orchards and taste the fruits directly from the field. The event was covered by local press and media (RTK, TV21, Rrokum, Kosova Press, Tribuna Chanel, etc.).
16 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT Left: Young graduate recipients of AGRO strawberry production grants. Right: TV coverage of strawberry promotion event in Pristina.
PLANNED FOR THE NEXT QUARTER - Organize a field day in at least one of the strawberry orchards established with USAID/AGRO support
OBJECTIVE 3: STRENGTHENING STRATEGIC PARTNERS
Activity #SB331: Financial management and leveraging funds for CCs & Processors ACTIVITY PROGRESS AGRO supported Fresh Fruit PR in leveraging funds required to increase cultivation of strawberries for processing. The municipality of Obiliq has already supported farmers with enough strawberry runners to plant 2.1 hectares. During Q3, meetings continued with Ferizaj municipal authorities and Besiana-G to support the establishment of new industrial strawberry orchards. Thus, the Municipality of Ferizaj is supporting the establishment of 5 hectares while Viti municipality has agreed to support and additional 1 hectare for planting in August 2017. PLANNED FOR THE NEXT QUARTER ‒ Continue to work on leveraging funds for strategic partners through project-supported linkages to financial institutions and other donors. RESULTS THIS QUARTER
Number Short Name of the Indicator FY17 Q1 Actual FY17 Q2 Actual FY17 Q3Actual R1.3 Ha New Tech 5 R2.1 Sales $207,197 R2.4 Contracts 8 R2.8 People in B2B 2
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 17 1.1.4 RASPBERRIES
OBJECTIVE 1: IMPROVED FARM PRODUCTION AND FOOD PROCESSING
Activity #RS311: Training of Trainers to develop capacities to manage raspberry fields ACTIVITY PROGRESS The Program, through the Kosovo National Raspberry Association ‘Mjedra e Kosoves,’ completed a training of trainers activity to develop raspberry field management capabilities. During the five days of training provided, selected speakers spoke on topics including: presentation skills, safe use of pesticides, raspberry diseases and management of irrigation, fertigation and the management of newly planted raspberry orchards. Participants in this training were young agronomists working with collection centers and raspberry associations as well as graduate students from the Agrojobs Career Center within the Agriculture Faculty. The presentations drew 67 participants. These agronomists have been deployed by Training-of-Trainers for young agronomists organized strategic partners to provide frequent farmer in collaboration with the Mjedra e Kosoves association. information sessions and to be able to respond to ad hoc requests for information on crop management. Activity #RS312: TA for new raspberry farmers through input suppliers ACTIVITY PROGRESS Program staff supported input suppliers (Superior, Fresh Fruit Pr, Agroflorence, AgriBau and Ecotech) to organize a series of presentations for new raspberry farmers in Kosovo. These presentations were led by international speakers engaged by input suppliers without direct project support. The presentations covered various topics, and were led by experts including Serbia’s Milutin Jocić, representative of the Serbian company Superior Serbia. This is one of the companies in Serbia supplying quality planting material. A presentation for Fresh Fruit PR was carried out by an Italian expert and representatives of “Eden & F.” It covered organic fertilizer use. A presentation for Raspberry field day organized in Dyz, Podujevo Agroflorence was carried out by Italian experts: Prof. through input supplier Agribau and Mjedra e Dr. Giovanni Raise, Dr. Christian Olmo and Igor Kosoves Association Kocijancic, agronomist, all representatives of the Italian fertilizer company, Adriatica. Other local exporters participated sharing their production experience. A total of 1,070 new and existing raspberry farmers have now attended these presentations over the last 3 quarters, significantly extending the reach of input suppliers into targeted production areas, and ensuring a greater depth of knowledge sharing than ever before.
18 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT OBJECTIVE 2: INCREASE LINKAGES TO DOMESTIC, REGIONAL, AND INTERNATIONAL MARKETS
Activity #RS321: Support B2B meetings and Collection Center participation in fairs ACTIVITY PROGRESS B2B Meetings - The program, in collaboration with three different companies from Italy and Poland (RayTech and Macparma from Italy and Sorter from Poland) organized a presentation and a B2B meeting for raspberry collection centers in Pristina. Representatives from Italy’s RayTech presented the latest technology in sorting machines for the raspberry crop and Macparma presented state-of-the-art industry equipment for IQF deep freeze technology. In addition, Sorter from Poland presented the latest technology for fresh raspberry sorting. Both issues represent significant areas for improvement among Kosovo’s raspberry producers and processors. Participation was enthusiastic and aggregators greatly appreciated the presentations. In total, forty people participated. Fair participation – Fruit Logistica Fair, Berlin/Germany, Feb. 8-10, 2017 – The Program, through the National Raspberry Association ‘Mjedra e Kosoves’, organized a visit by the biggest raspberry collection centers in Kosovo (Eurofruti – Kosovo Raspberry brochure Mramor, BesianaG – Ferizaj, Hit Flores – Dragash, AgroPeti – Podujevo, distributed at Fruit Logistica AsPromet, Leposavic, ZZ Zubin Potok, and Agro Red Gold Recan) to the Fair Fruit Logistica Fair in Berlin, an international trade fair for fresh fruit. Over 70,000 trade visitors from 130 countries including Kosovo, attended this year’s fair. This exhibition highlights the products and services of importers and exporters, fruit and vegetable producers, wholesalers and retailers, packaging and handling specialists, transport and logistics specialist from all over the world. During these three intensive days, raspberry collection centers from Kosovo had a chance to see and meet representatives of the main global raspberry and processing companies. These include Mazzoni, Agronom Berries, BerryWorld, Planasa, and Plusberries. It was a good opportunity to compare the quality of the world’s leading raspberry fruits with the quality of Kosovo’s products and to analyze how Kosovo products compare and determine what it will take for them to compete in the world market. Tutto Food Fair, Milano/Italy May 8-11, 2017 The National Raspberry Association organized a visit to the Tutto Food Fair in Milano. This fair is one of the top food innovation events worldwide that brings food and technology together, from farm to fork. Through this visit, a raspberry collection center from Ferizaji—Agrium— signed a contract for 1300 metric tons of frozen In February 2017 the Program assisted Mjedra e Kosoves association to bring representatives of raspberries. Kosovo’s main raspberry collection centers to Fruit More than 100 meetings took place during the above- Logistica Fair in Berlin mentioned fairs. In addition, there continued to be a significant distribution of the printed raspberry brochure (“Raspberry Sector in Kosovo”). Of note is the now-increased awareness of Kosovo’s position as a raspberry origin of significance. The raspberry brochure appeared in the hands of many firms met at these fairs, confirming the value of this means of promotion.
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 19 OBJECTIVE 3: STRENGTHENING STRATEGIC PARTNERS
Activity #RS331: Strengthen raspberry national association ‘Mjedra e Kosoves’ ACTIVITY PROGRESS The program signed a grant with the national raspberry association ‘Mjedra e Kosoves’ during Q2 to support services to the raspberry sector in Kosovo. “Mjedra e Kosoves” received a total of €89,000 for activities such as training of trainers, training of farmers, B2Bs, participation in fairs, study tours, etc. The goal is to empower the association to improve coordination and promotion of trade and to further strategic interests of the raspberry sector. In addition, the Association was supported to This brochure on ‘Raspberry sector in Kosovo’ has been prepare and print a raspberry brochure that translated and printed in English, Italian, and Japanese promotes the sector in Kosovo. The brochure is now available in English, Italian, Japanese and German. Promotion of raspberries to export markets through ‘Mjedra e Kosoves’. The AGRO program through the National Raspberry Association, facilitated four meetings with the main raspberry collection centers to explore ways to improve raspberry promotion in export markets. It was concluded that there is no national- level promotion of raspberries in export markets, and that this must be encouraged. However, production is increasing, and exports are projected to reach at least 10,000 metric tons of frozen raspberries in the 2017 sales season. During one of the meetings held during Q1, Kosovo’s Ambassador to Japan, Leon Malazogu, was invited to explore the possibilities of promoting Kosovo raspberries in Japan. The ambassador was open to doing so, and requested promotional materials that he could distribute to businesses associations in Japan, suitably translated into Japanese. As a conclusion of the meeting, it was decided that the association should maximize exposure for the sector though Kosovo’s embassies abroad, with support from the MTI, MAFRD, and other donors. First mission of a regional STTA assignment Meeting of the raspberry collection centers with completed in Q2. A regional STTA from Albania, Kosovo’s Ambassador to Japan, Leon Malazogu Harallamb Paçe, a professor from the University of Agriculture in Tirana, visited Kosovo and conducted several field visits and meetings with some of the main actors in the raspberry sector in Kosovo. The main aim of this assignment was to perform an assessment of the presence of the bacterial disease Agrobacterium tumefaciens in raspberry fields in Kosovo. The primary purpose of this short-term technical assignment was to evaluate the current phytosanitary situation related to raspberry crown gall disease in Kosovo in order to provide the Program and the national raspberry association ‘Mjedra e Kosoves’ Farmers receiving instruction in managing raspberry with an initial road map to planning out future orchards infected with Crown Gall
20 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT interventions, and to program and implement an Integrated Pest Management program to best manage this disease, which targets raspberry plantings. The regional STTA provided an initial report on his first mission in Kosovo with main findings and recommendations for the future of the raspberry sector. Of note in this first report was the observation that rather than Agrobacterium tumefaciens, soil nematodes could actually present a more significant challenge to the growing sector. PLANNED FOR THE NEXT QUARTER - The second visit by the regional STTA with a focus on plant protection will be arranged during Q4 Activity #RS332: Financial management and fund leverage support ACTIVITY PROGRESS During Q1 and Q2 this activity was initiated and discussed with Recura. Eurofruti, Fresh Fruit and APC were contacted and the firms agreed to assess potential collaboration during Q3 and Q4. The program worked with Recura to prepare an information session for companies regarding how to obtain financing from IFC, EBRD and other institutions. During Q4, the program is planning to organize one information session to inform companies about various opportunities for financing. PLANNED FOR THE NEXT QUARTER - The program and Recura will organize a B2B with collection centers and donors. Activity #RS333: Facilitate raspberry growers in the Podujevo region with GLOBALGAP. ACTIVITY PROGRESS AGRO is working with the raspberry association from Podujevo, ‘Mjedra e Llapit,’ on GLOBALGAP implementation. This activity has engaged 12 young agronomists as interns through the AgroJobs Career Center to implement GLOBALGAP. During Q1, these young agronomists gathered 759 soil samples. During Q2, all 494 farmers received trainings in G.A.P. implementation. During Q3, the young agronomists gathered 546 water samples for physical and microbiological evaluation. The program is expected to certify more than 400 farmers with GLOBALGAP during Q4. These farmers had more than 400 hectares of raspberries under cultivation as of 2017 in the Podujevo region. The municipality of Podujevo continues to provide significant support to this ambitious certification activity. Additional detail is described under Activity #SS313. PLANNED FOR THE NEXT QUARTER - To complete certification of GLOBALGAP. in Q4. RESULTS THIS QUARTER
Number Short Name of the Indicator FY17 Q1 Actual FY17 Q2 Actual FY17 Q3 Actual R1.1 Trainings 167 743 160 R1.3 Tech HA 500 11 R1.6 Firms new Tech - 1 1 R2.1 Sales $2,915,432 $585,928 R2.4 Supply Contracts 32 74 6 R2.5 SPs contracting 2 R2.6 Sales from contracts $202,953 R2.7 SPs organizing B2B 1 1 1 R2.8 No. of people in B2B 36 43 10
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 21 1.1.5 SOUR CHERRIES
OBJECTIVE 1: IMPROVED FARM PRODUCTION AND FOOD PROCESSING
Activity #SC311: Provision of technical and financial assistance to establish new plantings ACTIVITY PROGRESS Enthusiasm for the sour cherry revitalization project in Gjilan, Viti, Kamenica, Kllokot and Ranillug municipalities grew throughout Q1. This enthusiasm helped in identifying opportunities to target the establishment of up to 200 hectares of sour cherry trees in the Anamorava region. In contrast, despite the interest of individual farmers and a sound history of cultivation of the crop, the municipality of Partes refused to participate in this project, either through co-financing or participating in study tours, as officials they consider the proposals to be impossible given the level of destruction to the industry during the war. AGRO supported Calabria ShPK, and all 5 municipalities listed above, in drafting a MoU between the municipalities and the company. This was signed as a prerequisite to project support and forms the basis of the grant activity outlined for this project. The general objective of the MoU is the revitalization of the commercial sour cherry industry in the respective municipalities of the Anamorava region through the re-establishment of commercial plantings. Responsibilities of Calabria as underlined in the MoU are as follows: – Ensure the provision of 500 young sour cherry trees per hectare (up to 100 hectares). The virus-free materials must be in full compliance with internationally acceptable plant quality norms. – Distribute the sour cherry trees to selected farmers who will plant the new orchards. – Direct farmers to conduct appropriate soil analysis to ensure that the soil pH is adequate for sour cherry crop requirements, before the planting material is distributed. – Ensure that all farmers have sufficient irrigation potential on their farms. – Provide technical assistance to the farmers, from land preparation, through production to harvest and post-harvest best practices. The responsibilities of the municipalities will be: – Through the local Departments of Agriculture, invest in drip-irrigation equipment (surface only) to farmers engaged in this project. Each farmer will receive an irrigation system according to the area they will plant with sour cherry saplings. All of the farmers signed production and marketing contracts with Calabria for the implementation of this project. The pace and timing of project implementation were agreed to during a series of meetings organized by Calabria with a positive response from the local agricultural directors. The call for applications for individual growers was published by Gjilan, Viti, Kamenica and Kllokot Municipalities with unique criteria for qualification. The minimum size of qualifying sites was 0.50 hectare and maximum size of 5 hectares. There was one application for 10 hectares in Kamenica, which was accepted by the selection team after consultation and no objections by directors of all four Municipalities supporting the project. The municipality of Ranillug, under pressure for its cost share, withdrew from the program. No. Municipalities No. of applications Total area 1 Gjilan 32 50.41 2 Viti 28 25.29 3 Kamenica 13 22.30 4 Kllokot 4 6.6 5 TOTAL 77 104.6 HA
22 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT The selection committees, composed of municipality staff, a Calabria agronomist and one AGRO staff member, visited all applicants and sites. Municipalities of Gjilan and Viti were also engaged in logistics while Kamenica faced a shortage of vehicles for field visits. At the end of the selection process, the total estimated area for plantation was about 102 hectares. Access to a water source and an all-season road as well as farmer potential to implement their financial obligations were estimated in addition to other agronomic preconditions such as site orientation, soil type and the availability of machinery. Results were distributed to each individual grower and to the Program. To support Calabria and AGRO, six young graduates received basic practical and theoretical trainings in sour cherry planting and cultivation, field mapping and plantation layouts. One of them has been engaged permanently by Calabria while three others received short-term internship engagements. The team of young agronomists went out to support growers in field layouts and to record the GPS coordinates of selected sites. By the end of the Q2 reporting period, 32,000 trees out of 50,000 had been imported by Calabria. Trees were organized in 5-tree bunches with the official international blue standards label issued by Hungarian authorities. Trees were picked up by growers from the delivery point at Calabria’s facilities, under supervision of Calabria’s agronomist. In addition to trees, growers received field layouts with proposed planting schematics. Everyone was advised on how to cut the root system prior to planting, and how to mix water, soil and manure and to prepare solutions for dipping trees prior to planting. Motivated growers picking up saplings ready to be permanently transplanted.
A team of young agronomists supporting growers and The same field mapped and ready for digging the holes in developing the field layout which the saplings will be planted.
Planting continued under the supervision of municipality staff, Calabria’s agronomist and AGRO interns. Municipalities had not yet procured the irrigation systems as their contribution; this was expected to be done in Q3. Therefore, irrigation was carried out by growers manually pending installation of a permanent irrigation supply in Q3.
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 23 In total, 55 hectares were planted by the end of the Q2 reporting period. A total of 110 growers, young graduates and municipal staff received training on site selection, field preparation and plantation establishment. Due to a problem at the nursery that resulted in an insufficient quantity of the desired varieties, 44,335 trees were finally imported and delivered out of the 50,000 planned. Sixty-five (65) growers benefited from this activity. Changes in the list of beneficiaries were frequent. Finally, by the end of Q3, 90 hectares were planted in the municipalities of Gjilan, Viti, Kamenica, Kllokot, and Junik. Six young graduates received practical and theoretical trainings during tree establishment, gaining valuable experience and professional support. A total of 600 trees were not planted by the 600 unplanted trees awaiting autumn planting conditions beneficiary in Kamenica due to adverse weather conditions. The grower was advised to keep these trees in a sandy trench with sufficient moisture and to transplant them in the autumn of 2017. During Q3, 100 people attended a field event in Gumnishte, Gjilan Municipality, organized jointly with Program strategic partners, the Hungarian Embassy, Sunny Hill and Calabria. Three Hungarian companies presented their experience in sour cherry tree propagation, variety selection and water retention. They also demonstrated tree pruning as well as organic water retention product application.
Young sour cherry tree pruning demonstrated by Application of a water retaining product in a small Hungarian expert trial conducted in a sour cherry orchard.
Establishment has been excellent and not a single tree was lost through the establishment period. However, Municipalities were initially very slow in delivering on their commitment to supply irrigation systems for growers and by Q3, none of the fields had installed irrigation systems. By the end of Q3, each municipality is close to finalization of delivery such that the installation of irrigation systems is expected to be completed in early Q4. Last season’s frost caused some damage to growing points but all trees had sufficient vigor to recover and push new buds from other growing points.
24 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT
Survived shoots (left); new growth damaged (center); new buds sprouting out from trees that have lost first growth as result of the frost An AGRO grantee, Agmia, has progressed with its grant implementation activities. Ten new hectares of plantation have been established to date in 2017. Machinery was supplied under their grant and irrigation scheme establishment was completed during Q3. A very high-technology sprayer and mulcher were tested in the field, nearly doubling the area covered during spraying compared to previous technologies utilized by the firm (see below photos and caption).
Sprayer and mulcher – very advanced technologies that will enable high-quality work and maximum consideration of plant and human health as well as environmental issues
PLANNED FOR THE NEXT QUARTER – Follow up on the implementation of field management technologies; – Organizing “Sour Cherry Walk” field day for stakeholders in Q4; and – Train and mentor young graduates engaged in Sour Cherry VC development
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 25 Activity #SC312: Strengthening Strategic Partners’ capacity to promote and cultivate sour cherry production ACTIVITY PROGRESS The Calabria Company, in Gjilan, with its 5,000 metric ton freezing and sour cherry processing capacity, has been selected as a strategic partner and is taking the leading role in re-establishing the sour cherry industry in Kosovo. This firm has been receiving support to develop the sector. Since the owners of the company have no prior experience in the “vertically integrated” production of the crop, they have required intensive support to enable them to take the lead. The Calabria company’s owner travelled to Hungary during Q1 along with the AGRO technical lead to identify potential suppliers of planting material and to agree on the supply dynamics. In addition to supply, Calabria arranged delivery to growers at a time suited to the spring planting in 2017. With local municipal partners, Calabria ensured that sites designated for planting met minimum requirements as agreed with municipal technical officials. The firm has received signed delivery receipts from farmers, countersigned by authorized municipal officials attesting to the delivery of trees to date. The Calabria agronomist has been receiving continuous AGRO technical support to ensure that he has all the required technical skills to take on these tasks. During Q2, the Calabria agronomist took the lead in arranging field trainings for all growers. Calabria management traveled to the U.S., where they presented to the Albanian-American business community details of the sour cherry marketing project and the opportunities that this project offers for Kosovo’s economic development. Tamas Gergely, economic relationships attaché at the Hungarian Embassy in Kosovo, supported the organizing of a study tour to Hungary during Q1, and continues to provide excellent support by liaising with Hungarian suppliers. Ongoing work during Q2 continued to put the firm in a leading position and the management now feels very strongly that that they will continue to push hard for continued expansion of the sour cherry value chain in Kosovo. Three young graduates have been selected to supervise and advise growers in the coming months enabling overall improved management and expansion of this crop. One hundred and forty-five (145) growers and professional staff of various agricultural departments, local experts and input dealers attended theoretical and practical trainings and lectures provided by Hungarian nursery staff and AGRO staff during Q3. The focus of the training was to advance and strengthen Growers and municipal staff attending initial training cultivation technologies after plantations were organized by Calabria established. The main interest of growers was in learning about plant nutrition to stimulate the growth of plants; weed and pest control; and irrigation. During the training Sunny Hill company also highlighted its newly introduced mechanical harvesting system. This system is designed to run over the tree lines but is anticipated to only be fully functional once the trees and the terrain have been established and shaped to suit the equipment. PLANNED FOR THE NEXT QUARTER – Follow up on the mechanical harvesting trials; and – Introduce pruning system suitable for the new mechanical harvester.
26 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT OBJECTIVE 2: INCREASE LINKAGES TO DOMESTIC, REGIONAL, AND INTERNATIONAL MARKETS
Activity # SC321: Support Strategic Partner in identifying new markets The harvesting season started during the last week of June in Q3. Damage from the late frost was notable and it is expected that yield reduction will be at least 50%. Fruit size and quality were however much better compared to the previous year as a result of fewer berries per tree. 70% of fruits reached 17mm in diameter, which is not typical for the oblacinska variety as it is known for its small fruit size. Measurements with a refractometer revealed that the sugar content, 10 days before harvest, was 14o Brix. These parameters show a high-quality sour cherry, which will compensate for some losses caused by frost. Early indications were that the price could be as high as €0.45/kilogram this season due to the regional undersupply caused by the general late freeze across all sour-cherry production areas. This, combined with superior fruit quality, means that the season could generate revenues as high as last year despite the yield losses experienced. PLANNED FOR THE NEXT QUARTER - Follow-up on sales and encourage companies to sign long-term contracts directly with European buyers.
OBJECTIVE 3: STRENGTHENING STRATEGIC PARTNERS
Activity #SC331: Support SPs in conducting technical exchanges/study tour ACTIVITY PROGRESS This activity was concluded in Q2, with six people (5 municipality Agricultural Department Directors and one AGRO staff member) participating in a study tour to Hungary organized by AGRO. The primary purpose of the trip was to learn from the experiences of different Hungarian sour cherry actors. The program for the trip was designed and implemented in collaboration with the Hungarian Embassy in Pristina, and the Hungarian National Trade house represented by Arber Kekezi, the manager for all Balkan countries. Hungary is one of the world’s leading countries in sour cherry production, processing and marketing. The team from Kosovo had the opportunity to learn about cultivation and harvesting practices; young tree propagation and certification schemes applicable in Hungary; marketing of sour cherry fruits; the machinery services and operations in the sour cherry sector. In addition, the Arundo crop was presented to the team as a future crop for green energy production. The Hungarian hosts for the tour showed a readiness to establish business relationships with Kosovo-based partners. The following are the main observations and conclusions of the visit: 1. The nursery sector in Hungary applies EU regulations for planting material certification. Trees grown at the nurseries that the project visited are virus-free; 2. Mechanical harvesters and very advanced sprayers are manufactured in Hungary; 3. Average yields of sour cherry in Hungary varies from 11 to 30 tons/hectare. Trees are all grafted on vegetative rootstock and planting distances are determined by harvesting technologies; 4. Production is dedicated to the processing and fresh markets; and 5. Local varieties dominate the sector. The oblacinska is a marginal variety in Hungary.
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 27 Two different mechanical sour cherry harvesters were demonstrated to the team
An advanced sprayer presented to the team ensures effective plant protection; efficient consideration of human health and environmental issues; and accurate programing of the pesticide dosage.
RESULTS THIS QUARTER
Number Short Name of the Indicator FY17 Q1 Actual FY17 Q2 Actual FY17 Q3 Actual R1.1 Trainings 98 116 92 R1.3 Tech HA 17 30 - R2.1 Sales $85,952 $155,460 R2.4 Supply Contracts 54 R2.5 SP’s Issuing Contracts 1
1.1.6 BLUEBERRY
OBJECTIVE 1: IMPROVED FARM PRODUCTION AND FOOD PROCESSING
Activity #BB311: Provision of TA for further expansion of blueberry production ACTIVITY PROGRESS During autumn 2016 and spring 2017, an additional 20 hectares was planted with blueberries. The program engaged an international STTA, Peter van Dijk, from the Netherlands for a total of 16 days to monitor blueberry orchards during the vegetative phase. His first and second visits this season to Kosovo were in March and in May, during Q3, when he helped growers improve their growing methods to increase crop vigor and to manage the crop in ways that improve fruit quality. Also under this activity, and in collaboration with Peja and other municipalities from the region, the program jointly organized a targeted blueberry investors’ conference. The conference was held in Peja in Q1 2016. The blueberry conference brought together 98 local and international participants. Organized by the Municipality
28 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT of Peja in collaboration with USAID’s AGRO program and its strategic partner in the blueberry sector, Boost Berries (Vitomirica) and Total Berry Services, the conference was the first of its kind to be held in Peja. The objective of the conference was to unite existing and potential blueberry farmers from across the region of Dukagjini, creating a unique occasion for networking opportunities and for learning from the vast experience of an international specialist who lectured on the many aspects of the blueberry value chain. This conference followed the successful (and first-ever in Kosovo) blueberry conference held by the AGRO program in Pristina in April 2016. As a direct result of that conference, 20 new International STTA Peter Van Dijk in hectares of blueberries entered into cultivation. This translates into Junik €1.5 million in private investment in the agriculture sector in Kosovo. During the conference, three presenters described the results of studies on the crop, new market opportunities and business plans for blueberries. The first presenter was Besnik Lila, who presented his first experiences with blueberries in Kosovo; the second presenter was Max Kryeziu of Prizren, co-owner of the Masr Fruit (http://www.masrfruit.com/) company in the Netherlands, which has 50 hectares of blueberries planted in Morocco. The last presentation was by Peter Van Dijk, a Dutch specialist who presented an outline of the blueberry industry and its production practices, highlighting the benefits and potential pitfalls for those planning to plant this crop. After the conference, representatives of a number of interested companies networked with the Dutch specialist regarding their planned planting of blueberries. During Q2, the Program, in collaboration with Masr Fruit, the international company based in the Netherlands, organized a B2B event with blueberry farmers. Masr Fruit is interested in buying all The conference’s logo blueberry production in Kosovo. Based on the results of the B2B, farmers expressed an interested in collaborating with the firm. PLANNED FOR THE NEXT QUARTER ‒ Arrange third and final seasonal visit from the International STTA, Peter Van Dijk.
OBJECTIVE 2: INCREASE LINKAGES TO DOMESTIC, REGIONAL, AND INTERNATIONAL MARKETS
Activity #BB321: Facilitate Food Safety Standards introduction for blueberry growers ACTIVITY PROGRESS The Program helped a blueberry orchard in Vitomirica, Peja, owned by ‘BoostBerry’ (Program SP) to gain GLOBALGAP food safety certification. This was concluded during Q3 with the final delivery of certificates expected during Q4. This standard will serve as a tool to improve the company’s overall competitiveness, to achieve new sales and to improve margins on international sales. BoostBerry is the first blueberry company to be GLOBALGAP certified in Kosovo. In addition, the Program organized GLOBALGAP training for 15 blueberry farmers interested in implementing certification in 2018. Blueberry production for the next season is expected to reach 100 metric tons. Since the entire crop will be exported fresh to EU countries, obtaining this standard is critical.
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 29 Activity #BB322: Participation in international blueberry conference ACTIVITY PROGRESS International Blueberry Conference in Warsaw, Poland during Q2 (March 2-3, 2017). Blueberry lead farmers participated in the International Blueberry Conference held in Warsaw, Poland. The conference was organized by the Jagodnik (http://jagodnik.pl/) association in Poland. A selected group of international specialists gave 15 lectures covering many aspects of blueberry growing. It was attended by nearly 900 people. In addition to the Polish hosts, the conference drew representatives from 18 countries, including Kosovo. A total of 67 companies exhibited during the conference and during the open-field day. The conference has been recognized as the premier event for the global blueberry industry. Among topics discussed were agronomic practices, establishment of plantations and fertilization of blueberries. Specialists from Poland and other countries shared their experiences and knowledge about best Blueberry farmers during the International practices in blueberries. The second day consisted of a Blueberry Conference in Warsaw, Poland trip to a large commercial blueberry plantation, with pruning technique demonstrations and equipment exhibitions. During the conference, AGRO staff and farmers met numerous blueberry specialists and representatives from blueberry operations as well as input suppliers.
OBJECTIVE 3: STRENGTHENING STRATEGIC PARTNERS
Activity #BB331: Support blueberry promotional days ACTIVITY PROGRESS The Program helped stage a promotional event highlighting Kosovo’s freshly picked blueberries and strawberries. The event highlighted the blueberry and strawberry fruits harvested by approximately a dozen successful growers/farmers who presented their hand-picked product to the Blueberry promotion days in Pristina general public in downtown Pristina. There was also a visit from the Deputy Chief of Mission Colleen Hyland of the U.S. Embassy in Pristina. She was joined by James Hope, USAID Kosovo Mission Director, who met with farmers in downtown Pristina. The three-day promotional event was held June 20-22. Activity #BB332: Leverage funds and provision of TA for the construction of a blueberry pack house ACTIVITY PROGRESS A few blueberry farmers, along with AGRO’s blueberry SPs, are finalizing plans for a blueberry pack house. The program facilitated meetings between farmers and donors (IFC) to discuss this eventuality. In addition, the program, through grants, supported Sante Fruit (blueberry orchard) with a small pack house. The firm is currently in the process of assembling the pack house unit.
30 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT RESULTS THIS QUARTER
Number Short Name of the Indicator FY17Q1 Actual FY17 Q2 Actual FY17 Q3 Actual R1.1 Trainings 98 20 25 R1.3 Tech HA 17 14 2 R2.1 Sales $1,020 $39,066 R2.8 People in B2B 27 5
1.2 VEGETABLE VALUE CHAIN
1.2.1 PEPPERS AND TOMATOES
OBJECTIVE 1: IMPROVED FARM PRODUCTION AND FOOD PROCESSING
Activity PT311: Promotion of improved production technologies and diversification of varieties ACTIVITY PROGRESS During Q1, AGRO organized a workshop with the main actors in the pepper value chain to identify ways to generate further improvement in pepper productivity in response to increased demand for export-quality peppers. Two processors, three collection centers and six larger commercial farmers participated. The collection center “Albini” from Podujeva presented the results of its application of a ‘package’ of technologies in collaboration with AGRO. These include plug seedlings, drip irrigation, plastic mulch and the use of soluble fertilizers. Results indicate a doubling of yields. However, for exports to supermarket chains, the implementation of GlobalGAP is needed. Across Anadrini, the region with the greatest pepper production, only a small number of farmers apply the whole package of production practices. Therefore, it was concluded that only the implementation of the whole package of practices will maximize the productivity of peppers; the application of individual technologies will result only in smaller, incremental improvements. The collection center “AgroCelina” will take on the responsibility of implementing the package of technologies with three lead farmers in each of the larger villages of the Anadrini and Peja regions. During Q1, AGRO supported the organization of a farmers’ meeting specifically to promote plant protection techniques for the pepper crop in the Anadrini region. This was facilitated by an AGRO staff member who presented the new production technologies that should be implemented in order to avoid problems with disease, specifically the group of fungal diseases known as anthracnose. The conference was organized by the Municipality of Rahovec in partnership with MAFRD. AGRO in collaboration with its strategic partner, the “Agrocelina” collection center, organized a promotional event in Q2 demonstrating good agricultural practices in pepper seedling production. The event took place at the farm of pepper producer Ismajl Duraku in the village of Krusha e Madhe, Rahovec municipality. The purpose of the event was to demonstrate pepper seedling production in trays and substrate as key technologies to improve the quality of seedlings and improve pepper production yields. A total of 45 stakeholders participated in the event, including farmers, input suppliers, agricultural faculty, Gjakova and Rahovec municipal representatives as well as the Bujku TV show. The new technologies for pepper seedling production were demonstrated by AGRO technical staff and Professor Mufail Salihu. The participants were very active, giving the impression that there may be movement toward the adoption of improved production systems targeting these important areas.
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 31
Demonstrating good agricultural practices regarding pepper seedling production. AGRO, jointly with department of agriculture of Municipality of Rahovec, MAFRD and AVUK, organized a meeting in Rahovec municipality to identify ways to improve pepper production through increased yields, and enhanced quality. The meeting was moderated by Fehim Fetoshi, the director of the agricultural department in Rahovec. The participants were organized into working groups to design and monitor field activities and to evaluate the impact of applied pepper production technologies. To support the implementation of new production technologies for pepper, AGRO has awarded a grant to its strategic partner “Agrocelina.” The grant will be implemented over the next two years. During Q3, the “Agrocelina” collection center promoted production of “plugged” pepper seedlings to 128 farmers targeting pepper production for the processor “Ananas Impex” from Podujeva municipality. Although the early spring temperatures were lower than expected in this areas, seedlings have developed quite well. Farmers were very satisfied with seedling quality and noted the superior quality of those seedlings produced using modules and substrate compared to traditional methods. Besides the collaboration with “Ananas Impex,” “AgroCelina,” as part of a grant, has supported commercial pepper farmers to plant 9 hectares using new production technologies. Five hectares were planted with four new hybrids (Toldi, Fortesa, Biskra and Lubov dlan) and in addition, three new varieties from Turkey were planted as a test. Four hectares were planted with hybrids supplied by the processor “FiliposFoods,” from Podujeva. Besides seedlings, the CC has supplied farmers with black plastic mulch and drip irrigation as well as provided to the farmers mechanization services. The s eedlings were transplanted using two new planting machines. One combines the laying of drip irrigation and black plastic mulch while the second machine transplants the seedlings. These new technologies will enable farmers to increase pepper yields and quality, while mechanization will enable pepper farmers to efficiently expand the area under production in open fields. “AgroCelina” has planted all new pepper varieties and applied all new technologies in a 200 m2 greenhouse as a ‘farmer field school’ to be used for training of farmers. So far, the greenhouse has been visited by many farmers who were satisfied to see in practice the performance of new varieties of peppers as well as new technologies. ‘AgroCelina’ also organized a field day in the village Krusha e Madhe, Rahovec Municipality, during Q3, promoting the machine for laying plastic mulch and drip irrigation. The machine was purchased as part of a USAID grant awarded for the promotion of new production technologies for peppers. Laying plastic mulch and drip irrigation was demonstrated to at least 25 participants including the directors of the agriculture departments of Gjakova and Rahovec municipalities. The directors promised that once pilot farmers demonstrate their willingness to adopt the usage of the systems, they will support larger farmers and collection centers to purchase additional equipment in support of open field modernization. PLANNED FOR THE NEXT QUARTER - Monitoring of activities with strategic partners during the harvesting process Activity # PT312: Improve the level of technical advisory services provided to farmers
32 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT ACTIVITY PROGRESS A training session for seedling production was undertaken for the agronomists hired by AGRO’s strategic partners. At the training, agronomists from the processors and collection centers, Ananas Impex, Albini, ABI&ELI19, Etlinger, Fitimi, Euro Tac and Eurofood, participated. New technologies and inputs for plugged seedling were presented. In addition, experiences of neighboring countries on the application of new technologies were presented. During the Q3, AGRO technical staff were in direct contact with eight agronomists hired by the strategic partners through field visits and via e- mail. The most intensive contacts were during the process of transplanting as well as the critical, early fertilization of peppers. PLANNED FOR THE NEXT QUARTER - A training session will be provided in the next quarter to reinforce the benefits of promoted systems. Activity # PT313: Support innovation of processing technology ACTIVITY PROGRESS To facilitate the application of new processing technologies by smaller- scale fruit and vegetable processors and increase production capacities and product quality, AGRO has awarded a grant to the processor “Jege” in Prizren. The grant will co-finance the implementation of new technologies for processing peppers and gherkins using barrels, which gives them, as a smaller-scale processor, more flexibility in the timing of processing. Besides ‘Jege,’ the processor “R Company” from Gjakova has submitted a full application for improving its cooling equipment, cold storage, and drying chamber used to process vegetables. PLANNED FOR THE NEXT QUARTER - Monitoring the implementation of the above-mentioned grant.
OBJECTIVE 2: INCREASED LINKAGES TO DOMESTIC, REGIONAL, AND INTERNATIONAL MARKETS
Activity PT321: Further strengthening of contract agreements between actors in the value chain ACTIVITY PROGRESS
Building upon the successful collaboration of the last two years, the From top to bottom: pepper processor “Ananas Impex” from Podujeva signed a supply Pepper plugs for contract with collection center “Agrocelina” for the delivery season of transplanting; 2017. Fifty (50) hectares of the ‘Besiana’ type of red pepper were planted; laying plastic mulching and it is forecast that this will supply 900 metric tons of peppers, valued at new variety pepper plants in $250,000. The processor has continued to supply seeds and other inputs field. to produce seedlings as well as an agronomist who will provide training sessions and on-farm advice on production technologies and plant protection to all farmers. The CC identified 128 farmers and signed contracts with them. It will be responsible for the collection, grading and
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 33 transportation of peppers. This is the third year that this processor is signing contacts with the CC, highlighting a systemic change in the value-chain relationships. ‘Ananas Impex’ has been very satisfied with its collaboration with the CC, and in 2016, 70% of its raw material was supplied domestically. The raw material is of much better quality compared to imported product and is more cost effective. In addition, CC “Agrocelina” signed contracts with 19 pepper farmers and six tomato farmers to supply the processor “ABI & Elif 19” from Prizren with raw material. CC “EuroTac” from Mamusha has signed contracts with 22 tomato producers for supplying industrial tomatoes as raw material to the “ABI & Elif 19”.
Signing supply contracts between “Ananas Impex” and “Agrocelina”
PLANNED FOR THE NEXT QUARTER - Monitoring of the implementation of contracts between parties through to harvest Activity PT322: Further promotion of sales of fresh vegetables in domestic and exports markets ACTIVITY PROGRESS This activity will be implemented during Q4
OBJECTIVE 3: STRENGTHENING STRATEGIC PARTNERS
Activity PT331: Support for PePeKo export promotion activities - participation in fairs ACTIVITY PROGRESS During Q1, seven companies exhibited their products at the world’s largest food fair, SIAL, in Paris, Oct. 16- 20, 2016. The companies “MOAE-Frutomania” from Gjilan, “ABI&ELIF19” from Prizren, “Sole Kosova/Koral” from Fushe Kosova, “FungoFF” from Kamenica, “AMO” from Klina, “Bibita” from Peja and “Frutex” from Suhareka jointly exhibited their products, under the flag of Kosovo, and through the leadership of KIESA of MTI and the association of the fruit and vegetable processors “PePeKo,” along with the support of the AGRO and the Swiss-financed project PPSE. The companies gathered 700 useful market contacts and requests from possible buyers asking for written offers to be sent. The companies expect to develop business relationships with at least 100 of these firms. The companies visited stands of other companies, gathering market intelligence and studying trends in the market. The Kosovo stand was visited by the Minister of MTI, Hikmete Bajrami, and the Minister of the MAFRD, Memli Krasniqi, and the Kosovo Ambassador to France, Qendrim Gashi. The ministers promised that they will present to a meeting of the Government of Kosovo the need to increase funding to support the promotion of Kosovo products in export markets. The stand also was visited by Ramiz Kelmendi, the president of Elkos Group, the largest supermarket chain in Kosovo. After a month, PePeKo again in collaboration with KIESA of the MTI and with support from AGRO and the Swiss financed project PPSE, organized an exhibition of Kosovo food products at the Slow Food Market
34 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT fair in Zurich, Switzerland (Nov. 18-20, 2016). At Kosovo’s stand, eight Kosovo companies exhibited their products. The firms were: “MOAE-Frutomania” from Gjilan, “ABI&ELIF19” “Albatros wine” and “JEGE” from Prizren, “FungoFF” from Kamenica, “Agroproduct” from Istog, “Hitflores” from Dragash and “Grate e Krushes” from Rahovec.
Kosovo’s agribusinesses participate in Slow Food Market fair in Switzerland The companies made contact with more than 300 possible buyers, who have requested written offers to be sent. The companies estimate that at least 35 contacts have a serious interest in Kosovo products. The organization of both exhibitions, SIAL and Slow Food Market, was satisfactory and all participants have agreed to participate in the fairs again. To strengthen the industry, AGRO awarded a grant in Q2, to support the establishment of PePeKo’s office and to support activities targeting export promotion through the organization of visits to international fairs (e.g. Anuga, Germany, SIAL, France), sales missions to EU countries and other marketing activities. The association has established the office jointly with two other associations. As result of participation at the “SLOW FOOD MARKET” fair in Zurich, Switzerland, in October 2017, the processor “Jege” from Prizren made its first export to Switzerland of processed vegetables. Two trucks of processed peppers and gherkins were exported to a retailer that “Jege” met during the fair. This consignment of products was also a test for both parties to see if they might find want to expand their collaboration in the future. The processor “Jege” has sent a letter of appreciation to the AGRO project. PLANNED FOR THE NEXT QUARTER - Follow up and support exporters RESULTS THIS QUARTER
Number Short Name of the Indicator FY17 Q1 Actual FY17 Q2 Actual FY17 Q3 Actual R1.1 People trained 13 11 R1.3 New Tech HA 32 R1.6 Firms new Tech - 1 R2.1 Sales $618,215 $961,220 $780,789 R2.4 Supply Contracts 168 R2.5 SP’s Supply Contracts 1 R2.6 Sales from contracts - $586,803 $366,949
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 35 1.2.2 GHERKINS AND CUCUMBERS
OBJECTIVE 1: IMPROVED FARM PRODUCTION AND FOOD PROCESSING
Activity #GC311: Strengthen production techniques and advice to farmers ACTIVITY PROGRESS Both AGRO SP’s, the Eurotac and Shalaprodukt collection centers, as well as MTD (Mamusha Farmers Association) succeeded in supporting growers to produce an excellent crop this year. During Q2 and Q3, farmers received proper advice on cultivation and crop protection from the agronomist hired by Eurotac as well as from AGRO specialists. During Q1, prior to seedling cultivation, 30 farmers from Mamusha attended trainings provided by AGRO specialists. These experts also advised Eurotac, Shalaprodukt and MTD farmer’s association members on strengthening their production advisory services. The number of trained Eurotac CC receiving, grading and delivering gherkins to both processors and fresh markets. farmers increased to 53 during Q3. AGRO continued to mentor all SP’s in improving their services to growers to guarantee better production outcomes. As a part of the promotion of new gherkin varieties and the expansion of production areas, AGRO delivered new gherkin variety “Dirigent F1” seed, as well as trellis netting and drip irrigation systems to five woman farmers from the BAJA woman farmers association, in the village of Bajince (Kacanik Municipality). This is the first experience with this production system in this part of Kosovo. Additionally, two woman farmers were similarly supported with a new variety of gherkin seed; one in Krusha e Vogel and the other in Baja e Malisheves. During Q3, the program finalized support to five woman farmers with a total of 1.5 hectares of gherkins under cultivation.
AGRO supported women farmers with a focus on both open field and greenhouse production systems PLANNED FOR THE NEXT QUARTER - Continue to collaborate with collection centers to promote and apply new techniques and agronomist advice in the field. - Collaborate with the BAJA woman farmer’s association to finalize the further promotion of cultivation of gherkins in open-field trellised systems and post-harvest handling.
36 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT Activity #GC312: Support to emerging small-scale processors ACTIVITY PROGRESS The activity was completed during Q3 by grant delivery to Jege in Prizren, a small vegetable processing company that started in 2015 with 160 metric tons of peppers and gherkins for processing. This firm intends to triple production in 2016 with 430 metric tons of processed vegetables. The company applied for a grant to support, on a cost-share basis, its investment to increase its processing capacity. Acquisition of the equipment is in its final phase but is due for completion early in Q4. Another grant is in process for processing company “Rudi,” in Gjakova. That grant is expected to be concluded during Q4. PLANNED FOR THE NEXT QUARTER ‒ Follow up on the goal shared by Jege and Rudi of increasing the supply of gherkin and other processed products for the 2017 season.
OBJECTIVE 2: INCREASE LINKAGES TO DOMESTIC, REGIONAL, AND INTERNATIONAL MARKETS
Activity #GC321: Facilitation of export marketing and sales linkages ACTIVITY PROGRESS During Q1, in collaboration with the USAID Regional Economic Growth Project (REG) in Macedonia, AGRO recommended Eurotac and Shalaproduct to participate in a B2B meeting in Skopje with German retail hypermarket chain purchasing managers. Landgard (www.landgard.de), OGV (http://www.oga- bruchsal.de) and Edeka Group, the largest German supermarket chain, participated as potential buyers of fresh fruits and vegetables from Balkan countries. Both collection centres are in contact with these companies and have discussed opportunities to enter export contracts for the delivery of fresh fruit and vegetables to the German market. Besides these contacts, Eurotac was in negotiations (through a family member in Germany) with another German company interested in Kosovo-grown gherkins; talks had not concluded as of the end of Q3. Meanwhile, the Ask Foods pack house-processing company finalized negotiations with one regional import company for export of 300 metric tons of fresh gherkins during Q3. This export did not materialize due to a lack of product and delayed confirmation by Ask foods. Exports will continue during Q4. PLANNED FOR THE NEXT QUARTER - Follow up on supply confirmation from German companies interested in importing vegetables from Kosovo. - Follow up on regional interest in increasing imports of gherkins from Kosovo. Activity #GC322: Facilitate contracting with farmers ACTIVITY PROGRESS Work is in progress to conclude the contracted gherkin supply by Eurotac CC, delivering to the following local processing companies: Ask Foods, ABI, ETC, Mix Product, Koral, Euro-food, JEGE, Rudi, as well as to various hypermarket chains. The planned 100 contracts for gherkins were partially completed by the end of Q3. In total 48 signed contracts by Eurotac client farmers indicates that 3,000 metric tons of gherkins for fresh markets and processing will finally be supplied. Shalaprodukt CC signed 10 supply contracts for the early season production period. In addition to the commercial contracts for supply from local processors, Eurotac is continuing collaboration with Ask Foods on the export of fresh gherkins to the region. Support to supply contracting is going well overall; to date 10 of 32 SP’s on the AGRO list are totally self- sufficient in contract formulation and execution. The AGRO program is continuing to collaborate and
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 37 support negotiations to establish supply contracts within all AGRO value chains. During Q2 and Q3, the total number of supply contracts reached 741 (surpassing the target of 600 planned for 2017). These include raspberry, 113; peppers, 147; apples, 69; gherkins, 49; tomatoes, 29; pumpkin, 49; sour cherry, 54; MAP, 216; strawberries, 8; and table grapes, 7. Facilitation and advice on contracting continues. PLANNED FOR THE NEXT QUARTER - Follow up on fulfillment of contracted delivery supply and possible increased demand by the Ask Foods pack house or any other export offer to EU. This tonnage is planned to be secured from Mamusha growers through existing collection centers, mostly through Eurotac.
OBJECTIVE 3: STRENGTHENING STRATEGIC PARTNERS
Activity #GC331: Capacity building on financial management for one collection center ACTIVITY PROGRESS To date, this activity has seen four visits and meetings between Recura and Eurotac to discuss the SP’s needs for financial management advice and support. The activity on financial advice delivery by Recura to Eurotac will be finalized during Q4 when gherkin delivery by farmers to the Eurotac collection center peaks and products are delivered to processors and other markets. This support will improve overall management of the center and will improve handling of VAT issues. PLANNED FOR THE NEXT QUARTER - No activity planned for this activity
Activity #GC332: Leverage funds for infrastructure improvements ACTIVITY PROGRESS During Q3, the Program advised Eurotac and other CCs to meet with potential donors. Meanwhile, Recura is helping them to identify their financial constraints and prepare themselves to apply for financial support from EU, EBRD, IFC and other donors. Meetings are planned, in Q4, between potential financing institutions and members of PePeKo to discuss conditions offered to SPs. PLANNED FOR THE NEXT QUARTER - Collaborate with PePeKo to organize a round table with fnancial institutions on identifying opportunities to leverage external funds for AGRO SPs.
Activity #GC333: Study tours for exploring markets in the region – Vojvodina, Serbia ACTIVITY PROGRESS AGRO staff have prepared a SoW and are identifying partners in Vojvodina, Serbia that will support the implementation of this activity. This activity was approved by USAID and will be organized by PePeKo at the beginning of Q4 due to production season in Kosovo and activities of companies during this period. PLANNED FOR THE NEXT QUARTER - Collaborate on follow up with PePeKo and participants on the results of a study tour to Vojvodina, Serbia.
38 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT RESULTS THIS QUARTER
Number Short Name of the Indicator FY17Q1 Actual FY17Q2 Actual FY17Q3 Actual R1.1 Trainings 30 23 R2.1 Sales $283,851 $338,962 $805,262 R2.4 Supply contracts 3 54 R2.5 SP’s issuing contracts 1 R 2.6 Sales from contracts $283,851 $249,237 $415,090
1.2.3 LETTUCE
OBJECTIVE 1: IMPROVED FARM PRODUCTION AND FOOD PROCESSING
Activity #LT311: Increase lettuce production area using new growing technology To maximize access to market opportunities and produce lettuce as much as possible year-round in Kosovo, AGRO has continued to work with five Strategic Partners: AgroSerra, Moni, Freskimi, Agro Fresh and Hibridi. During Q1, 158,300 lettuce heads and 3,038 kilograms of packed lettuce were produced and sold, with a value of €51,727. Winter production continued to utilize fleece covers introduced by the project over the past 2 seasons. In order to increase the supply to supermarkets, Agro Serra contracted five outgrowers located in the Mitrovica region. Agro Serra organized a training on the application of out-of-season growing technologies to eight participants. The growers were supplied with lettuce seedlings by Agro Serra. By the end of December, those seedlings had generated 30,000 lettuce heads packed and readied for sale. Lettuce production by five SP’s continued during Q2 despite extreme weather conditions during January and February. The growing period was extended due to weather conditions but all transplanted lettuce at the five SPs’ sites survived well because of the application of fleece promoted by AGRO. During Q2, 199,000 lettuce heads and 3,500 kilograms of packed lettuce were produced and sold, for a value of €63,750.
Transplanted lettuce covered with fleece at the Agro Serra greenhouse in November 2016 AGRO encouraged other lettuce growers to implement year-round production and a field day was organized by SP Moni and Freskimi in Qyshk, Peja municipality during Q2. A total of 48 lettuce stakeholders (growers, input suppliers, students, municipality representatives) participated. The SPs presented their off-season growing experience and the benefits of fleece application during the winter season.
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 39
Transplanted lettuce in an open field and harvested lettuce from the Agroserra farm in Shipol, Mitrovica The production of lettuce in open fields continued during the Q3 reporting period due to the good weather conditions prevalent into March. In total, 183,600 lettuce heads of different types and metric tons of bagged lettuce were produced and sold at a value of €57,900 by five growers identified as SPs. The SPs grew different types of lettuce with the majority being of the Batavia type. The SP Agro Serra was more diversified on lettuce type because of market demand for packed lettuce in plastic bags in its market area (Pristina). Promotion of new types and lettuce varieties took place this season without project intervention as a result of the good collaboration relationships between input suppliers and lettuce growers.
Lettuce field day organized by SP’s Moni and Freskimi in Qyshk, Peja municipality. PLANNED FOR THE NEXT QUARTER ‒ Facilitate SPs to identify new outgrowers and to increase their production capacities by implementing new growing technologies and good agricultural practices, targeting increased winter production area. ‒ Facilitate linkages between SPs and markets to formalize their collaboration.
40 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT OBJECTIVE 2: INCREASE LINKAGES TO DOMESTIC, REGIONAL, AND INTERNATIONAL MARKETS
Activity #LT321: Facilitate contracting sales and explore regional and EU markets 1ART from Peja was considered for the establishment of a large cut-salad packing line in the Peja area with significant demand for export into Western Europe. It was expected that the facility would start operating at the beginning of FY17 but, to date, the business is not yet ready to initiate activities. AGRO will continue to follow the activities related to establishing the new line at 1ART and then start the implementation of the designed activity. During Q2, two meetings were organized with the owner of 1ART in order to update our information regarding the new lettuce line. The owner of 1ART was optimistic that the processing line would be completed by the end of June. While this was not the case, the owner of the firm remains optimistic. PLANNED FOR THE NEXT QUARTER - Continue monitoring progress at 1ART toward establishing a large cut-salad packing line.
OBJECTIVE 3: STRENGTHENING STRATEGIC PARTNERS
Activity #LT331: Strengthen local Strategic Partners to improve financial management N.T.P Moni had expressed interest in receiving training from Recura on improving financial management. The activity started in Q2 with a meeting with Moni to identify needs and to design a SOW directing the intervention. The implementation of the activity is ongoing and will continue in Q4 based on Recura’s agenda. Activity #LT332: Assessment of greenhouse strategic partners To understand the current situation better and to design the development of a more profitable and competitive strategy for this sector, an assessment of the current greenhouse situation was conducted by Astrit Balliu, a greenhouse specialist from Albania. The initial assessment was concluded in January 2017, during Balliu’s first mission to Kosovo. Two other missions were conducted in February and March 2017. A final report was submitted to AGRO, which identified challenges, concerns and proposed solutions and interventions regarding the Kosovo greenhouse sector. The report was shared with MAFRD and other stakeholders early in Q3, to promote better understanding of the problems in the sector. Recommendations and proposed solutions will be used by AGRO and other SPs to design activities and strategies for successful development of the greenhouse sector in Kosovo. The approach used by the consultant was interesting for managers at MAFRD who are responsible for targeting the significant grant resources to value chains with promise. RESULTS THIS QUARTER
Number Short Name of the Indicator FY17Q1 Actual FY17 Q2 Actual FY17Q3 Actual R1.1 Trainings 10 - R2.1 Sales $55,348 $66,051 $66,527 R2.4 Supply contracts 5 -
1.2.4 ASPARAGUS
OBJECTIVE 1: IMPROVED FARM PRODUCTION AND FOOD PROCESSING
Activity #AS311: Increasing asparagus area by 25 hectares Several meetings have taken place with officials in the Municipality of Mitrovica over the previous 2 quarters. The director of the local agriculture department had indicated that the municipality will make a final decision
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 41 on its willingness to support farmers entering this value chain early in January. AGRO’s asparagus SP, Kasimi, was ready to collaborate as this intervention has heightened farmer interest. However, it is yet to be seen if the municipality will, in fact, decide to make the required investment. The project had prepared the procurement documentation necessary for the purchase of seeds and trays, should this partnership materialize. Further meetings with the director of the local agriculture department took place in February and March, 2017; still, no further decisions have been taken. The director of the local agriculture department had promised that a final decision will be taken by the end of May 2017. Based on the meetings that took place with existing growers and interested new growers, it seems that the asparagus value chain still has a good reputation with growers. However, the municipality is clearly not interested at this time in working with the project to establish new areas under asparagus. AGRO will continue searching for potential investors interested in increasing asparagus area. Regarding those existing asparagus plots, several visits to growers were conducted by AGRO staff. The growers have gained experience in managing the crop with the issue of effective weed control still a priority. Several growers have cultivated between the rows to manage weed control. Grower Shadije Asllani of Gjilan cultivated her area of 1.45 hectares using a motorized cultivator. The harvesting season ended in mid-June, with post-harvest field activities such as weed control, fertilization, irrigation and monitoring for pest and diseases of asparagus ongoing. PLANNED FOR THE NEXT QUARTER - The project will continue to support SP Kasimi in Vushtri municipality and the Mitrovica municipality in promoting the implementation of 25 new hectares of asparagus. This will involve the identification of potential growers and training selected farmers on seedling production, land preparation, transplanting and management of the transplanted area. The focus will change during Q4 with an emphasis on the Vushtri municipality. Activity #AS312: Training on food quality and safety standards AGRO staff responsible for quality and safety standards organized a training on implementing food safety standards among blueberry growers. The training benefitted two owners of the asparagus CC as well, namely Musli Kosumi and Qemajl Vuqiterna. The training was basic and useful to understand criteria and implementation of appropriate food-safety standards. Should collection centers enter the export market they will need to apply similar food safety standards.
OBJECTIVE 2: INCREASE LINKAGES TO DOMESTIC, REGIONAL, AND INTERNATIONAL MARKETS
Activity #AS321: Explore export market and facilitation linkages with local markets The 2017 asparagus harvest started in early April, one week earlier than in 2016 because of the mild spring. Yield and quality was higher compared to last year and marketing of the harvest was improved. Three SP’s (Kasimi, Asparakos and Istogu) were very active in the collecting and marketing of the newly harvested asparagus. Collaboration between collection center and growers was good but still, there is room for improvement. The total volume of asparagus marketed by the three collection centers, Kasimi, Istogu and Asparakos, totaled 9,609 kg, valued at €38,438 or 36% more than last year. The total excludes some quantities sold direct by the growers off the farm. It is important to mention that 650 kilograms of asparagus was exported to Albania, which is a good indicator of export opportunities for the coming season. The average price for marketed asparagus through collection centers was €4/kilogram. The marketing of harvested asparagus took place through both existing marketing channels and newly established channels facilitated by AGRO marketing staff. AGRO linked SP “Kosumi” with new sales opportunities through restaurants, the “Emona” supermarket, and the “Fresh Fruits” trading company. During Q3, AGRO accompanied the CCs in visiting all asparagus growers to assess expected volumes for sale and to strengthen collaboration between collection centers and growers. Additionally, it was important to continue educating growers about the quality of product harvested.
42 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT PLANNED FOR THE NEXT QUARTER - Organizing meetings between collection centers and growers to evaluate the current situation and explore new market channels for the coming seasons. Activity #AS322: Facilitate collection centers to organize promotional event The Program proudly promoted Kosovo’s new and very successful crop – asparagus – with the fourth annual Asparagus Promotion Days from April 26-28. Local asparagus farmers presented their hand-picked product to the public in downtown Pristina, and on April 27, Chef Arsim Mehmeti – a TV personality and local restaurant owner – held a cooking demonstration. The event gave many people their first ever taste of asparagus. U.S. Ambassador Greg Delawie, USAID Mission Director Jim Hope, and Kosovo’s Minister of Agriculture Memli Krasniqi attended and supported the event. The event was widely covered by the media, and statements of support to this value chain were made by the Ambassador and the Minister at the event.
Street promotion days for asparagus
OBJECTIVE 3: STRENGTHENING STRATEGIC PARTNERS
Activity #AS331: Regional study tour for asparagus stakeholders It was intended that four asparagus stakeholders, two collection centers, one grower and a technical adviser would be supported to conduct a regional study tour expected that would take place by the end of Q2. Potential destinations included Greece or Italy, where collection centers would increase their knowledge of production and post-harvest activities, eventually to be passed on to local asparagus stakeholders. Due to the difficulty in scheduling the timing of this trip to coincide with regional harvests and in time to benefit Kosovo’s harvest, this trip was cancelled for this year. PLANNED FOR THE NEXT QUARTER Activity cancelled RESULTS THIS QUARTER
Number Short Name of the Indicator FY17Q1 Actual FY17 Q2 Actual FY17 Q3 Actual R1.1 Trainings - 2 R2.1 Sales - - $44,163
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 43 1.2.5 MEDICINAL AND AROMATIC PLANTS (MAP)
OBJECTIVE 1: IMPROVED FARM PRODUCTION AND FOOD PROCESSING
Activity #MP312: Support and leverage funds for cost-effective drying processes and renewable energy use in MAP processing ACTIVITY PROGRESS During Q1, AGRO completed the construction of black plastic greenhouses for micro MAP growers (less than 0.2 hectare per growers) in Strpce, by adding additional racks inside the units to increase drying space. These showed promises during the latter half of the harvest season, and growers were satisfied that they will contribute to improving both the quality and drying rates for their crops. This small grant intervention has added 3,000 m² of cost-effective, manageable and clean drying capacity to this rural farming community, all at a very affordable cost. The effectiveness of the new structures may pave the way for additional donor support to micro MAP growers in this and other areas of Kosovo and enable expansion of the areas able to grow these medicinal and aromatic plants on a micro basis.
EWB, AGRO and SP Agroprodukti inspecting the solar drying units
During Q1, Engineers without Borders (U.S.) supported SP Montcomerce GZ to finalize modifications to the loss-free solar drying system. Although working tests were conducted in late autumn, they showed some positive results. The firm is now fully able to conduct sound engineering tests of the modification during Q3. During Q2, EWB conducted a preliminary study to determine the effectiveness of the established black plastic drying tunnels for micro and macro MAP use. Although farming women in Shtërpce used the 50 units of simple-structured drying tunnels for micro-MAP cultivation for only a few months, and only then after the season had already started, the results were very positive and encouraging. The efficiency and effectiveness was confirmed during the drying process across a wide range of cultivated and wild harvest MAP products. Additionally, in Q2, AGRO in collaboration with Engineers without Borders (U.S.) supported SP Montcomerce GZ to consider using the black plastic drying tunnels for chamomile drying if an additional ventilation source could be added to maintain ventilated temperatures required for the chamomile crop. During Q3, AGRO and EWB directed the installation of a larger solar drying facility in support of chamomile drying. This solar tunnel dryer, the first of this size in Kosovo, represents the next step in alleviating the bottle neck of drying for this sector.
44 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT The unit was effectively utilized during the chamomile harvest of Q3 and although the unit was unable to dry product completely to processing specifications, it removed at least 50% of the moisture and, importantly, reduced the cost of transport to the final drying facility and saved on energy that would otherwise have been required for conventional drying operations. Large scale commercial dryer – Istog May 2017 PLANNED FOR THE NEXT QUARTER ‒ Identification of new promising areas of micro-MAPs cultivation to spread the use of cost-effective drying technologies. ‒ Continue to identify financial solutions in order to expand the drying capacities of SPs and their network of cultivators.
OBJECTIVE 2: INCREASED LINKAGES TO DOMESTIC, REGIONAL, AND INTERNATIONAL MARKETS
Activity #MP321: Organize B2B and exchange visits with the major EU processors ACTIVITY PROGRESS Visit to BioFach Fair, Nuremberg, Germany – As part of an AGRO grant activity, “Organika,” the association of NWFP processors and exporters, organized a visit for its members to the world’s largest fair for organic products, BioFach in Nuremberg. Seven companies visited the fair including “Agroproducti” from Istog, “EuroFruti” from Prishina, “Hitflores” from Dragash, “Fungo” and “Afrofungo” from Kamenica and “Natyra” from Novo Brdo. ’Agroproducti’ representatives had 25 meetings, which resulted in verbal agreements that are expected to translate into contracts for existing products currently being exported, as well ORGANIKA members visiting Biofach in as for two additional products under development. Other Germany companies had at least 50 meetings with exhibitors from all over the world. Kosovo is being recognized as a source of good-quality raw material and contract offers are expected to come from buyers met during these meetings. However, Kosovo must improve its presence at the fair; a country booth will improve the visibility of Kosovo companies and products. To this end, the director of Organika has visited the management of the fair and looked into booking space for the 2018 fair, in anticipation of potential funding from donors and/or the government of Kosovo. In addition, the director of Organika, an AGRO staff member and several companies participated in two presentations regarding sustainable collection of NWFP and FairWild Certification. During Q3, seasonal inbound visits by German herb processing companies to AGRO SP’s ‘APS’, ‘Driardi’, ‘Agrololi’ and regional collection centers got underway. Importers ExtraVit and Lebensbaum were two key buyers with increased interest in Kosovo-origin product. The firms were shown the new innovations in solar
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 45 drying across the country as well as expansion in cultivated micro MAPs. The increased utilization of solar energy in the drying process was of significant interest to the firms. PLANNED FOR THE NEXT QUARTER ‒ Continue to support inbound visits by potential buyers to Kosovo. ‒ Coordinate International Trade Fair attendance and attend B2Bs with the SPs and Organika. Activity #MP322: Facilitate Contracting with new MAP growers ACTIVITY PROGRESS FairWild Certification The 30 new contracts signed during Q1 have been easily fulfilled and in some logo cases deliveries have exceeded contract expectation. The largest increase was seen in the micro-MAPs sector, where many small-scale women farmers entered production. In Kovraga village, 10 new farmers from minority communities received micro-MAP seedlings in Q2 and entered new contacts with APS. In Malisheva municipality, 50 interested farming families, including women farmers, received a training in Q2 organized by Agroshqiponja, a collection center and cultivator in this area. Through long-term contracts, all interested faming families will be supplied with seedlings of 5 micro-MAP species. Q3 saw tremendous interest from rural farming groups – mainly women’s groups involved in Micro MAP cultivation. Women for Women Kosovo applied for a grant to support micro MAPs production in Viti municipality, and AGRO has received calls from at least six municipalities for an Agroshqiponje agronomist supporting women growers in cultivating Calendula in introduction to micro Maleshevo production and marketing. Field visits were the key activity in support of micro MAP growers during Q3. ‘Biofruti’ was supported to reach its goals through new crop plantings and was supplied with seedlings of 5 micro-MAP species in conjunction with long-term contracts. ‘Agroshqiponja’ successfully concluded the planned 50 contracts not only in Malisheva municipality but in six other municipalities as well. Micro MAP producers in Istog from the Egyptian community excited by the new opportunity to grow Malva sylvestris (black marshmallow)
46 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT PLANNED FOR THE NEXT QUARTER ‒ Follow up production and sales from all producers
OBJECTIVE 3: STRENGTHEN STRATEGIC PARTNERS
Activity #MP331: Provide TA on organization and financial management ACTIVITY PROGRESS AGRO continued to support the engagement of local sub-contractor Recura to develop specific programs to assist the two MAP SPs to improve their organizational and financial management skills. Thus far, SP Agroprodukt has received initial consultations. The improvement in organizational and financial management skills will also be beneficial for other SPs entering the sector. Support will be directed to specific firms to enable them to meet the requirements of international partners and to better understand the requirements of the Tax Administration of Kosovo, especially for the administration of VAT. The MAP sector was approached during Q3 to develop a VAT training for the industry that would be appropriate to its needs. PLANNED FOR THE NEXT QUARTER ‒ Guide the SP’s through the organizational and financial management skills acquisition process with local subcontractor Recura. Activity #MP332: Facilitate implementation of export requirements - food safety standards and organic certification ACTIVITY PROGRESS Organika association signed a Memorandum of Understanding (MoU) with “Albinspekt” during Q2. The main objective of the MoU is to define collaboration between both organizations targeting an increase in the number of companies certified with organic certification. “Albinspekt” will provide services to Organika members at a discounted price. As result of this, Organika has two new members – both collection centers - with an interest in organic certification. In addition, Organika representatives participated in a meeting for organic agriculture promoted by Caritas Switzerland. One of the decisions was that MAFRD will establish a working group for the preparation of an Administrative Instruction for organic collection of wild harvest MAPS. During Q2, the Organika Association had several meetings with both donors and certification bodies. At a meeting with GiZ, participants discussed possibilities for collaboration in the development of training capacities of the association as well as the provision of trainings to members and their suppliers on organic cultivation of MAP’s and berries as well as on the sustainable collection of NWFP following the organic and FairWild standard. In addition, GiZ is expected to support members of the association to visit the “Tuttofood” trade fair in Milan, Italy, and “Anuga” in Cologne, Germany. A second meeting was organized with the EU project “Increase competitiveness and export promotion” working with KIESA. It was an opportunity to present the potential of the MAP sector for export. AGRO staff expressed interest in supporting the members of the association to increase their competitiveness and support export promotion. During Q3 and as result of the Albinspekt partnership, Organika gained 15 new members, mainly collection centers with an interest in organic certification. In addition, Organika representatives participated in a meeting on organic agriculture established by Caritas CH. One of the decisions made there was that MAFRD will establish a working group for preparation of an Administrative Instruction for organic collection of all wild and cultivated MAP products. Six members agreed to go through organic certification during this season. This would triple the number of certified members.
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 47 PLANNED FOR THE NEXT QUARTER ‒ Support SPs to further the implimentation of organic certification on new and existing areas of cultivation. RESULTS THIS QUARTER
Number Short Name of the Indicator FY17 Q1 Actual FY17 Q2 Actual FY17 Q3 Actual R1.1 Trainings 90 - R1.3 New Tech HA - 110.3 R2.1 Sales $348,771 $303,213 $2,052,849 R2.6 Sales from contracts - $184,677 $73,843
1.2.6 INNOVATIVE HORTICULTURAL VALUE CHAINS
OBJECTIVE 1: IMPROVED FARM PRODUCTION AND FOOD PROCESSING
Activity #IHC311: Strengthening Strategic Partner in product diversification according to market demand ACTIVITY PROGRESS During Q1, Produktet Natyrale nga Kosova received through MAFRD grants, additional harvesters and a pumpkin planting and cultivating equipment. Despite this additional equipment, the excessive rainfall that fell toward the end of the harvest period, delayed harvesting and left some fields to be manually harvested. In many cases, field workers collected pumpkins by hand and delivered them to the seed extractor unit at the field edges. Some of these problems were brought about because of late planting due to delayed customs clearance of imported seed late in 2016.
Challenging harvesting conditions for the late pumpkin crop during Q1.
48 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT
Fatmir Shala, a new commercial seed pumpkin grower from Ferizaj, was very satisfied with the yields, however, and financial returns resulting from his 50 hectares of crop planted in 2016. Shala and his commercial partners planned to establish 360 hectares in 2017 – 330 hectares dedicated for Austrian markets in collaboration with Produktet Natyrale nga Kosova and 30 hectares under organic cultivation in collaboration with ID Organics from the Netherlands. Thirty (30) growers were initially included in this process, including for the first-time, small growers in Kaçanik. Thanks to his mechanical staff, the criteria for mechanical interventions to improve performance of existing harvesters and line markers were identified during the 2016 season and will be incorporated into the 2017 equipment line-up. Produktet Natyrale nga Kosova, Fatmir Shala the Ferizaj-based grower, and Peja Agricultural Department Director Mehdi Mulaj came together again in Peja during Q1, for a series of meetings facilitated by the Program to analyze the season’s performance. The main issues influencing the season’s results were identified and resolutions were defined as follows: – Permanent agricultural advice in the field through engaged professional staff is critical; – On-time communication with institutions to overcome difficulties in the seed supply are essential; – New harvesters are required since planted area will be at or about 1,000 hectares; and – Alternative, closer-to-retail markets are attractive so a new marketing strategy should be developed for what could be a 1-million-kilogram crop. During Q2, a Swiss company in Kosovo that grows pumpkins specifically for soup production requested information regarding our GlobalGAP certification program and the potential in Kosovo. AGRO informed the company manager on procedures and timing envisaged to initiate the process. Soup pumpkins have been grown in Kosovo for the last three seasons, and are already exported to Switzerland. A total of 730 hectares were prepared for planting out of which 700 hectares were destined for conventional cultivation and 30 hectares for organic production. In addition to conventional, open-pollinated seed, hybrid seed was, for the first time, imported to establish a trial of 4 hectares in the Ferizaj region. This type of seed is used in Austria, where the yield is twice that seen with the variety of seed used by Kosovo-based growers. The price of hybrid seed is higher than that of the open-pollinated varieties. After the visit to Austria last year, local growers decided to establish some trials in fertile soils to compare investments versus incomes. Fatmir Shala from Ferizaj was instructed on pumpkin industry development in the Ferizaj region including plantation distribution to enhance machinery utilization. A young agronomist engaged by AGRO as an intern during the 2016 growing season was permanently engaged by B Farm, another Program Strategic Partner in fruits. Therefore, companies involved in pumpkin seed production were advised by AGRO staff to communicate with input dealers ready to increase their profile by providing embedded advisory and field service services to growers. A local input dealer based in Istog is offering solid advice so far, especially on weed management, which has been a major concern for this crop in the past. “Agroshala” from Ferizaj is closely collaborating with an input dealer based in Viti. The two input dealers are supporting two growing companies in weed control, utilizing products permitted by the buyer’s standards. AGRO facilitated the communication among all parties.
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 49 Well covered field with no weeds and with very well Differences in growth from hybrid seed (right) versus developed foliage promises a good harvest this season the one from varietal seed (left) are remarkable
During Q3, 700 hectares were planted using conventional technologies, 30 hectares under organic cultivation and hybrid seed was planted on 4 hectares. Results so far are promising.
Organic pumpkin grown for seed on the field at left. Mechanical weed control on the right.
PLANNED FOR THE NEXT QUARTER – Follow up on crop development and advisory service performance;
OBJECTIVE 2: INCREASED LINKAGES TO DOMESTIC, REGIONAL, AND INTERNATIONAL MARKETS
Activity #IHC321: Support Strategic Partner in identification of alternative markets ID Organics from the Netherlands is still seeking additional partners for organic pumpkin cultivation for the Dutch and other markets. After initial discussions, an informal agreement was reached during Q1 between the Dutch company and Fatmir Shala from Ferizaj to establish organic production on an area of 30 hectares. There is a substantial decrease in overall market demand this year and the price is depressed. Sixty (60) metric tons of dried seed is the maximum the Austrian buyer is interested to import from Kosovo. The price offered per kilogram is now €1.20 compared to the €3.20 /kilogram offered at the beginning of the 2016 production season. In discussion with company management, the need for an investigation of alternative markets is clear as well as product diversification and more intensive product promotion in local and regional markets. Produktet Natyrale nga Kosova is aiming to introduce a seed sorter and a packing unit for dried seed to respond to specific market requirements. In parallel, the company is seeking markets in Germany and Holland through Kosovo-based marketing channels established in these countries. Dutch companies interested in organic seed have also recently shown an interest for conventional seed as well.
50 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT Dauti Commerce, a Kosovo company, has shown an interest in marketing pumpkin seeds produced in Kosovo in the region, offering an attractive price to growers. The product will be cleaned and packed per Dauti Commerce requirements, which are dictated by final consumers. Kelmendi GmbH is also expressing an interest in introducing to German markets about 50 tons of dried Kosovo-origin pumpkin seed. To be able to respond to market criteria and final consumer demand, additional processing machinery must be installed. Produktet Natyrale nga Kosova was accompanied by AGRO in discussions at the EU regional office in Peja, where AGRO staff explained the crop’s potential. Produktet Natyrale nga Kosova was motivated to prepare for the next call for applications from the EU. A contract with Agroshala was signed during Q2, through which the company seeks financial support from USAID for the purchasing of equipment used for drying pumpkin seeds. This grant was approved in Q3, and implementation is in process. PLANNED FOR THE NEXT QUARTER – Follow up on the grant implementation;
OBJECTIVE 3: STRENGTHEN STRATEGIC PARTNERS
Activity #IHC331: Support Strategic Partner in business and financial management ACTIVITY PROGRESS Produktet Natyrale Nga Kosova took the lead in bringing together MAFRD and Kosovo Customs representatives in Q1 and Q2 to discuss last year’s difficult experience with seed import and developed solutions to avoid the same experience in 2017. Because of a conflict between two administrative instructions, the customs clearing process was delayed causing delays in planting which resulted in at least a 25% financial losses to growers in the last season. During Q2, MAFRD announced the call for application for subsidies in agriculture. As stated in the official documents, MAFRD had removed subsidies to pumpkin production. Program Strategic Partners with the support of AGRO staff, managed to organize a series of meetings at different levels within MAFRD including with Minister Memli Krasniqi during Q2, to lobby for the restoration of the subsidy support to the pumpkin subsector. These efforts were successful with a full restoration being announced late in Q2. A meeting between Recura staff and Produktet Natyrale nga Kosova (PNK) management was organized. PNK expressed a need for further capacity building in finance management while Recura staff committed to preparing the training module for the company and jointly establishing a training schedule. The support from Recura is ongoing and during Q4 a report with findings will be delivered to PNK. PLANNED FOR THE NEXT QUARTER Follow up on the training implementation.
Number Short Name of the Indicator FY17 Q1 Actual FY17 Q2 Actual FY17 Q3Actual R1.3 Tech HA 330 7 R1.6 Firms new Tech - 1 2 R2.7 SPs organizing B2B R2.8 No. of people in B2B 49
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 51 1.3 LIVESTOCK
OBJECTIVE 1: IMPROVED FARM PRODUCTION AND FOOD PROCESSING
Activity #DC311: Applying science and technology to enhance dairy supply chain information dissemination ACTIVITY PROGRESS Dairy farm management data and milk records are important management tools for dairy farmers. By recording and analyzing essential data, dairy farmers are able to identify the main strengths and weaknesses in their herds and make informed decisions to improve the efficiency and profitability of their dairy farm business. The AGRO program is supporting KAMP (Kosovo Association of Milk Producers) in leveraging funds from European Union Office in Kosovo to develop a new IT module. AGRO contributed to the meetings held with the IT experts from the EU funded project, Andrew James and James Hanks, to discuss the possibilities for designing dairy cow reproductive management software. The aim of the activity is to expand the range of services provided to KAMP members. The dairy cow reproduction management software will be owned and maintained by KAMP. It was suggested initially to develop a web application where dairy farmers could insert records on individual dairy cow reproductive performance and then have the data transferred and stored in a I&R (Identification and Registration) database, which would alert dairy farmers about the actions to be taken in herd management. The aim is to develop a database useful for farmers and veterinarians, who will then be willing to pay for the services received. The discussions were focused on how to bring the reproduction data up to date and how turn the reproduction data into useful information for farmers. The software will be able to generate reports that groups dairy cows in a herd by fertility status. Additionally during this quarter, 188 dairy farmers were trained by TRMS field officers in proper milking procedures to improve milk quality as well as how to access MAFRD milk quality subsidies. From top to bottom, pasteurized milk PLANNED FOR THE NEXT QUARTER promotion campaigns at fitness centers, in schools and at a regional fair in Gjakova. - Continue to assist KAMP in leveraging funds from European Union Office in Kosovo for developing a new IT module. - Continue to mentor KAMP training of dairy farmers on proper milking and cleaning procedures.
52 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT OBJECTIVE 2: INCREASED LINKAGES TO DOMESTIC, REGIONAL, AND INTERNATIONAL MARKETS
Activity #DC321: Support selected dairy plants to introduce pasteurized milk in the market ACTIVITY PROGRESS During this quarter, the pasteurized milk promotion campaign continued in fitness centers and kindergartens and at regional agriculture fairs throughout Kosovo. During the promotion in fitness centers, the focus was on informing individuals involved in fitness and sports about the vitamins, proteins, and mineral values of pasteurized milk. The promotion reached 531 individual visitors to fitness centers. Individuals training in the gyms also had a chance to taste pasteurized milk. Additionally, during this quarter, the pasteurized milk promotion campaign was launched in kindergartens. Thirty children were directly involved during the kindergarten promotion campaign. A number of activities were organized to teach children about the benefits of fresh milk. They too had a chance to taste pasteurized milk. On June 1, World Milk Day was celebrated as part of the pasteurized milk promotion campaign. Domestic dairy processors, represented by Abi, Magic Ice, Bylmeti, Kabi, Rugove, Koral, Alpina Sharri and Eurolona, were stationed in the main pedestrian mall in downtown Pristina to mark the occasion. The dairies set up stands and passed out promotional material. Paul Vaca, acting USAID Deputy Mission Director, together with Arsim Mema, chief of the livestock department within MAFRD; president of the Kosovo Dairy Industry Association (KDIA) Gani Durmishi; and Mark Wood, AGRO COP, visited the displays and spoke with dairy managers. The event was covered by media including RTK, KTV, TV 21, Kosova Press and Rrokum TV. The first promotion campaign targeting a regional fair was held during Gjakova’s “Dite e Agrobiznesit Kosova 2017” where citizens were informed about the importance and health benefits of pasteurized milk consumption. The second such promotion campaign took place at the Pristina green market. In addition, visitors had the opportunity to taste pasteurized milk. Many were amazed by the taste and good quality of locally produced pasteurized milk. Thanks to the promotional campaign, the demand for pasteurized milk continued strongly in Q3. Sales of pasteurized milk by the initial four dairies amounted to €168,969, bringing sales for year to date to €651,000. This total, equal to $730,000, exceeds the annual project target with one quarter remaining. New dairies are initiating production systems and will show sales data during Q4, further boosting sales. PLANNED FOR THE NEXT QUARTER - Monitor the impact of the fresh milk promotion campaign on increasing sales for the selected dairy companies. - Generate within the industry opportunities to expand the program to potentially include cheeses.
OBJECTIVE 3: STRENGTHENED STRATEGIC PARTNERS
Activity #DC331: Facilitate KAMP to leverage funds for expanding membership activities ACTIVITY PROGRESS During this quarter, KAMP continued lobbying the President of the Kosovo Parliament, Kadri Veseli, and the Minister of Agriculture, Memli Krasniqi, to promote new policies that the Kosovo government could introduce to improve sales of pasteurized milk, which would have significant impact at the producer level. The main requests presented to Veseli and Krasniqi by the representatives of the Kosovo dairy industry was to remove the Value Added Tax (VAT) on sales of pasteurized milk, aiming to boost consumption of pasteurized milk and to substitute imports of fluid milk by lowering the sales price of pasteurized milk produced by Kosovo dairy plants. One additional request raised by representatives of the Kosovo dairy
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 53 industry was to introduce a floor price for certain dairy products sold in the market as a mechanism to fight against the dumping of dairy products from other countries. Both Veseli and Krasniqi agreed to explore the options and see what legal basis exists for introducing such policies. PLANNED FOR THE NEXT QUARTER
• Assisting KAMP to commence the implementation of a European Union-funded project. RESULTS THIS QUARTER
Number Short Name of the Indicator FY17 Q1Actual FY17 Q2 Actual FY17 Q3 Actual R1.1 Trainings 80 245 92 R2.1 Sales $348,771 $187,952 $194,147
54 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 2.0 CROSS-CUTTING
2.1 AGRICULTURAL SUPPORT SERVICES Implementation of international food safety standards in primary and processing industries is becoming a critical challenge to Kosovo’s agricultural sector. Local producers’ and processors’ awareness of the importance of this standard in their production is increasing. Many of the producers and their buyers have indicated that the international market prior to entering into direct contracts for sale is actively requesting GLOBALGAP or HACCP certified products. Since this is a fundamental step in the development of Kosovo’s market development, ongoing certification work is an absolute necessity. Activity #SS311: Capacity building for Quality Management Systems & G.A.P. internal Auditors ACTIVITY PROGRESS A number of local producers and agricultural consultants in Kosovo are familiar with international food safety standards, but few of them have official authorization to conduct internal audits of producers interested in certifying their products. To improve the current situation, in Q3, AGRO program engaged certification agency “Vitma d.o.o” from Croatia, representing the certification body AgroManagement from Denmark (http://www.agromanagement.dk/en/) to conduct two five-days training sessions for GLOBALGAP & HACCP internal and external inspectors/auditors. The first training session was conducted in the last week of April, while the second training was carried out in the first week of June. Upon completion of the first five-day training, participants were subjected to a written examination for internal GLOBALGAP & HACCP inspector/auditors. Out of 22 participants of the GLOBALGAP examination, 14 participants successfully qualified, while the HACCP internal auditor test produced 17 qualified individuals.
Figure 1. Five days GLOBALG.A.P & HACCP training for internal and certification inspectors/auditors
Participants who successfully passed the GLOBALGAP written examination became officially certified GLOBALGAP internal inspectors able to offer GLOBALGAP internal inspection services for Option (1) individual farm, while for offering GLOBALGAP internal audit service for Option (2) farmers as groups, an additional training in Quality Management Systems (QMS) is required. Such training will be organized at the end of Q4. PLANNED FOR THE NEXT QUARTER - Prepare and anounce RFQ for QMS training service; - Conduct QMS training - Develop local capacities to offer QMS technical advisory services. - Develop local capacities to offer GLOBALGAP. certification audit for Option (2)
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 55 Activity #SS312: Capacity building for GLOBALGAP and HACCP external Auditor ACTIVITY PROGRESS All participants who successfully pass the written examination in the previous training activity SS311, and who have become GLOBALGAP & HACCP internal inspectors/auditors able to offer internal audit services to local producers/processors, during the first week of June received their right to the follow-on training for GLOBALGAP & HACCP certification external inspector/auditors. At the end of this training of five-days, participants were subject to a written examination, set by the owners of the GlobalGAP quality brand – FoodPlus GmbH. Examination results will be published in the first weeks of Q4
GLOBALGAP. & HACCP internal inspection/audit certificates
PLANNED FOR THE NEXT QUARTER - Organize event for delivery of GLOBALGAP & HACCP certificates Activity #SS313: Food safety infrastructure improved ACTIVITY PROGRESS Successful implementation of food safety standards in primary production requires soil, water, final product laboratory analysis, appropriate production processes, safe production equipment and farm infrastructure. Unfortunately, only a small number of farmers fulfill all of these requirements. To fulfill these requirements, AGRO engaged the Kosovo Institute of Agricultural (KIA) to conduct soil, water and final product laboratory analysis, while the agricultural department of Podujeva has taken the responsibility to supply farmers with safe-use of pesticides equipment. Thus far, 759 soil laboratory analyses are complete, while another 546 water samples are in the process of analysis. By the end of Q3, water test physical and chemical analyses are complete for all farms, while microbiological testing of water is in the final phase of analysis. Besides progress made in the field of laboratory analysis and technical support for all listed raspberry producers, Podujeva municipality is intensively working on the fulfillment of their own commitment supplying farmers with safe use of pesticides equipment required as GLOBALGAP essentials. Delivery of shelves, protective clothing and sprayers were initiated in Q3 with 184 farmers having received the municipal contribution by the end of Q3. This activity will be completed at the beginning of Q4.
56 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT
Inspection of safe use of pesticides tools in Podujeva Delivery of water samples at KIA institute supplied by the municipality
PLANNED FOR THE NEXT QUARTER ‒ Delivery of water laboratory results to the farmers; ‒ Support distrubution of shelves, protective clothing and sprayers to raspberry producers; ‒ Conduct internal audit at all raspberry farms and prepare for the external audit.
Activity #SS314: Design and implement a database record keeping system for raspberry producers ACTIVITY PROGRESS With the aim of recording production activities with all raspberry producers, AGRO project created a soft copy of a GLOBALGAP record keeping database system. Through the support of twelve agriculture interns engaged to assist in this activity, forms for recording all production activities at each production site have been created and production activities have been recorded throughout the production process in order to meet the requirements of the GLOBALGAP certification.
Meeting with GLOBALGAP. interns and asessing proper water well management
This database record keeping system is enabling us to create a traceability system as a basic requirement of each food safety certification process. Enhancement, adoption and use of the record keeping database system will continue during all GLOBALGAP implementation processes.
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 57 Classroom and practical field training for record keeping procedures, GAP farm infrastructure assessments and soil, water and product sampling procedures was conducted in conjunction with the interns engaged in support of this activity. PLANNED FOR THE NEXT QUARTER ‒ Follow up with GLOBALGAP implementation technical support for the final list of raspberry producers; ‒ Field visits to raspberry producers to evaluate/verify implementation progress; ‒ Engage an authorized GLOBALGAP certification body to conduct the certification audit for raspberry producers, members of the raspberry association “ Mjedra e Llapit” from Podujeva; ‒ Certification of “Mjedra e Llapit” association with international certificate for primary production GLOBALGAP. Activity #SS315: Winter training school for all farmers interested in certifying their products ACTIVITY PROGRESS For successful certification of agricultural products, farmers need to follow several prerequisite trainings such as; 1) Safe use of Pesticides, 2) Integrated Past Management, 3) Good Agricultural Practices, 4) First Aid, 5) Good Hygiene Practices, 6) Disinfection, De-insection and De-ratization.
Water sampling training conducted by KIA Three-day trainings for raspberry producers in Podujeva During Q2, AGRO conducted three-day trainings for 494 raspberry producers from the Podujeva municipality involved in implementation of the GLOBALGAP standard. Topics covered in these training events were: a) Good Agricultural Practices (GLOBALGAP), delivered by Reshat Ajvazaj - AGRO Post Harvest Handling and Processing Specialist; b) Safe Use of Pesticides, delivered by Laura Krypa – AGRO Environmental Compliance Inclusion Specialist, and c) Raspberry production techniques, delivered by Kujtim Lepaja – AGRO Senior Soft Fruit Production Specialist. Through these trainings, participants learned and shared knowledge on food safety practices, proper harvest and postharvest handling, and record keeping procedures according the GLOBALGAP food safety standard requirements. Additional field trainings for producers involved in the GLOBALGAP implementation process will be conducted by twelve new agronomists engaged as interns to support implementation of the GLOBALGAP standard at raspberry producers sites, members of raspberry association “Mjedra e Llapit” from Podujeva municipality. Additional training of trainer (ToT) trainings were organized during Q2 for agricultural interns and producers involved in the GLOBALGAP implementation process. PLANNED FOR THE NEXT QUARTER ‒ Work with interns and growers to finalize the GlobalGAP audit and certification.
58 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT Activity #SS316: Complete Subsector Export Promotion Plan (SEPP) for Fruits and Vegetables ACTIVITY PROGRESS During Q1, smaller groups worked extensively on the final draft of the Export Promotion Plan (SEPP) for Fruits and Vegetables, in full coordination with KIESA and the Ministry of Agriculture. Data gathered was further analyzed in terms of specific export market opportunities, including potential markets, export and distribution channels, and minimum quantity requirements. Final adjustments were made to the draft per findings from the reports from main stakeholders. During Q2, new consultations were made and it was agreed with the AGRO team that a new outline will be presented for the SEPP, re-categorizing the content into a more appropriate format. It was also agreed that work on the SEPP draft will be approved on a chapter basis where each chapter of the report will be approved separately and then, in the end, the whole report will be approved. The Subsector Export Promotion Plan (SEPP) was presented to the main stakeholders and it was agreed to continue and improve the presented draft for acceptance during a public presentation during Q4. PLANNED FOR THE NEXT QUARTER - It is planned that the final Subsector Export Promotion Plan (SEPP) document will be delivered by the end of Q4. Activity #SS317: Assist SPs in developing Business Development Plans and advice on financial management ACTIVITY PROGRESS In the initial phase of the activity, Recura contacted two of the businesses identified by AGRO, and meetings were held to identify the needs of the companies in the fields of business development, human resource and financial management. Meetings were held with representatives of Euro Tac – the SP collection point from Mamusha and KORAL, a SP processing company from Pristina. ‒ For Euro Tac, Recura prepared a report on the analysis of the most suitable methods for applying the VAT policy and made recommendations for the most appropriate form of company registration. ‒ For Koral, after the initial meeting, a scope of work was drafted which contains proposals for a review of the company’s processes and current accounting and financial reporting system, management information needs and analysis of its current production lines and products. During Q2, Recura contacted three agribusiness that were recommended by the AGRO team. These include “Organika”, the Association of organic producers of Kosovo, “Produkte Natyrale te Kosoves” and NTP Moni. Only NTP Moni requested Recura’s assistance at this stage, asking that Recura provide in-house coaching on and present a report on their findings relative to the following: - A review of VAT law and its implications on the company; - Explanations of VAT and its implementation; - Book-keeping and VAT declaration; - VAT rates for basic agricultural products; - Real income taxes; - Taxes on real incomes for large businesses, individual businesses as well as book-keeping; - Deadline and requirements for taxes registration; - Documentation of fuel expanses and calculation of their costs.
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During Q3, Recura started by offering consultancy services to a Consortium of Frutomania, MOEA, Kodra e Diellit, Dhemetra and Agmia Fruits: The objectives of the engagement include the following: 1) Equity valuation of MOEA LLC 2) Equity valuation of Frutomania LLC 3) Preparation of Investment Project with Feasibility Study for the company Group/Holding of companies 4) Corporate restructuring of the Group – Consolidation of companies into a group of companies or Holding 5) Equity Valuation (value per stock) at group level of the new company including the new investment project 6) Financial/Investment solicitation for the new company The valuation will be done by using different valuation techniques, depending on the activity of the company. In the case of primary production of fruits, for comparison purposes, valuation will be conducted using the same methodology used for the valuation of companies Kodra e Diellit and Agmia. PLANNED FOR THE NEXT QUARTER It is planned that the consultancy work with the Consortium will be finished by the end of Q4, and ready for presentation to equity investors. Activity #SS318: Support to MAFRD with Technical Advisor ACTIVITY PROGRESS In Q1, following the development of the scope of work and an advertisement for the position, Mr. Menderes Ibra, ex-Permanent Secretary within the MAFRD and ex-advisor to the Minister of Finance, was selected as the advisor to the Minister of Agriculture. His role will be to coordinate activities between MAFRD and AGRO, while providing continuous advice on technical issues to the Minister of Agriculture. The initial task for the advisor was to assess the situation regarding agricultural insurance and to propose a methodology for its implementation and to recommend the most appropriate role in this area for the MAFRD. Program management together with the advisor discussed with the International Finance Corporation (IFC) potential collaboration and met with KFW and EFSE (European Fund for South East Europe) to discuss their involvement in this activity. Throughout Q2, the Advisor continued to play a very positive role in the ongoing coordination between IFC and AGRO, discussing options to introduce agricultural insurance. Other activities include direct advice on policy development and better programing for the government’s program regarding subsidies and grants. The advisor continued to provide advice to the Minister of Agriculture throughout Q3, especially in relation to Agricultural Insurance where he played a positive role in addressing issues pertinent to the AGRO project. At the same time, the advisor provided regular advice on issues related to VAT and supported government in programing. During Q3, the Advisor supported apple producers to start preparing a white paper policy on apple and fruit VAT. PLANNED FOR THE NEXT QUARTER ‒ Follow up Ag Insurance activities and assist the MAFRD Minister on development of policies; ‒ Facilitate the communication between associations and government; ‒ Assist the MAFRD Minister and facilitate activities related to AGRO program.
60 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT Activity #SS319: Provide TA for cost of production in vegetable processing ACTIVITY PROGRESS This activity was completed in Q2 in collaboration with subcontractor CNFA. The consultant, Mr. Jeffrey Engels assisted PePeKo and worked with Koral and ABI F&V processors to analyze cost of production at the processing level. During a two-week consultancy, Engels worked with processors and the PePeKo administrator and finally delivered a presentation to PePeKo members. The Final report was delivered and Koral received the documents which he will use to support improved calculations of overhead costs. PLANNED FOR THE NEXT QUARTER - No further action envisaged RESULTS THIS QUARTER
Number Short name of the indicator FY17 Q1 Actual FY17 Q2 Actual FY17 Q3 Actual R1.1 Trainings 50 78 R1.7 Certified Auditors 21
2.2 AGRO-JOB CAREER CENTER
OBJECTIVE 1: IMPROVED FARM PRODUCTION AND FOOD PROCESSING
Activity SS3113: Facilitate job placement through Agro-job career center ACTIVITY PROGRESS Aiming to ease the transition from university to permanent job positions, during Q3 KAEC (AGRO strategic partner – the Kosovo Agriculture Education Center) launched its first call for applications, inviting young agriculture graduates to submit their applications to be placed into professional positions at various agricultural enterprises. In order to be part of the Professional Placement Program, every interested graduate of the Faculty of Agriculture and Veterinary had to submit three documents (CV, Letter of Motivation and Application form). During the first call, there were a total of 39 applications. The majority of applicants (graduates) were from the Food Technology Department (43%), followed by Plant Production (23%) and Agricultural Economics (12%). After all applications were received from the graduates, CVs and letters of motivations were shared with agribusiness companies based on student interests and the region they were coming from. After these documents were checked by companies, students were then invited for interviews. After interviews were organized at the offices of each company, conducted by the representatives and managers of the host agribusiness companies, 11 young agriculture graduates were selected to start their 3-month job placement period.
In June, the first group of 11 young agriculture graduates Successful job placement candidates commenced the practice placement in the private agribusiness ready to start professional positions at companies. After signing their contracts, KAEC representatives participating agricultural enterprises. also organized a pre-placement training to build the confidence among young agriculture graduates, emphasizing the importance of showing commitment in the work place, and to respect the agribusiness company norms and standards.
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 61 Graduates were encouraged to engage with other employees of the company and to show their capacity and willingness to learn in order to add value to the firm. Initial feedback is that the young agriculture graduates are enjoying the transformation from in class theoretical learning to practical on-the-job learning. According to Mrs. Mevlide Osmani a young food technologist who has been placed at KABI dairy plant, the practical work is a unique opportunity for young agriculture graduates to enhance their knowledge and skills, starting from raw milk handling procedures in the dairy plant and then learning techniques in producing fermented dairy products such as yogurt, soft white and yellow cheeses. Additionally, during Q3, KAEC launched the second call for applicants to which 19 young agriculture graduates applied and are presently in the process of selection. PLANNED FOR THE NEXT QUARTER - Placing the second group of 15 young agriculture graduates into private agribusiness enterprises. Activity #SS3114: Capacity building for interns in fruit and vegetable value chain ACTIVITY PROGRESS During Q3, the KAEC team in close cooperation with the Agro-Job Career Center organized two field visits for students of the Faculty of Agriculture and Veterinary. In total, 109 students attended the field visit to AGMIA Fruit Company, Fruitomania - Fruit Juice Company, Besiana G – for soft fruits and MAPs and Hit Flores for soft fruits and a MAP Company from the Dragash municipality. At the AGMIA fruit company, students were able to learn the best practices for Raspberry and Sour Cheery cultivation. Students were very grateful for the opportunity to see the new techniques and new varieties for raspberry sour cherry cultivation. ADDITIONAL ACHIEVEMENTS During Q3, Mr. Jeff Cushing, a volunteer with Engineers without Borders (EWB) together with Mr. Tanner Kouba EWB project manager conducted on-the-job training for students and graduates from the Faculty of Mechatronics at the University of Pristina. Nine graduates attended the Program Logic Control Faculty of Agriculture students visiting (PLC) training that took place over six weeks. In this course, AGRO SP activities in the field students learned the fundamentals of programmable logic controllers (PLC) design and assembly. Skills such as ladder logic programming, circuit design, and equipment wiring were taught so that students could create control systems that can be used in a variety of food industry applications. Some of these applications include: temperature control systems, production line automation, and generic equipment automation. At the end of the course students received training certificates. Mr. Glen Noble a manager of a local IT company “Tekfuse” followed the training on PLC development. After interviewing 9 candidates, Mr. Noble agreed to hire two graduates for a three month period to serve as service persons to address future automation problems at food operators in Kosovo.
PLANNED FOR THE NEXT QUARTER - Continue the training of 10 selected young agriculture graduates in fruit and vegetable sector development. Training Faculty of Mechatronics students at the University of Pristina
62 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT Activity #SS3115 Develop the model for sustainability of the agro job career center ACTIVITY PROGRESS During Q3, KAEC representatives worked with industry leaders to develop a draft sustainability plan for supporting the Agro-Job career center activities. The plan consists of introducing a voluntary membership model for agribusiness companies. In general, managers of the agribusiness companies did not object to supporting a portion of placement costs for young agriculture graduates, however they would like to see the results from the first-round of placements before deciding how they will support such KAEC activities in the future. PLANNED FOR THE NEXT QUARTER - Discuss the financial self-sustainability plan with different stakeholders RESULTS THIS QUARTER
Number Short Name of the Indicator FY2017Q1Actual FY2017Q2 Actual FY2017Q3 Actual Young graduate’s placement 11 R1.1 Trainings 109 R1.4 AgroJobs Student visits 44 AgroJobs Web average 1457 R1.5 visits/month
2.3 ENVIRONMENTAL COMPLIANCE
Activity #SS3110: National Action Plan on Sustainable Use of Pesticides (Plant Protection Products) ACTIVITY PROGRESS AGRO approached the MAFRD Plant Protection Department, seeking to provide support in initiating the National Action Plan (NAP) for Sustainable Use of Pesticides (SUP), which is one of the EU requirements. Although the program is ready to assist on developing the draft, it is not considered a priority at this time for this department. Due to delays in Parliament, there are a number of legislative documents from 2016 still in process which are going to be prioritized in 2017. AGRO will continue to provide training according to its Action Plan for Safe Use of Pesticides (PERSUAP). Trainings will be organized within the framework of GlobalGAP applications. The national action plan will also certainly be put on hold as the new government is formed and rethinks its legislative agenda. Activity #SS3111: Training on Sustainable Use of Pesticides and GlobalGAP requirements The program concluded the necessary preparations for conducting the first round of trainings on Sustainable Use of Pesticides for GlobalGAP requirements for 500 farmers cultivating raspberry in the Podujeva region. The first three one-day trainings were conducted during February where more than 500 farmers participated. In addition to the information on GlobalGAP requirements, participants were also informed about personal safety when using plant protection products, the impact on the environment, bee protection, proper collection and disposal of pesticide containers, rinseate and packaging, etc. The Municipality of Podujevo provided the venue for the trainings. The interest of farmers was high and information leaflets were produced to deliver to these farmers who participated in the trainings. Activity stakeholders such as the MAFRD, municipal officials and agricultural input dealers were invited to be part of the training. Bujku TV show was present to record the highlights of the training which were broadcast on the 26th February on the local TV station RTK.
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AGRO technical team facilitating training sessions Additional activities AGRO intensified cooperation with the Kosovo Association for Import and Trade of Agricultural Inputs to define environmental compliance interventions appropriate for the association. This association has potential to advise and provide information on the safe use of pesticides for professionals and end-users. In this case, AGRO will provide to input dealers a dedicated training of trainers’ program and will support the dissemination of materials on Safe Pesticide Use and Environmental Protection. The association took the lead in promoting a Conference on Environmental Protection and Safe Pesticide Use on April 7th. During Q3, several meetings were held with representatives of the Association for Import and Trade of Agricultural Inputs. First, there was a need to re-organize the structure of the association. The program facilitated the holding of a new electoral assembly held on May 30th, with the representatives of the biggest importers and traders of agricultural inputs, and the main purpose of electing a new president and board. Crucial to this meeting and the election of the new board of directors was the decision to formally register the association according to the statutes of Kosovo, rather than remaining as a loose group affiliated with the Kosovo Chamber of Commerce. The annual goal of the board was also identified - to begin the training of agriculture pharmacies on topics of safe use of Agro inputs and to move to an accreditation process for members of the association.
The input dealers association during the pre-conference meeting (left) and meeting for the new electoral assembly (right) PLANNED FOR THE NEXT QUARTER - Continue collaboration with the Kosovo Association for Import and Trade of Agricultural Inputs to strengthen their organizational structure and plan future joint activities centered on the training of member distributers.
64 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT Activity #SS3112: Conference on Environmental Protection and Sustainable Use of Pesticides Preparations for a one-day conference were initiated during Q2, aiming to raise awareness about plant protection products in Kosovo. The stakeholders were identified to present and discuss the status and progress made in the regulation of pesticides registration and use in Kosovo, the region and the EU, advances in guidance and assessment methodologies, and new challenges and emerging trends related to environmental compliance and the safe use of pesticides. To raise its profile, it was agreed that the conference would be organized jointly with the Kosovo Association for Import and Trade of Agricultural Inputs and AGRO. The conference was held on April. 7th, gathering more than 80 participants from different institutions, ag- input dealers, ministries, universities, laboratories, municipal advisers, donors, and other participants. They addressed challenges and approaches for reducing risks, increasing environmental protection and human health, by discussing various topics on the use, trade of, pertinent legislation and inspection of agricultural crop protection products as well as next steps for the sector. Guest speaker, Mr. Les Hillowitz from the international organization CropLife, presented his expertise and best practices on the concept of Spray Service Providers with an emphasis on Sustainable Use of Pesticides. This was seen as a good opportunity for input dealers to network and benefit from the expertise and experience of the CropLife International organization. CropLife International had agreed that 9 industry posters could be used for AGRO’s needs for trainings with farmers. These posters were translated into Albanian and printed. The first 500 copies have been delivered as training materials to the first group of farmers trained for GlobalGAP in Podujevo. This is the first conference of its kind in Kosovo, providing an important channel for exchange of information between stakeholders.
In the picture (left) Mr. Les Hillowitz from CropLife during his presentation and (right) the ECIS of USAID/AGRO presenting the role of the program in the pesticide sector and required next steps
2.3.1 ENVIRONMENTAL COMPLIANCE FOR IIF ACTIVITIES During Q1-Q3, AGRO carried out environmental compliance activities to confirm adherence to environmental standards by new project initiatives and monitored progress with established investments. All new grant/subcontract proposals were screened for potential environmental impact. Environmental reviews and their determinations conducted during Q3 are as follows:
Negative Organization/ Categorical No Determination Project name Company Exclusion with Conditions Grant for expansion of mallow cultivation and 1 Agroshqiponja X increase of drying capacities for MAPs CVE grant strengthen of the raspberry value 2 Agrium Fruit X chain through employment of youth X CVE grant on enhancement of strawberry 3 Besiana-G production and collection capacities
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 65 Negative Organization/ Categorical No Determination Project name Company Exclusion with Conditions X CVE grant for empowerment of agroforestry 4 LAB sector in Hani i Elezit X Establishing cold storage facility for 5 Santefruit blueberries X 6 Agroshla-AG Establishing a drying facility for pumpkin seeds ACTIVITIES PLANNED FOR THE NEXT QUARTER ‒ Update the project PERSUAP ‒ Conduct environmental compliance checklists on grant proposals and monitor the implementation of environmental mitigation measures.
2.4 GENDER, YOUTH, CVE AND MINORITY INTEGRATION
OBJECTIVE 1: IMPROVED FARM PRODUCTION AND FOOD PROCESSING
Activity #SS3116: Identify and Empower at least 5 (five) women groups ACTIVITY PROGRESS The program worked on identifying new women’s groups working in the agriculture sector. AGRO staff has identifies Agroshiponja company in Terpeze village in Malisheva, working with MAPs. Mrs. Krasniqi, who co-owns the company with her husband, is interested to expand the business and engage women’s groups from Drenas and Suhareka and widows from Lipjan, in promoting cultivation of Black Mallow on small plots. The Bio Fruti company in Kacanik is owned by Ms. Zarije Malsiu who states that during the 2016 season, the volume of the collected MAPs by the women’s association from Kacanik and Ferizaj, was higher than the installed capacity of her operation. Both, Bio Fruti and Agroshqiponja have as a final market, Agroproduct ShPK in Istog. During Q2, AGRO awarded a grant to Agroshqiponja through the IIF mechanism and is in the process of rewiring the Bio Fruti application for support.
Women farmers harvesting black marshmallow at the project sites in Lipjan and in Malisheva During Q3 drip irrigation is installed for 40 women farmers cultivating MAPs: The activities to increase the micro-MAP production amongst women and minority groups and associations are developing intensively. After the supply of black marshmallow seedlings from Agroshqiponja the activities to supply 50 plots with drip irrigation systems in 7 municipalities was successfully implemented. The high flower yielding variety along with good management good agricultural techniques is expected to greatly enhance productivity. In addition, a new dryer will be installed at this collection center during Q4.
66 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT wo Supporting the women assosiation in gherkin cultivation - AGRO intensified cooperation with women’s association Baja in the village Bajice/Kacanik, interested in gherkin cultivation. Last year, AGRO supported this group of women with gherkin seeds, and this spring, AGRO support the association to cultivate gherkins on a total area of 1 ha, at 5 women farmers’ plots measuring 0.2 ha each with new trellising technology. During this quarter, USAID/AGRO staff organized the delivery of seeds, trellising nets and a drip irrigation system for 1 hectare of gherkin cultivation for five member the Association Baja farmer Xhejlane Rexhepi, siging upon association. The program will monitor and provide on- the receipt of gherkin seeds and equipment going technical assistance for further implementation of this project. Asparagus grower, Ms. Shadije Asllani, in Gjilan, harvested her first asparagus fruits in small quantities this spring. Her two-year-old asparagus field is expected to be in full production next spring, during the third year of planting. This first asparagus harvest is being used for promotion and tasting events in the Gjilan region where asparagus has never been cultivated. Her success was documented and shown on TV on the 21st and 22nd of May.
Ms. Shadije Asllani, harvesting her first asparagus crop in Gjilan (left), and featured on TV in May (right).
The program continued to support two women farmers’ cultivating strawberry for processing that has been supported with drip irrigation system. This technical assistance was provided through strategic partner Fresh Fruit PR from Lipjan who has contracted with the two women to purchase their products for freezing destined to export markets. AGRO signed a grant for supporting the strawberry sector – During Q3, USAID/AGRO gave another boost to the strawberry sector by signing a grant with Besiana-G Collection Center. The company will receive a strawberry washing and sorting line, and is in charge of distributing strawberry runners to 35 farmers in the municipalities of Ferizaj and Viti. This initiative will be done on a cost share basis with the two municipalities. USAID will support drip irrigation systems for 10 farmers in Viti and 25 farmers in Ms Andrijevic, at her newly established Ferizaj. About 7 hectares of strawberry orchards will be strawberry farm in Gushterica/Gracanica established by this initiative in the rural areas of Ferizaj and Viti, where 35 disadvantaged youth will work in contracted cultivation of strawberries in their 0.2 hectare individual plots.
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 67 Promotion at AGROKOS fair - AGRO in cooperation with the Kosovo Women’s Chamber of Commerce - G7, enabled three women groups to participate for the first time in the national fair AGROKOS 2016 (held from 20-22 October). NP Blerta, Begatite e Batllaves and Gryka e Kacanikut presented their fresh and preserved soft fruits (strawberries and raspberries) vegetables (pepper and gherkins) and dried MAPs (black mallow, wild strawberries and different herbs). They also had an opportunity to attend the sessions for pepper production and soft fruit production during the fair. This fair was a good opportunity for these groups, helping them to promote their businesses and create new contacts with The owner of Besiana-G, Ms. Feride Aliu, (middle) buyers, producers and other women groups. during grant signing ceremony. Women’s Day event – On March 10th, six women strategic partners of AGRO participated in an event organized by USAID for women in business. These women, who run their own business in the production and processing of agricultural products (raspberry, strawberry, asparagus, saffron, lettuce, milk), had a chance to meet with other successful women in business engaged in sectors including agriculture, textile, confectionery, education, architecture, and others. Each of them (pictured at right) had a different story to tell regarding the struggles and challenges that they have faced and overcome, and the support they have received from USAID to reach where they are today. Ambassador Delawie meeting with women-owned Stories and pictures of AGRO’s lead women farmers agribusiness leaders Blerta Restelica, Xhylije Statovci, Kaltrina Berisha and
Fahrije Recica, were posted on USAID’s Facebook page, hig hlighting her successes in agriculture. AGRO Cooperation with other stakeholders - AGRO continues to cooperate with USAID/PRP participating in the Gender Coordination Group’s bimonthly meetings with representatives from civil society, government and donor agencies, that are tasked with developing activities that will help strengthen legislation and court procedures to better protect women’s property rights; change cultural attitudes and behaviors about women’s property rights; and promote opportunities to engage as economic actors. PLANNED FOR THE NEXT QUARTER - Continue to identify women’s groups in need of basic business planning, business management, marketing skills, networking, access to finance and fund raising - Encourage women’s groups working with new technologies. It is anticipated that AGRO will support at least 2 women’s groups with grants from the IIF and link them to Strategic Partners in targeted program VCs. RESULTS THIS QUARTER
Number Short Name of the Indicator FY17 Q1 Actual FY17 Q2 Actual FY17 Q3 Actual R1.1 Trainings (women) 53 274 64 R1.1 Trainings (minorities) - 2 15 R1.1 Trainings (youth) - 1012 308
68 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 3.0 PERFORMANCE MONITORING PLAN (PMP)
3.1 AGRO DASHBOARD Based on the project PMP plan, AGRO is finalizing its dashboard system which will be publicized on the main AGRO web page. Through the dashboard, AGRO will be able to provide a summary of results for major indicators, such as jobs created, sales generated and/or other indicators important to show activity progress. AGRO will use a system called klipfolio to generate dashboards. The system will be updated regularly, allowing AGRO to share the most updated results with stakeholders and customers. Screenshots from the current dashboard under development is illustrated below, highlighting results to date for some of the indicators that change based on quarterly data.
3.1.1 SALES PERFORMANCE
3.1.2 NUMBER OF INDIVIDUALS TRAINED INDICATOR PERFORMANCE:
3.1.3 HECTARES UNDER IMPROVED TECHNOLOGIES
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 69 3.2 GPS LOCATION OF CROPS In FY2016, AGRO initiated a process of recording of GPS coordinates of all crop areas with which the activity is working. The database provides basic information about the demographics of the crops, such as name of farmer, place, variety, area of fields and year of planting. The location coordinates are stored, and then our “Carto dB’’ system is used to generate relevant maps. To date, AGRO has mapped a total of 2,588 plots covering 1,592 Ha under different crops including: Apples, Raspberries, Pumpkins, and Blueberries, Table Grapes and Strawberry. During Q3, AGRO concluded the registration of raspberry plots in North Kosovo’s Leposovic municipality resulting in [249] plots and [48] HA under crop. The fact that the growers and municipal officials were willing to allow this detailed survey is encouraging.
3.3 PMP RESULTS The following paragraphs provide information and results for FY17Q3. Indicators that have a zero result and indicators that are annually reported are omitted from the presentation in this narrative part of the report. In the table of results and in the annex, the latest (due) data on quarterly reporting indicators are presented regardless of the specific reporting periodicity of the data. R1.1: Number of individuals who have received USG-supported short-term agricultural sector productivity or food security training Definition of the indicator: The number of individuals to whom significant knowledge or skills have been imparted through interactions that are intentional, structured, and purposed for imparting knowledge or skills should be counted. Disaggregated by: Sex, ethnicity, type of training and, where applicable, targeted value chain Data Source: Participant List Quarterly Results: In FY17Q3, [475] people participated in AGRO assisted/organized trainings and open field days. Table below provides a summary of results by value chain. As can be noted [308 or 65%] of participants in training were youth showing increasing interest in learning new growing technologies and management practices. TABLE 3.1: NUMBER OF PEOPLE TRAINED IN Q3 BY VALUE CHAIN, GENDER, MINORITIES AND YOUTH Value Chain Men Women Minorities Youth Total Agricultural Support Services 54 24 4 57 78 Apples 10 0 1 3 10 Blueberries 20 0 2 13 20 Dairy 83 9 2 92 92 Gherkins 23 0 1 5 23 Raspberries 151 9 5 98 160 Sour-Cherries 70 22 1 43 92 Grand Total 411 64 15 308 475 % of total 87% 13% 3% 65% 100%
70 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT
R1.3: Number of hectares under improved technologies and/ or management practices Definition of the indicator: This indicator measures the area (in hectares) of land cultivated using USG- promoted improved technology(ies) or management practice(s) during the current reporting year. Disaggregated by: Value Chain Data Source: SPs and AGRO staff working Quarterly Results: In total, [751] HA have been planted under improved technologies during Q3. Results include 730 Ha of pumpkins as reported in the Innovative Crops section of this report. GPS recording of field areas, developed by AGRO is being used to validate every HA reported for this indicator. Results for pumpkins will be validated and any changes in numbers will be reflected in the 2017 annual report. TABLE 3.2: HA UNDER IMPROVED TECHNOLOGY Value Chain No of HA Blueberries 2 Raspberries 5 Innovative crops (Pumpkins) 737 Table Grapes 7 Total 751
R1.4: Number of unique visits from youth using Agrojob Center Definition of the indicator: This indicator tracks unique visitors to the center that come seeking information on general career and employment options within agriculture sector. Disaggregated by: Sex and ethnic group Data Source: Agro-Job center sign in book Quarterly Results: During Q3, in total [44] students visited AgroJob Center, of which, 21 were men, and 23 women. R1.5: Average hits per month to the web-based agricultural job identification services Definition of the indicator: Tracks number of times the agricultural job identification services web site is visited Disaggregated by: None Data Source: Agro Job Center web site Quarterly Results: During Q3, in total 4,372 visits were made to the Agro Job center web site to find information about job opportunities in the agricultural sector. This indicator tracks average visits per month, giving the quarterly result [1457]. R1.6: Number of firms receiving USG assistance to invest in improved technologies Definition of the indicator: This indicator refers to agribusinesses, production firms, collection centers and processing firms to which the Activity has provided trainings, technical support, and/or IIF funding to improve or upgrade their operations and which have invested in improved technologies Disaggregated by: Type of firm and type of technology implemented
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 71 Data Source: IIF grants office Quarterly Results: In total [6] firms have adopted new technologies and management practices during the Q3 reporting period. These firms are summarized in the table below: TABLE 3.3: NUMBER OF COMPANIES ADDOPTING NEW TECHNOLOGIES Company Type of company Value Chain Technology Implemented Agroshala AG Producer Pumpkin Production Technology JEGE Processor Cross Cutting Processing Tech Agrium Fruits Collection Center Raspberries Post-Harvest Technologies Laboratory for Business Activities Laboratory Cross Cutting Production Technologies Sante Fruit Producer Blueberries Production Technologies Agroshqiponja Producer MAP Production Technologies
R2.1: Value of domestic and export sales of supported value chains Definition of the indicator: This indicator will track and report data from AGRO SPs and other customers on the value of sales of program-targeted products as a direct or indirect result of support they have received from the Activity Disaggregated by: Value Chain and type of market Data Source: AGRO SPs and other customers Quarterly Results: Total value of sales recorded in Q3, (April-June 2017) is [$4,931,387]. The table below summarizes sales by value chain with domestic and export sales separated.
Value Chain Domestic Export Total Sales Asparagus $41,405 $2,758 $44,163 Blueberries $39,066 $39,066 Chamomile $5,074 $5,074 Dairy $194,147 $194,147 Gherkins $800,087 $5,175 $ 805,262 Lettuce $66,527 $66,527 MAP $116,567 $1,931,208 $2,047,775 Peppers $613,506 $156,710 $770,216 Raspberries $585,928 $585,928 Sour Cherries $155,460 $155,460 Strawberries $124,469 $82,728 $207,197 Tomatoes $10,573 $10,573 Total $1,967,281 $2,964,106 $4,931,387
DOMESTIC SALES: Of total sales, 39% or [$1,967,281] were domestic sales. The table below details domestic sales by value chain and type of the market. TABLE 3.4: VALUE OF DOMESTIC SALES BY VALUE CHAIN AND TYPE OF MARKET Value Chain Processor Retail Restaurants Supermarket Trader Total Asparagus $3,907 $17,414 $20,085 $41,405 Blueberries Chamomile Dairy $194,147 $194,147 Gherkins $286,733 $131,328 $382,025 $800,087 Lettuce $ 6,894 $24,617 $35,016 $66,527
72 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT Value Chain Processor Retail Restaurants Supermarket Trader Total MAP $17,300 $99,267 $116,567 Peppers $609,453 $4,054 $613,506 Raspberries Sour-Cherries Strawberries $71,339 $3,130 $124,469 Tomatoes $10,573 $10,573 Total $314,607 $1,010,173 $24,308 $44,702 $573,491 $1,967,281
EXPORT SALES: As for the previous quarter, Q3 export sales continue to dominate with 61% of total sales, with MAP being the leader for this quarter. Total value of export sales recorded during the reporting period is [$2,964,106]. The table below provides export sales by country: TABLE 3.5: EXPORT SALES BY VALUE CHAIN AND DESTINATION COUNTRY Value Chain Austria Germany Holland Italy Swiss Other EU Region Subtotal Asparagus $2,758 $2,758 Blueberries $39,066 $39,066 Chamomile $5,074 $5,074 Gherkins $5,175 $5,175 MAP $73,565 $398,292 $156,094 $443,230 $210,324 $28,335 $621,368 $1,931,208 Peppers $88,159 $68,550 $156,710 Raspberries $540,255 $45,673 $585,928 Sour-Cherries $155,460 $155,460 Strawberries $82,728 $82,728 Total $117,705 $1,094,006 $156,094 $443,230 $210,324 $250,071 $692,676 $2,964,106
R2.4: Number of supply contracts between producers and strategic partners Definition of the indicator: This indicator will track all supply contracts as defined in the key terminology section above. For this indicator, the Activity will only track contracts that were signed between Activity strategic partners and their contracted partners Disaggregated by: Type of market and value chain Data Source: AGRO SP’s and farmers signing contracts Quarterly Results: During Q3 a total of [591] supply contracts were signed. This number includes contracts between producers and collection centers, and/or processors, supermarkets. The table below summarizes results for Q3 by value chain and number of contracts. This significant result for this quarter will be reflected in the overall sales performance during annual 2017 report. TABLE 3.6: NUMBER OF SUPPLY CONTRACTS Value Chain No Contracts Gherkins 54 MAP 216 Peppers 168 Pumpkins 48 Raspberries 6 Sour-Cherries 54 Strawberries 8 Tomatoes 37 Grand Total 591
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 73 R2.5: Number of strategic partners issuing supply contracts Definition of the indicator: This indicator will track the number of Activity strategic partners who are issuing supply contracts regarding Activity supported products Disaggregated by: Type of SP’s and value chain Data Source: SP records of contracts Quarterly Results: In total [9] Strategic Partners/Companies have issued supply contracts with producers who will be supplying products supported by AGRO. The list of companies and value chains is summarized in the table below. TABLE 3.7 STRATEGIC PARTNERS ISSUING SUPPLY CONTRACTS Strategic Partner Value Chain Abi Elif Peppers Agro Celina Tomatoes Agro Produkt SHPK MAP Association Mjedra e Llapit Raspberries Eurotaç Tomatoes Fresh-Fruit PR Raspberries Kalabria Sour-Cherries Produkte Natyrale të Kosoves Pumpkins Shala-Produkt/Eurotac Gherkins
R2.6: Value of sales because of supply contracts established between producers Definition of the indicator: This indicator will track the value of sales generated from contracts between Activity strategic partners and producers. Contractual parties will mainly include producers, collection centers, ware houses and processors Disaggregated by: Value chain and by the type of SP Data Source: SP’s/Farmers working with AGRO activity who sign supply contracts Quarterly Results: [$938,610] is the value of sales generated from contracts during Q3. Refer to the table below for a summary of sales by value chain, as a result of supply contracts. Note: a number of contracted value chains are yet to be harvested and additional data will be reported in Q4. TABLE 3.8: VALUE OF SALES AS RESULT OF SUPPLY CONTRACTS Value Chain Value of sales Gherkins $415,090 Peppers $366,949 Chamomile $5,074 MAP $68,769 Strawberries $82,728 Total $938,610
R2.7: Number of SPs organizing B2B and other market investigation events and trade shows Definition of the indicator: This indicator will measure the number of strategic partners that take the initiative to organize and either fully or substantially finance B2B or market investigation events. If co- financing the B2B event, the SP must cover at least 25% of the costs to be counted. Disaggregated by: Type of SP
74 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT Data Source: SP’s records of events backed with copies/photos of participant list or event Quarterly Results: During FY17Q3 [1] company, The Kosovo Raspberry Association, organized a B2B with their farmers and other stakeholders. R2.8: Number of people attending strategic B2B and market investigation events and trade shows organized by or in collaboration with SPs Definition of the indicator: This indicator counts the number of people attending events described in indicator R2.7 above. Disaggregated by: Sex and ethnicity and type of event Data Source: AGRO and/or SP’s records of events Quarterly Results: During Q3, in total [25] people participated in B2B’s organized by or with assistance from the AGRO project. The table below provides B2Bs by value chain, and participants by gender, minority and youth. TABLE 3.9: PEOPLE PARTICIPATING IN B2B’ Value Chain Men Women Minorities Youth AGE group <35 Total Participant Apples 10 0 1 3 10 Blueberries 5 0 1 3 5 Raspberries 10 0 1 5 10 Grand Total 25 0 3 11 25
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 75 4.0 IIF GRANTS AND SUBCONTRACTS REPORT
4.1 GRANTS
4.1.1 ACTIVITY PROGRESS The Agriculture Growth and Rural Opportunities (AGRO) Activity published its second Annual Program Statement (APS) in September 2016 which will end on August 31st 2017. During the period from April 1st until June 30th, AGRO received 7 new Concept Notes for which AGRO organized Review and Evaluation Committees. Those that submitted Concept Notes which received positive evaluations were asked to present their full applications. The grants team visited the successful grant applicants and conducted Simplified Pre-Award Surveys (SPAS) depending on the type of grant agreements to be used. Negotiation memoranda were prepared for six Fixed Amount Award (FAA) Grants, another four FAAs and six In-Kinds are under preparation. During these visits, beside usual discussions and negotiations, the element of reporting back to AGRO Activity has been among the most important discussions. On-site trainings were held in which reporting and procurement tools were explained in detail to grants beneficiaries representing the SPs through which the Activity is also working to increase Strategic Partners capacities to absorb and properly manage funds. The Agriculture Growth and Rural Opportunities (AGRO) Activity during the reporting period signed seven new grant agreements, as follows: May 5, 2017 – AGRO program signed two grants in the fruit & vegetable sector, and the medicinal & aromatic plants (MAP) sector. Jege Shpk, a vegetable and fruit processing company from Prizren will receive on cost-share basis, new technologies in processing - fruit/vegetable cleaning machine, pepper stem removing machine, pepper slicing machine, pasteurizer, electric forklift, etc. This is a company founded in 2014 with a concentrated production in ajvar, pickled vegetables (gherkins, various peppers and green tomatoes), and fermented cabbage leaves. Currently most of the vegetable processing activities are done manually and take more time, but with the new technology in processing, handling and packing of products, JEGE will mechanize production processes and achieve increased production to meet growing market demand. At the same time, USAID/AGRO will support company Agro Shqiponja with a dryer and pre-drying frames, seedlings, drip irrigation system and black mulch. This cost share initiative will help expand the black marshmallow cultivation business in the municipalities of Malishevë, Drenas, Suharekë and Lipjan, by engaging 40 women farmers to work on 2 hectares of plantations (each on their 0.5 ha plots). Agro Shqiponja will supply the women farmers with all the necessary inputs, will provide technical guidance and, upon harvest, will buy all their produce. May 19, 2017 – AGRO program gave another boost to the strawberry and raspberry sectors by signing two more grants. Raspberry Collection Center Besiana-G will receive a strawberry washing and sorting line, and will be in charge of distributing 350,000 strawberry runners to 35 farmers in the municipalities of Vitia and Ferizaj. This initiative with the farmers will be done on a cost share basis with the two municipalities. USAID/AGRO will also provide drip irrigation systems for 10 farmers in Vitia and 25 farmers in Ferizaj. About 7 hectares of strawberry orchards will be established by this initiative in the rural areas of Ferizaj and Vitia, where 35 disadvantaged youth will work in contracted cultivation of strawberries in their 0.2 hectare individual plots. In the last three years, the raspberry growing business has marked a tremendous increase throughout Kosovo. Agrium Fruits, a company dealing with collection, sorting and exporting of mainly raspberries, will help establish 14 hectares with raspberry fields in the rural areas of Ferizaj, Kaçanik
76 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT and Vitia, where 55 disadvantaged youth from these areas will work in contracted cultivation of raspberries in their individual plots. These farmers will be provided with 140,000 raspberry canes and with drip irrigation systems for their parcels. The implementation of this grant will be a collaborative effort between USAID, Agrium Fruits and the municipalities of Ferizaj, Kaçanik and Vitia, over a period of 12 months. June 20, 2017 –AGRO program signed three more grants giving a boost to three very promising agriculture sectors, respectively; through LAB NGO, extensive support will be provided to 15 young farmers of Hani i Elezit municipality, for the establishment of 4 new greenhouses with 500 m² for vegetable production, 8 orchards with 0.2 ha for growing raspberries and strawberries, and 3 plantations for growing medical and aromatic plants (MAPs) including 3 natural drying tunnels with 30 m² for drying of harvested MAPs. Santefruit, a company dealing with production of blueberries and raspberries will be supported in establishing a 100 m² precooling unit, expansion of cultivation with additional 5 hectares of blueberries and hiring of two agronomists to support the field staff and properly manage their orchards. The company Agroshala – AG, in cooperation with nine other farmers from three neighboring municipalities, namely Ferizaj, Vitia and Shtime, has planted 300 ha with pumpkin for seed in 2017. Considering the large acreage planted with pumpkin and the value that is added to the product by postharvest processing, the grantee plans to establish a collection and processing center for which USAID AGRO will provide the relevant machinery for processing of the pumpkin seeds and preparing them for the export market. A listing of all grants to date, the name of the grantee, the amount of the grant, the purpose of the grant and its status is presented in the table below.
Grant Project No. Grantee Grant Short Description Status Amount Total Cost Produkte Production, drying and packaging 1 Natyrale nga € 70,553 € 112,446 Completed of pumpkin seeds Kosova 2 NT “Blerta” Strawberry production € 6,000 € 8,240 Completed “Sevdaim Bislimi 3 Strawberry plantation € 6,000 € 9,115 Completed BI” Extension of the cultivation of medicinal and aromatic plants and AGROPRODUC 4 increase dryer capacity in € 93,100 € 268,680 Ongoing T Sh.P.K. Mitrovica, Vushtrri, Malisheva, Ferizaj and Istog Cultivation of blueberries - Dutch 5 Boost Berries € 50,000 € 131,000 Completed model Collection center including 6 “AMA” calibration, packing of fruits and € 93,218 € 234,786 Completed vegetables EUROFOOD Line for filling with marinated and 7 € 63,700 € 152,220 Ongoing SH.P.K. pasteurized vegetables Increase of production and Agroprodukt improvement of infrastructure 8 Commerce regarding production, processing € 90,200 € 196,800 Suspended (APC) and collection of raspberries in Podujeva “Gazmend 9 Strawberry cultivation € 6,000 € 9,075 Completed Gjinovci BI”
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 77 Grant Project No. Grantee Grant Short Description Status Amount Total Cost NTSH 10 Strawberry cultivation € 6,000 € 8,820 Completed “Gjelbrimi” Collection center for raspberry 11 Agro Red Gold € 62,450 € 135,650 Completed “Zhupa” Increasing drying capacities of Boronica e 12 medicinal and aromatic plants for € 30,000 € 40,300 Completed Sharrit women association Improvement of infrastructure and increase of operational capacities 13 EUROTAÇ € 35,310 € 69,860 Ongoing of Collection center and efficiency of irrigation system MIX PRODUCT 14 Increasing production capacities € € Terminated shpk Establishment of center of 15 Agmia-Fruits excellence for stone fruits in € 28,800 € 56,630 Ongoing Gjilani region 16 KAEC Professional Placement Program € 40,300 € 53,770 Ongoing Increase production of red pepper Ananas-Impex 17 (paprika) with raw material € 44,100 € 95,300 Ongoing Sh.P.K produced in Kosovo Extension and improvement of 18 Eurofruti Sh.P.K € 86,700 € 255,650 Ongoing Collection Center capacities Advancing new techniques and 19 Agro Celina € 21,900 € 45,950 Ongoing pepper cultivation technologies Increase of production capacities and improvement of safety and 20 ASK Foods € 31,500 € 186,350 Ongoing quality of the processed vegetables and fruits Increasing capacities of milk 21 SHF “Megi” € 7,845 € 9,945 Completed collection center 22 “Isa Berisha BI” Strawberry production € 6,000 € 8,365 Completed Improvement of vegetable 23 Abi & Elif19 cultivation and processing € 50,050 € 99,900 Ongoing technology Functionalization of soft fruits 24 Fresh Fruit-PR collection center in Lipjan and € 41,000 € 284,600 Ongoing support to raspberry growers Introduction of new vegetable 25 Etlinger processing technology-processed € 57,100 € 133,672 Ongoing vegetables packed in vacuum bags Improvement of the infrastructure 26 UVB Bllagajë € 13,245 € 21,395 Ongoing of UVB association 27 Fitimi Sh.P.K. Increase production capacities € 26,950 € 53,760 Ongoing Improvement of the infrastructure 28 Agro Peti N.T.P. and capacity extension at € 26,300 € 55,800 Completed Collection and Processing Center Application of new technologies in 29 Albini ShPK € 15,025 € 40,805 Completed growing pepper in Podujeva Begatitë e Extension of raspberry plantation 30 € 10,900 € 38,300 Completed Batllavës in Batllava village
78 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT Grant Project No. Grantee Grant Short Description Status Amount Total Cost Modernization of collection center 31 Besiana-G and value increase of collected € 45,230 € 138,580 Ongoing fruits Empowerment of National Mjedra e 32 Raspberry Association ‘Mjedra e € 89,243 € 100,003 Ongoing Kosoves Kosoves’ Enhance capacities of the association ORGANIKA for 33 Organika € 82,561 € 92,561 Ongoing improving lobbying and marketing activities The Support to Development of 34 PePeKo PePeKo – Kosovo Fruit and € 86,095 € 97,160 Ongoing Vegetable Processors Association 35 B farm Innovative irrigation system € 50,122 € 125,847 Ongoing 36 Sante Fruit Depositing berries € 46,389 € 99,521 Ongoing Purchase of a dryer for aromatic 37 Agroshqiponja plants and expansion of areas with € 41,542 € 83,085 Ongoing aromatic plants Increase of the processing 38 JEGE € 38,500 € 77,000 Ongoing capacities at JEGE company Pumpkin seed production and 39 Agroshala AG € 42,316 € 83,817 Ongoing post-harvest handling Enhancement of strawberry 40 Besiana G € 79,935 € 134,935 Ongoing production and collection Enhancement of raspberry 41 Agrium Fruits € 68,120 € 156,920 Ongoing production and collection Laboratory for Empower Lab project and start- 42 Business ups growth in agroforestry sector € 81,526 € 92,700 Ongoing Activities LAB in Hani i Elezit € 1,871,825 € 4,099,313 Total $ 2,054,658 $ 4,148,399
4.2 SUBCONTRACTS
4.2.1 ACTIVITY PROGRESS During the reporting period AGRO Activity did not publish any new Requests for Proposals (RFP). IIF subcontracts implemented to date are detailed in the below table.
Sub-contract No. Contractor Title of Activity Status Value 1 MDA Promotional campaign for pasteurized milk € 88,610 Ongoing Planting of new areas under Sour Cherry in Eastern 2 Calabria ShPK €129,498 Finished Kosovo € 218,107 Total $ 238,830
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 79 ANNEX I
PMP PEFORMANCE INDICTOR TABLE 2017 FY2017 FY2017 FY2017 Q2 FY2017 Q3 Performance Indicator Name Performance Target Q1 Results Results Results to date R 1.1: Number of individuals who have received USG-supported short-term 3000 478 1482 475 81% agricultural sector productivity or food security training R 1.3: Number of hectares under improved technologies and/ or 1500 549 180 744 99% management practices R 1.4: Number of unique visits from 200 53 69 44 83% youth using the AgroJobs Center R 1.5: Average hits per month to the web-based agricultural job 1500 - - 1457 97% identification services R 1.6: Number of firms receiving USG assistance to invest in improved 30 - 6 6 40% technologies R 2.1: Value of domestic and export $25.8M $2,803,426 $5,150,638 $4,931,387 50% sales of supported value chains R2.2: Number of new linkages with domestic supermarkets through long- 5 - - term contract agreements R 2.3: Number of new regional and international market opportunities 10 - 7 - 70% captured R 2.4: Number of supply contracts between producers and strategic 600 47 145 591 130% partners R 2.5: Number of strategic partners 30 3 3 9 50% issuing supply contracts R 2.6: Value sales as result of supply contracts established between $5M $1,748,014 $1,373,754 $938,610 81% producers and SPs R 2.7: Number of SPs organizing B2B and other market investigation events 20 1 1 1 15% and trade shows R 2.8: Number of people attending strategic B2B and market investigation 720 57 70 25 21% events and trade shows organized by or in collaboration with SPs
80 KOSOVO AGRO: FY17Q3 QUARTERLY REPORT ANNEX II
KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 81
U.S. Agency for International Development Kosovo Arberia (Dragodan) Ismail Qemali St., No.1 Pristina, Kosovo, 10130 Tel: ++ 381 (0)38 59 59 2000 Fax: ++ 381 (0)38 249 493 www.usaid.gov/kosovo KOSOVO AGRO: FY17Q3 QUARTERLY REPORT 1