Agricultural Value Chains (Avc)

AGRICULTURAL VALUE CHAINS (AVC)

ACTIVITY

FY 2016 – QUARTER 2 - REPORT

JANUARY – MARCH 2016

APRIL 2016

This publication was produced for review by the United States Agency for International Development. It was prepared by DAI.

AGRICULTURAL VALUE CHAINES

(AVC)

FY 2016 - QUARTER 2 - REPORT

JANUARY – MARCH 2016

Agricultural Value Chains (AVC) - Uzbekistan #104-A Kichik Beshog’o ch Street Tashkent, Uzbekistan 100025

For the U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT

Contract No. AID-176-C-15-00001

30 April 2016

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. ACRONYMS

20/20DC 20/20 Development Company AA Acquisitions and Assistance ALP Agricultural Linkages Project Plus (2011-15) (USAID) AMEP Activity Monitoring and Evaluation Plan AVC Agricultural Value Chains Activity (2015-18) (USAID) AWE Association of Women Entrepreneurs (Uzbekistan) BAFO Best and Final Offer BI Biodiversity International (part of CGIAR system) CAR Central Asian Republics CCN Cooperating Country National CE Categorical Exclusion CGB Center for Genomics and Bioinformatics CGIAR Consultative Group for International Agricultural Research CO Contracting Officer COP Chief of Party COR Contracting Officer Representative EC European Commission EPF Small Business and Private Entrepreneurship Export Promotion Fund (Uzbekistan) EU European Union FAS Field Accounting System F&V Fruit and Vegetable FY Fiscal Year GAP Good Agricultural Practices GCCA Global Cold Chain Alliance GIS Geographic Information System GIZ Deutsche Gesellschaft fur Internationale Zusammenarbeit GOU Government of Uzbekistan ha Hectare HACCP Hazard Analysis and Critical Control Points HPLC High Performance Liquid Chromatograph ICARDA International Center for Agricultural Research in the Dry Areas (part of CGIAR system) ICT Information and Communication Technology IFAD International Fund for Agricultural Development IFC International Finance Corporation INIBAP International Network for the Improvement of Bananas and Plantains (part of BI) IPRGI International Plant Genetic Resources Institute (part of BI) IR Intermediate Result ISO International Standards Organization IEE Initial Environmental Examination IT Information Technology JICA Japan International Development Agency KAC Korean Air Cargo KAL Korean Airlines KOICA Korean International Cooperation Agency MAWR Ministry of Agriculture and Water Resources (Uzbekistan) ME&L Monitoring, Evaluation, and Learning MEVA Mobile Extension Value Added application MFERIT Ministry of Foreign Economic Relations, Investment and Trade (Uzbekistan) MOU Memorandum of Understanding mt Metric Ton NEP National Exchange Program ODC Other Direct Costs OH Overhead OSCE Organization for Security and Cooperation in Europe PERSUAP Pesticide Evaluation Report and Safe Use Action Plan (USAID) RDCS Regional Development Cooperation Strategy (USAID) REC Regional Economic Cooperation Project (USAID)(Central Asia Region) RO Reverse Osmosis SOW Scope of Work STTA Short-term Technical Assistance TAP Technical Assistance Project TBD To Be Determined TCTC Tashkent City Center for Testing and Certification TOR Terms of Reference TOT Training of Trainers TSAU Tashkent State Agrarian University (Uzbekistan) UNDP United Nations Development Programme USAID United States Agency for International Development USG United States Government VRI Vegetable Research Institute (Uzbekistan) WFLO World Food Logistics Organization (research and education arm of GCCA) CONTENTS

A. BACKGROUND ...... 1 Project Goals and Objectives ...... 1 Project Components ...... 1 Georgraphic and Commodity Focus ...... 1

B. ADMINISTRATIVE ...... 2 Personnel ...... 2 Local Registration ...... 2 Participation in USAID Events ...... 2

C. PROJECT ACTIVITIES UNDER COMPONENTS ...... 3 COMPONENT 1: IMPROVE THE QUALITY AND VOLUME OF AGRICULTURAL PRODUCTION ...... 3 Task 1.A. Improve On-Farm Productivity ...... 3 Task 1.B. Increase the Quality and Availability of Agricultural Inputs ...... 4 COMPONENT 2: IMPROVE POST-HARVEST HANDLING AND PRODUCTION ...... 6 Task 2.A. Facilitate the Advancement of Cold Storage Practices ...... 6 Task 2.B. Utilize Post-Harvest Production to Reach New Markets...... 7 COMPONENT 3: FACILITATE MARKET LINKAGES ...... 8 Task 3.A. Create New Linkages in the Domestic Market ...... 8 Task 3.B. Create Market Linkages with New Foreign Markets ...... 8 COMPONENT 4: LINK EDUCATIONAL INSTITUTIONS WITH PRIVATE SECTOR DEMAND ...... 10 COLLABORATION WITH OTHER DONOR PROGRAMS ...... 12 WOMEN IN AGRICULTURE ...... 12

D. MONITORING AND EVALUATION ACTIVITIES ...... 15 Monitoring and Evaluation ...... 15 Communications and Outreach ...... 15

E. ENVIRONMENTAL COMPLIANCE ...... 16 Monitoring ...... 16 Mitigation ...... 16 Issue(s) ...... 16

A. BACKGROUND

1. Project Goals and Objectives USAID’ s Agricultural Value Chain (AVC) Activity supports Development Objective #1 under the Regional Development Cooperation Strategy (RDCS) – Expanded Diverse and Competitive Trade and Markets. Specifically, the Activity contributes to Intermediate Result (IR) 1.1 – A More Diverse Private Sector, and IR 1.2 – Enhanced Agricultural Competitiveness and Food Security. In support of this Development Objective, the AVC Activity seeks to: (1) create employment opportunities; (2) improve incomes; (3) increase fruit yield and quality; (4) increase packed and processed output; (5) increase targeted fruit and vegetable exports; (6) link USAID’s producers and processors to international markets; (7) strengthen relationships between educational institutions and the private sector.

2. Project Components AVC is organized into four Components, linked by cross-cutting themes, all targeted at economic actors along carefully selected fruit and vegetable (F&V) value chains. The mandate of each Component is: · Component 1: improve the quality and volume of agricultural production; · Component 2: improve post-harvest handling and production; · Component 3: facilitate market linkages; and · Component 4: link educational institutions with private sector demand.

3. Geographic and Commodity Focus AVC will work in 32 districts across all 12 provinces of Uzbekistan with activities in at least one district of each province. Initial technical activities are limited to the 26 districts covered under the predecessor project, AgLinks Plus (ALP), until the new Memorandum of Understanding (MOU) regarding AVC is finalized and signed.

AVC # Province Districts ALP Total (add) 1 Samarkand Taylok Payarik Samarkand Urgut Bulungur 5 0 2 Namangan Pop Turakurgan Uychi Kosonsoy Chortok Yangikurgan 6 0 3 Ferghana Kuvasoy Ferghana Kuva Altyaryk 4 0 4 Tashkent Ohangaran Bustonlik Zangiata Parkent Kibray 5 0 5 Andijan Andijan Bulokboshi Hujaobad Marhamat Jalakuduk 5 0 6 Bukhara Jondor 1 0 7 Karakalpakstan Nukus 0 1 8 Jizzakh Bakhmal 0 1 9 Kashkadarya Kitab 0 1 plus Tashkent City plus Tashkent 10 Navoi Khatirchi 0 1 11 Syrdarya Syrdarya 0 1 12 Khorezm Bogot 0 1

TOTAL 26 6 32

Table 1: AVC Geographic Focus by Province, including Tashkent City

The approved AVC crop list includes both fruits and vegetables (F&V). A total of 10 crop types are approved for activities under the project with the majority from the stone fruit family (4) followed by vegetables (2), although tomatoes are biologically classed as fruits. The remaining four crop types include grapes, apples, persimmons, and the melon family.

Stone Pome Grape Curcurbit TOTAL Vegetables Semi-Tropical Fruits Fruit Fruits Cherry Tomato Apple Persimmon Table Melon Apricot Onion Peach Plum 4 2 1 1 1 1 10

Table 2: AVC Crop Focus 1

B. ADMINISTRATIVE

1. Personnel

During this reporting period an assistant financial management position was recruited, resumes vetted and interviews held with an offer made by the end of the quarter. The prospective employee, Ravshan Ahmedov, accepted the position and will start work at the beginning of the next quarter.

By the end of the quarter the Procurement and Compliance Officer began her maternity leave which extends to the end of July.

2. Local Registration

Legal approval of the project and initiation of formal relations with entities of the Government of Uzbekistan (GOU) await signature of a Memorandum of Understanding (MOU) between the GOU, represented by the Ministry of Agriculture and Water Resources (MAWR), and the US Government, represented by USAID. After the MOU is signed, AVC must be registered as a “Technical Assistance Project”(TAP) with the Special Committee under the Cabinet of Ministers. AVC staff have continued working collaboratively with USAID and MAWR to understand the TAP registration process and requirements and to prepare all the necessary supporting documentation.

3. Participation in USAID events

On March 14-15, AVC’s COP and Standards Specialist participated in USAID ’s second annual meeting in Almaty of the trade, transport/logistics, value chain development, and trade facilitation community of practice within the New Silk Road/Almaty Consensus region. The AVC delegation made two presentations: one on the AVC project itself and the other on existing patterns of regional trade in horticultural products from a market facilitation approach.

On March 31 the COP made a presentation at USAID Tashkent to a multi-donor meeting that presented AVC Activity objectives, approach and activities to-date. In addition, general information on the Uzbek horticultural sector and project experience were shared with the approximately 30 attendees from multiple organizations.

C. PROJECT ACTIVITIES UNDER COMPONENTS

1. Component #1: Improve Quality & Volume of Agricultural Production

a. Improve On-Farm Productivity

Pests and Disease. AVC arranged a technical exchange between AVC partners in Andijan, Namangan, and Fergana province and technical staff of Syngenta and Rosita (a distribution company). The purpose of the exchange was to facilitate partners’ introduction to and use of pest and disease control programs and products from local input suppliers. The focus was on pome and stone fruits and grapevine control for the 2016 growing season in the three Fergana Valley provinces. Partner farm enterprises within Andijan Province Figure 1: The Syngenta P&D control program introduction to (Dolanalik Bogbon Mevasi, Abdurashid Michurin partners in Buloqboshi, Andijan. Gulshani, Nizomiddin Nazar Bogi, Orzuli Inobat Bogi, Akram Yoldosh, and Sadriddin Jamoli) representing 40 ha of grape farms and 80 ha of apple, pear, and peach orchards agreed to work with Syngenta products within the latter’s grower program. These farm enterprises are also applying AVC technical recommendations and agreed to serve as on-farm demonstration sites for future trainings and domestic farm exchange programs. Dolanalik Bogbon Mevasi farm enterprise in Buloqboshi District further agreed to serve as a test plot to demonstrate the impact of delayed grapevine pruning on 0.25 ha of vineyard using the Nimrang variety. This test will demonstrate this pruning method’s increase in crop Figure 2: The Smart Solution Co demonstrates Hydraulic Ram Pump in Tashkent Province yield, resulting in better economic benefit compared to traditionally pruned grapevines. While the winter pruning season was over for most vineyards by the end of the quarter, this demo area will delay pruning until mid- April. The method is described in many manuals and scientific papers by American scientists and practiced by their grape producers. The expected increase in yield from delayed pruning ranges from 20 to 100% depending upon the variety and local conditions.

Water Management . AVC, in collaboration with input supplier and partner organization Smart Solution Co., facilitated a presentation and field-seminar for a Hydraulic Ram Pump to promote sustainable water energy consumption. Smart Solution Co. provided their locally produced hydraulic ram pump while AVC facilitated participation of its partners from Bukhara and Tashkent Provinces as well as arranged the farm test site.

The main advantage of this type of pump is its independence from electrical or fuel energy through utilization of the hydraulic water power embodied in the water flow of rivers and canals to lift water to neighboring fields. This technology offers a low cost, environmentally Figure 3 Hydraulic Ram Pump functioning at the water source in sound solution to distribution of scarce water resources Parkent District, Tashkent Province in many orchards, vineyards and vegetable plots. It will 3 be particularly useful for producers in non-irrigated or poor water supply areas with dry climates and unstable water supply zones.

Orchard & Vineyard Design . AVC staffers Dima Lunev and Gholib Mahmudov assisted Xasan Eshonqulov of Urgut Fresh Fruit (Samarkand Province) in the planning, design and overall economic and technical evaluation required to establish a new orchard and vineyard. Completed work included site evaluation, crop and variety selection, evaluation of drip irrigation system configuration and installation, inspection, measurement, and initial data collection. Three local drip irrigation vendors were introduced (Eco Drip Lux Co, Exim Plast Co, Agropoliv Co) and a meeting between Urgut Fresh Fruit and these vendors was facilitated by AVC staff. All three firms provided commercial offers for consideration based upon the design parameters developed, and the consultant activity culminated in Urgut Fresh Fruit signing a UZS 384 million ($135,000) contract with Exim Plast Co. for installation of a drip irrigation system on 24 ha land.

b. Increase the Quality and Availability of Agricultural Inputs

Invest in the full operation of tissue culture lab and provide supplemental support to government institutions. For the period of January to February 2016 considerable scientific progress was achieved to improve the functionality of the Tissue Culture Lab (TCL) at the Mirzaev Institute. As a result of the joint efforts of AVC ’s Biotech Specialist, Aziz Hakimov, and AVC consultants, John Driver and Tim Mitchell, a number of issues regarding optimal growth media conditions, acclimatization process design, future greenhouse design parameters and TCL staff training related concerns were evaluated, proper recommendations made and solutions implemented. Figure 4: Local cherry variety, “Valovoy serdce,” in culture During John Driver’s visit in January, two local cherry media varieties, “drogana jyoltaya” and “ valovoy serdce,” were introduced to in-vitro culture for “clean -up" prior to subsequent propagation. If the laboratory propagation of these two varieties succeeds they will provide the TCL with highly desired “scion” wood stock for the production of complete “ready plants” to sell in the Uzbek markets that do not require grafting. This will increase the market value of lab-produced products by 2 to 3 times compared to ungrafted rootstocks.

Approximately 1,000 Krymsk 5 (K5) lab-produced cherry rootstock plantlets were transferred from sterile media to acclimatization in soil conditions. This is the logical next step to further demonstrate and reinforce the idea that the TCL is able to produce and replicate large quantities of plant material on a commercial basis. Testing in post- laboratory conditions was also carried out in one of the Mirzaev Institute’s ornamental flower greenhouses in February and March. Results from these post-lab tests highlighted the need for a greenhouse specific to lab produced plants along with an advanced soil potting system to complete the tissue culture commercial complex at Mirzaev.

Figure 5: Krymsk 5 cherry rootstocks The new Mirzaev hired lab transferred to soil for acclimatization technicians were approved in mid-March for hands-on training at the private tissue culture laboratory of Dr. Alisher Touraev, an AVC Plant Biotechnology Consultant. They will be introduced to media preparation methods, aseptic work techniques, overall plant physiology and the necessary theoretical foundations. This training will improve the functionality of the lab as it directly impacts their skills and abilities. Figure 6: Updated Grow Room, water tank and electric power stabilizers 4

To complement the technical support outlined above, the AVC engineer performed a wide range of activities and procurements to alleviate infrastructural limitations at the Mirzaev tissue culture lab site. A 500 liter water storage tank installation was completed in January to ensure continuous work within the lab independent of water interruptions. Lighting and shelving systems in the grow room were updated to provide minimum light intensity for the growth and acclimatization of the newly propagated plants. In February, three 30 kilowatt electric power stabilizers were installed to protect the sensitive laboratory instrumentation, particularly the laminar flow hood and incubators, from power surges and voltage shortfalls. Additionally, a UV lamp of the RO system was replaced due to burnout.

2. Component #2: Improve Post-Harvest Handling & Production

a. Facilitate the Advancement of Cold Storage Practices

Facilitate cold chain demo site activities and national cold chain exchange programs for cold storage operators. AVC continued to provide support and consultations to the previous portfolio of cold storage clients from the predecessor projects. A total of 15 cold stores in 6 provinces were visited, evaluated and provided targeted technical consultation based on their specific needs.

The 2015 season carrot farm gate price was very low at harvest with many growers postponing sales by introducing them into temporary storage. However, carrot prices remained low through March and AVC staff witnessed most cold storage facilities full of carrots.

Figure 8: Carrots stacked & stored in a non-refrigerated facility Figure 7: Refrigerated cold storage facility in Andijan where carrots can be stored into July.

Cold stores continue to expand throughout Uzbekistan, including both construction of new and expansion of existing facilities. The following AVC partners invested in improving their operations this quarter:

· Namangan Province - Broker and cold store owner Abdugaffor Haknazarov of Turakurgan District invested $15,000 to build a 50 metric ton cold storage facility in addition to his existing 20 mt chamber which employs the CoolBot system introduced by USAID in 2010. AVC provided technical consultations including design and supervision of the construction process. The facility will serve as a pre-cooling chamber during stone fruit harvest season (cherry, apricot, peach and plum). Turakurgan District is a major area for the consolidation, packing and export of fresh fruits. The estimated internal rate of return on his investment is 30% per annum. · Samarkand Province - Grower, consolidator, importer and exporter Umed Suleymanov continues with his plan to expand his 800 mt cold storage facility to 1200 mt. The planned cold storage facility will serve as a pre-cooling chamber, an idea introduced to the cold storage sector by USAID.

Figure 10: Before construction, Namangan Province Figure 10: After the construction, Namangan Province

Facilitate the establishment of a pay-for-service cold chain service provider. Due to the absence of an MOU, the cold store round tables to gather the multiple owner/operators into a mutual interest group were postponed until next quarter. Site visits to the cold storage actors continued throughout the quarter to retain a sense of the market direction and to prepare these industry participants for future collaboration. The preparatory legal documents have been prepared and when the timing is appropriate (i.e., post-MOU) AVC subcontractor World Food Logistics Organization/Global Cold Chain Alliance will coordinate next steps within the industry. The experience and activities of the Sahiandry Farms Association, which the AVC Marketing Team visited during the India market exploration trip (discussed below), increased industry interest in organizing an LLC to provide targeted support to members. In this India example the association began with 10 members and grew to encompass 1,200 members today.

b. Utilize Improved Post-Harvest Production to Reach New Markets

India Exploratory Visit. In response to a request from the UNDP Aid for Trade project, AVC located a variety of sites to visit in India during an exploratory visit that UNDP sponsored. Four Uzbek grape cold chain experts visited India from February 21-28 under their program and were hosted by AVC partner, Grapage.

Based on contacts and lessons learned during two previous USAID sponsored market explorations to India, participants were shown the links in the cold chain where GAP certification and ISO 22000 certifications were applied. They were also introduced to best practice methods of harvesting, precooling, transporting, sorting, packing, and storing. The participants understood that external markets express strong demand for seedless grapes as opposed to the seeded varieties which dominate the Uzbek market. They agreed to test-market trial batches of cherries, peaches, nectarines, and apricots in the upcoming season utilizing the channels of Figure 11: Grape harvest is discussed in the vineyard. WFLO AVC cold store and export partner, S-Lola. A similar trip consultant explains the importance of morning harvest. to Turkey is planned for June/July 2016.

Figure 13 Improved grape packaging at GRAPAGE’s India facility

Figure 12 WFLO consultant demonstrates various Indian packaging materials.

3. Component #3: Facilitate Market Linkages

a. Create New Linkages in the Domestic Market

Identification and establishment of linkages with local Uzbek Companies. During the month of January, AVC Component # 3 team visited the following companies to support their requests to assist with their organic certification processes:

JV Yanfood Export LLC – Yanfood Export mainly dries vegetables and exports to Europe and CIS countries. The company began to vertically integrate and assure quality control through management of a 290 ha vegetable plot in Tashkent Province. In 2016 they want to begin to diversify their operation and with the goal of entering high value EU markets, mainly Germany. They requested technical assistance to obtain organic certification for their Tashkent plot. AVC staff provided assistance on the initial land Figure 14 Preparation of documentation system for organic certification assessment required for organic at JV Yanfood LLC certification. Two Yanfood Export farm managers and personnel within their Quality Control Department were trained by AVC on the rules and regulations required for eventual organic certification.

Parkent Uzumi LLC – Parkent Uzumi cleans and sorts raisins in Parkent District, Tashkent Province. They are also vertically integrating to provide a controlled supply of quality inputs via 66 ha of vineyard potentially expanding to 100 ha. Company produced grapes are dried and processed in their Parkent factory. The company is also interested in obtaining organic certification for their vineyard. The first assessment was completed this quarter and relevant recommendations provided on issues to be addressed. Organic certification requires a rigorous documentation system be established and AVC has begun assisting Parkent Uzumi staff to prepare for an upcoming organic Figure 15 Field assessment for organic farming at Parkent Uzumi LLC vineyard audit scheduled for May 2016.

b. Create Market Linkages with New Foreign Markets

Market Exploration Trips . AVC’s Marketing Team made its 2 nd and 3 rd in a series of 4 exploratory visits during January and February to assess international consumer demand for Uzbek horticultural products for the 2016 season. These trips focused on Northern Europe, the Baltics, Russia and Gulf markets. An earlier exploratory trip was made to India during November 2015. The Marketing Team met directly with major importers and buying agents, visited local markets and attended trade shows such 8Figure 16: Uzbek stand at the bazaar in Latvia as ProdExpo (Moscow) and Gulfood (Dubai) during these exploratory visits to identify trends and opportunities for Uzbek exports.

European Market. The traditional Northern European markets of Holland and Germany have been, and are expected to remain, flooded with produce from Southern European markets such as Spain, Italy and Greece. Fruits and vegetables from these countries enter the market at roughly the same time as Uzbek produce, but have the added advantage of a common currency and standards, historic trade routes, known buyer and seller relationships and reduced transit times. Under present conditions, exports of fresh Uzbek produce to these markets will be on a niche market basis. Alternatively, Uzbekistan dried fruits and spices were in abundance in many locations and more can be done with increased focus on this area.

The Baltic Market. The Baltic market is small, with only 6.2 million people, but still averages net fruit imports valued around USD 1 billion per year. By comparison, the 2014 value of Uzbek fruit and vegetable exports was USD 1.5 billion to over 40 countries, with the largest consumer being Russia. In addition to internal consumption, the Baltic countries, especially Lithuania and Latvia, serve as important transit points for European Union, Scandinavian and Eurasian Economic Union markets. More than half of all fruits imported to Baltic countries are re- exported with the major items being pome fruits, citrus and stone fruits to Russia and Belorussia. The Baltic countries are gradually moving to Global GAP standards but presently accept fresh fruit imports with a certificate of origin, hygiene certificate and Euro1. Figure 17 Meeting Food City Representatives at ProdExpo, Moscow, Russia

Collaboration with Latvian Agricultural Institutes. In addition to the market reconnaissance achieved by the Marketing Team, visits were made to the Latvian Agricultural University and the Latvian State Institute of Fruit Growing with the former interested in an academic exchange program with Uzbekistan and the latter inviting Uzbek participation in their 3 rd annual conference on “Sustainable Fruit Growing: From Plant to Product,” scheduled for August 2016.

Russian Market. Under prevailing conditions the Russian market is prepared to accept almost all Uzbek fruits and vegetables provided. This is true in both the major cities and provincial capitals. Importers in Novosibirsk are prepared to accept Uzbek produce and willing to provide 100% pre- payment, as required by Uzbek legislation, for initial test shipments. The main competitors for Uzbek produce in these markets remain Iran, China, Azerbaijan, Kazakhstan and Tajikistan.

Gulf Market. The Gulf countries import an estimated 5 million tons of fresh fruit and vegetables annually, with a value of over 3 billion USD. Among the Gulf States, the most important market is the United Arab Emirates, with a share of more than 40%, followed by Saudi Arabia with Figure 18 Al Aweer – Fruits and Vegetables Wholesale Market, Dubai, more than 30%, Qatar and Kuwait, both with just UAE under 10%, and lastly Oman and Bahrain.

The UAE population mix of about 10 million residents is made up of less than 20% of Emirati, more than one- third are South Asian and a significant number are from Europe and North Africa. This creates two distinct markets in the Emirates – one being for high income populations where the standards such as Halal and

HACCP are required and the other for middle to lower income populations where only country of origin and phytosanitary certificates are needed.

Main fruit and vegetable exporters to UAE are Oman, Egypt, Jordan, Philippines, Pakistan, South Africa, Spain and New Zealand. Uzbekistan has good potential to compete on cherries, apricots, grapes and melons with these other competitors within this region.

Follow-up from Market Exploration Trips. Flores Farm Gmbh – is a German company, mainly focused on organic and fair trade certified products from all over the world. During AVC’s exploratory visit to Europe, the Marketing Team met and discussed potential Uzbek products of interest to their company. The company was most interested in buying organic raisins from Uzbekistan. Upon return to Uzbekistan, AVC ’s Marketing Team checked among known Uzbek producers and exporters to find potential suppliers. Sunny Fruit LLC had both an available supply and a vested interest in sales of organic raisins to the European market. AVC technical staff trained and certified in organic techniques took sterilized samples of Sunny Fruit organic raisins, which the company then shipped to the German buyer for analysis. One of the two sampled batches passed inspection with Flores Farm GmbH and Sunny Fruit LLC completing Figure 19 Sterilized raisin sample at Sunny shipment of one 20 mt container of organic raisins (see USAID Fruit LLC Snapshot in Annex B).

While in Germany at the Fruit Logistica Conference and Exhibition, AVC staff met with the Projects and Programs Officer from FairTrade’s main office in Bonn. She identified Uzbek pomegranates, cherries, grapes and tomato paste as having high potential for export to the EU under the niche market of FairTrade certification. Both sides agreed to support interested Uzbek producers to obtain FairTrade certification and identify potential buyers with follow-up meetings with the FairTrade Central Asia Representative in Tashkent.

4. Component #4: Link Educational Institutions with Private Sector Demand

Agricultural Universities.

Curricula. The system of higher education in Uzbekistan functions under existing legislation related to education (“On Education”, “On National Program for Personnel Training”, the Cabinet Ministries Decree “On the State Educational Standards for Higher Education”) supplemented by rulings of the Ministry of Higher and Secondary Specialized Education (MHSSE). According to the MHSSE’s Order #169 dated April 21, 2012 entitled “On measures for improvement of core higher education institutions” the Tashkent State Agrarian University (TSAU) was designated a sphere of knowledge for “Agricultural and Water Resources” as well as an approved core higher education institution for education in “Agriculture, forestry and fish breeding” and “Management in Agriculture .” Thus, TSAU serves as the “flagship” institution in charge of development of qualification requirements for graduates, respective academic curriculums in educational departments and involvement of leading professors from related educational institutions (i.e. Andijan and Samarkand Agricultural Institutes.

According to recent Cabinet of Ministers ’ Order #3 (dated January 10, 2015) and MHSSE’s Order # 2 (dated January 15, 2015) five (5) National Educational Standards were developed, approved and registered along with 28 academic curricula for bachelors’ and 47 for graduate specialization s. This process is well formalized and regulated to eliminate the potential for random content standards within the system of higher education. However, this process of curriculum change is time consuming. Amending the existing and approved curricula requires the full review and approval process of the Cabinet of Ministers and MHSEE, resulting in reduced ability of higher education institutions to respond to fast changing market demand.

The development of “intensive orchards” in Uzbekistan serves as an example of the length of this process. Intensive orchard development became prominent in Uzbekistan10 in 2010. Farm enterprises, private firms and public institutions established “intensive orchards” – dwarf fruit tree rootstocks, grafted with high-yielding varieties, supported with trellising systems and drip irrigation combined with fertigation. By the 2016 season there were 36,800 hectares of new orchards of which 23,500 were intensive (64%).

Management of intensive orchards is also intensive and differs significantly from conventional methods. Rapid expansion of these intensive areas has resulted in increased demand for qualified managers and an urgent need to educate agricultural university students on this topic. However, until the respective academic curricula are amended and approved, professors cannot introduce new course material. This time lag between educational supply and market demand holds not only for new coursework within existing subjects but also for new specializations at both the undergraduate and graduate levels.

Exchange Visit to Latvian Agricultural University . Responsiveness of higher education institutions to changing market demand and their ability to amend educational standards, content and curricula quickly is extremely important. Learning from the experience of relatively advanced institutions can be helpful in this regard. AVC explored potential foreign universities with similar institutional backgrounds which would be most appropriate for sharing experiences. Selection criteria for a hosting educational institution included common historical background in education systems, similar interest in agriculture, particularly horticulture, and the host should have already made significant achievements in Western educational markets. After analyzing potential hosts AVC identified the Latvia University of Agriculture (LUA), in Jelgava, which also contains the Latvian Horticultural Institute, located in Dobele. LUA and Uzbek universities shared a common past as part of the former Soviet educational system and had similar curricula, but LAU is now an appreciated member of the European educational system and successful player in the Western educational market.

AVC approached LUA through their International Relations department, particularly Dr. Voldemars Bariss, to explore their interest in this type of exchange visit. LUA upper management evaluated the Uzbekistan proposal and expressed interest in not only hosting the delegation but on potentially establishing a more formal partnership with Uzbek agricultural universities and institutes. AVC and its partners decided to use this exchange opportunity not only for learning about market responsiveness of LUA but to broach more broader issues such as student selection, enrollment processes and procedures, organization of the education process, student union operations, organization of research, evaluation of students, etc.

To develop a comprehensive list of topics to discuss in Latvia, AVC ’s Component 4 team engaged experts from provincial agricultural universities - Zokirjon # Last Name First Name Organization Position Bostonov, Dean, Andijan Ministry of Agriculture and Head of Educational Institutions 1 Jonikulov Shakarboy Agricultural University and Water Resources and Training Department Norjigit Nishanov, Deputy 2 Yuldashov Yakubjan Tashkent State Agrarian Department Chair Dean, Samarkand 3 Azizov Aktam University Associate Professor Agricultural University. As a 4 Ravshanova Nilufar Senior lecturer Samarkand Agriculture Institute result of a series of brain 5 Ishniyazova Shohista Department Chair storming sessions a list of Dean of Plant Protection and 6 Bustonov Zokirjon topics of interest from the Andijan Agriculture Institute Horticulture Faculty Uzbek perspective were 7 Komilov Komiljon Dean of Agronomy Department developed (see Annex B) and Horticulture, Viticulture and 8 Toshmurodov Abduvohid Deputy Director shared with LUA, which then Wine-making Research Institute developed a draft schedule 9 Nizomov Rustam Vegetable Research Institute Researcher for the Latvian visit. 10 Anvar Toshaliev AVC Project Educational Linkages Specialist

Table 3: Approved Uzbek Delegation to Latvian Agricultural University Exchange Visit

The mobilization and implementation of this exchange program was supported by multiple institutions. USAID, the US and Latvian Embassies all played a significant role as did the Ministry of Agriculture and Water Resources and the Ministry of Foreign Affairs. Based upon formal Diplomatic Notes, issued by the respective Embassies, the MAWR nominated 9 candidates for the visit accompanied by AVC Educational Linkages Specialist, Anvarjon Toshaliev, to facilitate delegation logistics in Latvia. AVC assisted delegation members with document preparation for obtaining Schengen visas and interviews at the Latvian Embassy, booked lodging, and arranged international air tickets. The exchange visit will take place early next quarter and is scheduled for 10-15 April 2016.

Research Institutes . AVC continues to support the tissue culture lab established at the Mirzaev Institute. Technical activities accomplished in the lab are described under Component 1 of this report. The Latvia exchange visit delegation described above included one representative from each of the two research institutes (horticulture and vegetable) in addition to the agricultural university participants. During the delegation’s time in Latvia they will also visit with researchers at the analogous Latvian Horticultural Institute in Dobele.

5. Collaboration with other organizations

AVC staff met with the following organizations this quarter to discuss potential cooperation:

· UzUlgurgiSavdo. The main objectives and activities of this association were appointed in accordance with the Decree of the President of the Republic of Uzbekistan dated March 30, 2011 Decree No. PP- 1514, paragraph 4, "On the improvement of the structure and efficiency of the activities of the association" Uzulgurjisavdoinvest," including export of fresh fruits and vegetables, grapes and melons. As a holding company, which regroups a number of firms trading in a variety of durable and perishable goods, Uzulgurijisavdoinvest was tasked with organizing an international horticultural trade forum in Tashkent. AVC agreed to approach potential presenters for this event. · Korea Rural Economic Institute , A government-sponsored research institution under the Prime Minister's Office of the Republic of Korea (ROK) implementing KAPEX (Korean Agricultural Policy Experiences for Food Security) Project aimed at international cooperation in agricultural policy formulation. They are particularly interested in starting a program of cherry exports to Korea in 2017. AVC expressed interest in collaborating with KREI on their program and requested both insights and contacts for potential Korean importers of Uzbek cherries. · USAID Regional Economic Cooperation (REC) Project. At USAID Tashkent’s request , AVC fully- funded nine (9 ) attendees to the REC project’s “Ferghana Valley Horticultural Sector: Export Potential” held from 25 to 26 February in Ferghana City. The 9 attendees were selected by REC project and included 3 Lithuanians, 3 Belarussians, 2 Latvians and 1 German. They represented various sector interests ranging from business associations, transport & logistics companies and trading companies. The logistics, funding and personal contacts for these attendees were fully handled by the DAI Home Office. Additionally, 5 AVC staff members attended the Forum.

6. Women in Agriculture

Gender consultant, Nozilakhon Mukhamedova, was contracted and mobilized to develop AVC ’s Gender Strategy and train staff in gender awareness. Relevant literature and previous gender assessments conducted in Uzbekistan and the region were collected and reviewed by the consultant to produce a draft background and basis for designing training sessions for AVC project staff.

In early January, the Gender Specialist visited Uzbekistan with two main objectives: 1) to conduct a gender assessment through Figure 20: Gender Specialist interviewing female farmer in meetings and interviews with project Bukhara Province beneficiaries along the value chain and to review and document the existing gender situation in the horticultural sector in Uzbekistan; 2) to conduct the second training module for AVC staff on “ Equal access and opportunities for men and wo men in value chain development” .

Based on the AVC Activity’s objectives and proposed components, open-ended, semi-structured questions were designed for actors in various value chain positions (key informants) to clarify the context and gender gaps within the value chains, describe specific activities, challenges, and successes as well as participation and leadership of women and girls. The survey was conducted in five provinces including Andijan, Bukhara, Namangan, Samarkand and Tashkent. Specific questions12 for male and female key informants in various value chains included topics related to agricultural reforms and their impact on gender-equal participation in value chains, access and control of inputs and outputs, organization of labor and gender-based segregation of agricultural activities, and social, cultural, religious and economic constraints and opportunities for women involved in AVC. Interviewees included producers, exporters, farm employees, cold store operators, and exporters with the data compiled and analyzed.

The Module II gender training on “Equal access and opportunities for men and women in value chain development” was conducted in early January for all AVC staff. The training highlighted gender equity issues in the region specific to the planning and implementation of AVC activities. A brainstorming session was conducted at the end of the training module with AVC’s technical staff to identify: key informants (previous and potential project beneficiaries) along the value chain and activities within the Project Components that would benefit from better inclusion of gender considerations.

General trends · Women still occupy lower positions than men in the employment statistics; sector imbalances and activity distribution continue to concentrate female labor within low paid sectors of the economy (ex., education, health care, and agriculture).

· Continuous seasonal male labor migration has opened opportunities for female labor to become more active in agriculture, especially in the provision of services.

· Most female jobs are in unskilled low-wage work in informal labor markets. W omen’s incomes are 64% of men’s incomes , on average.1 The nature of women’s emp loyment, and their greater representation as part-time employees or informal workers, is connected with the need to balance working life with family and domestic responsibilities. Demand for seasonal agricultural labor provides short-term employment opportunities within various value chains including production, and post-harvest activities. In the horticulture sector women seem to be present in all the value chains except those connected with fruit and grapevine nurseries, fertilization, irrigation, wholesale consolidation and exports.

· Only production and sales of melons seemed to be predominantly controlled by men. According to respondents around “70 to 90% of women are involved in agricultural production and postharvest of fruits and vegetables. Men are involved in activities requiring physical strength. However, male activities also include selection or multiplication and purchase of seeds and seedlings, management of production and postharvest and exporting business”.

Gender-based Constraints The main constraints for women to own resources and diversify away from unskilled part-time wage labor to more remunerative income generating opportunities are the gender stereotypes related to the women’s role in a patriarchal society. Low-paid jobs do not, in turn, allow accumulation of capital, regular income streams to support loan applications or the ability to seize investment opportunities. Rural areas are associated with more conservative values and with rigid gender norms, especially with regard to the role of women. Limited access to information and educational and training experiences means rural communities have less exposure to gender-equitable models of behavior. 2 Women farmers face an additional obstacle which is the obligation to attend various meetings conducted with the local authorities and often very late in the day, a time not considered suitable for women who have family responsibilities.

Gender-based Opportunities Agricultural sector reforms continue with the most recent Presidential Decree (dated 29th December 2015) entitled “On measures of further reforms and development of the agricultural sector for the period 2016-20. ” Recent reduction in total agricultural output was attributed to the introduction of crop diversification and increased number of private farms and small household plots. To combat these two trends and target poverty alleviation within the rural population, the GOU introduced new maximum and minimum sizes for entities legally registered as farm enterprises (FE). Based on an earlier Cabinet of Minister’s decree the maximum

1 United Nations Development Program (UNDP). 2009. Human Development Report 2009: Overcoming Barriers —Human Mobility and Development. New York. Table J. p. 183. 2 ADB Country gender Assessment 2014 13 and minimum size of cotton and wheat farms is now 70 ha and 30 ha, respectively, while analogous levels for fruit and vegetable farms are 10 and 5 ha. As a result of these reforms the GOU projects by the year 2020 the total area under cotton and wheat will be reduced by 170,500 hectares (13% reduction compared to 2013) and 50,000 ha (4% percent compared to 2013), respectively. The net effect of these reforms is to free cultivable land for new entrants into the horticultural sector, including women.

Another effect of this and other reforms has been each province and district can now identify the range of optimal farm size depending upon their local characteristics. These trends have been considered as positive by farmers in Jondor District, Bukhara Province which as a result of the previous optimizations had several small holders within the physical confines of their farm enterprises . “Now all the responsibility and decision making is reduced to a smaller number of farm members, or even only one individual, and therefore it will be easier to manage the farm” informed one of the farmers in Jondor District.

Recommendations · Consider working through Educational C enters “O’quv markazlarlar” which function as private businesses in all provinces. These Educational Centers could be partnered as training bases for introducing certified picking and packing training courses according to Global G.A.P. and other standards. The Centers could be linked with potential employers (exporters). Women who receive certificates could be hired individually or in groups for performing pruning, picking and packing and other services related to the horticultural industry.

· Produce video materials with partnering institutes that include participation of male and female successful farmers, agronomists and post-harvest service representatives and make those accessible for distribution among male and female large, medium and small scale horticulture value chain beneficiaries.

· Raise awareness of agrofirms (and potential logistic centers) about female producers and post- harvesters, so that when inputs or supply related opportunities open they are also informed.

D. MONITORING AND EVALUATION

1. Monitoring and evaluation

The M&E team together with Component #2 staff members visited 3 cold store owners in Samarkand Province to collect remaining baseline data and monitor and evaluate the use of materials distributed during FY 2015 Q4 (ex., plastic bags, sulphur pads, and packing boxes). The information was input into the database and 2015 baseline data was summarized and analyzed.

2. Communications and Outreach

In anticipation of a post-MOU AVC Launch event, the M&E team, including the public relations specialist, began drafting visual (print and video) materials. Specifically, one pagers were designed for AVC’s marketing component (Component #3), as well as two posters illustrating post-harvest activities (Component #2) around the theme of the importance of cold storage. Initial stock footage and b-roll (potential inserts) were filmed to support development of an AVC video presentation. Shootings took place in the Tissue Culture Laboratory and in the field of an input provider.

MEVA. The MEVA application was made available worldwide on Google Play in April 2015 which was after the closedown of the previous project. There was almost no marketing of the application to the public. Since the launch of the application the local developers of the app have periodically monitored the number of downloads which reached over 1000 within a few months. Other websites have replicated the MEVA app installation file providing additional virtual venues for downloading in addition to Google Play. Examples of these replicated download venues include : http://apkpure.com/meva-app/com.finnet.mevaapp http://www.appbrain.com/app/com.finnet.mevaapp?install=web http://android.apkpro.info/meva-app-10-154865.html http://smallapk.com/Meva-app_lite-APK.html

Download statistics are only available from Google Play and not these additional sources. The bar chart below present the monthly downloads recorded on Google Play from April 2015 through January 2016.

Chart Title 800 700 600 500 400 300 200 100 0

Bar-chart of MEVA Downloads

E. ENVIRONMENTAL COMPLIANCE

1. Monitoring

No major activities or work were undertaken during this quarter requiring development of mitigation measures or conducting environmental assessments. However, AVC and WFLO provided technical consultations to individual farmers, processors, nursery owners, public institutions and cold storage owners taking into account GAP, environmentally friendly and hygienically clean practices. Large scale pest & disease and pruning training programs seasonally planned for the months of February and March were not possible due to the absence of an MOU. All other activities conducted this quarter were Category-1 (Categorical Exclusion) actions that do not have an effect on the natural or physical environment and are classified as “ No Action Required .”

2. Mitigation

AVC promotes environmentally friendly agrotechnologies and techniques to mitigate possible adverse impacts of agricultural activities. The proper use of agro chemicals as a means for pest and disease control in orchards is always on the project agenda. The basis for the mitigation of potential negative environmental impacts of agrochemical use is the Pesticide Evaluation Report and Safe Use Action Plan (PERSUAP). A Scope of Work (SOW) for the AVC PERSUAP has been developed, and AVC plans to mobilize a PERSUAP consultant to complete this report in the 3rd quarter of FY2016, following the finalization of the project’s MOU. This PERSUAP will provide detailed agrochemical guidance to project activities. In the meantime, AVC continues to follow the PERSUAP recommendations from the previous ALP project.

3. Issues

There were no environmental issues during this reporting period.