ADVANCING TOGETHER Evidence on Linkages Created Between Majority and Non-majority Business Associations, Including Strengthening Associations

April 6, 2017

This report was produced for review by the United States Agency for International Development. It was prepared by USAID Advancing Kosovo Together implemented by prime contractor Chemonics International, with input from subcontractors Development Professionals Inc., Business Support Center Kosovo, and the Berman Group.

USAID ADVANCING KOSOVO TOGETHER

Evidence on Linkages Created Between Majority and Non-majority Business Associations, Including Strengthening Associations

Contract No.AID-167-C-14-00003

The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. CONTENTS

EXECUTIVE SUMMARY ...... 5 ACTIVITIES AND ACHIEVEMENTS ...... 5 Work with Non-majority Associations to Encourage Membership and Link Members with Buyers ...... 5 Establish or Strengthen Linkages between Associations, Particularly Minority- Majority Linkages ...... 7 Strengthen the Capacities of Associations ...... 8

ACRONYMS

AKT LS AKT Local Solution B2B Business to business COE Congress and Event Organization GOK Government of Kosovo IADK Initiative for Agricultural Development of Kosovo KCC Kosovo Chamber of Commerce MAFRD Ministry of Agriculture, Forestry, and Rural Development MNWE Multi-ethnic Network of Women Entrepreneurs WEF Women’s Economic Forum USAID US Agency for International Development EXECUTIVE SUMMARY

The three year USAID Advancing Kosovo Together project (AKT), launched on April, 2014, supports the U.S. Government’s foreign policy objective of peace and stability in the Balkans. The project does this by supporting USAID’s Country Development Cooperation development objective of improved rule of law that meets citizens’ needs and intermediate results of improved integration of ethnic minorities into Kosovo society. AKT’s goal is to foster positive and constructive inter-ethnic cooperation between Kosovo’s majority and minority communities in addressing common problems of unemployment, social needs, and municipal services in 16 targeted municipalities throughout Kosovo. The project partnered directly with 16 Kosovo municipalities: six (6) Serb-majority municipalities in the south (Gračanica/Graçanicë, Klokot/Kllokot, Parteš/Partesh, /Ranillug, /Novobërdë, and Štrpce/Shtërpcë); four Serb-majority municipalities in northern Kosovo (/ë, Leposavić/Leposaviq, and Zvečan/Zveçan); and six (6) Albanian-majority municipalities (Obiliq/Obilić, /Gnjilane, Istog/, Klinë/, Pejë/Peć and Vushtrri/Vučitrn). AKT pursues its goal through four Project Intermediate Results (PIRs) or objectives, listed below: 1. Improve autonomous, horizontal communication between a) Kosovo Albanian and non-majority communities; and b) GoK and non-majority communities; 2. Improve economic opportunities in target municipalities; 3. Increase the efficiency and capacity of target municipal administrations to respond to the needs of all their citizens; 4. Build the capacity of host organizations by leveraging local, cross-ethnic leadership to implement USAID Kosovo funded activities.

Business associations are meaningful market actors. Effective associations serve to promote the business interests of their members, provide members with opportunities to share information and resources, expand member businesses’ networks, and serve as a social venue where community divisions exist. AKT’s work with associations was threefold: 1. Work with non-majority associations to encourage membership and link members with buyers 2. Establish or strengthen linkages between associations, particularly majority-minority linkages 3. Strengthen the capacities of associations

This report highlights the activities and achievements of the AKT project accordingly.

ACTIVITIES AND ACHIEVEMENTS

Work with Non-majority Associations to Encourage Membership and Link Members with Buyers

AKT supported 24 business linkage events with 394 business participants. For the purpose of supporting non-majority associations to increase their membership and establish and expand members’ linkages to new buyers, AKT organized and facilitated the participation of non- majority associations in Kosovo in business-to-business (B2B) events and trade fairs as follows.

 B2B meeting facilitated by AKT grantee Business Support Center Štrpce/Shtërpcë. The event brought together producers from the partner municipalities of Štrpce/Shtërpcë, Klokot/Kllokot, Parteš/Partesh, and Ranilug/Ranillug, and buyers and distributors from other parts of Kosovo. In total, there were 16 non-majority businesses and five associations from these municipalities, and another five larger buyers and distributors (four and one Serbian buyer/distributor).

 B2B meeting between the vegetable producers’ association from Mogila/Mogilla (Klokot/Kllokot) and ABI Progress, . Both parties discussed the identification of production capacities and varieties, price and payment issues, and cooperation between producers and the processing company. Fresh champignons (mushrooms) were identified as a starting point of collaboration and ABI was prepared to buy all second and third class vegetable varieties for processing. A second meeting was organized between the two parties to finalize the details of the agreement. ABI agreed to buy 1,000 kilograms of mushrooms and peppers preserved in barrels during the harvesting season. After the test purchase, ABI agreed to sign a contract with the association for purchasing up to 10,000kg of mushrooms per month.

 B2B meeting between the vegetable producers’ association from Mogila/Mogilla (Klokot/Kllokot) and JEGE. AKT supported the vegetable producers’ association from Mogila/Mogilla (Klokot/Kllokot) to meet with the food processing firm JEGE. JEGE primarily produces pickled cucumbers, pickled peppers, and mushrooms and expressed interest in buying these items from Mogila/Mogilla producers. While no deal was struck at the event, the vegetable producers’ association has established the connection with JEGE and is aware of its standards in case of future negotiation.

 Agro-Industrial and Inverse Trade Fair. AKT supported seven partner businesses and associations from non-majority communities to participate in the Agro-Industrial and Inverse Trade Fair in from September 30 to October 3, 2015. AKT facilitated nine B2B meetings and three verbal partnerships were established between AKT’s non- majority businesses and majority businesses present at the fair.

 AgroKos Fair. AKT supported three non-majority partner associations and four non- majority partner businesses to exhibit and participate at the AgroKos Fair in Pristina in October 2015. The four-day event was an Agribusiness, Food, Drink and Gastronomy Fair organized annually by the Congress and Event Organization (CEO). AKT Prime supported exhibitions for the following non-majority associations: o Association of Raspberry Producers Šarska Malina (70 members, Štrpce/Shtërpcë) o Association of Beekeeping Producers Šarski Roj (43 members, Štrpce/Shtërpcë) o Association of Raspberry Producers Sušice (eight members, Štrpce/Shtërpcë)

Over the course of the Fair, each exhibitor met with an average of over 100 visitors. AKT partner businesses established 53 new contacts and seven leads for new linkages.

 Agriculture and Agribusiness Fair. To ensure the interaction of minority and majority businesses and identification of potential partnerships, during September 28 – October 1, 2016, AKT brought eight partner businesses and three business associations to the Agriculture and Agribusiness Fair in Pristina, organized by the Kosovo Chamber of Commerce (KCC) and the Ministry of Agriculture, Forestry, and Rural Development (MAFRD). The aim of participation of minority partner businesses at this event was establishing new relationships with businesses from majority community and generating new sales. The fair is organized annually in a 6000m² space, with local and regional businesses participating. The following business associations were supported by AKT: o Association of Raspberry Producers Šarska Malina (70 members, Štrpce/Shtërpcë) o Association of Beekeeping Producers Šarski Roj (43 members, Štrpce/Shtërpcë) o Association of Raspberry Producers Sušice (eight members, Štrpce/Shtërpcë) o Multiethnic Network of Women Entrepreneurs (25 members, Severna Mitrovica/Mitrovica e Veriut), and ten of its member businesses.

Establish or Strengthen Linkages between Associations, Particularly Minority-Majority Linkages

 Registration and membership of non-majority associations and businesses in Kosovo Chamber of Commerce (KCC). AKT facilitated the membership of 39 minority-owned partner businesses and 5 minority business associations at the Kosovo Chamber of Commerce (KCC), including businesses from Štrpce/Shtërpcë, Gračanica/Graçanicë, Zvečan/Zveçan, Leposavić/Leposaviq, Parteš/Partesh and Klokot/Kllokot. All members have received certificates of membership. Through KCC membership, businesses will benefit from participation in KCC trade fairs, business to business (B2B) meetings, trainings, seminars, networking, lobbying, and mediation.

New Minority-owned Members of KCC Assoc. (A) Name Municipality Biz (B) Agrosera TOPLIKA B Vushtrri/Vučitrn A-Stil D.P.Z. B Pejë/Peć Belo Zrno S.T.R. B Novo Brdo/Novobërdë Brendi Kos P.P. B Gračanica/Graçanica Cuba P.P. B Štrpce/Shtërpcë Curla B Štrpce/Shtërpcë Davidova Zvezda P.P. B Zvečan/Zveçan Djokic Produkt B Štrpce/Shtërpcë Djurović P.P. B Gračanica/Graçanicë Dragana Radivojevic I.B. B Zvečan/Zveçan Ecoberry D.O.O. B Leposavić/q Eko Šijak P.T.P. B Partesh/Parteš Eldorado S.U.R. B Mitrovica/ë Europa P.P. B Leposavić/q Farma Laki Poljoprivredno Preduzeće B Zvečan/Zveçan Food Pack P.P. B Zvečan/Zveçan Fratello Trade B Gračanica/Graçanica Green Garden Komarac B Partesh/Parteš Jaki P.P. B Štrpce/Shtërpcë Lazić Stil P.P. B Gračanica/Graçanica Ljiljana Milic IB B Mitrovica/ë M&S P.P. B Štrpce/Shtërpcë Mali Blaf B Štrpce/Shtërpcë New Minority-owned Members of KCC Miloš & Marta B Leposavić/q Miss kim S.Z.R. B Mitrovica/ë MM STR B Mitrovica/ë Multiethnic Network of Women Enterpreneurs (MNWE) A North Mitrovica/ë Nektarija P.P. B Štrpce/Shtërpcë Pac Process N.T.Sh. B Klokot/Kllokot Predrag Ristic I.B. B Gračanica/Graçanica Radjenica S.Z.R. B Zubin Potok Sani P.P.T. B Štrpce/Shtërpcë Šarska malina (Association of Raspberry Producers) A Štrpce/Shtërpcë Sarski Roj Udruženje pčelara (Association of Beekeeping A Štrpce/Shtërpcë Producers) Šarsko Jagnje P.P. B Štrpce/Shtërpcë Sito Print Desing S.Z.R. B Zvečan/Zveçan Sofija Pantic IB B Mitrovica/ë Stil Vizantija P.P. B Mitrovica/ë SZR ILIC B Zvečan/Zveçan Tapetarija Stil S.Z.R. B Zvečan/Zveçan Trboljevac Farma B Leposavić/q Udruzenje Proizvodjaca Malina (Association of Raspberry A Štrpce/Shtërpcë Producers Sušiće) Vesela Košnica P.P. B Zvečan/Zveçan Zemljoradnička Zadruga Mogila (Association of Agriculture A Klokot/Kllokot Producers)

 KCC Forum with the Multi-ethnic Network of Women Entrepreneurs (MNWE). AKT organized a forum between KCC members and leadership and members of the Multi- ethnic Network of Women Entrepreneurs (MNWE). Women business owners exchanged their experiences and shared their perspectives on the value of KCC membership. They also networked and explored opportunities for business cooperation. In all. 24 businesses and association representatives were present.

Strengthen the Capacities of Associations

AKT provided training and other capacity building initiatives to strengthen new and existing business associations and improve needed service delivery to Kosovo’s businesses.

 Branding. As part of business linkages activities, AKT delivered a series of workshops to eight business associations from Štrpce/Shtërpcë, Klokot/Kllokot, Parteš/Partesh, and Ranilug/Ranillug to assist them in developing their branding. The topics covered included marketing, branding, and product labeling. At the end of the workshop each association had final printed materials including stories, brochures, logo design, and business cards to attract new members and expand their reach to buyers, government, associations, and other stakeholders.

 Dairy. AKT also hosted a roundtable discussion to discuss the milk sector value chain with multiple stakeholders throughout Kosovo. Participants included individual farmers from majority and non- majority municipalities, milk producer and processor firms, the Faculty of Agriculture, Agency for Agriculture Development, Association of Milk Producers of Kosovo, Association of Milk Processors of Kosovo, Ministry of Agriculture, Ministry of Trade and Industry, and Kosovo Food and Veterinary Agency. Non-majority farmers showed interest in cooperating with the Ministry of Agriculture on grants and other subsidies. The majority of milk producers are concerned about competing with imported dairy products that enjoy a high percentage of market share by maintain low prices and high quality. Recommendations from this roundtable include: the Ministry of Trade to control the usage of oil palm in Kosovo; the Ministry of Agriculture to redesign schemes for supporting farmers; the Food and Veterinary Agency to perform analysis on imported dairy products’ quality; and the associations of milk producers and processors to ensure the proliferation of contracts between milk producers and processors in Kosovo.

 Home food processing. AKT, via grantee Initiative for Agricultural Development of Kosovo (IADK), delivered practical and theoretical training sessions on fruit home food processing for women from Štrpce/Shtërpcë. In these ten training sessions, twelve women members of two multi-ethnic women associations, “Ikebana” from the village of Gotovuša/Gotovushë (Štrpce/Shtërpcë) and “Borovnicë” from Brod (Štrpce/Shtërpcë), had an opportunity to learn about hygiene and standardization of products. Municipality of Štrpce/Shtërpcë supported these training sessions by providing the venue for training in the village Gotovuša/Gotovushë.

 Sector-specific skills and branding. AKT supported two women’s associations, Mundësia and Sabor, to deliver series of trainings and support to over 60 members and prospective members/women entrepreneurs. The two associations delivered series of sector-specific trainings to women in sweets/baked goods, fruit and vegetable processing, beekeeping, dairy processing and soap production. Further, they provided business skills training – specifically branding, packaging and promotion of their products. The skills trainings were supplemented with branded materials for successful participants, including new logos, packaging, business cards, and banners. Participants in the Sabor activity also appeared in radio shows to share their experiences as women business owners and market their businesses. Mundësia and Sabor also facilitated networking events for participants to share their experience and promote their businesses.

 Organizational capacity, technical skills, and branding. After successfully working together as part of the Mundësia activities, several participating women business owners expressed an interest in continuing their collaboration under a new association specifically dedicated to multi-ethnic cooperation of women business owners. With Mundësia’s and AKT’s support, 26 Kosovo Serb, Kosovo Albanian, and Kosovo Turk women from Zvečan/Zveçan, North Mitrovica/ë, Zubin Potok/Zubin Potok, Mitrovica/ë, and Vushtrri/Vučitrn created the Multi-ethnic Network of Women Entrepreneurs (MNWE). Since its founding in 2016, AKT has supported organizational strengthening of the network, facilitating development of their organizational strategy and action plan, internal control mechanisms, and marketing strategy and action plan. AKT also supported improved financial and operations management policies and tools and marketing products, like Facebook, a brand book, and flyers about MNWE. Concurrently, AKT support MNWE to deliver valued services to its members, including participation at KCC trade fairs, access to finance forums with microfinance institutions and special programs focused on women entrepreneurs, and social media marketing practical trainings. Finally, AKT supported MNWE to develop a strong network. To initiate the involvement of MNWE in private sector and advocate for women’s economic empowerment, AKT facilitated the participation of MNWE in the Kosovo Women’s Economic Forum (WEF), implemented by Riinvest Institute and financed by USAID through the Engagement for Equity project. The aim of the forum is to develop a national agenda for women in business and advocate on issues relevant to women-owned businesses to the Parliament of Kosovo.

 Organizational capacity. To expand the linkages between minority micro enterprises and majority large-scale buyers, the project partnered with Novo Brdo/Novobërdë municipality and soft fruits collector Eurofruti from Pristina to engage 26 multi-ethnic raspberry producers from Novo Brdo/Novobërdë as new suppliers to EuroFruti. Over the first year of raspberry production, AKT and EuroFruti brought the farmers together for a series of classroom and field-based trainings. At one such event, AKT hosted Agro Red Gold, a well-established and successful raspberry association in Štrpce/Shtërpcë, to present to farmers the advantages of forming an association. No association of raspberry producers existed in Novo Brdo/Novobërdë and the farmers were interested in forming an association to provide them with updated market information and assist them in negotiating favorable terms for inputs and new contracts. AKT assisted the farmers in drafting and translating the statute of the association. Required documents from the Ministry of Public Administration for registering an association are being submitted.