Usaid Agricultural Value Chains (Avc) Activity Fy 2016 Annual Report

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Usaid Agricultural Value Chains (Avc) Activity Fy 2016 Annual Report USAID AGRICULTURAL VALUE CHAINS (AVC) ACTIVITY FY 2016 ANNUAL REPORT OCTOBER 1, 2015 – SEPTEMBER 30, 2016 OCTOBER 2016 This publication was produced for review by the United States Agency for International Development. It was prepared by DAI. USAID AGRICULTURAL VALUE CHAINS (AVC) ACTIVITY FISCAL YEAR 2016 ANNUAL REPORT OCTOBER 1, 2015 – SEPTEMBER 30, 2016 Program Title: USAID Agricultural Value Chains (AVC) Activity Contract Number: AID-176-C-15-00001 Sponsoring USAID Office: USAID-Central Asia, Uzbekistan Country Office Contractor: DAI Contracts Officer Representative: Shavkat Rakhmatullaev Date of Publication: October 2016 Chief of Party: Charles May Project Manager Misha Voronenko 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. CONTENTS ACRONYMS I. INTRODUCTION A. Project Goals and Objectives B. Project Components C. Geographic and Commodity Focus II. BACKGROUND A. Situational Information Concerning Program Objectives B. Deviations from the FY 2016 Work Plan C. Administrative Issues D. Staffing Issues III. PERFORMANCE MONITORING AND EVALUATION A. Indicators B. Communication and Outreach IV. COMPONENTS A. Component 1 – Production 1. Accomplishments a. IFAD Training b. Training Video Production c. Private Sector Tissue Culture 2. Coordination with Other Partners 3. Planned Activities for FY 2017 B. Component 2 – Post-Harvest 1. Accomplishments a. India Exchange Visit b. Cold Storage Support c. Grape Storage d. Data Loggers 2. Coordination with Other Partners 3. Planned Activities for FY 2017 C. Component 3 – Marketing 1. Accomplishments a. Melon Exports b. Dried Fruits to Ukraine c. Cherry Exports to Korea d. Organic Raisins to Germany 2. Coordination with Other Partners 3. Planned Activities for FY 2017 D. Component 4 – Institutions 1. Accomplishments a. Mirzaev Tissue Culture Production Complex b. In Vitro Grape Production c. Agricultural Universities 2. Coordination with Other Partners 3. Planned Activities for FY 2017 V. ANNEXES A. Success Stories B. Photos D. List of Reports, Analyses, Presentations & Other Key Documents Produced ACRONYMS AAI Andijan Agrarian Institute ALP Agricultural Linkages Project Plus (2011-15) (USAID) AVC Agricultural Value Chains Activity (2015-18) (USAID) CCN Cooperating Country National C&O Communication and Outreach DAI DAI Global, Ltd. DN Diplomatic Note EU European Union F&V Fruit and Vegetable FY Fiscal Year G&A General and Administrative GAP Good Agricultural Practices GCCA Global Cold Chain Alliance GOU Government of Uzbekistan ha Hectare ICA Independent Consultant Agreement (DAI) IFAD International Fund for Agricultural Development IPM Integrated Pest Management LAU Latvian Agrarian University MAWR Ministry of Agriculture and Water Resources (Uzbekistan) MEVA Mobile Extension Value Added - mobile application MFERIT Ministry of Foreign Economic Relations, Investment and Trade MOU Memorandum of Understanding NEP National Exchange Program ODC Other Direct Costs OH Overhead TCPC Tissue Culture Production Complex TSAU Tashkent State Agrarian University (Uzbekistan) UN United Nations UNDP United Nations Development Agency USAID United States Agency for International Development US United States VRI Vegetable Research Institute (Uzbekistan) WFLO World Food Logistics Organization (research and education arm of GCCA) I. INTRODUCTION A. 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 select 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 33 districts across 12 of the 13 provinces of Uzbekistan with activities in at least one district of each province plus the city of Tashkent. A grand total of 34 geographic entities are covered by AVC representing significant geographic expansion since the original AgLinks (AL; 2008-11) and AgLinks Plus (ALP; 2011-15) projects. # Province Districts AL ALP AVC Total 1 Samarkand Taylok Payarik Samarkand Urgut Bulungur 3 5 5 2 Namangan Pop Turakurgan Uychi Kosonsoy Chortok Yangikurgan 2 6 6 3 Ferghana Kuvasoy Ferghana Kuva Altyaryk 1 4 4 4 Tashkent Ohangaran Bustonlik Zangiata Parkent Kibray 5 5 5 Andijan Andijan Bulokboshi Hujaobad Marhamat Jalakuduk Kurgantepa 5 6 6 Bukhara Jondor 1 1 7 Karakalpakstan Nukus 0 1 8 Jizzakh Bakhmal 0 1 9 Kashkadarya Kitab 0 1 10 Navoi Khatirchi 0 1 City Tashkent plus 11 Syrdarya Syrdarya 0 1 12 Khorezm Bogot 0 1 Sub-Totals 6 26 33 34 Table 1: AVC Geographic Focus by Province, including Tashkent City Although it is generally agreed AVC will focus on edible horticulture, the signed Memorandum of Understanding (MOU) between USAID and the Ministry of Agriculture and Water Resources (MAWR) did not designate specific crops for project activities. Project expertise embodied in its staff and accumulated knowledge over the previous projects is greatest in stone fruits, pome fruits and grapes which is extended to vegetables and gourds (melons) under AVC. II. BACKGROUND The Fiscal Year (FY) 2017 obligation is expected to be in the $2-2.2 million range and all indications are these funds must last into the first quarter of FY 2018 leaving roughly 6 months to the end of the contract. Assuming the expected FY 2017 obligation is $2.2 million and obligated in November 2016 then 12 months later the project will have a total obligation of $5,623,000 or 50% of the original contract. It is highly unlikely the remaining 50% of the contract will be obligated in November 2017 for disbursement by the end of the project in late May 2018. The FY 2017 AVC planning and budgeting outlined below reflects this reduced funding and time horizon while still seeking to achieve the originally stated objectives and targets of a fully funded program. A. Situational Information Concerning Program Objective The most important situational information (i.e., progress, delays and implementation issues) from FY2016 was the lack of a signed MOU between USAID and the Ministry of Agriculture and Water Resources (MAWR) legally authorizing the AVC project in Uzbekistan. AVC staff found ways and means to implement project related activities without an MOU and using the only legal document authorizing DAI Global, Ltd.’s presence in-country (Resident Representation status). AVC implemented project activities in FY2016 for 29 of the 52 weeks without an MOU and using only the Resident Representation status as the legal basis for operations. A signed MOU by both parties was effective on 6th September 2016 and the project held an official Launch Event within 10 days of the MOU signing. Resident Representation status is intended for private international companies exploring possible investment opportunities within Uzbekistan and are reviewed and issued by the Ministry of Foreign Economic Relations, Investment and Trade (MFERIT). Some typical USAID project type activities can be justified under this status while others cannot. Through local legal representation and guidance from MAWR staff responsible for project coordination and oversight a subset of expected USAID project activities could be legally implemented without the MOU. Some of these restrictions included - no large scale trainings, as these required official project recognition, - no sponsoring of Uzbek citizens not employees of DAI Uzbekistan on external travel - no direct engagement with public institutions - no expatriate travel outside the capital city - no expansion of project activities to new provinces and districts - limited to working with private sector partners on one-by-one basis While these limitations did not completely shut down AVC activities, as the following report recounts, they did pose significant problems to achieve the scale of activities and impact expected in the original contract. It should also be noted that two major deviations from this list of proscribed activities were achieved by the direct intervention of both the USAID Country Office and the US Embassy in Uzbekistan via specific and official Diplomatic Notes (DN) submitted to the Ministry of Foreign Affairs in consultation with MAWR. These two activities were the year-long support to the tissue culture lab at the Mirzaev Horticultural Research Institute (a public institution) and the university exchange visit to Latvian Agrarian University (LAU) by a delegation of Uzbek academics. The initiative, support and effort
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