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, 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 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 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 by both USAID and the US Embassy are recognized and gratefully acknowledged as without their support these two highly successful activities would not have been possible in FY2016.

B. Deviations from the FY 2016 Work Plan

Given the late FY2016 MOU signature, MAWR guidance and USAID/US Embassy Diplomatic Notes described above the actual activities implemented significantly deviated from the FY2016 Work Plan. Project activities worked within the general guidelines and framework of the Work Plan but limited activities which were legally and financially viable given the legal and funding status of the project.

C. Administrative Issues

There were no major issues in the administrative side of project implementation in FY2016 aside from those affiliated with the lack of a signed MOU. AVC successfully obtained re-registration of DAI’s Resident Representational status early in FY2016 which provided the legal basis for remaining in Uzbekistan until the MOU was eventually approved in September 2016.

AVC was able to implement activities as DAI Global, Ltd. and within the limits outlined in the legal charter for Resident Representation provided foreign companies in Uzbekistan. For example, the Resident Representational Charter does not provide for duty-free import of goods so the project was unable to procure any goods on external markets for use in project implementation, including procurement of IT equipment. However, there was no such limitation on travel outside of Uzbekistan so the project gave priority to Market Exploration visits under Component #3 (Marketing), exchange visits to tissue culture laboratories in California (Components #1 and #4), an exchange visit to India (Component #2) and an exchange visit with Latvian Agrarian University (LAU) for Uzbek academicians (Component #4). Determining what was permitted within the boundaries provided by Resident Representation status allowed the project to engage in project supported activities throughout FY2016.

D. Staffing Issues

No major staffing issues were encountered in FY2016.

The beginning of FY2016 was marked by the hiring of the remainder of the technical positions proposed under the contract. One technical position was left open (“cross-cutting components”) in anticipation it would be best to fill once the project could engage directly with the Vegetable Research Institute. The hiring of the remainder of the administrative positions was postponed until early in the new calendar year because the lack of a MOU had constrained the geographic and activity expansion envisioned in the contract. By spring 2016 the project was fully staffed per the contract terms except for the remaining technical position.

In early summer 2016 the Senior Monitoring and Evaluation (M&E) Specialist resigned and the position advertised, recruited and finalists vetted throughout the summer. None of the finalists had both the requisite M&E experience and horticultural background to fill the position. The most qualified applicant came from a health background and eventually took a position with another donor program implementing an activity in the applicant’s area of expertise.

Given the expected shortfall in FY2017 funding and resultant impact on project staffing and activities, AVC intends to not fill either of the two remaining open positions (remaining technical position and Senior M&E). The Senior M&E position is designated “Key Personnel” in the contract and is the subject of a contract amendment request by DAI to the RCO in Almaty. AVC feels the position can be covered at lower cost by a combination of the Junior M&E Specialist and long-distance consulting, on a part-time basis, with the former Senior M&E Specialist. With the MOU signed and approved, AVC activities planned with the VRI will be covered by existing technical staff in an effort to further lower overall costs.

III. PERFORMANCE MONITORING & EVALUATION

A. Indicators

Of the ten indicators monitored by AVC only six could be captured and reported (#4-6, 8-10) due to implementation issues arising from the lack of project status resulting from a MOU signed with only weeks left in the FY. The four indicators unable to be collected (#1-3, 7) were those requiring field survey techniques in the rural areas to collect data. Under the Resident Representation legal status AVC staff were not authorized to engage in this sort of activity in rural Uzbekistan during FY2016.

The six indicators which could be monitored were those not requiring field survey data and are reported below and in the overall summary indicator table which follows.

Indicator #4 : Consulting Services Target=5 Actual=5 AVC worked with a total of five local service providers to integrate project produced material into the goods or services they provide to their clients. A broad geographic spread was included in the selection with input service providers from the three provinces in the Ferghana Valley (Andijan, Ferghana and Namangan) and two outside the Valley (Tashkent and Samarkand). Of course, these five are not limited to providing services within their home provinces and, indeed, offer services throughout the country and neighboring countries. All five provide horticultural consulting services on a fee basis and receive no direct financial support from AVC.

Indicator #5 : Hectares under improved technologies Target=2,000 Actual=2,173 The majority of this indicator came from the Production Component Hectares Share (60%) and the balance from the Marketing Component (40%). The Province Marketing component contributed in terms of the hectares involved (ha) of Total Surkhandarya in the AVC international standards program which involved larger 964.2 44% Tashkent 558.5 26% companies interested in either organic or GlobalGAP standards. Andijan 305 14% The organic standards involved only raisins while GlobalGAP was Jizzakh 140 6% for fresh fruits and vegetables. None of these standards was Samarkand 78.2 4% achieved in FY2016, as these usually require multiple years to Namangan 51 2% achieve compliance, but a significant amount of hectarage was Fergana 50.8 2% under the required improved technologies to begin the standards Bukhara 25 1% compliance programs. TOTAL 2172.7 100%

The Production Component contributed the largest share to this indicator by working with a large number of individuals orchards and vineyards. A summary of the contribution by province by value and percent of total is presented in the table above. Surkhandarya is the largest contributor because it was the focus of the joint training (see Section IV.A.1.a below) which allowed AVC to provide training under the auspices of another donor. In fact, Surkhandarya is the one province of Uzbeksitan in which AVC is not authorized to work but the team was able to provide assistance in collaboration with the International Fund for Agricultural Development’s (IFAD) program. Tashkent was large contributor as well as Andijan due to their large population densities while Jizzakh values represent a large melon producer with whom AVC is working.

Indicator #6 : Investment Target=$1 million Actual=$1.016 million The majority of this indicator (67%) originated from activities in Component #2, Post-Harvest support and represents the growing investment in the cold storage portion of the fresh fruit value chain. Other contributing Components include Production (27%) and Marketing (5%). The Marketing portion again originates from investments required to establish international standards while production is a mixture of investments in horticultural best practices ranging from trellises to pest and disease to advanced irrigation. The provincial breakdown of contributions also highlights the importance of cold storage investment to this indicator with a total of 46% of total investment in the 3 Ferghana Valley provinces and Tashkent the highest individual province with 30% of total.

Indicator #8 : Improved Education Target=2 Actual=2 AVC staff and its international consultants assured that both tissue culture theory and practical techniques were provided to both employees and interested students at Mirzaev Horticultural Research Institute. AVC staff worked with the Vegetable Research Institute to train and equip their staff to deal with the threat of the tomato leaf miner (tuta absoluta). Note that Uzbekistan is one of the first countries in Central Asia to be actively collecting data on this pest which threatens the tomato industry throughout the region.

Indicator #9 : Organizations Assisted Target=50 Actual=50 All four project components contributed to this indicator which included input service providers, post- harvest packing and packaging firms, exporters, consolidators, public institutions and registered private companies.

Indicator #10 : Person-hours Training Target=8000 Actual=9693 The person-hours of training are similar in their provincial distribution to the hectares indicator (#5 above). The largest contributing provinces are Tashkent and Syrhandarya with the latter contributing 33% and the former 56% of all training hours. The figures reflect AVC’s limitations due to the lack of an approved MOU for most all of FY2016 with the largest number of trainings limited to Tashkent and in collaboration with other donors. All four Components contributed to this indicator.

The full table of indicator information is summarized in the table below.

USAID 2016 2016 # Indicator Unit Comment Indicator Target Actual Income 1 Change in income for the AVC-assisted value N/A Percent 10% na chain actors, as measured by sales Farm Yield Percent difference in annual farm yields for 2 all targeted crop commodities between AVC N/A Percent 10% na Restricted by Resident Representation legal producer clients and a control group; yield status and lack of MOU per hectare Export Values (International Competitiveness) 3 Change in share of total production that is N/A Percent 10% na exported for targeted commodities from AVC clients Consulting services Local consulting partners employing AVC Number of private sector service providers 4 N/A Number 5 5 materials in Tashkent, Samarkand, Andijan, offer consulting services as result of AVC Ferghana and Namangan provinces implementation Hectares Under Improved Technologies Number of hectares under improved Project Component contributions to total ; 5 4.5.2.-2 Number 2,000 2,173 technologies or management practices as a Production (60%) and Marketing (40%) result of U.S. Government assistance Value of Investments Project Component contributions to total ; 6 Value of new private sector investment in the 4.5.2-38 $ million 1 1.016 Production (27%), Post-Harvest (67%), value chain leveraged by AVC implementation and Marketing (5%) Number Who Have Adopted Improved Technologies Number of producers, processors and others Restricted by Resident Representation legal 7 4.5.2-5 Number 2,000 na who have adopted new technologies or status and lack of MOU management practices as a result of U.S. Government assistance Improved education Mirzaev Horticultural Insitute (in vitro # of institutions that integrated and are using 8 N/A Number 2 2 training) and Vegetable Research Institute project materials and tools in education (pheromone trap training for tuta absoluta) process Number of Organizations Assisted Total number of producers’ organizations, Project Component contributions to total ; 9 cooperatives, trade and business associations 4.5.2.-11 Number 50 50 Production (68%), Marketing (22%) and and community-based organizations receiving Institutions (10%) USG assistance. Number of person hours of training Project Component contributions to total ; Person hours of training completed in private 10 4.6.2.-11 Number 8,000 9,693 Production (48%), Post-Harvest (16%), sector productive capacity supported by USG Marketing (20%), and Institutions (16%) assistance B. Communications and Outreach

The Communications and Outreach (C&O) specialist joined AVC in October 2015 and immediately designed and begin implementation of a C&O strategy for AVC. Only a few tools from the strategy were tested in FY2016 because the project did not have official local recognition via a signed MOU until 6th September 2016, just weeks before the end of the FY. Throughout the year the C&O specialist focused on searching future outreach opportunities both in traditional and modern media and produced outreach materials such as posters, exhibitions, and short videos. In collaboration with the Production and Post- harvest Components and local partners, the C&O specialist captured footage and edited material sufficient to produce training videos on ten topics demonstrating best practices among agricultural value chain actors. Eight posters and two large size banners were also designed and printed for the “Grape variety contest – 2016” and the official AVC Launch Event held on 15th September 2016.

National TV and Radio Company of Uzbekistan provided news coverage of Grape Variety Contest 2106 and AVC Launch Event

Videos were produced and uploaded to YouTube channel in test mode and shared on a Facebook group devoted to Uzbek horticultural interests (after gaining permission from the group’s administrator). The group is followed by more than 7500 horticulture enthusiasts. A total of 8 short test videos received more than 2000 views through this channel. The most popular views, in terms of number of views, coverd the topics of (1) need for pollinator trees in cherry production and (2) thinning practices in grape production. Overall feedback on the videos was positive and group followers expressed interest in seeing more of these sort of short training videos on similar topics in the future.

The MOU signing also provided AVC the right to engage with the official media channels. First coverage of the AVC Launch Event appeared in national media Uzbekistan’s second most popular news website just after the launch event on September 15. The coverage of the AVC Launch Event official media outlets and programs that carried information regarding AVC and the Launch Event included: 1. www.kun.uz news website; (http://kun.uz/uz/news/2016/09/15/usaid-bilan-amkorlikda-uzum-sajli-va-eng-ahsi-uzum-navi-tanlovi- bulib-utdi?q=%2Fnews%2F2016%2F09%2F15%2Fusaid-bilan-amkorlikda-uzum-sajli-va-eng-ahsi- uzum-navi-tanlovi-bulib-utdi) 2. Economic Review of Uzbekistan - business journal; 3. 1st National TV channel Uzbekistan – “Axborot” news program and “Mening bog`im” (My garden) TV program (Video archived); 4. Radio Grand – “Special report” about AVC (Audio archived).

In FY2017 AVC will broaden its outreach activities by producing video and print material on best practices in horticulture and developing the value-chain approach by targeting specific media outlets. AVC’s C&O specialist will identify television, online and print media outlets whose mandate and interest includes agriculturally related topics to elicit the demand for topical areas and challenges to broadening outreach. IV. COMPONENTS

The AVC activity consists of 4 Components; (1) Production, (2) Post-harvest, (3) Marketing and (4) Public Institutions.

Each of the following sections presents the major accomplishments, partner coordination and a brief description of planned FY2017 activities by Component. For a full presentation of FY2017 activities please see the AVC FY 2017 Work Plan document. Training session in Surkhandarya

A. Component 1 – Production

Component #1 is designed “to improve the quality and volume of agricultural production” and is composed of 2 Sub-Components. Sub-Component 1.1 focuses on ways and means of “improving on-farm productivity” while Sub-component 1.2 is centered on “increasing the quality and availability of agricultural inputs.”

1. Accomplishments. a. Assist IFAD-funded horticultural training project in Surkhandarya Province. An International Fund for Agricultural Development (IFAD) funded horticulture project learned of the success of the previous ALP project and requested AVC’s expertise for producer level training. In December 2015, AVC staff assisted their horticultural production training program. Trainings were held in 7 districts in Surkhandaryo Province (Denov, Oltinsoy, Capture Training Video Footage in Bulokboshi Sherobod, Uzun, Kumkurgon, Sariosiyo, Kizirik districts).

Two training programs were held in each district over the course of 14 days. AVC provided information and training on high density orchard and vineyard establishment, planning, and management. Specific sub- topics included pruning, pest and disease control, and others. There were approximately 60 participants in each district, for a total of 420 producers trained.

Grape cluster treatment with gibberellin (left) and green grafting of grapevine (right) footage b. Training Video Production. Component 1 lead worked closely with the AVC Outreach and Communications specialist to film, edit and produce a series of training videos for farmers and other value chain actors on best practices. The Component Lead provided production direction for short videos on the following topics: - Peach tree training methods (mid-May), - Delayed pruning of grapes & green grafting (mid-May); - Grape training techniques (i.e. shoot, leaf, cluster thinning, girdling) (late May); and - Trellises for grapes (early June).

Both video and still photo footage was captured on these best horticultural practices and processed to produce 7 training videos in FY 2016. c. Private Sector Tissue Culture. In FY2016 AVC sought and identified a suitable private sector partner in the field of tissue culture production to complement similar support to the public sector (see Component #4). One such laboratory, De Nova Agro, was identified and AVC began a capacity evaluation and capability assessment to determine the most effective support to provide. Collaboration with the private tissue culture laboratory allows AVC to diversify the partner base, broaden support to this emerging industry, leverage technical assistance and knowledge resources while also reducing sustainability risk of assisting only one local partner.

The evaluation and assessment process identified, in collaboration with their ownership and management, the need for De Nova Agro to diversify their portfolio of lab produced plants to meet private sector demand. AVC introduced 300 explants of cherry rootstocks (Krymsk 5) to test this new facility’s capability to follow the appropriate technical production protocols for this variety. The De Nova Agro team, under close supervision of the AVC Biotechnology Specialist, increased their cherry rootstock population from the initial 300 to 4,000 plants in about a month or a multiplication factor of 13 times. AVC provided continual technical assistance to the De Nova laboratory technicians to ensure the differences between protocols for cherries and the previously produced decorative plants were respected. De Nova Agro is swiftly adapting the new fruit tree varieties provided by AVC Uzbekistan and had produced a total of 10,000 saplings by the end of FY. By future assistance to overcome production bottlenecks De Nova could potentially reach an annual production of approximately 200-300,000 plantlets per year given their present facilities.

Cherry rootstock plantlets in grow room (left) and media jars (right) at De Nova Agro facilities (August 2016)

During the last scheduled FY2016 visit to Uzbekistan of AVC’s international tissue culture expert in August the De Nova began working with new protocols for additional “in-culture” stone and pome fruit rootstocks other than cherry. Three peach-almond hybrid rootstocks, one pear rootstock and one almond variety all known to respond well to laboratory propagation were introduced to De Nova Agro’s portfolio. The three peach-almond hybrid rootstocks have previously demonstrated increased tolerance to saline soils which is a particularly acute problem in Uzbekistan. They are also universal, meaning they are compatible (i.e., can host grafts) with other stone fruits such as peaches, apricots, almonds and plums.

At the end of FY2016, De Nova Agro’s laboratory continued to propagate the cherry rootstocks and run tests on the newly introduced varieties to determine their responsiveness to local laboratory conditions. Regardless of their limitations, De Nova Laboratory produced approximately 6000 cherry rootstock plantlets to the acclimatization stage of the tissue culture production process. This private lab, like the public lab at Mirazaev (see Component #4), confronts a major bottleneck to move these lab produce plantlets to the new, “out-growth” stage, which requires access to a greenhouse to weather the winter. 2. Coordination with Other Partners

International Fund for Agricultural Development (IFAD) IFAD visited AVC with a multi-person team interested in learning more about project activities and experience to inform their on-going design of a new 5-year program of assistance to the horticultural sector in Uzbekistan. AVC invited the entire IFAD design team to attend the AVC Launch Event which they accepted. Additional meetings were held with the IFAD team member responsible for their tissue culture planning and AVC staff arranged a meeting between him and De Nova Agro, the private sector tissue culture laboratory.

UNDP’s South-South Cooperation This meeting was arranged by the IFAD team after the latter first met with AVC staff. The South-South team was interested in information sharing between countries of the developing world and requested copies of any short, technical informational pieces developed by AVC which could serve as examples of what Uzbekistan could share with other countries. The meeting was also attended by AVC’s Project Coordinator at the MAWR. South-South was especially interested in the MEVA app and thought it a good example of the concept and its content. They subsequently invited the MEVA app designer and AVC team member to present the app at a UN Conference to be held in Rabat, Morocco in September 2016. The AVC staff member was not able to obtain an Uzbek Exit Visa in time to attend this event although a presentation was prepared and shared with Conference organizers.

Bioversity International AVC held a series of discussions with the local representation of Bioversity regarding how best to access Bioversity’s network of Uzbek researchers and their knowledge of local fruit varieties to obtain suitable content to populate the horticultural marketing app under development by AVC. The conclusion was to have a sub-contract with Bioversity to provide the requested content (approval request AVC-042).

Syngenta AVC assisted partners to introduce the most appropriate pest and disease control programs offered by Syngenta. AVC arranged a technical exchange between AVC partners in Andijan, Namangan, and Fergana provinces and technical staff of Syngenta at the start of growing season. A series of follow-up consulting sessions were provided by AVC, in collaboration with Syngenta staff, to ensure appropriate pest and disease identification and correct selection and use of pest and disease control programs and products.

Namuna Diyor AVC also partnered with Namuna Diyor, an agricultural input supply firm in Uzbekistan with their representatives attending AVC events to showcase samples of the company’s products and services. Their portfolio of supply and services includes pest and disease control material, agricultural tools and machinery, product relevant accessories, brochures, flyers and others.

AgroHouse Another local input supply company actively involved in AVC organized activities. The company participated in AVC’s opening ceremony with samples of their agricultural inputs including pruning tools, pest and disease control aids, and other production accessories. The company also provided sample pheromone traps for evaluation and control of Tuta Absoluta (tomato leaf miner) on a cost-share basis with AVC.

3. Planned Activities for FY 2017

AVC aims to continue and expand the collaborative partnerships initiated in FY 2016 with branches of state institutions, donor organizations, public and private businesses and others throughout FY 2017. While retaining and improving cooperation with existing partners, AVC will also establish new partnership relations with new economic actors via a series of multiple technical trainings in all targeted districts. AVC will continue to demonstration site approach using early adopting farms to disseminate best production practices, techniques and knowledge as widely as possible.

AVC will continue the national fairs (variety contests) and national exchange programs (NEPs) to enable an efficient spread of technical knowledge and information amongst all participants along the value chain. Bringing together all actors of the value chain including input suppliers, service providers, producers, buyers, research and scientific institutions and others creates a favorable environment for exchange of technical knowledge and market information. AVC facilitated best practices, techniques and technologies are most effectively replicated through the face-to-face discussions, visual demonstrations, vigorous debate, and participant interaction offered by exchange programs and fairs.

AVC will continue to assist the private tissue culture laboratory (De Nova Agro) to successfully integrate stone fruit production processes and techniques into their product line-up. Various production bottlenecks will be addressed in the upcoming production season. De Nova Agro anticipates producing 40,000 saplings in 2017 for commercial sale as the result of its first year of cooperation with AVC. B. Component 2 – Post-Harvest

Component #2 is designed “to improve post-harvest handling and production” and is composed of 2 Sub- Components. Sub-Component 2.1 focuses on ways and means of “facilitating the advancement of cold storage practices” while Sub-component 2.2 is centered on “utilizing improved post-harvest production to reach new markets.”

1. Accomplishments.

a. India Exchange Visit. In collaboration with UNDP’s Aid for Trade Project, an exchange visit was organized to India to learn best grape production and postharvest practices. AVC’s private sector partner, Indian company Grapage, hosted the delegation. Grapage specializes in production of packaging materials for fresh produce, especially fresh table grapes. One of their featured products are sulfur dioxide pads for long-term storage and distance shipment of fresh grapes.

Observing India grape harvest techniques Grape bunches bagged and packed

The Uzbek delegation visited and witnessed the entire “cold chain” and best practices from harvest through post-harvest to final shipment. The participants started the tour in the vineyards where they observed the grape harvest, and continued to a sorting, grading and packaging facility where they experienced modern grape packaging techniques. Along the chain, they talked directly to the Indian growers, packers and storage specialists to understand and appreciate the whole process. The majority of the grapes harvested in the Nashik area of India, site of the exchange visit, are exported to European consumer markets. The visit thus also served to introduce the Uzbek participants to the steps necessary to achieve GlobalGAP certification required for fresh fruits in Western Europe.

New Cold Storage Under Construction Completing Exterior of New Cold Storage b. Cold Storage Support. The AVC Post-Harvest team comprised of the Component leader and the local WFLO/GCCA consultant were able to make one-on-one technical assistance visits to private cold stores in spite of the absence of a project-authoring MOU. Throughout FY2016 this team made site visits to both existing and new partner cold storage facilities to provide site-specific consultations to address needs and current problems. AVC’s team also organized several mini-exchange visits, in-country, especially in the Ferghana Valley to disseminate best practices from existing to new partners. This approach is especially effective for new entrants seeking consultation on design and construction of model cold storage facilities. This component was the largest contributor to AVC’s capital investment indicator in FY2016 and is expected to continue growth in FY2017 given the MOU’s approval in September 2016.

Demand for small-scale cold storage in the provinces is increasing gradually. AVC/WFLO received several requests to provide technical consultation on design and construction of cold storage facilities. Some of these partners built new facilities while Capacity Stored others sought consultation on how best to # Province District Status modify existing facilities. The table at right (mt) produce 1 100 Under construction N/A presents 5 AVC/WFLO partners assisted in Tashkent Parkent FY2016 representing a total of 545 metric 2 225 Completed Grape tons (mt) of cold storage capacity. The first 3 Andijan 70 Completed Grape produce stored in these facilities is also 4 Ferghana Kuvasay 100 Completed Grape provided in this table. AVC/WFLO staff are 5 Namangan Turakurgan 50 Completed Grape/Apple increasingly receiving requests from both TOTAL 545 new and existing cold store owners for consultation on best practices to incorporate “special refrigerated corridors” and “loading/unloading docks.” These techniques have been promoted by AVC/WFLO to upgrade “cold chain” practices and are highlighted during both the national and international exchange visits.

Grape bunches carefully packed – Ferghana Grapes field packed for storage – Ferghana

Inserting sulfur pads – Namangan Stacked grape boxes in cold store – Andijan

c. Grape Storage. One of the highly demanded subject areas requested during AVC/WFLO site visits to cold storage facilities was prolonged storage of fresh grapes. Multiple cold storage owners wanted to store grapes in 2016 but had no hands-on experience as most owners store stone fruits in their first year of operations as the latter requires minimal pre-storage processing. Long-storage of fresh grapes is lucrative as they are a preferred consumption item during New Year’s celebrations in Central Asia. As with any market activity prolonged fresh grape storage is risky, especially for ill-informed new entrants. Several cold storage owners approached AVC/WFLO to assist with grape post-harvest preparation for prolonged storage. The team Stored visited each site and provided the necessary information outlining the entire grape storage protocol. The team also organized mini # Province District Grapes exchange programs Altyarik District where fresh grape production (mt) and postharvest practices are advanced and well ahead of other 1 Tashkent Parkent 300 provinces. The list of assisted cold storage sites and the amount of 2 Namangan Turakurgan 15 fresh grapes stored is provided in the table at right. 3 Ferghana Kuvasay 50 4 50 d. Data Loggers. “Cold chain” practices are not uniform across Bukhara Jondor Uzbekistan, they vary from province to province and even from 5 20 facility to facility. One of the new techniques AVC is introducing to 6 70 Buloqboshi improve cold storage practices for fresh fruits assists with 7 Andijan 20 maintaining the appropriate temperature and humidity of stored 8 Hojabod 20 produce all along the chain. This extends the shelf life of the stored TOTAL 545 produce.

Field packed grapes & orange data logger- Ferghana Fully packed grapes in cold storage - Samarkand

AVC/WFLO staff worked with 6 partner cold stores in FY2016 to install electronic data loggers to monitor and record grape storage temperature and humidity from field to cold store. Final consumer grape quality can be affected by temperature and humidity # District Province variations from harvest time of day to initial pre-cooling to final shipment. 1 Andijan Buloqboshi Data loggers automatically record the temperature and humidity every 30 2 Bukhara Jondor minutes and by connecting to a computer by USB port provide a graphic 3 Bukhara Jondor presentation of both temperature and humidity over time. Analysis of the 4 Namangan Turakurgan resulting graph allows identification of the date and time in which major temperature and humidity variations occurred. The 6 partner cold store 5 Ferghana Altiarik locales participating in the data logger program in FY2016 are presented in 6 Ferghana Kuvasay the table at right.

2. Coordination with Other Partners

The Post-Harvest team of AVC and WFLO/GCCA collaborate on a regular basis with UNDP’s Aid for Trade project for the India Exchange Visits and the introduction of data logger technology into the cold chain industry. The Indian-based company, Grapage, is also a major AVC partner for both the India Exchange Visits and the increasing penetration of sulfur pads in grape cold storage throughout Uzbekistan. The team continues to identify reliable private local vendors in Tashkent and Namangan specializing in cold storage construction.

3. Planned Activities for FY 2017

A follow-up exchange visit is envisioned to India in February of 2017 to India under a cost-share arrangement with the hosts. AVC will continue to collaborate with 1st year India exchange visit participants to update them and provide with further technical recommendations based upon the follow-up visit. The AVC/WFLO team will continue to provide one-on-one recommendations and hold national exchange programs on cold store design, finance, construction, and management to interested parties in both the new and old targeted districts. Both end-of-season (December) and start-of-season (March) cold chain roundtables will be organized to provide a forum for information and knowledge sharing among project cold chain partners. The post-harvest team will continue to focus on grape and raisin production by introducing new techniques and technologies, since it contributes 37% of all exports of Uzbek horticultural products. The results of the data loggers will be used to demonstrate how one degree temperature change can impact grape quality during and identify additional “breaks” in cold chain. C. Component 3 – Marketing

Component #3 is designed to “facilitate market linkages” and is composed of 2 Sub-Components. Sub- Component 3.1 focuses on ways and means to “create new linkages in the domestic market” while Sub- component 3.2 is centered on how “to create market linkages with new foreign markets.”

1. Accomplishments.

a. Melon Exports.. AVC assisted 2016 exports of Uzbek AVC Marketing specialist demonstrates pallet melons to the European Union (EU) market in corners collaboration with local producers. A melon producer from Kashkadarya exported 20 metric tons (mt) to the Latvian market while a Syrdarya producer sent 500 mt to Germany, both were the “Torpedo” variety. USAID assisted these local partners by finding buyers on the international market during the market exploration visits and by introducing a new pallet-related technology to limit damage during storage and shipping. The need for international buyers was identified during AVC marketing team’s visit to Kashkadarya Province in April 2016. Prospective melon buyers were identified during the international market exploration visits to several external markets including the EU.

b. Dried Fruits to Ukraine. In December, regional representatives from Bukhara and Navoi Provinces of the foreign trade company "SFTC Uztadbirkorexport," which is housed under MFERIT, approached AVC for assistance in completing an export contract with an Uzbek- Ukrainian Company. Packaging materials such as corrugated boxes for Uzbek dried fruits were requested to facilitate immediate export to Ukraine before the New Year. AVC assisted by identifying proper packaging materials to meet the Ukrainian buyer requirements and providing 2,000 units of corrugated boxes and linking them with a local packing house. The products were processed and packed at the facility of a company based in Urgut District, Samarkand Province by the exporter from Bukhara Province. The export deal was Customs check of produce prior to successfully completed before the New Year and products received export by the Ukrainian buyer with no defects.

c. Cherry Exports to Korea. AVC assisted local exporters to diversify exports of Uzbek cherries during the 2016 harvest. The focus of this diversification was the Korean market. The cherry export season began at the end of May with an initial export of 80 metric tons, representing around US $500,000 in sales, through two local packing/exporting companies. The end-of-season target quantity of cherry exports to Korea for these two companies was 4 times this figure. AVC assisted these two Uzbek export partners by cost-sharing the expense of Korean phytosanitary inspectors to inspect the produce prior to export, a standards requirement of Korea.

The 2011-15 average value of all fruit exports to Korea, as reported by the UN Trade Map program, is $302,000 Packaged & labelled Uzbek cherries for export and in 2015 fruit export values by Uzbekistan to Korean totaled $161,000. The 2016 cherry exports exceeded these figures even with the first shipments. d. Organic Raisin Export to Germany. Flores Farm Gmbh – a German company, mainly focused on organic and fair trade certified products received their first batch of organic raisins from an Uzbek company. During AVC’s exploratory visit to Europe, the Marketing Team met and discussed potential Uzbek products of interest to their company. The company was mostly interested in buying organic raisins from Uzbekistan. Upon return to Uzbekistan, AVC’s Marketing Team checked among known Uzbek raisin producers and exporters to find a supplier with both the reputation and potential to export to the EU market. AVC technical staff, trained and certified in organic techniques, took sterilized samples of this company’s organic raisins which the company then shipped to the German buyer for analysis. The product was successfully accepted by the German importer.

2. Coordination with Other Partners Sampling sterile raisins for test Korean Air. AVC met with Korean Air to discuss transportation shipment to Germany logistics as they relate to horticultural exports. This meeting resulted in valuable information about export options and modalities. AVC learned this company ships all products from Navoi and interested parties must book space several months in advance. They have more cargo space available for the Dubai route than other locations. It was also noted that to ship cargo it takes 3 hours to arrive in Delhi and 3.5 hours to arrive in Mumbai. Both are potential markets for Uzbek fruits and vegetables. Korean Air stated they had already carried test shipments of Uzbek grapes and cherries for other exporters.

Berad Group. AVC’s Standards Specialist met with a representative from Berad Group – a holding company which includes manufacturing, import-export, and logistics structures. Berad is currently exporting raisins, working with farmers in Payarik District, Samarkand Province. AVC conducted a farmer assessment against organic certification requirements and introduced Berad to the possibility of obtaining organic certification as a group rather than for each individual farmer. A group certification for 17-20 farmers was recommended along with an internal control system to reduce the overall cost of the certification process.

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.

Global GAP. In October 2015, AVC met with an internal auditor from GlobalGAP on visit to Uzbekistan to initiate a compliance progress review of two farms receiving UNDP funding. This GlobalGAP pre-auditor informed that one of the these farms is producing melons while the other produces peach and cherry.

Fairtrade. 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. This follow-on visit was the result of a Voice Over Internet Protocol (VOIP) call with the FairTrade’s Certification Office for the Asia and Pacific regions. The FairTrade Office Manager 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 based in Tashkent.

3. Planned Activities for FY 2017

Market exploration visits in FY 2017 limited to the South Asian markets given their size, limited restrictions on stone fruit imports, already established contacts, and expressed interest in Uzbek produce. AVC will continue to collaborate with the Latvian company’s marketing representatives who visited Uzbekistan in FY 2016 for the Melon Festival in Bukhara. Supply contracts were signed with the Latvian importers for melons in calendar 2016 and they also expressed interest in Uzbek fresh greens and cherries during the 2017 season. AVC will follow-up on potential export deals on melons, greens and stone fruits in FY 2017 between the Latvians and Uzbek partners. A similar follow-up effort will be pursued on the cherry exports to Korea. AVC’s marketing team will continue to collaborate with Berad Agro in their efforts to obtain organic certification for their raisin and dried vegetable exports especially targeted to the European market. AVC will also follow-up and support partners identified in FY 2016 as being the most likely candidates to obtain GlobalGAP certification especially for melons and stone fruits. GlobalGAP certification is required to sell fresh produce into European grocery store chains. With the MOU signed AVC’s marketing team will also make more formal contact with the major public sector entities involved in export promotion and support (ex., Export Promotion Fund, UzAgroExport, etc.). D. Component 4 – Public Institutions

AVC organizes Component #4 into 2 Sub-Components. Sub-Component 4.1 focuses on ways and means to support “research institutes” comprised of Mirzaev Horticulture Research Institute and the Vegetable Research Institute (VRI). Sub-component 4.2 is centered on how on support to “agricultural universities comprised of Tashkent State Agrarian University (TSAU), Andijan Agricultural Institute (AAI) and Samarkand Agricultural Institute (SAI). Only one of these five public entities (Mirzaev) has been collaborating with USAID for several years. During FY2016 AVC was only approved to work directly with Mirzaev among these five institutions. A US Diplomatic Note (DN) to the Uzbek Ministry of Foreign Affairs was required to approve AVC support to Mirzaev in lieu of a signed MOU. The September 2016 signing of the MOU allows AVC to work with all five institutions in FY2017. Protocol for taking K5 cherry ex-plants from root 1. Accomplishments. induction media to acclimatization. a. Mirzaev Tissue Culture Production Complex. Continuing the efforts of the predecessor project (ALP), AVC supported the operational functionality of the in-vitro tissue culture laboratory installed at the Mirzaev Horticultural Research Institute throughout 2016 FY. AVC made significant strides to re-activate the Tissue Culture Lab (TCL) at Mirzaev given the nine month gap between the end of ALP and the DN approval. AVC’s Biotechnology Specialist and international consultants successfully produced a sufficient quantity of cherry rootstocks in FY2016 to assure scalable future production and process optimization experiments. Cherry rootstock quantities produced entirely in the Lab numbered approximately 1,500 ex-plants by the end of December 2015.

Compatibility with Uzbekistan’s climate conditions and soil profiles are key criteria when selecting the varieties to propagate within the Lab. In early FY2016, a small quantity of cherry ex-plants (Krymsk 5, K5) were placed in experimental root induction media and successfully expressed roots. To demonstrate the TCL’s future production ability to Mirzaev staff and management, these root-expressing cherry plantlets were transferred from sterile media to soil for acclimatization in early December.

Considerable scientific progress was achieved in the New Year to improve the functionality of TCL at Mirzaev. AVC staff and consultants resolved a number of issues regarding optimal growth media conditions, acclimatization Krymsk 5 cherry rootstocks transferred to soil for process design, future greenhouse design parameters and TCL staff training. These concerns were evaluated, acclimatization proper recommendations made and solutions implemented. Approximately 1,000 lab-produced, cherry rootstock plantlets were transferred from sterile media to acclimatization in regular 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 Mirzaev’s ornamental flower greenhouses in early spring. Results from these post-lab tests highlighted the need for a greenhouse specific to lab produced plants along with an advanced soil potting (Ellepot) system to complete the tissue culture commercial complex at Mirzaev. The newly Mirzaev-hired lab technicians were approved in mid-March 2016 for hands-on training at the private tissue culture laboratory of De Nova Agro, Ltd. in Tashkent city. They were introduced to media preparation methods, aseptic work techniques, overall plant physiology and provided the necessary theoretical foundations. Their training by the Uzbek owner/operator of the private lab was vital to improve the functionality of the Mirzaev lab as it directly impacted the skills and abilities of the staff.

To relieve bottlenecks in the lab production process the AVC engineer designed, procured and installed upgrades to several limitations of the Mirzaev Lab’s infrastructure. A water storage tank installation (500 liters) was completed 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. Three 30 Updated Grow Room, water tank and electric kilowatt electric power stabilizers were installed to protect power stabilizers the sensitive laboratory instrumentation, particularly the laminar flow hoods and incubators, from power surges and voltage shortfalls. These additions have assured production capacity within the lab at commercially viable levels.

The AVC Biotechnologist and Engineer made an exchange visit to California tissue culture laboratories in the early summer of 2016 to experience first-hand modern in vitro production system practices at commercial scales. The team visited leading US seedling growers Sierra Gold and Tissue Grown to observe in vitro state-of-the-art techniques, technologies and protocols. The experience the AVC staff gained during this trip will inform design of the greenhouse and potting systems required to complete the Tissue Culture Production Complex (TCPC) at Mirzaev.

Their visit also served to further strengthen linkages California visit Grow Room, Lab and Greenhouse between these US industry specialists and Uzbek counterparts initiated under the previous project (ALP). For example, AVC’s Biotechnology Specialist connected with Dr. Dennis Gray, one of the world’s leading experts and pioneers on grapevine tissue culture and precision breeding techniques. Dr. Gray voiced an interest in potentially assisting the AVC effort in Uzbekistan. Mirzaev is interested in expanding their tissue culture portfolio from stone fruits (ex., cherries) to grape production (see Section b., below) and Dr. Gray would be an excellent consultant in this field.

Cherry rootstocks from multiple in-vitro production iterations were moved to Mirzaev’s drip-irrigation site (supported under ALP) in mid-summer to test out- growing conditions. These plants were micro-grafted by the international Tissue Culture Specialist with high- yielding varieties using two methods (T-bud and chip- bud). This grafting also served as refresher training for Mirzaev’s staff on grafting techniques. Fruit tree pruning, regular grafting, integrated pest management (IPM) and watering techniques were also covered. Out-grow & greenhouse with lab produced plants In late summer, the tissue culture team dealt with pest and disease infestations in the Mirzaev greenhouse which threatened to damage the first experimental batches of lab produced cherry rootstocks. The intensive summer sun exposure and heat also posed a potential threat so a shade cloth, to protect the plants from ultraviolet (UV) radiation, and a water pump were installed. The experience of the international consultant in continually identifying and addressing these threats was essential to the survival of this first set of lab produced plants. Portable pump & UV radiation net installation to protect seedlings at Mirzaev Institute b. In vitro grape production research. AVC supported Mirzaev’s administration and researchers to optimize the nutrient media conditions for the production of in vitro grapes. Mirzaev researchers had proposed and were an Uzbek government grant for this initial study. To maximize the efficiency of our support, AVC requested the private lab, De Nova Agro Ltd., to also test the proposed nutrient media for optimal grape propagation to assure replicable results. As a result of this public-private collaborative effort Mirzaev is attempting to introduce several varieties of Uzbek grapes into in-vitro cultures. c. Agricultural Universities.

“Linking Educational Institutions with Private Sector Demand” is a new activity in USAID’s continual support (AgLinks and ALP Projects) to Uzbekistan’s horticulture sector. AVC started activities under this component by exploring the existing agricultural universities and the regulatory framework for the system of Higher Education in Uzbekistan. Only 3 of the 4 agriculture-related universities educate students in edible horticulture - Tashkent State Agrarian University (TSAU), Andijan Agricultural Institute (AAI) and Samarkand Agricultural Institute (SAI). The educational process in these universities is established according to existing legislation (“On Education”, “On National Program for Personnel Training”, Cabinet of Ministers’ Decree “On the State Educational Standards for Higher Education”) and other associated regulatory acts. In addition to these commonly shared acts covering Higher Education, in general, the Government of the Republic of Uzbekistan (GOU) also issued a special Decree to promote education of well-qualified agricultural personnel. This Cabinet of Ministers’ Decree (No. 311, dated 3 November 2015) is entitled, “On further measures to improve the provision of highly qualified personnel to sectors of agriculture and water resources.” Many of the tasks outlined in this Decree are consistent with AVC’s Component 4 objectives.

The specific tasks identified in the Decree include:  To further improve the educational process o Update state education standards, curricula, and class syllabi o Implement information and communication technologies into the educational process o Strengthen cooperation with leading foreign Agricultural Universities o Further development of the material-technical base of educational institutions o Strengthening the integration of education, research, and production

 To improve student internships o Under TSAU create a Center of Educational and Production Internships at the Mirzaev Institute (3-story building and 10 hectares of land are allocated to this new center). . Organization of university and college student internships in Tashkent Province . Assist the research of professors and students in the field of horticulture . Promote innovative technology in seed and sapling propagation

Prior to the MOU signing AVC staff were not authorized to communicate officially with Agricultural Universities and conduct a broad range of activities in the country. As in the case of support to the Mirzaev Institute outlined above, a special Diplomatic Note (DN) was required for AVC staff to engage in limited activities to support the shared objective to “Strengthen cooperation with leading foreign Agricultural Universities.” The approval of this second DN authorized AVC to design, organize and implement an exchange program for Uzbek horticultural professors and researchers to colleagues at Latvian Agrarian University (LAU). Selection criteria for the 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 integrating Western educational approaches.

An Uzbek delegation, consisting of the Department Head for Higher Education within the MAWR and representatives of all partner universities and institutes, spent one week in Latvian on an exchange visit. Uzbek delegation, 9 academicians plus an AVC staff member, experienced LAU’s educational system, development strategy, organizational structure and approach to knowledge and technology transfer. The exchange visit was extremely successful as remarked by one of participants: “We were impressed with the University laboratories as they provide students with hands- on, practical experience. A lot of time and effort are expended in the practical lessons. This is one The LAU Rector signing an Agreement of of the aspects that we could definitely work on in Cooperation with Uzbekistan Agricultural our institute.” Universities At the end of the visit, the newly established links between LAU and their Uzbek colleagues were formalized in the signing of three separate Cooperation Agreements by the Rector of LAU and the three Rectors of the Uzbek agricultural universities.

These official agreements were subsequently operationalized via the first student lecturer exchange between LAU and the Uzbek universities. A TSAU graduate student (Ph.D.) and lecturer sought and found a competitive summer school opportunity offered by LAU. She heard of the newly authorized Cooperation Agreements through university presentations made by the professors who attended the Latvian exchange visit. Due to the quality of her application package, including description of her research topic, she was chose for the LAU summer program and exempted from tuition and lodging costs. At the end of the program she was acknowledged by a merit-based certificate as the most active and passionate trainee among 30 students from 10 different countries. She was the only Central Asian participant in the program which focused on integrating different innovative tools and methods into landscape and orchard planning and design. The Latvian instructors and organizers expressed their interest to Uzbek graduate student receives LAU deepen and expand exchange visit cooperation between Certificate the LAU’s summer program and Uzbek universities.

Through personal contacts established between AVC staff and the Uzbek professors involved in the LAU exchange visit, the project was able to discretely support the internship objectives of Cabinet of Ministers’ Decree 311. The jointly shared objective of internships is to enable students to gain practical work experience which supplements their classroom learning. During the summer of 2016 AVC was able to deepen understanding of the existing internship system within Uzbekistan’s agricultural universities and specifically how they are planned, organized and implemented. Under existing Uzbek regulations internships must be incorporated into all higher educational curricula. There are three types of university internships – (1) introductory, (2) study and (2) work practice. AVC staff accompanied several student AAI students study internship at Horticulture internship groups in Andijan and Samarkand provinces to Farm. Andijan, May, 2016. learn more about the structure, content and experience of the students, professors and hosting institutions. Introductory internships are exactly what their name implies, an introduction to an area of expertise. Study internships, by contrast, involve a group of students led by the responsible professor to relevant demonstration sites at which specific topics are explained regarding choice and impact of technology, techniques, equipment, tools, etc. Work internships, in contrast, are for individual students who are located at a particular site for the duration of the internship and work as a temporary staffer in a given position (ex., pruner, irrigator, sprayer operator, etc.). AVC will use this information to design and propose to the partner institutions an internship support program during the summer 2017 internship season.

Coordination with Other Partners

Implementation of the above-mentioned activities, excepting the literature review, required regular, open and close cooperation and coordination with different Government of Uzbekistan agencies and institutions. For example, the Latvia exchange visit to Latvian Agrarian University for Uzbek academics from 5 public institutions required cooperation and coordination among the US and Latvian Embassies in Tashkent, MAWR, Ministry of Foreign Affairs, Latvia Agrarian University and the 5 Uzbek Agricultural Universities and Research Institutes.

SAI student study internship at Agromir’s plant. Planned Activities for FY 2017 Samarkand, July 2016 The activities carried out in FY2016 provided a solid base for planning project interventions in FY2017. AVC identified internship programs as a key opportunity to support agricultural universities and disseminate best practices to a large number of students. In FY 2017 AVC staff will approach specific departments within each university to suggest potential hosts among the project’s partners such as champion farmers, cold store owners and processors. Preference will be given to those internship programs, which can reach the largest number of students at the earliest point in their education for the lowest cost (i.e., mostly “introductory” and “study” internships).

The core of any education, particularly higher education, is the availability of concise modern textbooks, student manuals, lecture notes and contemporary digital interactive education tools and applications. AVC will engage the cooperating Universities to develop edible horticulture related training materials throughout FY 2017. DAI’s contract for implementation of the AVC Activity requires an Educational Assessment be completed. This assessment will be conducted in FY 2016 in cooperation with local consultants and the targeted universities. AVC was unable to conduct the assessment during FY 2016 due to the absence of an approved MOU which would allow direct engagement with local agricultural universities.

AVC will continue its extended technical support to the TCPC at the Mirzaev Horticultural Institute through various expert trainings and hardware improvements. Procurement of a soil potting system for the TCPC will be the main FY2017 FY procurement. AVC’s team will continue efforts to identify potential international knowledge exchange partners for the TCPC and Uzbekistan’s in-vitro industry, as a whole. New production bottlenecks will be encountered, diagnosed and alleviated. Informational seminars and presentations will play a vital role in raising awareness of this new, but highly promising, input supply sector in agriculture and biotechnology of Uzbekistan. V. ANNEXES

A. Success Stories

B. Photos

C. Inventory

D. List of Reports, Analyses, Presentations & Other Key Documents Produced

E. Personnel Summary by Position with Level of Effort & Salaries

F. Subcontracts with Description, Purpose & Amount Fruitful Investment Opportunities in Uzbek Cold Stores

Uzbek cold store owner/operators recover one-third or more of their capital investment in their first year of operations by following best industry practices.

“Cold storage is a prosperous business in our region and I recovered 30 % of my investment in summer 2016 alone”- cold store owner from Turakurgan District, Namangan Province.

October 2016 – Uzbekistan is the largest fruit and vegetable producer (F&V) in Central Asia. Highly valued Uzbek F&V are not available on world markets in the quantities demanded due to a shortage of cold storage facilities. The UN’s Food and Agriculture Organization estimates 30-40% of world food production is lost before reaching markets due to improper post-harvest storage, processing and transportation facilities. A dysfunctional cold chain results in lower competitiveness and lower export quantities and values.

Shelf life and quality attributes of fresh produce are directly dependent on temperature. Lower temperatures generally yield Consolidator logs in produce received better fresh produce. Fresh produce should be pre-cooled – Namangan Province immediately after harvest maintained until it reaches to final consumer. Slight changes in the temperature along the chain diminish the quality and shorten the shelf life of fresh produce.

There are big investment opportunities in the F&V cold chain in Uzbekistan and high-tech facilities and practices have appeared in the country. USAID has been at the forefront of disseminating both information and knowledge about best cold chain practices in Uzbekistan since 2009. For example, the introduction of international standard designs and practices such as “loading docks” and “refrigerated corridors” plays a crucial role in assuring immediate productivity gains in this nascent industry. Dock design must consider optimal load and unload heights for local trucking standards to assure forklifts and workers are efficient without design obstacles. Similarly, refrigerated corridors protect produce from outside temperatures during the transfer process from cold store Pre-cooled apples for export - Tashkent Province to refrigerated transport.

Uzbek cold store owners make money by renting out space to exporters for pre-cooling and storing their own, or someone else’s produce, to sell later at a higher price. Cold storage owners participating in USAID’s training programs report recovering 30-40% of their capital investment in the same season by providing pre-cooling services to exporters. They also expect to recover Loading dock with refrigerated area – Ferghana another 20-30% of their investment by renting unused Province space for prolonged storage of fresh produce. Any produce they store on their own account in the cold store only increases their overall recovery rate. Almost all Some owners started taking reservations for next season and almost all participating cold store owners state they plan to expand further in the next year to meet demand. Loading Dock Area - Ferghana Province Success Story “Container of organic raisins delivered to Germany”

Taking samples in accordance Russia has been the traditional market for both fresh and dried with EU organic requirements fruits and vegetables grown in Uzbekistan. Recent advancements within the horticultural and agribusiness sectors in Uzbekistan have stimulated local producers and processors to seek new, more beneficial markets to maximize their income. Western Europe is particularly attractive perspective market as prices are generally higher than what the Russian markets offer. USAID’s Agricultural Value Chain Activity (AVC) conducted an exploratory visit to the European Union (EU) horticulture markets in early 2016 to garner information to diversify and increase Uzbek exports. AVC’s Market Exploration team identified both markets and specific buyers in select European markets with interest in Uzbek fruits and vegetables. Photo: Jasurbek Rustamov Upon return to Uzbekistan, AVC staff linked a local fruit USAID’s AVC International Standards Specialist exporter with a German trading company interested in importing organic and Fair-Trade certified products. Taking samples for residue analysis USAID provided technical assistance to the Uzbek exporter to obtain appropriate samples in order to perform residue analysis “This is the first time we sold in conformity with international organic standards. The exporter organic fruits to Europe at then sent the samples to Germany for testing against the premium prices which are 30% Produce Safety Standards (PSS) required for certified organic higher than non-organic. produce to enter the EU market. USAID helped us find a new source of income and our first Based upon the laboratory results the German importer placed container of raisins an order for a first container (20 metric tons) of organic raisins. successfully made it to “This is the first time we sold organic fruits to Europe at Germany.” – Local exporter. premium prices which are 30% higher than non-organic. USAID helped us to find a new source of income and our first container USAID’s technical help is of raisins successfully made it to Germany.” – Local exporter. transforming the Uzbek fruit Using modern global expertise USAID is helping Uzbek fruit export sector introducing and vegetable producers, processors and exporters discover exporters to new products and new products and markets to increase incomes. markets. ANNEX B: Photos

Com- Photo- # pon- CY # Descriptive grapher Photo Photo ent Month Kamil 1 SEP 2016 1 Fergana farmer awarded prize during Grape variety contest 2016, Tashkent region Yakubov Kamil 2 SEP 2016 1.a Farmer presenting his grapes at Grape variety contest 2016, Tashkent region Yakubov AVC Production specialists assisting farmers in Pest and disease control in Buloqboshi, Andijan Kamil 3 FEB 2016 2 region Yakubov Kamil 4 JUN 2016 3 AVC production specialists and demo site in Quvasoy, Fergana region. Yakubov 5PRODUCTION JUN 2016 4 AVC Production specialist demonstrating agricultural practices for training videos. Gholib 6 SEP 2016 5 Tuta Absoluta damage in late 2016 season, Kosonsoy district, Namangan Province Mahmudov Sunnt 7 DEC 2015 6 Joint training with IFAD on Horticultural and Postharvest Practices in Surhandarya Province Djalalov Mumin 8 NOV 2015 7 Grape quality check. Altiarik District, Fergana Isamiddinov Adham 9 FEB 2016 8 India Exchange Visit to witness best production and postharvest practices Kuchkarov 10 SEP 2016 9 Temperature and humidity monitoring with data logger. Mumin 11 SEP 2016 10 Grape sorting & packing process for cold storage, Jondor District, Bukhara Isamiddinov POST-HARVEST Sunnt 12 MAY 2016 11 Construction process of new cold storage building in Turakurgan District, Namangan Province Djalalov Freshly packed cherries pre-cooled in new cold storage facility in Turakurgan, Namangan Mumin 13 JUN 2016 12 Province for shipment to Russia Isamiddinov Kamil 14 AUG 2016 13 Elbi Co. Ltd (Latvia) representatives taste test Uzbek melons at Melon festival 2016, Bukhara Yakubov Jim 15 JAN 2016 14 Uzbek stand with dried fruits at the bazaar in Latvia Krigbaum 16 JUL 2016 15 AVC marketing specialist demonstrates pallet corners in Syrdarya region. Ulugbek 17 SEP 2015 16 Presentation on marketing opportunities of shade-dried Sogdiana raisins in Payarik, Samarkand Bekchanov Furkat

18 MARKETING MAY 2016 17 Packaged & labelled Uzbek cherries ready for export (Tashkent). Alimukhame 19 MAY 2016 18 Organic inspection and certification by AVC specialist. Berad Agro Co. Parkent, Tashkent. Rahmatulla Agro Tex Bukhara representatives examine products at customs check prior to shipment Bakhodir 20 DEC 2015 19 (Bukhara). Karimov 21 JUL 2016 20 AVC visits Agromir company, Samarkand.

22 MAY 2016 21 Farm site visit in Bulungur district, Samarkand region.

23 MAY 2016 22 AVC Education Component specialist assist Andijan Agrarian Institute student internships.

24 JUN 2016 23 Dr. Aktam Akramov demonstrates apple drying technology. Tashkent State Agrarian University. INSTITUTIONS Dr. Yusupov, Samarkand Agrarian Institute, provides practical grape production training to 25 JUN 2016 24 masters degree students. ANNEX D: List of Reports, Analyses, Presentations & Other Key Documents Produced

# Type Mth CY Descriptive 1 Q1 2015 AVC UZB Quarterly Report - FY 2016 Q1 - Oct-Dec 2 Q2 2016 AVC UZB Quarterly Report - FY 2016 Q2 - Jan-Mar 3 Q3 2016 AVC UZB Quarterly Report - FY 2016 Q3 - Apr-Jun Contractual 4 Q3 2016 AVC UZB Quarterly Report - FY 2016 Q4 - Jul-Sep Reports 5 Q1 2016 AVC UZB Work Plan - FY 2016 6 Q1 2016 AVC UZB Public Outreach Strategy 7 Q1 2016 AVC UZB Activity Monitoring and Evaluation Plan 8 Market Exploration Report - India Market Nov 2015 9 Jan 2016 Market Exploration Report - N.Europe Exploration 10 Feb 2016 Market Exploration Report - Dubai & Gulf Reports 11 Sep 2016 Market Exploration Report - Asia Food Logistica 12 Mar 2016 USAID Uzbekistan - AVC Project - New Silk Road Regional Trade Workshop.pptx 13 Mar 2016 USAID Uzbekistan - Regional Trade Presentation - New Silk Road Regional Trade Workshop.pptx 14 Mar 2016 AVC for Donors Meeting.pptx 15 Presentations Jun 2016 MEVA 2.0 Presentation_ICT4AG.pptx 16 Aug 2016 AVC UZB - How to Export - RUS.pptx 17 Sep 2016 AVC All Components - Embassy Event - AVC Project- ENG.pptx 18 Sep 2016 AVC All Components - launch event - AVC Project- ENG.pptx 19 Dec 2015 IFAD Training 20 Dec 2015 TC Lab Support - John Driver 21 Jan 2016 Pruning Groups - ALP 22 Feb 2016 Market Exploratory Trip Report - N. Europe & Russia - Feb 2016 23 Apr 2016 Cold store Orchard Exports 24 Apr 2016 Latvia Exchange Visit 25 Apr 2016 Abdugaffor Cold Store 26 Apr 2016 TC Lab Operations at Mirzaev 27 Apr 2016 Tissue Culture Basics 28 One Pagers Apr 2016 Organic Raisin Exports 29 May 2016 Uzbek Cherry Exports to Korea 30 May 2016 Uzbekistan Among Top Five Cherry Producers 31 Jun 2016 Latvia Summer school 32 Jul 2016 PepCon & ICTforAg Conference 33 Aug 2016 Grape Girdling 34 Aug 2016 Latvia Sustainable Fruit Growing Conference 35 Sep 2016 Melon Festival - Bukhara 36 Sep 2016 Ferghana Valley Training with UzAgroExport 37 Sep 2016 Fruit Logistica Asia - Market Exploration Visit 38 Sep 2016 AVC UZB Gender Strategy 39 Other Jun 2016 DAI AVC Tissue Culture Lab - Final Report - Mitchell 40 Aug 2016 Tissue Culture Report - Driver & Touraev