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Feed the Future Knowledge-Based Integrated Sustainable Agriculture in Nepal (KISAN) II Project Year Three First Trimester Report July 15, 2019 to November 15, 2019

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Feed the Future Knowledge-Based Integrated Sustainable Agriculture in Nepal (KISAN) II Project Year Three First Trimester Report July 15, 2019 to November 15, 2019 Feed the Future Knowledge-Based Integrated Sustainable Agriculture in Nepal (KISAN) II Project Year Three First Trimester Report July 15, 2019 to November 15, 2019 KISAN II PROJECT YEAR THREE FIRST TRIMESTER REPORT PAGE 1 AID-367-C-17-00001 FEED THE FUTURE KNOWLEDGE- BASED INTEGRATED SUSTAINABLE AGRICULTURE IN NEPAL (KISAN) II PROJECT YEAR THREE FIRST TRIMESTER REPORT JULY 15, 2019 – NOVEMBER 15, 2019 CONTRACT NUMBER AID-367-C-17-00001 DISCLAIMER This report is made possible by the generous support of the American people through the United States Agency for International Development (USAID) under the Feed the Future initiative. The contents are the responsibility of Winrock International and do not necessarily reflect the views of USAID or the United States Government. Cover photo: Durga Thapa, a farmer in Nuwakot who receives technical assistance and inputs from the Jagaruk Cooperative, sells her quality produce at the cooperative’s collection center and vegetable outlet in Chhahare. (Photo credit: USAID Feed the Future KISAN II Project/ Robic Upadhayay) KISAN II PROJECT YEAR THREE FIRST TRIMESTER REPORT PAGE 2 AID-367-C-17-00001 TABLE OF CONTENTS Acronyms ................................................................................................................................................... 4 EXECUTIVE SUMMARY ............................................................................................................................. 6 Introduction ................................................................................................................................................ 8 Key Output Level Indicator Results......................................................................................................... 10 Update On Activity Implementation ........................................................................................................ 12 Collaboration with Government of Nepal ............................................................................................ 12 Component 2: Strengthen the Competitiveness, Resilience, and ............................................................. 18 Inclusiveness of Selected Agriculture Market Systems ........................................................................... 18 Component 1: Improve The Productivity of Selected Agriculture Market Systems ............................... 33 Component 3: Strengthen the Enabling Environment Of Selected Agriculture Market Systems............ 41 Component 4: Increase Vulnerable Communities Ability To Act On Business Opportunities Within Selected Market Systems ......................................................................................................................... 48 Component 5: Apply Collaboration, Learning, and Adaption to Market Systems Development ............ 51 Monitoring, Evaluation, and Learning (MEL) ......................................................................................... 55 Grants Under Contract ............................................................................................................................. 57 Operational and Communication Activities ............................................................................................. 59 Partnerships, Collaboration, and/or Knowledge Sharing ......................................................................... 62 Select Activities and Targets for Next Trimester ..................................................................................... 63 Annexes ................................................................................................................................................... 65 Annex 1: Success Stories ..................................................................................................................... 65 Annex 2: Summary of Signed MOUs in Y3T1 .................................................................................... 66 Annex 3: A Summary of Signed Partnership Agreements in Y3T1 .................................................... 67 Annex 4: Location map of KISAN II private sector firms ................................................................... 68 Annex 5: Location map of grantees and their catchment areas............................................................ 69 Annex 6: Detailed Implementation Plan (DIP) .................................................................................... 70 Annex 7: Performance Indicator Tracking Table (PITT) .................................................................... 87 KISAN II PROJECT YEAR THREE FIRST TRIMESTER REPORT PAGE 3 AID-367-C-17-00001 ACRONYMS ADD Agriculture Development Directorate ADP Agriculture Development Plan ADS Agriculture Development Strategy ADS-JSR Agriculture Development Strategy-Joint Sector Review AI Artificial Insemination AITC Agriculture Information and Training Center ANROPI Association of Nepalese Rice, Oil and Pulses Industries AKC Agriculture Knowledge Centre APS Annual Program Statement AWP Annual Work Plan BLB Branchless Banking BLP Business Literacy Program BPRC Business Promotion Research & Communication Pvt. Ltd. CAIDMP Center for Agricultural Infrastructure Development and Mechanization Promotion CBS Core Banking Solutions CCDABC Center for Crop Development and Agro-Biodiversity Conservation CEAPRED Center for Environmental and Agricultural Policy, Research, Extension and Development CLA Collaborating, Learning, and Adapting CT Community Trainers DAA District Agriculture Alliance DAFACOS Dadeldhura Farmers’ Cooperative Society Limited DAG Disadvantaged Groups DCC District Coordination Committee DCCI District Chambers of Commerce and Industry DEPROSC Development Project Service Center DFTQC Department of Food Technology and Quality Control DOAD Department of Agriculture Development FAW Fall Armyworm FNCCI/AEC Federation of Nepalese Chambers of Commerce and Industry Agro Enterprise Center FWEAN Federation of Woman Entrepreneurs' Association of Nepal GAP Good Agricultural Practices GESI Gender, Equality and Social Inclusion GON Government of Nepal GUC Grants Under Contract GWG Goat Working Group HICAST Himalayan College of Agricultural Sciences and Technology IPM Integrated Pest Management KISAN II PROJECT YEAR THREE FIRST TRIMESTER REPORT PAGE 4 AID-367-C-17-00001 JNSC Joint National Steering Committee JSR Joint Sector Review JTA Junior Technical Assistant KUSOM Kathmandu University School of Management LSP Local Service Provider M&E Monitoring and Evaluation MFI Microfinance Institutions MOALD Ministry of Agricultural and Livestock Development MOLMAC Ministry Land Management, Agriculture, and Cooperatives MOU Memoranda of Understanding MSD Market Systems Development MT Master Trainers NARC National Agriculture Research Council NLBO National Livestock Breeding Office NPPO National Plant Protection Office NSAF Nepal Seed and Fertilizer Project NSR New Siddhartha Refrigeration OSC Overseas Strategic Consulting Ltd. PAHAL Promoting Agriculture, Health, and Alternative Livelihoods Project PDCCD Planning and Development Cooperation Coordination Division PERSUAP Pesticide Evaluation Report and Safe Use Action Plan PIFAC Partnership Innovation Fund Advisory Committee PITT Performance Indicator Tracking Table PMAMP Prime Minister Agriculture Modernization Project PPD Public Private Dialogue PQPMC Plant Quarantine and Pesticide Management Center PSE Private Sector Engagement SABAL Sustainable Action for Resilience and Food Security Project SACCOs Saving and Credit Cooperatives SBCC Social and Behavior Change Communication SFCS Small Farmers Cooperative Society SMT Senior Master Trainers TC Technical Committee TOT Training of Trainers USAID United States Agency for International Development VHLSEC Veterinary Hospital and Livestock Services Expert Center ZECC Zero Energy Cooling Chamber ZOI Zone of Influence KISAN II PROJECT YEAR THREE FIRST TRIMESTER REPORT PAGE 5 AID-367-C-17-00001 EXECUTIVE SUMMARY During this first trimester in Year 3, the Feed the Future Knowledge-based Integrated Sustainable Agriculture in Nepal (KISAN) II Project made progress identifying and addressing constraints within key market systems through its private sector-led facilitative approach, which promotes the business case for buyers, intermediaries, and service providers to improve their business outcomes through more substantial engagement with producers and other value chain actors. Below are some highlights from the trimester’s achievements across KISAN II components. GON Coordination and Leverage. With KISAN II’s activities well underway, local government partners and other potential investors have begun to observe and directly support successful businesses and KISAN II-promoted approaches in their jurisdictions. This trimester, a total of Nrs. 5,982,020 in government funds was either delivered or committed to KISAN II partners or households. These funds came from federal entities, such as Prime Minister Agriculture Modernization Project (PMAMP), or directly from local municipalities. In Bheri Municipality alone, Nrs. 2.5 million was delivered to KISAN II partner, Kasturi Cooperative, towards construction of a vegetable collection center, with an additional Nrs. 1.4 million committed for a vegetable transport vehicle and a cold storage facility. More details on this partner’s growth can be found in Annex 1: Success Stories. KISAN II’s high-level Government of Nepal (GON) coordination also thrived this trimester, with regular engagement with the Joint
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