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Usaid/Lebanon Lebanon Industry Value Chain Development (Livcd)

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Usaid/Lebanon Lebanon Industry Value Chain Development (Livcd) USAID/LEBANON LEBANON INDUSTRY VALUE CHAIN DEVELOPMENT (LIVCD) PROJECT LIVCD QUARTERLY PROGRESS REPORT - YEAR 5, QUARTER 4 JULY 1 – SEPTEMBER 30, 2017 OCTOBER 2017 This publication was produced for review by the United States Agency for International Development. It was prepared by DAI. Contents ACRONYMS ................................................................................................................................... 3 PROJECT OVERVIEW .................................................................................................................. 5 EXECUTIVE SUMMARY ............................................................................................................... 6 KEY HIGHLIGHTS ........................................................................................................................ 8 PERFORMANCE INDICATOR RESULTS FOR Q4 FY17 AND LIFE OF PROJECT ............. 11 IMPROVE VALUE CHAIN COMPETITIVENESS ..................................................................... 17 PROCESSED FOODS VALUE CHAIN...................................................................................... 17 HONEY VALUE CHAIN ............................................................................................................. 25 RURAL TOURISM VALUE CHAIN ........................................................................................... 33 OLIVE OIL VALUE CHAIN............................................................................................................... 40 POME FRUIT VALUE CHAIN (APPLES AND PEARS) .......................................................... 46 CHERRIES VALUE CHAIN ........................................................................................................ 53 AVOCADO VALUE CHAIN ...................................................................................................... 57 GRAPES VALUE CHAIN ............................................................................................................ 60 RURAL BASKET VALUE CHAIN ............................................................................................. 69 CROSS CUTTING ACTIVITIES ................................................................................................. 72 ACCESS TO FINANCE .............................................................................................................. 72 MARKETING (MARKETING INTELLEGENCE AND PROMOTION) ................................... 73 WATER & ENVIRONNEMENT .................................................................................................. 83 ANNEX 1: INDICATORS PERFORMANCE TRACKING TABLE .......................................... 85 ANNEX II: LIVCD GRANTS TO DATE .................................................................................... 87 ANNEX III: LIVCD QUARTERLY FINANCIAL INFORMATION .......................................... 88 2 ACRONYMS AUB American University of Beirut CCIAZ Chamber of Commerce Industry and Agriculture in Zahle CDCS Country Development Cooperation Strategy ESIAM Ecole Supérieure d’Ingénieurs d’agronomie Méditerranéenne EDA Ehmej Development Association EOI Expression of Interest ESS Electro Static Spraying (ESS) FCCIAL Federation of Chambers of Commerce, Industry and Agriculture in Lebanon FDA U.S. Food and Drug Administration GMP Good Manufacturing Practices GNFF Georges N Frem Foundation HF Hariri Foundation IDAL Investment Development Authority of Lebanon IPTT Indicator Performance Tracking Table LARI Lebanese Agriculture Research Institute LIBNOR Lebanese Standards Institution LIVCD Lebanon Industry Value Chain Development LMT Lebanon Mountain Trail MSME Micro, Small and Medium Enterprise NDU Notre Dame University NGO Non-Governmental Organization OEA Order of Engineers and Architects PPP Public-Private Partnership PSC Production Service Center RAD Rock Climbing Association for Development RMF Rene Moawad Foundation 3 RTE Ready to Eat SAL Société Anonyme Libanaise (Joint Stock Company) SARL Société a Responsabilité Limitée SBR Shouf Biosphere Reserve SCSA Sannine Cooperative for Sustainable Agriculture SLFI Syndicate of Lebanese Food Industrialists SKU Stock Keeping Units SOQO Seal of Quality and Origin (for olive oil) USAID United States Agency for International Development USJ Saint-Joseph University PIRS Performance Indicators Reference Sheets PRODES Promotion et Développement Social 4 YEAR 5 QUARTER 4: JULY 1- SEPTEMBER 30, 2017 PROJECT OVERVIEW LIVCD is a five-year activity implemented through a contract (No. AID-268-C-12-00001) signed with DAI in September 2012. The LIVCD activity contributes to USAID/Lebanon Development Objective 2: “Enhance economic opportunity for the poorest segments of Lebanese society, particularly in areas outside metro Beirut.”1 LIVCD contributes to this USAID/Lebanon Development Objective by providing assistance to micro-, small-, and medium-sized enterprises, including farmers and entrepreneurs in rural areas, to upgrade targeted value chains and support jobs and incomes. In the initial phase of the activity in Year 1, LIVCD conducted in-depth assessments of 10 value chains (and shorter assessments for four additional value chains), to select target value chains for upgrading according to the following selection criteria: 1) Competitiveness, i.e., which of the value chains have the potential during the period of the project to be fully upgraded and compete successfully in domestic and international markets; 2) Development impact. i.e., which of the value chains offer broad-based positive impacts in the rural sector in Lebanon and have the potential to integrate small and medium farmers and businesses into larger more competitive value chains; this set of criteria also includes gender and youth; and 3) Feasibility, i.e., which value chains offer the opportunity for LIVCD to facilitate positive and real change within the life of the project and within the contract budget. These assessments identified the constraints and opportunities for each of the value chains to increasing competitiveness and an upgrading strategy with a range of activities to address these constraints. 2 The following value chains were selected and approved by USAID in May 20133. Pome Fruit (Apples and Pears) Stone Fruit – Avocado Stone Fruit – Cherry Grapes Olive Oil Processed Foods Honey Rural Basket Rural Tourism and handicrafts Floriculture (removed in Year 2) 1 Per the USAID/Lebanon draft Country Development Cooperation Strategy, provided to LIVCD by Performance Management Plan for Lebanon 2 A concise review of the main findings from the detailed value chain assessments is provided in the Value Chain Synthesis, dated April 2013. 3 COR concurrence on recommendations to select value chains received May 22, 2013. 5 EXECUTIVE SUMMARY During the quarter LIVCD team completed its annual project work plan for the remainder of the project which includes the recently approved sixteen month extension period. Approval of the year 6 work plan was received from LIVCD COR in August allowing the LIVCD team to focus on implementation of activities for the upcoming final year. The LIVCD team prepared and submitted seven grant proposals to USAID for review, all of which were approved or in the final stages of approval by the end of the quarter. The co-investment contribution from LIVCD for these grants was just over . In addition, as of the end of the quarter, a number of other grants were being finalized and are expected to be submitted for USAID review during October. Grants to be implemented in year six will cover all value chains but with an emphasis on both the apple and cherry value chains. Under preparation during the quarter was a large proposed grant, under the pome fruit value chain, to support post-harvest activities leading to enhanced competitiveness in the Caza of Bcharre in North Lebanon. As of the end of the quarter this proposal was at an advanced stage of preparation with a draft ready for USAID review to be submitted in early October. The third NXP disposition to grantees was prepared and finalized during the quarter and will be submitted for USAID review in the first week of October. This disposition covers items purchased between years one to four of the project for 45 different grant supported activities across all LIVCD value chains. Each of the associated grant agreements under this disposition is now complete. In addition the grants team focused on ongoing closure of several other grants and will be preparing next disposition on an ongoing basis. Several field visits were made by the newly appointed LIVCD COR during the quarter to a wide range of LIVCD supported activities including grapes in the Bekaa Valley, avocado in South Lebanon and food processing in Mount Lebanon. Such visits are welcomed by LIVCD partners and provide an excellent opportunity for the USAID representative to see first-hand progress made, to discuss with local partners implementation challenges, to observe and discuss sustainability beyond the life of project support and to make any recommendations. During the quarter LIVCD team finalized impact studies for both the honey value chain and the rural tourism value chains. The detail from both studies is available for the LIVCD year five annual report which will be completed as required during October 2017. These impacts studies provide valuable insights on LIVCD support in both of these value chains, highlighting the wider contribution made over the previous four – five years. In both studies recommendations and future
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