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USAID/LEBANON LEBANON INDUSTRY VALUE CHAIN DEVELOPMENT (LIVCD) PROJECT LIVCD QUARTERLY PROGRESS REPORT - YEAR 3, QUARTER 4 JULY 1 – SEPTEMBER 30, 2015 FEBRUARY 2016 This publication was produced for review by the United States Agency for International Development. It was prepared by DAI. CONTENTS ACRONYMS ...................................................................................................................................3 YEAR 3 QUARTER 4: JULY 1 – SEPTEMBER 30 2015 ............................................................... 4 PROJECT OVERVIEW .......................................................................................................................................... 4 EXCUTIVE SUMMARY .......................................................................................................................................... 4 QUARTERLY REPORT structure ...................................................................................................................... 5 1. LIVCD YEAR 3 QUARTER 4: RESULTS (RESULTS FRAMEWORK & PERFORMANCE INDICATORS) ................................................................................................................................6 Figure 1: LIVCD Results framework and performance indicators ......................................................... 7 Figure 2: Results achieved against targets .................................................................................................... 8 Table 1: Notes on results achieved ................................................................................................................... 8 Figure 3: quarterly Performance Results ........................................................................................................ 9 2. VALUE CHAIN UPGRADING STRATEGIES & ASSISTANCE: HIGHLIGHTS & CHALLENGES (Y-3 Q-4) ............................................................................................................10 Pome Fruits (Apples and Pears)....................................................................................................................... 10 Stone Fruits (Cherries) ......................................................................................................................................... 12 Avocado ...................................................................................................................................................................... 15 Grapes ......................................................................................................................................................................... 18 Olive Oil ....................................................................................................................................................................... 22 Honey ........................................................................................................................................................................... 27 Rural Basket .............................................................................................................................................................. 33 Rural Tourism ........................................................................................................................................................... 36 Processed Foods .................................................................................................................................................... 41 3. CROSS CUTTING ELEMENTS & SPECIAL THEMES .................................................45 Access to Finance .................................................................................................................................................. 45 Marketing (Marketing Intelligence & Promotion) ........................................................................................ 45 Institutional Capacity Building ............................................................................................................................ 47 Water & Environment ............................................................................................................................................ 49 Gender Considerations ......................................................................................................................................... 51 ANNEX 1: INDICATOR PERFORMANCE TRACKING TABLE ............................................52 ANNEX II: LIVCD GRANTS TO DATE ....................................................................................53 ANNEX III: QUARTERLY FINANCIAL INFORMATION ERROR! BOOKMARK NOT DEFINED. LEBANON INDUSTRY VALUE CHAIN DEVELOPMENT (LIVCD) PROJECT – Y3Q4 REPORT 2 ACRONYMS EOI Expression of Interest GMP Good Manufacturing Practices IP Integrated Development IPTT Indicator Performance Tracking Table JAZ Jezzine and Zafarani Company LARI Lebanese Agricultural Research Institute LIBNOR Lebanese Standards Institution LIVCD Lebanon Industry Value Chain Development LOP Life of Project MSME Micro, Small and Medium Enterprise PSC Production Service Center PPPs Private Public Partnerships SCSA Sannine Cooperative for Sustainable Agriculture SLFI Syndicate of Lebanese Food Industrialists USAID United States Agency for International Development PIRS Performance Indicators Reference Sheets LEBANON INDUSTRY VALUE CHAIN DEVELOPMENT (LIVCD) PROJECT – Y3Q4 REPORT 3 YEAR 3 QUARTER 4: JULY 1 – SEPTEMBER 30 2015 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 for each of the value chains the constraints and opportunities 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) EXCUTIVE SUMMARY As of September 30th 2015, LIVCD has completed 35 grants, 7 grants are completed and in the close-out process, 78 grants are active, and 4 have been approved by USAID for implementation. 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. LEBANON INDUSTRY VALUE CHAIN DEVELOPMENT (LIVCD) PROJECT – Y3Q4 REPORT 4 Some of the quarterly highlights are as follows. July: LIVCD conducted a demonstrative training in Jbaa (South Lebanon) on summer pruning for apples. A professional trainer explained the importance of such practices to around 12 apple farmers, focusing on three main reasons: to improve the quality of this year’s crop, to improve the quantity of next year’s harvest, and to increase the production of Grade A apples. July: LIVCD established a climate-controlled packaging room for farmers in Rachaya Al- Foukhar to sort, pack and store grapes and a bought refrigerated truck to transport the packaged grapes from the climate-controlled packaging room to the market. July: LIVCD organized a conference on the honey sector in Lebanon on July 22 in Beirut. The event was attended by H.E. Minister Akram Chehayeb, Minister of Agriculture, and H.E. U.S. Ambassador . Around 120 persons attended. The conference was highly successful and many attendees praised all the efforts made by LIVCD. The conference received wide media coverage in several newspapers, magazines, web portals, and on televisions. July: LIVCD supported the Union of Jezzine Municipalities through a marketing campaign promoting the Jezzine region of the mountainous South Lebanon. The campaign took place in malls in Beirut and Saida and encouraged shoppers to visit the region, as well as promoted products from the region. August: The Rural Tourism Strategy for the Caza of Aley was launched
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