AGRICULTURAL VALUE CHAINS (AVC)

ACTIVITY

FY 2018 – QUARTER 2 - REPORT

January - March 2018

April 2018

This publication was produced for review by the United States Agency for International Development. It was prepared by DAI Global, Ltd.

AGRICULTURAL VALUE CHAINES

(AVC)

FY 2018 - QUARTER 2 - REPORT

JANUARY – MARCH 2018

Agricultural Value Chains (AVC) - #104-A Kichik Beshog’och Street , Uzbekistan 100025

For the U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT

Contract No. AID-176-C-15-00001

April 2018

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. ACRONYMS

AAI Agricultural Institute ADB Asian Development Bank AVC Agricultural Value Chains Activity (2015-18) (USAID) B2B Business-to-Business CIS Commonwealth of Independent States COP Chief of Party DAI DAI Global, Ltd. DIAL Digital Impact Alliance EU European Union FE Farm Enterprise F&V Fruit and Vegetable FY Fiscal Year G&A General and Administrative GAP Good Agricultural Practices GCCA Global Cold Chain Alliance GDF Gold Dried Fruit GEF Global Environment Facility GOU Government of Uzbekistan HACCP Hazard Analysis Critical Control Point HCFC Hydro-chloro-flouro-carbons ICA Independent Consulting Agreement (DAI Global) ICT Information and Communication Technology IFC International Finance Corporation IM Instant Messaging IR Intermediate Result ISO International Standards Organization LLC Limited Liability Company LULST Latvian University for Life Sciences and Technology MAWR Ministry of Agriculture and Water Resources (Uzbekistan) MASHAV Israeli Agency for International Development (in Hebrew) MOU Memorandum of Understanding mt Metric ton MSU Michigan State University NEP National Exchange Program ODC Other Direct Costs OH Overhead OSU Ohio State University PERSUAP Pesticide Evaluation Report and Safe Use Action Plan RDCS Regional Development Cooperation Strategy (USAID) SAI Agrarian Institute TCPC Tissue Culture Production Complex TSAU Tashkent State Agrarian University (Uzbekistan) UE Unitary Enterprise UK United Kingdom ULO Ultra-Low Oxygen UNDP United Nations Development Program USAID United States Agency for International Development UV Ultraviolet UZS Uzbek Soum VOIP Voice Over Internet Protocol VRI Vegetable Research Institute (Uzbekistan)

CONTENTS

A. BACKGROUND ...... 1 Project Goals and Objectives ...... 1 Project Components ...... 1 Georgraphic and Commodity Focus ...... 1

B. ADMINISTRATIVE ...... 2 Personnel ...... 2 Other ...... 2

C. PROJECT ACTIVITIES UNDER COMPONENTS ...... 3 COMPONENT 1: IMPROVE THE QUALITY AND VOLUME OF AGRICULTURAL PRODUCTION ...... 3 Task 1.A. Improve On-Farm Productivity ...... 3 Task 1.B. Increase the Quality and Availability of Agricultural Inputs ...... 5 COMPONENT 2: IMPROVE POST-HARVEST HANDLING AND PRODUCTION ...... 7 Task 2.A. Facilitate the Advancement of Cold Storage Practices ...... 7 Task 2.B. Utilize Post-Harvest Production to Reach New Markets...... 9 COMPONENT 3: FACILITATE MARKET LINKAGES ...... 11 Task 3.A. Create New Linkages in the Domestic Market ...... 11 Task 3.B. Create Market Linkages with New Foreign Markets ...... 12 COMPONENT 4: LINK EDUCATIONAL INSTITUTIONS WITH PRIVATE SECTOR DEMAND ...... 14 COLLABORATION WITH OTHER DONOR PROGRAMS ...... 18 WOMEN IN AGRICULTURE ...... 18

D. MONITORING AND EVALUATION ACTIVITIES ...... 20 Monitoring and Evaluation ...... 20 Communications and Outreach ...... 21

E. ENVIRONMENTAL COMPLIANCE ...... 23 Monitoring ...... 23 Mitigation ...... 23 Issue(s) ...... 23

F. FINANCE…………………………………………………………………………………………..24 Disbursements ...... 24 Commitments ...... 24 Obligations ...... 24 Issue(s) ...... 24

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A. BACKGROUND

1. 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 (2008-11) and AgLinks Plus (2011-2015) projects.

# Province Districts AL ALP AVC Total

1 Samarkand Taylok Payarik Samarkand Bulungur 3 5 5 2 Pop Kosonsoy Chortok Yangikurgan 2 6 6 3 Ferghana Kuvasoy Ferghana Kuva Altyaryk 1 4 4 4 Tashkent Ohangaran Bustonlik Zangiata Parkent Kibray 5 5 5 Andijan Andijan Bulokboshi Hujaobad Marhamat Jalakuduk Kurgantepa 5 6 6 Jondor 1 1 7 Karakalpakstan 0 1 8 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 MOU 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.

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B. ADMINISTRATIVE

1. Personnel

With no signed AVC contract extension by the end of this quarter the Field Office was required, under Uzbek labor law, to provide two months’ written notice to all local staff of the end of their existing contracts. Once an extension contract is signed then the field project can provide new labor contracts to the local staff. If the local labor contracts are not signed by end May 2018 then all local labor will be released.

2. Other

No other notable administrative issues were encountered this quarter.

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C. PROJECT ACTIVITIES UNDER COMPONENTS

The 2nd quarter of the USAID fiscal year marks the beginning of the horticultural production season with a focus on preparations for improved performance in 2018.

1. Component #1: Improve Quality & Volume of Agricultural Production

a. Improve On-Farm Productivity

Spring Orchard and Vineyard Design, Installation, and Management.

During March 2018 AVC conducted extended series of trainings on orchard and vineyard design, installation and management in collaboration with Andijan Agricultural Institute (AAI) and Konsalt Madad Hamkor LLC, a local consulting company from Tashkent. The training participants included professors, students, and other institute staff. The training was designed and coordinated by Konsalt Madad Hamkor, LLC in collaboration with other local service provider groups collaborating with AVC from Zangiota, Parkent, Turakurgon, and Andijan districts. Two plots were identified by AAI management with 6.5 hectares for orchards and 1.0 hectares for grapes. Professors and students plan orchard tree spacing

Technical preparations began with evaluation of select soil and water samples to determine the best types and varieties of fruits and grapes to plant under the local conditions. Students were directly involved in the taking of samples serving as “hands-on” practical experience. Soil and water analysis were performed by the university and independent laboratories, results compared and variety selection made in concert with AAI professors and students. Soil sample analysis provided valuable information about the soil texture, avail organic and non-organic chemical elements, pH levels (acidity), electrical conductivity, and salinity. The data arising from the analysis serves to inform multiple decisions in the orchard and vineyard design process including layout design, soil preparation, rootstock and cultivar selection, choice of irrigation and fertigation requirements, installation, trellis and plant training options and Training Underway on Orchard Design operations management.

AVC technical staff, 30 consultants from service provider groups and AVC pruning groups provided 1067 person-days of training during 12 days on technical topics such as orchard planning, tree spacing, soil preparation, tree trellising and training, plant material pre- planting preparation, pruning, Interviews and Footage Captured to Produce Digital Training Aids for Public irrigation, and pest and disease Dissemination control. Over the course of the training 7 varieties of apples, 4 varieties of plums and 7 varieties of grapes were planted to offer the widest possible experience with different cultivars for the university students and staff. Students gained valuable knowledge and new technical skills through this “on-the-job” training approach which enabled their direct

3 involvement at each technical stage of the operations. AVC filmed the entire process to serve as a digital record and training aid for wider public dissemination social and commercial media channels.

MASHAV Training. AVC and the Israeli Agency for International Development Cooperation (MASHAV in Hebrew) shared the costs for a group of Uzbek horticulturalists to attend a 3-week training in Israel on “Entrepreneurship, Marketing and Post-harvest in Agriculture.” The training purpose was to share with participants advanced Israeli technologies and practices including the use of know-how by private and cooperative entrepreneurs, modern marketing methods, post-harvest technology to preserve fresh produce, quality and safety of agricultural products in the local and export markets, and strategies for export of competitive products to meet international standards. The four person Uzbek delegation consisted of three private sector fruit and vegetable exporters along with a team leader from AVC MASHAV Program Participants project.

The course was specifically designed for Russian speakers and included 24 representatives from 10 countries including Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Ukraine and Uzbekistan. In addition to the technical content participants gained from exchanging experience with like-minded trainees and established potential linkages for future partnerships. The training was a mixture of classroom instruction, consultations and field site visits. The training content contained theoretical and practical material on cultivation, calibration, harvest, postharvest, marketing, export, transportation and logistics of fresh fruits and vegetables.

Field demonstrations exposed participants to the entire Israeli value-chain for sweet peppers, fresh melons (cantaloupe), potatoes, herbs and citrus produce. As one participant remarked “we saw in reality how the concept of “from farm to fork” works having experienced MASHAV Marketing Course everything from pre-production to final sales.” Trainees were especially impressed with the scale of operations at one of Israel’s largest fresh produce exporters “MehadrinTnuport Export”. Actually, “Mehadrin” is one of the largest fruit exporters in the world. Other site visits included the logistics center for the Israeli supermarket chain “Supersol” and a wholesale market in Zrfine. Participants took special note on the emphasis on quality, packaging and prices for fresh fruits and vegetables in Israel.

One of the striking moments was the visit to Israeli farmers in the Arava desert where they grow high quality sweet peppers and export huge volumes. Careful allocation of natural resources, especially water, was stressed on the trainees by the Israeli instructors. Participants also visited "NaanDanJain", one of the leading producers of drip irrigation systems, and witnessed best practices in advanced irrigation of crops. The Uzbek participants were particularly impressed by the different configurations installed that combine rainfed and drip irrigation by product type to maximize output with minimum water input. Other training modules of particular interest to the Uzbek trainees were calibration,

4 MehadrinTnuport Export factory packing and storing, as well as warehouse management techniques.

b. Increase the Quality and Availability of Agricultural Inputs

Private Sector Tissue Culture.

AVC’s private tissue culture lab partner, De Nova Agro, worked tirelessly through the months of January through March to meet the domestic order for cherry rootstocks from the major Uzbek juicing company, Agromir. Based upon the successfully completed order with Gold Dried Fruit (GDF) last year by De Nova Agro, Agromir placed an order for 250,000 cherry rootstocks (Krymsk 5 variety) for the 2018 season. To complete the “acclimatization” phase of the tissue culture production process, De Nova Agro signed a long-term greenhouse lease agreement with an enterprise in Yangiyul District, Tashkent Province. The Yangiyul greenhouse is Yangiyul greenhouse with lab produced Krymsk-5 providing 0.25 hectares which is sufficient to handle rootstocks undergoing acclimation and grow-out phases 125,000 lab-produced plantlets in one batch.

AVC’s Biotechnology specialist continues to provide assistance to De Nova Agro to solve plant propagation issues associated with the volume production of the Krymsk-5 cultivar. Recall that the 2017 production season was the first year that De Nova Agro produced a commercially viable quantity of locally produced cherry rootstocks based upon the technology transfer of and training on the appropriate laboratory protocol by AVC’s staff and international consultant. De Nova is also working to fulfill a second order for the 2018 season from GDF for 100,000 Krymsk 5 cherry rootstocks. The success of the De Nova Agro sales to these two large Uzbek horticultural companies (GDF and Agromir) has elicited increased interest in lab-produced, true-to-type, virus-free rootstocks within Uzbekistan and has significantly increased demand for lab-produced planting stock over imported varieties.

AgroInnovation Center.

The Agroinnovation Center was founded by the MAWR to serve as a scientific and industrial training site for Ministry and other personnel. In addition, the Center has the legal status of a Unitary Enterprise (UE) which, while run by the State, has the right to engage in commercial operations. With assistance from South Korean partners a greenhouse (0.4 hectares; tomatoes under drip irrigation) has been completed and a cold storage facility (1000 mt) is under construction. The Ministry requested Trellis with Tension System for Netting Support AVC assistance with the creation of a 0.5 hectare demonstration orchard. The Ministry, with combined USAID and South Korean support, plans to show the advantages of the full value chain from production to storage to sale at this one demonstration site.

During this quarter AVC installed a trellising system to the high-density (intensive) apple orchard previously established in the spring of 2017. Local contractors, engaged by AVC, continued the installation of the drip irrigation and anti-hail netting systems to protect the young trees. The anti-hail netting additionally serves to protect from birds, pests and extreme sunlight as it offers Netting over trellises (background) with pump 5 station (foreground) – AgroInnovation Center ultraviolet (UV) screening. The head pumping station for the drip irrigation system was completed along with a protective fence and canopy. Once fully completed the site will serve as a practical training ground for multiple horticultural activities including tree trellising and training, intensive orchard spacing, punning, pest and disease identification and control, drip irrigation, fertigation, weed control, and crop protection.

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2. Component #2: Improve Post-Harvest Handling & Production

Analogous to Component #1, the 2nd quarter of the USAID fiscal year marks the beginning of the horticultural season in post-harvest with activities focused on preparatory events for the upcoming season.

a. Facilitate the Advancement of Cold Storage Practices

Cold Chain National Exchange Program (NEP).

AVC, in collaboration with the Global Cold Chain Alliance (GCCA), organized a national exchange program (NEP) for advanced cold chain actors to share and discuss latest techniques, technologies and market trends with a focus on Ultra Low Oxygen (ULO) systems. A total of 64 participants from 8 Uzbek provinces attended, representing various subsectors including cold storage owners, service providers, growers, grocery stores, university professors and exporters. ULO is a subset of controlled atmosphere technology in which oxygen, carbon dioxide and Presentations on Ultra-Low Oxygen (ULO) Systems nitrogen levels are controlled in addition to temperature and humidity. ULO systems are most commonly used in the long-term storage of apples, pears and vegetables.

The NEP began with a morning session to introduce ULO, its uses and local service providers. The Chief Engineer of a local engineering company (TechnoCool LLC) provided a detailed presentation on how ULO systems function, their key components, cost efficiency, storable produce and latest innovations in the field. This presentation was followed by two cold storage construction companies (ProVent, LLC and NANO Agro Technology Group, LLC) who shared information regarding their services in the construction of different size and types of cold storage. Latest information on safe and cost-effective cold storage and warehouse disinfection methods were provided by Touring the Korzinka Cold Store Facility Stop Microbe, LLC.

A lively question and answer session ensued with the most frequently discussed topics focused on ULO systems and how to obtain bank financing to upgrade or expand existing facilities. Representatives from NANO Agro Technology Group, LLC mentioned they could also provide technical consultation to support document preparation to obtain loans. Participants continued discussions during the coffee break while exchanging business cards and contact information.

The afternoon was reserved for a field site visit to Korzinka’s modern facility (5300 mt), near Kuyluk wholesale market, with separate cold storage rooms Premium Quality Produce Presentation by Korzinka for vegetables, fruits and produce under ULO (mostly apples). The objective of this visit was to demonstrate ULO in operation in Uzbekistan as well as to link growers and cold storage owners with Korzinka to supply the latter with fresh produce for their chain of grocery stores. Korzinka’s Director welcomed the visitors and presented the company’s history, current status and future plans. The Fresh Produce Department director explained their purchasing process from both intermediate suppliers and growers describing the major issues they encounter with sourcing fresh produce. 7

The Manager for Specific Crops described their requirements for each type of fresh produce including the varieties in highest demand, sorting and grading standards, single layer packaging, reliable and timely delivery. These requirements were supported by a well-presented demonstration by Korzinka of premium quality fresh crops with the appropriate packaging they seek to offer customers in their stores.

On-Site Cold Store Consultations.

AVC and GCCA planned and organized targeted visits to several AVC partner cold storage facilities to provide timely, site-specific consultations including information on expansion possibilities and options. A total of 40 cold storage facilities representing almost 24,000 metric tons of capacity were visited this quarter and provided consultations to address individual issues, needs and achievements (see table at right). Visits to neighboring successful cold stores were organized for those seeking to enter the market or expand their facilities. Site visits Example of Bitter Pit in Apples provide an opportunity for potential investors to visualize the equipment, construction materials, design elements, operations, maintenance and stored produce. In addition, the visitors can ask questions of existing operators regarding potential suppliers and learn from their experience. Capacity # Province District Company Type Main Activity While the beneficiaries receive (mt) individual insights during these 1 Dolanalik Bogbon Mevasi Production, Cold Store 30 2 Private Production, Cold Store 100 Bulokboshi visits, AVC and GCCA staff 3 Davron Agrosanoat AgriFirm, cold store 800 identify patterns and recurring 4 Izzatulloh Aviatrans LLC Production, Cold st, Export 1200 Andijan problems common to the 5 Uzum Sharof Export AF AgriFirm (under construction) 80 Hujaobod industry. During this quarter the 6 Hojaobod Agro-Holod Service Cold Store, 400 major issues identified were 7 Andijan city Inter Agro Star (only fruits) LLC Cold store, grocery store 2000 physiological disorders with 8 Kurgantepa Inter Agro Star (only vegetables) LLC Livestock, production,cold store 2000 9 Far Vodiy Minora Plus Cold store 300 Ferghana stored apples; “bitter pit” and 10 Cold Store Innovations LLC Cold store 200 “superficial scald.” Project staff 11 PE Sohibjon Holmatov Production, Exporter, Cold store 1200 provided explanations of the 12 Ferghana Altyaryk M.Boymatov FE Production, Cold store 300 causes of these physiological 13 Yumugboy Erkin FE Production, Cold store 600 14 Azizbek MHA FE Production, Cold st 150 180 disorders. These disorders Kuvasay appear around 30-45 days after 15 Ashur Madaminojon Production, (Under 16 Chust Olmos Farm Tek LLC Coldconstruction) Store 400 harvest and are related to 17 Private Cold Store 280 calcium deficiency, hot and dry 18 Namangan Turakurgan Kumidon Diyori FE Production (PLAN to build) tbd summers during the vegetative 19 Consolidator Consolidator (PLAN to build) tbd period, under irrigated orchards, 20 Namangan Zamin Iftighori FE Production (PLAN to build) tbd heavily pruned trees, young 21 Hatirchi Ramazonbek Tabassumi LLC Production, Cold st 150 200 22 Nusrat Bogi FE Prodcution, cold store 50 plants, poor ventilation within the Navoi Qiziltepa 23 Farmer Production (PLAN to build) tbd cold store facility and harvesting 24 Zarafshon Agro Fresh LLC Cold store, export 2000 unripe and/or overripe fruit. The 25 JoiZar FE Cold Store 600 Jondor major causes of these 26 Olim Said Subhiddinbek Production, Cold Store 400 Bukhara physiological disorders are 27 Buhoro Sahovat Savdo Fayz LLC Cold store 350 rooted in the field and not 28 Kogon Plan to build tbd 29 Tursunov Asrorhon Boglari Cold store directly related to the operations 500 30 Mahmudov Umedjon Production/Cold Store 200 within the cold storage facility. 31 Samarkand Samarkand Sobirov Ergash boglari Production/Cold Store 100 32 Mahmudov Umedjon Farmer (Plan to build) 100 AVC and GCCA staffers 33 Private Farmer/Cold Store 100 received multiple requests during 34 Djizzak Jizzakh Bahmal Holod Bahmal Holod 1200 the quarter to provide technical 35 Chirchik Chirchik Tehno Dom Transport logistic (Plan to build) tbd 36 Tashkent Anglesey Food (Korzinka.uz) Grocery store/fresh produce 5300 and design consultations on both Tashkent 37 Zarkent Zarkent Universal Production / Cold store 1200 new and expanded cold storage 38 Kibray "Frozen Products" LLC Production/Cold store/Process 1200 facilities. Some had already 39 Honka Private Production, (Plant to build) tbd Khorezm installed the foundation, 40 Koshkopir Athambek Munisa AF Production / Cold store 200 construction and assembling TOTAL 23,770 8 works, and others were still awaiting approvals from the relevant state entities for cold store construction. Project staff will remain in regular contact with each of these new partners to respond to their inquiries regarding design, construction, contractor selection, and equipment options. During the third quarter of 2018, AVC staff will revisit them to monitor progress, assist to debug problems and provide recommendations on operations and maintenance of their facilities in time for the 2018 horticultural marketing season.

b. Utilize Improved Post-Harvest Production to Reach New Markets

“Sovuqhona” Telegram group promotes cold store practices At the annual end-of-season cold storage workshop held in late December 2017 an instant messaging group specifically for cold chain sector actors was initiated to promote and share best cold chain and postharvest practices. Entitled “Sovuqhona” (“cold room” in Uzbek), there were 190 subscribers to the group by the end of this quarter representing different sector actors along the cold chain including service providers, cold store owners, fresh

produce wholesalers, grocery stores, new entrants who wants to build, university professors and exporters, and others involved with handling fresh produce.

Information and best practices are discussed and shared on a daily basis. Topics discussed to-date include prolonged storage of certain crops (ex., carrots, apples and grapes), improved small scale packaging, proper fresh produce stacking for air circulation, ventilation systems for controlling gases and odors (ex., ethylene, carbon dioxide) plus the need for refrigerated corridors. Group members usually obtain instant responses to their queries from other members within the group. Group members on international exchange visits or attending exhibitions regularly share information, photos and short Sovuqhona Screenshot from South Africa videos of fresh produce related material including visits to orchards, packing houses and grocery stores that stimulate animated discussions within the group. During the past quarter, group members on both personal and professional international visits posted and shared photos from multiple countries (e.g., India, Mexico, South Africa, Tajikistan, Russia, Kyrgyzstan and Kazakhstan).

Forced air cooling systems

AVC/GCCA started design of portable “forced air cooling systems” to promote improved cold chain practices. The portable system will consist of fan, tarp and metal structure. The equipment will help the cold store owners “Forced air cooling,” prior to entering a cold store facility, lowers the time required to cool fresh produce while also reducing the cost of cold storage (since the produce enters a pre-cooled condition). Pre- cooling through forced air cooling is especially important to maximize shelf-life of cherries, grapes, peaches, nectarines and other fast perishables. AVC and GCCA staff began designs this quarter on a “forced air cooling system” based upon locally available materials and consisting of a fan, tarp and metal framework. The project plans to test 5 of these systems with targeted cold store owners during the 2018 horticultural marketing season and use their facilities as demonstration sites to neighboring facilities.

As a general rule, one hour delay in pre-cooling shortens fresh produce shelf-life by one day hence, it is important to cool the produce as rapidly and inexpensively as possible. The most important factors which influence prolonging and maintaining the original fresh produce quality at harvest is the timing and duration of the cooling. Simply put, the shorter and quicker the cooling time the longer the shelf-life of fresh produce. The respiration and ripening rate of fresh produce depends directly on its temperature which accelerates at higher ambient conditions. Forced air cooling techniques will be an innovation to most of the present cold store partners working with the AVC/GCCA tandem. 9

India exchange visit

In early March 2018 AVC and GCCA co-sponsored a 10- person Uzbek delegation on an exchange visit to observe the Indian grape value chain which exports fresh produce to Western Europe. The delegation consisted of 6 vertically integrated horticultural exporters, 2 fresh produce purchasing agents from a leading Uzbek grocery chain (Korzinka), one professor from Tashkent State Agrarian University (TSAU) and AVC’s cold chain consultant. The study tour was cost- shared among the host Indian company (22%), AVC (32%) and the Uzbek participants (42%). The purpose of the visit was to observe and learn best grape value chain practices as implemented in India to international export standards. The area visited, Nasik in the Indian state of Maharashstra, is renowned for its high quality, seedless, fresh grapes exported to European Union markets under GlobalGAP certification employing a consolidated value chain approach. Production Visit to Indian Vineyards

The visit and affiliated agribusiness meetings were organized “From Farm to Fork,” starting with production, through harvest, storage, sorting, grading, shipping and including retail sale. First stop was the vineyards to observe harvest procedures like grape bunch thinning, harvesting tools and boxes, sugar levels and transportation time to processing centers. An Indian grape producers association, uniting 8000 farmers and supplying Dole Food Company since 2011, explained their organizational structure which precipitated a lively discussion among the Uzbek participants. The participants took particular note that the majority of grapes grown were seedless varieties for export to Germany, UK, Switzerland, The Netherlands and Gulf countries. The group also visited ancillary input supply facilities where grape guards, cardboard boxes, and reinforcement corners for stacking boxes are produced to support the fresh grape industry. In discussions with the Indian company supplying grape guards to the Uzbek market (JK Enterprise), participants expressed interest in having short-term storage grape guards, in addition to the long-term product presently available on Sorting and Grading Center in India the local market.

Retail food chain outlets were visited throughout the visit which featured Australian (peaches and nectarines), Italian (kiwi and mandarin) and US (apples and pears) origin produce. Uzbek participants felt certain they could potentially supply the Indian market with these and other produce. The Indian response was to express interest in receiving trail shipments, if all Good Agricultural Practices (GAP) were respected. Upon their return to Uzbekistan delegation members immediately began to implement some of the practices they learned during the visit and to share information with others. For example, the TSAU faculty member, a grape specialist from the Fruit and Vegetable Department, held a seminar for faculty and students to present his findings, impressions and recommendations from the 2018 grape value chain exchange visit to India.

India Visit Presentation to TSAU Faculty & Students

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3. Component #3: Facilitate Market Linkages

During the second quarter of FY2018 AVC organized the second in a series of Global GAP Farm Assurer’s trainings in Uzbekistan and made new market linkages via attendance at Fruit Logistica 2018.

a. Create New Linkages in the Domestic Market

Global GAP Farm Assurer’s Training.

AVC collaborated with GlobalGAP and the Ministry of Agriculture and Water Resources to host two, three-day “Farm Assurers Workshops” in Uzbekistan over the course of October 2017 to February 2018. GlobalGAP requirements function on a worldwide basis to assure agricultural businesses adhere to agreed standards of food safety, shelf life and quality, especially for fresh fruits and vegetables. GlobalGAP certification is required for fresh fruit and vegetable exports to enter Western European grocery chains. The training objective was to prepare participants to take the Farm Assurer Exam by the end of the program which, if Interactive GlobalGAP Training Underway successfully completed, yields trained and approved consultants to provide expertise to assist growers to implement Good Agricultural Practices (GAP).

Multiple benefits accrue from producers working with trained GlobalGAP Farm Assurers including a higher rate of passing audits, connecting with potential customers and expanding market options. Farm Assurer’s first-hand knowledge of the GlobalGAP system and latest developments enhance understanding of standards requirements and simplify audit preparation. Since Farm Assurer’s interact with both buyers and sellers they also serve as potential links of quality produce with higher paying customers.

Both the October 2017 and February 2018 trainings had 16 participants representing a cross-section of the horticultural value chain and related institutions Second Group of GlobalGAP Farm Assurer Trainees including 3 participants from the Uzbek national standards agency (UzStandart). Among the 32 trainees a total of 14 passed the exam and are now GlobalGAP certified Farm Assurers that are independent, on-site advisors and consultants who help producers navigate the steps necessary steps to implement GAP as well as obtain and maintain GlobalGAP certification. Of the 14 certified Farm Assurers 9 are from the private sector and return to their respective horticultural entreprises to begin upgrading standards required for GlobalGAP certification. One of the conditions for GlobalGAP certification at the private company level is to have at least one person among the employees who has successfully passed the Farm Assurer’s training.

The next potential step in upgrading horticultural standards under the GlobalGAP process is for motivated Farm Assurers to become GlobalGAP “Licensed Farm Assurers” through a program involving completion of 9 control points, one of which is successfully passing the Farm Assurers exam. AVC assisted one of the successful Farm Assurers from the October training to obtain “Licensed” status from GlobalGAP 11 through completion of this 9-step process. This “Licensed Farm Assurer” is the first within both Central Asia and the Commonwealth of Independent States (CIS). He becomes one of only 74 “Licensed Farm Assurers” worldwide, among the very few Russian speakers and the only Uzbek speaker. Only “Licensed Farm Assurers” can provide GlobalGAP certified training programs and Central Asia is now equipped with one of its own to deliver this training within the region.

b. Create Market Linkages with New Foreign Markets

Linkages via Fruit Logistica 2018. AVC co-sponsored a four- person Uzbek delegation to attend the annual fresh produce trade show in Germany entitled “Fruit Logistica.” The exhibition, held in February at the Berlin fairgrounds, focuses on fruit and vegetable trade, storage, packaging, distribution, and marketing as well as organic and convenience products. Over 70,000 trade visitors from 130 countries attend the show every year. Three advanced Uzbek value-chain actors, accompanied by a team leader from AVC, visited the show. The delegates represented components all along the value- chain including nurseries, vertically integrated producer/exporters and cardboard box packaging owner. Reviewing grading & sorting lines The Uzbek attendees identified business contacts, held technologies for pome and stone fruits business-to-business meetings and visited horticultural input- supply companies. Value-added technologies were a special focus for the delegation including advanced fresh and dried fruit processing, sorting, grading, and packing equipment. Delegation members noted advanced markets were moving away from intensive use of manual labor for sorting and grading as it introduces too much variability in quality and rising costs. For Uzbek produce to remain competitive additional investment in post-harvest handling technologies are required to make labor more productive. The attendees remarked their major constraint to adopting modern sorting and grading technologies in small and medium sized value- chain actors is high cost. Examples of processed, stapled wood crates The delegation further identified “packing and packaging” technologies as crucial to the competitiveness of Uzbekistan’s horticultural value chains. The Uzbek market currently employs a mixture of wooden, cardboard and plastic crates for shipping commercial quantities of fresh and dried produce. For example, wooden boxes made from local trees are the main packing crates used in Uzbekistan for fresh fruit and grape exports. However, wood costs are constantly increasing due to local shortages of raw material. The delegation members were especially keen on “stapled wooden crates” from various suppliers and technology providers representing France, Spain, and Germany. They noted this new technology would allow Uzbek producers to produce higher quality wooden crates with less raw material input.

The group also found it interesting that Western European and other major importers were reverting to wooden crates. Reasons cited included consumers’ preference for a “green” lifestyle that allows for recycling packing and packaging to conserve nature and cause less pollution. This was another notable trend which Uzbek exporters identified and influenced their planning for new investments in post-harvest technologies. The Discussing fruit & grape packaging options Uzbek cardboard box producer was especially 12 interested in this technology and established business relations with French and German providers of this modern wooden crate technology. Both sides agreed to follow-up via a future visit to the French supplier to discuss technology, installation and partnership terms to introduce “stapled wooden crates” to Uzbekistan.

Georgian Market Linkages. As mentioned in the Q1 FY2018 quarterly report, AVC organized a professional marketing tour in early November 2017 for Uzbek entrepreneurs to meet with their Georgian and other counterparts. The purpose of the market exploratory trip was to discuss already established linkages, seek out additional potential buyers and to better understand the local market demand characteristics. While in Georgia the AVC marketing team, together with the accompanying Uzbek partners, had several business meetings to discuss both the export of Uzbek fresh and dried F&V and potential import of Georgian fresh or other produce into the Uzbek market. An immediate Georgian Mandarins on Korzinka Shelves outcome from this trip was the signing of a contract by a local Samarkand based company to export $25,000 of Uzbek raisins to a buyer met in Georgia.

Follow-up to this activity continued this quarter with AVC facilitating additional market linkages between Georgians and Uzbeks initiated during the market exploration visit. Exploration visit participants from the Uzbek supermarket chain – Korzinka.uz – signed an import contract after extended negotiations with a Georgian supplier of high- quality Adjarian mandarins. Korzinka.uz imported these Georgian mandarins in the months of December 2017 and January 2018 for the New Year and marketed them in Uzbekistan as a “New Year’s Gift”. Korzinka partners reported these Georgian mandarins sold much faster than competitor produce from Turkey, Pakistan and China, in spite of their higher price because they were perceived as higher quality by Uzbek consumers. A total of 40 tons of Georgian mandarins were imported at a cost of 520 million UZS (approximately $64,000 at that time). The Georgia market exploration led to two- sided trade operations, both export and import, for Georgia and Uzbekistan which will only serve to promote deeper market integration in the following years. AVC will continue to work with Georgian and other Caucasian partners to identify additional “win- win” opportunities to participants on both sides of international trade.

Online Korzinka Advertisement for Georgian Mandarins

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4. Component #4: Link Educational Institutions with Private Sector Demand

a. Agricultural Universities.

2018 Knowledge Bowls underway with Uzbek Agricultural Universities.

AVC collaborates with the three main agricultural universities in Uzbekistan to promote interest in the sector, identify employment opportunities and link institutions of higher education with businesses to better match labor market needs. In addition to institutional support, USAID actively motivates existing university students to explore horticultural opportunities within their fields of study. Concourses (Knowledge Bowls) are held annually to foster a spirit of competition among the various departments within the three horticultural universities. These Concourses allow students an opportunity to highlight their intellectual prowess and creative abilities while honoring their faculty advisors and respective universities. First held in Istiklol mevalari celebrates their win in the Tashkent 2017, preliminary rounds are held in late winter at each competition university to identify their champions which then compete at the national level in early spring.

The 2018 Concourse season began with events at Tashkent State Agrarian University (TSAU) and Andijan Agricultural Institute (AAI) in mid-February and early-March, respectively. In Tashkent, four teams organized themselves to compete, compared to only three in 2017, underling increased interest in the concourse. The Tashkent teams consisted of participants from the departments of Fruits, Vegetables and Grapes (Istiklol mevalari), Agronomy (Tashabbuskor), Plant Breeding and Protection (Eko Inspektors), and Management (Uzbegim yosh fermerlari). All contestants and teams were well Panel judges register their approval prepared and demonstrated their knowledge and creativity at a professional level throughout the competition. The winner was determined by only a one point difference in overall scores for the four stages of the competition. The Tashkent winner was Istiklol mevalari, which also won the 2017 regional and national concourses.

The second 2018 regional concourse was held at AAI in early March and featured three teams from the departments of Plant Breeding and Protection (Nihol), Agronomy (AgroUnited) and Fruits, Vegetables and Forestry (Kelajak Fermerlari). As in 2017, the Andijan contestants and audience were the most animated, boisterous and active. Each team had diligently prepared and all were determined to show their best. The competition was fierce with the three teams closely scored. The final result tally found AgroUnited with a slim lead, while the two remaining teams were tied for a joint second place finish. AgroUnited will now move on and represent AAI and the Agronomy Department for their first time at the national final. Team Introductions - Andijan

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The final preliminary 2018 concourse was held at Samarkand Agrarian Institute (SAI) in late-March. SAI professors and students enthusiastically welcomed continuation of the series of concourses on horticulturally related topics. Last year the concourse’s main theme was “Year Round Production of Ecological Fruits and Vegetables” while the 2018 organizing concept, agreed with management of the cooperating Universities, is “Advancing Horticultural Value Chains in Uzbekistan.” Among the three regional preliminary rounds held during this year’s concourse the SAI teams competing adhered most closely to the chosen central topic. This was reflected in the level of details provided in their presentations describing the horticultural value chain and providing possible solutions for further advancement in Uzbekistan. Among three competitors at SAI, the Agroengineering Department’s team (“Ecofruit lazzati”) was the best prepared and won their regional concourse.

All three regional preliminary events were each enthusiastically supported by more than 400 attendees, including Rectors, Deans, administrators, professors and students. Judging panels were comprised of mostly university staff and each of the four stages of the competition scored on a “1 to 5” scale. Concourses conclude by awarding certificates, English-Uzbek dictionaries and additional prizes for both winners and participants while establishing strong USAID ties with the students, faculty and administrations of the three leading agricultural universities. The final national level concourse which regroups the winners from the three regional preliminary rounds will be held at TSAU on 22 May by request of the Department of Higher Educational Institutions of MAWR.

Collaboration Between Uzbek and Leading International Agricultural Universities.

Presidential Resolution # 2909, dated 20 April 2017, entitled “Concerning Measures to Further Develop the Higher Educational System,” identifies the lack of strong partnership relations between local and leading foreign universities as a major constraint. The Resolution clearly states “The system of higher education does not properly work to establish close partnerships with leading foreign specialized scientific and educational institutions, to introduce international best practices into the educational process, and, especially, to provide training and advanced training of prospective teachers and researchers at these institutions”. AVC has been assisting the three partner agricultural universities to address this issue since project inception. The project successfully linked all three Uzbek agricultural universities with “Latvia University of Life Sciences and Technologies” (LULST; formerly Latvia Agriculture University), one of the leading agricultural universities in Europe. AVC organized and facilitated two professorial-level exchange delegations between Latvia and Uzbekistan as well as a 6 Uzbek student exchange to Latvia. Both the professors and students participating in these exchanges provided presentations about the knowledge gained in Latvia to their colleagues and classmates upon their return home.

These initial connections were further enhanced this quarter with the visit to Tashkent in late February by the LULST Vice-Rector, Dr. Aigars Laizāns, to discuss details of potential joint endeavors with TSAU. LULST management recognizes the value of increased cooperation and expressed interest in diversifying to include other common interests with their Uzbek partners. LULST approached AVC with a proposal to facilitate a partnership among Uzbek agricultural universities and the Latvian university to prepare a joint proposal to compete for EU-backed capacity building funds (Erasmus+KA2). AVC supported this idea and involved these partner universities in discussions to identify potential project topics and the comparative advantages Uzbek universities would bring to the competition. Dr. Aigars Laizāns presents LULST

AVC suggested to partners to use this opportunity to provide first-hand information to Uzbek professors and students about LULST and opportunities for both professor and student exchanges. As a result, Dr. Aigars Laizāns provided presentations about LULST history, mission, applied educational principles, organizational structure and operating faculties and departments. Dr. Laizāns’ presentations, along with the previous information garnered during the Uzbek exchange visits to LULST, motivated several professors to apply for 15 grants from the Uzbek Presidential Fund (Istedod; “talent” in Uzbek) which supports professorial internships abroad. Two project partners from among those applying, Dr. Shohista Ishniyazova, SAI Head of Processing Department, and Dr. Nosirov Bahodirjon, AAI Associate Professor of Agroeconomics Department were awarded grants for one-month internships at LULST. AVC provided support for these two professors’ applications as well as a support letter for LULST as the host and will continue to facilitate development of exchange programs between LULST and their Uzbek collagues.

The fall 2017 exchange visit to US agricultural universities by an official Uzbek delegation of university management (AVC-070) sponsored by AVC has also began to yield additional benefits. During that visit all three local universities negotiated potential avenues for partnership with Michigan State University’s (MSU) management and signed Memoranda of Understanding. In addition, the TSAU Rector signed an MOU with Ohio State University (OSU) during the visit. These Memoranda outline a general partnership framework and the main direction for joint activities. Further definition and prioritization of mutually beneficial activities between the Uzbek and US universities was achieved this quarter via email exchanges. To finalize these joint project designs and negotiate a timeline of concrete activities, both sides agreed this quarter to organize a second series of face-to-face meetings. MAWR’s Department of Higher Educational Institutions initiated the idea of a reciprocal visit of MSU and OSU staff to Uzbekistan and approached AVC to assist TSAU to develop the program visit. By the end of the quarter, MAWR had also approached USAID Tashkent through official channels with a request to consider co-financing the delegation. This visit is now planned for the last week to ten days of May 2018.

Universities popularize GlobalGAP in Uzbekistan

Recent GOU policy releases reinforcing the need to support edible horticultural exports, especially to new markets like the EU, highlight the importance of reinforcing domestic capacity to adhere to and implement international standards. Advanced producers and leading exporters targeting the EU fresh produce market through major grocery chains must adhere to GlobalGAP standards (see Section C.3.a. above). The two AVC sponsored GlobalGAP Farm Assurer’s trainings explicitly included staff members from the three local agricultural universities to assure the knowledge gained would be integrated to the curricula.

GlobalGAP is not only a new standard but also a new concept in Uzbekistan which must be disseminated as broadly and as soon as possible. The university professors have a major role to play in the spreading of this information, particularly among the next generation of horticultural professionals. After the trainings the participating professors not only provided presentations to their colleagues at their respective universities but also incorporated GlobalGAP information into their classes. The professors also collaborated to produce a monograph entitled “Perspectives on the Introduction of GlobalGAP in Uzbekistan” consisting of four chapters. The first chapter is devoted to introducing readers to the nature and significance of GlobalGAP. Chapters two and three describe the detailed steps required to obtain certification and explain the core modules in GlobalGAP certification, GlobalGAP Manual Cover respectively. The last chapter presents recommendations on the steps required to adopt GlobalGAP in Uzbekistan. The draft monograph underwent peer review by independent experts and was recommended for publication by the educational and methodological commission of TSAU. AVC supported publication of the monograph in 400 copies and all copies were exhausted by the end of the quarter due to high demand. To address the additional demand for this monograph AVC made it available online as an electronic copy and through its social media outreach (see Section D.2 below).

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b. Research Institutes.

Mirzaev Horticultural Institute.

The Tissue Culture Production Complex (TCPC) at the Mirzaev Horticultural Research Institute continues work on enhancing their performance given the demonstrated and growing market demand (see Section C.1.b.) for true-to-type, virus-free, quality plant material within Uzbekistan’s horticultural sector. During this quarter TCPC staff completed the Customs clearance procedures for the materials ordered from the US supplier during Q1 of FY 2018. All the materials were delivered in-tact and ready-to-use which replenished their laboratory supply inventory. This replenishment allowed the TCPC to continue work on various research projects as well as engage in small scale production. This quarter marked the end of the third year since the lab was transferred to Mirzaev in February 2015 and the TCPC finally engaging with the market for lab produced (in vitro) plant sales for income generation.

Vegetable Research Institute (VRI).

AVC has been working with VRI since the inception of the project mainly on tomatoes and particularly in addressing the tuta absoluta (tomato leaf miner) pest problem. Cooperation was recently expanded to another very important vegetable crop for Uzbekistan – potatoes. As a result of this cooperation a manual of farmer recommendations on potato cultivation techniques, along with pest and disease control information, was jointly published this quarter. Potato Manual Cover

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5. Collaboration with other organizations

AVC staff met with the following organization this quarter to discuss potential cooperation and share experience:  IFC Private Sector Assessment AVC staff met with a delegation from the International Finance Corporation (IFC) tasked to produce a private sector assessment of potential investment opportunities within Uzbekistan. IFC is the private sector lending arm of the World Bank and the delegation has 4 months to identify 3 to 4 sectors for potential investors. Upon completion of a “deep dive” into the selected sectors the IFC will present their preliminary findings to their Board in April. The delegation’s interest in meeting AVC was to determine possible investment options in the horticultural sector.

 DIAL AVC staff were contacted last quarter by a Nairobi-based technical firm, Echo Mobile, partnered with the UN Foundation’s Digital Impact Alliance (DIAL) to research the application and effectiveness of messenger platforms for international development. The research will result in a catalog, select case studies and a broader white paper on how messenger services are being used in development around-the-world. Echo Mobile heard of AVC’s work with instant messaging (see Section D.2. below) and wanted to learn more. After multiple e-mails exchanges and VOIP conversations, AVC’s work and experience with IM in development was selected to be among 1 of 12 one-pagers and 1 of 6 more in-depth case studies worldwide. The final versions of these documents should be published by DIAL next quarter at which time they intend to move to an advocacy stage.

 Dutch Trade Mission AVC was approached by the Embassy of the Netherlands in Kazakhstan to assist with a delegation of roughly 50 Dutch business people representing over 40 agribusinesses during their visit to Tashkent in mid-March. The Embassy also requested AVC make a presentation to the assembled business representatives on the state of Uzbek horticulture. AVC staff presented, along with Tashkent-based representatives of the Asian Development Bank (ADB), IFC and EU, to the assembled group which included the Dutch Ambassador to Kazakhstan. The following day AVC staff assisted with a B2B session organized by the Dutch with local agribusinesses.

 World Bank AVC staff met with a delegation from the World Bank tasked to perform a review of how best to include marginal women’s groups into the value chains for livestock and horticulture. AVC staff shared their interpretation of the constraints on women’s inclusion in the horticultural sector and the AVC Gender Analysis and Strategy (AVC-014) of September 2016.

 UNDP AVC staff met UNDP representatives who introduced a new Global Environment Facility (GEF) funded activity for Uzbekistan focused on the expected phase-out of certain classes of refrigerants in Uzbekistan, specifically hydro-chloro-fluro-carbons (HCFC). AVC and UNDP staff discussed the impact this will have on existing and future cold storage within the horticultural sector and how to collaborate to assure an orderly transition to other refrigerants (ex., carbon dioxide, ammonia, isopropane, isobutane, etc.). As a first step, AVC staff disseminated the information provided by the UNDP staff within the newly created cold chain Telegram group (see Section C.2.b above).

6. Women in Agriculture

AVC staff specifically targeted female participants for inclusion in the second GlobalGAP Farm Assurer’s training. A total of 3 women out of a total of 16 participants took and the training. Two of the three women passed the two-part final exam.

All three university concourses held this quarter attracted a large participation by female students. Each of the competing teams were required to have a minimum of three female members out of a team total of six. Some teams had more young women than men.

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Similarly, the AAI orchard design and installation training had a significant portion of female student participants over the 12 days of training.

The Dried Fruit and Nut Export Manager for AVC partner, Siyob Sahovati, requested assistance with potential buyer contacts while she was in Dubai for a trade show which AVC provided. This same marketing director is scheduled to participate with AVC in the Uzbekistan booth at the MacFrut 2018 Exhibition in Italy in early May.

The private sector tissue culture laboratory continues to hire predominantly women in the lab to perform the plant micro-propagation work. During this quarter the total staff at De Nova Agro more than doubled from 12 to 26 due to the expansion in private orders for the Krymsk-5 cherry rootstocks. Of the 26 employees now at De Nova 88% are female (23 of the 26).

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D. MONITORING AND EVALUATION

1. Monitoring and evaluation

The horticultural production, post-harvest and sales season follows a calendar rather than a fiscal year schedule. Thus the first three AVC indicators (income by sales, yield per hectare and value of exports) only become available at the end of the calendar year and are reported on an annual basis. The data, with targets and actuals, for the remaining seven indicators (#4-10 in the table below) are quarterly reported and presented in the table below. With half the FY reporting period completed the project remains on-track to achieve the 2018 targets. Most indicators are approaching 50% completion as the horticultural season gets underway with spring approaching. Indicators #4-10 depend upon the horticultural season and can only increase as the season progresses. Another positive sign is the high number of organizations assisting project activities (#9) implying work underway will be sufficiently supported to achieve their intended annual results.

Actuals 2018 # Indicator Cumulative %

Units 2016 2017 Q2 Target Realized 4 Consulting # 5 12 20 8 40% 5 Hectares ha 2,173 4,311 5,000 2,077 42% 6 Investment $ 1,016,000 2,444,000 3,000,000 1,176,200 39% 7 Adopting # 4,067 5,000 1,530 31% 8 Improved Ed. # 2 3 4 3 75% 9 Organizations # 50 102 150 155 103% 10 Training hrs. 9,693 16,312 20,000 11,050 55% Indicators 1, 2 and 3. Indicator data on income yield and export values are collected annually and will only become available at the end of the present horticultural production and marketing season.

Indicator 4. The number of new private sector service providers participating in AVC implementation reached a cumulative total of 20 this quarter with 8, mostly new cold chain input suppliers, added. There remain 12 new service providers to identify in the remaining 6 months of FY 2018.

Indicator 5. The hectares under improved technology has already reached 42% of its target before the most intensive training and implementation period expected in Quarter 3. This figure will increase in the next quarter as the production season progresses given early and mid-season improvements based upon AVC supported trainings.

Indicator 6. The value of investments made by project partners this quarter is still on-track to meet the annual target, given the last two quarters witnessed a massive devaluation and the winter slow-season, respectively. As the season progresses into warmer weather additional investments are expected. Investments were almost evenly distributed between the Production (55%) and Post-Harvest (45%) components.

Indicator 7. As with the other seasonally dependent indicators, the number of partners adopting best practices will increase significantly as the horticultural season unfolds. Again, the vast majority of adopters reported this period are from the Production and Post-Harvest components with a few from Marketing.

Indicator 8. AVC continues to work with three existing agricultural universities and has initiated efforts to begin work with the two branch universities of TSAU. The two branch universities, based in and Nukus, will certainly increase this figure next quarter (from 3 to a total of 5).

Indicator 9. The number of organizations assisted significantly expanded this quarter and is a reflection of the expected additional benefits to the other indicators given an increased partner list. This indicator is not expected to continue this growth as the project and its partners focus future activities on implementing through the accumulated local partners and less on expanding their number as the season gets underway. As in previous reporting periods this indicator is slightly more balanced across the project’s Production (50%), Post-Harvest (41%) and Marketing (9%) components. 20

Indicator 10. The cumulative person-hours of training also exhibit a reassuring trend given the FY2018 target value is slightly more than half-way to its target with half the FY completed. During the last quarter the vast majority of training was performed by the Production component due to the time of year.

2. Communications and Outreach

AVC’s initiatives in Public Relations, Communications and Outreach continue to progress especially given the continuation of tremendous growth in participant numbers involved in the project catalyzed social media platforms. AVC’s growing digital ecosystem consists of multiple platforms to disseminate information including Facebook, YouTube, and Telegram instant messenger.

AVC staff continue to produce content to continually feed into this evolving digital ecosystems so it remains fresh to attract repeated visits and addresses topical issues raised within the online Uzbek horticultural community. During this quarter an additional ten (10) short videos were produced on various topics including seasonal pruning techniques and Global GAP international standards certification. Once produced these short videos are provided to project partners for further uploading and sharing. In addition to content creation, AVC staff also provide information technology support, text and photographic Quarterly Membership Growth (Jan-Mar 2018) – content to our social media partners in “Science of Horticulture” Facebook Group horticulture.

Social media

Facebook. The number of members within the “Bog`dorchilik ilmi” (Science of Horticulture) Facebook group reached nearly 20,000 (19,858) this quarter. Over 500 questions were posted and answered on a monthly basis reaching nearly 1500 queries and responses for the quarter. More than 20,000 Posts, comments, and reactions, as a measure of community engagement, continue to reach around 20,000 per month for a quarterly total of around 60,000.

YouTube. Subscriber numbers to the “Science of Horticulture” YouTube channel almost doubled this quarter and exceeded 2,000. Registered view numbers were almost 137,000 (compared to 50,000 last quarter) and view time increased by 350,000 minutes. Most importantly, viewer geography is shifting closer and closer to Uzbekistan. For example, Russian-based viewers declined from 42% to 36% this quarter while Uzbekistan-based users increased from 16 to 19% of total. This may have occurred for two reasons; first, the Uzbek audience is more willing-to-pay for valued quality content (YouTube is not costless to the viewer as the locally hosted mover.uz system) and second, continued strong growth in internet penetration and use within Uzbekistan. The viewership within the Central Asian region remains strong with significant shares of total viewership marking penetration of this information to YouTube watch time rankings for Uzbek-language Kazakhstan’s and Kyrgyzstan’s Uzbek-speaking “Science of Horticulture” videos population.

Instant messaging (IM). The Telegram instant messaging service chat groups and channels have also become increasingly popular with social media users in horticulture. AVC designed the “Horticulturist” 21

(Bogbon in Uzbek) group to serve as a means of two-way communication among producers, processors, exporters and service providers within the sector. Member numbers within the “Horticulturalist” group approached 1400 by the end of the quarter compared to 850 in the previous quarter. This quarter-to-quarter growth of 65% dramatically increased the dynamics of the question and answer sessions and knowledge sharing. To deepen the information sharing on specific subjects AVC first stimulated creation of a separate “cold chain” chat group (see Section C.2.b. above entitled “Sovuqhona”) as a spin-off from the more general “Horticulturalist” group. Other subgroups quickly followed suit, some catalyzed by AVC and others created at partner initiative, with specific IM chat groups emerging on Telegram for walnuts, grapes, lemon and Global GAP.

The Telegram channel, “Science of Horticulture,” has also become very popular with its users. IM channels provide more targeted information allowing for more in-depth knowledge without the generalist discussions but at the cost of losing two-way communication. One-way information channels (like traditional TV channels) collect questions from different groups and broadcast detailed and visual responses to consumers. During this quarter viewership of the Science of Horticulture” Telegram channel increased by more than 1000 users and now total around 4000.

Both the two-way communicating Facebook group and the one-way Telegram channel for “Science of Horticulture” users reached a wider audience in early March. Horticulturist group statistics Uzbekistan’s most famous internet news website (kun.uz) sought AVC’s local Facebook partner to prepare a special story about the group’s founder.

After kun.uz published the story the group’s administrators were invited to O`zbekistonTV, (Uzbekistan First National TV Channel) for interviews. During the interviews the Facebook group administrators were informed of a newly launched national TV program entitled “AgroInnovation” to recount stories regarding new modern approaches and how they are changing agriculture. The channel administrators, including AVC’s Public Relations and Outreach Specialist, shared their experiences with social media and how it is an important and effective means to gather, process, save, and share knowledge across different platforms while responding directly to consumer demand for information. After two consecutive broadcasts of the resultant program both “Science of Horticulture” administrators were flooded with online questions Growth in Telegram channel “Science of Horticulture” to which they answered comprehensively. The kun.uz online story of the Facebook group’s founder is at : https://kun.uz/uz/news/2018/03/08/asakalik-bogbon-darahtlar-am-mening-zigarlarim

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E. ENVIRONMENTAL COMPLIANCE

1. Monitoring

AVC activities monitored this quarter by the project environmental officer are listed below. All activities were judged to be in compliance with USAID and Uzbek environmental rules and regulations.

- Onsite consultation to cold storage facilities. AVC staff visited and provided site-specific recommendations to cold store owners on new facility designs with tips and advice on improved storage elements to consider including stacking, ventilation, disinfection, temperature and humidity monitoring and control. Only environmentally friendly and hygienically clean practices were recommended.

- ULO Cold Chain National Exchange Program (NEP). AVC organized this NEP in Tashkent to share latest trends within the postharvest and cold chain sectors with focus on the relevance of Ultra Low Oxygen (ULO) systems under the existing country conditions and practices. The engineer from TechnoCool. LLC presented information about ULO systems around the world and Uzbekistan. The participants also visited Korzinka’s newly built ULO cold storage system to witness an actual facility.

- India Grape Study Tour. A group of 9 Uzbek farmers, entrepreneurs and grocery store employees visited India to experience the fresh grape value chain which exports to Europe. The group visited the entire chain: vineyards, packing houses, cold stores and the shipment process. They also visited vineyards with GlobalGAP certificates and packing houses with International Standards Organization (ISO) and Hazard Analysis – Critical Control Point (HACCP) processing certificates.

- Spring Pruning. AVC organized spring pruning trainings in Tashkent and Valley provinces this quarter. During the training local consultants and AVC staff emphasized the importance of proper disinfection of pruning tools and hand shears to prevent the spread of disease.

- Training on orchard establishment: AVC conducted a student and staff hands-on training at Andijan Agricultural Institute in collaboration with a local horticultural consulting company (“Consulting Madad Hamkor” LLC). The resultant orchard and vineyard were established to demonstrate the latest horticultural practices to students and farmers as well as provide a university demonstration site for research on tree training and pruning methods.

- MAWR’s AgroInnovation center. Drip irrigation and trellis systems were procured from a local manufacturer and established at the Ministry’s demonstration orchard. The trees were pruned by qualified pruners and mesh was stretched over the orchard to protect fruits from sunburn and hail. Workers followed all recommended measures and practices during pruning.

- Global GAP Farm Assurer Workshop. The second AVC sponsored Farm Assurers training was held in Tashkent with participants from both public and private sectors.

- PERSUAP. AVC’s Environmental Officer collected information and data requested by the proposed PERSUAP (Pesticide Evaluation Report – Safe Use Action Plan) consultant. The most recent national list of approved, banned and restricted chemicals was obtained from the State Chemical Commission.

2. Mitigation AVC promotes environmentally friendly agro-technologies and techniques to mitigate possible environmental and social adverse impacts of agricultural activities. The proper use of agrochemicals as a means for pest and disease control in orchards is always on the project agenda. The basis for the mitigation of potential negative environmental impacts of agrochemical use is the Pesticide Evaluation Report and Safe Use Action Plan (PERSUAP).

3. Issues There were no social and environmental issues during this reporting period that resulted from AVC’s activities.

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