Usaid/Lebanon Lebanon Industry Value Chain Development (Livcd) Project

LEBANON INDUSTRY VALUE

CHAIN DEVELOPMENT (LIVCD)

PROJECT

LIVCD QUARTERLY PROGRESS REPORT - YEAR 6, QUARTER 3 APRIL 1 – JUNE 30, 2018

JULY 2018

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 Q3 FY18 AND LIFE OF PROJECT ...... 11

IMPROVE VALUE CHAIN COMPETITIVENESS ...... 15 PROCESSED FOODS VALUE CHAIN ...... 15 RURAL TOURISM VALUE CHAIN...... 23 OLIVE OIL VALUE CHAIN ...... 31 POME FRUIT VALUE CHAIN (APPLES AND PEARS) ...... 40 CHERRY VALUE CHAIN ...... 50 AVOCADO VALUE CHAIN ...... 57 GRAPES VALUE CHAIN ...... 61 CROSS CUTTING ACTIVITIES ...... 70 MARKETING (MARKETING INTELLEGENCE AND PROMOTION) ...... 70 WATER & ENVIRONNEMENT ...... 79

ANNEX 1: INDICATORS PERFORMANCE TRACKING TABLE...... 80

ANNEX II: LIVCD GRANTS TO DATE ...... 81 ANNEX III: LIVCD QUARTERLY FINANCIAL INFORMATION...... 82

ANNEX IV: NUMBER OF PUBLIC PRIVATE PARTNERSHIPS...... 83

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

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

YEAR 6 QUARTER 3: APRIL 1- JUNE 30, 2018

PROJECT OVERVIEW

LIVCD is a six year and four-month 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, the project continued to focus on the completion and closeout of existing grants and programming the remaining grant funds. When reviewing new potential partnerships, the remaining project time frame was a key consideration: implementation of any new grants must be completed by the end of September 2018. Three new grants that fit this criterion were approved during the quarter and have combined co-investment value of $472,494, with the LIVCD grant fund contributing $199,731. With these three grants approved, $225,433 remained in the life of project grant pool. Towards of end of the quarter, the LIVCD technical team explored the possibility of a new grant to support both apple and cherry farmers in the Arsal district close to the Syrian border. Previously, the security situation prevented implementation of technical activities in this area. The situation, however, has been improving since the end of 2017 which means that grant support can now be explored. LIVCD will submit a proposal for USAID review early in the next quarter which, if approved, will be implemented in advance of the apple harvest later this year. It is anticipated that this grant support will benefit up to 200 apple and cherry farmers. LIVCD submitted a fourth NXP disposition plan to USAID for equipment previously provided under twenty-four grants across all value chains. Social Impact carried out inspection visits to all grantees as requested by USAID and LIVCD was awaiting for feedback before proceeding with disposition of the items at the end of the quarter. Please note that shortly after the end of the quarter, the disposition was approved. The MEL team completed the statistical process to randomly select farmers for the farmer survey which will commence in early July and is expected to be completed by the end of August. The farmer survey is being carried out to provide the results for the LIVCD annual sales indicator. This is established by extrapolating data across the LIVCD supported farmer population using a statistical methodology designed by a statistician on an STTA to LIVCD. The data and results will be collated and reported upon in the year six annual report which is due in October 2018. During the quarter, LIVCD was advised that an end of project evaluation would be carried out by Social Impact in August and September. The evaluation findings will be used to inform future interventions under USAID’s economic growth portfolio and it is expected that the findings will be available for the LIVCD year six and project completion report. LIVCD closedown STTA commenced the closedown planning phase at the end of May and initial priorities were assigned to LIVCD grants and operations staff during June. The Closedown Manager will pick back up with the team in early September once they have made progress on the initial priorities.. Key closedown tasks related to grants and operations commenced with a focus on completing the project disposition plan. The project began drafting the demobilization plan to be submitted to USAID during the next reporting period. The project held several high-profile events during the quarter including the opening of Travel Lebanon, a rural tourism event at the end of May, and the closing of the CCIAZ laboratory grant under the processed food value chain at the end of June. Two of these events were attended by USAID Mission Director. Over the remainder of the project, several events will be hosted to highlight USAID’s role in each of the LIVCD value chains. This will culminate in an overall project closing event to be held in November.

LIVCD communications and MEL teams were very active during the quarter and continued to work on and finalize various visibility products including Impact Assessments, Case Studies, and Success Stories. In addition, several promotional videos were made for the tourism value chain to promote the rural tourism destinations over the summer season. These videos have provided excellent visibility for USAID highlighting USAID ongoing intervention under the rural tourism value chain. One video alone, for example, received over 60,000 hits and was shared over 400 times.

KEY HIGHLIGHTS

LIVCD sponsors the 5th edition of the Travel Lebanon at the Garden Show

Between May 30 and June 2, and for the fifth consecutive year, the LIVCD project sponsored the Travel Lebanon exhibition which showcases lesser known destinations and cultural heritage areas through the participation of more than 50 rural tourism partners presenting their rural tourism products and services. The exhibition took place during the Garden Show annual event held at the Beirut Hippodrome, an event that gathers more than 25,000 visitors including tourism and hospitality professionals. This year, the LIVCD stand promoted 18 organizations through the display of various marketing tools, Opening of the Travel Lebanon at the Garden Show including 7 promotional videos on 4 screens. The booth also contained several brochures and flyers that were developed through a grant aimed at increasing rural tourism visibility, entitled ‘Supporting Hospitality Services to increase the access of rural tourism MSME’s to rural tourism market opportunities.’ The official ceremony took place on May 31 in the presence of Mr. Avedis Guidanian, Minister of Tourism, USAID Mission Director Dr. Anne Patterson, and several members of Parliament and Head of Municipalities. In her remarks following the ribbon cutting, Dr. Patterson emphasized continuous U.S. Government support for Lebanon’s economic growth, and the importance of increasing employment and income generation through key sectors such as tourism.

LIVCD and CCIAZ launch new services offered by the Chamber’s laboratory On June 19, LIVCD, the Chamber of Commerce, Industry, and Agriculture of Zahle and the Bekaa (CCIAZ) launched a new food quality services laboratory at the Chamber to serve the agrofood industry sector and offer quality control and assurance, food safety, microbiological and physico-chemical testing to promote access to new markets for agricultural products in the Bekaa. USAID Mission Director Dr. Anne Patterson, USAID Economic Growth Office Director Dr. William Butterfield, representatives from USAID and the LIVCD project as well as delegates from the ministries of Industry, CCIAZ Laboratory Agriculture, Economy and Trade and Public Health, and CCIAZ participated in the event. With

$600,000 co-invested by the LIVCD project and the CCIAZ, the laboratory now provides full testing services for olive oil and honey, water analysis for food processors, and approved microbiological testing methods that can be completed in 24-48 hours.

Workshop on grapes with international expert Alvaro Azincot On June 21, in collaboration with the Chamber of Commerce, Industry, and Agriculture of Zahle and the Bekaa (CCIAZ) and private company Medigardens, LIVCD organized a workshop with international grapes expert Alvaro Azincot on table grapes production, harvesting and post-harvest practices at the CCIAZ, in Zahle, in the Bekaa. The event gathered more than 110 Grapes workshop participants from the grapes sector, small and medium farmers, large scale grapes growers, grapes exporters, agricultural engineers involved in the grapes sector and representatives from the Ministry of Agriculture and universities. International expert Azincot provided a detailed presentation on the main grapes cultural practices with a focus on about the new grapes varieties grown in Lebanon. The expert communicated to the audience the key practices that influence the productivity of the Lebanese table grapes and the specifications and requirements of the local and export markets.

LIVCD and Al-Hourouf Association launch a healthy food snack and picnic area in Bentael On June 22, LIVCD and Al-Hourouf Association organized the opening ceremony of a healthy food snack and picnic area, the Green Shell Restaurant, implemented under the project ‘Introducing Rural Tourism Attraction in the Bentael Nature Reserve,’ in Bentael, Mount Lebanon. More than 50 local rural tourism experts participated in the event which included a guided hike in Bentael Nature Reserve. After accomplishing the hike, a ceremony took place in Al Hourouf event

9 the picnic area next to the healthy food snack implemented both under this project. During the ceremony, the president of Al-Hourouf Association, Youssef Matta, the manager of Bentael Nature Reserve, Raymond Khoury, representative of the Minister of Environment, Lina Yammout, and USAID Economic Growth Office Director Dr. William Butterfield gave brief speeches focusing on the importance of improving Lebanese villages’ economy. It is expected that the Green Shell Restaurant will enhance the rural tourism sector in the region and promote USAID’s support to the rural tourism in Lebanon.

PERFORMANCE INDICATOR RESULTS FOR Q3 FY18 AND LIFE OF

PROJECT

LIVCD tracks results on the project level according to the LIVCD Results Framework and the associated set of Performance Indicators, which measure progress towards achieving the Intermediate Results and Objective.

LIVCD Goal: Develop functional value chains to increase incomes of the rural population including MSMEs

LIVCD Intermediate Result 1: Increased access to markets in targeted value chains

LIVCD Intermediate Result 2: Increased business linkages in target value chains

LIVCD Intermediate Result 3: Increased productivity in target value chains

LIVCD Intermediate Result 4: Constraints to lending reduced in target value chains

M&E Activities of this Quarter

 MEL team in collaboration with an STTA continued the work on the economic impact assessments for LIVCD selected value chains. By end of quarter 3, LIVCD will complete the apple economic impact study and will share it with USAID for approval and clearance. To date LIVCD has completed the avocado, rural tourism, grape and honey economic impact studies that have started in Y6. All completed studies were submitted to USAID discussed and cleared .The Cherry, Olive oil and processed food – Msallem case study will be completed and submitted to USAID during quarter 4. These impact assessments will be incorporated into the final project report and will also be used during the project final evaluation which is expected to commence mid-2018.

 MEL team, in collaboration with an STTA, commenced the work on the implementation of a beneficiary survey to collect and report the “change in the value of gross margin” before and after LIVCD interventions, calculate and report the value of sales generated by beneficiaries (farmers and beekeepers) as a result of the project’s technical assistances. With the support of a data analyst, the MEL team has developed and tested surveys for Olive Oil, for agricultural value chains and for Honey and installed them on tablets. The needed data will be collected during July and August 2018 with the support of LIVCD field officers and using open data kit to save the time of collecting, entering and processing data of almost 1000 beneficiaries to be interviewed. Starting second week of July, MEL team will start training the enumerators (LIVCD field officers) on the methodology of data collection and thereafter start the field visits. The results and findings of the survey will be reported in Year 6 and the final reports

 MEL team conducted the data verification exercise on the submitted activities’ supporting documents and identified a timeliness issue with few documents. The timeliness issue is due to; late submission 11

from the field team, and in some cases the activities were implemented during a long period of time, i.e pruning, spraying, supporting documents were submitted after the completion of the activity.

Table 1: Y6Q3 – Results achieved

The below table describes the deviation of some indicators’ results from the quarterly targets set.

Achieved Explanation on % of deviation from quarterly Indicator Name Target Y6Q3 Y6Q3 target Number of MSMEs, including The Q3 results exceeded the Q3 target; this is due farmers, and other organizations to the production season and all related activities in receiving business development 659 966 the selected value chains. services from USG assisted sources

The Q3 results exceeded the Q3 target; This increase is mainly related to new interventions Number of Jobs Impacted by 424 594 where farmers were introduced to applying new LIVCD Implementation improved agricultural practices that impacted farming jobs under the apple and olive oil value chains. Proportion of female participants in USG-assisted The Q3 results exceeded the Q3 target as a result

programs designed to increase of LIVCD’s continuous effort in engaging women in 82 318 access to productive economic all activities/interventions delivered across the 12.5% 24% resources (assets, credit, income targeted value chains. or employment) Number of beneficiaries who The Q3 results exceeded the Q3 Target; this is due have applied improved to the production season and all related activities technologies or management 615 760 (service centers activities) in the selected value practices as a result of USG chains. assistance The Q3 results exceeded the Q3 target; this is due to the production season. Many related agricultural Number of individuals who have practices were delivered through training sessions received USG- supported short- 667 1,051 in the selected value chains. term training.

Number of MSMEs, including farmers, and other organizations, benefiting from 436 460 Within the 10% deviation new horizontal & vertical linkages Number of enterprise/farmers The Q3 results did not achieve the Q3 Target; that successfully accessed loans, 9 0 however LIVCD is on track to achieve the Y6 and private equity, or both as a LOP targets result of USAID assistance

The Q3 results did not achieve the Q3 Target; Total value of loans issued as a $ $ 0 however LIVCD is on track to achieve the Y6 and result of USG assistance 842,500.00

LOP targets Number of public-private The Q3 results exceeded the Q3 Target as several partnerships formed as a result 1 3 grants were recently approved and signed. of FtF assistance Number of MSMEs, including The Q3 results did not achieve the Q3 Target. farmers, reached by USG to 22 1 LIVCD will reach more farmers and MSMEs during apply for value chain finance the coming quarter 4.

Figure 1: Quarterly Performance Results

IMPROVE VALUE CHAIN COMPETITIVENESS PROCESSED FOODS VALUE CHAIN

Processed Food Value Chain - Quarterly Results Jul-Sep Year VI - (Oct 2017 to Sep 2018) Oct-Dec 2017 Jan-Mar 2018 Apr-Jun 2018 2018 Indicator Title Q1 Q2 Q3 Q4 Actual Y6

Number of MSMEs, including farmers, and other organizations receiving 57 44 2 103 business development services from USG assisted sources

Number of jobs impacted by LIVCD implementation 23 100 0 123 DO 2c: Proportion of female participants in USG-assisted programs designed to increase access to productive economic resources (assets, credit, income 95 24 89 208 or employment)

IR 2.1.a: Number of beneficiaries who have applied improved technologies 0 50 0 50 or management practices as a result of USG assistance

Number of individuals who have received USG- supported short-term 112 40 100 252 training. Sub-IR 2.1.2.a: Number of MSMEs, including farmers, and other 2 3 1 6 organizations benefiting from new horizontal & vertical linkages IR 2.2a: Number of enterprise/farmers that successfully accessed loans, 0 0 0 0 private equity, or both as a result of USAID assistance $ $ $ Sub-IR 2.2.2a Total value of loans issued as a result of USG assistance 0 - - -

Number of public-private partnerships formed as a result of FtF assistance 1 2 2 5

Number of MSMEs, including farmers, reached by USG to apply for value 1 1 0 2 chain finance

Pickles

Marketing

 Mechaalany newly launched social media campaign

As part of grant support “Introducing a solar energy system to Societe Libanaise de Boissons (Mechaalany) as a model for Lebanese food processors to adopt innovative renewable energy solutions” to increase the general consumer awareness of Mechaalany’s brand and improve appearance of the brand image in both local and export markets, a new website and Facebook page was launched on May 7, 2018.

Mechaalany Facebook post 15

Mechaalany uplifted website  Msallem expansion in Lebanese retail market

During previous quarters, marketing support was provided to Msallem through a grant with a “Go to market” strategy. This strategy focused on training Msallem’s sales force and providing a distribution model strategy and a yearly marketing plan.

Following the marketing plan strategy, Msallem branded its delivery vans, developed catalogues and initiated Supermarket displays such as that shown in the image below from Supermarket Jbeil.

Msallem visuals-Supermarket Jbeil Msallem billboard campaign

Msallem Facebook and Instagram posts In addition, a billboard campaign coupled with social media advertising campaign was initiated to increase consumer exposure to the Msallem brand.

Production

 First time cucumber production in Koura-Bziza with Msallem

During this quarter, Msallem cultivated 40, dunums of cucumbers in Koura, Bziza introducing for the first time a cucumber plantation in the north. Msallem is trying to cultivate this area to increase production to meet the increased market demand. Results on how

production in this area fared will be reported in the annual report.

Cucumber orchard

 Processed Grains (Freekeh and Bourghul)

To support freekeh farmers and cooperative members, LIVCD continues to facilitate linkages between cooperatives, farmers and processors, which aim to generate additional income for all freekeh value chain actors.

Lebanese freekeh in the local retail market

As part of a Public Private Partnership (PPP) with National Instruments (NI) to enhance the production of freekeh, LIVCD supported local NGO Caritas to introduce Freekeh as a new item. During this season, Caritas planted 40 dunums of freekeh to meet increased demand from Lebanese Agrofood processors.

Moreover, LIVCD facilitated a linkage between Caritas and Judi-Lebanon which will be purchasing in the upcoming quarter 5 tons at a cost of $2.6 per kg, a total of $13,300 as additional income for caritas.

 Vinegar

Local bacterial culture, the potential key for high quality vinegar

During previous quarters under technical assistance that aimed to optimize vinegar production in Lebanon to allow producers to enter new market, LIVCD collaborated with the food microbiologist Dr. Mireille Kallasy to isolate the Lebanese Acetobacter and compare it to the pure Acetobacter aceti. The pure Acetobacter aceti is the standard bacterium used in vinegar production to generate acetic acid, the main component in vinegar.

During this quarter, one final trial using oxygenation was conducted to determine if a combination of a good aeration system, pure culture, and Installed shrinking machine controlled conditions can improve the acetic acid yield and can eliminate the need to mix vinegar and wine. The results to date show that the oxygenation further reduced the fermentation time and the Bacterial mixture gave a better yield. Final results will be shared through a workshop with agrofood processors in the next quarter.

Vinegar oxygenation system

Oxygenation process

 Syrups, distillates, concentrates, and juices

Pomariis

Upgrading Pomariis apple juice production capacity As part of grant support “Improve the competitiveness of “Pomariis” apple juice through production capacity upgrade and market expansion”, LIVCD supported Pomariis to install a semi-automatic shrinking machine, a stainless steel conveyor, a fruit washing machine, a semi-automatic apple grinding machine, an oven, working tables , and collecting and decantation tanks. The aim of the introduced equipment is to increase productivity in target value chain and introduce apples by product such as vinegar to expand Pomariis apple product line. The equipment will ready to use in advance of the upcoming apple season which starts from late September in Bcharre. Installed refrigerated incubator

Increasing apple juice demand in Lebanon

As part of Pomariis brand awareness, LIVCD organized two site visits for the Rotary Club Koura and College Notre Dame du Balamand students to the Pomariis facility. The visits included a tour of the factory that included presentations on the apple juice production process and apple juice tasting.

College Notre Dame du Balamand students

CCIAZ Laboratory

As part of grant support, LIVCD supported the food quality lab at the CCIAZ by introducing new equipment. During this quarter, LIVCD delivered the remaining equipment including under bench cabinet, tall cabinet, refrigerated incubator, and ultrapure water system. This partnership will enable CCIAZ to improve the laboratory services offered to processors, exporters, and farmers.

LIVCD and the CCIAZ launched the new food quality services laboratory at the Chamber during an event on June 19th, in the presence of USAID Mission Director Dr. Anne Patterson. CCIAZ billboard campaign

 Ready to eat

Highlights

LIVCD supported Mymouné to “increase farmers’ technical knowledge and income by ensuring Mymouné’s ability to expand sales via a food safety and quality assurance program, and a new and improved marketing strategy”.

During this quarter, and as part of the Mymouné marketing strategy, Mymouné participated in the “Taste of Paris” show. The Taste of Paris event is a yearly show that showcases Paris’ best restaurants, through cooking shows, and food tasting events. This served as an opportunity for Mymouné to expand its international brand recognition.

Mymouné stand at Taste of Paris show

Trainings, Workshops, Outreach and Capacity building

Food Safety Modernization Act training

The Preventive Controls for Human Food regulation (often referred to as FSMA) is US enacted to ensure safe preparation of food products for human consumption to prevent food borne illnesses. In September of 2015, the FDA announced the deadlines for businesses to comply with the new rule.

As part of processed food work plan to support agro food processors in complying with international regulations such as FSMA for the US market, LIVCD, in collaboration with LAU and AUB, conducted two rounds for ”Key guidelines for FSMA Compliance Food safety modernization act compliance and case studies” training for 45 attendees. Food Safety Modernization Act training

“US Market Entry: Tools and Strategies” workshop

On May, 15, 2018, as part of LIVCD project to support processors in developing promotional plans and creating successful market linkages, LIVCD held a US market Entry workshop in partnership with The Lebanese American University (LAU) and The Syndicate of Lebanese Food Industries (SLFI).

“US Market Entry: Tools and Strategies” workshop

US consultant Jim Krigbaum highlighted US consumers’ preferences and tools needed to penetrate the US market such as pricing, distribution model, foods trends and many other relevant components. Agro food One to one session with Agro food processor: Hintrag companies were represented by their C.E.O, sales and marketing teams. A total of 38 individuals attended this training. The consultant also visited seven Agro food processors (Seven companies were visited Msallem, Second House products, Mymoune, Mechaalany, Royal organics, Willani, Sonaco Alrabih) to prepare them for their upcoming trip to the US. The objective of his visit is to better understand the companies’ production capacity, readiness to enter US specialty food market, review product material and label.

Road Map to product development workshop

LIVCD, in collaboration with Notre Dame University (NDU) and the Syndicate of Lebanese Food Industries (SLFI), held a workshop focusing on product development, at NDU premises in Zouk Mosbeh. The workshop was presented by the Lebanese American Consultant Dr. Fadi Aramouni, his presence was facilitated through LIVCD collaboration with the USAID-funded Farmer to Farmer project.

Representatives of agro food companies, University students, faculty, and consultants attended the workshop, which was aimed to serve as a guide on the product development process, food trends in the U.S. market, shelf life testing, labeling health claims, and sensory evaluation methods.

During the week of June 4, the consultant met with 8 different industries (Mechaalany, Royal Organics, Second House Products, Lebanese Mezze, Sonaco-Al Rabih, Hintrag-Aruba, and Global Foods-Equia) to discuss their challenges, and new products development.

University training sessions Building capacity is a main LIVCD objective. After introducing new technologies to the pickles, vinegar, and freekeh value chains in Lebanon, the LIVCD processed food team organized training sessions for several universities. These training sessions are part of LIVCD STIP (Science, Technology, innovation, and partnerships) that focuses on collaborating with universities to transfer and update students’ knowledge of processed food technologies.

Notre Dame University (NDU) On April, 16, 2018, LIVCD carried out a training session under the title of “Pickling and Vinegar Fermentation”. The aim of the training was to introduce 20 nutrition and food science students to the new and updated interventions in the Lebanese industries and the attained results. NDU training session Lebanese American University (LAU)

On April, 23, 2018, the processed food team carried out training for 20 Nutrition students on freekeh processing. The aim of this training was to transfer knowledge to the students about freekeh production, testing and monitoring techniques.

USJ- ESIAM On June 1, 2018, the LIVCD Projects’ Processed Food team carried out training on the new technology of tank fermentation for pickles that was introduced for the first time in Lebanon by the USAID funded LIVCD Project for 5 students at “Univesité Saint Joseph”- ESIAM-Taanayel- Zahle District.

Workshop/ Venue Date Trainer No. of Training Attendees Vinegar Fermentation and Lebanese American 13-Apr- Hill Skaff 10 Labeling University- Byblos 18 Pickling and Vinegar Notre Dame University- 16-Apr- Hill Skaff 20 Fermentation Louaizeh 18 Seminar on Preventive American University of 17-Apr- Joseph 21 Control Qualified Individuals- Beirut 18 Bou FSMA 18-Apr- Samra 18 19-Apr- 18 Freekeh Training Lebanese American 23-Apr- Charbel 20 University- Beirut 18 Daher

US Market Entry: Specialty Lebanese American 15-May- Jim 45 Food University- Beirut 18 Krigbaum Pickles: Tank Fermentation Université Saint Joseph- 01-Jun-18 Hill Skaff 5 ESIAM Road Map to Food Product Notre Dame University- 05-Jun-18 Dr. Fadi 73 Development Louaizeh Aramouni Total 194

Upcoming quarter activities and grants

Pickles & Vinegar sector  Data collection on pickle sales in local and export markets for the pickle value chain impact assessment.  Facilitate linkages between farmers, cooperatives, industries, and other donors.

Cereals and grains  Data collection on freekeh sales in local and export markets.  Facilitate linkages between farmers, cooperatives, industries, and other donors.

Other sectors  Continue to support the Chamber of Commerce, Industry, and Agriculture in Zahle (CCIAZ) to upgrade their laboratory testing services under the grant to upgrade their laboratory.

Approved grants Royal organics: Utilizing second grade grapes used for grape syrups to introducing new product lines (including Healthy snacks and cereal bars)

Lebanese mezze: Supporting Increased Production Capacity to Expand Sales at women led enterprise - Lebanese Mezze

Technical Assistance  Second House Products: Cost Analysis  Nutrition Facts development for products made by the companies WADA, Najmet Al Sobh, Mechaalany and J.Grove.  Product development TA through Consultant Dr. Aramouni  Market penetration TA through Consultant Jim krigbaum

Upcoming trainings and workshops  Financial Accounting training by STTA Khoder Abboud  Workshop on Pickles and vinegar for transfer of knowledge to Agro food processors

RURAL TOURISM VALUE CHAIN

Rural Tourism Value Chain - Quarterly Results Jan-Mar Year VI - (Oct 2017 to Sep 2018) Oct-Dec 2017 Apr-Jun 2018 Jul-Sep 2018 2018 Indicator Title Q1 Q2 Q3 Q4 Actual Y6

Number of MSMEs, including farmers, and other organizations 131 57 35 223 receiving business development services from USG assisted sources

Number of jobs impacted by LIVCD implementation 32 24 24 80 DO 2c: Proportion of female participants in USG-assisted programs designed to increase access to productive economic resources (assets, 54 33 24 111 credit, income or employment)

IR 2.1.a: Number of beneficiaries who have applied improved 33 23 24 80 technologies or management practices as a result of USG assistance

Number of individuals who have received USG- supported short-term 52 56 53 161 training. Sub-IR 2.1.2.a: Number of MSMEs, including farmers, and other 30 31 4 65 organizations benefiting from new horizontal & vertical linkages IR 2.2a: Number of enterprise/farmers that successfully accessed 0 0 0 0 loans, private equity, or both as a result of USAID assistance $ $ $ Sub-IR 2.2.2a Total value of loans issued as a result of USG assistance 0 - - - Number of public-private partnerships formed as a result of FtF 0 2 0 2 assistance Number of MSMEs, including farmers, reached by USG to apply for 0 1 0 1 value chain finance

Summary of Top Results

The most significant activities in the rural tourism value chain during this quarter were the following:  Completion of multiple activities with Bcheale Association for Development.  Completion of multiple activities with Ehmej Development Association  Organizing a closing ceremony for the project ‘Improving the Lebanon Mountain Trail as a Rural Tourism Destination”, in Falougha, Mount Lebanon, on May 16  Organizing a training session for ESIAM university students on the projects’ interventions in the rural tourism value chain, in Moukhtara, Shouf, on May 17  Organizing an opening ceremony of the healthy food snack and picnic area, the Green Shell Restaurant, in Bentael, Mount Lebanon, on June 22

During this quarter, LIVCD worked towards a sustainable exit strategy for the rural tourism value chain allowing stakeholders to cooperate to increase the competitiveness of the rural tourism value chain. LIVCD’s exit strategy is based on the national strategy developed by LIVCD and endorsed by the Lebanese Ministry of Tourism and the Lebanese Government in 2013 built

23 around three pillars of the tourism strategy: (1) marketing and promotion, (2) cluster development, (3) cross-cluster improvement of the quality of rural tourism services.

Marketing and promotion

LIVCD worked in collaboration with Hospitality Services on the grant supported project entitled “Increase stakeholders’ access to rural tourism market through supporting Hospitality Services’ promotional activities” to implement a targeted media campaign with a goal to increase stakeholders’ access to the market, through increased visibility and newly developed marketing tools.

Regional cluster development

LIVCD is supporting the development of the following rural tourism clusters: Batroun/Jbeil, Zahle/Bekaa, Jezzine and Hadath el Jebbeh/Tannourine/Ehmej. The clusters are supported through local tourism initiatives and projects in these areas.

Ongoing grant implementation

LIVCD’s intervention this quarter focused on working with Ehmej Association for Development (Ehmej Association for Development (EAD) is an organization committed to developing the tourism, agricultural, and environmental sectors in Ehmej and all surrounding villages through sustainable projects aiming at promoting rural activities in collaboration with many local partners (individuals, private businesses and associations)). The aim of the grant is to increase the visibility of Ehmej village as a major rural tourism attraction in Byblos Caza, North Lebanon. LIVCD is supporting this through creation of an information center, increasing capacity of Arz Ehmej Park (fabrication of wooden chairs and tables), installing directional signage to guide tourists to Arz Ehmej (the Eco-touristic facility) and development of rural tourism packages for schools and families highlighting the available activities at the Ehmej Park.

Key Activities in the Rural Tourism Value Chain

LIVCD and Bcheale Association for Development upgraded five hiking trails

LIVCD project and Bcheale Association for Development upgraded five hiking trails in Bcheale, North Lebanon, with directional and informative signs to guide tourists on-site. These trails will support rural tourism in the area, increase income, and reduce urban migration.

The upgraded hiking trails

In addition to the upgrading of the hiking trails, USAID assistance included training of local guides to increase their skills and ensure the provision of good quality services to the visitors. Five training sessions were held on June 1, 2, 3, 9 and 10 on guiding techniques and tourism management, in Bcheale. 10 people attended the five-day training. The training focused on the guiding techniques in nature, group management, wilderness first aid, and responsible tourism both in theoretical and practical part.

Training sessions on guiding techniques and tourism management

Furthermore, an information center was created inside Bcheale Municipality building to provide information to tourists and distribute promotional materials, from hiking maps to rural products and handicrafts.

Information center installed inside Bcheale municipality building

Installing an information center at Arz Ehmej facility

During the month of June, LIVCD project and Ehmej Development Association installed an information center near Arz Ehmej Park to provide information to tourists and distribute promotional material. The center will also be a local point of sale for the high quality apples produced in the area. The center will present promotional material including hiking maps, brochures, and rural products. Promotional material and packages will include the overnight accommodation and eating at the restaurant (winter resting area funded through previous LIVCD grant).

Information center installed at Ehmej 26

In addition to the information center, wooden fences were installed around the bungalows in Ehmej Park to increase safety measures in particular for children, since most visitors are families with young children.

Moreover, LIVCD and Ehmej Development Association installed wooden chairs and tables at Arz Ehmej to increase the capacity of the park and accommodate more visitors. Wooden fences installed around Ehmej bungalows

Another component of this project was the installation of 13 road signs for visibility on the main road from Byblos to Ehmej and inside Ehmej village to guide tourists to Arz Ehmej, the Eco-touristic facilities.

Visibility signs installed at Ehmej village Increasing the visibility of Ehmej village as a rural tourism destination in the Byblos Caza (Mount Lebanon) is the goal of the project under partnership between LIVCD project and Ehmej Development Association.

LIVCD and LMTA organize a closing ceremony for the project ‘Improving the Lebanon Mountain Trail as a Rural Tourism Destination”

On May 16, the Lebanon Mountain Trail Association (LMTA) and LIVCD project organized a closing ceremony for the project ‘Improving the Lebanon Mountain Trail as a Rural Tourism Destination”, in Falougha, Mount Lebanon. USAID Economic Growth Office Director, Dr.

William Butterfield, Project Management Specialist, Charbel Hanna, and LIVCD Chief of Party Frank O’Brien participated in the event, which gathered more than 60 local rural tourism experts.

During the ceremony, certificates were distributed to local guides who were trained to improve their guiding services on the LMT and its side trails. Dr. Butterfield and LMTA’s Executive Director, Martine Btaich, focused in their speeches on the importance of the LMT for improving Lebanese villages’ economy, the creation of an attraction that will add to the rural tourism sector in the region, and USAID continuous support to the rural tourism in Lebanon. Improving the LMT as a sustainable tourism destination and fostering economic opportunities for trailside communities are goals of the project under partnership between LIVCD project and LMTA.

Closing ceremony for LMTA project

Training on the projects’ interventions in the rural tourism value chain On May 17, LIVCD project and the Shouf Biosphere Reserve organized a training session for ESIAM university students (second year agriculture) on the projects’ interventions in the rural tourism value chain, in Moukhtara, Shouf. The training focused on the national rural tourism strategy, its key interventions and the projects implemented under this strategy to increase the competitiveness of the rural tourism value chain in Lebanon. 16 students attended the training which was followed by a guided hike on one of the reserve’s trails. The aim of this training was to develop students’ knowledge on the rural tourism programs implemented to increase the competitiveness of the value chain.

Training session on the projects’ interventions in the rural tourism value chain

LIVCD and Al-Hourouf Association launch a healthy food snack and picnic area in Bentael On June 22, 2018, LIVCD and Al-Hourouf Association organized the opening ceremony of the healthy food snack and picnic area, the Green Shell Restaurant, implemented under the project ‘Introducing Rural Tourism Attraction in the Bentael Nature Reserve’, in Bentael, Mount Lebanon.

More than 50 local rural tourism experts participated in the event which included a guided hike in Bentael Nature Reserve. After accomplishing the hike, a ceremony took place in the picnic area next to the healthy food snack implemented both under this project. During the ceremony the president of Al-Hourouf Association, Youssef Matta, the manager of Bentael Nature Reserve, Raymond Khoury, representative of the Minister of Environment, Lina Yammout, and USAID Economic Growth Office Director, Dr. William Butterfield, gave brief speeches focusing on the importance of improving Lebanese villages’ economy, the creation of an attraction that will add to the rural tourism sector in the region and USAID continuous support to the rural

Healthy food snack and a picnic area launched in Bentael Nature Reserve

29 tourism in Lebanon. Increasing the competitiveness of Bentael Nature Reserve as a rural tourism attraction in the Byblos Caza (Mount Lebanon) is the goal of the project under partnership between LIVCD project and Al Hourouf Association.

Main Activities for next quarter The rural tourism value chain will continue following up during the next quarter on all the ongoing grants as follows

 Follow-up on grants implementation with both Ehmej Development Association and Bcheale Association for Development.  Follow-up on grant implementation with LMTA and upgrading of the LMT website.  Follow-up on the implementation of the marketing and visibility grant with Hospitality Services to implement a targeted media campaign with a goal to increase stakeholders’ access to the market, through increased visibility and newly developed marketing tools.  Follow up on the newly opened Arcenciel Tourism activity

Olive Oil Value chain

Olive Oil Value Chain - Quarterly Results Jan-Mar Year VI - (Oct 2017 to Sep 2018) Oct-Dec 2017 Apr-Jun 2018 Jul-Sep 2018 2018 Indicator Title Q1 Q2 Q3 Q4 Actual Y6

Number of MSMEs, including farmers, and other organizations 86 118 316 520 receiving business development services from USG assisted sources

Number of jobs impacted by LIVCD implementation 0 70 315 385 DO 2c: Proportion of female participants in USG-assisted programs designed to increase access to productive economic resources (assets, 39 30 109 178 credit, income or employment)

IR 2.1.a: Number of beneficiaries who have applied improved 3 69 303 375 technologies or management practices as a result of USG assistance

Number of individuals who have received USG- supported short-term 154 154 409 717 training. Sub-IR 2.1.2.a: Number of MSMEs, including farmers, and other 3 4 43 50 organizations benefiting from new horizontal & vertical linkages IR 2.2a: Number of enterprise/farmers that successfully accessed 0 0 0 0 loans, private equity, or both as a result of USAID assistance $ $ $ $ Sub-IR 2.2.2a Total value of loans issued as a result of USG assistance - - - - Number of public-private partnerships formed as a result of FtF 1 1 0 2 assistance Number of MSMEs, including farmers, reached by USG to apply for 1 1 0 2 value chain finance

Summary of Top Results

LIVCD partner wins the Gold Award at the New York Olive Oil Competition After winning the first prize for premium extra virgin olive oil at the National Contest of the best Lebanese extra virgin olive oil in March 2018 during HORECA, Bustan El Zeitoun (LIVCD partner) received a Gold Award at the 2018 New York International Olive Oil Competition (NYIOOC) in April https://nyoliveoil.com/. Bustan El Zeitoun was the only Lebanese olive oil to receive an award at this competition.

Bustan El Zeitoun wins a Gold award at the NYIOOC 31

Bcheale centennial olive trees age estimation – LIVCD/Arizona University study

Between April 2nd and April 5th, 2018, under the olive oil and rural tourism value chains and as part of the Bcheale grant’s activities (G-LIVCD- 251: Integrating Lebanon’s centennial olive tree heritage into rural tourism upgrades in Bcheale, North Lebanon), LIVCD collaborated with Arizona University expert (Dr. Ramzi Touchan to collect samples from the Bcheale centennial olive trees to more precisely estimate their age through the C14 technique (Carbon dating). 14 samples were collected from 8 trees. The 8 trees were coded and GPS coordinates were registered. Olive woods sample collection – Bcheale

Linkage between LIVCD previous grantee and current grantee for olive oil export Under the grant G-LIVCD-237 “Organoleptic and Chemical analysis of Lebanese Olive Oil for classification as extra virgin”, Darbechtar Cooperative, previous LIVCD grantee, exported 1,000 tons (18,000 liters) of olive oil (from 20 farmers) where chemical tests were conducted in the Chamber of Commerce, Industry and Agriculture of Tripoli (CCIAT). The olive oil was exported to Australia in April 2018.

Olive Oil export

LIVCD supports a promotional event to promote Lebanese olive oil

On April 21st, 2018, LIVCD supported the promotional event “Farm Fair – Olive edition” organized by Nature by Marc Beyrouthy to promote Lebanese olive oil, in Kaslik, north of Beirut. The event gathered award winning olive oil producers, Darbechtar Cooperative (Koura), Nicolas Fares and Sons (Lebaa), Olea (Lebaa), Bustan Al Zaytoun (Abra) and J. Grove (Jezzine), and an exhibition of various products (olives, olive oil products, vegetables, jams, fruits…).

NFS and Olea Cooperative at the Farm Fair LIVCD conducted 2 training sessions on olive oil evaluation, classification and tasting techniques to 2 different groups, among them consumers, olive oil stakeholders and farmers. LIVCD supported the event through:  Providing Nature by Mark Beyrouthy with a list of LIVCD partners under the Olive Oil VC (including the winners of best extra virgin olive oil at HORECA under the olive oil national competition)  Conducting awareness sessions during the whole event to visitors and stakeholders (with USAID visibility). Darbechtar Cooperative at the Farm Fair

LIVCD supports university students’ thesis During the period of May – June 2018, LIVCD was invited to attend the defense of 4 students in NDU and USJ/ESIAM on the below 4 listed subjects:  “Determinant factors of antioxidant capacity & phenolic content of Lebanese olive oil” – Jennifer Tomazou  “Determinant factors of quality indices, antioxidant capacity, phenolic content and oxidative stability of Lebanese olive oil” – Jessica Maalouf  “Impact of agro – industrial factors on phenolic content and antioxidant capacity of Lebanese olive mill waste water” – Aline Issa

 “Monitoring the quality of Lebanese olive oil through infrared spectroscopy and chemo metrics” – Michelle Chawi

The material used during the development of the theses are olive oil samples, olive mill waste water and olive fruits collected by LIVCD team and provided to the universities with the collaboration of Dr. Milad Riachi (LARI)

 Sales under Olive Oil VC o Willani SARL grant: From September 2016 till April 2018, Willani SARL sold a total of 171,407 liters of olive oil at a value of $886,170 to both local and international markets

 LIVCD trained: o 397 beneficiaries on Olive oil quality assessment and evaluation, olive oil chemical analysis, IPM and Technical assistance (TA)

Key Activities in the Olive Oil Value Chain

LIVCD continued to monitor the following grants

 Willani under the grant G-LIVCD-208 “Develop a service center for Olive Oil Storage and Bottling in Bchennine and villages in Zgharta Caza”: activities under this grant include the following between September 2016 and April 2018, where also the closing process was done on April 30th, 2018:

 A total of 142,347 liters of olive oil were filled in bottles of capacities: 0.25L, 0.5L, 0.75L, 1.5L and 2.85L  A total of 29,060 liters of olive oil were filled in tins (18 L) Olive Oil Sales:  Local Market o A total of 125,067 liters of olive oil were sold to a total of 20 local markets at $643,134  Export Market o A total of 46,340 liters of olive oil were exported to 6 markets (US, Venezuela, France, Great Britain and Germany) at $243,036

The above-mentioned olive oils were all tested for acidity and peroxide before being sold.  Willani was able to export around 46,340 liters of Olive Oil at a value of $243,036 (US, Venezuela, France, Great Britain and Germany)  Willani sold locally around 125,067 liters of Olive Oil at a value of $643,134

LIVCD delivers equipment to an olive oil producer in North Lebanon On April 13, LIVCD delivered to olive oil producer Willani SARL an automatic self-adhesive labeling machine. That new labeling machine with a capacity of 2,000 - 3,000 bottles/hour (depending on capacity of bottles) will facilitate and increase the olive oil bottling process. Between April 23rd and April 25th, 2018, a training was conducted by Cedarstec expert Giuliano Ciampelli to Willani staff, under the supervision of LIVCD North team.

On April 25th, 2018 a final operation and startup of the machine was conducted by Willani staff themselves in the presence and supervision of LIVCD team, and Cedarstec representatives. Delivery of the automatic self-adhesive labeling machine

The last trial was done successfully by Willani staff where all containers were calibrated according to their specific labels and sizes. And the capping and sealing processes were also successfully conducted.

CCIAT under the grant G-LIVCD-237 “Organoleptic and Chemical analysis of Lebanese Olive Oil for classification as extra virgin”- Following the grant signature, LIVCD is following up with the grantee to monitor the purchase of the equipment needed:

Since the beginning of April 2018 through the end of the quarter, the following has been achieved and delivered:  Beginning of April 2018: Finalizing the 10 wooden booths with all accessories (sink, chair, drawer, lights)  April 12th, 2018: delivery of 13 cup heaters and 200 blue cups for olive oil tasting along with 200 glass lids (from Rainbow)  April 20th, 2018: delivery of 4 tanks (300L) and 4 tanks (500L) for olive oil storage (from Libansol)  April 26th, 2018: delivery of the Semi-Automatic gallon/tin filling machine

Olive Oil Tasting Organoleptic booths Olive Oil semi-automatic filling machine 35

On April 14th, 2018, a training on “Olive oil quality assessment and evaluation” was conducted by LIVCD during the event SQUAD 2 organized by the chamber of Tripoli and targeting stakeholders in the nutrition sector. The training was led by LIVCD’s Roland Andary and hosted 36 attendees (among them professors, students, engineers, amateurs and olive oil stakeholders). Following the training, 20 attendees tried several samples of olive oil provided by the LIVCD team in the organoleptic booths, Olive oil tasting trials in the organoleptic booths where heaters, blues cups, apples and scoring sheets were available to conduct a professional olive oil tasting evaluation.

Prime Minister and Health Minister visit to CCIAT On April 30 and May 2, 2018, Prime Minister Saad Hariri and Health Minister Ghassan Hasbani visited the Chamber of Commerce, Industry, and Agriculture of Tripoli (CCIAT). During their respective visits, Messrs. Hariri and Hasbani toured the IDRAC center and were introduced to its latest activities, including LIVCD grants by CCIAT staff. The team explained that the grant aims to establish a fully equipped organoleptic panel test room (sensory analysis) for olive oil to complement the existing laboratory at CCIAT (chemical analysis). This will be the first lab of this nature in Lebanon and is a key step in classification of Lebanese oil to be extra virgin following internationally recognized parameters which requires both chemical and sensory testing. PM Hariri visit to IDRAC center projects supported by LIVCD Both Messrs. Hariri and Hasbani visited the preparation room and the organoleptic tasting booths, the olive oil storage and filling room.

On June 7th, 2018, USAID COR Charbel Hanna and LIVCD COP Frank O’Brien, visited the CCIAT with LIVCD North team to observe the progress of the grant – LIVCD team explained to the visitors the progress of the grant and the remaining activities to be executed under this grant.

CCIAT grant – Olive Oil VC

USEK under the grant G-LIVCD-245: “Introducing up to date analytical technology (qPCR) to the olive value chain to aid detection of pathogens and to identify varieties of olive trees supporting enhanced sector competitiveness.”- Follow up on the activities of the grant

On June 13, 2018, LIVCD delivered the qPCR machine to the Holy Spirit University of Kaslik (USEK). Following the installation of the machine in USEK/FAFS laboratories, an introductory training was conducted by the supplier to the technical staff in USEK/FAFS (11 attendees) and LIVCD technical team. This delivery falls under the grant G-LIVCD-245 “Introducing up to date analytical technology (qPCR) to the olive value chain to aid detection of pathogens and to identify varieties of olive trees supporting enhanced sector competitiveness” – USEK. The qPCR machine detects plant pathogens and olive oil fraud and identifies olive trees and other plants varieties. G-LIVCD-251: “Integrating Lebanon’s centennial olive tree heritage into rural tourism upgrades in Bcheale, North Lebanon” q PCR machine installed at – Follow up on the grant’s activities USEK/FAFS

LIVCD conducted several trainings /Technical Assistance targeting grantees, farmers, stakeholders, NGOs and cooperatives. The activities included the below:

 American University of Beirut – Beirut – April 5th, 2018: a training session on “Age estimations and life span of any given species of trees" was held to 29 students in AUB.

 Sawaneh – South – April 10th, 2018: a training on olive oil chemical analysis was conducted to 32 farmers, where improved technology was recorded

 Kabiit – Akkar – April 18th, 2018: a training on olive oil chemical analysis was conducted to 30 farmers, where improved technology was recorded

Olive Oil Organoleptic and Chemical training - Theoretical

 Kaslik – Nature by Marc Beyrouthy - April 21st, 2018: a training on olive oil quality evaluation and assessment was conducted to olive oil stakeholders and consumers

 Kfarhabou – Denniyeh – May 21st, 2018: a training on Integrated Pest Management of olives was conducted to 22 farmers.

 Khyam – South – June 1st, 2018: a training on olive oil chemical analysis was conducted to 15 farmers, where improved technology was recorded

Olive Oil Organoleptic and chemical session - Theoretical Chemical analysis – Farmers applying improved technology

Total # Name/Type of of Total Date event/Training Locations Target Beneficiaries events Beneficiaries Title held

1. CCIAT – Olive Oil Quality Tripoli Assessment and 2 103 Students/Farmers 2. Bcheale - Evaluation Batroun 1. Sawaneh – South 2. Botmeh– Chouf 3. Kabiit – Akkar Olive producers, 4. Deir Jannine – municipalities, Chemical Analysis 7 227 April-June Akkar agriculture 2018 5. Kaa – Bekaa cooperatives/associations 6. Gharifeh – Chouf 7. Khyam – South

1. Kfarhabou – IPM Training 2 Denniyeh 38 Students/farmers 2. Alali – Batroun Age estimation 1 1. AUB 29 Students/farmers training Total 397

 Alali – Batroun – June 12th, 2018: a training on Integrated Pest Management of olives was conducted to 16 farmers.

Olive VC Trainings and TA: April – June 2018

Next quarter

During the next quarter:

 LIVCD will conduct a series of trainings for several cooperatives/associations/mills/University students and individual farmers on Good Agricultural Practices, Integrated Pest Management, Olive Oil Quality and Olive Oil Chemical test.  LIVCD will follow up on the study with LARI, Notre Dame University (NDU) and ESIAM on "Effect of agro-industrial practices on olive oil quality and composition"  LIVCD will lead the Olive Oil Guide finalization and printing process  LIVCD will plan for a training of staff and partners in Europe on Olive Oil Tasting  LIVCD will follow up on grants activities under Olive Oil VC

POME FRUIT VALUE CHAIN (APPLES AND PEARS)

Apple Value Chain - Quarterly Results Jan-Mar Year VI - (Oct 2017 to Sep 2018) Oct-Dec 2017 Apr-Jun 2018 Jul-Sep 2018 2018 Indicator Title Q1 Q2 Q3 Q4 Actual Y6

Number of MSMEs, including farmers, and other organizations 80 67 464 611 receiving business development services from USG assisted sources

Number of jobs impacted by LIVCD implementation 18 68 245 331 DO 2c: Proportion of female participants in USG-assisted programs designed to increase access to productive economic resources (assets, 21 23 28 72 credit, income or employment)

IR 2.1.a: Number of beneficiaries who have applied improved 25 70 300 395 technologies or management practices as a result of USG assistance

Number of individuals who have received USG- supported short-term 80 110 324 514 training. Sub-IR 2.1.2.a: Number of MSMEs, including farmers, and other 2 0 228 230 organizations benefiting from new horizontal & vertical linkages IR 2.2a: Number of enterprise/farmers that successfully accessed 0 1 0 1 loans, private equity, or both as a result of USAID assistance $ $ $ $ Sub-IR 2.2.2a Total value of loans issued as a result of USG assistance - 650,000.00 - 650,000.00 Number of public-private partnerships formed as a result of FtF 1 1 1 3 assistance Number of MSMEs, including farmers, reached by USG to apply for 0 0 1 1 value chain finance

Summary of Top Results

 The “Lebanon Apple Task Force” was formed during the last quarter and includes 4 agriculture cooperatives (Ainata, Mar Semaan, Brih, Sannine) and one private company (Shapash) in partnership with Bcharre Municipality. It conducted its 3rd official meeting at Brih service center and “Georges N. Frem Foundation” joined the task as new member. The task force is actively contributing to the establishment of a “National Chart” (that will be launched on July 12) to set standards for Lebanese apple production, including a phytosanitary index, with the Ministry of Agriculture through the EMPARD project supported by the EU.

 The pome fruit value chain initiated the preparation process for a “National Event” on pome fruit with the title: “Together for a Competitive Pome Fruit Value Chain”. The event will be held on Friday July 27th, 2018; in the presence of the Ministry of Agriculture Director General; a full day event where different actors from the Pome Fruit Value chain including those who co-invested with LIVCD to upgrade their facilities will be invited to present their achievements and future plans.

 LIVCD assisted 314 farmers, students and technicians through training on intensive production system techniques, apple summer pruning, drip irrigation, harvesting, and pest management.

 The “Increasing Competitiveness of Pome Fruit Value Chain in Bcharre Caza” grant with Shapash sarl in Bcharre Caza is continuing its training activities and farmer support, in this quarter the concrete construction work of the basement floor has been completed and the sorting line arrived to Beirut port on June 30.

 Startup activities of the Ehmej grant: “Increasing rural economic opportunities through increasing visibility of Ehmej village as a rural tourism destination and improving post- harvest in apple production”. This grant is merging rural tourism and apple production promoting a number of activities including quality production, harvest and postharvest services for apple producers aiming to increase quality.

Key Activities

 The grant between LIVCD and the private company “Shapash s.a.r.l.” for “Increasing Competitiveness of Pome Fruit Value Chain in Bcharre Caza”; is under implementation and the following activities have been achieved:

Activity 1: Cooperation related to production and harvest: After completing the statistical data collection from Bcharre village as well as from 5 other villages in the Bcharre caza; the Municipality of Bcharre started the implementation of a strategic plan to control the “Mediterranean Fruit Fly”, being a major insect attacking the pome fruits in the area.

The Municipality, through an agriculture engineer, started to conduct technical field visits to farmers’ orchards and has communicated a hot line number for farmers to call for any assistance and technical support. In addition, insects monitoring traps were distributed to farmers to help identification the Med. Fly and organize collective spraying.

In addition to the 3 previous training sessions, a 4th training was conducted on June 24th 2018, in Hassroun village by Bcharre Municipality agriculture expert and Shapash sarl on: “Increasing apple quality through harvesting, production and pest management”. Handouts and presentations were developed and distributed to farmers during the training session.

Activity 2: Establishing a sorting and packing facility (Shapash cost share)

Legal papers and agreements - A BOQ and scope statement for electrical and plumbing works was prepared.

- Electrical and plumbing work quotations were prepared and installation started. - Dock loading area bays started installation. Construction - Ground floor foundation, retaining walls, columns were completed. - Concrete roof of first floor was completed on the last week of June. - Warehouse pots fabrication was completed and will be installed before July 15th, 2018. - Plumbing infrastructure work was finalized in the ground floor. - Plumbing and electrical infrastructure work is 60% finalized in the first floor.

Finalizing the roof of the 1st floor

Activity 3: Purchasing and installing an automated sorting line and a palletizer (LIVCD contribution). - The sorting machine developed in Italy by the manufacturer was finalized and shipped to Lebanon.

Activity 4: Branding strategy (Shapash cost share) - Brand identity and other aspects of the strategy are under development. Shapash selected a final logo. - Website design was achieved (www.cedrine.co) and is in the final evaluation stage before lunching on-line. - Corporate brochure design is finalized.

 Under the Grant: Increasing Competitiveness of Selected Value Chains: Pome fruits, Stone Fruits, Grapes; implemented with Debbane Freres, 45 farmers have to date been provided with new types of equipment: electrostatic sprayers, water collection tanks, and drip irrigation systems. Assistance was distributed as follows:

- Olive farmers: 8

- Apple farmers: 10 - Avocado farmers: 11 - Grape farmers: 15 - Cherries farmer: 1 This grant is now under closing procedure and is expected to be closed during the next quarter.

 Under the Grant: “Increasing rural economic opportunities through increasing visibility of Ehmej village as a rural tourism destination and improving post- harvest in apple production”. (This grant is merging Rural Tourism and apple production promoting a number of activities including quality production, harvest and postharvest services for apple producers aiming to increase quality). Through this grant LIVCD assisted Ehmej Development Association to:

- Establish a data base system for traceability in cooperation with the GS1 office at the Chamber of Commerce in Beirut.

Ehmej training session - Create a full branding and packing design (under development).

- Training a team of youth to provide quality pruning and harvesting services to apple farmers in the area,

The equipment listed below was provided through the grant.

Apple plastic 5.000 crates pieces

Electrical forklift ( 1 piece Grantee Costshare)

Electrical 2 pieces pruning shear

Manual pruning 6 pieces shears

Manual pruning 1 piece shear on pole

Lopper pruning 6 pieces shears

Curved saw 6 pieces

Manual saw on 1 piece pole

Saw on fuel 2 pieces

Ladder 6 pieces

 Closing the loop and sharing learning

As part of the apple value chain closing out process, LIVCD is facilitating the formation of an entity that will act as a National Umbrella to continue activities for the pome fruit value chain, beyond the life of LIVCD. After the 1st meeting on January 24th, 2018, at Padova Hotel and the 2nd meeting on March 16th, 2018, at the LED Project; the “Lebanon Apple Task Force” conducted a 3rd meeting at the Brih agriculture service center on June 2nd 2018. Georges N. Frem Foundation joined the “Lebanon Apple Task Force” and invited all participants to have the next meeting at Frem foundation premises in Jounieh.

A tour was conducted at the service center showing the different equipment and services provided, as well as a site visit showing the intensive horizontal trellis system and the V-shape trellis system at the demonstration plot supervised by the cooperative. During the meeting the following topics were discussed: 1- Benefit of cooperation between different players. 2- Advantages and benefit collective purchase. 3- Proposing the idea of a “National Consortium” of apple farmer group.

All the participants confirmed the need and benefit of cooperation and communication between players. Participants agreed that collective purchase of pesticides and fertilizers can be based on the “National Chart” recommendations for apple production that is now being finalized by the EMPARD Project.

A concern was raised on potential conflict between the national committee to be established by the Ministry of Agriculture to manage the “National Chart” and the idea of establishing National Consortium. Several points were raised during the discussion:

- The Consortium can be a wider body than the National Committee and will be backing it up and feeding it with competent members during new committee elections. - The National Chart is only limited to basic guidelines, while the Consortium can work on a wider plan and can lobby to introduce and implement a full “Integrated Production System” - IP system; including traceability. - The Consortium can help to rise funding for the IP implementation. - The Consortium can support and organize collective purchase operation.

 Participating in National Strategies

After a 3-day workshop conducted by the EMPARD project on March 2nd to 4th 2018 to create a “Phytosanitary Index” for apple production in Lebanon; a full day meeting was conducted on May 2nd, 2018 to confirm the content of the Index and to move forward towards the chart signature. Entities Ainata cooperative, Mar Semaan cooperative, Brih and Sannine cooperative and Shapash as private entity who were previously supported by LIVCD participated in these meetings and provided relevant input to the discussion and outcome.

The final National Chart is planned to be launched on July 12th, 2018 by the Minister of Agriculture through a national event.

 Pome Fruit Final Event

The pome fruit value chain initiated the preparation process for a “National Event” on pome fruit with the title: “Together for a Competitive Pome Fruit Value Chain”. The event will be held on Friday July 27th, 2018; a full day event where different actors from the Pome Fruit Value chain including those who co-invested with LIVCD to upgrade their facilities will be invited to present their achievements and future plans.

The overall aim of this event is twofold, firstly a networking opportunity and secondly to present business models and their impact on the apple value chain. Different government institutions, including the Ministry of Agriculture represented by its Director General, NGOs and donor projects in Lebanon will also be present and have the opportunity to present their interventions and plans.

The final tutorial videos as well as the interactive training manual will be available for use and dissemination during the event.

 16 training sessions across Lebanon were conducted, as described in the table below. 314 farmers, students and technicians were trained on intensive production system techniques, apple summer pruning, drip irrigation, harvesting, and pest management.

Name/Type of Date Location F M Total Target Training Intensive Production System and New Technology to Increase Pome Fruit 4/13/2018 Ainata 5 1 6 Students Competitiveness in Lebanon and Introduction to Cherries Intensive Plantation Training on development of 4/24/2018 Ehmej 2 2 4 Farmers and Technicians traceability system GS1, Ehmej association, Field visit and training ,AUB L3 students Ainata and Dier 4/30/2018 visiting the apple and 10 7 17 Students El Ahmar cherry demo plot in North Bekaa area Bkarsounsa- 5/18/2018 Training on Apple IPM 25 25 Farmers Dennieh Nemrine - 5/18/2018 Training on Apple IPM 34 34 Farmers Dennieh Apples training on Kheyem- 5/21/2018 harvest and postharvest 6 12 18 Farmers Marjaoun practices Increasing Apples quality through Harvesting, Bkerkasha- 5/23/2018 Production and Pest 2 22 24 Farmers Bcharre Management Best Practices Sarada/Wazane- 5/28/2018 Apples Summer Pruning 10 10 Farmers Marjaoun

6/2/2018 Apple summer pruning Aoura 2 27 29 Farmers Benefit of drip irrigation 6/4/2018 system and fertigation Bhamdoun-Aley 15 15 Farmers on fruit quality and need

for water reservoirs to control irrigation timing

Benefit of drip irrigation system and fertigation 6/8/2018 on fruit quality and need Zahle 10 10 Farmers for water reservoirs to control irrigation timing Practical training on Assoun - 6/11/2018 25 25 Farmers Apple summer pruning Dennieh Summer pruning and 6/16/2018 pest management on Ehmej, Jbeil, 50 50 Farmer and Technicians apples, Practical training on 6/20/2018 Apple summer pruning Baskinta 19 19 Farmers in Increasing Apple quality through Harvesting, Hasroun, 6/24/2018 Production and Pest 24 24 Farmers Bcharre Management Best Practices Training on development of 6/28/2018 Ehmej - Jbeil 2 2 4 Farmer and Technicians traceability system GS1, Ehmej association Total 29 285 314

Next quarter

 LIVCD will continue to support technical services to farmers through the established “Production Service Centers”.  LIVCD will continue to strengthen the bonds between the formed “Lebanon Apple Task Force” and work towards adding new members and establishing a bigger consortium.  LIVCD will be holding a National Event “Together for a Competitive Apple Value Chain” on July 27th 2018 to present achievement, share learning and facilitate linkages.  LIVCD will continue disseminating the 4 produced tutorial videos on summer and winter pruning, harvesting best practices, post harvesting best practices, and intensive pome fruit plantation using dwarf root stock and trellis system.  LIVCD will continue disseminating the produced “Interactive training manual” to be used by trainers in performing technical training sessions.  LIVCD will continue implementation of the “Shapash s.a.r.l.” grant and will start preparation for the launching ceremony on September 2018.

Challenges & Mitigation Measures

 The performance of the Lebanese pome fruit sector this year was moderately better than last year, largely due to Egyptian traders ordering considerably larger amounts of fruit than last year. The main reason for this is that in Europe, the production of apples was curtailed by a severe frost during the flowering phase, which caused a loss of 40% of the production. In addition, the value of the Euro has increased. Together, those factors contributed to increased demand for Lebanese apples in Egypt as well as in the Gulf markets.

 Devaluation of the Egyptian currency continues to have a significant impact on Lebanese exporters’ ability to ship to Egypt, which is Lebanon’s most significant apple market. The LIVCD team is working with apple value chain stakeholders to access alternative markets.

CHERRY VALUE CHAIN

Cherry Value Chain - Quarterly Results Jan-Mar Jul-Sep Year VI - (Oct 2017 to Sep 2018) Oct-Dec 2017 Apr-Jun 2018 2018 2018 Indicator Title Q1 Q2 Q3 Q4 Actual Y6

Number of MSMEs, including farmers, and other organizations 219 221 2 442 receiving business development services from USG assisted sources

Number of jobs impacted by LIVCD implementation 0 153 1 154 DO 2c: Proportion of female participants in USG-assisted programs designed to increase access to productive economic resources (assets, 17 8 0 25 credit, income or employment)

IR 2.1.a: Number of beneficiaries who have applied improved 42 27 2 71 technologies or management practices as a result of USG assistance

Number of individuals who have received USG- supported short-term 236 222 0 458 training. Sub-IR 2.1.2.a: Number of MSMEs, including farmers, and other 13 0 2 15 organizations benefiting from new horizontal & vertical linkages IR 2.2a: Number of enterprise/farmers that successfully accessed 0 0 0 0 loans, private equity, or both as a result of USAID assistance $ $ $ Sub-IR 2.2.2a Total value of loans issued as a result of USG assistance 0 - - - Number of public-private partnerships formed as a result of FtF 1 1 0 2 assistance Number of MSMEs, including farmers, reached by USG to apply for 1 1 0 2 value chain finance

Summary of top results During this quarter, LIVCD collaborated with two private companies, namely Grabit/Cherry Good in Hammana and Al Samad trading in Ferzol, Bekaa, to upgrade the cooling room and post-harvest practices. LIVCD has started the closing process for Grabit/Cherry Good Grant No. G-LIVCD-236. This grant has been finalized and closed. LIVCD followed up with Al Samad to conduct all the activities listed within the grant in order to upgrade the cooling facility in Ferzol-Bekaa next to Ferzol wholesale market, where 70% of the cherries passes through this market chain. In addition to the grants, LIVCD has been following up technically on the demo plots established last year. The technical team observed that during this quarter 1) the cherry varieties planted in the demonstration plots 18 months ago, boure fruit for the first time and 2) the new varieties introduced by the LIVCD project, unlike the traditional varieties, were much less susceptible to cracking and splitting, from the heavy rain which fell during May and June.

Key Activities In this quarter, LIVCD continued to support the cherry farmers and university students by conducting several trainings and providing technical assistance, including: Monthly visits to the 12 cherry demo plots established under Liban Village Grant No. G-LIVCD-181

 During this quarter, LIVCD continued to follow up and monitor the 12 cherry demonstration plots (trellis and conventional) established in the North, Mount Lebanon and Bekaa regions. The visits included the inspection of the cherry trees, as well as providing instructions and recommendations to be followed by the farmers.  During this quarter, the cherry varieties planted eighteen months ago in the demonstration plots, have exhibited good growth levels, and presented fruit for the first time.  LIVCD noted that 90% of the traditional Lebanese cherry varieties, planted in the different Lebanese regions, cracked this year as a result of unusually heavy and late rains during May and June. Only 20% of the new cultivars (Fertar) planted in the demonstration plots, established with the assistance of the LIVCD project, and were similarly affected.

New orchards with fruits for the first time

Training

Training session on Apple and Cherries for the American University of Beirut (AUB) students- faculty of Agriculture/AREC

 On April 30, 2018, LIVCD team organized a training session on “Everything you need to know about cherries and apples” for students from the AUB/AREC at the university’s experimental field in Bekaa. 17 (including 9 females) students attended the training, which focused on orchard design, agriculture practices, irrigation planning, trellis system, harvest & post-harvest practices, the marketing and exportation.

 Visits to the Cherry demonstration plot in Deir El Ahmar, the apple demonstration plot in Ainata as well as the Ainata Coop service center were organized to demonstrate the new technology of the trellis system. 

Students at the Cherry Demo plot-Deir El Ahmar-Bekaa Training session for AUB/AREC students Grants Upgraded Abdul Basset Al Samad for Trading facility in Ferzol-Bekaa. G-LIVCD- 250 “Upgrading the Cherry Postharvest Techniques”

 During the months of May and June 2018, LIVCD and Al Samad for trading updated the sorting and cooling facility in Ferzol-Bekaa to establish a modern facility for the delivery of a high quality cherry products to local, MENA and international consumers. The facility upgrade included, a pre-cooling, cold storage rooms, packing area equipped with stainless steel tables, and a mobile cooler.

 On May 15, 2018, a field visit was conducted by the LIVCD team to Al Samad facility in Ferzol-Bekaa.

The following was found to be installed and its final stages: o The insulation of the cooling room. o The refrigeration unit was installed as well its compressor for the cooling room.

o The refrigeration unit was installed as well its compressor for the pre-cooling room. o The interior painting was completed. o The installation of new ceiling lights. o The upgrading of the electricity wiring. On May 23, 2018 LIVCD team conducted another follow up visit to find that. o The pre-cooling unit was almost in its final stage. o The refrigeration unit was fully installed in the cooling room.

 On June 1, the facility was fully rehabilitated, the floor was covered with epoxy, the cooling room fully installed and the precooling was updated.

 On June13, 2018, LIVCD organized a training on the process of sorting and precooling cherries at Al Samad packing facility. The cherry expert Ghassan Feghali conducted the training session to the owner and the facility manager on the process flow of receiving, pre-cooling and packing cherries.

Al Samad rehabilitated facility

The newly installed storage room The upgraded cold storage to a precooling room

During this quarter the following items under the grantee cost-share contribution were purchased

 A 2008 Renault (Kango), intended for marketing.  Plastic crates, 500 pcs of 20kg and 5420 pcs. of 7kg, were purchased by Al Samad.  A Toyota Dyna 400 AC truck, to be equipped with a refrigerated box.

LIVCD monitoring Grabit/Cherry Good Grant - G-LIVCD-236

 During this quarter, following LIVCD’s grant and technical assistance, Grabit/Cherry Good adopted the postharvest techniques of the pre-cooling and cooling of the cherries. Having made these upgrades, Grabit/Cherry Good secured a 3 year contract with Spinney’s Supermarket, which resulted in purchasing a total of 4,500 kg of sorted cherries for the 2018 cherry season., Inaddition Grabit secured purchasing agreements with Karma (Mr. Khaled Sinno), and Abdul Basset Al Samad for Trading, Lebanese exporters. These agreements lead to purchasing a total of 1,920 kg of cherries from Grabit.  During the quarter Grabit purchased cherries from 12 new farmers to fulfill its orders to the market.

Grabit cherries on the shelves at Spinney’s supermarket

 On April 27, 2018, the purchasing of the hand trans-palettes was finalized, and were delivered by the vendor to the Grabit facility (Grantee).

 On May 2, 2018, the Dyna 200 truck (cost share) purchased by Grabit/Cherry Good last quarter, was equipped with the refrigerated box and the refrigeration unit, as per the specifications.

Cooling truck equiped with the refrigirated box

 On May 14, 2018, the Suzuki 99 van (owned by Grabit) was insulated and a refrigerated unit was installed.

 On May 25, 2018, the LIVCD observed the first cherries in the pre-cooling and cooling rooms. Grabit/Cherry Good owners faced some initial operational challenges which were addressed by the supplier.

New packaging material

 On June 17, 2018 Grabit/Cherry Good picked the first Cherry fruit (variety- Fertar) from its orchard, which was established a year ago with the assistance of LIVCD project.

Filming and production of two short videos

 During this quarter, LIVCD organized filming days in Bcharre-North Lebanon and Hammana-Mount Lebanon. The shooting will be used to produce a 3-4 minute video, for each location, which will focus on the following:

 The story of Cherry in Hammana, a Lebanese village that is known for its delicious red fruit, and the intervention of the LIVCD project in motivating its farmers and land owners to invest again in producing cherries. The video shooting included interviews with farmers that have witnessed the evolution of cherries in the area, and farmers who benefited from the LIVCD project. The shooting in Hammana also included the celebration of the annual Hammana Cherry day on June 10, where cherry producers, market and promote their cherries. The filming in Bcharre will include the success of the electrical pruning, spraying, harvesting and storage. Interviews with beneficiaries will reflect on how the farmers have started to believe again in the cherry production. The video production is expected to be finalized in the month of July 2018.

Hammana Cherry Day Festival

 On June 10, LIVCD supported the Hammana-based cherry producers (, to market their cherries and promote their farms during the annual Hammana Cherry Day Festival-2018. Many visitors from Beirut and the surrounding region attend this event which is an excellent market opportunity for cherries produced in this area. Hammana Cherry Day Festival-2018

Main Activities for next quarter

 The Chery value chain will continue following up on the established demo plots (trellis and Conventional) in the North, Mount Lebanon, Bekaa and Baalback- Hermel during the next quarter.

 LIVCD will finalize and close Al Samad grant to upgrade its post-harvest facility in Ferzol-Bekaa.

 LIVCD will collaborate with Dr. Hala Chahine from the Lebanese University in the post-harvest research to provide technical material, e.g. varieties introduced in each demo plot, improved technology used to enhance the quality of cherry.

AVOCADO VALUE CHAIN

Avocado Value Chain - Quarterly Results Jul-Sep Year VI - (Oct 2017 to Sep 2018) Oct-Dec 2017 Jan-Mar 2018 Apr-Jun 2018 2018 Indicator Title Q1 Q2 Q3 Q4 Actual Y6

Number of MSMEs, including farmers, and other organizations receiving 18 7 69 94 business development services from USG assisted sources

Number of jobs impacted by LIVCD implementation 0 17 2 19 DO 2c: Proportion of female participants in USG-assisted programs designed to increase access to productive economic resources (assets, credit, income 1 1 23 25 or employment)

IR 2.1.a: Number of beneficiaries who have applied improved technologies 3 2 3 8 or management practices as a result of USG assistance

Number of individuals who have received USG- supported short-term 21 15 91 127 training. Sub-IR 2.1.2.a: Number of MSMEs, including farmers, and other 3 22 2 27 organizations benefiting from new horizontal & vertical linkages IR 2.2a: Number of enterprise/farmers that successfully accessed loans, 0 0 0 0 private equity, or both as a result of USAID assistance $ $ $ $ Sub-IR 2.2.2a Total value of loans issued as a result of USG assistance - - - -

Number of public-private partnerships formed as a result of FtF assistance 0 0 0 0

Number of MSMEs, including farmers, reached by USG to apply for value 0 0 0 0 chain finance

Summary of top results LIVCD’s avocado team continued to support avocado farmers and suppliers by providing demand-driven technical assistance across the Lebanon’s avocado regions. LIVCD collaborated with private company Chehab Freres and started to conduct trials for ready-to-eat avocado. In addition to that, Ms. Georgette Lahoud and Dr. Sandra Fahd attended an international congress on tropical fruit held in Macfrut Rimini, on the 10th and 11th of May, 2018.

Key Activities Field visits Routine follow-up visits were conducted to farmers who established their orchards in previous years with LIVCD support. This continues to be a critical activity, as many of these farmers are new to avocado production and close supervision at this stage is needed to ensure success. Many farmers are using interactive WhatsApp group communication as an effective and instant communication tool to share and solve problems.

Develop training materials to transfer knowledge in avocado harvesting and post harvesting. - Kferhay- April 12, 2018: The aim of the visit was to develop and evaluate appropriate training materials developed for Avocado dry matter tests and to test the training material before delivering it to farmers, exporters, retailers, research institute (LARI and the Chambers) and consumers. An overview was made to a lead farmer in Batroun -Dr. Hani Bassil on the relationship between the dry matter percentage, oil content and the taste acceptability and the harvest time of avocados. After the trial, Dr. Bassil was impressed by easiness and practicality of the method and agreed that the approach would be easy for farmers to understand and use. The exercise was repeated as mentioned below to Lebanese avocado on May 4 and Avocado dry matter test June 26 to a group of the largest avocado producers in Lebanon. The method consists of using a microwave oven as used in various producing countries and exporting countries of avocados. This method has its merits due to its speed, simplicity, low cost, and repeatability. An overview was made to lead farmer in Batroun Dr. Hani Bassil on the relationship between the dry matter percentage, oil content and the taste acceptability and the harvest time of avocados. After the trial, Dr. Bassil was impressed by easiness and practicality of the method.

Training 4 trainings were delivered to avocado producers and students from agricultural faculties, tackling different practices relevant for the current season.  On April 13th, LIVCD delivered a technical training to Balamand agriculture students. After the training, a field visit was conducted in which LIVCD has explained the orchard establishment steps to be followed when implementing a new avocado orchard. A Total of 29 students have attended the training.  On April 16th, LIVCD team conducted a training in Kharayeb-South Lebanon for 25 new farmers. The technical team explained how to initiate an avocado orchard by selecting suitable varieties, and using the correct orchard establishment and management techniques.  On May 4th, a technical training was delivered to Lebanese Avocado Company in Saida, on “harvest and post-harvest practices” emphasizing the dry matter method to be used to identify time of harvest for each variety.  On June 26th, a training on avocado harvest and post-harvest was conducted for 30 lead farmers in South Lebanon. During the training, Dr. Sandra Fahd highlighted two case studies, two different models used in marketing avocado in Europe.

Ready to Eat LIVCD is collaborating with Chehab Industrial & Medical Gases Sal. to conduct trials on understanding the avocados ripening process. Proper management of this process is key to optimizing end market sales of ripe or ready to eat avocado. Chehab is interested to collaborate as he can include them as new services to his company. The presence of unripened avocado in the market can lead to a decrease in customer confidence related to consumption. This decrease in confidence leads to reduced sales as a result of consumers failing to obtain ready to eat product on demand. This is key to growing the market for avocado and it is important that it coincides with increasing production to avoid a surplus arising in the market. Chehab Industrial & Medical Gases Sal will provide an equipped room in their factory located in Debbiyeh, Mount Lebanon to conduct trials using ethylene gas. Ethylene gas is used in the avocado ripening process. Meanwhile, LIVCD will provide Chehab with studies on avocados ripening and avocado fruits for trials. Chehab has also expressed an interest in growing avocado and is expected to start production later in 2020.

Avocado ripening awareness campaign A lack of understanding of harvesting and ripening dates of avocado can lead to a decrease in consumption and thus to a decrease in sales and demand as consumers are unable to purchase ripe, ready-to-eat avocado when they expect to. This leads to customer frustration and can result in reduced customer confidence in Lebanon’s avocado. This issue is common to all avocado growing countries but as Lebanon is new to the sector and possesses limited expertise the issue is only now being addressed as the market and local demand expands. During the ToT in the US in 2017, the experts sent by LIVCD were introduced to a post- harvest activity which was new to them and which could help alleviate potential problems related to meeting end market expectations and readiness of avocado for consumption in the future. To address this issue LIVCD’s team produced a short awareness tutorial to increase the know- how of consumers, farmers, aggregators, and retail shops to identify the different varieties of avocados by showing their physical characteristics and picking time. This tutorial will be used during training sessions, tackling the importance of understanding the correct harvesting period for avocado as ultimately this has a significant impact on the continued growth of the value chain.

Updating the avocado booklet The LIVCD avocado booklet was revised and updated based on new knowledge gained during the ToT in California in 2017 and based on observations relevant to production conditions in Lebanon provided by Dr. Daoud Raad, a Water Management Expert at Lebanese University, and avocado expert Mr. Mohamad Hijazi. The booklet will include a new chapter on “Harvest and Post-Harvest practices for avocado” and will be available for distribution during the next quarter. The booklet will complement the recently completed LIVCD video tutorial.

Attending Tropical Fruit Congress

Macfrut is a leading trade fair for professionals operating in the fruit and vegetables sector in Italy and in Europe. The Tropical Fruit Congress was held in Macfrut 2018 in Rimini – Italy, May 10th and 11th. According to the MacFrut website, it is the first event in Europe dedicated to exotic fruit. More than 300 attendees from 30 different countries were present. The first day was dedicated to current market trends, consumption, trade but also scientific developments, technology and methods of selling products that are increasingly in demand in global markets. Meanwhile, the second day focused on production techniques. The program of speakers and discussions featured technical and marketing experts from around the globe such as USA, Mexico, Spain, Colombia, Dominican Republics, etc… It included also university teachers, researchers, CEOs and marketing managers of the most important exotic fruit organizations mainly Nature’s Pride, World Avocado Association, Mc Garlet, Spreafico, EuroFresh. The congress covered the Mango and Avocado fruits.

Next quarter  LIVCD’s team will continue to visit the demo plots established under grant agreements with the Bater and Menjez cooperatives and EMKAN, and follow the progress of the farmers.  LIVCD’s team will launch the avocado digital tutorial at an event expected in July 31st 2018. At the event, the team will also start the awareness campaign on avocado varieties and their relative harvesting time, learned using the dry matter method. The LIVCD team will print and distribute the updated edition of the avocado booklet.  Continue conducting trials with Chehab Brothers on the ripening process.

GRAPES VALUE CHAIN

Grape Value Chain - Quarterly Results Jul-Sep Year VI - (Oct 2017 to Sep 2018) Oct-Dec 2017 Jan-Mar 2018 Apr-Jun 2018 2018 Indicator Title Q1 Q2 Q3 Q4 Actual Y6

Number of MSMEs, including farmers, and other organizations receiving 76 24 24 124 business development services from USG assisted sources

Number of jobs impacted by LIVCD implementation 71 25 7 103 DO 2c: Proportion of female participants in USG-assisted programs designed to increase access to productive economic resources (assets, credit, income 40 1 33 74 or employment)

IR 2.1.a: Number of beneficiaries who have applied improved technologies 78 25 4 107 or management practices as a result of USG assistance

Number of individuals who have received USG- supported short-term 53 20 74 147 training. Sub-IR 2.1.2.a: Number of MSMEs, including farmers, and other 93 9 7 109 organizations benefiting from new horizontal & vertical linkages IR 2.2a: Number of enterprise/farmers that successfully accessed loans, 0 0 0 0 private equity, or both as a result of USAID assistance $ $ $ $ Sub-IR 2.2.2a Total value of loans issued as a result of USG assistance - - - -

Number of public-private partnerships formed as a result of FtF assistance 1 2 0 3

Number of MSMEs, including farmers, reached by USG to apply for value 0 1 0 1 chain finance

Summary of top results

 LIVCD organized the grapes international expert visit to Lebanon from June 18 to 22, 2018. Four large-scale grapes growers and two groups of 2 and 4 additional medium scale farmers benefited directly from the expert field visits. Furthermore, the expert's visit was crowned by a seminar at the CCIAZ, where, LIVCD gathered more than 110 participants from the grapes sector, whom have benefited from the two key topics, namely on grapes production practices and on the key procedures of harvesting and post-harvest methods.

LIVCD tracked the completion of G-LIVCD-240 grant “Investment to upgrade the grapes cold chain for the grapes producers at Majdaloun and surrounding villages Jaber Trading Company”. LIVCD grapes team followed closely the implementation of the refrigerated packing room and the precooling unit.

LIVCD technical team in collaboration with CCIAZ succeeded to upgrade the drip system design in 43 orchards. They received the material and the vendor implemented the updated

irrigation system as per the required design and specifications. The grape beneficiaries are from Ferzol, Zahle, Maalaka, Terbol, Ablah, Niha, Riaq, Haouch Hala, Kfardabach, Mazraet Selsata, Chmestar, Deir El Ahmar, Btedii, Bechwat, Yammoune and Anjar; CCIAZ technical team visited and assessed these orchards, covering 520 dunums, before and after implementation. Following the completion of these irrigation systems at the end of the quarter LIVCD requested a costed extension; to add 11 new applicants to this activity.  LIVCD, in collaboration with Libansol team, collected the documents needed from 24 potential beneficiaries under grapes VC, cherries VC and pome fruit VC. LIVCD visited their orchard and reported on the field visits for 24 farmers whom are interested in the modern equipment under G-LIVCD-247 on “Upgrading Technical and Mechanical interventions in the Pome fruits, Stone Fruits and Grapes Orchards”. 14 farmers approved to date have ordered and paid the necessary cost share; Libansol delivered the sulfur dusting machines, the shredders and the Caffini sprayers will be delivered during July and August 2018.

 LIVCD, in collaboration with Debbane Agri organized a training on new technology of water tanks, irrigation systems and the fertigation unit among the grapes farmers in Mansouriet Bhamdoun.

 LIVCD, made 22 field visits to the grapes demo plots established with the grapes farmers under Grapes grants with exporters Medigardens, Jaber Trading Company and Middle East Business Company. The objective of these follow up visits is to ensure good cultural practices, appropriate productivity depending on the variety cultivated and the region for grapes production.

 LIVCD provided ten trainings on grapes production practices for 220 grapes farmers and future agricultural engineers during the quarter.

 LIVCD, in collaboration with its MEL team, followed the organization of the grapes study tour to California; the 12 delegates filled out the necessary forms and submitted the requested documents. The participants applied for the exchange visitor visa during May 2018 and will travel to California beginning of July 2018. The delegates will attend several learning sessions and field sessions on table grapes and will be able to assist the Lebanese farmers and improve their production, harvest and post-harvest operations.

 LIVCD grapes VC followed on the achievement and subtitling of the grapes video tutorial on Grapes canopy and crop management. The grapes guide is already printed and distributed to the Lebanese grapes farmers.

 Grapes Impact Assessment completed and approved by USAID

Key Activities

 Grapes Expert Alvaro Azincot visit to Lebanon

On June 21, 2018, LIVCD organized in collaboration with the Chamber of Commerce, Industry, and Agriculture of Zahle and the Bekaa (CCIAZ) and private company Medigardens a workshop with grapes expert Alvaro Azincot on table grapes production, harvesting and post-harvest practices at the CCIAZ, in Zahle, in the Bekaa.

The event gathered more than 110 participants from the grapes sector, small and medium farmers, large-scale grapes growers, grapes exporters, agricultural engineers involved in the grapes sector and representatives from the Ministry of Agriculture and universities. International expert Alvaro Azincot highlighted the main practices and the protocol for each variety; the different procedures for grapes production starting from winter pruning, canopy and cluster management, fertilization, irrigation, plant growth regulators usage to end up with the harvest and post-harvest practices. The LIVCD grapes team also scheduled grapes field visits for Alvaro Azincot with partners Medigardens, Natagri, Daher Company, Skaff Estate and other grapes beneficiaries.

Workshop on grapes with international expert Alvaro Azincot

Alvaro Azincot field session

 Jaber Trading Company Grant G-LIVCD-240 During the quarter, LIVCD completed all activities under this grant. To fulfill the grant activities, Jaber trading company organized on April 12, the opening of the cold chain and provided a training session on grapes harvesting and post-harvest activities followed by a demonstration on the use of the pre-cooling unit. The training gathered 20 farmers from Majdaloun and surrounding villages

Demonstration on the pre-cooling unit system to the farmers linked to Jaber Trading Company  CCIAZ Grant Implementation

LIVCD team worked, in collaboration with the CCIAZ technical team, on the implementation of the grant titled: “Upgrading drip irrigation system in the new and existing grapes orchards”. To date, 54 beneficiaries presented the requested documents and fulfilled the criteria for farmer’s selection. The CCIAZ team conducted already 53 field visits and reported on the plot

characteristics and on the existing irrigation system. Both CCIAZ and LIVCD technical teams are screening the installation of the upgraded systems and the visibility signs. 42 beneficiaries upgraded their drip systems to date covering 520 dunums in 17 regions for grapes production; USAID cost share reached to date $66,000 and farmers cost share $68,000

 LIVCD grapes project, under Libansol RFA

LIVCD grapes team in collaboration with LIVCD Grant team collected the requested documents and subcontracts related to 27 potential farmers proposed by Libansol. To date 14 farmers have applied officially and paid their cost share; Libansol delivered the sulfur dusting machines and intend to deliver the shredders and the ESS sprayers as soon as received from Italy during July and August 2018.

Electric Electrostatic Sulfur Delivery Date Real Farmer Namer Region Pruning Shredder crop produced Sprayer Duster and Estimated # Shears

1 Layla Fouad Chdid Zahle 1 Grapes August-18 2 Amal Rida Hemdanieh Majdaloun 1 1 Grapes July-18 3 Elie Joseph Faraj Qaa 1 Grapes August-18

4 Imad Adel Younes Qaa 1 Grapes August-18 5 Elias Ibrahim Estephan Majdaloun 1 Grapes August-18 6 Abbas Melhem Al Lakis Qaa 1 Grapes July-18

7 Mehye Din Ayoub Azoun Kab Elias 1 Apple August-18 8 Gabriel Hagop Havatian Anjar 1 Pears August-18 9 Wassim Mehye Din Azoun Kab Elias 1 Apple July-18

10 Dany Elias Ayoub Kfarmeshke 1 Grapes July-18 11 Elias Michael El Fakhri Niha 1 1 Grapes July-18 12 Georges Rached Qaa 1 Grapes and Pears August-18

13 Wael Nabil Jamall Mheydtheh 1 Grapes and Pears August-18 14 Fersan Hatoum Terbol 1 Grapes and Pears July-18 8 3 1 4

 LIVCD grapes project, under Debbane RFA

During the quarter 3, LIVCD grapes team activities under Debbane RFA was limited to the organization of the training conducted to introduce and spread the new technology adopted by the grapes framer Issam El Haber in Mansouriet Bhamdoun.

 Grapes VC Demo Plots Visits LIVCD Grapes made follow up visits to the grapes demo plots established in the main regions for grapes production. LIVCD technical team ensures application of the appropriate cultural practices in the grapes demo plots established during 2014 and 2015 under the grapes Grants with exporters; Medigardens, Jaber Trading Company and Middle East Business Company. LIVCD grapes technical team made during the quarter 3 more than 20 field visits.

Field visit

Grapes VC - Demo Plots Visits - Q3Y6 Number of Date Region Demo plots 1 4 Avril 2018 Majdaloun 6

2 17-May-18 Majdaloun 6

3 1-Jun-18 Kfermechki 7

4 14-Jun-18 Ferzol 3

Total 22

 Grapes VC Grants Follow up

LIVCD Grapes team made 23 site visits to complete the farmers’ profiles and the orchards characteristics, under Libansol grant.

Grapes VC - Farmers orchards /Field assessment under G-LIVCD-247 - Q3Y6 # Date Region Number of Demo plots 1 04-Apr-18 Zahle and Majdaloun 3

2 05-Apr-18 Qaa 2

3 12-Apr-18 Wazzani 1

4 18-Apr-18 Niha Bednayel and Qaa 4

5 20-Apr-18 Anjar and Kab Elias 4

6 24-Apr-18 Kaa El Rim and Wadi El Arayech 4

7 27-Apr-18 Kfermechki and Mheydtheh 2

8 23-May-18 Qaa 1

9 01-Jun-18 Mheydtheh 1

10 14-Jun-18 Terbol 1 Total 23

In addition, the grapes team followed closely the implementation of the grapes grant with CCIAZ on upgrading the irrigation drip design in the grapes orchards.

Grapes VC - Upgraded Irrigation Systems Visits - Q3Y6 Number of # Date Region Demo plots 1 04-May-18 Ferzol 6 2 16-May-18 Haouch Hala 4 3 30-May-18 Zahle and Maalaka 4 4 12-Jun-18 Ferzol Zahle 6 5 26-Jun-18 Ferzol Haouch Hala 6 6 30-Jun-18 Ferzol 8 34 Total

The LIVCD team completed 34 monitoring visits to the farmers plots in the Bekaa region in order to check the delivery installation of the upgraded drip system under the grapes CCIAZ grant part II and consequently to screen the installation of the USAID visibility signs.

 Grapes VC team organized and completed 10 trainings on Grapes production practices

 On April 12, 2018, Jaber trading company organized and conducted a training on the new post-harvest technologies at Jaber estate in Majdaloun. The participants were farmers from Majdaloun and the surrounding villages; the agricultural engineer from JTC exposed the

main practices adopted during harvesting and post harvesting grapes. The training was followed by a practical demonstration on startup and use of the pre-cooling unit.

 On May 24, 2018, LIVCD grapes team held a training on Grapes canopy and crop management in Terbol; 33 farmers attended the training followed by a field session.

Training on Grapes canopy and crop management in Terbol

 On 31 of May 2018, Grapes STTA provided a training on Grapes nutrient Management to the grapes farmers in Terbol; 15 farmers attended the training at the municipality of Terbol.

Training on Grapes nutrient Management

 On June 4, 2018, LIVCD grapes team organized a training in collaboration with Debbane Agri in Mansouriet Bhamdoun. The training was about to introduce of the new fertigation system thru the water tank and the drip system installed at Issam El Haber plot. About 10 farmers from the surrounding area assisted to the training and the demonstration provided by Engineers from Debbane Agri.

Fertigation system training

 On June 16, 2018, LIVCD grapes team organized a training on Grapes nutrient management to the Ferzol farmers held at the municipality. More than 34 farmers from Ferzol attended the training. A scientific discussion was conducted upon their demand.

Next quarter LIVCD grapes team will focus on achieving the implementation of the ongoing grapes grants:  The implementation of the grapes Grant on upgrading drip systems in existing grapes orchard in collaboration with CCIAZ.  The implementation of the grapes Grant titled “Introduction of New and or Improved Technologies to Increase Farming Efficiency, Quality and Incomes” under Libansol sarl grant. LIVCD grapes project will achieve the grapes study tour for the 12 delegates, future grapes specialists whom will transfer the knowledge acquired during the study tour in CA to the Lebanese grapes growers. LIVCD grapes team will focus on achieving the grapes survey in Ferzol, Niha and Kfermechki regions for grapes production in order to have new statistics about the grapes surfaces, varieties new distribution, and number of farmers in the key regions for grapes production in the Bekaa. LIVCD team will organize a workshop and will expose the main activities and the key learnings acquired during the grapes study tour and will highlight on the strategic plan to be adopted by the group to serve the Lebanese grapes growers.

Challenges and mitigation of these challenges The efforts will be oriented to follow the implementation completion of the grapes grants and the grapes activities in order to achieve the project and collect results; thus to fulfill the indicators of the grapes VC grants and other grapes activities.

CROSS CUTTING ACTIVITIES MARKETING (MARKETING INTELLEGENCE AND PROMOTION)

Overview This quarter, LIVCD continued to provide support to several partners in their marketing activities in local and export markets, to boost sales, as follows: 1. Marketing campaigns to increase sales, assistance to increasing exports 2. Upgrading packaging and marketing tools 3. Assistance to increase exports 4. Exhibitions and fairs to increase linkages 5. Improved media outreach and exposure

Summary of top results  Implemented a large scale visibility campaign in partnership with Hospitality Services promoting rural tourism in Lebanon and the LebanonTraveler.com website  Continued providing assistance to 18 rural tourism organizations through a grant entitled ‘Increase stakeholders’ access to rural tourism market’ with a $298,639 budget (LIVCD cost-share: $148,964) to develop several marketing and visibility tools  Supported 55 rural tourism organizations participate in the 5th edition of the Travel Lebanon exhibition at the Garden Show from May 30th to June 2rd 2018  Jezzine launched as a rural tourism destination  Provided technical support for upgrading packaging and branding and developing visibility tools and promotional material of several companies including Tannourine Rock Climbing, Ehmej Association, Hosco Agri, and Adonis Valley  Provided marketing support for a grant with private company “Shapash s.a.r.l.” for “Increasing Competitiveness of Pome Fruit Value Chain in Bcharre Caza”. The marketing cost share within this grant is around $40,000

Key Activities

Rural Tourism Value Chain

In spring 2018, LIVCD implemented a large scale marketing campaign aiming at raising public awareness on rural tourism in Lebanon, and facilitating access of rural partners and services to a large audience. The 360 campaign included:  a billboard campaign reaching to a large Lebanese audience  sponsoring the Travel Lebanon exhibition which welcomed 25,000 visitors and generated media exposure  supporting 18 organizations to develop promotional marketing tools as part of a grant, including 11 videos, print material, signages and events  a rural tourism promotional video used on social media  an online campaign aiming at boosting the LebanonTraveler.com website to become the reference platform for rural tourism in Lebanon

Public billboard campaign promoting rural tourism

The LIVCD Project in collaboration with Hospitality Services (HS) launched a billboard campaign disseminated on 200 panels 4x3meters from Thurday May 24 to May 31, targeting a large urban audience. In particular, the network focused on Greater Beirut and Mount Lebanon areas and the major roads leading to the mountains and the Northern and Southern coast. An additional 45 strategically located digital screens were rented around Beirut, from May 29 until June 3rd targeting a large urban audience in Greater Beirut.The visual promotes rural tourism in Lebanon and the www.LebanonTraveler.com website, a leading online platform that publishes articles, editorials, and practical information on tourism destinations and services across Lebanon. Digital screen at the Forum de Beirut The message also invited the public to attend the 5th edition of the Travel Lebanon exhibition held from May 30 to June 2 at the Beirut Hippodrome, organized by HS concurrently with the Garden Show.

LIVCD sponsoring the 5th edition of the Travel Lebanon at the Garden Show For the fifth consecutive year, the USAID-funded LIVCD project sponsored the Travel Lebanon exhibition which showcases lesser known destinations and cultural heritage areas through the participation of 55 rural tourism partners presenting their rural tourism products and services. The exhibition took place during the Garden Show annual event held at the Beirut Hippodrome, which gathers more than 25,000 visitors including tourism and hospitality professionals. This year, the LIVCD stand gathered 18 organizations which displayed various marketing tools, including 7 promotional videos on 4 screens at the LIVCD booth, and several visuals, brochures and flyers, developed through a grant aiming at increasing their visibility, entitled ‘Supporting Hospitality Services to increase the access of rural tourism MSME’s to rural tourism market opportunities’. The official ceremony took place on Thursday May 31 in the presence of Mr. Avedis Guidanian, Minister of Tourism and USAID Mission Director Dr. Anne Patterson, and several members of Parliament and Head of Municipalities. In her remarks following the ribbon cutting, Dr. Patterson emphasized continuous U.S. Government support for Lebanon’s economic growth, and the importance of increasing employment and income generation through key sectors such as tourism. Mr. Guidanian highlighted that Travel Lebanon was a wonderful opportunity to launch Lebanon’s tourism season. During her remark, Joumana Salame, Managing Director of Hospitality Services thanked USAID and presented the USAID Mission Director a trophy of appreciation for USAID continuous support to rural tourism in the past years.

Travel Lebanon opening

Several promotional tools are developed to promote rural tourism in Lebanon  Rural tourism video A three minute video entitled ‘Exploring the best of rural Lebanon’ promoting Lebanon’s assets in terms of rural tourism was launched at the Travel Lebanon event and on the LIVCD Facebook page. It features several organizations such as the Shouf Biosphere Reserve, the Lebanon Mountain Trails, and Jabal Moussa, and presents the large array of services and activities that Lebanon can offer in terms of outdoor activities, guesthouses, restaurants and culinary experiences, and cultural landmarks to visit.

Screenshot from the Rural Tourism video

 A series of promotional videos generate massive engagement on the LIVCD Facebook page

LIVCD has developed and launched a series of rural tourism promotional videos on the LIVCD Facebook page which received great engagement from the online community. The videos promote rural tourism destinations across the country, emphasizing the natural and cultural beauty of Lebanon in short attractive formats with USAID branding. The videos, which cater to a large audience of Lebanese and foreign and attracted thousands of viewers, received nearly 27,000 views none sponsored, 4,000 comments, likes, or shares, also allowing the LIVCD page to attract new followers. To name a few, ‘Discover Ras el Matn’, Enjoy a complete traditional experience at Ecolodge Taanayel’, were very popular and attracted considerable generic reactions. They are part of 11 promotional videos developed through the grant entitled ‘Supporting Hospitality Services to increase the access of rural tourism MSME’s to rural tourism market opportunities’. LIVCD Facebook page

 Marketing material to 18 small rural tourism organizations including brochures, leaflets, on site signages, and events:  Editing texts, designing and printing of banners, posters and brochures, maps, booklets, and leaflets for 7 organizations: Food Heritage Foundation, Ehden Forest Nature Reserve, Auberge Beity Association, Hermitage Trail of Tannourine, Rural Tourism Destination Wada, Exploring the Adonis Valley, Ras el Metn  Developing on site signage and informational panels for 4 organizations  Supporting launching event and tour operators familiarization tour for 3 organizations

Marketing materials

 LIVCD supported the website lebanonTraveler.com through an online campaign aiming to reinforce the Lebanon Traveler website LebanonTraveler.com as a reference platform for rural tourism in Lebanon. The campaign includes developing posts in particular audiovisual material for the Facebook and Instagram accounts, linking with international websites to reach to diaspora and foreign tourists, and posting editorials focusing on the 18 organizations supported through the grant with HS. The campaign started in May and will be ongoing until end of July. Lebanon Traveler includes a website, a mobile application, the online and print and features over 3,000 several tourism outlets which will benefit from this exposure.

Lebanon Traveler website

Upgrading packaging and marketing tools

LIVCD is working with the following partners to improve or develop their branding and /or marketing and visibility tools: Shapash SARL, Tannourine Rock Climbing, Ehmej Association, Hosco Agri, and Adonis Valley, CCIAZ Laboratory.

LIVCD supports tourism and apple production in Ehmej

As part of a grant, LIVCD is supporting the Ehmej Association for Development developing a new branding for the Ehmej apples entitled ‘Mawssamna’ including a new logo, tagline, packaging, main visual, and a social media campaign to take place in the coming months. On the other hand, a marketing consultant was hired as part of the grant to develop a marketing strategy for the Ehmej region, and tourism packages and brochures focusing on target audiences such as families and schools. In addition, the consultant is developing editorial material to reach out to potential visitors in Lebanon and abroad through online and print magazines and portals, and bloggers.

Climb Tannourine develops marketing tools

LIVCD is providing technical assistance to Climb Tannourine, which promotes rock climbing in the Tannourine region to develop marketing tools including a logo, poster, brochure, promotional short video, and posts for social media. The organization attended the Travel Lebanon exhibition at the Garden Show with its new logo and poster, and will be completing the work on the remaining material in the coming months with support from LIVCD.

Adonis Valley

LIVCD partner Adonis Valley, which produces and commercializes Tannourine marketing tool organic prepared food, revealed its new identity and new packaging developed through LIVCD marketing support in spring. The brand, which is sold in the market since 2007, launched its revamped packaging for all its products range in the market, with a more modern image to attract new customers. The new packaging and labels were updated with all the legal requirements for local and exports markets, in particular nutrition facts, developed with LIVCD assistance. In addition, Adonis Valley started the spring season with a new eatery and ecotourism project in Fatre, Mount Lebanon, with a new identity including signage and on site visibility developed through LIVCD assistance.

Adonis Valley new labels

Assistance to increasing sales and exports Apple Value Chain

 LIVCD and private company “Shapash s.a.r.l.” initiated a grant aimed at “Increasing Competitiveness of Pome Fruit Value Chain in Bcharre Caza”. Through the grant, new technology equipment is provided, along with marketing support to increase the company’s access to new market channels both in domestic and export. This quarter, Shapash worked with a design agency to create an appealing brand identity, a brochure aimed at presenting the brand to distributors and consumers, and a website. LIVCD provided marketing support as the promotional material was developed. In the coming months, Shapash with support from LIVCD will launch the brand in the market place and will promote it through several tools such as high visibility online and on social media and attending major international exhibitions and fairs.

Preliminary design on the new apple brand with the Shapash SARL

Next Quarter

 LIVCD will continue the campaign supporting LebanonTraveler.com to become the reference in rural tourism in Lebanon. In addition, the 18 rural tourism organizations will continue revealing the tools created as part of the grant entitled ‘Increase stakeholders’ access to rural tourism market’ and using them during their summer activities and events

 LIVCD will continue providing technical assistance to upgrade the visual identity and marketing tools of several companies related to different value chains: Shapash SARL, Tannourine Rock Climbing, Ehmej Association, and Adonis Valley

Challenges and Mitigation

The war in Syria continues to restrict the export routes of sea and air freight, resulting in increased cost, negatively affecting Lebanese products competitiveness. To alleviate this effect, LIVCD is focusing on exporting high quality products to high value, niche, and targeted markets. The companies’ will to export to the Gulf region is important, as it is a stable region with a large potential due to its significant consumer base. Several companies are focusing their future marketing and sales investments in export markets, in particular the Gulf countries.

LIVCD is thus supporting several partners in upgrading their packaging and outreach tools in order to succeed in both local and regional export markets. However the competition is fierce in these markets and partners require professional marketing efforts to succeed. LIVCD is supporting partners to increase their presence in these high potential markets through improved market linkages and a more professional approach to maintain and expand them.

On the other hand, in the tourism sector, LIVCD is focusing on domestic tourism and encouraging visits to rural organizations in various areas through supporting developing attractive marketing tools.

WATER & ENVIRONNEMENT

Good Agricultural Practices related to weather challenges

Solar Energy System at Mechaalany During the previous quarter, LIVCD co-invested with Societe Libanaise de Boissons (Mechaalany) to install a solar energy system to supply the company’s production line for electricity. The photovoltaic system generates 120 KVA which will reduce the conventional electricity consumption. The aim of the system was to support the company to maintain uninterrupted production, reduce overall operating cost and reduce energy consumption. To date, Mechaalany has saved $4,221 in reduced electricity costs and 13.98 tons of CO2 emissions. Solar energy system at Mechaalany

Ultrapure Water system at FQC-CCIAZ Under LIVCD grant agreement with the Chamber of Commerce, Industry, and Agriculture Zahle (CCIAZ), an ultrapure water system was installed at the laboratory. The installed system purifies water from contaminants such as particulates, dissolved organics, dissolved inorganics, microorganisms and pyrogens. The purified water is necessity for applications such as HPLC, gas chromatography, cell culturing, media preparation, glassware rinsing, and many laboratory applications. The installed system aims to avoid sullied samples, ruined results, and waste of water.

Ultrapure Water system at CCIAZ Laboratory

ANNEX 1: INDICATORS PERFORMANCE TRACKING TABLE

Year VI - (Oct 2017 to Sep 2018)

Reporting Baseline Baseline LOP Targets - End of

No. RF reference Indicator Title - Disaggregation Unit of measurement frequency Year6 Value Y6 Target Y6 Q1 Q2 Q3 Q4 Actual Y6 Results Achieved Jan 2019 USAID/Lebanon Development Objective 2: Enhance Economic opportunity for the poorest segments of Lebanese society, particularly in areas outside Beirut

CDCS DO2: Inclusive Economic Growth Inhanced

LIVCD Goal: Develop functionning, competitive value chains to increase incomes of the rural population including MSMEs Number of MSMEs, including farmers, and other MSMES, including 1 IR 2.1.b: organizations receiving business development farmers/producers Quarterly 2012 0 2635 903 592 966 2,461 18,458 17,835 services from USG assisted sources Size Micro (1-10) 1976 903 591 960 2,454 Size Small (11-50) 395 0 0 5 5 Size Medium (51-100) 264 0 1 1 2 4 Number of Jobs Impacted by LIVCD Implementation Jobs - FTEs Quarterly 2012 0 1695 146 465 594 1,205 8,687 9,195.00 Proportion of female participants in USG-assisted programs designed to increase access to productive 5 DO 2c: Women proportion Quarterly 2012 0 12.5% 24% 16% 24% 22% 21% 23.15% economic resources (assets, credit, income or employment)

Number of male and female MSMEs 2635 903 592 966 2,461 18,458 17,835 Denominator Number of male and female IFs - 286 167 350 803 4,190 - Numerator Number of females 329 291 123 318 732 4,690 4,129 CDCS IR2.1: Increased Private Sector Competitiveness LIVCD Objective 1: Increased Competitiveness of Lebanese Value Chains IR 2.1.a: Number of beneficiaries who have applied improved 6 technologies or management practices as a result of Farmers/MSMEs Quarterly 2012 0 2460 239 268 760 0 1,267 12,030 12,960 USG assistance Number of farmers and others who have applied improved technologies or management practices as Farmers & others 2012 0 2300 207 265 759 1,231 11,628 12,300 a result of USG assistance Producers 2185 206 242 736 1,184 11,352 Sex 2185 206 242 736 1,184 9,882 Technology type 2185 206 242 736 1,184 9,904 Other 115 1 23 23 47 276 Sex 115 1 23 23 47 276 Technology type 115 1 23 23 47 276 Number of private enterprises, producers Private enterprises organizations, water users associations, women’s Producers groups, trade and business associations and organizations community-based organizations (CBOs) that applied Water users improved technologies or management practices as associations 2012 0 160 32 3 1 36 402 660 a result of USG assistance Women's groups Trade & business association CBOs Type of Private enterprises 136 32 3 0 35 244 Producers organization 8 0 0 0 - 85 Water users associations 0 0 0 0 - - Women's groups 8 0 0 0 - - Trade & Business association 0 0 0 0 - 1 CBOs 8 0 0 1 1 72 Number of individuals who have received USG- 8 Individuals Quarterly 2012 0 2670 934 659 1051 2,644 15,284 16,420 supported short-term training. Type of Producers 2403 665 513 669 1,847 People in governement 53 16 16 3 35 People in private sector firms 80 18 42 84 144 People in civil society 133 235 88 295 618 CDCDS Sub-IR2.1.2: Increased Business and Trade Linkages LIVCD IR1: Increased Access to Markets LIVCD IR2: Increased Business Linkages Number of MSMEs, including farmers, and other Sub-IR organizations, benefiting from new horizontal & MSMES, including 10 Quarterly 2012 0 1745 206 102 460 768 5,168 5,745 2.1.2.a vertical linkages farmers/producers

Size Micro (1-10) 1309 206 102 460 768 4341 Size Small (11-50) 262 0 0 0 - 48 Size Medium (51-100) 175 0 0 0 - 11 LIVCD IR3: Increased Productivities CDCS IR2.2: Increased access to finance, especially for new business start-ups and woman LIVCD Objective 2: Increased Access to Value Chain Finance Number of enterprise/farmers that successfully MSMEs, including 12 IR 2.2a: accessed loans, private equity, or both as a result of Quarterly 2012 0 37 0 1 0 1 102 102 farmers USAID assistance CDCS Sub-IR2.2.2: Increased early stage investment financing for new and existing firms LIVCD IR4: Constraints to Lending and Investment Reduced Sub-IR 2.2.2a Total value of loans issued as a result of 13 Sub-IR 2.2.2.a Value of loans Quarterly 2012 0 $ 3,370,000.00 $ - $ 650,000 $ - $ 650,000.00 $ 18,784,535.01 $ 19,870,000.00 USG assistance

Number of public-private partnerships formed as a Public-private 14 Quarterly 2012 0 5 6 9 3 18 207 205 result of FtF assistance partnerships

Partnership Agricultral production 2 1 4 0 5 Focus Agricultral post-harvest transformation 2 3 2 1 6 Nutrition 0 0 0 0 - Other 0 0 2 1 3 Multi-focus 1 2 1 1 4 Number of MSMEs, including farmers, reached by USG MSMEs, including 15 Quarterly 2012 0 87 3 5 1 9 1,254 1,337 to apply for value chain finance farmers Size Micro (1-10) 65 3 4 1 8 Small (11-50) 13 0 0 0 - Medium (51-100) 9 0 1 0 1 80

ANNEX II: LIVCD GRANTS TO DATE

Year 6 Q3 grants

Grant Value Start End Award Grantee Total Grant # Grant Title Grantee Status Chain Date Date Amount Contribution USD Budget G-LIVCD- Cedarstec Active 5/2/20 9/2/20 $123,710.0 $310,967 254 Promoting the Use of Modern Technology in Cold Storage to Increase Apples Competitiveness. S.A.R.L Grant Pome Fruit 18 18 0 $187,257.00 .00 G-LIVCD- Active Processed 6/19/2 8/19/2 $36,697. 255 Supporting Increased Production Capacity to Expand Sales at women led enterprise - Lebanese Mezze Lebanese mezze Grant Food 018 018 $16,000.00 $20,697.00 00 G-LIVCD- Utilizing second grade grapes used for grape syrups to introducing new product lines (including Healthy snacks and cereal ROYAL Active Processed 6/18/2 9/7/20 $124,830 256 bars) at Royal organics- Rashaya- Bekaa ORGANICS s.a.l Grant Food 018 18 $60,021.00 $64,809.00 .00

Total Number of Grants 3

ANNEX III: LIVCD QUARTERLY FINANCIAL INFORMATION

Quarterly Cumulative Remaining Percent of Budget Expeditures Cost Element Amount (June Budget Budget Amount (April-June 30, 2018) Amount Expended 2018) Salary and Wages (incl. consultants) 7,674,050 340,497 6,867,081 806,970 89% Fringe Benefits 989,154 25,822 901,644 87,510 91% Overhead 3,928,237 155,510 3,521,588 406,649 90% Travel, Trans and Per Diem 579,150 2,668 452,329 126,820 78% Allowances 1,035,411 39,814 951,749 83,662 92% Other Direct Costs (incl. Procurement) 12,798,582 566,177 11,697,051 1,101,531 91% KDS 1,337,057 - 1,327,373 9,684 99% Making Cents 287,446 - 287,446 - 100% Local Subcontracts 1,384,671 - 1,381,724 2,947 100% Subcontractors 3,009,173 - 2,996,543 12,631 100% Subtotal program costs 30,013,757 1,144,536 27,387,985 2,625,772 91% G&A 3,521,407 171,985 3,226,944 294,463 92% Total Estimated Cost 33,535,164 1,289,091 30,614,929 2,920,235 91% Fixed Fee 2,447,108 87,198 2,252,151 194,956 92% Total Grants Under Contract 10,200,000 318,631 8,452,738 1,747,262 83% Total Cost Plus Fixed Fee 46,182,272 1,694,920 41,319,818 4,862,453 89% *Please note that June 2018 invoice numbers are still being finalized.

ANNEX IV: NUMBER OF PUBLIC PRIVATE PARTNERSHIPS