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

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Usaid/Lebanon Lebanon Industry Value Chain Development (Livcd) Project USAID/LEBANON 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 2 ACRONYMS AUB American University of Beirut CCIAZ Chamber of Commerce Industry and Agriculture in Zahle CDCS Country Development Cooperation Strategy ESIAM Ecole Supérieure d’Ingénieurs d’agronomie Méditerranéenne EDA Ehmej Development Association EOI Expression of Interest ESS Electro Static Spraying (ESS) FCCIAL Federation of Chambers of Commerce, Industry and Agriculture in Lebanon FDA U.S. Food and Drug Administration GMP Good Manufacturing Practices GNFF Georges N Frem Foundation HF Hariri Foundation IDAL Investment Development Authority of Lebanon IPTT Indicator Performance Tracking Table LARI Lebanese Agriculture Research Institute LIBNOR Lebanese Standards Institution LIVCD Lebanon Industry Value Chain Development LMT Lebanon Mountain Trail MSME Micro, Small and Medium Enterprise NDU Notre Dame University NGO Non-Governmental Organization OEA Order of Engineers and Architects PPP Public-Private Partnership PSC Production Service Center RAD Rock Climbing Association for Development RMF Rene Moawad Foundation 3 RTE Ready to Eat SAL Société Anonyme Libanaise (Joint Stock Company) SARL Société a Responsabilité Limitée SBR Shouf Biosphere Reserve SCSA Sannine Cooperative for Sustainable Agriculture SLFI Syndicate of Lebanese Food Industrialists SKU Stock Keeping Units SOQO Seal of Quality and Origin (for olive oil) USAID United States Agency for International Development USJ Saint-Joseph University PIRS Performance Indicators Reference Sheets PRODES Promotion et Développement Social 4 YEAR 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
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