USAID/LEBANON LEBANON INDUSTRY VALUE CHAIN DEVELOPMENT (LIVCD) PROJECT LIVCD ANNUAL PERFORMANCE REPORT YEAR 4: OCTOBER 2015 - SEPTEMBER 30, 2016 Program Title: USAID/ LEBANON INDUSTRY VALUE CHAIN DEVELOPMENT (LIVCD) PROJECT Sponsoring USAID Office: USAID/Lebanon- Office of Economic Growth Contract Number: AID-268-C-12-00001 Contractor: DAI Date of Publication: July 2013 Author: DAI OCTOBER 2016 This publication was produced for review by the United States Agency for International Development. It was prepared by DAI. Contents INTRODUCTION ................................................................................................................ VI EXECUTIVE SUMMARY .................................................................................................. VIII LIVCD YEAR 4 RESULTS (RESULTS FRAMEWORK & PERFORMANCE INDICATORS) X COMPONENT 1 – VALUE CHAIN ASSESSMENT ............................................................ 28 COMPONENT 2 - VALUE CHAIN UPGRADING ................................................................ 29 Pome Fruit (Apples and Pears) .................................................................................. 29 Stone Fruit - Avocado ................................................................................................. 48 Stone Fruit - Cherry ..................................................................................................... 56 Grapes .......................................................................................................................... 66 Olive Oil ....................................................................................................................... 76 Rural Basket .............................................................................................................. 101 Rural Basket-Honey .................................................................................................. 108 Processed Foods ...................................................................................................... 131 Rural Tourism ............................................................................................................ 151 COMPONENT 3 – ACCESS TO FINANCE ...................................................................... 158 CROSS-CUTTING ELEMENTS ........................................................................................ 160 Market Intelligence & Marketing ............................................................................... 160 Institutional Capacity Building ................................................................................. 168 Gender Considerations ............................................................................................. 170 Water and Environment ............................................................................................ 172 ANNEX I: INDICATOR PERFORMANCE TRACKING TABLE ........................................ 176 ANNEX II: LIVCD YEAR 4 GRANTS ................................................................................ 183 III 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 IV 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 V INTRODUCTION YEAR 4 OVERVIEW The LIVCD Project aims to increase the competitiveness of selected value chains. It will expand the number of Micro and Small and Medium Enterprises (MSMEs) that can compete in selected markets; improve linkages between those firms and other actors throughout the value chain; increase the gross value of products and services in local and export markets, and expand exports. The net effect of these activities will contribute to improved economic stability and food security for Lebanon, especially in rural areas, and decrease migration from rural to urban areas. Building on recent support to the rural sector through agricultural and other related economic development projects, LIVCD partners with local private sector companies to work in seven selected value chains that have the potential to compete in regional and international markets. It is expected that by the end of the project in September 2017, as a result of project interventions, the following results will be achieved: A minimum of seven fully functioning, competitive value chains. · An increase of at least 700 businesses or micro-enterprises benefiting from horizontal and vertical linkages. · At least 12,000 small and medium commercial growers benefiting from the dissemination of improved production and post-harvest technologies. · At least 30 new export markets, niche markets, or distribution channels for selected value chain products. An annual increase of at least 10 percent in the volume and value of exported agricultural products of selected value chains for each value chain. If, for some value chains actual and potential export is limited, displacing imports with domestic production may be considered. OVERVIEW OF ANNUAL PERFORMANCE REPORT This forth annual report provides a summary of progress of the major LIVCD program activities highlights key achievements and identifies problems encountered and remedial actions proposed. This annual report highlights activity of Year 4 (October 1 st , 2015, to September 30 th , 2016). Section One presents the LIVCD Results Framework and overall approach to upgrading the value chains. The LIVCD Performance Indicators are presented with the targets and project-wide results to date. Section Two describes the value chain assessment phase leading to the selection of eight value chains for project intervention (Component 1). Section Three presents a summary of the LIVCD value chain upgrading activities undertaken to increase competitiveness of the selected value chains (Component 2) including assistance in accessing VI value chain finance (Component 3 ) and cross-cutting elements (Component 4). This section is organized as follows: · Summary of the seven Value Chain Upgrading Strategies, key activities conducted in Years 4 in each value chain, and key achievements and results to date. This section also describes any problems encountered and remedial actions undertaken or proposed. · Summary of LIVCD activities to provide assistance in accessing value chain finance for producers and other value chain actors in the rural economy. · Summary of LIVCD activities under cross-cutting components, Marketing, Institutional Capcity, and Water and Environment. Section Three summarizes the necessary financial information of the project. VII EXECUTIVE SUMMARY Despite significant management and personnel changes in year 4 and an extensive Mid Term Evaluation of the project, LIVCD saw the majority of project indicators either exceeded or on target to be achieved by the life of project in September 2017. In addition a record number of 76 new grants valued at , including the co-investment share from grantee partnerships, were initiated during the year. No. of Grants 76 80 57 60 37 40 20 5 0 Year 1 Year 2 Year 3 Year 4 Number of grants initiated in years 1 to 4 Leveraged investments by the private sector and stakeholders including farmers, as measured by the indicators aligned with the new Country Development Cooperation Strategy (CDCS), also peaked during this year to (Subject to revised indicators in revised M&E plan receiving USAID approval). In year 4, changes in LIVCD management resulted in both a new COP and DCOP being in place by April. By the end of the third quarter of Year 4 both were well established in their respective roles and all LIVCD contractual deliverables have been submitted on time. During year 4 the LIVCD Mid Term Evaluation (MTE) was completed by Social Impact with a final MTE report submitted to USAID toward the end of year 4. Some preliminary feedback and sections of the report were received from USAID, which was used to inform the year 5 work plan submitted at the end of August. The year 5 work plan contained an annex detailing the rationale for a no-cost extension of up to six months beyond the current life of project period, which ends on September 29, 2017. During the final quarter of year 4 the LIVCD M&E team collaborated closely with Social Impact to review and revise