Project Livcd Annual Performance Report Year 4: October 2015 - September 30, 2016

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

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

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

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 the existing LIVCD M&E plan to ensure that it is aligned with the new CDCS for Lebanon. The Social Impact team also reviewed the methodology applied to the collection of additional

VIII data for two key project indicators - leveraged investment and value of exports. As of the end of year 4 LIVCD was awaiting final feedback from Social Impact on detail submitted. Feedback was received in early October and the revised final M&E plan was submitted to USAID for approval just prior to submission of the year 4 annual report. Additionally during year 4 the M&E team successfully created GIS maps that were presented to USAID for review. A sample map based on USAID’s requested modifications was created for the avocado value chain and sent to USAID for final feedback. During the year USAID emphasized the importance of increased outreach and visibility for all USAID funded projects in Lebanon. LIVCD submitted an outreach and communications plan as an annex in the project’s year 5 work plan. In addition, LIVCD improved its personnel capacity to address shortcomings and meet expectations of additional project outreach. Year 4 saw a total of 76 new grants/co-investment projects initiated for implementation with LIVCD’s contribution valued at in addition to grantees contribution of as of the end of year. From project inception to end of year 4, a total of 175 grants have now been awarded by LIVCD. The grant to the Chamber of Commerce Industry and Agriculture of Zahle and Bekaa (CCIAZ) for upgrading their food quality analytical lab, approved during year 4 with a value of was the highest value grant approved by LIVCD to date. All of the LIVCD value chains continued to be supported by the grants program with a wide range of activities from production to processing to end market facilitation. In addition to grant support, each value chain received ongoing tailored technical support during year 4 from the LIVCD technical team, local and expat STTA. The majority of LIVCD indicators were achieved or exceeded in year 4 or are on target to be achieved by the end of project in September 2017. Some selected indicator highlights were as follows; · 3040 jobs impacted · USD of new private sector investment leveraged · 3,636 farmers and others applying improved technologies or management practices as a result of LIVCD assistance · 21 % of female participants in USG assisted programs · value of exports of target agricultural commodities · Avocado gross margin per hectare 116 % above target · Cherry gross margin per hectare 30 % above target · 392 MSMEs including farmers assisted to apply for value chain finance Specific results pertaining to each value chain can be found in the M&E section below, followed by detailed results on the activities in the respective value chain and cross cutting sections.

LIVCD YEAR 4 RESULTS (RESULTS FRAMEWORK & PERFORMANCE INDICATORS)

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; these are also noted in Figure 1 under the associated result. LIVCD Objective: Develop competitive, functional value chains to increase incomes of the rural population including MSMEs

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

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

The overall strategy for the LIVCD activity is laid out in the LIVCD Results Framework. The overall objective (or purpose) of the LIVCD upgrading strategies is to facilitate assistance that develops fully functional, competitive value chains to increase incomes of the rural population including MSMEs. LIVCD assistance (grants and technical assistance including training) is expected to achieve this objective by helping beneficiaries in the target value chains become more competitive by leveraging investments and reducing constraints to lending, enabling increased productivity, facilitating new linkages between producers and buyers/input suppliers, and helping beneficiaries to access to new markets or increase sales to existing markets. During Year 4, the M&E team worked closely with LIVCD technical and field team to ensure all data is collected from the field, and to report on the project’s quarterly indicators.

Based on the results achieved, LIVCD has exceeded the annual results set for reported indicators. The chart below illustrates the performance indicators with the achieved results against targets.

LIVCD Performance Indicator Results (Proposed in 2016 vs. Approved 2013) Year 4 Results LOP Target Proposed (New) 2016 Proposed (New) Performance Indicators: vs. 2016 LOP Achieved Variation Approved 2013 vs. Target Actual Approved 2013 LIVCD Goal: Develop functional competitive value chains to increase incomes of the rural population including MSMEs As a result of a survey conducted in May – June 2016 to collect data from all LIVCD beneficiaries and aiming at evaluating DO 2a: Value of new private sector the actual value of investment leveraged New investment leveraged by USG by the project’s activities, LIVCD has assistance exceeded the yearly target of 0 by 186% reaching a total value of

As a result of a survey conducted in May – June 2016 to collect data from all LIVCD beneficiaries and aiming at evaluating Value of new private sector investment the actual value of investment leveraged Approved leveraged by USG assistance by the project’s activities, LIVCD has exceeded the yearly target of 9 by 240% reaching a total value of $ As a result of a survey conducted in May – June 2016 to collect data from all LIVCD beneficiaries and aiming at evaluating Value of investment made by farmers the actual value of investment leveraged New and other value chain actors leveraged by the project’s activities, LIVCD has by LIVCD implementation. exceeded the yearly target of by 22% reaching a total value of Didn’t exist DO 2b: Number of new and better jobs 415 more than planned, 15% higher than New 2,625 3,040 7,500 7,052 attributed to USG intervention the yearly target. 2,165 more than planned, Number of jobs impacted by LIVCD Approved 875 3,040 2,500 7,052 247% higher than the yearly target. implementation LIVCD has proposed new LOP target. DO 2c: Proportion of female New participants in USG-assisted programs 20% 21% 2,571 2,971 Actual result us equal to the yearly target designed to increase access to

productive economic resources (assets, credit, income or employment) Proportion of female participants in USG -assisted programs designed to Actual result is 100% higher than target. Approved increase access to productive economic 10% 21% 1,275 2,971 LIVCD proposed new LOP target. resources (assets, credit, income or employment) LIVCD Objective 1: Increased Competitiveness of Lebanese Value Chains Year 4 Results LOP Target Proposed (New) 2016 Proposed vs. (New) Performance Indicators: Approved 2013 2016 LOP Achieved vs. Approved 2013 Target Actual IR 2.1.a: Number of beneficiaries who have Actual result is 677 more beneficiaries applied improved technologies or New 3,036 3,713 8,675 8,737 applying improved technologies. 22% management practices as a result of USG higher than the target assistance Actual result is 749 more farmers Number of farmers and others who have applying improved technologies. applied improved technologies or Approved 2,888 3,636 8,250 8,402 26% higher than the target. This management practices as a result of LIVCD indicator was merged with the indicator assistance below to be aligned with the CDCS. Number of private enterprises, producers Actual result is -72 less than th e yearly organizations, water users associations, target. -48% lower than target.This women’s groups, trade and business indicator was merged with the indicator Approved associations and community -based 149 77 425 335 above to be aligned with the CDCS. organizations (CBOs) that applied improved technologies or management practices as a result of LIVCD assistance IR 2.1b: Number of MSMEs, including farmers, and other organizations receiving Actual result is 177 more than target. 4% New 4,499 4,676 12,855 12,933 business development services from USG higher than target assisted sources Actual result is 214 more than target. 5% IR 2.1b: Number of MSMEs, including higher than target farmers, and other organizations receiving Approved 4,463 4,676 12,750 12,933 business development services from USG

assisted sources

10% Actual result is $ ) lower increase IR 2.1c: Value of sales (collected at farm- than target. onthe New level for small holders and firm-level for $ LIVCD is working on collecting sales yearly MSMEs) as a result of USG assistance (Export and Domestic) attributed to the achieved project activities – T.As and /or Grants. results Actual result is higher than Value of exports of targeted target. This indicator was merged with Approved agriculturalcommodities as a results of $ the indicator below to be aligned with LIVCD assistance the CDCS. Value of incremental sales (collected at Actual result is lower farm-level for small holders and firm-level than target. This indicator was merged Approved for MSMEs) attributed to LIVCD with the indicator above to be aligned implementation with the CDCS. Number of individuals who have received New 4,148 3,257 11,850 10,370 Actual result is -891 lower than target. USG- supported short-term training. Number of individuals who have received Actual result is -891 lower than target. Approved USG- supported short-term agricultural 4,148 3,257 11,850 10,370 sector productivity or food security training. LIVCD IR1: Increased Access to Markets Year 4 Results LOP Target Proposed (New) 2016 Proposed vs. (New) Performance Indicators: Approved 2013 2016 LOP Achieved vs. Approved 2013 Target Actual Number of export markets, or Actual result is 6 more than target. 27% distribution channels for selected higher than target New 22 28 63 131 products accessed as a result of USG assistance Number of export markets, or Actual result is 6 more than target. 27% distribution channels for selected higher than target Approved 22 28 63 131 products accessed as a result of USG assistance LIVCD IR2: Increased Business Linkages Year 4 Results LOP Target Proposed (New) 2016 Proposed Performance Indicators: vs. (New) LOP Achieved Approved 2013 2016 vs.

Approved 2013 Target Actual Sub-IR 2.1.2.a: Number of MSMEs, Actual result is 1838 more than target. including farmers, and other 269% higher than target. New 683 2,520 1,950 3,867 organizations benefiting from new horizontal & vertical linkages Number of MSMEs, including farmers, Actual result is 1838 more than target. Approved benefiting from new horizontal & 683 2,520 1,950 3,867 269% higher than target. vertical linkages LIVCD IR3: Increased Productivities Year 4 Results LOP Target Proposed (New) 2016 Proposed (New) Performance Indicators: vs. 2016 LOP Achieved Approved 2013 vs. Approved 2013 Target Actual 10% increase over Reported Gross margin per hectar, animal or cage Same baseline for each of selected product VC · Pome Fruit 10% increase over baseline Actual result is -68% lower than target.

· Stone Fruit-Avocados 10% increase over baseline Actual result is 116% higher than target. 6

· Stone Fruit-Cherry 10% increase over baseline Actual result is 30% higher than target.

· Olive Oil 10% increase over baseline Actual result is 23% higher than target.

· Grapes 10% increase over baseline Actual result is 19% higher than target.

· Honey 10% increase over baseline Actual result is -5% lower than target. LIVCD Objective 2: Increased Access to Value Chain Finance Year 4 Results LOP Target Proposed (New) 2016 Proposed (New) Performance Indicators: vs. 2016 LOP Achieved Approved 2013 vs. Approved 2013 Target Actual IR 2.2a: Number of enterprise/farmers Actual result reached 36 New TBD 36 TBD 53 that successfully accessed loans, private enterprise/farmers that successfully

equity, or both as a result of USAID loans assistance Didn’t exist LIVCD IR4: Constraints to Lending and Investment Reduced Actual result is more than Sub-IR 2.2.2a Total value of loans issued New 0 5 0 target. 42% higher than target. as a result of USG assistance

Didn’t exist Number of public-private partnerships Actual result is -28 lower than target. New 105 77 300 188 formed as a result of FtF assistance -27% lower than target. Number of public-private partnerships Actual result is -98 lower than target. - Approved 175 77 500 188 formed as a result of FtF assistance 56% lower than target. Number of MSMEs, including farmers, Actual result is 130 higher than New reached by USG to apply for value chain 263 392 750 1,160 target.49% higher than target. finance Number of MSMEs, including farmers, Actual result is 130 higher than target. Approved assisted by USG to apply for value chain 263 392 750 1,160 49% higher than target. finance

LIVCD Results Framework & Performance Indicators (Amended 2016)

LIVCD RESULTS FRAMEWORK & PERFORMANCE INDICATORS (reference: LIVCD logical framework aligned with Mission logical framework - Social Impact feedback on LIVCD M&E plan - page 81; August 2016)

CDCS DO2: Inclusive Economic Growth Enhanced

LIVCD Goal: Develop functional competitive value chains to increase incomes of the rural population including MSMEs Indicator 1. DO2.a: Value of new private sector investment leveraged by USG assistance Indicator 2. Value of new private sector investment made by farmers leveraged by USG assistance Indicator 3. DO2.b: Number of new or improved jobs attributed to USG assistance Indicator 4. DO2.c: Proportion of female participants in USG-assisted programs designed to increase access to productive economic resources

CDCS IR2.1: Increased private sector competitiveness

LIVCD Objective 1: Increased Competitiveness of Lebanese Value Chains Indicator 5. IR2.1.a: Number of beneficiaries who have applied new technologies or management practices as a result of USG assistance Indicator 6. IR2.1.b: Number of MSMEs receiving business development services from USAID-assisted sources Indicator 7. IR2.1.c: Value of Sales collected at farm-level for small holders and firm-level for MSMEs as a result of USG assistance Indicator 8. Number of individuals who have received USG-supported short-term training

CDCS Sub-IR2.1.2: Increased business and trade linkages

LIVCD IR1: Increased Access to Markets Indicator 9. Number of export markets or distribution channels for selected products accessed as a results of USG LIVCD assistance LIVCD IR2: Increased Business Linkages Indicator 10. Sub-IR2.1.2.a: Number of MSMEs, including farmers, and other organizations benefiting from new horizontal and vertical linkages LIVCD IR3: Increased productivities Indicator 11. -Gross margin per hectare, animal or cage of selected product (RiA)

CDCS IR2.2: Increased access to finance, especially for new business start-ups and woman

LIVCD Objective 2: Increased access to value chain finance Indicator 12. IR2.2.a:Number of enterprises that have successfully accessed loans, private equity , or both as a result of 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 Indicator 13. Sub-IR2.2.2.a Total value of loans issued as a result of USG assistance Indicator 14. Number of public -private partnerships formed as a result of FTF LIVCD assistance Indicator 15. Number of MSMEs, including farmers, reached by USG to apply for value chain finance

LIVCD Results Framework & Performance Indicators (Approved 2013)

17 LIVCD Performance Indicator 1. Value of new private sector investment in the agriculture sector or food chain leveraged by FtF implementation Increased investment is the predominate source of economic growth in the agricultural and other economic sectors. Private sector investment is critical because it indicates that the investment is perceived by private agents to provide a positive financial return and therefore is likely to lead to sustainable increases in agricultural and non-agricultural production.

LIVCD Performance Indicator 1

LIVCD Performance Indicator 2. Number of jobs impacted by LIVCD implementation The number of jobs impacted by LIVCD implementation indicator is a direct measure of improved livelihoods, as it measures creation of employment or support to existing employment and related income.

LIVCD Performance Indicator 2

LIVCD Performance Indicator 3. Proportion of female participants in USG-assisted programs designed to increase access to productive economic resources (assets, credit, income or employment) In terms of participation of women in LIVCD activities, the proportion of female participants assisted to increase access to productive economic resources (assets, credit, income, or employment) through participation in LIVCD interventions was 21% across all value chains in Year 4.

LIVCD Performance Indicator 3.

Total women participation

Rural Basket - Honey 116

Olive Oil 613

Pome Fruits 28

SF - Cherries 21

SF - Avocados 34

Rural Basket 37

Processed Food 70

Rural Tourism 246

Grapes 23

0 100 200 300 400 500 600 700

SF - Rural Rural Process Rural SF - Pome Grapes Avocad Olive Oil Basket - Tourism ed Food Basket Cherries Fruits os Honey Total women participation 23 246 70 37 34 21 28 613 116

The value chain with the largest number of female beneficiaries was Olive Oil, followed by Rural Tourism and Rural Basket-Honey; these beneficiaries included those participating in grants that assisted women to start or improve micro-enterprises in producing and selling Honey, providing Rural Tourism services as well as applying improved technologies to reduce cost of production in the Olive Oil and the remaining agricultural value chains.

LIVCD Intermediate Result 1: Increased Access to Market

LIVCD Performance Indicator 4. Number of farmers and others who have applied improved technologies or management practices as a result of USG assistance

LIVCD Performance Indicator 5. Number of private enterprises, producers organizations, water users associations, women’s groups, trade and business associations and community -based organizations (CBOs) that applied improved technologies or management practices as a result of USG assistance Technological change and its adoption by different actors in the agricultural sector is critical to increasing agricultural productivity. This indicator tracks private sector and civil society behavior change to increase productivity in the target value chains. New technologies and management practices include agricultural

production practices, business management practices (such as improved financial management, marketing practices such as Joint Product Promotion or improved branding and labeling). LIVCD assisted 3,636 farmers and other individuals, and 77 organizations , to apply improved technologies or management practices. Disaggregation of this result by value chain is illustrated in the figures below.

LIVCD Performance Indicator 4

# of farmers and others who have applied improved technologies Rural Basket - Honey 449 Olive Oil 2575 Pome Fruits 148 SF - Cherries 154 SF - Avocados 60 Rural Basket 34 Processed Food 24 Rural Tourism 4 Grapes 187

0 500 1000 1500 2000 2500 3000 Rural Process SF - SF - Rural Rural Pome Olive Grapes Touris ed Avocad Cherrie Basket Basket Fruits Oil m Food os s - Honey # of farmers and others who have 187 4 24 34 60 154 148 2575 449 applied improved technologies

LIVCD Performance Indicator 5

LIVCD Performance Indicator 6. Number of MSMEs, including farmers, and other organizations receiving business development services from USG assisted sources

The result of this indicator provides a count of all LIVCD direct MSME beneficiaries, and indicates the extent to which LIVCD-supported interventions are reaching the target beneficiary population in the target value chains. A total of 4,676 MSMEs benefited from LIVCD assisted business development services in Year 4 (some MSMEs received several types of assistance but are counted once). The number of MSMEs assisted by value chain is presented in Figure 6. Of the MSMEs assisted in Year 4, 4,639 were micro-enterprises , while the remaining 29 were small enterprises , and 08 were medium enterprises . This is an important indication that LIVCD is making progress in building inclusive value chains by linking micro-enterprises into the target value chains to create sustainable income-generating opportunities.

The actual result for Year 4 was 5% higher than the target (214 more MSMEs than planned). LIVCD has already achieved the Life of Project target of 12,750 MSMEs assisted.

LIVCD Performance Indicator 6

# of MSMEs assisted

Rural Basket - Honey 891 Olive Oil 2502 Pome Fruits 197 SF - Cherries 275 SF - Avocados 259 Rural Basket 124 Processed Food 68 Rural Tourism 108 Grapes 251

0 500 1000 1500 2000 2500 3000

Rural Rural Processed Rural SF - SF - Pome Grapes Olive Oil Basket - Tourism Food Basket Avocados Cherries Fruits Honey # of MSMEs assisted 251 108 68 124 259 275 197 2502 891

LIVCD Performance Indicator 7. Value of exports of targeted agricultural commodities as a result of USG assistance (S) This indicator measures the effectiveness of LIVCD interventions to increase exports, reflecting improved competitiveness of target value chains. Increased agricultural trade is one of the end results of efficient markets.

LIVCD assisted beneficiaries to achieve increases in the value of exports in the Processed Food, Grapes, pomefruits, Olive oil, and Rural Basket - Honey.

LIVCD Performance Indicator 7

LIVCD Performance Indicator 8. Value of incremental sales (collected at farm-level for small holders and firm-level for MSMSEs) attributed to USG implementation The value (in US Dollars) of purchases from MSMEs including farmers is a measure of the competitiveness of those MSMEs or farmers. LIVCD assisted beneficiaries to achieve increases in the value of incremental sales in the Olive oil value chain, where increases in sales are reported in this annual report. As for the remaining value chains (showing decrease in sales) LIVCD interventions are mostly though ongoing grants and increase in sales will be reported at the completion of those grants.

LIVCD Performance Indicator 8

LIVCD Performance Indicator 9: Number of individuals who have received LIVCD- supported short-term agricultural sector productivity or food security training This indicator measures delivery of training to enhance human capacity for increased agriculture productivity, improved food security, policy formulation and/or implementation, which is key to improving productivity. The number of individuals to whom significant knowledge or skills have been imparted through interactions that are intentional, structured, and purposed for imparting knowledge or skills are counted. LIVCD provided training and technical assistance to encourage adoption of improved production practices (including agricultural practices for farmers, and processing techniques for processors) with the objective of increasing productivity, as well as training to firms and organizations to build capacity form business and project management. LIVCD supported training to 3,257 individuals this year .

LIVCD Performance Indicator 9

# of individuals received training

Rural Basket - Honey 887 1050 Pome Fruits 192 243 SF - Avocados 157 30 Processed Food 107 401 Grapes 190 0 200 400 600 800 1000 1200

SF - Rural Rural Processe Rural SF - Pome Grapes Avocado Olive Oil Basket - Tourism d Food Basket Cherries Fruits s Honey # of individuals received training 190 401 107 30 157 243 192 1050 887

LIVCD Intermediate Result 1: Increased Access to Market

LIVCD Performance Indicator 10 . Number of export markets, or distribution channels for selected products accessed as a result of USG assistance

The indicator measures the effectiveness of LIVCD interventions in assisting value chain actors to enter new, diverse market or distribution channels, or increasing or maintaining sales to existing markets or distribution channel. This is an indication that LIVCD interventions have been successful in assisting beneficiaries to meet the demands of the market or distribution channel, which in turn reflects improved competitiveness of the LIVCD-assisted value chains and achievement of the project objective.

In Year 4, LIVCD assisted beneficiaries to access 28 markets / distribution channels in target value chains. All markets and distribution channels were strengthened (existing markets to which exports increased).

LIVCD Performance Indicator 10

LIVCD Intermediate Result 2: Increased Business Linkages

LIVCD Performance Indicator 11. Number of MSMEs, including farmers, benefiting from new horizontal & vertical linkages

The indicator measures the number of MSMEs benefiting from new horizontal and vertical linkages in the targeted value chains, and indicates the extent to which LIVCD-supported activities bring together actors within the value chain in ways where “win -win” relationships are formed and coordination including improved information flows improves competitiveness of the whole value chain. Vertical linkages refer to commercial transactions between buyers and sellers, while horizontal linkages refer to cooperation between firms or farmers on the same step in the value chain who cooperate to form a single entity that interacts with other actors in the value chain (e.g., cooperation between producers to buy inputs as a group, through a cooperative or other mechanism.)

LIVCD supported 2,520 MSMEs to benefit from new linkages with other firms and actors in the value chain . Nearly all of the MSMEs benefiting from new linkages in Year 4 (2,511) were micro- enterprises while 08 were small, and 1 medium sized. The large percentage of new linkages involving micro-enterprises (where a transaction successfully took place) demonstrates success in integration micro-enterprises into the targeted value chains.

LIVCD Performance Indicator 11

LIVCD Intermediate Result 3: Increased Productivity

LIVCD Performance Indicator 12. Gross margin per hectare, animal or cage of selected product

Gross margin is an indicator of productivity. Improving the gross margin for farm commodities in the target value chains contributes to increasing competitiveness of the value chain, and increasing incomes of individual producers. LIVCD expects to achieve increases in gross margin through interventions in the Olive Oil, Apple, Grape, Avocado, Cherry and Honey value chains. LIVCD tracks gross margin on a per- intervention basis. In Year 4, LIVCD assisted farmers throughout targeted interventions that resulted significant improvement of gross margin value as shown in the above table (LIVCD Performance Indicator Results (Proposed in 2016 vs. Approved 2013) . As for apple and honey, external factors, political – Syrian Crisis impact on Lebanese exports- and climate conditions has negatively impacted the production and the sales.

LIVCD Intermediate Result 4: Constraints to Lending Reduced (Access to Finance)

LIVCD Performance Indicator 13. Number of public-private partnerships formed as a result of FtF assistance

The number of PPPs formed provides an indication of the extent to which LIVCD-supported activities are leveraging additional resources and investments to achieve project objectives and sustainability. This in turn contributes to enhanced competitiveness that expands the participation of MSMEs in the targeted value chain and achievement of the project objective. A public-private partnership is considered formed when there is a clear agreement, usually written, to work together to achieve a common objective. In Year 4, LIVCD entered into 77 PPPs to leverage private sector investment in the targeted value chains. Most of these PPPs are with firms, cooperatives and NGOs who are actors in the targeted value chain linked to farmers.

LIVCD Performance Indicator 13

# of PPP

Rural Basket - Honey 25 Olive Oil 15 Pome Fruits 3 SF - Cherries 2 SF - Avocados 3 Rural Basket 2 Processed Food 18 Rural Tourism 6 Grapes 3

0 5 10 15 20 25 30

Rural Processed SF - Rural Basket Grapes Rural Basket SF - Cherries Pome Fruits Olive Oil Tourism Food Avocados - Honey # of PPP 3 6 18 2 3 2 3 15 25

LIVCD Performance Indicator 14. Number of MSMEs, including farmers, assisted by USG to apply for value chain finance The indicator measures the number of MSMEs receiving LIVCD assistance to apply for grants, bank loans, or private equity, and thus the extent to which LIVCD project interventions reach beneficiaries to increase investment in target value chains, a key factor in improving competitiveness and a reflection of investor confidence. LIVCD assistance to access value chain finance includes supporting preparation of feasibility studies, business plans and loan/grant applications, for MSMEs to apply for loans from financial service providers or LIVCD grants or to support access to private equity.

Workshops: LIVCD partners with financial institutions (BLC Bank, others) to hold workshops at which the financial institutions present farmers with information about their loan products appropriate to invest in LIVCD-promoted technologies and upgrades, such as hives and new equipment in the beekeeping sector; new varieties, equipment and other orchard upgrades for avocado and grapes. Feasibility Studies: LIVCD supports conducting feasibility studies to help farmers and other MSMEs determine whether investments under consideration are commercially sustainable. These feasibility studies are used to support loan applications.

Grant or Loan application facilitation : LIVCD assists MSMEs directly with application for loans or in some cases LIVCD grants. LIVCD assists with identifying the paperwork required, assists the MSME to assemble the necessary documents and in some cases facilitates directly with financial institutions to ensure a smooth process and successful loan.

LIVCD Performance Indicator 14

Applying to VC finance

Rural Basket - Honey 24

Olive Oil 34 Pome Fruits 14 SF - Cherries 108

SF - Avocados 20

Rural Basket 2

Processed Food 16

Rural Tourism 11

Grapes 163

0 20 40 60 80 100 120 140 160 180

Rural Rural Processed Rural SF - SF - Pome Grapes Olive Oil Basket - Tourism Food Basket Avocados Cherries Fruits Honey Series1 163 11 16 2 20 108 14 34 24

COMPONENT 1 – VALUE CHAIN ASSESSMENT

LIVCD is a five-year activity implemented through a contract (No. AID-268-C-12-00001) signed with DAI in September 2012. The LIVCD activity contributes to USAID/Lebanon Development Objective 2: “Enhance economic opportunity for the poorest segments of Leba nese society, particularly in areas outside metro Beirut.” LIVCD contributes to this USAID/Lebanon Development Objective by providing assistance to micro-, small-, and medium-sized enterprises including farmers and entrepreneurs in rural areas, to upgrade targeted value chains and support jobs and incomes. In the initial phase of the activity in Year 1, LIVCD conducted in-depth assessments of 10 value chains (and shorter assessments for four additional value chains), to select target value chains for upgrading according to the following selection criteria: 1) Competitiveness, i.e., which of the value chains have the potential during the period of the project to be fully upgraded and compete successfully in domestic and international markets; 2) Development impact. i.e., which of the value chains offer broad based positive impacts in the rural sector in Lebanon and have the potential to integrate small and medium farmers and businesses into larger more competitive value chains; this set of criteria also includes gender and youth; and 3) Feasibility, i.e., which value chains offer the opportunity for LIVCD to facilitate positive and real change within the life of the project and within the contract budget.

These assessments identified for each of the value chains the constraints and opportunities to increasing competitiveness, and an upgrading strategy with a range of activities to address these constraints. The following value chains were selected following approval by USAID in May 2013.

Pome Fruit (Apples and Pears) Stone Fruit – Avocado Stone Fruit – Cherry Grapes Olive Oil Processed Foods Honey Rural Basket including free-range eggs, pine nuts, and herbs Rural Tourism, including handicrafts Floriculture (removed from the LIVCD portfolio of value chains in Year 2)

COMPONENT 2 - VALUE CHAIN UPGRADING

Pome Fruit (Apples and Pears) POME FRUIT VALUE CHAIN UPGRADING STRATEGY – PRIORITIES OF THE WORK PLAN The LIVCD Pome Fruit Value Chain Upgrading Strategy is focused around four axes of intervention, with the aims of 1) Responding to growing regional market by supporting Lebanese exporters and local traders to identify and access high value local and export market opportunities to increase sales and export to target markets in the GCC countries, Europe, and UK as well as to local market, 2) Improving aggregation and storage by increasing efficiency and capacity of sorting, packing, and cooling facilities; and processing facilities to extend marketing opportunities for fresh and processing apples, 3) working with lead partners to oversee regionally specific programs to increase apple orchard production per square meter and the percentage of grade A apples and pears, and 4) Facilitating access to finance for MSMEs that want to invest in upgraded orchard and production practices.

The LIVCD Work Plan (Year 4 and Life of Project) identified the following priorities for the Pome Fruit Value Chain Upgrading Strategy:

Immediate/ short term priorities: Long term priorities: · Increase production of varieties that have · Upgrade harvest and post-harvest practices, demand in high value markets. cold storage, and processing units. · Promote certification for producers and · Improve production of existing orchards in processors. terms of quantity and quality (increase in Grade A fruit). · Create a network from the established different service centers and linkage to · Organize farmers around “ farmer service different scientific and research institutions and reference centers ”. as well as to service providers, input · Produce Certified plants true- to- type and suppliers and traders. virus free for Apples · Glo bal GAP certifications for Large Farmers · Group of farmers that are "IP" (Integrated with opportunity to export to Markets Production) or “IPM” certified . requiring this certification. · Establish linkages between the demo · Introduce New Technologies- Smart Fresh. plots/service centers, and input uppliers,

farmers and traders/ exporters · Introduce efficient harvesting technologies: Baskets, modified atmosphere plastic · Introduce efficient harvesting technologies: containers. Picking buckets, crates. · Implement a Large central aggregated · Support medium sized aggregator - exporter packing house for larger export orders in facilities with equipping them with one the region . packing and sorting line by Region - Mount Lebanon is a priority

SUMMARY OF YEAR 4 PROGRESS: ACHIEVEMENTS & CHALLENGES

In Year 4 of project implementation, based on the assessment results that identified a lack of supply of Grade A apples of demanded varieties as a constraint to export, LIVCD focused on linking the farmers who are successful in upgrading their production and increasing their quantity of Grade A pome fruit to exporters seeking supply of high quality fruit for export markets. Challenges faced were mainly at the market level. Farmers were faced by the collapse of the Egypt market due to monitory devalorisation. Following several meetings with apple exporters and LIVCD ’s marketing and apple value chain team, it was clear that the pome fruit situation for this season would be challenging and probably catastrophic for farmers and traders. 70% of Lebanon’s exported apples go to Egypt and the monetary devaluation impacts purchase prices: traders are paying 30% less than last year. In 2 years, the value of apples has dropped by 50%. It is becoming more and more evident for farmers and traders that the pome fruit value chain needs to implement a deep restructuring and adopt a new mentality to access non-conventional markets.

The issues related to the new regional situation can be summarized as follows:

· High demand for exports that producers cannot meet in terms of quality and sorting. · Lack of trust between exporters/traders and farmers. · High dependency on the Egypt market (70% %of export) which is facing currency devaluation. · No traceability systems. · High cost of production: 31% is manpower and transportation cost, 41% treatment (cost of pesticides, fertigation, organic and chemical amendment) · Poor quality seedlings and expensive germ plasm. · Poor harvest and post-harvest handling: obsolete cooling, storage infrastructure, and technology.

While the constraints related to targeting new export markets are: · Lebanese apples are not competitive in terms of cost. · Quality: Lebanese apples do not meet European standards in terms of pesticides, varieties, grading, and consistency. Lebanon is limited to lower grade markets such as Egypt. Europe can become a targeted export market if Global Gap is applied, as well as GCC, Russia, Africa, Venezuela, and others · Infrastructure - volume and capacity of sorting and packing : Lebanon lacks capacity to respond to large demand in terms of centralized packing houses. · Lack of efficient collaboration between traders and farmers in the value chain · Cold storage: Lebanese bas many traditional but non-efficient cold storage facilities. However, it lacks modern controlled atmosphere cold storage facilities. Considering the high cost of implementing cold storage/modified atmosphere facilities, focusing on SmartFresh technology is of interest since it is a new technology and cheaper to implement. · High taxes in export markets such as Russia and Sudan · High cost of harbor fees per day, which is currently $50/day/container · High cost of issuing certificate of origin by container ($51/ container) · Monopoly for shipping to Egypt : Only 2 companies are having all the contracts to ship to Egypt

Local market constraints are mainly related to imported apple competion:

· Competition with imported products from Turkey, Europe, Chile · Price competitiveness vs quality (between April and July): o Imported apples sale price: 6,000 LBP per kilo o Local apples: 2,500 LBP per kilo. o Lebanese apples can reach 4,000 LBP with upgraded quality cold storage.

Market linkages:

To further extend markets for apple farmers, LIVCD supported linkages between farmers, traders and food prossessors. A meeting was held on July 21th 2016 at the National Produce and Packaging Company (NPPC) packing house Taanayel. LIVCD facilitated the linkages and introduction between exporter/broker and the packing center. has a secured contract with a large chain of supermarkets in export countries including France. The export contract is for an unlimited volume of apples, potatoes, onions and citrus fruit. The potential collaboration with the NPPC packing house (Al Yassine, formerly Al Sultan) and apple exporters and farmers is very promising for the 2017 season. Collaboration will not be possible until 2017 since both and the facility are fully committed with potato exports. A series of meeting were held with apple exporters, starting with the head of the syndicate of rfesh fruits and vegetables, , and with the largest apple exporter in Lebanon; , who exports yearly a volume of approximately 700 containers at a value of USD 20 million. Dealing with 350 farmers from different regions across Lebanon, mainly from Bcharreh region, the Fakhry company shared with LIVCD an EOI requesting support to establish a packing house consisting of a pre-cooling and cold storage area as well as a sorting and packing area. This will help increase apple exports and penetrate new market channels. LIVCD team is still assessing if a collaboration with the Fakhry company is possible and will be beneficial for the sector.

During July – August, the team met several times with a large exporter from Kfardebia: . exports his own production and aggregates fruit from 10 apple farmers, and has the potential to source from more than 30 farmers of Kesserwan and improve product quality and reach high end value markets. Kfardebian is the biggest village in Lebanon; one third of the country’s apples are produced in Kfardebian. has presented an EOI that LIVCD is working to develop into a grant proposal with the objective of ensuring market access for 30 apple farmers.

The project also continued to support a local trader, KARMA, a company specialized in high end export of fresh fruits and vegetables. , owner and manager of KARMA, agreed for the first time in many years to start exporting apples by air to Gulf Cooperation Council (GCC) countries. Khaled Sinno is also willing to increase his apple export by sea by entering new markets such as Africa.

Along with the meetings with exporters, LIVCD team is coordinating with the economic department at the Ministry of Agriculture to develop a national workplan that will be adopted by the ministry. The workplan will include short and long term plans, an assessment of the current cold storage facilities, sorting and packing centers, NGOs active in the apple value chain,and main pome fruit exporters. The ministry has already shared with the LIVCD team data on cold storage and packing centers, and the team is assessing the list and will be making recommendations for a workplan. A meeting will be scheduled with the Investment Development Authority of Lebanon (IDAL), chambers of commerce, NGOs, exporters, the ministry and LIVCD to draft the workplan in Year 5.

LIVCD successfully participated in the first edition of the Mayrouba Festival organized by Mubadarat Association, which took place on Saturday September 3 and Sunday September 4, and gathered over 1,000 visitors. The festival took place in Kesserwan, a traditionally apple growing region, and hosted producers of several food and handicrafts elements under the apple theme. LIVCD hosted apple producers from the region who exhibited their apple-based products such as apple vinegar and different varieties in its 36 square meters stand. LIVCD experts gave a workshop on Integrated Production (IP system), Mayrouba apple festival Global Gap certification, and Trellis system for apple production and LIVCD trials and demo plots.

Agreggation and Post Harvest:

LIVCD continued its support to the Liban Village Company through installing a sorting line and providing new plastic crates, a metal structure to stock crates of apples in the cold storage, as well as a solar system to produce electricity to operate the sorting line. The aim is to increase its efficiency in sorting, packing and cold storage and to reduce the cost and bruising of apples. Liban Village was able to sort more than 300 tonnes of apple destinated for export during this season (August and September 2016).

The collapss of the Egypt market induced a need to find other market destinations, such as Sodan, Venezuela, and Sweden. These markets are demanding in quality and consistency of apples; only a mechanized operation can respond to this demand.Egyptian traders are also requiring better quality and homegeniety than in the past.

After the successful results of upgrading the Liban Village facility, apple exporter and farmer i invested in a modern cold storage facility and is looking to start implementing a mechanical sorting line to serve the region of Kesserwan. LIVCD had several meetings with and started to draft a grant that will be beneficial for apple farmers in the Kesserwan area. The proposed activity will be sustainable, seeing as it would be a partnership with a private sector exporter who has a vision and market opportunities.

Starting from July 25th 2016, intensive meetings were held at the Georges N. Frem Foundation (GNFF) with (Executive Director) and (Agriculture Program Manager), where areas of potential collaboration in the apple value chain were discussed. GNFF is looking to improve the apple value chain in the area of Mount Lebanon, Kesserwan and Byblos, where they are already providing services to around 2,000 apple farmers. The proposed collaboration aims to create a service center that will offer the growers a sorting, grading and packing line, extension services, production and implementation of a quality manual that will prepare the growers for quality certification such as Global Gap and/or intensive production (IP). LIVCD is currently reviewing the proposal with GNFF to draft a grant that will be sustainable and beneficial for the apple sector.

Production: On the production side, LIVCD focused on increasing productivity by improving extension services for technical advice and farm visits for pome fruit production. LIVCD interventions included conducting technical training for improved production practices on existing orchards, and establishing demonstration plots for new varieties and intensive production on trellis.

LIVCD established additional 3 production service centers: one in Hadath El Jibbeh in partnership with “Mar Semaan Cooperative”, one in Ainata in partnership with “The General Agriculture Cooperative of Ainata”, and one in Brih in partnership with “Brih Cooperative”. The production service centers aim to group and organize farmers around a center to encourage collective purchase of input and services. The main purpose of the 3 service centers are to: - Increase production per square meter of pome fruit. - Reduce production cost. - Increase percentage of Grade A apples/pears produced. - Put in place a traceability system, in preparation for the Global GAP/IP certification to facilitate exports. - Set sustainable linkages between producers traders and input suppliers.

During the first 4 months of implementation, more that 100 farmers were served through the different services established at the center. These include pest Apple pruning day management (in compliance with the PERSUAP), record keeping, technical on-farm visits, weeding, harvesting, linkages to cold storage and to new market channels.

In addition to technical support and machinery, farmers using the 3 service centers now benefit from an extensive interactive technical training and coaching on orchard management, pruning, harvest, and other topics.

The Mar Semaan Cooperative in Hadath El Jibbeh achieved outstanding results in conducting trainings, and also adopted a traceability system and created linkages to new markets at the local level. The Cooperative also initiated negotiations with traders for export opportunity to Gulf countries.

The Mar Semaan Cooperative was able to sell (during June to September 2016), 26 tons of cherries with a value of 20,000 USD, 9.3 tons of pears with a value of 6,058 USD and 23.4 tons of apples with a value of The apples were sorted and packed at Liban Village cold storage facility.

The Brih service center was able to conduct an intensive series of technical trainings for farmers and establish linkages with the local market. 70 farmers were identified who expressed their will to benefit from the center’s services. The Agriculture Cooperative of Brih, through the established

33 service center, was able to sell around 7 tons of high quality apples with a value of $5,600 USD for the local market.

Construction of Brih service center Training session for apple farmers in Brih

The Ainata service center received various equipment which will allow intensive intervention in pruning spraying and harvesting during the 2017 spring season.

Delivering of equipment in Ainata service center

LIVCD signed 2 additional development grant agreements to establish demonstration plots in highly productive areas of pome fruit cultivation (Hadath El Jibbeh and Brih). This is in addition to the previously established 12 demonstration plots in Zaarour, Sannine, Zahle, Kherbet Ana Far, Ainata, Kfar Debian, Mayrouba, Kobayat (2), Aoura, Fneidik and Jbaa. The 2 new established demo plots are directely linked to the established service centers under the management of the Brih Cooperative and the Mar Semaan Cooperative.

A contract was signed with the Debbane Freres and Daccach companies to establish the needed infrastructure for the demonstration plots (trellis, irrigation, plastic mulch). All sites were prepared at the end of November 2015.

As a result of previous intervention in the village of Jbaa (Nabatieh) – the different trainings that were conducted at the demo plot and the observation that farmers conducted during one year and a half – 6 farmers have to date expressed their interest in applying new intensive production system and asked for LIVCD technical assistance to start implementing the system. LIVCD linked them to the demo plot owner in Jbaa who volunteered to support the interested farmers.

From August 9 th to September 26 th 2016; delegation of 8 Lebanese pome fruit producers and technicians visited the USA for a technical horticulture study tour on pome fruit. All delegates were horticulturalists, two were nursery specialists, and one of them was a Technical Director of a nursery. Two own their own companies growing fruits including apples and pears and operate small cold storage facilities. The primary focus for the study tour was apple and pear cultivation practices,

34 post-harvest physiology, crop loss prevention, cold storage and the “ cold chain system” as well as methods employed to ensure food safety and security for apples & pears in California, Oregon and Washington. The participants were also exposed to the marketing of those fruits and how to add value to those commodities. Three of the delegates were also cherry growers who attended a USAID funded program in 2015 on cherries.

Pome fruit study tour to the U.S.

In year 4, LIVCD has trained a total of 473 pome fruit farmers participants through the interventions described above. Several interactive training sessions and on farm field visits were delivered at the demonstration plots and /or through the different service centers established. Training sessions included:

- Good agriculture practices - Winter pruning - Ground cover management

Pome fruit grants and training sessions are listed in the tables below.

Year 4 Pome Fruit Grants Axis 1: Marketing

Grant USD Grant Title Purpose Status Grantee Date Number Value

Increase sales of G-LIVCD- The grant will design and rebrand an LIVCD received KARMA 9/28/2015- fresh fruits (cherry, 121 upgraded modern and attractive USAID approval on Lebanon SAL In-Kind 9/28/2016 grape, apple, and labeling and invest in a new mold to this grant on Grant avocado) in export produce innovative packaging, as well September 2, 2015. markets through as develop a new interactive website Branding, to facilitate reaching out to potential LIVCD and partner Repackaging, new distributors, retailers, and Karma Lebanon, Maketing Support consumers, in export markets and a exporter of fresh and Technical promotional corporate video, fruits and vegetables (discuss with access showcasing the production, packing, have completed the to finance) and transportation process, to promotional video potential customers. aimed at showcasing the company’s It will also develop and implement a products for export promotional campaign in targeted customers. In points of sales in export markets. addition, Karma has The campaign will include tasting completed its events, product presentation to rebranding which consumers by promoters, and in will be applied on store visibility, and will result in the company’s new increased sales of Lebanese fresh packaging. The new fruits in export markets. Finally, it packaging will allow will provide technical assistance and the brand to training to 16 fresh fruit producers in increase its good agriculture production customer base. In techniques, including harvesting and the coming months, post-harvest techniques to ensure Karma will launch its consistently high quality products. new packaging and The project will also ensure that will implement a

farmers are updated with consumers’ marketing campaign feedback and information on supported by LIVCD products’ sales, best sellers, varieties, in export markets. prices, and other relevant and valuable market information in order to guide their production practices

Axis 2: Aggregation

Grant USD Grant Title Purpose Status Grantee Date Number Value

Upgrade Liban G-LIVCD- Insufficient post-harvesting handling This project is at an advanced Liban 3/9/2015- Village to a 079 of pome fruits has a detrimental stage of implementation. Village In-Kind 3/9/2016 model sorting, G-LIVCD- impact on sales of Lebanese apples Activities implemented at Cold Grant packing, and 080 domestically and abroad. The lack of present: Storage Extended cooling modern automatic sorting, -At the beginning of this S.A.L. to storage to appropriate packaging, cleaning, and season Liban Village started Simplified 5/12/2016 facilitate waxing are factors that adversely fulfilling its commitment to Grant access of impact the quality of pome fruit offer farmers a reduced pome fruit resulting in lower market prices and, cooling service cost (25% farmers to sometimes, rejection of the fruit. less), a reduced sorting service new Cooling storage operators have not (16% less), and free access to technology introduced new technology that modified crates to transport preserves the quality of the pome their apples to the cold fruit and allows for longer storage storage. periods. Good aeration of the -An automated sorting line storage center and applying new was purchased and is technology will increase the operational (Grantee Cost profitability of apple farmers by Share), including washing, drying and waxing units allowing them to maintain their crops operated through advanced until they identify a suitable market software linking all units in the opportunity.

Liban Village was recommended by line. farmers, traders, and wholesalers as a -The sorting machine was result of its advanced services supported by additional compared to other cold storage accessories to increase quality facilities in the area and the of service and efficiency willingness of its management to though: cups for sorting, extend new technologies to farmers micro-pilot electronic for and other cold storage facilities in the weight management, and a region and beyond. Introducing LED color sorter. mechanical sorting and new cooling - 10,000 modified hard crates technology will upgrade the center’s for apple and pear storage was services contributing to increased purchased and is being leased productivity for all pome fruit value to farmers at reduced cost. chain actors, especially farmers. -Increase capacity and quali ty of cooling space through introduced metal structure to allow maximum use of space inside the cooling room to increase aeration allowing better circulation of air, the item are under manufacturing and will be ready end of November 2015. -Install a photovoltaic on-grid solar system to reduce electricity cost by around 43%. This activity is still under procurement process and offers are being analyzed. - 3 strapping machines to wrap and pack several apple trays to prepare for export, Grantee cost share has been purchased and operational.

Axis 3: Production

Grant USD Grant Title Purpose Status Grantee Date Number Value

Proximity G-LIVCD- The project aims to provide This grant is in the process to be Caritas 5/1/2014- Agriculture 030 equipment essential to the closed out. In-Kind 4/30/2015 Center G-LIVCD- establishment of a proximity Activities implemented are: Grant 031 service center to support the - Conduct training for farmers on apples, pears and cherries the following topics: Orchard Simplified establishment, Fertilization and farmers in Mount Lebanon as Grant fertigation, Irrigation techniques, well as conduct training for Harvesting operations, and Farm farmers on orchard management and record keeping establishment, fertilization -Conduct training for service and fertigation, irrigation providers:, Pruning, Plowing, techniques, integrated pest Mowing, Harvesting management, harvesting operations, and Farm -Establish horizontal and vertical management and record linkages among various actors: keeping. It will also conduct proximity service center, farmers, training for service providers: input suppliers, service providers, spraying, pruning, plowing, processors and exporters. mowing, harvesting as well as establish horizontal and vertical linkages among various actors: proximity service center, farmers, input suppliers, service providers, processors and exporters. Improving G-LIVCD- This project aims to establish This grant is in the process to be Sannine 4/1/2014- Pome Fruit 027 a Production Service Center closed out. Cooperative In-Kind 9/30/2015 Competiveness G-LIVCD- (PSC) in Sannine to upgrade Activities implemented are: for Grant in Jouroud Al 026 apple orchards of farmers in -A Production Service Center to Sustainable 10/8/2015- Maten through the area through the provide improved services to apple Agriculture- 12/31/2015 a Production provision of technical farmers was established. Simplified

Service Center assistance, training, services - A traceability system was put in SCSA Grant such as pruning on a fee basis place using GS1 software in and establishing a cooperation with the Chamber of demonstration plot. The PSC Commerce and Agriculture in will be a sustainable business Beirut. Farmers are now following a providing services to apple Global GAP approach in their farmers throughout the production and are ready to be region. certified. - 100 small and medium scale apple farmers were assisted through training and on field technical assistance utilizing the demonstration plot and taking advantage of SCSA’s direct linkages with service providers, input suppliers, and traders to facilitate collective purchases at whole sale prices. - A demonstration plot was established, with introduced new varieties. - The Cooperative opened new market channels and purchased apple from farmers and sold to local traders. - New packing material, designed especially for the cooperative was produced. - The existing compost unit was upgraded and supported with a compost turner that enhanced production and i ncreased quality of the compost. Improving G-LIVCD- The Project aim is to Mar Semaan 1/3/2016 – Pome Fruit 141 improve Pome fruit The Grant is in a middle of the Cooperative 1/3/2017

40 competitiveness G-LIVCD- competitiveness in Hadeth El implementation phase in Hadeth El 145 Jebbeh and surrounding - 2 junior agricultural engineers and Jebbeh and villages through the one Manager will be hired to surrounding establishment of a Production manage the Center technically and villages through Service Center (PSC). The administratively and to conduct field the established service center’s visits, to provide farmers with all establishment objective will be: needed knowledge concerning book of a Production keeping, pest and disease Service Center “Grouping farmers around a management, fertilization, irrigation Production Service Center to and pruning. insure collective purchase of inputs and services as well as The Center staff will facilitate a direct linkage to markets collective purchase of agricultural and traders”. products inputs and services (technical consultancies) to reduce cost and will establish a sales unit which aims to create direct linkag es between Pome Fruit (PF) farmers and traders to sell their products at better prices and bypass middle- men. The service center will be the link between PF growers and other public and private actors such as the Ministry of Agriculture (MoA), Hadeth El Jebbeh municipality, NGOs, laboratories, other service centers, seedlings nurseries.

- Establishment of 2 pome fruit (PF) demonstration plots, one semi intensive and one intensive using dwarf root stock on trellis which will be planted with new PF varieties and managed according to integrated pest and production management systems.

- LIVCD will support the Cooperative to purchase suitable equipment to be used and managed by the Center, for ameliorating agricultural practices such as spraying machines using electro static technology, electrical pruning shears, buckets for picking apples, refractometer and penetro-meter to determine best harvesting timing, PH Meter, Soil humidity meter to determine best irrigation timing, moto-cultivator and manual weeding machines. All equipment will be rented to farmers based on fair fees and will be kept in the service center (SC), maintained periodically, and used following the instructions of the center manager. - A traceability system using GS1 in cooperation with the Chamber of Commerce and Agriculture in Beirut and Mount Lebanon.

Establishment G-LIVCD- The project aims at Creation an Agricultural Service Genral 1/6/2016- of Ainata 189 increasing the Center (ASC): Agriculture 30/3/2017 Agricultural G-LIVCD - Competitiveness of the Pome The center will be equipped with Cooperative Service Center 188 Fruit and Cherry Value up-to-date technological material. of Ainata (ASC) Chains in Ainata and -The projects will up-grade the Surrounding Villages Ainata cold storage through the introduction of a traceability system and with 7,000 modified plastic crates for storing apples.

-The project will provide training and technical assistance to 2 agronomists and 5 agricultural technicians from the region on innovative agricultural practice s and the use of technologically up-to- date equipment Farmers will benefit from 11 training sessions on pome fruit and 7 training session on cherries, based on an exhaustive apple and cherry production training curriculum.

-The project will facilitate the adoption of new technologies by local farmers, by the introduction of new machinaries and equipments. -Using of GS1 traceability system – in collaboration with the Chamber of Commerce, Industry and Agriculture of Beirut and Mount Lebanon – this system will lead to increased international trust in the Lebanese apple sector. -The service center will also be linked to an existing demo plot (Previously established by the LIVCD project) using dwarf root stock on trellis which is planted with new Pome Fruit varieties on dwarf root stock and managed according to the integrated pest and production management system.

- Creation of an open gathering space and a sales point for agriculture inputs:

Establishment G-LIVCD- The project aims at The Project is in the middle of the Agriculture 15/7/2016- of Brih 196 “Increasing the implementation phase Cooperative 14/4/2017 Agricultural Competitiveness of the Pome of Brih - An “Agriculture Service Center” Service Center Fruit Value Chains in Brih will be established. The Service and Surrounding Villages”. center will conduct 10 trainings sessions related to good agricultural practices. All technical trainings will be followed up by on farm visits conducted by the agriculture experts as well as by the project manager.

-The Center Manager will facilitate collective purchase of agricultural products inputs and services (technical consultancies) to reduce cost.

-The center manager will facilitate direct linkages between Pome Fruit (PF) farmers and the whole sale market to sell their products at better prices and bypass middle- men.

-LIVCD will support the upgrade of 1 intensive pome fruit (PF) demonstration plots ( New poles, mulch and anti-hail netting), using a dwarf root stock on trellis which is

already planted with new PF varieties and managed according to IPM systems. A second existing plot will be adopted as demonstration; this plot is adopting the extensive system of production like the majority of producers in the area and will be following good agriculture practices. -LIVCD will support the Cooperative to purchase suitable equipment to be used and managed by the Service Center, for ameliorating agricultural practices such as purchasing of 1 spraying machines using electro static technology portable on tractor, 4 electrical pruning shears, 4 Long handed pruning shears, 1 wood shredder to process pruning residues and incorporate in the soil to increase soil organic matter, 10 buckets for picking apples, 1refractometer and 1 penetro- meter to determine best harvesting timing, 1 pH meter, 20 Soil humidity Tensiometers with 1 reading machine to determine the best irrigation timing.

Year 4 Pome Fruit Training Provision

Date Name/Type Event Total Location M F Target Beneficiaries Number

1/14/2016 Field training Kfarzabad on Apple 13 17 University Student -Youth Pruning-LU Students 7 January - March Training on Jbaah - Ain Bouswar, Apples Majdel Meouch, Akoura, 63 43 Farmers Winter Qobayat, Fnaydek, Deir Pruning el Ahmar - Jbaa-South April 1 st , 2016 Weed - Zahle- Bekaa April 4 th 2016 3 68 6 Pome Fruit farmers, agriculture engineers Management - Mayrouba- April 15 th 2016 Kessrwan

Apple Winter - Mayrouba April 15 th , 2016 1 33 4 Pome Fruit farmers, agriculture engineers Pruning Kesserwan Apple - Mejdel El May 31 st 2016 Summer 1 26 1 Pome Fruit farmers, agriculture engineers Meouch Choud Pruning IPM training June 6th, 2016 1 - Hadth El Jibbeh 35 0 Pome Fruit farmers, agriculture engineers on Apples Intensive - Zaarour Demo Pome Fruit farmers, agriculture engineers, June 30 th , 2016 Pome Fruit 1 23 4 Plot- Maten traders, exporters, input suppliers, Plantation

July 7 th , Introduce relevant -Jbaa-South

2016 parties in the apple -Za hle- Bekaa th value chain to new -Ainata - Bekaa August 4 trellis and intensive 3 2016 86 7 Pome Fruit farmers, agriculture engineers, production systems August 25 th input suppliers, traders. 2016 September 1 st , Training on using 1 -Hadath El Jibbeh - 2016 electrical pruning shears North 5 Farmers, agriculture engineers in Mar Semaan coop Hadath El Jebbe- North August 25 th , Training on using 1 -Ainata-Bekaa 2016 electrical pruning 5 Farmers shears in Ainata - Bekaa September 23 rd , Training on 1 Brih-Mount 2016 “Intensive Pome Lebanon Fruit Planting 29 5 Farmers System and Management”

Total 386 87

Stone Fruit - Avocado

STONE FRUIT - AVOCADO VALUE CHAIN UPGRADING STRATEGY – PRIORITIES OF THE WORK PLAN The LIVCD Stone Fruit - Avocado Value Chain Upgrading Strategy is focused around three axes of intervention, with the aims of 1) Increasing Exports to Select Markets; 2) Increasing Quantity and Improve Quality of Avocado Production; 3) Increasing Avocado Processing.

The LIVCD Work Plan (Year 2-4 and Life of Project) identified the following priorities for the Stone Fruit – Avocado Value Chain Upgrading Strategy:

Immediate/ short term priorities: Long term priorities: · Provide training on improved production · Increase production of varieties that have practices demand in high value markets · Increase production of existing orchards · Create a Lebanese avocado brand through investments in irrigation and

improved planting material · Facilitate linkages between producers, aggregators and exporters · Facilitate linkages between producers and input suppliers (identified in Year 1, 2 & 3)

SUMMARY OF YEAR 4 PROGRESS: ACHIEVEMENTS & CHALLENGES

LIVCD interventions in Year 4 focused on increasing production of commercial varieties of avocado demanded in the domestic and export markets (Hass, Fuerte, Ettinger, Lambhass, Pinkerton). To this end, LIVCD implemented a program of training and technical assistance to Lebanese avocado farmers, led by Lebanese Avocado and Harriri Foundation. Initial training sessions provided farmers with information about the different varieties of avocados, with an emphasis on recognizing premium varieties (Hass, Fuerte and Ettinger) that receive a higher price in the market. Many farmers grow more than one variety of avocado, and by sorting and identifying the premium varieties they can increase the value of their sales. During Year 4 LIVCD has developed a market strategy to raise awareness on avocado varieties in the end market, to retailers, wholesalers, producers, and nurseries and to respond to a growing local demand for Lebanese avocados. Implementing the market strategy in Year 4 & 5 will include educating consumers on the available varieties and their characteristics. At present avocados are mostly imported as local products are not available before early August. Strategy implementation has already started.

Training on avocado production

In Year 4, LIVCD has studied the feasibility to develop a new line of avocado oil and cosmetic products. LIVCD will conduct trials on avocado oil extraction especially for non –commercial varieties which are sold at low prices in the local market. Based on the technical team’s obser vation, most of the established avocado orchards encompass non –commercial varieties which do not maximize farmers’ income. Consequently, LIVCD is looking to reduce waste volumes related to grade 2 fruits and especially to grade 3 fruits and to find suitable alternative uses through which farmers can economically benefit.

LIVCD has signed a development agreement with the Al Moasat Association in order to train staff and university students from Saida and surrounding villages on different topics related to avocado, olive oil and honey. On February 10, the LIVCD project ’s South team in coordination with El Moasat Association organized the first training on avocado varieties, health and skin benefits, and soap production in Eyaa, Saida at El Moasat premises.

LIVCD, in collaboration with the Harriri Foundation (HF), has established a 10 dunum demo plot with different sections based on cultivation practices from standard cultivation to most intensive production model (more than 111 plants per dunum) under the grant “Develop Lebanese Avocado Production (DLAP)”. The goal of this activity was to improve the living and economic conditions of Lebanese avocado farmers by helping them to achieve sustainable and profitable returns from their avocado orchards. During the timeline of the project, HF’s nursery was also upgraded.This will allow them to provide technical support to farmers who are currently growing or interested to grow avocados. The project has served 140 avocado farmers to date through extension services, trainings and access to the demo plot and nursery. As part of its support to Bater and Menjez Cooperatives, LIVCD supported on the land preparation with the respective cooperatives according to avocado planting instructions. The farmers are preparing raised beds to establish a good drainage system to reduce incidence of root diseases as a result of water stagnation. Technical training were conducted for farmers willing to establish avocado orchards under the grant “Support Avocado Agricu lture in Menjez and Upgrade the Cooperative Services by Installing Modern Irrigation System and Providing Agricultural Equipment ” with the Menjez Cooperative. Training on production practices included topics covering orchard establishment, handling techniques and water management. Subsequent technical assistance helped the farmers to start the plantation and land preparation phases.

LIVCD signed a grant agreement with the NGO EMKAN for Sustainable Microfinance & Community Development (NGO) on July 1 st 2016, which will benefit 100 farmers in North Lebanon. The main objectives are to create vertical linkages between farmers and EMKAN through technical trainings and assistance in demo plots establishment, and to improve the productivity of avocado orchards through the use of 23 demonstration plots, training and technical assistance.

Avocado plantation in South Lebanon

LIVCD presented the exit strategy for the avocado value chain to the main stakeholders with the attendance of 112 farmers from South Lebanon in May 2016 in collaboration with the Chamber of Commerce in Saida. During the workshop, LIVCD launched the avocado training booklet and a short video on avocado best agricultural practices. The avocado booklet is a training and resource guide for farmers.

Year 4 Avocado Technical Assistance Provision Axis 1: Marketing Technical Assistance during Year 4 focused on Production; therefore there are no Technical Assistance Provisions under Marketing on which to report during this period. Axis 2: Aggregation Technical Assistance during Year 4 focused on Production; therefore there are no Technical Assistance provisions under Aggregation on which to report during this period.

Axis 3: Production

Technical Assistance TA # Date Description

Avocado Production Technical Assistance TA-0114 1/16/2014- Subcontract: Training to farmers is provided by subcontractor Lebanese Avocado in Program for Avocado Farmers 9/30/2015 order to improve the quality of avocados to improve to meet market demand and market expectations and to improve consistency in avocados produced. Although this subcontract ended Sept 30 2015, Lebanese Avocado continued to work with growers providing technical expertise on an ongoing basis. Promoting Improved Avocado Planting TA-0050 2/17/2014- LIVCD Staff: This technical assistance provides Lebanese avocado farmers who are Material and Linkages to Input Supplier 1 9/30/2017 planting-or regenerating existing-avocado orchards with access to improved planting material through a discount provided by Brokaw Nursery. Farmers purchase and plant improved planting material (certified, market-demanded varieties of avocado), while successful linkages are created between farmers and input. and suppliers increase volume of production of market-demanded varieties Linkage facilitation, product development TA- 0115 Development agreement with Al Moasat Association: Training of trainers and provision and production improvement of training for 60 women on the use of avocado oil, olive oil and honey for the production of natural home –made products such as soaps and other cosmetic products.

Year 4 Avocado Grants Axis 1 Marketing:

Grant USD Grant Title Purpose Status Grantee Date Number Value

Increase sale of fresh G- The grant aims to design and rebrand an upgraded LIVCD received KARMA 9/28/2015- fruits (cherry, grape, LIVCD- modern attractive labeling and invest in a new mold USAID approval on Lebanon In-Kind 9/28/2016 apple, and avocado) in 121 to produce innovative packaging, as well as to this grant on SAL Grant

51 export markets develop a new interactive website to facilitate September 2, 2015. through Branding, reaching out to potential new distributors, retailers, Procurement is Repackaging, Market and consumers, in export markets and a currently ongoing to support and Technical promotional corporate video, showcasing the identify an agency production, packing, and transportation process, to that to implement potential customers. the rebranding process in first It will also develop and implement a promotional quarter year 5. campaign in targeted points of sales in export markets. The campaign will include tasting events, product presentation to consumers by promoters, in store visibility, and will result in increased sales of Lebanese fresh fruits in export markets. Finally, it will provide technical assistance and training to 16 fresh fruit producers in good agriculture production techniques, including harvesting and post-harvest techniques to ensure consistently high quality products. The proj ect will also ensure that farmers are updated with consumers’ feedback and information on products’ sales, best sellers, varieties, prices, and other relevant and valuable market information in order to guide their production practices Atayeb Al Rif will implement relevant training on legal and financial management to improve operations and access existing services and benefits provided by the public and private sector. It will also support the coops to apply guidelines and standards related to markets such as trademark registration, creating barcodes, VAT and other issues.

Axis 2: Aggregation Grants performed during Year 4 focused on Marketing and Production, therefore there are no grants under Aggregation on which to report for this period.

Axis 3: Production

Grant USD Grant Title Purpose Status Grantee Date Number Value

Develop Lebanese G-LIVCD- The project will establish an avocado demonstration plot, This grant has Hariri 3/19/2015- Avocado Production 084 and provide technical support and training to farmers. It ended Foundation In-Kind 2/19/2016 (DLAP) G-LIVCD- will also upgrade the HFSHD nursery and provide ToT Grant 085 for HFSHD agricultural engineers to build their capacity to provide technical support to farmers. It will also build Simplified the avocado directory and organization of avocado Grant stakeholders Upgrade the G-LIVCD- The project aims to improved livelihood for 100 avocado This grant is Emkan for 07/01/2016- Avocado Value 182 farmers through investing in avocado plantations to have on going Microcredit and In-Kind 06/01/2017 Chain in Akkar G- LIVCD- better income within 5 years. During the timeline of the Sustainable Grant 183 project, LIVCD will establish 23 dn of avocado orchards Social as demo plots in the area and provide avocado Development Simplified production technical assistance to improve agricultural Grant practices, irrigation skills and water management. In addition, EMKAN will establish a vertical linkage between input suppliers and farmers, as well as local and international market.

Introduction of G-LIVCD- The project will introduce avocado production in Bater This grant is General 01/21/2016- avocado VC in Bater 138 and neighboring village and increase know-how by on going Agricultural In-Kind 01/20/2017 and neighboring G- LIVCD- providing technical assistance to 120 avocado growers Cooperative Grant villages 139 covering topics related to avocado production, irrigation Association in skills and water management Bater Simplified Grant Support avocado G-LIVCD- The project will introduce avocado production in Menjez This grant is Agricultural 12/18/2015- agriculture in Menjez 135 and neighboring village and increase know-how by on going Cooperative In-Kind 03/31/2017 and upgrade the G- LIVCD- providing technical assistance to 100 avocado growers Association in Grant cooperative services 136 covering topics related to avocado production, irrigation Menjez by installing modern skills and water management Simplified irrigation system and Grant providing agricultural

53 equipment

Year 4 Avocado Training Provision Axis 2: Aggregation

# of # of Training Purpose Training Locations Date Description Attendees s Held

Training on the importance of 1 Jounieh 10 06/08/2016 Training: Provided women who are working in the field of avocado on health and skin cosmetics with information on the importance of avocado in food and cosmetic products, highlighting the nutritional value of avocado on health and skin. Launching the booklet and 1 Sidon 112 05/04/2016 Public outreach: Highlighting on the project’s achievements in presenting the avocado the Avocado Value chain and the avocado exit strategy strategy for the coming years

Axis 3: Production

# of # of Training Purpose Training Locations Date Description Attendees s Held

Training on Avocado Practical 1 Majed el 20 10/31/2015 Training: Presented avocado irrigation and fertilization Irrigation and fertilization Maouch techniques Training on Avocado Orchard 1 Zahrani 20 3/12/2015 Training: Post Training on Avocado Orchard Management for Management Emkan and RMF Engineers. Training on Avocado Varieties, 1 Menjez 5 3/30/2016 Training: Provided students with knowledge on avocado Rootstocks and Agricultural varieties and rootstocks and train them on good agricultural

Practices practices. Training on Avocado Orchard 4 Bater 20 6/20/2016 Training: Presented avocado orchard establishment and Establishment and Selecting selecting avocado varieties Avocado Varieties Sidon 7 3/23/2016 Zahrani 20 3/12/2016 Zeita 17 11/27/2015 Training on avocado varieties 2 Minnyeh 5 12/30/2015 Training: Improved farmers’ knowledge on varieties and & orchard management rootstocks through training and to have ability to differentiate Edde 10 12/17/2015 between varieties.

Axis 4: Access to finance

# of # of Training Purpose Training Locations Date Description Attendees s Held

Increase knowledge for staff 2 Beirut 60 5/12/20165/0 Everything you need to know to fund farmers- Avocado, responsible of the access to 5/20166 Honey and Acccess to finance (BLC Bank staff). Following the finance within the Bank on training the bank staff are more aware of the agricultural needs agricultural need and used for orchard establishment in order to accept a loan. establishment of orchards

Stone Fruit - Cherry STONE FRUIT - CHERRY VALUE CHAIN UPGRADING STRATEGY – PRIORITIES OF THE WORK PLAN The LIVCD Stone Fruit - Cherry Value Chain Upgrading Strategy is focused around three axes of intervention, with the aims of 1) Increasing Exports; 2) Increasing Efficiency of Sorting, Packing, Cooling and Processing Facilities; 3) Increasing Quantity and Quality of Cherry Production in Lebanon. The LIVCD Work Plan (Year 1-4 and Life of Project) identified the following priorities for the Stone Fruit - Cherry Value Chain Upgrading Strategy:

Immediate/ short term priorities: Long term priorities: · Provide training on improved production and · Increase production of varieties that have post-harvest handling practices demand in high value markets · Improve production of existing orchards · Facilitate investment for cold storage facilities through investments and introducing new · Facilitate investment of new orchards varieties duplicating newly applied techniques in the · Introduction of new technology for cold demonstration plots storage facilities

SUMMARY OF YEAR 4 PROGRESS: ACHIEVEMENTS AND CHALLENGES

LIVCD activities this year focused on increasing the productivity of cherry orchards, to increase the volume of cherry produced and sold, and farmer revenues. LIVCD has assisted two private companies to upgrade their extension services in order to provide the farmers with additional on-farm extension and monitoring services. During the reporting period, LIVCD has assisted farmers with the collaboration of Liban Village and Agripharm’s extension engineers and experts. Engineer s visited several orchards in Hammana, Wadi el Karem, Kfertay, kfareaab and Caza Bcharre to assist farmers in pruning and best techniques on disinfecting the pruning shears, pruning diseased trees last, using sharp shears to make cleaner cuts, and allowing the trees to heal faster. Technical recommendations were given relating to winter treatments with copper and mineral oil to control and prevent canker disease as well as aphids, spider mite, scale insects and many other insects. LIVCD, in collaboration with Agripharm SARL, provided technical assistance to 100 cherry growers to improve agricultural practices as it relates to production, water management, harvest and post-harvest practices and pruning in the Caza of Bcharre. As a result of this extension service delivery Agripharm expanded its sphere of business. In addition, the professional services delivered to farmers by trained technicians reduced the farmers’ production costs by approximately 10 %. Agripharm delivered extension services to 110 farmers during the timeline of the project and for the first time these farmers paid for this service which was provided by six trained pruning and spray technicians (6 jobs impacted).

LIVCD drafted 14 multilateral agreements between farmers, Liban Village Cold Store (implementing partner) and two service centers – EMKAN and Agripharm – to establish a demo plot for intensive and conventional cherry production. The main aim is to integrate a new cultivar in to the cherry value chain and to develop new varieties. Farmers are very enthusiastic to participate in this activity under the technical supervision of Liban Village Cold Store. Each demo plot will be used to train farmers on orchard establishment and training (raising) cherry orchards. Liban Village is conducting a series of trainings in the demo plot, and till now Liban Village has reached 123 cherry farmers and trained them as first step on orchard establishment.

As part of its activity ”Promotional activities and materials for Lebanese cherries in domestic market”, LIVCD supported the yearly national one-day fair, the Hammana Cherry Festival, promoting cherry production in the Hammana area. During this event, LIVCD provided three tents to display Hammana farmers’ production. The festival also included eco -activities such as cherry picking, hiking and rock climbing and a range of family activities. The Hammana promotional program complements LIVCD technical support through provision of extension services. As a result of increased visibility, the growers have the opportunity at such an event to sell more cherries at higher prices. Farmers have been receiving technical assistance and training for two consecutive years. The training sessions primarily covered good agricultural practices to increase and enhance production.

LIVCD in collaboration with the private company “Shapash” is implementing a pilot project where a controlled atmosphere storage facility for cherries will be installed to increase shelf life and upgrade the whole value chain. The cold storage facility will be used as a demo plot for other cold storage facilities to adopt this new technology and thus this project is intended to upgrade the competitiveness of the cherry value chain across the country. The first phase of implementation is completed. The facility is totally rehabilitated and is ready to receive during the next quarter the equipment needed for the controlled atmosphere system on completion of the LIVCD procurement process.

Cherries displayed in the cherry festival in Hammana Cherry demoplot in Bcharri

Year 4 Cherry Technical Assistance Provision Axis 1: Marketing Technical Assistance during Year 4 focused on Production; therefore there are no Technical Assistance provisions under Marketing on which to report for this period. Axis 2: Aggregation Technical Assistance during Year 4 focused on Production; therefore there are no Technical Assistance provisions under Aggregation on which to report for this period. Axis 3: Production

# of # of Technical Assistance TA # Trainings Locations Date Description Attendees Held

Implementation of TA- 35 Baskinta, 332 1/15/2015- Sub contract: Through Liban Village, LIVCD Trainings and Technical 0113 Hammana, Jdita, 1/15/2016 provided equipment essential for water Assista nce for Farmers in Kaah el Rim, management and improving pruning the Cherries Value Chain Qaa el Rim, techniques to cherry farmers. The project Work Plan” Ferzol, also conducted training for farmers on the KfarZabad, Ain following topics: Orchard establishment, Kfarzabad, fertilization and fertigation, irrigation Qoussaya, Raiit techniques, integrated pest management, harvesting options and farm management and record keeping.

Year 3 Cherry Grants Axis 1: Marketing Grants performed during Year 4 were focused on Aggregation and Production; therefore there are no grants under Marketing on which to report for this period.

Axis 2: Aggregation

Grant USD Grant Title Purpose Status Grantee Date Number Value

Increase sales of G-LIVCD- The grant will design and rebrand an LIVCD received KARMA 9/28/2015- fresh fruits (cherry, 121 upgraded modern and attractive USAID approval on Lebanon SAL In-Kind 9/28/2016 grape, apple, and labeling and invest in a new mold to this grant on Grant avocado) in export produce innovative packaging, as well September 2, 2015. markets through as develop a new interactive website Procurement is Branding, to facilitate reaching out to potential currently ongoing to Repackaging, new distributors, retailers, and identify an agency Marketing support, consumers, in export markets and a that will implement Technical a promotional corporate video, the rebranding showcasing the production, packing, process in the and transportation process, to coming weeks. potential customers. It will also develop and implement a promotional campaign in targeted points of sales in export markets. The campaign will include tasting events, product presentation to consumers by promoters, and in store visibility, and will result in increased sales of Lebanese fresh fruits in export markets. Finally, it will provide technical assistance and training to 16 fresh fruit producers in good agriculture production techniques, including harvesting and post-harvest techniques to ensure consistently high quality products. The project will also ensure that farmers are updated with consumers’ feedback and information on

products’ sales, best sellers, varieties, prices, and other relevant and valuable market information in order to guide their production practices Atayeb Al Rif will implement relevant training on legal and financial management to improve operations and access existing services and benefits provided by the public and private sector. It will also support the coops to apply guidelines and standards related to markets such as trademark registration, creating barcodes, VAT and other issues. Create a pilot G- LIVCD - The project aims to introduce new This grant is on- Shapash 7/20/2016 controlled 199 cold storage facility with controlled going s.a.r.l Simplified -1/19/2017 atmosphere storage atmosphere pallets to increase grant facility for cherries cherries ‘shelf life by 4 to 6 weeks. In to increase shelf life addition to that, LIVCD will facilitate and upgrade the the linkages between Shapash, 14 whole value chain cold storage facilities and more than 50 farmers trained and supervised by Agripharm. This will positively affect the farmers’ income by creating the possibility to open high end markets

Axis 3: Production

Grant USD Grant Title Purpose Status Grantee Date Number Value

Upgrade the Cherry G-LIVCD- This project is intended to answer This grant is on- Agripharm 9/23/20

Value Chain in Caza 127 farmers’ needs through procuring and going. S.A.R.L. In-Kind 15- Bcharre and its G-LIVCD- purchasing of equipment in order to Grant 9/23/20 surroundings. 128, decrease the rental fees for the 16 farmers, developing a technical team Simplified with trained personnel to conduct Grant activities such as pruning and spraying, train 100 farmers on best agricultural practices and introducing new technology to smallholder farmers, and introducing new cultivars under LIVCD’s guidance on rootstock and varieties. Stimulate investment G-LIVCD This project aims to facilitate business This grant is on-going Liban Village In 5/17/20 in new varieties of 180 linkages between farmers and Liban Cold Store Kind Grant 16- cherry cultivars, G-LIVCD Village through technical trainings and S.A.L 3/17/20 through a partnership 181 assistance in demo plots Simplified 17 with Liban Village establishment. This project is intended grant Cold Store S.A.L also to answer farmers’ needs through improving productivity of cherry orchards through the use of 12 demonstration plots, training and technical assistance targeting 300 farmers

Year 4 Cherry Training Provision Axis 1: Marketing

# of # of Traini Training Purpose Locatio Attend Date Description ngs ns ees Held

Workshop on Market 1 Beirut 60 12/15/20 Public outreach: Dissemination workshop for the study conducted Survey of Fresh Fruit

Exporting to UAE and 15 on Fresh fruits requirement to UAE and KSA. KSA

Axis 2: Aggregation

# of # of Traini Training Purpose Locatio Attend Date Description ngs ns ees Held

Improved technology in 1 Bcharre 45 7/20/201 Public outreach: The event has gathered different input suppliers, the Cherry VC, Sharing 6 agricultural engineers from the ministry and NGOs such as Rene success stories Mouwad Foundation and EMKAN, aggregators and exporters. The attendees have shared different experiences in the Cherry VC. Some of the farmers have shared success stories of application of new technologies which help to improve their production.

Axis 3: Production

# of # of Traini Training Purpose Locatio Attend Date Description ngs ns ees Held

Orchard establishment 4 Mreste 39 9/4/2016 Training: Liban Village is training farmers on orchard establishment el Shouf and selection of varieties and rootstocks according to the agro- climatic conditions of each region. Fneydek 23 7/22/201 6 Faqra 16 7/28/201 6 Qaa 45 7/30/201

6 ToT on spraying 1 Bcharre 4 4/22/201 Training: a training for the young guys that should work with 6 Agripharm on the spraying and the use of the tractor and spraying tanks were done in the Agripharm office and a practical trial of the machines

Fertilization and post- 4 Bekaakaf 6 4/28/201 Training: increasing the knowledge of cherry farmers on new harvest practices ra 6 technologies used as foliar fertilization in the cherry production and the post-harvest practices that must be applied in order to reach Bane 9 6/6/2016 good agricultural practices Ainata El 18 6/9/2016 Arz Bekaakaf 9 6/22/201 ra 6

Irrigation techniques and 1 Dimane 6 6/23/201 Training: the farmers will be aware of the irrigation techniques used setup 6 in the cherry production, as monitoring and controlling the amount of water used Good Agricultural 3 Hasroun 11 3/8/2016 Training: This training created opportunities for small and medium practices cherry farmers to sell their products in high value markets, to insure Qnat 10 3/5/2016 compliance with good agricultural practices, and to save the existing Bane 10 3/5/2016 cherry trees in the orchards. Pruning techniques 14 Bcharre 12 12/11/20 Training: This training aimed to educate the cherry farmers on how 15 to prune the trees in order to improve the cherry productivity and keep healthy trees. Wadi el 25 11/20/20 Karm 15 Rachaya 40 11/19/20 15 Kherbet 46 11/18/20 Rouha 15

Qaa el 25 11/13/20 rim 15 Zahle- 20 11/13/20 Maalaka 15 Ferzol 20 11/12/20 15 Kousaya 20 11/12/20 15 Bcharre 13 10/29/20 15 Zahle 25 10/23/20 15 Becharr 30 02/25/20 Training: in the presence of that represented the BLC Land preparation and e 16 Bank and explained for the farmers how to get subsidies loans from Feasibility study of 1 kafalat (many farmers were interested in the topic and continued Cherries with the Agripharm’s staff to precede for loans).

Axis 4: Access to finance

# of # of Traini Locatio Training Purpose Attend Date Description ngs ns ees Held

Increase knowledge for 2 Beirut 60 05/11/2 Everything you need to know to fund farmers- Avocado, Honey and staff responsible of the 016 Access to finance (BLC Bank staff). The BLC staff is aware of the access to finance within agricultural needs used for orchard establishment in order to accept the Bank on agricultural 05/06/2 a loan. need and establishment of 016

64 orchards

Grapes

GRAPES VALUE CHAIN UPGRADING STRATEGY – PRIORITIES OF THE WORK PLAN

The LIVCD Grapes Value Chain Upgrading Strategy is focused around three axes of intervention, with the aims of 1) Supporting producers to enter high value markets through better understanding of markets, availability of new grape varieties, and creating new market opportunities; 2) Improving aggregation and storage; and 3) Upgrading production, harvest, and post-harvest practices. The LIVCD Work Plan (Year 1-4 and Life of Project) identified the following priorities for the Grapes Value Chain Upgrading Strategy:

Immediate/ short term priorities: Long term priorities: · Share with farmers and exporters knowledge · Create lasting linkages between grape gained from a 2015 market study, through a farmers and local and international markets booklet, seminars, and workshops · Develop sustainable linkages between · Provide training on cold storage and support producers and processors to upgrades of cold storage facilities · Using leveraged investments and support to · Facilitate leveraged investments in new access finance, assist farmers in acquiring production technology equipment through input suppliers that will improve post-harvest facilities

SUMMARY of PROGRESS: ACHIEVEMENTS and CHALLENGES

During year four, the table grapes value chain was successful in demonstrating new production technologies that show how farmers and exporters can substantially increase the income they derive from the production and marketing of high quality table grapes. The focus was on modern production techniques and on upgrading drip irrigation systems in existing grape orchards for traditional and new grape varieties, and on the introduction of the electrostatic spraying technology as an innovative and environmentally friendly technique to optimize crop production and quality. This was supported by efforts to upgrade the cold storage chain of fresh harvested grapes at the farm level. As such, one grant on cold storage was closed out and three other grants were awarded in year four:

· Awarded: Leveraged investment in electro static spraying equipment for the agricultural cooperative of Rachaya Al Fakhar and Khraibe (G-LIVCD-194, 17 June 2016 – 17 January 2017)

· Awarded: Leveraged investment in electro static spraying equipment for the cooperative association for fruit trees in the villages of Rachaya (G-LIVCD-177, 25 April-25 September 2016)

· Awarded: Upgrading irrigation system in existing and new grape farms, traditional and new varieties conducted on trellis and on goblets (G-LIVCD-200 and G-LIVCD-201, 15 September 2016 – 15 April 2017)

· Closed out: Investment to upgrade the grapes cold chain in Rachaya Al Fakhar and Khraibe (G-LIVCD-088, 29 April 2015-29 April 2016).

Moreover, 243 table grapes farmers received skills training through class sessions and hands-on farm-based field workshops on specific types of innovation to promote best production practices related to improved spray technology, canopy management and irrigation management. As a result, farmers were more likely to invest in the newly introduced technologies, build their business linkages and relationships with buyers in formal markets.

In addition, LIVCD value chain team organized two formal education workshops to farmers, agricultural engineers, packers and exporters; one with the Chamber of Commerce, Industry and Agriculture of Zahle (CCIAZ) and another with the Order of Engineers that were attended by 350 farmers, agricultural engineers, exporters and wholesalers.

LIVCD’s technical team performed 239 field visits to farmers’ plots throughout the year to provide hands-on training to help farmers diagnose and solve problems in real time. The table grapes value chain team also focused on issues related to increased access of farmers and MSMEs to credit to promote more investments and improve linkages between farmers and traders to improve more income in a sustainable way.

During the summer season, LIVCD’s technical team held 5 outreach visits that were attended by 55 stakeholders involved in table grapes production; the field visits were held in the newly established grapes trellises serving as grapes demo plots in the main regions for grapes production – Kfermechki, Ferzol, Terbol and Majdaloun. The objective of these visits was to train and educate grapes farmers and other grapes value chain stakeholders such as exporters, dealers, specialized chief of crews, agricultural engineers and the future grapes growers especially from Terbol and Majdaloun, on new grapes technologies and new production practices.

Main activities:

During the reporting year the following activities occurred under the grape value chain:

· The LIVCD grapes team approved four expressions of interest (EOIs) presented by agricultural service centers to acquire Electro Static Spraying (ESS) equipment that the service centers intend to rent to farmers. There were two active grants in year four on ESS technology, one with the agricultural cooperative of Rachaya Al Fakhar and Khraibe (G-LIVCD-194, 17 June 2016 – 17 January 2017) and another with the cooperative association for fruit trees in the villages of Rachaya (G-LIVCD-177, 25 April-25 September 2016). A request to extend the latter was sent to USAID for approval. Each of the two awarded grants was worth with 72.5% contribution from LIVCD and the rest as the grantee contribution. Both cooperatives have identified upgrading the spraying system as a priority for intervention as it helps farmers produce grapes of export quality. Specifically, the new spraying method will help farmers respond to market demand with respect to maximum residue levels (MRL) of pesticide on grapes and to required grape specifications in berry coloration, berry size and cluster weight. As a result, they have benefited from this new technology during the 2016 grapes growing season. In addition, there will be other two grants proposals on ESS technique that will be submitted for approval to USAID during the first quarter of year five, one with Arc-en-ciel service center and another with Natagri service center.

The aim of the electrostatic spraying activity is to increase productivity of grape orchards, by increasing production of high quality grapes sold at higher prices with lower production costs, which result in increasing revenues and income of farmers. Through training programs to farmers’ cooperatives and MSMEs during the current grape growing season, the use of Electrostatic Spraying (ESS) as an innovative production technology was conceived by farmers to increase and replace the traditional and inefficient spraying used for long time in local grapes farming system. The training sessions were carried out in different grapes plots with Debane Agri were an opportunity for farmers to compare it with the traditionally spraying application techniques showing the latter to be inefficient and costly that contribute to increasing the production with no effect on yield and income. The LIVCD role in facilitating leveraged investments in modern equipment and technologies to upgrade production capabilities, leveraged investments with input supplies and support access to finance would enable farmers acquiring equipment through input suppliers to improve production.

A view of manual (right) and motor-powered (left) electrostatic spraying technology in table grapes orchards in Fayda area (Zahle)

· LIVCD and the Chamber of Commerce, Industry, and Agriculture of Zahle and Bekaa (CCIAZ) signed a grant on “Upgrading irrigation systems in existing and new grapes’ farms, traditional and varieties conducted on trellis or on goblets”. LIVCD’s committed funds are and CCIAZ’s cost share is . The grant duration is seven months following the signature date (15 September 2016) and it is expected that about 130 grapes farmers from different production clusters across the Bekaa region will commit to improving their irrigation systems in the field, which will enable them to improve production and increase sales. In addition, during the grant implementation period the LIVCD team along with CCIAZ engineers will undertake a farmer’s technical assistance program to better introduce the advantages of drip irrigation on grapes productivity, and the sensitivity of the introduced varieties to water stress during extended dry periods. The objectives of this activity are (i) increase grapes' productivity per parcel of land by improving the design and efficiency of drip irrigation systems in existing table grapes orchards; (ii) reduce the production cost of Lebanese table grapes by improving water and nutrient management practices, (iii) disseminate the concept of localized irrigation in table grapes orchards among a large group of table grapes farmers as an alternative to the widely practiced flood irrigation, (iv) increase rural income through increased sales to higher value local and international markets, (v) increase gross margin through increased productivity and (vi) create business

linkages between table grapes’ farmers and irrigation input suppliers that aim at increasing the area served by drip irrigation across the Bekaa Valley in particular and Lebanon in general, allowing farmers in the same time applying the newest watering technologies in their fields at competitive investments.

A view of drip-irrigated table grapes orchard in Majdaloun (North Bekaa)

· LIVCD awarded a grant to the Agricultural Cooperative Association for the Production, Processing and Marketing of Grapes and Olives in Rachaya Al Foukhar and Khraibe (G- LIVCD-088, 29 April 2015-29 April 2016). The grant is worth with 71% contribution from LIVCD and the rest as the grantee contribution. This activity has the goal to ensure that table grapes farmers in Rachaya Al Foukhar and Khraibe are offered the highest possible wholesale price to maximize their return on investment by preserving the quality of the grapes reaching the market by maintaining the cold chain through introduction of new technologies and access to cold room and refrigerated truck services. During the current 2016 growing season, 40 grapes farmers, 12 packing employees, 15 harvesting workers, and 1 MSME benefited from this important activity.

LIVCD established a climate-controlled packaging room to sort and pack grapes in a suitable environment that preserves the quality of the grapes and contributes to a better shelf life. LIVCD will support with the equipment needed for cooling and sorting the products before sending to the market. The project also provided a refrigerated truck to transport the packaged grapes from the climate-controlled packaging room to the market. The refrigerated truck maintains the quality of the grapes that are transported in the hot season for over two hours from the region of Rachaya Al Fakhar which is one of the most remote regions in south east Lebanon to main market outlets in Beirut and central Bekaa. The cooperative will purchase a cab and chassis (does not include a refrigerated box mounted on the chassis), and LIVCD will complement it with a refrigerated box.

In parallel, LIVCD Implement capacity building activities for the farmers and the cooperative on best harvest and post-harvest practices including time of harvesting, field collection methods, transportation from field to packing area, sorting and packing in a temperature controlled room, and then transporting to the market using a refrigerated truck. Packaging workers will be trained on Food Safety Practices through GMP training.

A view of the mobile fridge-truck discharging fresh harvested grapes at the cold storage facility of Rachaya Al Foukhar and Khraibe cooperative

· Farmers’ skills training, formal workshops and outreach visits to farmers’ plots.

During year four, the LIVCD team carried out a series of trainings on different topics and undertook regular visits to farmers’ plots to help MSMEs and farmers improving the own skills. MSMEs and farmers that received training through farm-based education programs have been found more likely to invest in new technologies, build their market linkages, and improve their production and incomes in a more sustainable manner. Fifteen field training sessions attended by 250 table grapes farmers were organized by the table grapes value chain during the course of year. Examples of the training programs include canopy management, tree shaping and pruning, water management using soil sensing techniques, physical fruit protection and post-harvest techniques. The training was aimed to help table grapes farmers in selected grape production clusters across the Bekaa improve their competitiveness within a market chain or business model process, with focus on farmer organization and on improving the management skills of existing production structures. On the other hand, the training was targeted to introduce a business culture to farmers, and to accelerate the use of business-oriented training for the range of farmers in the more vulnerable farming communities with limited assets. During the various training sessions, LIVCD team stressed the importance of farmer organization in market linkage and the role of cooperative support within the value chain.

Grape Orchard management in Kfarmichki (West Bekaa)

Moreover, LIVCD table grapes team organized during the current reporting year two formal farmers’ workshops, the first with the Chamber of Commerce, Industry and Agriculture of Zahle (CCIAZ) titled Grapes Water Management, on 21 January 2016, to which they took part 180 farmers, and the second with the Order of Engineers on 23 April 2016 on Table Grapes Local and Export market, Grapes production, harvest and post- harvest practices. Grapes Financial plan. 175 agricultural engineers and Grapes Value Chain Table grapes farmers attending the LIVCD workshop on stakeholders from different production areas irrigation at CCIAZ attended this workshop.

The workshops drew together participants from different agricultural communities, along with agricultural engineers and extensionits. They formed an integral part of the LIVCD farmer education program that aims at improving the skills of the Lebanese grapes farmers. In addition, the workshops offered an opportunity to share knowledge and experiences and, more specifically, (i) to share experiences and approaches in developing and encouraging the adoption of appropriate Table grapes farmers attending the LIVCD workshop on best technologies for particular farming systems; (ii) production practices of the Order of Engineers in Zahle. improve understanding of the sustainability of farming systems and technology, particularly in the context of future demand for agricultural products and the role of markets in stimulating adoption of appropriate technologies that can improve sustainability at the farm level.

In addition, outreach visits were conducted to the LIVCD established table grapes demonstration plots (in total 48 plots) in different production clusters to train and An outreach visit to red globe orchard in Majdaloun (North educate farmers and other agricultural users Bekaa) on new grape production technologies and diagnose with farmers the new marketable grape varieties under Lebanon’s diverse soils and microclimates. The visits to farmers plots s also are intended to solve problems assigned to specific management areas and

71 provide the needed advisory. Due to the high number of farmers, the visits were organized in such a way to cover the different production areas and provide the needed advice to farmers.

The table grapes value chain team in collaboration with the ‘Access to Finance’ cross -cutting component organized two training sessions to MSMEs and farmers’ target groups on ‘Grapes Trellis Establishment & Cultural Practices: Marketing and Financial Planning’. The training was attended by a group of 49 farmers and was organized in presence of representatives of financial institutions, including MFIs. The training was held at the premises of the Lebanese Bank of Commerce (BLC) at Achrafieh on 6 and 11 May 2016 and included select production options, review business services and access to credit.

In addition, LIVCD team supported financial planning for new established grapes orchards, consequently 3 farmers wanting to invest in new grapes varieties succeeded to secure loans from BLC Bank during year 4.

Axis 3: Production

# of # of Training Purpose Trainings Date Description Locations Attendees Held

Training on Grapes 3 Bednayel 38 10/28/2015 Training: Taught grape farmers Tree Shape and Pruning Principles and Pruning and introduced the concept of Haouch El Rafka 26 10/29/2015 Practices agricultural intensification Rachaya El Wady 24 2/12/2016

Training on Grapes 4 Niha 30 5/5/2016 Training: Taught vigor management, shoot Canopy and Crop selection and thinning, shoot positioning, Management Terbol 15 5/25/2016 summer pruning and hedging, selective leaf Kfarmichki 30 6/1/2016 thinning, and bunch thinning

Ferzol 16 6/16/2016

Training on Grapes 1 Btedii- Deir El 15 4/23/2015 Training: The main topics addressed during the Water Management Ahmar training focused on Grapes Water Management, helping farmers and agricultural engineers better planning water resources and scheduling irrigation

Workshop on Grape 1 CCIAZ 177 Trained farmers on proper water management water management and its Impact on Grape 1/21/2016 sector. Grape feasibility Study

Workshop on Grapes 1 Order of 180 Shared with agricultural engineers and other Value Chain Engineers - Zahle 4/23/2016 stakeholders LIVCD’s activities in the table grapes sector and the activities undertaken to

mitigate the identified challenges.

Trainings of bank loan 2 BLC bank 29 5/6/2016 officers on Grapes premises at Trained loan officers on economics of grapes Trellis Establishment, Achrafieh Sassine production of various table grapes varieties using Cultural Practices, BLC bank 20 5/11/2016 modern techniques. Marketing and Financial Planning premises at Achrafieh Sassine

Seminar to introduce 1 Chtaura- Seminar: Introduce the usage of Electro Static Electro Static Sprayers Debbane Freres Sprayers on the crops instead of the traditional sprayers. Demonstrations at Joseph & Emile Abdo Skaf Society in table grapes orchards in Fayda - Zahle

Challenges and mitigation of these challenges:

The unstable political situation in the country and the continuing closure of borders as a result of the war in Syria limit the possibilities of accessing export markets.

Smallholder farmers and their cooperatives require considerable investment to support cold storage facilities to sell the produces at better prices. As a result, a critical area of challenges lies in the ability to shift from a focus on production to a greater focus on marketing, business, and financial services. These challenges can be mitigated by helping farmers invest in business opportunities.

Despite success in the training and technical assistance initiative, the main challenge remains for LIVCD program to effectively link farmers to service providers. In year 5 LIVCD grapes team will continue to work with service providers for improved commercial engagement with farmers willing to invest under the RFA for input supplier support to be introduced in the upcoming quarter.

Olive Oil

OLIVE OIL VALUE CHAIN UPGRADING STRATEGY – PRIORITIES OF THE WORK PLAN The LIVCD Olive Oil Value Chain Upgrading Strategy is focused around three axes of intervention, with the aims of 1) Creating new market incentives favoring Lebanese olive oil through the use of a seal of quality and origin; 2) Facilitating increased investments and improvements in quality of olive oil through improved standardization of olive milling and storage; 3) Improving Olive Orchard Productivity. The LIVCD Work Plan (Year 1-2-3-4 and Life of Project) identified the following priorities for the Olive Oil Value Chain Upgrading Strategy:

Immediate/ short term priorities: Long term priorities:

· Gather market intelligence and analysis of · Facilitate investments at the milling and key target markets for exports storage level to upgrade processing facilities · Design promotional support to be offered and improve the quality of oil produced and a marketing strategy to increase olive oil · Increase olive orchard productivity utilizing exports training and technical assistance through the · Survey and upgrade quality focused olive establishment of service production centers mills and storage centers

SUMMARY OF PROGRESS YEAR 4: ACHIEVEMENTS AND CHALLENGES LIVCD’s olive oil value chain assistance aims to support and work at all levels of the value chain and has provided technical assistance and grant support on the three levels of olive oil production – at the orchard level, the processing and storage level, and the marketing level. Orchard level – Work plan axis 3

At the beginning of year 4, LIVCD replicated the mechanical harvesting program in season 2015-2016 all over Lebanon with 28 local agricultural cooperatives/associations with the objective to increase the competitiveness of olive farmers and provide a sustainable revenue generating program for the implementing partners - increasing competitiveness of olive oil growers by decreasing cost of production through improved harvesting practices and capacity building of cooperatives and farmers. The following results were achieved during the implementation of the program: A capacity building program was conducted by LIVCD, to the cooperatives heads and managers including 87 attendees and a training on improved technology to the operators and farmers including 543 attendees.

The cost of harvested olives decreased by 43%, it fell from $0.40/kg to $0.23/kg and the farmers saved $0.17/kg of olives harvested. The Mechanical Harvesting Program

A total of 440,928 $ was saved in cost while harvesting 2,631,920 kg of olives. The cooperatives generated , income, while renting 166 mechanical harvesters to 1,525 olive farmers for over 30 working days during the harvest season. Out of the 1,525 beneficiaries, 285 were women and 87 jobs were created.

As sustainability of technical interventions is a key objective of the LIVCD project, the LIVCD team monitored 15 cooperatives that benefited from the previous mechanical harvesting programs (years 2013 and 2014) where they operated the machines by themselves and achieved the following results: 548 farmers saved in cost a total of $130,192 while harvesting 810,680kg kg of olives, with an income generated by the cooperatives of .

Additionally, around 70 mechanical harvesters were independently purchased by farmers/associations this year. Plastic Crates to preserve olive fruits Following the success of previous mechanical harvesting program grants, LIVCD received approval for a further 11 mechanical harvesting grants in September 2016. This new program is expected to reach an estimated 400 farmers in 20 olive growing villages, in the cazas of Chouf, Saida, Chebaa, Akkar and Batroun. LIVCD also received approval for the grant to Tripoli Cooperative titled “Assisting Agricultural Service Center to develop the Olive Oil Sector in Tripoli regions”.

LIVCD organized on September 28th, 2016 the first training activity under the “Capacity Building for the Mechanical Harvesting Program (2016-2017).” The event took place in Majdel Al Maouch Municipality Linkage between farmers and suppliers (Mount Lebanon), where six cooperatives from the South and Mount Lebanon attended. LIVCD also distributed to one of the grantees under the Mechanical Harvesting Program (2016-2017), 6 mechanical harvesting bundles (5 LIVCD cost share and 1 grantee cost share) to Hajjeh Cooperative in Saida Caza (South).

LIVCD also distributed to JAZ SAL 5 mechanical harvesting bundles (LIVCD full cost share) as part of their approved grant: “Assisting Agricultural Service Center to develop the Olive Oil Sector in Jezzine and Zahrani”.

A series of events, trainings and workshops were held all over Lebanon on the improvement of olive and olive oil production through the introduction of improved technologies. The individual trainings are listed in a table at the end of this section.

Integrated Pest Management Training LIVCD training on new pruning techniques In addition to the above trainings, a series of technical assistance was also conducted by the olive oil LIVCD technical team to assist the farmers in the improvement of the olive orchard productivity and olive oil quality.

Communicating the impact of LIVCDs work, Future TV hosted the LIVCD olive oil Value Chain Leader, Roland Andary, on March 15th, 2016, where he focused on the work of LIVCD in the olive oil sector and the overall positive impact of the mechanical harvesting program. Processing and storage level – Work plan axis 2 Through grants assistance, during year 4 LIVCD completed the following activities: LIVCD closed the grant “Improving the olive oil sector in Hasbaya through upgrading olive mill equipment and processing standards - Fouad Mohamad Zouweihid Mill (Al Rachid Modern Mill)” where 271 farmers benefited from milling services. The mill received 262,503 kg of olives and extracted 59,421 kg of Olive Oil (~3,961 tins) with an average extraction rate of 22.6%. At the end of Olive Oil Separator (LIVCD grant cost share) the season, the mill’s income was around 39,000,000 L.L. The mill purchased from 71 farmers a total of 506 tins of Olive Oil and stored a total of 639 tins. They also produced 80 tons of husk sold at ton).

LIVCD also closed the grant “G -LIVCD-038- Development of the Olive Oil Value Chain in Kobayat and Neighboring Villages in Akkar” where 515 farmers from 20 villages benefited from the milling services. The mill received 325,770 kg of olives and extracted 71,841kg of Olive Oil (~4,350 tins) with an average extraction rate of 22.05%. At the end of the season, the mill’s income was around 43,455,000 L.L.

Washing section Olive Reception

Ongoing grants under Axis 2: G-LIVCD-92/93:“Establishing a Comprehensive Olive Oil Service Center in Darbechtar” Darbechtar Cooperative, throughout the lifetime of the grant and with the coordination of LIVCD team, is undergoing all activities including olive fly trap monitoring, husk production, compost production and are preparing for the new olive harvesting and milling season. This center is fully operating.

Composting Husk manufacturing and bricks drying

On October 31st, 2015, a visit by USAID and the LIVCD team was held to Darbechtar region in order to observe and monitor the projects implemented in the Dabechtar cooperative. The visitors observed the mechanical harvesting process, the milling process, husk process, waste water storage, olive oil soap production process and were trained on olive oil organoleptic analysis (by smelling and tasting).

Olive Oil Tasting Olive Mechanical Harvesting

G-LIVCD-193: Quality Assurance and Quality Control of Lebanese Honey and Olive Oil by using Infrared spectroscopy – Currently in the procurement stage of a Fourier Transform near Infrared (FT-NIR) spectrometer – a machine for testing the composition of olive oil and honey. G-LIVCD-205: “Assisting Agricultural Service Center to develop the Olive Oil Sector in Jezzine and Zahrani” – Currently in the procurement stage and preparing for the harvesting season.

G-LIVCD-208: Develop a service center for Olive Oil Storage and Bottling in Bchennine and villages in Zgharta - Currently in the Procurement stage

A series of events, trainings and workshops were held all over Lebanon on the improvement of olive oil quality through the introduction of olive oil theoretical and practical organoleptic practices. The individual trainings are listed in a table at the end of this section.

Al Khalil Association Order of Engineers and Architects

Interactive Olive Oil Tasting Session with YMCA Olive Oil Value Chain Booth – Horeca 2016 80

Following LIVCD’s collaboration with LARI during the 2015-2016 olive season, a study was conducted on the "Influence of processing system and ripening on Lebanese olive oil quality". LIVCD partners provided several samples of olive fruits, olive oil and olive by-products to LARI (Darbechtar, Chadra, Kobayat and Bkarzla cooperatives). This study was published by USJ University where LIVCD and USAID were mentioned.

Samples from 3 different mills sent to LARI Labs

Following LIVCD’s collaboration with several Universities/Agriculture Research centers and more specifically LARI/the Saint-Joseph University (USJ) and USEK (Kaslik), three students presented their thesis under the supervision of LIVCD olive oil value chain team:. During the defense, the Olive Oil Value Chain Leader (Roland Andary) was invited to participate as one of the jury members: “Variety effect of maturity degree of olives and irrigation of olive orchards on the composition and oxidative stability of the Olive Oil” (by - Advisor: ) – LARI/USJ “Influence of origin, harvesting time and olive processing on Olive Oil quality” (by - Advisor: ) – LARI/USJ “Determining the optimal harvesting date of Olives, to acquire a high quality Extra Virgin Olive Oil in Lebanon” (by – Advisor: ) – USEK

Continuing LIVCD”s outreach efforts to educate wider audiences both about USAID’s work and the olive oil sector, Future TV and MTV hosted the LIVCD olive oil Value Chain Leader Roland Andary, on March 22nd, 2016, and April 23rd 2016 respectively, where he conducted in a live show an olive oil Quality Assessment and Evaluation through smelling and tasting (organoleptic test).

81 MTV – olive oil organoleptic analysis

Marketing level – Work plan axis 1 During Year 4, G-LIVCD-169 – “Support the participation of the Cooperative association for organic agriculture and olive production in Lebaa and neighboring villages (Olea) in HORECA Lebanon 2016 to increase sales of Extra Virgin Olive Oil for 6 Agricultural MSMEs from all over Lebanon” – was completed. Under this grant, the OLEA and the 5 cooperatives have achieved the following:

- After LIVCD support and assistance, Olea Cooperative started its first olive oil export with the brand name LELO to USA, where 1.4 tons of Extra Virgin Olive Oil were bottled in 4,000 bottles (250ml and 500ml) valued at . - More than 15,000 kg of olive oil was sold in the local market by the 6 LIVCD- supported MSMEs.

- LIVCD served as the sponsor of the National Olive Oil contest for more than 50 participants at the HORECA trade show.

- As a result of LIVCD ongoing support, won the first prize for the best Extra Virgin Olive Oil in two consecutive years in the Olive Oil National Contest – Horeca (2015 & 2016) for his own production.

LELO – brand name exported to the US

OLEA Cooperative (Grantee) at Horeca 2016

Following a request from the Ministry of Agriculture, LIVCD provided technical assistance and support to six private companies to attend the Qatar International Agricultural Exhibition (AGRITEQ), November 10th – 12th, 2015 in Doha.

Export and Sales: LIVCD had several interventions during Y4 aiming at increasing both Domestic and export sales. Indeed LIVCD continued its partnership with Willani to increase export of Lebanese Olive oil to the US market. The Olive oil value chain also strengthened its partnership with Nicolas Fares Mills who were able to increase their Domestic and US exports of Lebanese extra virgin Olive Oil. Based on successful grants implantation, Olea COOP and Al Rachid Mill were both able to sell for the first time in the Domestic Market. The Olive Oil Value Chain achieved a total of in export sales and in Doemstic Sales during Year 4 thus increasing Lebanese extra virgin Olive Oil sales through LIVCD interventions by more than 30% versus Y3.

Year 4 Olive Oil Technical Assistance Provision Axis 1: Marketing

Technical # of # of Technical Assistance Assistance Trainings Locations Date Description Attendees # Held

Olive Oil: Marketing TA-0079 3 Beirut, Jezzine and 400 1/1/2015- LIVCD Staff: Facilitate increased access to (Support in developing Tripoli 6/1/2017 markets through providing marketing and label, Linkage facilitation, promotional support to increase sales of Contest, Fairs) Lebanese olive oil at the domestic and export level

Axis 2: Mills and Storage

Technical # of # of Technical Assistance Assistance Trainings Locations Date Description Attendees # Held

Olive Oil: Technical TA-0045 6 Beirut, Baalbeck, 12 1/2/2014- LIVCD Staff: Upgrade mill’s processes and assistance - GMP Hermel, Rachaya, West 06/30/2017 equipment in order to establish vertical Analysis, Assessment, Bekaa, Zahle, Aley, linkages between improved mills and medium Implementation and Baabda, Chouf, Jbeil, to large scale farmers and bottlers with Follow up for Mills, Keserouan, Metn, Bint production service centers aiming to improve Storage and Bottling Jbeil, Hasbaya, olive oil production quality and volume and Line by LIVCD team Marjeeyoun, Nabatiyeh, competiveness. and/or experts. Akkar, Batroun, Becharre, Koura, Minieh-Denniye, Tripoli, Zgharta,

Jezzine, Saida, Sour

Olive Oil: Trainings and TA-0053 19 Hermel, Rachaya, West 803 7/30/201- LIVCD Staff: Facilitate identifying and TOT by LIVCD Team or Bekaa, Zahle, Chouf, 8/28/2017 supporting centers for improved olive oil Experts (Olive Oil Jbeil, Keserouan, Metn, storage and collection, as well as provide Quality and Mill process) Bint Jbeil, Hasbaya, support for local p roduction service centers Marjeeyoun, Nabatiyeh, to provide production and harvesting services Akkar, Batroun, Koura, to improve olive tree productivity. Link the Minieh-Denniye, service centers with university students or Tripoli, Zgharta, agricultural training schools to promote the Jezzine, Saida, Sour olive sector and offer practical training on olive production to students

Axis 3: Production

Technical # of # of Technical Assistance Assistance Trainings Locations Date Description Attendees # Held

Olive Oil: Technical TA-0043 15 Beirut, Baalbeck, 353 1/2/2014- LIVCD Staff: Identify potential local Assistance at the Hermel, Rachaya, West 9/1/2017 production centers in high density Olive Orchard Level Bekaa, Zahle, Aley, planting areas and determine gaps in service Baabda, Chouf, Jbeil, and develop upgrading strategies. Assist Keserouan, Metn, Bint potential centers with business planning, Jbeil, Hasbaya, operational modeling, and institutional Marjeeyoun, Nabatiyeh, capacity building. Facilitate increased Akkar, Batroun, investments for improvements and results- Becharre, Koura, oriented projects needed at centers. Minieh-Denniye, Faciliatate extension services and financial Tripoli, Zgharta, management support, provide technical

Jezzine, Saida, Sour assistance to olive producers in production practices and appropriate use of inputs, improved product quality, farm accounting and traceability

Olive Oil: Demo plot TA-0046 8 Beirut, Baalbeck, 50 6/1/2015- LIVCD Staff: Facilitate support for local Hermel, Rachaya, West 1/2/2016 production service centers to provide Bekaa, Zahle, Aley, production and harvesting services to Baabda, Chouf, Jbeil, improve olive tree productivity. Survey of Keserouan, Metn, Bint farmers current management practices in Jbeil, Hasbaya, selected production sites, implement the sets Marjeeyoun, Nabatiyeh, of best/new practices in olive demonstration Akkar, Batroun, plots Becharre, Koura, Minieh-Denniye, Tripoli, Zgharta, Jezzine, Saida, Sour

Olive Oil: Trainings and TA-0053 15 Hermel, Rachaya, West 353 7/30/201- LIVCD Staff: Facilitate identifying and TOT by LIVCD Team or Bekaa, Zahle, Chouf, 8/28/2017 supporting centers for improved olive oil Experts (Olive Jbeil, Keserouan, Metn, storage and collection, as well as provide Production) Bint Jbeil, Hasbaya, support for local production service centers Marjeeyoun, Nabatiyeh, to provide production and harvesting services Akkar, Batroun, Koura, to improve olive tree productivity. Link the Minieh-Denniye, service centers with university students or Tripoli, Zgharta, agricultural training schools to promote the Jezzine, Saida, Sour olive sector and offer practical training on olive production to students

Olive Oil: Field visits and TA-0074 9 Beirut, Rachaya, West 375 9/1/2014- LIVCD Staff: Develop internship and trainings for academic Bekaa, Zahle, Baabda, 9/1/2017 collaborative programs between production students to increase Chouf, Jbeil, service centers and agricultural and other awareness on olive oil Keserouan, Metn, Bint departments at universities in Lebanon to Jbeil, Hasbaya, increase student’s awareness and interest in

86 value chain activities Marjeeyoun, Nabatiyeh, oleiculture Akkar, Batroun, Koura, Minieh-Denniye, Tripoli, Zgharta, Jezzine, Saida, Sour

Year 3 Olive Oil Grants Axis 1: Marketing

Grant Grant Title Purpose Status Grantee USD Value Date Number

Mitigating Legal and G-LIVCD- Atayeb Al Rif will implement Atayeb el Rif will address the lack Atayeb Al Rif 1/1/2015- Financial Setbacks of 063 relevant training on legal and of support mechanisms to 30 1/1/2016 (Fixed Rural Cooperatives financial management to improve rural cooperatives and MSMEs, by Obligation and MSMEs (discuss operations and access existing training on legal and financial Grant) with capacity services and benefits provided by management to improve their building) the public and private sector. It will operations and access existing also support the coops to apply services and benefits provided by guidelines and standards related to the public and private sector, markets such as trademark such as exemptions and loans. registration, creating barcodes, VAT and other issues.

Increase exports of G-LIVCD- Olivetrade® needs fundingto Will be signed in Y5 Olive Trade TBD Lebanese Olive Oil 192 support the critical marketing SARL In-Kind through supporting activities required by UNFI for Grant Olivetrade in them to introduce Zejd intotheir strengthening its network of more than 80,000 presence in the US SKUs. specialty market Objectives:

Increased access to markets in targeted value chain Increased business linkages in target value chains

Support the G-LIVCD- Support The Cooperative Completed Cooperative (In- 04/01/2016- participation of the 169 association for organic agriculture association for Kind Grant) 09/30/2016 Cooperative and olive production in Lebaa and organic association for neighboring villages (Olea) and 5 agriculture and organic agriculture MSMEs to increase income during olive and olive production the 4 day event and ensure production in in Lebaa and sustainable sales on a longer term Lebaa and neighboring villages through linkages. neighboring (Olea) in HORECA villages (OLEA Introduce Lebanese Extra Virgin Lebanon 2016 to Cooperative) Olive Oil to consumers, produced increase sales of by farmers from all over Lebanon Extra Virgin Olive and extracted from automatic Oil for 6 continuous milling line under Agricultural MSMEs LIVCD supervision. from all over Lebanon. Spread awareness and encourage consumption of Lebanese Extra Virgin Olive Oil through sensory survey conducted by LIVCD experts during the 4 day event.

Axis 2: Mills and Storage

Grant Grant Title Purpose Status Grantee USD Value Date Number

Improving the G-LIVCD- Through this project, Al Rachid Modern Completed Fouad 9/17/2014-

88 olive oil sector in 042 Olive Mill will focus on providing Mohamed (In-Kind 5/17/2016 Hasbaya through comprehensive services, from the field to Zouweihid Mill Grant) upgrading olive marketing - including improved milling (Al Rachid mill equipment practices for olive growers in the region. Modern Mill) and processing Through upgrading their existing continuous standards milling line to a three phase configuration, and upgrading its infrastructure to be compliant with GMP requirements, Al Rachid Modern Olive Oil will improve overall quality and output of total olive oil produced by local farmers. It will also offer a discount to farmers that use the new automatic milling line and purchase around 300 tins or 4,950 Liters of EVOO from 50 local growers.

Development of G-LIVCD- The grant aims to increase the output and Completed Cooperative 7/23/2014- the Olive Oil 038 sales of extra virgin olive oil in Kobayat and Association in 7/22/2016 (In-Kind Value Chain in surrounding villages in the area of Akkar. Kobeiyat, Grant) Kobayat and LIVCD will support the cooperative apply a Akkar Neighboring full value chain approach starting with the Villages in Akkar farmers at the field level, moving to the processing and reaching the market. The first step is expanding the mechanical harvesting program that was piloted last year. The other important step is to upgrade the Cooperative’s milling and storage facilities. The cooperative will also offer comprehensive agricultural services to growers at all levels of the olive value chain. Farmers with improved olive oil quality will benefit from increased access to markets through the cooperative.

Establishing a G-LIVCD- The LIVCD Project aims to help the Ongoing Der Bechtar 5/14/2015- Comprehensive 092 cooperative function as a service center to Olive Oil Coop 12/15/2016 Simplified Olive Oil Service other cooperatives in the hope that this G-LIVCD- Grant Center in initiative would set the standard for other 093 Darbechtar cooperatives and farmers by introducing them to the proper tools and techniques. The project aims to improve olive orchard In-Kind productivity for olive farmers in Darbechtar Grant and neighboring villages, improve quality of olive oil through standardization of olive milling and storage, and facilitate increased access to markets through providing marketing and promotional support to increase sales of Lebanese olive oil at the domestic and export level.

Quality Assurance G-LIVCD- Introduce new technology, FT-NIR Ongoing Université 07/01/2016- and Quality 193 spectroscopy, which will be used to test the Saint-Joseph 04/30/2016 (In-Kind Control of produced honey and olive oil for quality and (USJ) Grant) Lebanese Honey purity and Olive Oil by Increase the capacities of ESIAM university using Infrared in terms of research and technology and spectroscopy create linkages between ESIAM and the Lebanese traders and exporters of honey and olive oil Protect Lebanese consumers by providing testing facilities on imported honey and olive oil. oncrease the competitiveness of the Lebanese Honey and Olive Oil Value Chains and facilitate export by providing quick, easy and affordable testing to meet the

international requirements.

Develop a service G-LIVCD- ·Improving the olive production and Ongoing Willani SARL 09/05/2016- center for Olive 208 Lebanese olive oil quality by supporting the 03/03/2017 (In-Kind Oil Storage and farmers in Bchennine and villages in Zgharta Grant) Bottling in Caza, through technical assistance and Bchennine and trainings at the production, processing and villages in Zgharta marketing levels to be supplied in Caza collaboration with end market buyer Willani SARL. ·Increase the bottling process in order to promote Lebanese Olive Oil through labeled bottles, this gives high trust among local and international consumers and exporters.

·Increasing Lebanese farmers’ income where Willani SARL will purchase their high quality olive oil (EVOO) at a higher price compared to the market price. Willani SARL will develop supply contracts with farmers through following recommendations suggested by Willani SARL technical team.

Assisting G-LIVCD- To compete in the local and international Ongoing Jezzine and 08/18/2016- Agricultural 205 market in terms of Olive Oil quality and Zahrani 02/17/2017 (In-Kind Service Center to price, JAZ should improve the quality of Development Grant) develop the Olive stored Olive Oil regarding chemical analysis S.A.L. (JAZ) Oil Sector in (aciditiy, peroxide and K232 an K272) and Jezzine and sensory analysis (positive attributes and Zahrani. defects), and decrease the cost of olive oil production through introducing new harvesting techniques. Therefore JAZ will establish an Agricultural Service Center including mechanical harvesting services and new bottling services.

Axis 3: Production Mechanical Harvesting Program Grants under Axis 3 are shown in the table below. The program consists of a number of equivalent grants (equal in approach and objectives) in different regions of Lebanon. Grant Title: Increasing competitiveness of olive farmers by decreasing cost of production through improved harvesting practices and capacity building of cooperatives and farmers Purpose: LIVCD is proposing the implementation of a harvesting program that has the following objectives: Increase olive orchards’ productivity and decrease the cost of olive oil in Lebanon, introduce sound practices and new technology to small and medium farmers, introduce a revenue-generating program to local cooperatives that will be able to finance and pay for its operating costs while benefiting a large number of MSMEs that will be using new technology within their lands.

Grant Number Grantee Status USD Value Date Location

G-LIVCD-099 Agricultural Cooperative Association of Completed 9/30/2015- Aydamoun, Nahriyyeh, Aydamoun 1/31/2016 Cheikh Lar, Rmah In-Kind Grant

G-LIVCD-106 Agricultural Cooperative Association for Completed 9/30/2015- Bkarzla, Hakour, Deir processing olive waste in Bkarzla 1/31/2015 Dalloum, Kloud Al Bakya, In-Kind Grant Chmiss and Aarka

G-LIVCD-107 Agriculture Cooperative Association of Chadra Completed 9/30/2015- Chadra, Meshte Hassan, 1/31/2016 Meshte Hammoud, Wadi In-Kind Grant Khaled, Al Bkeya'a

G-LIVCD-100 Agricultural Cooperative Association in Douma Completed 9/30/215- Douma, Tannourine 1/31/2016 Tahta, Bcheeleh, Beit In-Kind Grant Chlala, Bouchtoudar and Kfarhelda

G-LIVCD-102 Agricultural Cooperative Association for the Completed 9/30/2015- Kashlak, Abboudiyeh, development of the olive sector in Kashlak. 1/31/2016 Wadi Al Hawr, Ammar Al In-Kind Grant Baykat

G-LIVCD-101 Association for Lebanese Rural Development Completed 9/30/2015- Joumeh: Gebrayel, Tekrit, (LRD) 1/31/2016 Beit Mallat, Bazbina and In-Kind Grant Ilat

G-LIVCD-103 Agricultural Cooperative Association of Ibrin Completed 9/30/2015- Ibrin, Ejdebrin, Rachkida, and Neighboring Villages 1/31/2016 Bejdarfel, Kfifan and In-Kind Grant Batroun

G-LIVCD-118 Agricultural Cooperative Association for the Completed 9/30/2015- Bijjeh, Ghalboun, Ayn Development in Bijjeh 1/31/2016 Kfah, Kharbeh, Hakel, In-Kind Grant Lehfed, Maad, Obaydat

G-LIVCD-131 Cooperative Association for Olive Farmers in Completed 9/30/2015/- Abi Samra, Kferkahel, Tripoli 1/31/2016 Nakhleh, Btouratij, In-Kind Grant Mejdlayy, Iaal

G-LIVCD-132 Al Hadatha Association Completed 9/30/2015- Berkayel, Hmayra, Jdaydet 1/31/2016 Al Kayteh, In-Kind Grant Bebnin,Mhamma

G-LIVCD-133 Cooperative Association for Agricultural Completed 9/30/2015- Kfaraaka, Mejdel, Kfarhata, Services and Development of Koura 1/31/2016 Chekka, Kaftoun, Kosba, In-Kind Grant Bsarma Kefraya

G-LIVCD-109 General Agricultural Cooperative of Hajeh Completed 9/18/2015- Al Hajjeh, Al Maamariyeh 1/18/2016 and Aaktanit In-Kind Grant

G-LIVCD-111 Agricultural Cooperative Association in Deir Completed 9/18/2015- Deir Ames, Al Bayyad, Aames 1/18/2016 Reshkaniyeh and Mazraat In-Kind Grant Al Meshref

G-LIVCD-117 Agricultural Cooperative Association in Sir El Completed 9/18/2015- Sir Al Gharbiyeh, Kfarsir, Gharbiyeh 1/31/2016 Kaakaiyeh, Al Jisr Braykeh In-Kind Grant

G-LIVCD-116 Agricultural Cooperative Association in Safad El Completed 9/18/2015- Safad El Battikh, Al Batikh 1/18/2016 Jmayjmeh, In-Kind Grant Baraashit,Mejdel Selem

G-LIVCD-114 Agricultural Cooperative Association in Completed 9/18/2015- Kfardounine, Al Kfardounine 1/18/2016 Shhabiyeh, Kherbet Selem, In-Kind Grant Borj Kalaway, Al Sultaniyeh

G-LIVCD-119 Agricultural Cooperative Association for the Completed 9/18/2015- Kfeir, Khalwat, Marj Al Villages of Haramoun, Al Berke 1/31/2016 Zouhour In-Kind Grant

G-LIVCD-122 Agricultural Cooperative Association for Completed 9/18/2015- Aayshiyeh, Kfarhouna, Sustainable Development in Jezzine and Chouf 1/18/2016 Sajd, Aarmatta, Mlikh, Al In-Kind Grant Cazas-LANDS Louwayzeh, Srira and Al Rihan

G-LIVCD-126 Agricultural Cooperative Association for Olive Completed 9/18/2015- Jezzine, Ain Majdaleyn Farmers in Jezzine 1/18/2016 In-Kind Grant

G-LIVCD-125 General Agricultural Cooperative Association Completed 9/18/2015- Hasbaya, Mimass of Mimes and Neighboring Villages 1/18/2016 In-Kind Grant

G-LIVCD-124 General Agricultural Cooperative Association Completed 9/18/2015- Marjeeyoun, Houla in Houla 1/18/2016 In-Kind Grant

G-LIVCD-123 Cooperative Association for Organic Completed 9/18/2015- Jezzine, Lebaa Agriculture and Olive Production in Lebaa and 1/18/2016 In-Kind Grant Neighboring Villages (OLEA Cooperative)

G-LIVCD-120 Agricultural Association for Marketing and Completed 9/18/2015- Marjeeyoun, Klayaa Processing of Olive Oil in Klayaa 1/18/2016 In-Kind Grant

G-LIVCD-112 Agricultural Cooperative Association in Hermel Completed 10/05/2015- Hermel 02/05/2016 In-Kind Grant

G-LIVCD-113 Agricultural Cooperative Association of Karoun Completed 10/05/2015- Karaoun and neighboring villages 02/05/2016 In-Kind Grant

G-LIVCD-115 Agricultural Cooperative Association for the Completed 10/05/2015- Ras Baalbak development of sustainable agriculture in Ras 02/05/2016 In-Kind Grant Baalbak

G-LIVCD-129 Lebanese Association for Urban Agriculture Completed 10/05/2015- Baalbak (LAUA) 02/05/2016 In-Kind Grant

G-LIVCD-130 Agricultural Cooperative Association for the Completed 10/05/2015- Kaa production and processing of Olive Oil in Al 02/05/2016 In-Kind Grant Kaa

G-LIVCD-211 General Agricultural Cooperative Association Ongoing 09/28/2016- Bater in Bater 01/28/2017 In-Kind Grant

G-LIVCD-213 General Argricultural Cooperative Association Ongoing 09/28/2016- Hajeh of Hajeh 01/28/2017 In-Kind Grant

G-LIVCD-214 Charity and Literary Association for Majdel Ongoing 09/28/2016- Majdel Meouch Meouch Area 01/28/2017 In-Kind Grant

G-LIVCD-215 Developmental Agricultural Cooperative Ongoing 09/28/2016- Wadi El Sit Association in Wadi El Sit 01/28/2017 In-Kind Grant

G-LIVCD-217 Agricultural Cooperative Association in Brih Ongoing 09/28/2016- Brih 01/28/2017 In-Kind Grant

G-LIVCD-221 The Cooperative Association for the Packaging Ongoing 09/28/2016- Chebaa Storing and Marketing of Agricultural Products 01/28/2017 In-Kind Grant in Chebaa

Year 4 Olive Oil Training Provision

Axis 1: Marketing Trainings provided during Year 3 focused on Aggregation and Production, therefore there are no trainings under Marketing on which to report during this period.

Axis 2: Mills and Storage

# of # of Training Purpose Trainings Locations Date Description Attendees Held

Olive Oil Quality 20 Beirut cooking festival 22 11/12/2015 Training: Targeted farmers, cooperatives and Assessment and Evaluation university students. The purpose was to Beirut cooking festival 26 11/13/2015 Workshop build their capacity on the improved Balamand University - Akkar 24 11/19/2015 technology on Olive Oil quality.

Balamand University – Koura 7 12/11/2015

Tanmiya w Tahsin - Akkar 28 12/15/2015

Kobayat Cooperative – Akkar 40 01/07/2016

Order of Engineers and 90 01/28/2016 Architects - Dbaye

Moasat Association – Saida 19 02/17/2016

Al Khalil Association – Hasbaya 150 03/05/2016

LAU - Beirut 33 03/29/2016

LAU - Jbeil 28 03/31/2016

HORECA – Beirut 248 04/05-08/2016

YWCA – Beirut 13 04/13/2016

LARI - Bekaa 142 04/16/2016

NDU - Louaize 72 05/05/2016

Al Rachid – Hasbaya 23 05/09/2016

Bater - Chouf 13 07/15/2016

Majdel Al Maouch - Chouf 21 07/22/2016

Aitanit - Bekaa 27 07/25/2016

Saghbine - Bekaa 25 07/27/2016

Axis 3: Production

# of # of Training Purpose Trainings Locations Date Description Attendees Held

Mechanical 30 Sir El Gharbiyeh 15 10/01/2015 Training: Cooperatives received the harvesting Harvesting Program – bundles and farmers and cooperative management Safad El Batikh 17 10/01/2015 Activity 2: Training were trained on the use of the mechanical on Mechanical Ibrin 13 10/02/2015 harvesters. Harvesters for Farmers Bijjeh 26 10/02/2015 Deir Aames 18 10/06/2015

Hajeh 18 10/06/2015

Lebaa 19 10/07/2015

Aychiyyi 12 10/07/2015

Jezzine 13 10/07/2015

Bkerezla 11 10/08/2015

Jebrayel 20 10/08/2015

Kfardounine 24 10/09/2015

Houla 30 10/12/2015

Klayaa 9 10/12/2015

Chadra 15 10/13/2015

Kashlak 27 10/13/2015

Aydamoun 20 10/13/2015

Mimes 35 10/14/2015

Kfeir 12 10/14/2015

Al Kaa 21 10/16/2015

Hermel 19 10/16/2015

Ras Baalbak 29 10/16/2015

Berkayel 18 10/19/2015

Tripoli 20 10/19/2015

Baalbeck 17 10/20/2015

Karaoun 21 10/20/2015

Douma 17 10/22/2015

Kafaraaka 27 10/22/2015

Jezzine 14 09/30/2016

Hajeh 17 09/30/2016

Capacity Building for 2 Zahleh - Chamber 14 10/5/2015 Training: Presenting the cooperative’s leaders and the Mechanical program managers on the Mechanical Harvesting Majdel Al Maouch 14 09/28/2016 Harvesting Program Program forms and management

Practical Pruning 12 Saghbine – Bekaa 38 02/02/2016 Targeting Lebanese University students Training Darbechtar – North 28 02/20/2016 Targeting farmers

Tanmiya w Tahsin – Akkar 19 02/25/2016 Targeting farmers

Sir Al Gharbiye - South 22 02/26/2016 Targeting farmers

Saghbine – Bekaa 12 02/29/2016 Targeting USJ students

Kfarmishki - Bekaa 19 03/02/2016 Targeting farmers

Bisri – Mount Lebanon 20 03/04/2016 Targeting farmers

Karaoun - Bekaa 19 03/11/2016 Targeting farmers

Karkha - South 10 03/12/2016 Targeting farmers

Hermel- Bekaa 16 03/18/2016 Targeting farmers

Kobayat - North 29 03/23/2016 Targeting farmers

Aitanit - Bekaa 29 03/30/2016 Targeting farmers

Practical training on 1 Darbechtar – North 23 04/23/2016 Targeting farmers compost production

Integrated Pest 2 Darbechtar – North 45 07/30/2016 Targeting farmers Management Training Kfarhata – North 24 09/24/2016 Targeting farmers

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Rural Basket RURAL BASKET VALUE CHAIN UPGRADING STRATEGY – PRIORITIES OF THE WORK PLAN The LIVCD Rural Basket Value Chain Upgrading Strategy is focused around 4 axes of intervention, with the following goals: 1) Identify and support access to market opportunities to increase sales and distribution in local and export markets; 2) Support initiatives for new product development and innovation in aggregation and processing; 3) Increase productivity by upgrading production of rural basket items through institutional and technical training for identified actors; 4) Facilitate access to finance for investment needed to develop downstream and upstream activities. The LIVCD Work Plan (Year 4 and Life of Project) identified the following priorities for the Rural Basket Value Chain Upgrading Strategy:

Immediate/ short term priorities: Long term priorities: · Identify existing initiatives and enterprises and · Encourage collective purchases of inputs conduct technical training and services · Facilitate co-investments to upgrade small · Facilitate access to finance and certification processing units · Identify additional host communities and · Improve the quality of production other products that are economically viable · Support innovative direct sales initiatives

SUMMARY OF PROGRESS: ACHIEVEMENTS and CHALLENGES During Year 4, LIVCD identified 2 initiatives on oregano production as relevant activities to meet that value chain objectives. One initiative was identified in Kaytouly village in South Lebanon, where the production of oregano was combined with the olive trees as a mixed cropping system, to enhance olive oil production and to help increasing family income. The second initiative was identified in the village of Zawtar in Nabatieh, where an activity is being implemented in cooperation with Zawtar Cooperative to increase family income through increasing oregano plantation and linking producers to the Zawtar Cooperative for processing and selling the production.

The Oregano Cross Plantation with Olive Trees grant in Kaytouly with the Kaytouly Sports Club will be able to:

· Put in place 150,000 oregano seedlings (farmer contribution). · Put in place drip irrigation system for 30 farmers under their olive trees covering 1 Dunum for each farmer. · LIVCD will be providing an oregano grinder, a vacuum machine, a distillation machine (Kaytouly Club contribution), and a bag printer. · LIVCD will contribute to the development of a label for the club products. · Linkage to market through the JaZ company and other potential buyers

The oregano grant with the Zawtar Cooperative provided support in Year 4 through:

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· The introduction of modern production techniques for planting oregano in arid areas by co- investing with 40 new oregano farmers. Farmers benefitted from irrigation system covering one dunam for each farmer. The farmers invested in water tanks, water pumps, and purchasing and planting the oregano plants. · Improving the cooperative ’s compliance with Good

Manufacturing Practices (GMP) by Oregano plantation in Qobayat replacing non-compliant equipment. · Putting in place a shaded green house for drying oregano, an oregano grinder, oregano sieve, a sesame roaster and a packaging machine. · Providing training sessions for the cooperative ’s personnel and farmers on food safety and GMP compliance. · Providing technical assistance to 60 oregano farmers on sound agricultural practices including harvest and post-harvest.

From the grant startup date, 30 demonstrations plots were established and planted with oregano seedlings. The sales of oregano by the cooperative exceeded USD 20,000.

LIVCD also continued support and implementation of grants with small food processors and distributors (such as Adonis Valley and Zawtar Cooperative) for diversity of low investment-high value products (capers, apple juice, zaatar, honey, dried tomatoes, salt with herbs, and healthy diet foods).

In addition, LIVCD continued implementation of the Jezzine Pine Nut Cooperative under the “ Improving Production and Retaining the Value of Processed Pine Nuts in Jezzine ” grant , to valorize the white pine nut kernel and train the cooperative on forest management.

During Year 5, the activities under the rural basket value chain will focus mainly on closing remaining active grants, collecting M&E data from previous grants, and implementation of 2 potential small grants that are in the pipeline.

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Year 4 Rural Basket Grants Axis 1: Marketing Grants performed during Year 4 Focused on initiatives that address Production, Aggregation and Marketing, simultaneously; therefore the marketing component is integrated and embedded in the Production and Processing/Aggregation section. Axis 2: Aggregation

Grant USD Grant Title Purpose Status Grantee Date Number Value

Improving G-LIVCD- To optimize the benefit of the pine nut This project has been closed out on Cooperative 5/1/2015- Production 089 processing unit for the farmers as well August 26, 2016, LIVCD team is still for Pine Nut In-Kind 4/30/2016 and Retaining as for the Jezzine area in general, the monitoring the progress and Plantation Grant the Value of project will focus on four main collecting needed M&E data. and Project Processed elements: Activities implemented: Pine Nuts in 1. Processing equipment: The pine nut -Processing equipment: The pine nut Jezzine house will obtain needed equipment to house has obtained needed ensure a full system of processing the equipment to ensure a full system for black nuts into white nuts. The white processing the black nuts into white nuts, which are currently sold out of the nuts. The white nuts, which are region, will be marketed as a Jezzine currently sold out of the region, will product. Through the MoU between be marketed as a Jezzine product. JPNC and UMJ, JAZ will purchase the Through the MoU between JPNC black nuts from the farmers in the area, and UMJ, JAZ started the purchase of and will produce the white nuts as a the black nuts from the farmers in result of the introduction of the new the area, and is producing the white technology. nuts as a result of the introduction of 2. Packaging and Labeling: As the pine the new technology. nuts will be produced for the first time -Packaging and Labeling: JaZ has in Jezzine, JaZ will develop a new label developed a new and attractive label and package to increase the visibility of and package that enhanced visibility the area’s product. of the area’s product. The label 3. Marketing and Sales: The pine house included all market requirements

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will have as well a selling point that will such as nutrition facts and use an accounting system to document production and expiry dates. stock and sales transactions. JAZ will -Marketing and Sales: The pine also identify key outlets where the white house is as well selling through its packaged white nuts will be sold both in sales point using an accounting the region and throughout Lebanon. system to document stock and sales Exports are possible in the future transactions. JAZ identifying regularly 4. Storing: In order to store the white key outlets where the white nuts a pre-fabricated chiller room will be packaged white nuts will be sold both in place to ensure the white nuts are in the region and throughout preserved till sold. Lebanon. Exports are possible in the 5. Technical Capacity Building: The future. project covers training for collectors on -Storing: In order to store the white pruning and best harvesting practices nuts a pre-fabricated chiller room has and sustainable forest management. It been put in place to ensure the white also includes training to the pine nuts nuts are preserved till sold. house on the management of the equipment and sales software. Expanding G-LIVCD- Adonis Valley supports cooperatives and The project had been closed out on Adonis Valley 9/18/2014- Production 039 farmers throughout the country in July 22nd 2016 it had benefitted from In-Kind 11/30/2015 and Sales of producing organic raw material that they a non-cost extension. Activities Grant Adonis Valley purchase and process, many of the items implemented are: and its sold by Adonis Valley are included in -Facility of Adonis Valley was upgraded through introduction of Related LIVCD’s rural basket value chain. A new technology and new equipment Suppliers in substantial part of Adonis Valley’s such as a modern vinegar production the Rural procurement of raw material is from machine, new packaging materials Basket Lebanese farmers and women’s and solar panels to improve cooperatives in rural areas that produce productivity, and streamline the organic agricultural products. By production process. The products of supporting Adonis Valley, LIVCD will be focus are thyme (Oregano), capers, able to reach more than 38 farmers honey, dried tomatoes and vinegar. from cooperatives and nine individual - 4 joint product promotions farmers by providing them a direct link activities were conducted to increase to high value markets. sales of Adonis Valley star products, in local and international markets (e.g. honey, thyme and other items 104

to the GCC). -Packaging, labelling we reviewed and upgraded to respond to market demands and standards within the target markets. The website was also upgraded. -New items were introduced to Adonis Valley products to respond to market demand (such a new types of vinegar and free range eggs). Increasing the G-LIVCD- This project aims to capitalize on unmet The Project is at an advanced stage The 2/1/2016 – productivity 137 demand of processed and fresh oregano of implementation. Agricultural In Kind 2/1/2017 of oregano in by leveraging the resources of a Activities under implementation are: Cooperative Grant south cooperative located in the southern Association Lebanon and village of Zawtar. -Put in place an irrigation system for improving the covering one dunam for 40 farmers. Manufacturin process of The project will upgrade the The farmers invested in water tanks, g of oregano cooperative’s processing capabilities to water pumps, and purchasing and Medicinal and manufacturing increase capacity and improve quality. planting the oregano plants. Aromatic at The The project will aslo create economic Plants in East Agricultural opportunities for farmers by assisting -Putting in place a shaded green Zawtar and Cooperative them in planting oregano in arid areas, house for drying oregano, an its Association and processing it in the cooperative oregano grinder, oregano sieve, a Surroundings for through grants. New and existing sesame roaster and a packaging "Zaatar Manufacturing farmers will be able to sell their fresh machine. Zawtar of Medicinal and processed oregano directly to and Aromatic consumers, and any excess oregano will Plants in East be sold to the cooperative that has a Zawtar and market beyond what its existing its members can supply. Surroundings, known as ”Zaatar Zawtar Cooperative”.

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Oregano G-LIVCD- The project aim at Establishing a Model The project is still at its initial Kaitouly 8/16/2016 – Cross 202 Functional Oregano Value Chain in implementation phase, farmers land Sports Club 2/16/2017 Plantation Kaitouly Village Integrated with Olive has been identified and we are still in with Olive G-LIVCD- Production. the process to get their land Trees 203 ownership evidence. Farmers will be assisted through providing drip irrigation system, Processing equipment, Attractive Labeling, Sustainable Linkage to market. Farmers will benefit from an irrigated land that will help produce an Oregano crop during the winter, the spring and the summer seasons, and an olive crop during the fall season. By irrigating the land, the risk of drought will be reduced on the olive trees, minimizing the effect of wilting to a minimum, producing continuous olive yields. The oregano products can be sold as green leaves, processed as pickles, or dried as Zaatar. The processing stage will offer work to women in the village, where the farmers cultivate, and their wives will work in threshing the product and place them in glass jars to be sold as pickled product.

Axis 3: Production Grants performed during Year 4 Focused on initiatives that address Production, Aggregation and Marketing, simultaneously; therefore the Production component is integrated and imbedded into the Processing/Aggregation.

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Year 4 Rural Basket Training Provision

Axis 1: Marketing Training conducted during Year 4 focused on Production; therefore there are no Marketing trainings to report during this period.

Axis 2: Aggregation Training conducted during Year 4 focused on Production; therefore there are no Aggregation trainings to report during this period. Axis 3: Production

# of # of Training Purpose Trainin Locations Attendee Date Description gs Held s

Orange Blossom Mechanical 1 Maghdouch 32 02/27/20 LIVCD in coordination with a private company (ARC) and the Agricultural Harvesting – Introduction – e-South 16 Cooperative of orange blossom and agricultural products of Maghdouche Maghdouche Lebanon organized and introductory session on the use of mechanical harvester for collecting “orange blossom” in Maghdouche village. The session took place on February 27, 2016, at the village hall. The Session aimed: - To introduce LIVCD project and rural basket value chain - Introducing a new technology in Orange Blossom harvesting by mechanical harvesters.

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Rural Basket-Honey

RURAL BASKET – HONEY VALUE CHAIN UPGRADING STRATEGY – PRIORITIES OF THE WORK PLAN

The LIVCD Rural Basket – Honey Value Chain Upgrading Strategy is focused around three axes of intervention, with the goals to 1) Support Actors to Identify and Access Market Opportunities to Increase Exports of Honey and Sales in Domestic Market; 2) Improve Aggregation and Processing Facilities to Extend Marketing Opportunities for Honey; 3) Sustain and Increase Production of Honey.

The LIVCD Work Plan (Year 3-4 and Life of Project) identified the following priorities for the Rural Basket – Honey Value Chain Upgrading Strategy:

Immediate/ short term priorities: Long term priorities:

· Increase production of honey for beekeepers · Conduct a national awareness and which will ultimately increase their income promotional campaign for the honey value · Introduce the method of artificial insemination chain to displace imported brands to advanced beekeepers · Incorporate Honey VC case study with · Provide upgraded equipment for beekeeping Universities in rural areas and villages in Lebanon · Identify and collaborate with three main · Enhance aggregation between beekeepers and entities to take over the beekeeping training cooepratives and SMEs. · Create awareness and inaugurate the two · Finalize beekeeping manual already established centers and put them on the map of Queen Production in Lebanon.

· Support Sustainable Increase in honey exports · Enhance outreach and visibility of honey VC activities · Collaborate with sustainable entities to provide LIVCD honey training program to beekeepers

SUMMARY OF PROGRESS: ACHIEVEMENTS AND CHALLENGES According to the Ministry of Agriculture’s data collected in May 2016 on the current quantity of hives and beekeepers, market value and export, it has been concluded that there has been a 70% increase in the number of hives in Lebanon, and a 45% increase in the number of beekeepers reaching more than 7,500 beekeepers since 2011. As a result the market size of honey has drastically increased to reach an approximate value of , a 132% increase from the year 2011.

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The investments made by the LIVCD project in the value chain and in parallel the leveraged investment made by beekeepers, input suppliers, and companies contributed to the observed boost in the value chain. This significant change is a result of the increased participation and awareness from beekeepers and exporters in this sector. The increase in demand for honey in export and local markets has led companies to source higher quantities of honey from local beekeepers, thus the interest in expanding and creating new apiaries have become a must to meet market demand. The export numbers which increased by 102% Stakeholders and beekeepers discuss the Lebanese from year 2011 to year 2016 are a proof that National Honey Campaign there is a high demand for honey. Investing in this sector is promising and will continue to generate positive results if this trend continues.

The LIVCD project: · Has provided training to more than 3,290 beekeepers on best beekeeping practices to increase and improve productivity, address challenges, and upgrade the entire value chain. · Has impacted over 1,210 jobs in rural areas. · Has provided training and equipment devlivery, resulting in 2,250 beekeepers applying improved technologies · Contributed directly to the increase in honey production and elevated beekeepers living conditions by investing in 6,328 hives with 1,497 beekeepers all over Lebanon · Has impacted honey production at the national level where number of hives increased by 70% from 194,520 in 2011 to 328,832 in 2016 · Honey production in 2016 has increased by 130% since 2011 · Expected production in 2016 is approximately 4,000 MT of honey worth over , · The number of beekeepers nationwide increased by 45% between 2011 and 2016 reaching more than 7,500 beekeepers in 2016.

In Year 4, and based on the successes and lessons learned, LIVCD has focused on replicating successful assistance, and de-emphasized assistance that was less relevant or less successful than anticipated.

LIVCD focused on increasing capacity of production of beekeepers, continued training beekeepers on hive management and diseases, introduced new technology in beekeeping, worked on increasing access to market of honey, and collaborated on the issuance of the new honey regulation. In terms of hive distribution, which aims to support small scale beekeepers to increase production and elevate their living conditions, LIVCD in year 4 co-invested in 2,334 beehives with 782 beekeepers that have purchased a minimum of 782 beehives as their share. There were several partnerships that were implemented in almost all regions in Lebanon. In Mount Lebanon, LIVCD leveraged investment with 105 beekeepers from Ehmej Association, Aalmat Cooperative, and Ain el Abou Cooperative. In the North, LIVCD co-invested with 259 beekeepers from cooperatives from Akkar el Atika, Minjez, Kashlak, Douma, Ghouma, Chadra and Aydamoun. 180 beekeepers from the South and 238 beekeepers from the Bekaa also benefited from this year’s hive distribution. All beekeepers were part of LIVCD beekeeping training program.

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This year’s hive distribution program was more successful than 2015’s as controllable obstacles were studied and mitigated. Beekeepers that rely on the oak season have also suffered from decline in yield due to the rain in May, however; less than last year.

Jezzine beneficiaries share their beehives in an apiary In terms of leveraging investments to improve honey processing services: LIVCD leveraged investment in beekeeping equipment with 10 beekeeping cooperatives the North, Bekaa, and Mount Lebanon. The services provided ranged from provision of new equipment that will facilitate and standardize honey processing, to the introduction of wax workshop facility in Mount Lebanon. All the below listed coops will receive the equipment in year 5, quarter 1. The cooperatives are from Hermel Beekeeping Cooperative, Rif el Hermel Beekeeping Cooperative, Qaroon Agriculture Cooperative, Dar Tanit Association, Baalbeck Beekeeping Cooperative, Baalbeck and Zahle Cooperative. The North Cooperatives are Chadra Cooperative, Douma Beekeeping Cooperatives, Minjez Beekeeping Cooperative, Akkar el Atika Cooperative, and Kashlak Cooperative, and Mount Lebanon with Ain el Abou Cooperative, Aalmat Beekeeping Cooperative, and Mristy Cooperative

In year 4, LIVCD through a leveraged investment with HOSCO Agri S.A.R.L (grant approved in year 3) witnessed the establishment of a professional wax processing center in Mount Lebanon area. This new wax service centering year 4, will decrease cost of beekeeping for beekeepers and facilitate their work due to the convenience of the location of the new workshop.

In terms of honey training, LIVCD trained in year four 822 beekeepers on hive management and diseases chapters New Wax Service at HOSCOAgri reaching a total of 3,290 beekeepers. The development of the honey booklets have been finalized and will be printed in year five quarter 1. These booklets will be handed over to beekeepers through the cooperatives that will attend the ongoing Training of Trainers. In an effort to ensure sustainability and project impact once LIVCD assistance ends, the LIVCD team continued organizing and formatting training manuals, materials and guides developed over the life of the project so that they can be handed over to private sector entities and cooperatives that have the management and capacity to continue utilizing the materials. Part of the initiative is the development and production of high-quality Honey Training Tutorial videos and the Training Booklets.

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In terms of improving access to market , LIVCD worked on upgrading product specifications and honey marketing: In year 4, LIVCD and Kaddoum for Trading co-worked on uplifting Kaddoum’s brand image through a rebranding strategy with the winning vendor Brandmint. Through this agreement, Kaddoum for Trading improved the label to meet the shift of consumer preferences and has succeeded in creating a high end label that had positive results in the domestic and export market. Following the brand’s facelift, Kaddoum for Trading has now an online presence on Kaddoum brand at HORECA 2016 social media and a website for the first time in twenty seven years. In addition, LIVCD provided technical assistance for Jbalna brand on development of new labels and logos to be able to compete in domestic market.

Honey Awareness and Marketing

LIVCD organized a workshop to facilitate the preparation of a Lebanese Honey Awareness Campaign aimed at increasing sales of Lebanese honey versus imported brands. 60 stakeholders participated in roundtable discussions to raise the marketing challenges faced by Lebanese honey and to explore strategies to address these challenges. The proposition of an industry led honey promotional campaign to support the overall honey sector was discussed and agreed among participants. Honey VC stakeholders and USAID discuss strategy of Honey Awareness Campaign

Mission Director and MoA representatives cutting the ribbon of inauguration of laboratory

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Science and Technology/Queen Breeding and Artificial Insemination: On the 20th, 21st and 22nd of September 2016, in the presence of USAID mission director and Ministry of Agriculture representatives, Afif Abi Chedid Agriculture and trade Company launched the Golden Queen Center, the first artificial insemination center in the Middle East through a mutual conference with Arab beekeepers. This conference is the stepping stone to a long term commitment and work between beekeepers of the Arab countries. For instance, queen bees were sold to several Arab countries due to the agreements. The event brought together 160 beekeepers and experts from Lebanon, Iraq, Egypt, Syria, Oman, and Jordan to mark the opening of the 2016 Arab Beekeepers Convention.

As a result of the partnership between LIVCD and the grantee, a laboratory facility for artificial insemination, a conference room and Afif Abi Chedid explains the process of AI to a center for queen bee production were established to serve visitors beekeepers of the region. Consequently, and to meet demand for foforeign ig queen bebees, a contract was signed ig between the center and a French expert on production of large quanities of artificially inseminated queen bees.

Quality Assurance and Quality Control of honey and olive oil LIVCD and ESIAM signed on a grant agreement to assure quality assurance and quality control in the Lebanese honey and olive oil sectors.The main objectives of the partnership between ESIAM and LIVCD are: - to protect Lebanese consumers by allowing the availability of required testing on imported honey and olive oil - Increase the competitiveness of Grant signature with ESIAM the Honey and Olive Oil Value Chains and facilitate export by providing a quick and easy testing as per international requirements.

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In terms of honey regulations for Lebanese honey, a breakthrough in the field of Lebanese commercial honey took place on March 17 when the Lebanese Standards Institution (LIBNOR) issued a new honey regulation as part of decree # 209/99. In addition, the Lebanese Ministry of Agriculture formed a Honey Committee on February 12th; five of the members were direct LIVCD beneficiaries. The main purpose of the committee is to reinforce honey regulations and continue to improve competitiveness of Lebanese honey.

Closed Grants:

In year 4, LIVCD ended the grants with Jabal Amel Cooperative rearing queen bees the below cooperatives. - Kobbayat beekeeping cooperative - Kfeir beekeeping cooperative - Qwyateh Cooperative - Jabal Moussa - Jabal Amel - Maten el Aala Beekeeping Cooperative - Afif Abi Chedid Agriculture and Trade company - Ain el Abou Beekeeping Cooperative - Kawkaba - Caritas

Under these grants, linkages were made between beekeepers and cooperatives such as Jabal Amel Cooperative selling its first 600 virgin queen bees to beekeepers and local agriculture in the community, and Afif Abi Chedid Agriculture and Trade Company selling queen bees to beekeepers in Lebanon and Arab countries. Equipment provided to cooperatives was utilized for the first time by beekeepers. In addition, beekeepers benefited from the harvesting, storage, and wax processing equipment. Sales of honey increased, and production of beehives has also increased by the methods of swarming.

In terms of ensuring continuity, the honey value chain will focus on sustainability in the upcoming final project through outreach and demonstrations of already established and sustained extension services promoting aggregation and linkages between beekeepers and enterprises. During the last quarter, LIVCD in collaboration with Jabal Amel Cooperative, HOSCO, Kobayat Beekeeping Cooperative and Afif Abi Chedid Agriculture and Trade Company implemented demonstration activities in several parts of the country.

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Year 4- Honey Technical Assistance Axis1: Marketing

Technical Assistance TA # Locations Date Description

Awareness Campaign for Honey TA-0123 Kaddoum for Trading LIVCD and the Lebanese Syndicate of Dietitians (SoD) strive to with Syndicate of Dieticians and SARL,Jibal Loubnan for launch a joint program of cooperation to cooperate in raising Honey Producers Baladi Production,Jezzine consumers’ awareness on the health benefits related to natural and Zahrani honey from Lebanese origin, through an awareness campaign Development S.A.L. involving mainstream media outlets and social media. (JAZ),Matn el Aala The parties agreed to create the basis for a cooperation framework Honey Cooperative,Jabal with the objective to raise awareness on and consumption of natural Amel,Atelier du Miel honey from Lebanese origin.

Axis 2: Aggregation There is no Technical Assistance to report for Aggregation. Axis 3: Production

Technical Assistance TA # Locations Date Description

Beekeeper Training Program to TA-0026 APIS,Assia Cooperative Ongoing In order to increase and improve productivity, address challenges, Increase Productivity of 2,500 for Agriculture and and develop the entire value chain, a beekeeping training program Beekeepers Development Assia- has been established by professional beekeepers and professors to Batroun,Association for target 2500 beekeepers. the Protection of Jabal The training program includes five chapters that have been chosen Moussa,Baskinta according t o importance and relativity to rural beekeepers. The five Cooperative,Beekeeping chapters include the following: Cooperative in Al o Managing beehives & products (beginners and advanced) Kouwateh- o Increasing Production (advanced) 114

Koura,Beekeeping o Raising of queens (advanced) Cooperative in Beit el o Diseases (beginners and advanced) Fakes-Donnieh,Beekeeping o New developments to increase honey beekeepers (advanced) Cooperative in A beekeeping booklet will be prepared to provide all the necessary Kobayat,Caritas information for new and experienced beekeepers, and will be Lebanon,Development distributed to all the trainees (See TA-0093). Cooperative in Jezzine,Kfarshouba Cooperative,Matn el Aala Honey Cooperative

Year 4 –Honey Value Chain Grants Axis 1: Marketing

Grant USD Grant Title Purpose Status Grantee Date Number Value

JAZ G-LIVCD-195 1. Investment in equipment: The project is ongoing. The Jezzine and LIV 06/27/2016- (LIVCD cost share) LIVCD is in the process Zahrani CD 12/26/2016 of purtchasing the Development com Providing JAZ with four uncapping equipment whereas JAZ Company mitt stands with knives, two reversible 6- is developing its honey ed frame extracors, 40 stainless steel marketing strategy. containers of various capacities, a filling fund machine, and a tool box. s: $ 2. Marketing: (JAZ cost share) Expanding the J Grove brand, owned by and JAZ, to include honey and market it in gran the Lebanese market. Branding the tee produced honey in the area, will provide cost a competitive advantage in the Lebanese shar market and will provide a better e: opportunity for export. This upgrade is ,

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expected to increase the demand on 364 honey from rural beekeepers.

Moreover, JAZ will train beekeepers on correct beekeeping practices to achieve a consistent production of high quality honey Upgrade the G LIVCD-045 Through this grant, the project aims to: The project is ongoing. Kaddoum 12/15/2014- Lebanese Honey The grantee has finalized In-Kind 12/31/2016 Value Chain 1. Improve the Lebanese honey value all labels, and marketing Grant sector through chain through a comprehensive upgrade material, website and improving the in Kaddoum brand for the local market social media presence. brand image of a which will increase sales of rural honey Next and final step will local honey brand and displace imports against foreign be the marketing and increasing honey brands that have a more campaign in October consumer competitive equity. 2. Expand and 2017. awareness through fortify the presence of Lebanese a joint promotion Kaddoum honey on market shelves leading to an against imported brands by increase in implementing a joint product promotion demand of honey through multiple channels, and ensuring from rural the implementation of a capacity building beekeepers program by Kaddoum for rural beekeepers. Establish the first G LIVCD-108 Through this grant, the project aims to: All equipment has been HOSCO Agri 08/24/2015- Beeswax Recycling 1.Initiate a startup reference beekeeping installed. In addition the S.A.R.L In-Kind 2/24/2017 Sterilization, center to recapitulate the information premises have been Grant Processing and related to beekeeping renovated according to Beekeeping 2.Provide beekeepers with a nearby General manufacturing Reference Center source of high quality recycled and practices. Next step in Mount Lebanon processed beeswax would be finalizing logo to serve rural 3.Reduce cost of beekeeping incurred by and website design for beekeepers beekeepers by recycling and sterilizing HOSCO. the old beeswax at a reduced fee instead of purchasing low quality beeswax

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4.Improve the quality of honey 5. Reduce the potential to spread bee diseases by reducing the number of beekeepers who will discard old wax sheets into the natural environment. 6.Transfer the best wax recycling and sterilizing techniques to local beekeepers and students through educational tours in the newly established wax center

Axis 2: Aggregation

Grant Grant Title Purpose Status Grantee USD Value Date Number

Quality Assurance G-LIVCD- Introduce new technology, FT-NIR Currently, all beekeepers Université 07/01/2016- and Quality Control 193 spectroscopy, which will be used to are managing their Saint-Joseph 04/30/2017 of Lebanese Honey test the produced honey and olive oil apiaries and applying (USJ) and Olive Oil by for quality and purity. improved technologies at using Infrared the beehive and apiary spectroscopy Increase the capacities of ESIAM level. Equipment will be university in terms of research and received in the upcoming Increase the competitiveness of the quarter. Lebanese Honey and Olive Oil Value Chains and facilitate export by providing quick, easy and affordable testing to meet the international requirements. Improve the honey G-LIVCD- Through this grant the project aims to Currently, all beekeepers Agriculture 04/01/2016- value chain in Chadra 166 increase quantity of production and are managing their Cooperative 03/31/2017 by increasing honey sales of honey through expanding the apiaries and applying Association of production of 41 number of hives of 41 small and improved technologies at Chadra beekeepers through medium beekeepers. In addition, the the beehive and apiary 117 leveraging cooperative wills to optimize honey level. Equipment will be investments in production through provision of received in the upcoming beehives and equipment. quarter. equipment, and monitoring the production process Improve the honey G-LIVCD- Through this grant the project aims to Currently, all beekeepers Agricultural 04/01/2016- value chain in 165 increase quantity of production and are managing their Cooperative 03/31/2017 Douma area by sales of honey through expanding the apiaries and applying Association in increasing honey number of hives of 38 small and improved technologies at Douma production of 38 medium beekeepers. In addition, the the beehive and apiary beekeepers through cooperative wills to optimize honey level. Equipment will be leveraging production through provision of received in the upcoming investments in bee equipment. quarter. hives and beekeeping equipment and monitoring the production process Improve the honey G-LIVCD- Through this grant the project aims to Currently, all beekeepers Cooperative 04/01/2016- value chain in Aalmat 163 increase quantity of production and are managing their Association For 03/31/2017 by increasing honey sales of honey through expanding the apiaries and applying Beekeeping In production of 20 number of hives of 20 small and improved technologies at Almat beekeepers through medium beekeepers. In addition, the the beehive and apiary leveraging cooperative wills to optimize honey level. Equipment will be investments in bee production through provision of received in the upcoming hives and equipment equipment. quarter. and monitoring the production process. Establish the first G-LIVCD- - Provide beekeepers with high All equipment was Mristy 04/01/2016- semi-professional 171 quality wax through received. Next wax Agricultural 03/31/2017 beeswax recycling establishing the first beeswax season will begin in Cooperative and production recycling and production February 2017 center that will serve workshop in the Chouf district

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Mristy and the Chouf - Reduce cost of beekeeping area incurred by beekeepers by recycling and sterilizing the old beeswax at a reduced fee instead of purchasing low quality beeswax - Reduce the potential to spread bee diseases by reducing the number of beekeepers who discard old wax sheets into the natural environment.

Improve the honey G-LIVCD- Through this grant the project aims to Currently, all beekeepers Cooperative 04/01/2016- value chain in Akkar 170 increase quantity of production and are managing their Association for 03/31/2017 el Atika area by sales of honey through expanding the apiaries and applying Beekeepers in increasing honey number of hives of 65 small and improved technologies at Akkar Al Atika production of 65 medium beekeepers. In addition, the the beehive and apiary and beekeepers through cooperative wills to optimize honey level. Equipment will be Neighboring leveraging production through provision of received in the upcoming Villages investments in bee equipment. quarter. hives and equipment and monitoring the production process. Improve the honey G-LIVCD- Through this grant the project aims to Currently, all beekeepers Cooperative 04/01/2016- value chain in 147 increase quantity of production and are managing their Association for 03/31/2017 Baalbek area by sales of honey through expanding the apiaries and applying beekeeping and increasing the honey number of hives of 17 small and improved technologies at marketing of production of 17 medium beekeepers. In addition, the the beehive and apiary bees products beekeepers through cooperative wills to optimize honey level. Equipment will be in Baalback leveraging production through provision of received in the upcoming investments in bee equipment. quarter. hives and equipment, and monitoring the

119 production process. Improve the honey G-LIVCD- Through this grant the project aims to Currently, all beekeepers Agricultural 04/01/2016- value chain in Ain el 149 increase quantity of production and are managing their Cooperative 03/31/2017 Abou area by sales of honey through expanding the apiaries and applying Association in increasing honey number of hives of 60 small and improved technologies at Ain Kabo (Ain production of 60 medium beekeepers. In addition, the the beehive and apiary Kabo) beekeepers through cooperative wills to optimize honey level. Equipment will be leveraging production through provision of received in the upcoming investments in bee equipment. quarter. hives and equipment Improve the honey G-LIVCD- Through this grant the project aims to Currently, all beekeepers Cooperative 04/01/2016- value chain in 150 increase quantity of production and are managing their Association for 03/31/2017 Baalbek and Zahle sales of honey through expanding the apiaries and applying Beekeepers in districts by number of hives of 50 small and improved technologies at Baalbeck increasing honey medium beekeepers. In addition, the the beehive and apiary region production of 50 cooperative wills to optimize honey level. Equipment will be beginner beekeepers production through provision of received in the upcoming through leveraging equipment. quarter. investments in beehives and equipment, and monitoring the production process. Improve the honey G-LIVCD- Through this grant the project aims to Currently, all beekeepers Agricultural 04/01/2016- value chain in Menjez 155 increase quantity of production and are managing their Cooperative 03/31/2017 by increasing honey sales of honey through expanding the apiaries and applying Association in production of 55 number of hives of 55 small and improved technologies at Minjiz beekeepers through medium beekeepers. In addition, the the beehive and apiary leveraging cooperative wills to optimize honey level. Equipment will be investments in production through provision of received in the upcoming beehives and equipment. quarter. equipment, and monitoring the

120 production process -03/31/2017Improve G-LIVCD- Through this grant the project aims to Currently, all beekeepers Cooperative 04/01/2016- the honey value 156 increase quantity of production and are managing their Association for 03/31/2017 chain in Kashlak, sales of honey through expanding the apiaries and applying the Akkar area by number of hives of 16 small and improved technologies at development of increasing honey medium beekeepers. In addition, the the beehive and apiary animal production of 16 cooperative wills to optimize honey level. Equipment will be resources and beekeepers through production through provision of received in the upcoming beekeeping in leveraging equipment. quarter. Koshlok-Akkar investments in bee hives and extractor and monitoring the production process Improve the honey G-LIVCD- Through this grant the project aims to Currently, all beekeepers Dar Tanit 04/01/2016- value chain in Dar 157 increase quantity of production and are managing their Association 03/31/2017 Tanit area by sales of honey through expanding the apiaries and applying increasing honey number of hives of 11 small and improved technologies at production of 11 medium beekeepers. In addition, the the beehive and apiary beekeepers through cooperative wills to optimize honey level. Equipment will be leveraging production through provision of received in the upcoming investments in bee equipment. quarter. hives and equipment, and monitoring the production process Improve the honey G-LIVCD- Through this grant the project aims to Currently, all beekeepers Cooperative 04/01/2016- value chain in Rif el 158 increase quantity of production and are managing their Association for 03/31/2017 Hermel area by sales of honey through expanding the apiaries and applying Agricultural increasing honey number of hives of 25 small and improved technologies at Production and production of 25 medium beekeepers. In addition, the the beehive and apiary Marketing in beekeepers through cooperative wills to optimize honey level. Equipment will be Rif el Hermel leveraging production through provision of received in the upcoming investments in bee equipment. quarter. hives and equipment,

121 and monitoring the production process. Improve the honey G-LIVCD- Through this grant the project aims to Currently, all beekeepers Cooperative 04/01/2016- value chain in 159 increase quantity of production and are managing their Association for 03/31/2017 Qaroon area by sales of honey through expanding the apiaries and applying Beekeeping in increasing honey number of hives of 15 small and improved technologies at Karaoun and production of 15 medium beekeepers. In addition, the the beehive and apiary Neighboring beekeepers through cooperative wills to optimize honey level. Equipment will be Villages leveraging production through provision of received in the upcoming investments in bee equipment. quarter. hives and equipment, and monitoring the production process Improve the honey G-LIVCD- Through this grant the project aims to Currently, all beekeepers Agricultural 04/010/2016- value chain in 161 increase quantity of production and are managing their Cooperative 03/31/2017 Hermel area by sales of honey through expanding the apiaries and applying Association Of increasing honey number of hives of 26 small and improved technologies at Beekeepers in production of 26 medium beekeepers. In addition, the the beehive and apiary Hermel beekeepers through cooperative wills to optimize honey level. Equipment will be leveraging production through provision of received in the upcoming investments in bee equipment. quarter. hives and equipment and monitoring the production process

Axis 3: Production

Grant USD Grant Title Purpose Status Grantee Date Number Value

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Improve the G-LIVCD-162 Through this grant the project aims Project objectives have been met and Ehmej 04/01/2016- honey value chain to increase quantity of production beekeepers have received the Development 03/31/2017 in Ehmej area by and sales of honey through beehives. Currently, all beekeepers Association increasing honey expanding the number of hives of are managing their apiaries and production of 25 25 small and medium beekeepers. applying improved technologies at beekeepers the beehive and apiary level. through leveraging investments in bee hives

Improve the G-LIVCD-164 Through this grant the project aims Project objectives have been met and Cooperative 04/01/2016- honey value chain to increase quantity of production beekeepers have received the Association 03/31/2017 in Ghouma area and sales of honey through beehives. Currently, all beekeepers for by increasing expanding the number of hives of are managing their apiaries and Beekeepers honey production 14 small and medium beekeepers. applying improved technologies at in Ghouma of 14 beekeepers the beehive and apiary level. and through leveraging Neighboring investments in bee Villages hives and an extractor and monitoring the production process Improve the G-LIVCD-154 Through this grant the project aims Project objectives have been met and Cooperative 04/01/2016- honey value chain to increase quantity of production beekeepers have received the Association 03/31/2017 in Nabatieh area and sales of honey through beehives. Currently, all beekeepers for Organic by increasing expanding the number of hives of are managing their apiaries and Agriculture honey production 100 small and medium beekeepers. applying improved technologies at and of 100 beekeepers the beehive and apiary level. Beekeeping through leveraging in Der investments in bee Mimess and hives and Surrounding monitoring the

123 production SAL process. Improve the G-LIVCD-160 Through this grant the project aims Project objectives have been met and Cooperative 04/01/2016- honey value chain to increase quantity of production beekeepers have received the Association 03/31/2017 in Hermel area by and sales of honey through beehives. Currently, all beekeepers for increasing honey expanding the number of hives of are managing their apiaries and Beekeeping production of 17 17 small and medium beekeepers. applying improved technologies at in Zeghrine beekeepers In addition, the cooperative wills to the beehive and apiary level. through leveraging optimize honey production through Equipment will be received in the investments in bee provision of equipment. upcoming quarter. hives and equipment, and monitoring the production Improve the G-LIVCD-151 Through this grant the project aims Project objectives have been met and Agricultural 04/01/2016- honey value chain to increase quantity of production beekeepers have received the Cooperative 03/31/2017 in Aydamoun by and sales of honey through beehives. Currently, all beekeepers Association increasing honey expanding the number of hives of are managing their apiaries and of Aydamoun production of 30 30 small and medium beekeepers. applying improved technologies at beekeepers the beehive and apiary level through leveraging investments in beehives, and monitoring the production process Improve the G-LIVCD-148 Through this grant the project aims Project objectives have been met and North Bekaa 04/01/2016- honey value chain to increase quantity of production beekeepers have received the Association 03/31/2017 in the North and sales of honey through beehives. Currently, all beekeepers for Bekaa area by expanding the number of hives of are managing their apiaries and Beekeeping increasing the 52 small and medium beekeepers. applying improved technologies at honey production the beehive and apiary level of 52 beekeepers

124 through leveraging investments in beehives, and monitoring the production process. Improve the G-LIVCD-146 Through this grant the project aims Project objectives have been met and Lebanese 04/01/2016- honey value chain to increase quantity of production beekeepers have received the Associations 03/31/2017 in Baalbek by and sales of honey through beehives. Currently, all beekeepers for increasing honey expanding the number of hives of are managing their apiaries and Alternative production of 25 25 small and medium beekeepers. applying improved technologies at Crops beekeepers the beehive and apiary level through leveraging investments in beehives, and monitoring the production process.

Improve the G-LIVCD-195 Through this grant the project aims Project objectives have been met and Cooperative 06/27/2016- honey value chain to increase quantity of production beekeepers have received the Association 12/26/2016 in the Jezzine area and sales of honey through beehives. Currently, all beekeepers for by increasing expanding the number of hives of are managing their apiaries and agricultural honey production 80 small and medium beekeepers. applying improved technologies at services in the beehive and apiary level of 80 beekeepers Jezzine and through leveraging the investments in bee neighboring hives and villages. monitoring the production process.

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Trainings conducted in this quarter: Axis 3: Production

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# of Training Training Locations # of Attendees Date Description Purpose s Held

Honey 39 Mashta Hammoud (Akkar)-North 1071 December 14-15 2015 A continuation of the honey Training on Borj el Chamali December 10-12 2015 training program with training Diseases 1&2 Baalbeck December 11 2015 on hive management and Bazourieh December 3-5 2015 diseases chapters. Baalbeck December 4 2015 Kornayel November 15 and 22 2015 Zaarourieh November 19-20 2015 Zeghrin November 19 2015 Kfarshouba November 15 2015 Ebel el Saki November 12-13 2015 Karaoun November 12 2015 Hibarieyh November 7-8 2015 Kornayel November 8 2015 Fardis November 5-6 2015 Baalbeck November 6 2015 Kfarhamem October 31 2015 Zaarourieh November 1 2015 Kfarmeshki October 29-302015 Baalbeck October 29-30 2015 Bazbina October 30 2015 Baalbeck October 27-28 2015 Gharife October 26 2015 Baalbeck October 20-21 2015 Kahlounieh October 16 2015 Zaarourieh October 13 2015 Baalbeck October 8-9 2015 Gharifeh October 9 2015 KfarhamemSaida- Klayaa October 5 2015 Ghazir October 3 201 Ehmej April 13 and April 14 2016 Aydamoun April 13 2016 127

Jezzine April 20 2016 Chadra April 26 and April 27 2016 Douma May 2 nd 2016 May 3, 4, 2016 Amioun, Deir el Ahmar; Borj Rahal, May 10 th 2016 , May 11 th 2016 Majdel Meouch Febraury 4, 5, 11, 18, and 19 2016 January 1 st 2016 TOT on 24 professionals were trained queen rearing on queen rearing methods and techniques by Dr. Chadi Hosri, 1 24 Zahle, Maalaka5 5/5/2016 to provide t he trainers with the information which will be later dissipated to beekeepers. During this trainer, LIVCD coordinator Mansour Medawar Honey trained 13 housewives and Tasting and Nature Shop, Kaslik, Mount 1 13 5/5/2016 agricultural engineers on the Classification Lebanon differences between honey Training products and the different uses of honey by products. Honey 1 Dbayeh, Metn 30 06/30/2016 Agricultural engineers gathered Training: on June 30 th to learn about the Honey difference in the different types Quality, of honey, and detection of classification adulteration. and training Honey 1 Sin el Fil, Metn 59 07/19/2016 60 stakeholders participated in Awareness roundtable discussions to raise and the marketing challenges faced Marketing by Lebanese honey and to explore strategies to address these challenges. The proposition of an industry led 128

honey promotional campaign to support the overall hon ey sector was discussed and agreed among participants.

Training on 1 Hosrayel, Byblos 9 08/17/2016 This training focused on queen production of breeding production. queen bee at Afif Abou Chedid Agriculture and Trade Company Demonstrati 1 Majdel Selem, Marjeyoun 19 08/27/2016 As part of the series of on on Best demonstration events, JABAL Pract ices for AMEL Cooperative introduced Natural beekeepers to queen breeding Insemination and to the services offered by and Rearing this cooperative. for Honey VC: 1 Kobayat, North 16 09/07/2016 As part of the series of training for demonstration events, Kobayat beekeepers: cooperative taught beekeepers Oregano how to benefit from an Benefits on oregano beekeeping project. Honey Production - Akkar-North Official 3 Hosrayel, Mount Lebanon 160 09/20/2016 This event focused on the Launching 09/21/2016 launching of the first artificial and Opening 09/22/2016 insemination center in the Ceremony of Middle East, and initiating the Golden Arab beekeeping conference in 129

Queen Lebanon. Center

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Processed Foods

PROCESSED FOODS VALUE CHAIN UPGRADING STRATEGY – PRIORITIES OF THE WORK PLAN

The LIVCD Processed Foods Value Chain Upgrading Strategy is focused around 3 axes of intervention, with the following goals: 1) Support food processors to access market opportunities; 2) Support processors in product and process development; and 3) Assist processors in increasing efficiency and meeting food safety standards.

The LIVCD Work Plan (Year 4 and Life of Project) identified the following priorities for the Processed Foods Value Chain Upgrading Strategy:

Immediate/ short term priorities: Long term priorities: · Inform processors of potential target · Create market awareness in target markets products in high value markets, such as pickle · Facilitate horizontal and vertical linkages varieties, freekeh/bourghoul with mixes, through contract manufacturing between jams, etc. processors on one side and small firms, · Provide support in developing promotional cooperatives, and farmers on the other side plans for SMEs that include activities such as · Assist in extension services in the in-store promotions, promotional materials, implementation of international food safety and events certification (GMPs, HACCP, and ISO 22000) · Packaging and labeling upgrades for SMEs · Develop new manufacturing processes using · Improve processors’ access to food testing improved technologies facilities through leveraged investments in regional chamber laboratories

SUMMARY of PROGRESS, ACHIEVEMENTS and CHALLENGES

Processed foods value chain’s main focus for year four was on freekeh, pickles, jams, apple juice, grape syrup and upgrading the Zahle chamber laboratory’s food quality testing facilities. One of the main challenges faced this year was in the freekeh value chain, where output was below expectations due to exceedingly hot weather conditions.

The project in year 4 had major achievements in the processed foods value chain, including the successful expansion of the freekeh value chain throughout Lebanon, pickles tank fermentation technology shift along with new product development and most importantly the utilization of fruits oversupply for vinegar, apple juice and grape syrup. In support of these activities, the project gave 18 grants valued at that resulted in a leverage of from the private sector. In addition, in year 4, LIVCD provided 44 label and nutrition facts reviews for seven different processors and cooperatives in processed food, honey and olive oil value chain. LIVCD also succeeded in building sustainable vertical and horizontal linkages between different actors within the Processed Foods value chain. These included the successful linkage between a well-established

131 food processor, Wadi al Akhdar, and freekeh cooperatives in the south area and in linkage between the Balkis and Almitra company which resulted in Balkis purchasing 120,000 liters of apple juice (12,000 crates) and benefiting more than 50 farmers. LIVCD also linked processors such as Msallem and Judi with farmers.

Pickles Value Chain:

Upon the successful introduction of tank fermentation technology in year 2 and 3, LIVCD continued to provide support to processors adopting the new technology. In year 4, Msallem factory purchased 60 new tanks for pickles processing and applied for a loan to upgrade the pickles processing facility.

In addition; Msallem will serve as demo plot to implement the CO2 purging system that will increase tank fermentation efficiency. Fermentation tanks installation at Msallem factory

Following support to processors and cooperatives to develop pickled products that meet market demand for quality, LIVCD introduced the cucumber variety “Artist” which is suitable for the pickling process and signed an MOU with Fertiland (Robinson Agri’s representative in the Bekaa region) to supply seeds, irrigation equipment and fertilizers at a discounted price to farmers through a PPP to incentivize the adoption of improved cucumber varieties. result of LIVCD technical assistance in tank “Artist” Cucumber fermentation and with the new cucumber variety “Artist”, Judi, a local processor, developed a new pickle flavor called “Kabsi” popular in Iraq, Kuwait and Saudi Arabia; Lebanon’s most important pickles markets.

Freekeh value chain:

Based on the successful development of a new automated method of processing freekeh and its validation in Year 3, LIVCD facilitated the linkage between LARI and farmers to secure and plant the new wheat variety that was tested and verified in Year 3.

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Freekeh Women’s cooperative in the field LIVCD supported freekeh cooperatives to improve their productivity and quality, thus in year 4, 72 farmers cultivated and produced freekeh. The output was below expectations due to higher than normal hot weather conditions affecting productivity. Eight cooperatives have now benefited from this technology in the South and Bekaa regions. In addition, LIVCD facilitated linkages between farmers, cooperatives and processors to support the freekeh producing cooperatives access new market opportunities. As an example ” Al wadi Al akhdar” one of Lebanon’s largest food processing companies purchased from cooperatives 2.8 tons of freekeh for a total value of which is a big increase in their sales. This value would be considerably higher under normal weather conditions. In collaboration with food processors, cooperatives and farmers, LIVCD worked with LIBNOR, the Lebanese standards institute, to set standards for freekeh as a first step for setting Codex standards. The standards will be completed and ready for the Ministry of Agriculture review in the coming year. Seeing freekeh expansion and the growing freekeh demand, UNDP approached LIVCD for potential collaboration regarding assistance for cooperatives in rural areas. Discussions are ongoing and UNDP is close to funding new equipment for one of the cooperatives.

Vinegar value chain:

In year 3, LIVCD collaborated with vinegar expert , who presented to small and micro vinegar processors new methods to improve vinegar-processing methods through workshops and site visits. Based on LIVCD technical assistance and STTA vinegar expert recommendations, the Mechaalany plant underwent several upgrades including rehabilitation of the structure and added a new vinegar filtration system to dispose undesirable residues and micro bacteria in the final produce. This investment has exceeded till date.

In addition, LIVCD provided food processor Mechaalany grant support to promote its new line of natural apple and grape vinegars that will Renovated area for new vinegar tanks promote the processing of lower grade apples and grapes. This included in-store promotion following the adoption of new labels designed in January 2016 and upgrade of Mechaalany’s vinegar processing line based on LIVCD’s advice. The promotion campaign took place in supermarkets during the month of March and the in store promotion figures captured in the last quarter showed a 35 % increase in grape vinegar and 33 % increase in apple vinegar sales as compared to 2015.

Syrups and Juices:

In year 4, two new grants were approved under Juices and syrups value chain: Balkis, a fruit juice processor, and Royal Organics, a grape syrup producer.

Based on the successful trials and consumer feedback for the new apple juice introduced in year 3, Balkis invested in new cold storage unit and apple press line for a total cost of .

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In year 4, Balkis grant was approved which includes an apple juice decanter to enhance juice quality and a marketing campaign.

As part of grant support, LIVCD supported royal organics to upgrade its existing facility to meet GMP and food safety requirements. Royal Organics renovated the facility as part of its cost share and ensured proper electrical and water installation for the new equipment.

Furthermore; LIVCD also facilitated a feasibility study on setting up an apple juice factory in Akoura. The beneficiary is , an Renovated production area at Royal Organics apple orchard farmer and entrepreneur.

LIVCD supported the Ein Ebel cooperative in purchasing new carob molasses equipment, a carob cooker, a pressing machine, a bucket elevator and a steam system needed to improve quality, reduce the cost of processing and increase capacity.

Ein Ebel Cooperative

LIVCD assisted Lebanese Mezze in conducting a joint product promotion campaign in five Spinneys. The efforts put through the co-investment with Lebanese Mezze resulted in a significant increase in both their local and export sales. In addition to that and following LIVCD’s support to exporting Mezze products to the Gulf countries, the brand was able to export a second order to Spinneys Qatar and has signed a Lebanese Mezze in UAE contract to supply Union COOP Society in Dubai (United Arab Emirates) the first order of Mezze Brand into the country.

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Year 4 Processed Foods Technical Assistance Provision Axis 1: SUPPORT FOOD PROCESSORS AND COOPERATIVES TO ACCESS MARKET OPPORTUNITIES, TO ENTER NEW MARKETS AND EXPAND SALES IN EXISTING ONES

Technical Assistance TA # Locations Date Description

LIVCD staff: In collaboration with AUB, LIVCD a workshop on Event- 02/10/2016 - packaging basics and value in processed food. In addition Dr. Develop packaging into profit, not Beirut 0912 02/10/2016 Mohammad Abiad “Packaging specialist” provided tools and extra cost recommendations on how to make it cost effective.

Axis 2: SUPPORT PROCESSORS AND COOPERATIVES IN PROCESS AND PRODUCT DEVELOPMENT

Technical Assistance TA # Locations Date Description

Mount Lebanon STTA: as part of Lebanese mezze grant objectives in 05/04/2016 - supporting farmers, a training was done in order to better Good Agricultural practices for Event-0963 Keserouan 05/04/2016 understand main challenges and problems restricting farmers vegetables and fruit production Mayrouba growth.

LIVCD staff: The main objective of the training is to provide 02/11/2016 - Training on how to operate the Event-0907 South – Sour cooperative members methods and skills to improve 02/11/2016 new Carob equipment production practices to ensure efficient process.

Mount Lebanon STTA: As part of Mymoune grant objectives in supporting Training on good agricultural 01/21/2016 - Event-0889 Metn farmers, a training was done in order to better understand practices and increase in raw 01/21/2016 main challenges and problems restricting farmers growth. material productivity Sin el Fil

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Axis 3: ASSIST LEBANESE FOOD PROCESSORS INCLUDING COOPERATIVES TO INCREASE EFFICIENCY AND MEET FOOD SAFETY REQUIREMENTS

Technical Assistance TA # Locations Date Description

Product development - Roasted TA-0121 Bekaa 1/7/2016- LIVCD staff: LIVCD team had undergone a technical assistance on Freekeh freekeh processing with al Mhaidsseh cooperative at the Bekaa 1/7/2016 region. The wheat used for trials is ICHARACHA variety developed by LARI. Good Agricultural Practices for TA-0120 Baalbeck 5/20/2016- STTA: To improve agricultural practices for rose petals used for Roses destined for Processed Food food processing, the training was conducted for 17 farmers in 5/20/2016 Tam mine that produce and deliver roses for different processors for the production of rose water, syrups and rose jam…

Guiding Kouni Anti to implement LIVCD staff: LIVCD team provided recommendations and 02/22/2016 - the needed requirement of GMP in TA-0118 Akkar – Noth equipment specifications to Kouni Anti cooperative in order to 02/22/2016 term of infra-structure before they meet GMP requirements for the new facility. upgrade their processing center Bekaa Cultivating the suitable variety of 12/02/2015 - LIVCD staff: Good agricultural practices on the new wheat TA-0112 Baalbeck durum wheat for freekeh 06/01/2016 variety provided by LARI. processing Btadhi

Year 4 Processed Foods Grants Axis 1: SUPPORT FOOD PROCESSORS AND COOPERATIVES TO ACCESS MARKET OPPORTUNITIES, TO ENTER NEW MARKETS AND EXPAND SALES IN EXISTING ONES

Grant USD Grant Title Purpose Status Grantee Date Number Value

Natural Apple G-LIVCD- LIVCD aims to increase Closed. Societe $ 9/16/2014- & Grape 043 participation of farmers and Libanaise de In-Kind 3/31/2016

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Vinegar cooperatives in the processed foods Boissons Grant Consumer value chain through providing (Machaalany) Awareness and linkages with a leading food Re-Launch processing company, reintroducing Campaign natural apple and grape vinegar into the Lebanese market, creating new sustainable markets for apple and

grape farmers to sell products that would otherwise go to waste, supporting a leading processor in creating successful market linkages via co-financing a joint product promotion, and providing trainings on sorting and packaging to farmers, thus ensuring the sustainability of their production input to processors. Increasing G-LIVCD- LIVCD’s goal is to increase the sales Closed. Lebanese Mezze 1/12/2015- production 064 of farmers providing raw material to Simplified 1/12/2016 capacity and G-LIVCD- Lebanese Mezze through increased Grant Expanding Sales 065 sales of its products. The project of Lebanese aims to upgrade Lebanese Mezze Mezze production through the introduction In-Kind of new technology and increase its Grant brand recognition by implementing joint product promotion and marketing support to enter new outlets. Increase G-LIVCD- LIVCD will increase demand for raw USAID/LIVCD provided training Mymoune LIVCD 10/1/2015- farmers’ 044 material purchases from area for Mymoune farmers supplying committed 10/30/2016 technical farmers, raise farmer’s ability to fruit and vegetables on Good funds: knowledge and supply high quality raw material to Agricultural Practices income by Mymoune or other food processors, and ensuring raise Mymoune’s food safety and USAID/LIVCD co-invested in a Mymouné Mymoune’s product quality standards through chilling room for storage and cost share: 137 ability to the implementation of a Hazard assorted food packing and food expand sales via Analysis and Critical Control Point processing equipment a food safety System, increase product sales, and and quality enhanced Mymoune’s competiveness USAID/LIVCD supported assurance with competing brands in the local rebranding for an upgraded logo, program, and a and international market by label, packaging and online visibility new and implementing joint product USAID/LIVCD supported a improved promotion activities, providing marketing campaign to promote marketing market and branding support. the new image both in Lebanon strategy LIVCD also focused on product (consisting of 15 points of sale and development to improve exports. outdoor billboards) and in France with two high-end food retailers New US market channels achieved including an agreement to supply Dean and Deluca specialty food outlets in various locations across and Carmela Specialty Foods in Michigan, Detroit Recent visibility in the media as seen in CRAFT by Under My Host's summer edition (US/international readership) Mymoune products won five UK Great Taste Awards in August 2016 Support G-LIVCD- Support Rural Delight Cooperative Closed Rural Delight LIVCD 10/23/2015- partner Rural 134 to increase income of women committed 4/22/2016 Delights’ members during the 3 day event and funds: participation in ensure sustainable sales on a longer the BCF Beirut term through linkages and outreach and Rural Cooking delight cost Festival 2015 to Facilitate the Cooperative’s share: increase sales introductions and outreach to new market opportunities and increase 138 of 19 small linkages with several traders, MSMEs and distributors, and retailers during the cooperatives event Promote the sales outlets for the products, including the recently opened Rural Delights Boutique in Gemmayze and ‘The Box’ by NGNO. Upgrade the G-LIVCD- Increase access to markets in Ongoing: Balkis will start producing Balkis LIVCD 5/17/2016- production 186 targeted value chain apple juice in October and committed 3/17/2017 capability of Raise market awareness on the November. funds : Balkis apple newly produced fresh apple juice juice factory so with a projected increase in sales of and that fresh apple 25% at year 1 of project grantee juice can make implementation. cost share: a competitive entry into the Lebanese market. Increase the G-LIVCD- Full rebranding of Msallem identity: On-going: Total 9/16/2014- competitiveness 198 and Msallem is preparing for expected Budget: $ 3/31/2016 of “Boutros 209 growth, particularly international Msallem started the preparation Msallem EST” growth; thus rebranding products with the marketing agency for LIVCD through into a consolidated brand is needed. product rebranding. committed upgrading their This will create a greater sense of funds: production and brand unity across the business. branding. and grantee cost share:

Chamber of G-LIVCD- Support the Chamber of On going: Preparing marketing plan FQC-Zahle Total 4/18/2016- commerce 140 Commerce, Industry and Agriculture upon the equipment installation. Budget: 4/17/2017 Zahle of Zahle and Bekaa (CCIAZ) by - upgrading the analytical laboratory LIVCD 139

which along with a Pilot Plant is part committed of CCIAZ’s Food Quality Center funds (FQC). The project aims to improve the laboratory service offering to and the processors, exporters and farmers grantee through the following marketing cost share activity Increase the awareness of is farmers, exporters, and food processors of the expanded services of the FQC through a marketing campaign.

Axis 2: SUPPORT PROCESSORS AND COOPERATIVES IN PROCESS AND PRODUCT DEVELOPMENT

Grant USD Grant Title Purpose Status Grantee Date Number Value

Increase farmers’ G-LIVCD- LIVCD will increase demand for raw material On-Going: Most of Mymoune 10/1/2015- technical 044 purchases from area farmers, raise farmer’s Mymoune equipment In-Kind 10/30/2016 knowledge and ability to supply high quality raw material to has been delivered to Grant income by Mymoune or other food processors, raise the factory; Mymoune ensuring Mymoune’s food safety and product quality hired a Quality Mymoune’s ability standards through the implementation of a control to follow up to expand sales via Hazard Analysis and Critical Control Point on all HACCP a food safety and System, increase product sales, and enhanced requirements based quality assurance Mymoune’s competiveness with competing on LIVCD program and an brands in the local and international market by recommendations. improved implementing joint product promotion activities, marketing strategy providing market and branding support. LIVCD also focused on product development to improve exports. Introducing New G-LIVCD- LIVCD aims to establish a PPA with Mechaalany, On-going. E2 are in Societe 4/17/2015- Technology for E2, and National Instruments to design and build the final phase of fine Libanaise de In-Kind 140

Automated 077 an optical cucumber sorting machine and will tuning the optical Boissons Grant Cucumber Sorting pilot the new technology with Mechaalany. sorter for pickles that (Machaalany) LIVCD will open doors for fresh fruit and will automatically sort vegetable processors in the future to benefit the cucumbers at a from this innovative equipment to reduce costs predefined rate. and improve quality and will increase competiveness of the producers in the market will spur additional purchases and increased income of the farmers who produce cucumbers and wild cucumbers.

Improve the G-LIVCD- To upgrade SESOBEL rural food production, the On-going: Sesobel Sesobel LIVCD 4/20/2016- competitiveness of 176 project main elements: Equipment upgrade and started with the committed 4/20/2017 SESOBEL facility renovation: Upgrade the existing plant facility renovation to funds: with additional and appropriate equipment as ruralproducts via meet HACCP per HACCP requirements HACCP Certification: upgrading their requirements. Most of and Conduct HACCP training for the plant staff to food processing ensure a thorough understanding of food safety, the equipment is grantee unit in Kfarhouna hazard analysis, risk assessment, teamwork and ready to be installed. cost share: – Jezzine. efficiency within SESOBEL. Farmers training: Product development Conduct “Best Agricultural Practices” trainings for farmers to reach and maintain high quality of sessions and farmers end product at field level. Review and update of training were label designs to meet market demand. conducted.

As part of a Public G-LIVCD- The main objective is to expand the freekeh On going: Equipment Kfarsir LIVCD 4/18/2016- Private 168 value chain through increasing the cooperative was installed and committed 4/18/2017 Partnership (PPP) market reach and increase by the end of the season was harvested. funds: with National project, the cooperative’s annual revenue by

Instruments (NI), which is 107% of 2014 revenue as a and provide assistance result of introducing new wheat grain variety grantee to the and new processing technology to process cost share: Cooperative freekeh that will improve quality, meet food Association for safety standards and increase capacity in order Food Processing in to respond to market demand. Kfarsir (Simar Al

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Rif) Increase the number of farmers cultivating arid land by planting a new high-productivity wheat variety

LIVCD Support to The main objective is to increase revenues of committed Women’s coop funds: the cooperative by 15% and decreasing cost of On going: water for agricultural G-LIVCD- 4/15/2016- production by 15% Increase purchase of raw filtration system is Wadi Al Teim production in 174 and 4/14/2017 materials from local farmers by 10%. installed. Dahr el Ahmar grantee (Wadi Al Teim) cost share:

Total Budget: LIVCD Support Najmet Al The main objectives of the project is increase committed Sobeh Food revenues of the cooperative by 15% through On going: water G-LIVCD- funds: 4/15/2016- Processing decreasing cost of production by 15% and filtration system and Mhaidseh 175 4/14/2017 Cooperative in Increase purchase of raw materials from local freezer are installed. and Mhaidseh-Bekaa. farmers by 10%. grantee cost share:

Improve quality and meet food safety standards Total of an existing product: grape molasses On going: Royal Upgrading the Budget: $1 Develop a new product (grape syrup) in organics started with production line of alignment with food safety standards. the facility renovation grape molasses at G-LIVCD- LIVCD 5/16/2016- Increase productivity of the Royal Organics Co’s to meet HACCP Royal organics Royal Organics 185 committed 11/16/2016 grape press. requirements and the Co. in Rachaya Al Increase purchase of raw material from local cost share grapes press line and Wadi, Bekaa. farmers. is Maximize the farmers’ profit by reducing their tanks are installed. and waste. Grantee

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committed cost share is

Support the Chamber of Commerce, Industry and Agriculture of Zahle and Bekaa (CCIAZ) by upgrading the analytical laboratory which along Total with a Pilot Plant is part of CCIAZ’s Food Budget: Quality Center (FQC). The project aims to - improve the laboratory service offering to LIVCD processors, exporters and farmers through the On going: FQC committed following: Increase the performance of CCIAZ’s started with the funds G-LIVCD- 4/18/2016- FQC FQC through provision of new equipment that facility renovation to FQC 140 4/17/2017 will allow FQC to perform new tests that will meet ISO and the benefit farmers, processors and requirements. grantee exporters.Achieve international certification, cost share ISO 17025 of the new tests to meet local and is international standards.

Increase the awareness of farmers, exporters, and food processors of the expanded services of the FQC through a marketing campaign. As part of a Public The main objective is to expand the freekeh LIVCD Private value chain through increasing the cooperative committed Partnership (PPP) market reach and increase by the end of the On going: Equipment Cooperative funds: with National project, the cooperative’s annual revenue by Association for G-LIVCD- were installed and Instruments (NI), which is as a result of introducing new Handicrafts in and Kana 4/7/2016 024 season was harvested. to enhance the wheat grain variety and new processing Kana – Holy cooperativ production of technology to process freekeh that will improve Family e cost freekeh by quality, meet food safety standards and increase share: Cooperative capacity in order to respond to market Association for demand.Increase the number of farmers

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Handicrafts in cultivating arid land by planting a new high- Kana – Holy productivity wheat variety. Family Increased access to markets in targeted value chain Enable access to and foster the adoption of Total TASDIER portal that will enable agro-food budget: The Federation exporters to obtain quick information on export LIVCD Upgrade of the of Chambers of requirements to major export destinations committed technical On going: All Commerce, (Gulf, North America, EU and Australia). funds: regulation portal standards are Industry and G-LIVCD- 6/20/2016- TASDIER at collected and being Agriculture in 184 Increased business linkages in target value chains and 12/19/2016 FCCIAL website organized to meet Lebanon Strengthen business linkages between exporters grantee new website format. (FCCIAL). and FCCIAL , by enhancing TASDIER portal so cost share: it attracts the largest number of agro-food exporters to help them avoid rejection at the borders and as a result reduce losses, gain credibility with their clients and increase their annual sales On going: Product LIVCD LIVCD aims to support cooperative to committed Support to Al development sessions utilize oversupply of raw materials such funds : Atayeb Food were conducted for G-LIVCD- as plums and apples and to decrease Al Atayeb 5/18/2016- Processing dried fruit product 187 production cost by 20 % of Al Atayeb cooperative and 3/18/2017 Cooperative in through the use of new technology and standardization. grantee Kfardzebian a 30% increase in sales during the life of New equipment to be cost share: the project. installed in October. LIVCD aims to support Balkis to Upgrade the LIVCD G-LIVCD- upgrade the production capability and apple juice On-Going: preparing 5/17/2016- production Balkis committed 186 quality of Balkis and Increase apple farmers’ for the apple season. 3/17/2016 capability of Balkis income through purchasing additional low grade funds : apple juice factory apples from them.

144 so that fresh apple and juice can make a grantee competitive entry cost share: into the Lebanese market.

As part of a Public The main objective is to expand the freekeh Private value chain through increasing the cooperative Partnership (PPP) market reach and increase by the end of the LIVCD with National project, the cooperative’s annual revenue by committed Instruments (NI), which is as a result of introducing new On going: Equipment the Agricultural funds: to enhance the G-LIVCD- wheat grain variety and new processing were installed and Cooperative 4/18/2016- production of 178 technology to process freekeh that will improve season was harvested. Association in and 4/18/2017 quality, meet food safety standards and increase freekeh by the Kfardounine grantee Agricultural capacity in order to respond to market demand. cost share: Cooperative Increase the number of farmers cultivating arid Association in land by planting a new high-productivity wheat Kfardounine variety

As part of a Public The main objective is to expand the freekeh Private value chain through increasing the cooperative Partnership (PPP) market reach and increase by the end of the LIVCD with National committed project, the cooperative’s annual revenue by Cooperative Instruments (NI), funds: which is as a result of introducing new On going: Equipment Association for to enhance the G-LIVCD- wheat grain variety and new processing were installed and handicraft 6/29/2016- production of and Kana 024 technology to process freekeh that will improve season was harvested. Production in 6/29/2017 freekeh by cooperativ quality, meet food safety standards and increase Kana Holly Cooperative e cost capacity in order to respond to market demand. Family Association for share: Handicrafts in Increase the number of farmers cultivating arid Kana – Holy land by planting a new high-productivity wheat Family variety

As part of a Public G-LIVCD- The main objective is to expand the freekeh On going: Equipment Cooperative LIVCD 5/11/2016-

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Private 104 value chain through increasing the cooperative were installed and Association for committed 5/11/2017 Partnership (PPP) market reach and increase by the end of the season was harvested. Planting and funds : with National project, the cooperative’s annual revenue by Processing

Instruments (NI), which is as a result of introducing new Medicinal and and to enhance the wheat grain variety and new processing Aromatic Herbs Grantee production of technology to process freekeh that will improve in Nabatiyeh committed freekeh by quality, meet food safety standards and increase Caza - Al-Shark, cost share Cooperative capacity in order to respond to market demand. South Lebanon. is of Association for which NI Increase the number of farmers cultivating arid Planting and cost share land by planting a new high-productivity wheat Processing is variety Medicinal and Aromatic Herbs in Nabatiyeh Caza - Al-Shark, South Lebanon.

The main objective is to expand the freekeh As part of a Public value chain through increasing the cooperative Private market reach and increase by the end of the LIVCD Partnership (PPP), project, the cooperative’s annual revenue by committed to enhance the Cooperative which is as a result of introducing new On going: Equipment funds : production of Association for G-LIVCD- wheat grain variety and new processing was installed and and 7/1/2016- freekeh by the Agricultural 023 technology to process freekeh that will improve season was harvested. Grantee 6/30/2017 Cooperative Production in quality, meet food safety standards and increase committed Association for Bent Jbeil Caza. capacity in order to respond to market demand. cost share Agricultural is Production in Bent Increase the number of farmers cultivating arid Jbeil Caza. land by planting a new high-productivity wheat variety

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The main objective is to expand the freekeh Total As part of a Public value chain through Increase by the end of the Budget: Private project, the Association’s annual revenue by Partnership (PPP) which is a result of introducing new LIVCD with National wheat grain variety and new processing committed Instruments (NI), On going: Equipment technology to process freekeh that will improve to enhance the G-LIVCD- was installed and Wada-Deir Al fund is 5/11/2016- production of 179 quality, meet food safety standards. season was harvested. ahmar and 1/11/2017 Increase the number of farmers cultivating arid Grantee freekeh by Women's land by planting a new high-productivity wheat committed Association of variety. cost share Deir El Ahmar- Encourage organic cultivation by specifying one is (W.A.D.A.), Bekaa roaster for organic use.

Increase the G-LIVCD- The main Increase Msallem total sales by 20% On going: Total 9/16/2014- competitiveness of 198 and 209 due to the increased tank fermentation and Budget: $ 3/31/2016 “Boutros Msallem decreased production cost. Msallem purchased 60 EST” through tanks and signed with LIVCD upgrading their Support 15 new farmers in establishing business 15 farmers for the committed production and linkages and in adopting forward contracts with new season. funds: branding. Msallem Upgrading production practices for 50 farmers and grantee Conserving the environment by reducing cost share: industrial waste water dumping in soil

Axis 3: ASSIST LEBANESE FOOD PROCESSORS INCLUDING COOPERATIVES TO INCREASE EFFICIENCY AND MEET FOOD SAFETY REQUIREMENTS

Grant Title Grant Number Purpose Status Grantee USD Date

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Value

Upgrading the G-LIVCD-067 To alleviate the situation of the carob farmers and the Closed. The 2/23/2015- Line of cooperative, the project focuses on rehabilitating the Agricultural 2/22/2016 Production of center where the processing line is implemented in Cooperative In-Kind Carob Molasses order to comply with the minimum GMP Association Grant at Ein Ebel requirements, purchasing equipment needed to reduce for the cost of processing and increase capacity, designing Production a label with nutritional facts for the carob molasses and Food produced by the cooperative, provide trainings for the Processing cooperative on food safety, and providing technical in Ein Ebel assistance for carob farmers on sound practices to manage and harvest their carob orchards. Support to G-LIVCD-081 The main objectives of the project are to increase Closed. Hariss 3/23/2015- Cooperative Al sales of the cooperative’s existing products by 30% as Cooperative 3/22/2016 Imad for the result of improved quality and introduction of for Food In-Kind processing of technology, introduce a new product, “freekeh”, to Processing Grant agriculture the cooperative to respond to market demand, products in increase sales of raw materials by local farmers to the Hariss cooperative by 20%, provide better quality products to local community members who process their products at the cooperative, and test and debug a prototype of an automated “freekeh” roaster machine that will be made accessible to other cooperatives and MSMEs. Increase G-LIVCD-044 LIVCD will increase demand for raw material This grant is on-going Mymoune 10/1/2015- farmers’ purchases from area farmers, raise farmer’s ability to Most of Mymoune 10/30/2016 technical supply high quality raw material to Mymoune or other equipment has been In-Kind knowledge and food processors, raise Mymoune’s food safety and delivered to the Grant income by product quality standards through the implementation factory; Mymoune ensuring of a Hazard Analysis and Critical Control Point hired a Quality Mymoune’s System, increase product sales, and enhanced control to follow up ability to expand Mymoune’s competiveness with competing brands in on all HACCP sales via a food the local and international market by implementing requirements based safety and joint product promotion activities, providing market on LIVCD

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quality and branding support. LIVCD also focused on product recommendations. assurance development to improve exports. program and an improved marketing strategy

Year 4 Processed Foods Training Provision Axis 1: Marketing No trainings under Marketing to report for this year. Axis 2: Aggregation

# of # of Training Purpose Trainings Locations Date Description Attendees Held

Training on Jam 1 Jbeil 5 7/1/2016 The training was done as part of product and process development in order to Making improve the staff knowledge and Standardize the jam recipe. Product 1 Jezzine N/A 8/3/2016 The objective of the session was to conduct tests on pickles during process as Development Session part of product development for sesobel Training on Freekeh 1 AUB 42 4/28/2016 The training was done in order to introduce the freekeh product to the students process for AUB beirut with a quick review on Freekeh process and its health benefits. Students, who students have never heard of freekeh, got to know about the importance of its nutritional value.

Axis 3: Production

# of # of Training Purpose Traini Locations Date Description Attende ngs 149

Held es

Training on ER to Eyn Ebel 1 Nabatiueh-Bint 6 2/19/2016 The objective of the session was to train the cooperative members to be cooperative members Jbeil responsible for all mitigation measures and to evaluate the environmental situation of the cooperative Training session on green 1 Sour 10 4/15/2016 The training was done in order to improve the freekeh quality through wheat harvesting empowering farmers with knowledge and skills and improving production practices for better productivity

South - HACCP training for 1 Jezzine 10 05/04/2016 HACCP training for Sesobel Sesobel Kfarhouna

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Rural Tourism

RURAL TOURISM VALUE CHAIN UPGRADING STRATEGY – PRIORITIES OF THE WORK PLAN

The LIVCD Rural Tourism Value Chain Upgrading Strategy is focused around 3 axes of intervention, with the following goals: 1) Support promotional and marketing campaign, increase demand for rural tourism, and reduce market failure to match supply and demand; 2) Create synergies within the rural tourism value chain to aggregate rural tourism services/products and lnk in small actors; and 3) Upgrade local actors and increase the quality and quantity of products and services.

The LIVCD Work Plan (Year 4 and Life of Project) identified the following priorities for the Rural Tourism Value Chain Upgrading Strategy:

Immediate/ short term priorities: Long term priorities: · Provide support to increasethe quality of · Facilitate stakeholders’ access to finance rural hospitality businesses, including · Facilitate the creation of synergies and restaurants, through the implementation of encourage collective action at the national quality services and food safety standards and local (municipalities and clusters) level · Support upgrades to existing rural tourism · Facilitate promotion of local and thematic products and services, and development of rural tourism destinations based on Regional new ones – Based on local rural tourism Strategies & innovative products to domestic strategy and action plans - at the municipality tourist and to the Lebanese diaspora and cluster level · Facilitate the development of new innovative rural tourism packages and products · Facilitate information exchange between electronic promotional websites and providers of rural tourism products and packages

SUMMARY OF PROGRESS YEAR 4: ACHIEVEMENTS AND CHALLENGES During Year 4 the rural tourism value chain implemented more than 30 activities, events and trainings related to development of rural tourism in Lebanon. The most significant activities were the following: · Launching of the DIYAFA Association Website on February 16 2016 (www.diyafa.org) · Opening of the Rock Climbing Site with 177 climbing routes in Tannourine on June 11 2016 · Third Edition of the Travel Lebanon Show help at the Beirut Hippodrome May 24-28 2016 · Launching of the Rural Tourism Strategy for Aley on June 4 2016 and that for Menjez on February 27 2016 · Inauguration of the Douma Side Trail with the Lebanon Mountain Trail on August 27 2016 · Developing the Fall Festival with AUB Nature conservative center during the three month August, September, and October of 2015

The various rural tourism activities implemented allowed stakeholders to cooperate and increase the competitiveness of the rural tourism value chain. LIVCD’s work reflects the strategy that LIVCD

151 developed and endorsed by the Lebanese Ministry of Tourism and the Lebanese Government in 2013 built around three pillars of the tourism strategy: (1) marketing and promotion, (2) cluster development, (3) cross cluster improvement of quality of rural tourism services.

Marketing and promotion: With the support of LIVCD, Hospitality Services held the Lebanon Traveler show between May 24-28, 2016 at the Beirut Hippodrome to increase market outreach for around 40 rural tourism stakeholders. This event helped the exhibitors reach different age groups. They were able to present the different rural tourism packages as well as different products.

Regional cluster development: LIVCD supported the development of the following rural tourism clusters: Batroun/Jbeil, Zahle/Bekaa, Jezzine and Hadath el Jebbe/Tannourine/Ehmej through the support to local tourism initiatives and projects and the support to Beyond Beirut to facilitate the cooperation, dialogue and common action at the cluster level. LIVCD’s intervention this year focused on working with PRODES to develop rural tourism packages between Jbeil and Batroun regions. “Promotion et Developpement Social” PRODES is a Lebanese NGO founded in 1998 with a mission to promote active, positive and responsible participation of citizens in Lebanese society, respecting their traditions, and ensuring greater availability of opportunities for personal and collective improvement. PRODES beneficiaries are preferably women and youth, as they will play a particularly important role in the local planning and social mobilization process.

Cross-cluster quality improvement: LIVCD continued to work with the Lebanese Mountain Trail Association (LMTA) to improve the qualifications and knowledge of local guides across Lebanon. During this year, a new side trail has opened to hikers in Douma, part of Batroun District on August 27, 2016.

This year has laid the foundation for the development of LIVCD’s rural tourism exit strategy and discussions were initiated with the Ministry of Tourism and key rural stakeholders to hold a national tourism forum in the upcoming year to review progress of the current tourism strategy. This event will most likely be held during December 2016.

Key Activities

Darb el Karam Trail LIVCD facilitated the development of the first food trail in Lebanon. The activity was carried out by the Economic and Social Development unit at the American University of Beirut (AUB) in close collaboration with the Food Heritage Foundation. The trail, called “Darb el Karam”, is a food tourism network connecting nine villages in Higher Shouf and West Bekaa. It proposes thematic packages by harvest seasons where visitors can participate in activities such as picking fruit and making mouneh (traditional food). Tourists can also eat at the houses of food producers and in “tables d’hôte” where they enjoy local culinary specialties. The network includes more than 20 local MSMEs. The trail started to be active on April 1 2015.

Fall festival with AUB NCC The AUB/NCC lower Shouf grant aims to develop the Fall Festival for the Al-Khreibeh, Damour and Ouarhaniyeh villages. Damour is located on Lebanon’s southern coast and the villages of Ourhaniyeh and Barouk are located in the highlands of Mount Lebanon, approximately 30 km driving distance from Damour towards to East the three selected villages can be dealt with a cluster, which one can visit on one or two days. The activity encountered several challenges, especially in terms of coordinating activities between the villages. Nonetheless, the AUB/NCC team was able to organize a successful fall program. During the first month of 2016 the work focused on marketing, promotion, and ensuring sustainability of the program.

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Launching of the Diyafa Website The launching of the website (www.diyafa.org) took place on February 16, 2016 in Beirut in the presence of the Minister of Tourism Michel Pharaon and USAID Mission Director Carolyn Bryant in addition to many rural tourism stakeholders.

The Diyafa website is still operational and it is a leading network in the rural tourism and hospitality industry in Lebanon, with distinctive destinations and a local reputation for uniqueness. Diverse destinations include historical icons, nature reserves and traditional The Minister of Tourism and the USAID team at the properties. Furthermore, guesthouses part of the launching of the Diyafa website DIYAFA network offer guests extraordinary places created by combining traditional architecture, unique structure, and magnificent features.

Opening of the Rock Climbing Site LIVCD and the Municipality of Tannourine celebrated the opening of the Rock Climbing Site on June 11 under the patronage of the Ministry of Tourism at the Nahda Sport Center in Tannourine. Newly arrived USAID Mission Director Anne Patterson attended the event and during her presentation stressed the importance of this site in improving the region’s economy, by attracting investment and creation of job opportunities. Rural tourism represents a vital sector which can contribute to economic growth in Lebanon’s rural areas.

Ehmej Association for Development project The goal of the project is to increase competitiveness of the rural tourism value chain in Ehmej and the “Hadath Al -Jebbeh- Tannourine- Laqlouq- Ehmej” Cluster. To increase competitiveness, LIVCD developed during the last four month of the year 2015 a winter indoor resting area to the Ehmej Park which allows this Park to be open during the winter season, in addition the project increased the accommodation capacities through the establishment of four 20 meter squares wooden bungalows and equipping them with the needed basic equipment during The Ehmej site supported by USAID the last four month of 2015 and the first month of the year 2016.

Rural Tourism activity in the Shouf Shouf Biosphere Reserve in collaboration with LIVCD invited tour operators and rural tourism stakeholders to experience a promotional day package on September 24 to the Shouf. The aim of the activity was for tour operators to discover and explore the region and to promote it as a local tourism destination to their potential clients. The tour operators showed great interest in marketing this package to their customers during summer and spring seasons. They shared comments on the package itinerary to help the Shouf Biosphere Reserve improve products and services on offer.

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Third Edition of the Travel Lebanon Show Hospitality Services with the support of LIVCD and the Ministry of Tourism organized the Travel Lebanon exhibition for the third consecutive year which showcased Lebanon’s’ richest touristic destinations. The event took place between May 24 and May 28, 2016 and brought together 60 tour operators, NGOs, associations and municipalities in support of domestic tourism. 24,000 visitors explored 400 square meters of exhibition space and discovered more of Lebanon’s hidden beauty spots, where tourism specialists offer a range of exciting packages. This initiative aimed at improving rural touristic activities in Lebanon and at contributing to the country’s economic growth by driving investments, creating jobs and economic opportunities.

OpeningOp en in g of thet he TravelT ra ve l LebanonLe ba no n 201620 16 exhibitione xh ib it io n

Launching of the Rural Tourism Strategy for Aley On June 4, LIVCD and the DELTA Association celebrated the launching of the Aley Rural Tourism Strategy under the patronage of the Ministry of Tourism at the Association for Forests, Development and Conservation (AFDC) and the Association for Youth Hostels and Environment Stakeholders including Ministers of Agriculture and Tourism celebrating the (HEY) at the Youth Hostel launch of the Aley Rural Tourism Strategy Facility in Ramlieh located in the Caza of Aley. The goal of the strategy is to ensure a sustainable approach towards improving rural tourism, local products and the development of local opportunities.

Launching of the Rural Tourism Strategy for the Village of Menjez: On February 27, LIVCD launched the Rural Tourism Strategy for Menjez, a village located in Akkar in northern Lebanon that boasts archeological sites, including a 7000 year-old megalithic tomb and the ruins Roman temple constructed from black rocks. The launch was organized in coordination with the municipality of Menjez, and more than 30 people attended the event, among them the Mayor of Menjez, a Ministry of Tourism representative and local stakeholde rs. The event is part of the Lebanon’s rural tourism strategy adopted by the Prime Minister and the Minister of Tourism in February 2015. LIVCD is a key partner in the creation and implementation of the rural tourism strategy and supports seven rural tourism

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projects around Lebanon. In addition to promoting the town’s archeological sites, the strategy also creates touristic packages for visitors.

Attendees of the Rural Tourism Strategy event visiting archeological sites in Menjez

LMT- Inauguration of the Douma Side Trail: On August 27, the Lebanon Mountain Trail Association with the collaboration of the Municipality of Douma, the Committee of Douma Festivals and LIVCD celebrated the launch of the Douma Side Trail, in the District of Batroun, North Lebanon, which is part of the Lebanon Mountain Trail (LMT). The Douma side trail was developed by the Lebanon Mountain Trail Association (LMTA) with support from LIVCD in order to improve rural tourism attraction in Douma village.

Hikers trying out the new Lebanon Mountain Trial side trail

PRODES- Upgrading the Batroun and Byblos rural routes network: During April and June of 2016 PRODES held different training for local women and youth on Eco-guiding and rural tourism management in addition to different workshops to update rural packages in the area of Batroun and Byblos. As a result, these trainings and workshops aimed to create within the circuit new and attractive tourism packages and activities.

Value Chain Trainings, Workshops and Event:

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Target Date( Name/Type of # Location Grant Trainer Benefic Description s) Event/Training title beneficiaries iaries

Small business Results of the Ecotourism G-LIVCD-77 Increase competitiveness and Creating linkages between different 2/25/1 Maaser el Network in Shouf of the Shouf Biosphere Reserve (SBR) 25 Guest biosphere reserves for ecotourism 6 chouf Biosphere Reserve rural houses purpose from the area Small business Rock climbing for rural and G-LIVCD-082 Rock climbing for rural Develop tour packages around development in Tannourine Tannourine 36 Guest 3/15/1 development in Tannourine Tannourine Rock climbing site. 6 houses from the area

Small business G-LIVCD-144 Increasing the and 6/14/1 “Rural Routes” In Byblos competitiveness of Rural Tourism Maad 35 Guest Promote rural activities in the area. 6 and Batroun. Network -“Rural Routes”- In Byblos and houses Batroun. from the area

local women Training of local women food Ghbele- G-LIVCD-143 Increasing the 6/8/20 food producers on food produce Improve local women food producers on Keserwan competitiveness of Rural Tourism in 17 16 safety rs products development and food safety Jabal Moussa

Dimitriades G-LIVCD-143 Increasing the local 6/14/2 Improve the quality of Guest houses Training of local guest Guest house competitiveness of Rural Tourism in 6 guest 016 services. houses on quality standards in Ghbeleh Jabal Moussa houses

6/22/1 G-LIVCD-144 Increasing the Workshop on Eco Guiding competitiveness of Rural Tourism local 6 Maad 24 Promote rural activities in the area and Rural Tourism Network -“Rural Routes”- In Byblos and women Management Batroun.

historical 6/27/1 churches in 6 G-LIVCD-144 Increasing the 14 hometown Workshop on Eco Guiding competitiveness of Rural Tourism Local Promote and introduce rural activities in 6/30/1 villages of 11 and Rural Tourism Network -“Rural Routes”- In Byblos and guides the area 6 each local Management Batroun women 7/7/16 guide

Restaur ants and G-LIVCD-77 Increase competitiveness guest Promotion of tourism in the region and 7/1/16 Training on clustering and Shouf of the Shouf Biosphere Reserve (SBR) 27 houses increase the income of the different package creation rural in the Rural Tourism Stakeholders Shouf reservce

Training of local guest G-LIVCD-143 Increasing the 7/13/1 Guest Improve the quality of Guest houses houses on quality standards Mchati competitiveness of Rural Tourism in 6 6 houses services Jabal Moussa 7/18/1 6 G-LIVCD-144 Increasing the Training for young women competitiveness of Rural Tourism Local on Rural and Local tour Maad 17 Promote rural activities in the area Network -“Rural Routes”- In Byblos and women 7/20/1 Guide Training Batroun 6

7/23/1 Training for young women G-LIVCD-144 Increasing the 6 on Rural and Local tour Batroun- competitiveness of Rural Tourism Local 15 Promote rural activities in the area 7/24/1 Guide Training Jbeil Network -“Rural Routes”- In Byblos and Women Batroun 6

8/4/16 Training on Jam Making Maad G-LIVCD-144 Increasing the 20 Women Applying cooking information and tips in competitiveness of Rural Tourism Produce their own households and in their

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Network -“Rural Routes”- In Byblos and rs production. Batroun

G-LIVCD-144 Increasing the Women Applying cooking information and tips in 8/11/1 competitiveness of Rural Tourism Maad 20 Produce their own households and in their 6 Training on Pickle Making Network -“Rural Routes”- In Byblos and rs production. Batroun

G-LIVCD-018 Promoting and Increasing Produce 8/10/1 Recommendations on marketing Ehmej Competitiveness of Rural Tourism in 18 rs of the 6 Marketing assessment Strategies and plan for Ehmej. Ehmej area

Produce Ehmej – Production G-LIVCD-018 Promoting and Increasing 8/11/1 rs of the Clarifying mistakes done by producers. methods Ehmej Competitiveness of Rural Tourism in 18 6 area Basic sales techniques and accounting Ehmej

G-LIVCD-144 Increasing the Training on Tomato Paste Women 8/19/1 competitiveness of Rural Tourism Applying cooking information and tips in Making Maad 21 Produce 6 Network -“Rural Routes”- In Byblos and their own households and in their rs Batroun production.

G-LIVCD-144 Increasing the IMS 9/19/1 competitiveness of Rural Tourism students Communication and Maad 20 Improve local women producers 6 leadership Network -“Rural Routes”- In Byblos and (Local communication skills Batroun women)

G-LIVCD-144 Increasing the IMS 9/21/1 competitiveness of Rural Tourism students Improve local women producers Entrepreneurship Maad 17 6 Network -“Rural Routes”- In Byblos and (Local communication skills Batroun women)

G-LIVCD-144 Increasing the IMS 9/26/1 competitiveness of Rural Tourism students Communication and Maad 14 women Improve local women producers 6 leadership Network -“Rural Routes”- In Byblos and (Local communication skills Batroun women)

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COMPONENT 3 – ACCESS TO FINANCE

One of LIVCD areas of focus is Access to Finance and more specifically supporting farmers in applying for needed loans to start and expand their businesses. LIVCD facilitates the process of access to lending and investment for value chain actors in the target value chains. LIVCD’s assistance revolved mainly around supporting MSMEs to learn about the source of financing available for their investments, developing feasibility studies for specific investments and facilitating contacts between potential farmers/investors and financial institutions.

In addition, one of the main issues related to access to finance concerns banks that refuse to fund farmers because they consider the agricultural sector risky as it is affected by weather and natural disasters. Most loans officers are not familiar with farmers’ technical needs. LIVCD support financial service providers to improve their technical agricultural knowledge and therefore make them better positioned to analyze agricultural loan applications and agricultural feasibility studies.

Summary of year 4 Top Results · Around 400 MSMEs assisted to apply for value chain finance. · Around in new private sector leveraged investment as a result of LIVCD assistance, out of which 46 MSMEs secured loans valued at . The loans requests were mainly related to expanding existing business and upgrading orchards. · 60 bank loan officers supported to appraise loan applications.

Year 4 achievements in Access to Finance include: Ø Through year 4, LIVCD has assisted around 400 MSMEs, including farmers, to access finance through trainings, workshops, PPPs and access to loans. Out of which around 260 MSMEs participated in workshops to learn about potential sources of financing, in which LIVCD experts and representatives from financial institutions explained to value chain actors (particularly farmers) the different available sources of finance and loan products, and the application process and requirements to successfully apply for loans.

Ø LIVCD supported 6 feasibility studies for specific investments in the target value chains which were used to determine whether or not to make the investments and also to support application for financing from banks.

· One feasibility study for establishing an apple juice factory project in Akoura (Mount Lebanon) in the processed food value chains; · One feasibility study for establishing an eco-tourism park in Koura region (North Lebanon) in the rural tourism value chain; · 3 feasibility studies for new orchard establishment in the avocado value chain; · One feasibility study to assess the potential of introducing the high density apple farming technique by comparing the returns per dunam achieved with those of the standard apple farming technique. The outputs of the study were shared with farmers and potential investors.

Ø During this year, 46 MSMEs were able to secure loans for a total amount of . These loans primarily supported individuals and MSME’s to upgrade equipment and infrastructure as well

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as to expand agricultural plantations. Tio date 60 MSMEs were able to secure loans for a total amount of .

Ø LIVCD organized a series of workshops for BLC Bank Staff on “Everything you need to know to fund farmers”; the workshops attracted 60 BLC Bank employees including branch managers, deputy branch managers and credit loan analysts. The workshops objectives were as follows; · To provide an overview on the technical agricultural practices and financial returns that apply to the Avocado, Honey, Apple, Cherry and Grape value chains; · To help loan officers better appraise loan applications for agriculture related investments; · To learn about the key risk factors and mitigation measures as they related to the targeted crops/products; · To better understand the potential investment opportunities that exist in the targeted value chains; · To facilitate increased numbers of agricultural loans.

· Study on introducing the high density apple farming technique.

Ø To further increase capacity for financial institutions to evaluate loan applications for agriculture- related investments, LIVCD supported BLC bank to facilitate 5 loan applications for grape and cherries investment. Support in assessing the technical part of 5 feasibilities studies was provided to BLC Bank to help loan officers validate information presented by investors. Following this support all 5 applications were approved by BLC bank for a total value of .

Ø In order to ensure efficient collection of program impact data related to financing and to capture the investments made by MSMEs during the previous years, LIVCD developed a survey for leveraged investment and access to loans. As a result of the survey conducted by LIVCD during this year, LIVCD obtained data showing of new private sector investments made during the last three years. Till date, LIVCD leveraged around in new investment in the target value chains.

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CROSS-CUTTING ELEMENTS

Market Intelligence & Marketing

MARKET INTELLIGENCE & MONITORING Objective: Develop marketing intelligence system to support LIVCD interventions and stakeholders. Expected results: Market information is compiled, analyzed, and made available to value chain stakeholders to support them in identifying and pursuing market opportunities; business service providers of marketing intelligence are identified.

Facilitate access to marketing intelligence:

1) Market Intel TASDIER Portal: With a shared investment with the Federation of Chambers of Commerce, Industry and Agriculture in Lebanon (FCCIAL), LIVCD is developing TASDIER, a sustainable information platform for processors to increase their exports. The website is expected to be launched in the coming months, and work has started on populating the TASDIER website with information related to 40 exporters, traders and producers attending the Processed Foods and fresh foods exports. The workshop presenting a study for fresh fr uits exports to the UAE and KSA website aims at facilitating access to information to Lebanese producers and exporters in order to succeed in exports. 2) Market studies: LIVCD continued to make marketing information available to stakeholders in the targeted value chains, to support them in identifying and pursuing market opportunities. In particular, LIVCD developed and published a study for fresh fruits exports to the UAE and KSA, aimed at identifying new channels and presenting guidelines for Lebanese traders and producers. LIVCD presented and discussed the study with around 40 producers, traders and exporters during a workshop that took place on December 15, 2015. The type of information available in the study include: • Market channels and segments • Consumer Trends • Demand and competition • Export requirements

Market studies/strategies developed included the following:

Study Title Value Chain Products Markets

Market study for fresh fruits exports to Avocado, Avocado, Grape, KSA and UAE the UAE and KSA will help identify new Grape, Apple Apple and Cherry channels in the GCC for existing traders and Cherry and producers GCC Market Study for Processed Food Processed Jams, pickles, olive GCC to Determine Appropriate Market Foods oil, other canned Channels and Products that can be foods Competitively Produced in Lebanon Market study for the “Ready -to-eat” Processed dinners, dough, Lebanon

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segment within the processed food Foods and pastry value chain U.S. market study and presentation on: Processed Variety of US “How to move from Ethnic Markets to Foods processed foods Mainstream and Specialty Markets in the U.S Iraq Market Study for Processed Food Processed Variety of Iraq Foods processed foods Assessing Market Potential of Select Rural Basket Variety of Rural Lebanon Rural Products in Health/Specialty Shops Basket products Marketing Intelligence Assessment – Processed Marketing Processed Foods Value Chain Foods Intelligence needs and availability Jams Market – Sector Analysis; Dried Processed Jams and dried Lebanon Fruits Market Study Food fruits Marketing Assessment for Cooperatives Processed Mouneh Lebanon in Southern Lebanon Foods (preserves) Antibiotic residue in honey; Honey Honey Honey Lebanon sampling methodology Floriculture Value chain market Floriculture floricultural GCC countries assessment products- (Abu Dhabi, Dubai, including flower Qatar and KSA) cuts and Lebanon

MARKETING AND PROMOTION Objective: Support to several partners in their marketing activities Expected results: LIVCD partners’ increased sales and exports, and improved access to market. This year, LIVCD continued support to several partners in their marketing activities in local and export markets, in order to boost sales, as follows: · Marketing campaigns to increase sales, assistance to increasing exports (refer to sales results in the M&E Stakeholders discussing a plan aimed at increasing section), sales of Lebanese honey of natural origin · Upgrading packaging and marketing tools, · Exhibitions and fairs to increase linkages, · Improved media outreach and exposure.

Marketing campaigns to increase sales:

Honey Value Chain : LIVCD project is planning a Lebanese Honey Awareness Campaign aimed at increasing sales of Lebanese honey versus imported brands. As a first step, LIVCD organized roundtable discussions on July 19 2016 gathering 50 stakeholders to raise the marketing challenges Mymoune launching its new packaging through a faced by Lebanese honey and to explore strategies to tasting campaign at Le Bon Marche, in Paris

161 address these challenges. The proposition of an industry led honey promotional campaign to support the overall honey sector was discussed and agreed among participants. Following the workshop, LIVCD signed a MOU with the Syndicate of Dietitians to partner up in the upcoming campaign.

Processed Food: LIVCD supported traditional food producer Mymoune in upgrading its packaging with new logo and label design. The company launched its new packaging through a marketing campaign that included an in-store tasting and visibility campaign in several supermarkets from November 5th to November 16th. In addition, Mymoune has rented two unipole billboards to display its new identity on Hamra Main Street in Beirut and the Zalka Highway, north of the capital. Mymoune also launched its new products in Paris during a tasting campaign . In the coming months, Mymoune will implement a campaign in export markets in order to increase awareness on the brand and its sales.

Processed Food value chain : As part of a co-investment Lebanese Mezze In store tasting activities in agreement with LIVCD, Lebanese Mezze implemented an in-store the UAE marketing campaign in four branches of Union Coop supermarkets in the UAE. The campaign included in store tasting with promo people, visibility and branding, and full page advertising in the supermarket’s magazine. The tasting campaign exceeded expectations, as the brand sold all the planned quantity of products in just a few days and had to supply their stocks for the remaining campaign days. This activity allowed the introduction of the brand to the UAE consumers for the first time.

Processed Food value chain: LIVCD collaborated with Lebanese food enterprise Mechaalany, a producer of pickled and canned food, with an objective to increase its sales, and its competitiveness in local markets. LIVCD supported Mechaalany develop a new attractive label for a new line of natural apple and grape vinegar, sourced from local farmers. In addition the project supported the launch and the implementation of a direct marketing campaign in several supermarkets in greater Beirut in March 2016, including Le Charcutier, Spinneys, Bou Khalil, Carrefour, Monoprix, and Fahed, attracting many new consumers to the brand. Following the successful launch and in store tasting campaign on the new Mechaalany apple and grape vinegar in March, the brand is continuing to gain market shares. Sales have increased by 34% on Mechaalany’s promotional campaign in the period of January to June 2016 versus the same period in 2015. supermarkets to increase sales of Apple and Grape vinegar

Avocado Value Chain : LIVCD is preparing a campaign to promote avocado sales in local markets, following several meeting held with retailers and wholesalers to draft the implementation plan. The campaign will be carried out during the avocado season starting in October 2016.

Olive Oil Value Chain : LIVCD initiated a partnership with the Extra Virgin Olive Oil producer Zejd to be implemented next year, to increase olive oil exports to the U.S.

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UPGRADING PACKAGING AND MARKETING TOOLS: Honey : LIVCD supported Kaddoum honey in upgrading its packaging with a new logo and label design, which was launched on supermarket shelves across the entire Lebanese market in May 2016. The new look is appealing and modern and allows the company to reach out to new consumers. With LIVCD support, the brand also published a new website http://kaddoumhoney.com/ and social media Facebook page. The website introduces the company to potential exporters in a professional and appealing way, while the social media page interacts more directly with potential consumers in Lebanon and export markets. Kaddoum new packaging featured on its website Cherry Value Chain: LIVCD provided technical assistance in marketing to Cherry Good which collects, packs, and commercializes high quality cherries from the Hammana producers; a plan was developed to support the company increasing its access to market and visibility, to be ready for the spring 2017 cherry season.

Pome, Grape, Avocado, and Cherry Value Chains: LIVCD and partner Karma Lebanon, exporter of fresh fruits and vegetables have completed the promotional video aimed at showcasing the company’s products for export customers. In addition, Karma has completed its rebranding which will be applied on the company’s new packaging. The new packaging will allow the brand to increase its customer base. In the coming months, Karma will launch its new packaging and will implement a marketing campaign supported by LIVCD in Karma’s new logo and an extract of the export markets. promotional video aimed at accessing new export markets Rural Basket Value Chain : LIVCD supported the Jezzine Pine Nut Cooperative (JPNC) which produces and commercializes high quality pine nuts under the brand name JAZ, with equipment, packaging design and labeling, and sales tools.

Assistance to increasing exports: Pome Fruit Value Chain: With an aim to alleviate the effects of the apple crisis in Lebanon, LIVCD developed a draft plan to improve quality and increase exports in the apple value chain. The team met with key players in the value chain, including the Syndicate of Apple Exporters, producers, wholesalers, packing houses, and exporters. In addition, LIVCD is encouraging linkages between farmers and traders, and organized several visits of apple exporters, traders, and farmers to LIVCD sponsored demo plots. This will serve as a model to create sustainable linkages between farmers applying good agriculture practices and traders.

Olive Oil Value Chain : LIVCD helped create a vertical linkage between Olea Coop and NFS, whereby the cooperative purchases the high quality 163

Olea Cooperative and Nicolas Fares & Sons’ Extra Virgin Olive Oil ready for shipment to the US extra virgin olive oil produced at the NFS mill, and Olea handles the marketing. In June 2016, Olea Cooperative concluded a deal with food exporter LELO (based in the U.S.) to ship 1,700 liters worth of olive oil to the U.S. to be sold in specialty shops in New York and on an e-commerce platform starting September 2016. This is the first export order for Olea Cooperative opening up new opportunities for olive producers in the Lebaa region.

Cross-cutting: LIVCD provided technical assistance to six private companies to attend the Qatar International Agricultural Exhibition AQRITEQ, namely Kaddoum Honey SARL, Mechaalany, Atyab Zeit Boulos, Pate Boulanger, Al Rabih Sonaco, and Kerellos for fresh flowers. The show opened at the Doha Exhibition Center on November 10, 2015, under the patronage of the Qatari Ministry of Environment, and lasted until November 12.

Rural Basket Value chain: LIVCD worked with Adonis Valley to increase the sales of its products in local and international markets (e.g. thyme to the U.S. and honey to the GCC). This support included participating in local food exhibitions, identifying new markets, shelving strategies, marketing brochures, and joint product promotions. By the end of 2015 Adonis Valley was able to export for the first time to the Kuwait, UAE and Japan markets for a total value of .

Pome, Grape, Avocado, and Cherry Value Chains: LIVCD is developing a promotional video to support Lebanese fresh fruits and vegetables. The video will be made available for the Lebanese exporters participating as part of the Lebanese pavilion in the Fruit Logistica 2017 fresh produce Trade event, held annually in Berlin in February.

EXHIBITIONS AND FAIRS: Olive Oil Value Chain: Between April 5 and 8, LIVCD supported the presence of six olive oil producers at the HORECA 2016 Exhibition. The event attracted over 15,000 visitors and is the major exhibition in the Food & Beverage sector in Lebanon; it is an annual opportunity for these producers to reach out to potential customers. (Please refer to Olive oil Value chain)

Rural Tourism Value Chain: For the third consecutive year, LIVCD supported the Lebanon Traveler exhibition held during the Garden Show Festival in May 2016. Several stakeholders in the rural tourism sector had the opportunity to promote their services, hostels, guesthouses, rural activities, to a wide audience of visitors.

Pome Fruit Value Chain: LIVCD successfully participated in the first edition of the Mayrouba Festival organized by

Mubadarat Association, which took place on Saturday Mayrouba Apple Festival to encourage September 3 and Sunday September 4, and gathered over consumption of apples 1,000 visitors. The festival took place in Kesserwan, a traditionally apple growing region, and hosted producers of several food and handicrafts elements under the apple thematic. LIVCD hosted apple producers from the region who exhibited their apple-based products such as apple vinegar and different varieties in the 36 square meters LIVCD stand. In addition, visitors were able to taste recipes using apple, such as apple chicken wrap and apple quinoa salad, in addition to fresh apple juice. Dietician raised public awareness on the health benefits of apple through her interventions at the LIVCD stand, presenting in particular the use of apple products as a healthy alternative sweetener.

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In addition, LIVCD experts gave a workshop on Integrated Production (IP system), Global Gap certification, and Trellis system for apple production and LIVCD trials and demo plots. The event was featured on OTV 20:30PM News, and featured several interviews.

Cherry Value Chain: In June 2016, the Hammana municipality held its one day annual Hammana Cherry Festival, promoting the region’s cherry production to thousands of visitors. The event included cherry picking activities, and a large display of cherries under three tents provided by LIVCD. This event was an opportunity to promote Hammana’s cherries, and other local products, including honey. The event received good media coverage on TV radio and in newspapers.

Cross-cutting: LIVCD assisted Rural Delights, Adonis Valley, Food Heritage Foundation, Barouk Cooperative, and Metn el Aala Honey to participate in the Beirut Cooking Festival in Beirut Cooking Festival: Cooperatives along with food blogger Anthony Rehayel presenting their November 2015. The event was an important opportunity for products to the public during live cooking sessions such small-scale cooperatives to showcase their products and create linkages with buyers, which will help them to expand their market reach and increase their incomes.

IMPROVED MEDIA OUTREACH AND EXPOSURE: PUBLIC AWARENESS ON LIVCD PROJECT AND ACTIVITIES LIVCD and its partners benefited from important visibility in major public events, which gathered thousands of visitors at the LIVCD stand, and presented the project’s activities to a broad audience. In the period between October 2015 and September 2016, LIVCD participated in the following events and festivals with branded stands, and organized activities to promote the value chains and partners, such as: tasting of rural products, live cooking sessions, displaying brochures and other visibility tools,

· Horeca April 2016 · The Cooking Festival November 2015 · Travel Lebanon event at the Garden Show May 2016 · Hammana Cherry Festival May 2016 · Mayrouba Apple Festival August 2016

In addition, LIVCD organized several launching events which were attended by high level representatives, and received media exposure, namely:

· U.S. Charge d’Affaires in Lebanon, , and other USAID officials’ visit on May 31 2016, to three LIVCD sites in the Jezzine area: Nicolas Fares Mill, Pine House in the village of Bkassine, and B.Balady cooperative. · Launching of the Aley Rural Tourism Strategy on June 4, 2016 in presence of Minister of Tourism and the Minister of Agriculture, newly elected mayors, rural tourism stakeholders · Launch of Golden Queen Center for artificial insemination in Hosrayel on September 20, 2016 in presence of General Director at the Ministry of Agriculture and USAID Mission Director · Rock Climbing Tannourine Launching in June 2016 · Launch of Douma Side Trail part of on the Lebanon Mountain Trail in August 2016

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LIVCD, its partners, and related value chains were featured in several media outlets including TV stations, radio, newspapers, and online portals:

· Print: An Nahar, Al Balad Newspaper, L’Orient Le Jour, Le Commerce du Levant, The Daily Star, Al Joumhouria, Al Mustaqbal Newspaper, Ad Diyar, National News Agency, Lebanon Traveler, Middle East Food, · TV: Reuters Agency, LBCI News, OTV, MTV Alive, Future TV Akhbar Al Sabah · Online portals: Women Economic Empowerment Portal, Lebanon Files, Al Mughtareb, Kalam Akhbar, Al Anwar, Hospitality News magazine, Al Anbaa, NoGarlicNoOnions, Beirutfoodporn, Fooradise,.. Coverage of the Aley Rural Tourism Strategy Launch in Al Mustaqbal Newspaper

In addition, the LIVCD Facebook page has reached over 3,300 followers. The page is regularly updated with project news, pictures, and videos. It allows the project to interact with a large audience of stakeholders, partners, beneficiaries, and the general public, in Lebanon and abroad.

LIVCD Facebook page displaying project activities through pictures, videos, and posts

Beneficiaries of LIVCD marketing support per Value Chain: Marketing Exhibitions and campaign to Assistance to Upgrading packaging fairs to increase Value Chain increase inc reasing exports and marketing linkages and sales tools exposure

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Mechaalany, Lebanese Mezze, Mechaalany, Mymoune, Ain Mymoune, Atayeb el Le banese Mezze, Mymo une, Jana el Ayadi, Ebel Coop, Hariss Coop, Rif, 18 Cooperatives Za hleh Chamber of Se sobel, Jana el Ayadi, un der Rural Delights, Processed Foo ds Ro yal Organics Grape Commerce, Balkis Sy rup, Judi, Tasdier Fr eekeh producers 47 food industrialists website users, (GulFood) Cooperatives under RuralNicolas Delights Fares, Olea 6 olive oil Olive Oil Coop, Willani, Adon & Zeit Zaman (Dar Bechtar), cooperatives, Zeit Myrrh Oli va Zerta (Willani) Boulos Kaddoum Honey, Kaddoum Honey, Kaddoum Honey, Matn el Kaddoum Honey, Ma tn el Aala Ja bal el Sheikh Aala Cooperative, Golden Ma tn el Aala Cooperative; Hosco Queen (Afif Abi Chedid) Cooperative Honey Agri; B.Baladi Coop Jezzine; Lebanese pro ducers (awareness Jezzine Pine Nut Coop campaign) Rural Basket B.Baladi Coop Adonis Valley, Bread (JAZ J.Grove), Adonis Adonis Valley, B.Baladi Jezzine Basket Valley Coop Jezzine Jezzine Union of Lebanon Traveler; 60 participants in municipalities; Muni cipalities of Hadath el Travel Lebanon at Shouf Biosphere Je bbeh, Ehmej, Rashaya el Gar den Show; Public Reserve promo Wadi, Hammana; Food la unch of rural tourism campaign (video) Heritage Foundation, str ategies for Aley, Auberge Beity, Diyafa Hammana, Menjez, Ro ck Climbing Rural Tourism website, LMTA, Go rural Lebanon Facebook page, Associ ation AUB Nature Conservation Devel opment. Center; Association of youth Hostels and Environment HEY

Medigardens, Jaber Tra ding, Middle East Grapes Business Company, Karma Lebanon Apple producers Liban Village, Large Sannine coop for li nked with Balkis pro ducers, sustai nable agriculture wholesalers, and Pome Fruits tra ders; Karma Le banon

All producers and Karma Lebanon All producers and Avocados wholesalers wholesalers Cherry Good Karma Lebanon Cherry Good Hammana Hammana cherry

Hammana (next (ne xt quarter) pro ducers Cherries quarter)

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Institutional Capacity Building

LIVCD’s institutional capacity building activities ended in December 2015 based on USAID recommendations. In the future, LIVCD will coordinate with other USAID funded projects to provide institutional capacity building for institutions that need such training.

During the year 4 reporting period, activities included:

Mitigating Legal and Financial Setbacks of Rural Cooperatives and MSMEs,

Cooperatives around Lebanon are known to lack information and managerial framework, especially in new laws and legislations that are still found unfamiliar and or outdated. It is thus a duty to put forward all appropriate information in training sessions and guideline booklets which could serve as a reference for such cooperatives. These trainings and guidance booklets will be able to clearly state appropriate legislations and formulation of implementation strategies, which could thus reduce the lack of knowledge and help reach economical, legal and commercial reform in cooperatives to attain an improved overall economic efficiency and future development. This will help create a conducive environment for cooperatives to operate in and be able to properly compete under the economic environment. For this reason, Rural Delights (Atayeb Al Rif) Cooperative implemented the “ Finding Solutions for Legal & Commercial Setbacks in Cooperatives” project to promote economic, legal and commercial reform in cooperatives facing lack of knowledge. The latter allowed for improved workforce development opportunities through capacity building and guideline booklets that helped cooperatives attain a more rigid managerial skeleton and maximized business and economic efficiency.

Major achievements:

1- A list of criteria was first determined in order to assess eligibility of beneficiaries. Accordingly, potential beneficiaries were identified and assessed for selection. A total of 50 cooperatives/SMEs were initially contacted having various levels and that have already worked with LIVCD in part and/or with Atayeb Al Rif Cooperative; out of which 40 coops/SMEs successfully completed the needed assessment interview and 29 beneficiaries participated in the project. 2- Assessment interviews were conducted with 40 potential beneficiaries for the four targeted areas across Lebanon: North – South – Mount Lebanon – Bekaa Valley. Preliminary results showed that a high percentage of cooperatives and SMEs have low knowledge and unfamiliarity in many of the suggested topics especially those related to cooperative dissolution & liquidation, obtaining a barcode, TVA, social security affidavit, export requirements, and on issues of the membership in Association of Lebanese Industrialists. 3- All 20 of the suggested topics were found essential with a few variations in selected topics according to individual cases. For that reason, topics were prepared with varying weights as needed to fulfill the objective and properly fill the gaps per beneficiary. Accordingly, training material and content were prepared by a pool of trainers along with the curriculum and handouts. Additionally, throughout the implementation of the project, some beneficiaries requested extra topics which were later integrated in their training. 4- A total of 89 training sessions were conducted over 50 days for 29 beneficiaries and 172 attendees. Throughout the training duration, constant meetings and contact with beneficiaries was taking place in order to follow-up with their

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Finance and management booklet progress as well as to examine their enhanced level of know-how and identify whether any gaps or issues may have emerged. 5- A guideline booklet was prepared throughout the implementation of the project and was distributed to beneficiaries at the end of the training to serve as a future reference for the cooperatives and SMEs. The 134 page guideline was divided in 13 sections and contained clarifications and recommendations of a collection of managerial, financial and legal topics which may have been misconceived by cooperatives and SMEs.

Olea training Batrouniyat training

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Gender Considerations

The LIVCD approach to upgrading the target value chains includes considerations of specific gender issues facing actors in the value chains. An initial gender assessment conducted by LIVCD identified key constraints and opportunities for women’s participat ion in the rural economy, and LIVCD takes these into consideration in designing all new assistance, including training, ways to encourage and facilitate the participation of women and helping them access assets and taking more active roles in decision-making and leadership in cooperatives in the rural sector. LIVCD’s achievements in this area include:

· LIVCD has consistently been successful in ensuring that at least 21% of participants in LIVCD assistance are women. In the design of new interventions and trainings, Value Chain Leaders take into consideration how women’s participation can be facilitated to impact their access to productive assets, decision-making and leadership. During year 4, LIVCD successfully engaged women from rural cooperatives in events around Lebanon, including the Beirut Cooking Festival; engaged women in training (for example, training female beekeepers under the LIVCD Beekeeper Training Program), and supported them in applying new technology (for example, as part of the Olives Mechanical Harvesting Program). An increasing number of women’s cooperatives are submitting Expressions of Interests to benefit from LIVCD grants. · As part of the LIVCD Institutional Capacity Building Program, LIVCD has increased the awareness of participating organizations about gender mainstreaming and how to integrate considerations of gender into design of development projects and writing proposals for funding. · LIVCD attended the Gender workshop hosted by Social Impact on March 10-11, 2016. During the first day, five toolkits were presented related to the environment, trafficking with persons, disabilities, sustainability and gender issues. The workshop included a lot of information exchange, followed-up on progress of work done, discussed challenges and shared successes, achievements and lessons learned. It also focused on how to improve partners’ efficiency in gender integration. The second day focused more on gender, where USAID partners shared their gender mainstreaming efforts in terms of success, achievements, lessons learned and challenges. Social Impact then presented the Gender Analysis Toolkit and the attendees were divided into groups to work on the gender analysis prior to designing a project and then focused on how to design an activity using the compliance toolkit,

· In the olive oil value chain women are becoming more involved in learning about olive oil tasting and quality. This improvement was noted during specific events such as HORECA where 79 women out of 248 participants participated in the olive oil tasting and olive oil quality session. · A training was held at LARI-Tal Amara on April 16 th on “The Best practices to assess and evaluate olive oil quality" (theoretical and practical), 142 persons participated, among them 85 women. o A training on olive oil quality and assessment on April 13 th with YWCA center was given to 13 women . o A training on May 5 th at NDU Louaize in Khater Auditorium had high women participation – 59 out of 72 participants were female.

· In the Rural Tourism value chain: · Trainings were held with the Association for the Protection of Jabal Moussa (APJM) for 17 local women food producers on food safety and food production hygiene to allow them to be better prepared and more professional in the field.

· Prodes with the support of USAID-funded Lebanon Industry Value Chain Development performed workshops and training activities on the 7th, 18th, 20th , 23rd and 24th of July on Touristic Rural Packages for the Jbeil and Batroun Cazas. 15 women between 22 and 35 years

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old were present: Environmental and Ecological Associations and NGOs, Tour operator, regional guides from Jbeil and Batroun regions. The trained women received tips on rural local guiding, communication, and how to plan trips for tourists. In addition, Prodes with the support of LIVCD held 3 trainings under Mouneh Production workshop for local food producers. The trainings took place on the 28th of July and on the 4th, 11th and 18th of August on food safety, jam, pickle and tomato products respectively. Around 20 women were present; recipes were distributed to help them apply the cooking information and tips in their own households in order to improve their businesses and their food related skills. · LIVCD supported women’s exposure to increased market opportunities throug h the Garden Show & Spring Festival where the majority of exhibitors were women including Aunty Salwa, Kfardebian Bentael Nature Reserve, Ehmej Association for Development, Lebanon Untraveled, the Food Heritage Foundation and Women Association of Deir el Ahmar. This event will help to increase their exposure and productivity and empower women to more readily participate in activities of this nature in the future.

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Water and Environment

1. Environmental Compliance Assessment and Monitoring The LIVCD Environmental Compliance Specialist (ECS) conducted several environmental compliance monitoring field visits for ongoing activities in year 4 to ensure that the project’s activities have been properly environmentally reviewed. The monitoring visits are documented in the table below. 2. Solid Waste Management Environmental Compliance was able to move forward with many grants. A challenging situation was faced when dealing with the environmental hazards associated with the batteries from the olive mechanical harvesters. In order to find a solution for the electronic waste (e-waste), an agreement has been signed with the Beeatoona NGO for the recycling of e-waste. Under this agreement, all e-waste from LIVCD and its activities are now sent to Beeatoona for recycling. 3. Environmental Component within LIVCD LIVCD Environmental Compliance Specialist participated in several environmental training and workshops. The learned lessons have been disseminated to the LIVCD team through internal training. Furthermore, LIVCD beneficiaries will continue receiving environmental compliance training through field sessions. The training materials mainly were related to health and safety in food processing, PERSUAP, water saving in irrigation, and management of solid waste. In the year 2016 a new environmental reporting form was adopted by LIVCD. This form is concise and is expected to facilitate more efficient reporting and approvals. 4. Creation of Environmental Opportunities LIVCD continued with upgrading the environmental value of the project, through the adoption of environmental components into many grants such as the provision of plant shredder to benefit from organic waste, installation of drip irrigation system to promote water saving techniques, installation of solar energy systems, as well as the adoption of water recycling within food processing to reduce water usage. LIVCD has provided several agricultural cooperative with Personal Protective Equipment (PPE) coupled with training on Good Agricultural Practices (GAP). Beekeepers wearing protective suits during training

Through the different value chains, farmers were trained on Good Agricultural Practices in compliance with the PERSUAP. A practical example on pest management within the LIVCD project can be the olive fly (Bactrocera Oleae) which is a major pest for olives. In a way to avoid the use of pesticides, olive farmers used yellow sticky traps. This method was able to significantly reduce the population of olive fly and refrain from the usage of pesticide.

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In order to upgrade the environmental value of the project, organic waste from agricultural lands was turned into compost. Using compost as mulch, in the soil or as potting media is beneficial in many ways. Compost contains a full spectrum of essential plant nutrients.

LIVCD team checking temperature and humidity of the produced compost

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Year 4 Environmental monitoring for ongoing grants: Monitoring Grant # Organization Date Cooperative Association for Production,Processing and Marketing of Food,Agriculture and Animal Products- Atayeb El Rif Cooperative Association for Agricultural Services and Development of Koura,Koura 22-Oct-15 Al Hadatha Association 19-Oct-15 Cooperative Association for Olive Farmers in Tripoli 19-Oct-15 Agricultural Cooperative Association for the production and processing of Olive Oil in Al Kaa 16-Oct-15 Lebanese Association for Urban Agriculture (LAUA) 20-Oct-15 Agripharm S.A.R.L. 14-Apr-16 Agricultural Cooperative Association for Olive Farmers in Jezzine 7-Oct-15 General Agricutural Cooperative Association of Mimes and Neighboring Villages 14-Oct-15 General Agricultural Cooperative Association in Houla 12-Oct-15 Cooperative association for organic agriculture and olive production in Lebaa and neighboring villages ( OLEA Cooperative) 7-Oct-15 Agricultural Cooperative Association for Sustainable Development in Jezzine and Chouf Cazas-LANDS 7-Oct-15 KARMA Lebanon SAL Agricultural Association for Marketting and Processing of Olive Oil in Klayaa 12-Oct-15 Agricultural Cooperative Association for the Villages of Haramoun, Al Berke, ( Kfeir Cooperative) 14-Oct-15 Agricultural Cooperative Association for the Development in Bijjeh 2-Oct-15 Agricultural Cooperative Association in Sir El Gharbiyeh 1-Oct-15 Agricultural Cooperative Association in Safad El Batikh 1-Oct-15 Agricultural Cooperative Association for the development of sustainable agriculture in Ras Baalbak 16-Oct-15 Agricultural Cooperative Association in Kfardounine 9-Oct-15 Agricultural Cooperative Association of Karoun and neighboring villages 20-Oct-15 Agricultural Cooperative Association in Hermel 16-Oct-15 Agricultural Cooperative Association in Deir Aames 6-Oct-15 General Argricultural Cooperative of Hajeh 6-Oct-15 HOSCO agri SARL 16/05/2016 Agriculture Cooperative Association of Chadra 13-Oct-15 Agricultural Cooperative Association for processing olive waste in Bkarzla 8-Oct-15 Agricultural Cooperative Association of Ibrin and Neighboring Villages 2-Oct-15 Agricultural Cooperative Association for the development of the olive sector in Kashlak 13-Oct-15 Association for Lebanese Rural Development (LRD) 8-Oct-15 Agricultural Cooperative Association in Douma 22-Oct-15 Agricultural Cooperative Association of Aydamoun 13-Oct-15 Ehmej Development Association 14-Dec-15 Ain Kabo 31-Dec-15 American University of Beirut Kawkaba Cooperative Withdrawn Der Bechtar Olive Oil Coop 3-Feb-16 Afif Abou Chedid Agriculture and Trade Company 12-Jan-16 174

Cooperative for Pine Nut Plantation and Production in Jezzine Caza 8-Dec-15 Agricultural Cooperative Association for the Production, Processing and Marketing of Grapes and Olives ( Rachaya Al Foukhar- Khraybe) 28-Aug-15 Kobayat Cooperative 9-Dec-15 Hariri Foundation 27-Jan-15 Cooperative Association for Beekeeping and Marketing of Honey Products in Kfeir and the Surrounding Rock Climbing Association for Development 24-03-2016 Hariss Cooperative for Food Processing 20-Jan-16 Liban Village cold store s.a.l 12-Apr-16 Hospitality Services Al-Shouf Cedar Society 30-Oct-15 Al-Shouf Cedar Society 30-Oct-15 Al Kwayteh Beekeepers Cooperative-Koura 9-Dec-15 Caritas Hospitality Services Societe Libanaise de Boissons (Machaalany) The Agricultural Cooperative Association for Production and Food Processing in Ein Ebel Matn el Aala Honey Cooperative Lebanese mezze 31-Jul-15 Atayeb el Ref Mymoune 2-Feb-16 Societe Libanaise de Boissons (Machaalany) Fouad Mohamad Zouweihid Mill (Al Rachid Modern Mill) 28-Feb-15 Hadath El Jebbe Association 19-Jun-15 Hadath El Jebbe Association 19-Jun-15 Cooperative Association for Agricultural in Kobeiyat, Akkar 11-Sep-15 Association for the Protection of Jabal Moussa American University of Beirut Caritas * The yellow rows indicate grants with no environmental monitoring needed

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