Agricultural Value Chains (Avc) Activity

AGRICULTURAL VALUE CHAINS (AVC) ACTIVITY

FY 2018 – QUARTER 3 - REPORT

April - June 2018

July 2018 Revised September 2018

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

AGRICULTURAL VALUE CHAINS (AVC)

FY 2018 - QUARTER 3 - REPORT

April – June 2018

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

For the U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT

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

July 2018

The authors’ views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.

ACRONYMS

AVC Agricultural Value Chains Activity (2015-18) (USAID) COP Chief of Party CTJ Central Asia Competitiveness, Trade, and Jobs Activity (USAID) DAI DAI Global, LLC DIAL Digital Impact Alliance FE Farm Enterprise F&V Fruit and Vegetable FY Fiscal Year G&A General and Administrative GAP Good Agricultural Practices GCCA Global Cold Chain Alliance GDF Gold Dried Fruit HVCSC Horticultural Value Chain Student Clubs I&C Instrumentation and Control ICA Independent Consulting Agreement (DAI Global) IR Intermediate Result ISO International Standards Organization ISP International Studies Program LLC Limited Liability Company MASHAV Israeli Agency for International Development (in Hebrew) MATC MASHAV International Agricultural Training Center MOU Memorandum of Understanding mt Metric ton MSU Michigan State University NEP National Exchange Program ODC Other Direct Costs OH Overhead OSU Ohio State University P&D Pest and Disease PERSUAP Pesticide Evaluation Report and Safe Use Action Plan RDCS Regional Development Cooperation Strategy (USAID) SUB Subcontractor TCL Tissue Culture Lab TSAU Tashkent State Agrarian University (Uzbekistan) ULO Ultra-Low Oxygen USAID United States Agency for International Development VRI Vegetable Research Institute (Uzbekistan)

CONTENTS

A. BACKGROUND ...... 5 1. Project Goals and Objectives ...... 5 2. Project Components ...... 5 3. Geographic and Commodity Focus ...... 5 B. ADMINISTRATIVE ...... 6 1. Personnel ...... 6 2. Other ...... 6 C. PROJECT ACTIVITIES UNDER COMPONENTS ...... 7 1. Component #1: Improve Quality & Volume of Agricultural Production ...... 7 a. Improve On-Farm Productivity ...... 7 b. Increase the Quality and Availability of Agricultural Inputs ...... 8 2. Component #2: Improve Post-Harvest Handling & Production ...... 9 a. Facilitate the Advancement of Cold Storage Practices ...... 9 b. Utilize Improved Post-Harvest Production to Reach New Markets ...... 11 3. Component #3: Facilitate Market Linkages ...... 15 a. Create Market Linkages with New Foreign Markets ...... 15 4. Component #4: Link Educational Institutions with Private Sector Demand...... 18 a. Agricultural Universities ...... 18 b. Research Institutes ...... 21 5. Collaboration with other organizations ...... 21 6. Women in Agriculture ...... 22 D. MONITORING AND EVALUATION ...... 23 1. Monitoring and Evaluation ...... 23 2. Website Development for Partners ...... 24 3. Communications and Outreach ...... 24 E. ENVIRONMENTAL COMPLIANCE ...... 26 1. Monitoring ...... 26 2. Mitigation...... 27 3. Issues ...... 27 F. FINANCE ...... 27 1. Disbursements ...... 27 2. Commitments...... 28 3. Obligations...... 28 4. Issue(s)...... 28

A. BACKGROUND

1. Project Goals and Objectives

USAID’s Agricultural Value Chain (AVC) Activity supports Development Objective #1 under the Regional Development Cooperation Strategy (RDCS) – Expanded Diverse and Competitive Trade and Markets. Specifically, the Activity contributes to Intermediate Result (IR) 1.1 – A More Diverse Private Sector, and IR 1.2 – Enhanced Agricultural Competitiveness and Food Security. In support of this Development Objective, the AVC Activity seeks to: (1) create employment opportunities; (2) improve incomes; (3) increase fruit yield and quality; (4) increase packed and processed output; (5) increase targeted fruit and vegetable exports; (6) link USAID’s producers and processors to international markets; (7) strengthen relationships between educational institutions and the private sector.

2. Project Components AVC is organized into four Components, linked by cross-cutting themes, all targeted at economic actors along select fruit and vegetable (F&V) value chains. The mandate of each Component is: • Component 1: improve the quality and volume of agricultural production; • Component 2: improve post-harvest handling and production; • Component 3: facilitate market linkages; and • Component 4: link educational institutions with private sector demand.  3. Geographic and Commodity Focus

AVC’s work targets 33 districts across 12 of the 13 provinces of Uzbekistan with activities in at least one district of each province plus the city of Tashkent. A grand total of 34 geographic entities are covered by AVC representing significant geographic expansion since the original AgLinks (2008-11) and AgLinks Plus (2011-2015) projects.

# Province Districts AL ALP AVC Total

1 Samarkand Taylok Payarik Samarkand Urgut Bulungur 3 5 5 2 Namangan Pop Turakurgan Uychi Kosonsoy Chortok Yangikurgan 2 6 6

3 Ferghana Kuvasoy Ferghana Kuva Altyaryk 1 4 4

4 Tashkent Ohangaran Bustonlik Zangiata Parkent Kibray 5 5 City 5 Andijan Andijan Bulokboshi Hujaobad Marhamat Jalakuduk Kurgantepa 5 6 6 Bukhara Jondor 1 1 7 Karakalpakstan Nukus 1

Tashkent

8 Jizzakh Bakhmal 1 9 Kashkadarya Kitab 1

plus 10 Navoi Khatirchi 1 11 Syrdarya Syrdarya 1 12 Khorezm Bogot 1 Sub-Totals 6 26 33 34

Table 1: AVC Geographic Targeted Districts by Province, including Tashkent City

Although it is generally agreed AVC will focus on edible horticulture, the signed MOU did not designate specific crops for project activities. AVC target value chains were determined by the 2015 Horticulture Sector Stock Taking and Commodity Selection report, which identified target crops based on competitiveness, development impact, and feasibility to best achieve AVC’s development objectives. Target value chains include stone fruits, pome fruits, grapes, vegetables, and gourds.

B. ADMINISTRATIVE

1. Personnel

AVC’s Chief of Party, Charles May, demobilized from the project on May 31, 2018 to return to the DAI Home Office. Recruitment of the new COP was conducted in April – June. The new Chief of Party, Mr. Brian Kiger, was selected and approved by USAID on July 13, 2018. Mr. Kiger and his family will mobilize to Tashkent in early September and his start date is September 10, 2018. In the interim period, Sarah Wall, the AVC Home Office Project Manager is appointed Acting Resident Representative for DAI Global’s Representative Office in Uzbekistan. Ms. Wall conducted a Project Management visit to Uzbekistan during June 20-July 6, 2018 to provide support to the project team on development of the base period extension work plan, and support financial and administrative aspects of the Resident Representative Office. She continues to support the project as Acting Res Rep remotely from Washington, DC. The Deputy Chief of Party, Mr. Asror Nazirov, is acting as Chief of Party in the field for the AVC activity.

2. Other

AVC received a 6-month extension of the base period on May 25, 2018, which extends the project base period through November 30, 2018. AVC prepared and submitted a base extension period workplan on July 21, 2018, which represents a continuation of base period activities as well as preparatory activities for new partnerships and activities during the 1.5-year option period.

C. PROJECT ACTIVITIES UNDER COMPONENTS

The 3rd quarter of the USAID fiscal year marks a critical phase in management of the core horticultural production season, with a focus on wide application of plant pest and disease control techniques as well as application of improved techniques learned in previous quarters to improve partner performance in the 2018 agricultural season.

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

a. Improve On-Farm Productivity

Training of Trainers (TOT): Grapevine Green Grafting

On May 8-9, 2018, AVC conducted TOT in the Izboskan and Buloqboshi districts of Andijan province on the topic of grapevine green grafting in demonstration sites in the Bulokboshi district. From the Buloqboshi district, 53 people attended and from the Izboskan district, 11 people attended. Of the participants, 27 were women. The grapevine green grafting technique is relatively new, and was first adopted by Fergana and Andijan grape growers in recent years. This technique is becoming increasingly popular amongst viticulturists due to the resulting high survival rate per graft, ease of application, and higher economic efficiency rate compared to the traditional The training process dormant grafting approach. This technique has proven to be especially useful in transforming large hectares of vineyards from obsolete or low-demand varieties to more efficient, high-demand varieties within only a 1-year vegetation period, enabling a regular rate of production with new varieties as soon as 1 year after the grafting. The TOT program supported the spread of this technology through practical training for AVC partners from Kosonsoy, Turakurgon, Izboskan, Chortoq, Yozyovon, Parkent, Urgut, and Payariq districts.

The sub-group of female trainees and trainer at TOT

Participants are practicing the grafting technique

MASHAV Training. USAID and the Israeli Agency for International Development Cooperation (MASHAV in Hebrew) shared the costs for a group of Uzbek horticulturalists to attend a 3-week training in Israel on Innovative Technologies in Orchards and Vineyards (April 29 – May 19). The training program was held at the MASHAV International Agricultural Training Center (MATC) in Kibbutz Shefayim, Israel. Participants Group photo of MASHAV Training participants, including included: Shakhnoza Nurbekova of the Kamoliddin AVC-supported participants. Shakhnoza Farming Enterprise in Ohangaron district of Tashkent province; Azizjon Khamraliev of Azizbek AXA Farming Enterprise in Kuvasay district of the Fergana province; and Lutfiddin Nuriddinov of Riskidur Rano Farming Enterprise in Parkent district of the Tashkent province.

The training program covered important topics including innovative methods to solve issues in vertically integrated agricultural enterprises, best technologies and practices for pest and disease management, food safety control, and techniques to improve balance in the soil-water-plant relationship. The three-person Uzbek delegation consisted of private sector fruit and vegetable producers.

The MASHAV program included seminary trainings and practical tours to leading Israeli fruit and vegetable producers, post-harvest facilities and processor factories, and cooperatives. Complementing the curriculum were opportunities for participants to engage in cultural activities and meetings to exchange experience and knowledge with their peers from other countries. Field demonstrations The Uzbek trainee at certificate awarding ceremony exposed participants to the entire Israeli value-chain for fruit upon successful completion of the program and grape production, and introduced best practices and technologies for plant material production, fruit and vegetable production and management, post-harvest, and cold storage. Participating Uzbek trainees completed the training program prepared to apply the practices they learned and technologies they were exposed to on their own plots.

Student Internship. A practical training and a study tour were organized for the students of the horticultural department of Tashkent State Agrarian University and its Andijan branch. Students visited various fruit orchards, vineyards, pack houses, cold storages, processing companies and greenhouses to see and learn the best production, postharvest and marketing practices. During site visits and training programs, AVC staff spoke about the environmental compliance rules and regulations, protection of flora and fauna, mitigation and safety measures, and use of protective gears and clothes during application of chemicals. Details of the events include: o June 5-8, 2018: 17 students (6 female, 11 male) from the Andijan branch of TSAU visited the following sites to see and learn good agricultural practices: ▪ “Barkash Qurilish” LLC’s orchard. in Izboskan District of Andijan Province. ▪ “Bogishamol” AF’s orchard and vineyard in Hojabod District of Andijan Province ▪ “Dolanalik Bogbon Mevasi’ FE’s vineyard in Bulakbashi District of Andijan Province. o June 19-21, 2018: 55 students (27 female, 28 male) from TSAU visited the following sites to see and learn good agricultural and postharvest practices: ▪ “Gulbog Burhon” FE’s vineyard in Parkent District of Tashkent Province ▪ “Zarkent Universal” FE’s cold storage facility in Parkent District of Tashkent Province

b. Increase the Quality and Availability of Agricultural Inputs

Private Sector Tissue Culture. The third quarter of FY 2018 has been challenging for private sector tissue culture labs (TCL). An unusually cool late-spring and rain heavy month in June led to sharp increases in disease and antibiotic stresses. As described in the FY Q2 Report, De Nova Agro was to deliver 250,000 Krymsk 5 cherry rootstocks to Agromir; however, an April frost resulted in significant losses in De Nova’s production quantity. De Nova was only able to successfully produce 150,000 Krymsk 5 rootstocks. After long negotiations, Agromir agreed to postpone the entire order of 250,000 rootstocks until Spring 2019. 110,000 of the Krymsk 5 were bought by Gold Dried Fruits for their Turaqurgan cherry orchards. 8,000 were purchased by another AVC partner and planted in To’y-Tepa (Quyi Chirchiq district).

The AVC Component 1 Team will continue to closely monitor the ability of these rootstocks to adapt to their local environments throughout the summer. In addition, the AVC team plans to visit GDF’s Turaqurgan orchard site for follow-up on the progress of the Krymsk 5 rootstocks that were grafted at the site during the summer of 2017 and the spring of 2018.

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

The 3rd quarter of the USAID fiscal year marks the peak of the horticultural season, and post-harvest activities are focused on harvest, sorting, grading, pre-cooling and prolonged storage.

a. Facilitate the Advancement of Cold Storage Practices

Cold chain study tour (in partnership with CTJ Tajikistan). USAID’s AVC Project in Uzbekistan organized a Cold Chain study tour in collaboration with CTJ Tajikistan June 18-20, 2018.A group of 15 farmers, entrepreneurs and cold store owners from Khatlon Province of Tajikistan visited Fergana valley to observe and learn from Uzbek cold chain practices, achievements, and planned future investments, and to discuss plans for future cooperation between the two countries to share knowledge and exchange ideas in the cold chain sector. Tajik participants visited various sizes of cold storage facilities ranging from conventional 100- ton capacity facilities, to sophisticated high tech 3000-ton capacity facilities, to vertically and horizontally integrated multidisciplinary farm enterprises and service providers. On day 1 (June 18), the delegation visited the following three cold storage facilities: Isakjon Boymatov, owner of a 500 ton cold store and adjacent fields in the Altiarik district of Fergana province; Erkin Shorahimov, owner of a 800 ton cold store and adjacent fields in Altiarik district of Fergana province; and Hotam Saidmuhamedov, owner of a 2000 ton cold store facility and ultra-low oxygen (ULO) system in Altiarik district of Fergana province. On day 2 (July 19), the delegation visited the following four sites: Habibulla Nazarov, owner of a grape field in Bulokboshi district of Andijan province; Iqboljon Turgunov, owner of a 1000 ton cold store facility and export-oriented transit rooms in Bulokboshi district of Andijan province; Navigul LLC, a vertically integrated company with a 2000 ton cold store facility, adjacent fields, and processing facilities in Hojabod district of Andijan province; and Mirzohid Kurbanov, owner of a 1500 ton cold store facility and ULO system in Andijan city of Andijan province. On Day 3 (June 20), the delegation visited the following sites: Abdugaffor Haknazarov, owner of a 200-ton cold store facility and consolidation point for cherry, apricot, and persimmon in Turakurgan district of Namangan province. The delegation consisted of 15 Tajik farmers, cold store owners, and entrepreneurs, 1 USAID/Tajikistan representative, and 1 CTJ Activity staff member. During the study tour, visitors were able to observe the harvesting, sorting, packaging and storage techniques of tomato, carrot, peach, apricot and cherry. Uzbek farmers and visitors discussed and shared common production and postharvest practices, issues and achievements. As a next step for partnership and knowledge exchange, the Tajik participants invited the Uzbek entrepreneurs who hosted the delegation to attend and participate in a trade show organized in Khatlon, Tajikistan on August 6-8, 2018.

Tajik delegation/farmers, Tajik delegation/farmers, Tajik delegation/farmers, entrepreneurs and cold entrepreneurs and cold store owners entrepreneurs and cold store owners store owners at processing at vineyard at cold store plant

CTJ Turkmenistan’s visit to AVC’s partners’ sites. May 29-June 1, 2018, CTJ Turkmenistan’s Country Director, Rustam Bekmuradov, visited AVC’s partners’ sites, orchards, greenhouses, cold storage facilities, grocery store chains and service providers in Uzbekistan to observe and learn about Uzbek models of value chain development. During his visit to Uzbekistan, Mr. Bekmurodov met with various experts of the horticultural value chain sector, discussed common challenges and solutions, and exchanged ideas regarding strategies for replication of similar activities and projects in Turkmenistan. Mr. Bekmurodov toured Korzinka.uz’s cold store facility in the Bektemir district of Tashkent province. Korzinka.uz’s Fresh Produce Specialist, Ilhomjon Usmanov led the tour and demonstrated daily operations of the facility. Mr. Bekmurodov toured Golden Dried Fruit’s logistic center and vegetable field in Bektemir district of Tashkent province. He also attended the Uzbekistan Agrotech & Agromash Expo 2018, where he met with several cold storage service providers.

CTJ Turkmenistan Country CTJ Turkmenistan Country CTJ Turkmenistan Country Director, Rustam Bekmuradov Director, Rustam Bekmuradov Director, Rustam Bekmuradov at at GDF’s field at GDF’s Logistic center Grocery Store korzinka.uz’ cold storage

Collaboration with grocery store Korzinka.uz. In 2018, Korzinka.uz completed a 5300 ton-capacity cold storage facility for consolidation, storage and delivery of fresh produce to its grocery stores. The facility is relatively large, and Korzinka.uz doesn’t have experience in operating and maintaining a facility of that size. The Director and Managers of Korzinka.uz’s fresh produce department have attended all AVC cold chain and post-harvest training programs and field visits since 2017. AVC’s Component 2 Team (including AVC’s GCCA Consultant) have been in regular contact with Korzinka.uz since the launch of their cold store in April to support the cold store staff and produce technologist. In June, at the request of Korzinka.uz, AVC organized a site visit and study tour to an AVC partner cold storage facility in Parkent District of Tashkent Province. The objectives of the visit were to demonstrate cold chain techniques and postharvest operations as well as establish a partnership between the cold store entrepreneur and Korzinka.uz to supply fresh produce. Korzinka.uz’s cold store manager and engineer learned best practices in operation and maintenance of the cold store, temperature management, working with customers, crates for each produce, labor management, and annual maintenance of the refrigeration units, from AVC’s more established cold store partner. The site visit covered the apricot, cherry, carrot and potato storage operations. AVC/GCCA will continue to work with Korzinka.uz to link them with additional farmers and cold store owners in other regions of the country to support supply and capacity of their new cold store facility.

Korzinka.uz’s cold store manager at AVC’s partner, Inomjon Ashurov’s business, “Zarkent Universal” FE in the Parkent district of Tashkent province

Grape Value Chain Training. AVC organized a Grape Value Chain training program during May 1-4 of 2018 in Samarkand, Navoiy and Bukhara provinces for growers, cold store owners, and entrepreneurs. Experienced cold store owners and growers from Fergana valley were taken to Samarkand, Navoiy and Bukhara provinces to provide practical consultation to AVC’s less experienced partners in those provinces – growers and cold store owners – on preparation for grape harvest season, pre-cooling, packaging and storage practices. In total, consultants visited 10 grape fields and cold store facilities, and provided technical consultation to more than 40 local producers/cold store owners. Local partners and consultants exchanged contact information to continue to exchange information and knowledge about grape production and postharvest practices. AVC plans to organize similar practical training programs in Fergana in the month of August to demonstrate advanced grape post-harvest technologies. The visitors from Samarkand, Tashkent, Navoiy and Bukhara will learn advanced grape post-harvest techniques and technologies.

Consultants at cold store Consultants at vineyard Discussion of grape postharvest

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

On-Site Cold Store Consultations. AVC/GCCA provided technical consultation to existing and new partners in many of AVC’s target provinces. As each cold store facility that AVC supports is unique, site visits are important to address their individual challenges and needs. AVC/GCCA staff visit the site, examine and assess the problems, and provide targeted recommendation to solve the issue and prevent future complications. To demonstrate improved and tested postharvest techniques and technologies, the partners are often taken to another advanced partners’ facility. During Q3, the AVC/GCCA Component 2 Team visited more than 35 cold storage facilities to provide on-site consultation throughout the reporting period (April 1 – June 30). Information on these supported facilities and their locations are provided in the table below:

# Prov Dist Main activity FIRM/ COMPANY name Name of Head/Owner

Dolanalik Bogbon 1 AND Bulokboshi Cold Store, 30 ton Habibulla Nazarov Mevasi 2 AND Bulokboshi Cold Store, 100 ton Private Kahramonjon Ismoilov 3 AND Bulokboshi AgriFirm, Cold Store Davron Agrosanoat Ravshan Nosirov Cold Store 1000 ton, 4 AND Bulokboshi Izzatulloh Ikbol Ikboljon Turgunov Export 5 AND Hujaobod AgriFirm Uzum Sharof Export AF Qosimjon Yulchiev Hojaobod Agro-Holod 6 AND Hujaobod Cold Store, 400 ton Azamjon Toshboyev Service 7 AND Andijan Cold Store Inter Agro LLC Mirzohid Kurbanov 8 FER Altyaryk Exporter, Cold Store Erkin Shorahimov PE Erkin Shorahimov 9 FER Ferghana Offseason Seller Far Vodiy Minora Plus Kahraman Baltabayev 10 FER Altyaryk Consolidator, Cold Store PE Sohibjon Holmatov Sohibjon Holmatov Production, Cold Store, 11 FER Altyaryk "M Boymatov"FE Isokjon Jalilov Export Altiarik Sara Mevalari 12 FER Altyaryk Cold Store, Export Sherzod Mamajonov LLC Production, Cold Store, 13 FER Kuvasay "Ashur Madaminjon" FE Burhoniddin Jamolitdinov 100 ton Production, Cold Store 14 FER Kuvasay Azizbek MHA FE Alijon Hamraliev 150 ton 15 NAM Chust Cold Store, 400 ton Olmos Farm Tek LLC Sirojiddin Nishonov 16 NAM Turakurgan Cold Store, 300 ton Private Abdugaffor Haknazarov Olmos Joint Stock 17 NAM Namangan Cold Store Akmalhon Ikromov Company Sahovat Savdo Fayz 18 BUH Bukhara Cold Store Zafar Tohirov LLC 19 BUH Jondor Cold Store 100 ton/Grower "Laziz Jura" FE Utkir Ruziev Komilov Shohiddin Bogi 20 BUH Jondor Cold Store 50 ton/Grower Tojiddin Komilov FE 21 BUH Jondor Cold Store 600 ton JoiZar FE Rasul Shirinov 22 BUH Jondor Cold Store 400 ton Olim Said Subhiddinbek Olim Dilmurodov 23 BUH Kogon Plan to build Private Naufat Bahromov 24 NAV Qiziltepa Cold Store, 50 ton Nusrat Bogi Farm Shuhrat Sayfullaev

Omonov Dilmurod Bogi 25 NAV Hatirchi Cold Store, 300 ton Nomon Hasanov FE 26 TAS Chirchik Cold Store, 100 ton Marco Polo / Forza Rustam Azizov 27 TAS Tashkent Grocery Store Karzinka.uz Bohodir Jalolov 28 TAS Kibray Cold Store, Processing "Frozen Products" Zuhriddin Ihlasov Zangiota Turk-n 29 TAS Zangiota Cold Store, 400 ton Fahriddin Hikmatov Agrobusines 30 TAS Tashkent Exporter, Cold Store S Lola llc Farruh Zohidov Zarkent Universal 600 31 TAS Parkent Cold Store Inomjon Ashurov ton 32 SAM Samarkand Farmer/Cold Store Mahmudov Umedjon Alam Mahmudov 33 SAM Samarkand Farmer/Cold Store Sobirov Ergash boglari Rahmat Sobirov 34 SAM Samarkand Farmer/Cold Store Isomiddinov Najmi Bogi Narzi Najmiev Tursunov Asrorhon 35 SAM Samarkand Cold Store, 500 ton Alisher Karimov Boglari Table 2: Name, information, and location of 35 cold stores where consulting services were provided in the reporting quarter.

Consultation on design and construction of new cold store facilities.

500-ton cold store: AVC/GCCA provided technical assistance to AVC’s longtime partner, Isokjon Boymatov, owner of “M Boymatov” farm enterprise (FE) located in Altiarik District of Fergana Province in designing and constructing a new 500-ton cold storage facility. AVC provided technical consultation of the design of the cold storage facility (height, number of rooms, docking areas), type and capacity of refrigeration systems, flooring section, insultation material, and selection of a qualified and experienced contractor to complete the construction. The facility was designed solely for storing grape. It has all required facilities such as leveled docking area/gates, refrigerated receiving area, sorting-grading room, pre-cooling chambers, and prolonged storage rooms. All earth, concrete and metal structure components were already completed. The sandwich panels, doors, and refrigeration equipment will be installed in August 2018. The new 500-ton cold store will be attached to the existing 300-ton cold storage facility, and during the grape harvest season, it will be able to handle up to 6,000 ton of fresh grape, mainly for export.

Construction process

2000-ton cold store: In April, a local entrepreneur from Altiarik District approached the project requesting technical consultation during the construction of a new cold store. AVC/GCCA’s staff provided support and training in improved cold chain practices such as refrigeration of the corridor, ventilation systems to remove the released ethylene from fresh produce, and operation and maintenance of refrigeration equipment. Additionally, the new partner joined AVC’s Cold Store Telegram Group to exchange information and share experience with other members of the group.

During construction After construction, refrigerated corridor

100-ton cold store: In collaboration with UNDP’s Aid for Trade Project, AVC/GCCA has been providing technical assistance to design and construct a 100-ton complex cold storage facility in Kuvasay District of Fergana Province, in partnership with Burhoniddin Jamoliddinov, owner of “Ashur Madaminjon” FE. In addition to cold storage, the facility has a drying line for fresh fruits and vegetables. The facility will serve as consolidation center and pack house for locally grown fresh cherry, apricot, peach, apple and persimmon. The processed and dried products will be locally marketed. AVC provided technical assistance in design of the facility including height, number of rooms, and docking area; type and capacity of refrigeration systems; flooring; and insulation.

Cold store complex Processing room

“Sovuqhona” Telegram Group promotes the cold store practices. AVC’s Cold Storage Telegram Group (https://t.me/sovuqxona) was established to support fast and instant dissemination of new information, knowledge, techniques and practices among cold storage owners and service providers, and to allow cold store entrepreneurs to share achievements, common challenges, and resolutions with their peers. Currently, the group members are active daily and total members reached 290 people, as of June 2018. During Q3, the most discussed topics on the telegram group were the following: (1) authenticity of Bitzer refrigeration compressors, (2) optimal storage temperatures of cherry, apricot, peach, garlic, tomato, onion, potato and carrots, (3) best type of insulation material and flooring section, (4) hydrocoolers (5) forced air coolers, and (6) importance and application of grape guards (sulfur pads). There are ten service providers in the group that answer the group members’ question related to refrigeration units, evaporators, and other technical questions.

Front page Discussion Circulation of CTJ’s announcement

Participation in International Conference. GCCA’s cold chain consultant, Mr. Mumin Isamiddinov, made a presentation on the “State of Uzbekistan Cold Chain” at the Sustainable Development of the Value Chain in Agricultural and Forestry Sectors Conference, an international conference organized by and held at Samarkand Veterinary Medicine Institute on May 24, 2018. The consultant spoke about the history, current, and future trends of cold storage business in Uzbekistan to the professors, scientists, experts and private sector representatives. Information and data presented by the consultant led the conference participants into lively discussions about the cold chain sector.

GCCA consultant speaks on the state of cold chain in Uzbekistan at an international conference organized by Samarkand Veterinary Medicine Institute.

3. Component #3: Facilitate Market Linkages

a. Create Market Linkages with New Foreign Markets

Macfrut-2018 Fruit and Vegetable Show and Professional Study Tour in Italy. Macfrut is the most important Fruit and Vegetable event in Italy with representatives from all segments of the supply chain in attendance. USAID AVC began a relationship with Macfrut in 2016 via an initial market exploration to Asia in September 2016 to attend Asia Fruit Logistica Hong Kong. This was followed in 2017 by the co-sponsoring of a small Uzbek delegation to attend Macfrut 2017 in May 2017. The May 2017 attendance deepened the Uzbek-Macfrut connection, with the latter committing to a self-funded visit to Tashkent in October 2017 along with representatives of Italian agribusinesses interested in doing business with Uzbekistan. Macfrut organizers together with the Italian agribusiness association consortium, CERMAC, offered a preferential booth location for Uzbekistan at Macfrut 2018, pre- and post-exhibition business meetings for the Uzbek delegation, and cost-share on some local costs. In addition, Uzbek companies chosen to be exhibitors in the booth were Uzbekistan Booth Graphics at the Macfrut - featured in the exhibition catalogue and were published in the 2018 international magazine – Fresh Plaza (http://www.freshplaza.it/article/98014/DallUzbekistan-al- Macfrut-aziende-in-cerca-di-partner-per-vendere-e- comprare).

USAID AVC staff worked with local partners to identify those both willing and able to be represented in an Uzbekistan-specific booth at Macfrut 2018. A total of 3 exhibiting partners met the requirements of branding, marketing and product (Siyob Shavkat Orzu Farm Enterprise from Taylak district, Samarkand province; Red Professional Tour at the Mazzoni Group’s Pack LLC from Miraabad district of Syrdarya province; and Orchards Garden Cells LLC from Tashkent City). AVC worked with each of these companies to assure their design and marketing was consistent and of high quality across their business cards, brochures and hand-outs, as well as the booth graphics. Two public sector participants were also selected from the Ministry of Agriculture and the Ministry of Water Resources and Tashkent State Agrarian University (TSAU). Also, four new local agribusiness partners (new to AVC) attended as participants to identify potential equipment, marketing partners, and buyers. These partners were Real Agro Forward LLC from Urta Chirchik district of Tashkent province; Dried Ingredients Foreign Enterprise from Turalurgan district of Namangan province, Property Industry LLC from Bukhara City of Bukhara province, Inter Agro Star from Andijan province, and Frozen Products LLC from Kibray district of Tashkent region.

In addition to attending Macfrut, the 6-day program provided hands-on, interactive, site visits to the local facilities of more than ten exhibitors including farms, companies and organizations involved in orchard A group photo of Cermac president (2nd from left), production, sorting and packing, storage (including cold Macfrut president (in the middle) and Uzbekistan storage), processing, retailing and consumer sales. Most delegation importantly, Uzbek companies had a good opportunity to meet and discuss with potential partner businesses and buyers both at the dedicated booth at Macfrut and outside the trade show. Among the countries who showed interest in Uzbek products were Gulf countries such as UAE and Bahrain, China, Eastern European countries such as Belarus and Russia as well as Italy. The representative of Tashkent State Agrarian University had a

15 meeting with a professor from the University of Bologna, discussed potential collaboration between two universities, and initiated an MoU as a first step of cooperation.

The exchange visit resulted in several agreements to export Uzbek fresh and processed produce on a test case basis and to introduce Italian horticultural technologies to Uzbekistan through participation in the annual agricultural exhibitions held in Tashkent during fall. Specifically, ‘Gardencells’, a private company from Tashkent, agreed with a leading UAE dried fruits & nuts export-import company, ‘Abuseedo’, to send Uzbek raisins and peanuts for testing at the latter’s laboratory before concluding further export transactions. If all UAE inspection Siyob Shavkat Orzu FE (right) and UAE Almaya parameters are met, exports of dried fruits and nuts from Group (left) Representatives are on Agreement on Gardencells to Abuseedo will begin later this season. Dried Fruits

Similarly, Red Pack, LLC from Syrdarya Region reached an agreement to send export test shipments of its Torpedo variety of melons to an Italian family-run company, Di Pisa, to introduce this flavorful Uzbek variety to the Italian market. If Italian consumers show demand, additional shipments will be exported on a non-test basis. In addition, Red Pack, LLC agreed with Italian Wellness Fruit srl to send test products of fresh pomegranates of sour varieties per the latter’s requirement.

Another private company from Samarkand Siyob Shavkat Orzu FE displayed their dried fruits, nuts and pulses, and agreed with a Belarussian Company Fruitreal, who has supermarket chains across the country, to send several dried fruit products as a test export and eventually start a prospective business with this company.

Based on the strong interest among participants at Macfrut in Red Pack, LLC, AVC supported the Red Pack representative to stay an additional week in Italy to meet with several Italy-based companies. This included visits to the following companies: Infia Srl (clamshell packaging), Wellness Fruit Srl (Organic pomegranate buyer), TR Turoni Srl (Production tools and testing equipment), and Naturkost Furchat and Sakir Radschapov GbR (channel for large German supermarket chain).

Target Market-Oriented Product Improvement and Test Shipments to Export Markets. AVC supports partner firms to access export markets by identifying potential buyers and sellers to facilitate deals, introduce technologies and practices that bring products up the required standard for specific end markets, and conduct on-site assessments to ensure the export shipments match supply and quality requirements prior to export. This quarter, AVC focused on supporting local exporters with proper packaging technologies to meet end- market requirements for fresh cherries. The following deals were accomplished during the months of April to June:

Fresh Sweet Cherries to Belarus: A local export company, Zarkent Universal FE, located in Parkent district of Tashkent province, requested AVC to help identify and link the company with a buyer in Belarus, Fruitreal LTC, and support their packaging technology prior to shipment. AVC provided support by sourcing 5-kg corrugated boxes and supporting plastic bags to meet buyer’s packaging requirement. The result was: • Fresh cherries were classified as of high quality per local standard • Shipment valued at USD 36,000 • Total of 3,600 boxes / 20,000 kg gross / 18,000 kg net weight were exported as a first shipment • Shipment was done by truck • The product was sold in Minsk on distribution centers • Follow-up contract was signed to ship 40 tons in volume and 80,000 USD in value in the 2018 agricultural season • Agreement to work together in 2018 agricultural season with table grapes

Fresh Cherries are Being Scaled Fresh cherries are sorted and packaged Fresh cherries are pre-cooled for Belarus Market properly under AVC’s instructions before the export

Sample Fresh Cherries Packaged in 5-kg Boxes Sent to India Fresh Sweet Cherries to India: USAID’s AVC Activity facilitated a three-part market channel for commercial cherry exports to India by providing a partner cherry producer from Samarkand with post-harvest and packaging technical support, connecting the producer to an AVC partner exporter, and linking the exporter with a buyer in India. During MacFrut 2017, AVC and a partner exporter identified an online buyer-seller database, Fructidor. Through this database, AVC identified a buyer in India (AgroWorld) interested in importing Uzbek cherries. AVC linked the Uzbek exporter with a producer in Samarkand that could provide cherries per the buyer’s requirements and provided packaging and branding/logo design support to the exporter for a test shipment of 2kg cherry packages. The Indian buyer was pleased with the quality and caliber. This year, AVC supported the exporter to again source cherries from the Samarkand producer to send a 500kg commercial shipment of 28+ caliber cherries using 5kg packaging, again providing branding and logo support for the shipment. The shipment is valued at USD 2,400.

Improve exporter's compliance with international standards. AVC is focusing on improving the quality and safety of the fruits and vegetables grown in Uzbekistan. This quarter, the AVC Team facilitated a local partner to achieve an international GlobalG.A.P. certification for iceberg lettuce, grown in the Tashkent region. The local partner, Green Agro Food LLC, has fully complied with all food safety and quality requirements of GlobalG.A.P and successfully passed the inspection. With GlobalG.A.P Certificate Green Agro Food LLC can supply McDonalds’ restaurant chain with iceberg lettuce through the importer and approved supplier for McDonald’s in Russia, Belaya Dacha LLC. Now the company will be exporting its products at a price 10% higher than the products without certificate.

Support Local Partners to Access Direct Markets. AVC’s local partner, Coteria Foods LLC, located in Samarkand district, has been producing and selling capers through partners from Turkey. The goods are exported to Spain and Turkey and negotiations are underway to export to the USA. In order to be able Obtained Global GAP Certificate to sell directly to European for Agrifirm ‘Green Agro Food’ LLC and US markets, the company installed a new Pre-inspection preparations for ISO processing and cleaning line. To sell directly to US/European partners, 22000 at the partner’s facility they needed to achieve international food safety standard ISO 22000 for their new processing facility. This standard was specifically required by a potential buyer from the USA. The AVC Component 3 team started working with the company to implement requirements to achieve the standard in February 2018. In June 2018, AVC oversaw the completion of the Certification Audit, which was successfully completed. The certificate will be issued in coming weeks, at which point the company will be able to export directly to US and EU markets.

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

a. Agricultural Universities

Uzbek-US partnership festival in Tashkent State Agricultural University. Uzbekistan is making significant gains in developing its horticulture sector. Increased yields on orchards and vineyards is leading to growing demand for proper storage of harvested fruits and grapes. In response to this demand, the capacity of cold stores is constantly growing, and owners are adopting more modern, advanced technologies, facilities, and design.

University professors regularly update their lecture notes to include new trends in cold storage development and inform students about them during classes. In addition to theoretical USAID and TSAU representatives open learning, students also need the opportunity to have hands on Cold Store practice in the operation and management of a modern cold store facility. To provide this type of hands on training, AVC assisted TSAU to install a modern cold store at the University’s Educational Research Farm. This facility includes the capacity for demonstration in all advanced practices used in the U.S. modern cold store sector including remote temperature control, humidifier, ethylene gas fan, CoolBot, precooling corridor, docking, and separate operator’s office. The cold store will serve three key purposes: a practical educational tool for students, a resource for postharvest handling research, and a facility for storing produce harvested at TSAU’s Educational Research Farm for

18 further distribution in University’s cafeterias. Total capacity of the cold store is 25 metric tons, which consists of 5 metric tons of precooling corridor and 20 metric tons of main cold room. The main room is consistent with the capacity of refrigerated trucks (also 20 MT) used for horticultural. The cold store installation was a cost- shared initiative between USAID and TSAU. TSAU was responsible for all infrastructure (electricity, water, paved road, etc.), while AVC oversaw design and installation of panels and equipment. On May 22, 2018, AVC and TSAU held an official opening ceremony, where representatives of Ministry of Agriculture, TSAU professors and students, USAID officials, and CTJ project staffers and other invited guests were in attendance. Garry Robbins, USAID UCO Director and Botirjon Sulaymanov, TSAU Rector, held a ribbon cutting ceremony, celebrating the start of the cold store’s utilization. AVC staff organized tour to the cold store

for all participants of the event in several shifts.

Horticultural Value Chain Student Clubs (HVCSC). On the same, AVC also celebrated the opening of the Horticulture Value Chain Student Clubs (HVCSC), another cornerstone of AVC and TSAU partnership. Through AVC’s experience cooperating with Universities, the project has learned that students are eager for hands on practice in the techniques they have learned in the classroom. AVC proposed to establish a Student Club on campus (HVCSC), where students can engage in out of classroom collaboration, hands on practice, and agricultural research. HVCSC unites students from different faculties – agronomy, plant protection, processing, etc. This design will ensure these clubs USAID UCO Director’s speech at introduce the concept of an interconnected value chain in Ag HVCSC opening Universities.

AVC’s proposal to create HVCSC was welcomed by the Higher Education Department of the Ministry of Agriculture. This activity was on cost sharing basis: Universities allocated appropriate auditoriums and fully rehabilitated them, while AVC equipped them with furniture, horticulture value chain charts, IT equipment, and tools and testers used in orchards and processing facilities. Auditoriums were allocated by Tashkent State Agrarian University, Samarkand Veterinary Medicine Institute, the Andijan branch of Tashkent State Agrarian University, the Nukus branch of Tashkent State TSAU Rector demonstrates HVCSC Agrarian University, and the Termez branch of Tashkent State equipment Agrarian University. The official opening of HVCSC located in TSAU was made by its Rector Botirjon Sulaymanov and USAID UCO Director Gary Robbins. In his opening remarks, the Rector emphasized that sector specific student clubs like HVCSC is a new approach in Uzbekistan’s higher education system, which will allow to all students interested in different aspects of horticulture to learn from each other and conduct joint research on different topics of the sector’s development.

Students Horticultural Knowledge Bowls. Last year AVC initiated and provided logistic support to organize the Students Horticulture Knowledge Bowls. This activity was well received by the Higher Education Department of the Ministry and Agricultural Universities, both faculty and students. This year universities expressed willingness to have another round of competition, host and organized by the Universities themselves, with AVC providing only guidance on how best to organize the competition. AVC in collaboration with leading horticulture professors developed procedures and designed stages of the competition. All three Ag Universities participated in competition, and the final national-level round of the bowl was held in Tashkent on May 22, 2018. Three teams “Agrounited” from Andijan, Hall with 500-person capacity is full of spectators “Ecomeva lazzati” from Samarkand and “Istiqlol mevalari” Winner’s Cup goes to Andijan

19 from Tashkent competed in the final round. The bowl’s framework was designed to incorporate education tools and allow students to express their individual and group creativity around a horticultural theme. Interpersonal interaction, teamwork, problem solving, interdisciplinary approach, and cooperative learning were all emphasized by this structure. The team structure, based around existing university departments, had the additional benefit of students and professors working together for a common goal to win the competition. The final round took place in the main conference hall of TSAU, which accommodates 500 spectators. In the audience were local students, professors, and about 150 fans of the Samarkand and Andijan teams who travel to Tashkent to support the teams from their schools. The team from Andijan won the final cup. At the end of the competition all winners and participants, along with their mentors, were awarded with educationally relevant prizes. A video from the event can be seen here: https://m.youtube.com/watch?feature=share&v=XyW0HxNlUdU

Collaboration Between Leading Foreign Universities and Uzbek Agricultural Universities. In October 2017, AVC co-sponsored an official Uzbek delegation of agricultural university management and professors to visit their colleagues at Michigan State and Ohio State universities. The purpose of their visit was to establish links and exchange modern higher education technology and techniques, since the quality of US higher education is acknowledged worldwide. During the October 2017 visit, Michigan State University signed separate, independent MOUs with Tashkent State Agrarian University, Samarkand Veterinary Medicine Institute (then Samarkand Agricultural Institute), and the Andijan branch of Tashkent State Agrarian University (the Andijan Agriculture Institute). Ohio State University also signed an MOU with Tashkent State Agrarian University. Through these MOUs, the Uzbek universities negotiated potential avenues for partnership with Michigan State University’s management and officially TSAU and MSU sign Declaration for formalized partnership between the U.S. and Uzbek Collaboration universities. The MOU encouraged several activities including exchanging faculty, students, academic information and materials, with the understanding that this collaboration will benefit both MSU and TSAU. To solidify the framework for partnership laid out in the MOU, the Higher Education Institution’s Department in the Ministry of Agriculture initiated a reciprocal visit for MSU faculty and staff and requested AVC to assist TSAU in developing the visit program. The Ministry of Agriculture and Ministry of Water Resources approached AVC/USAID to request co-finance for the delegation’s lodging in Tashkent. The MSU delegation visited Tashkent from May 20-25, 2018. A MSU delegation was led by Dr. Steven Hanson, Associate Provost and Dean of International Studies and Programs (ISP) and included three additional medium to high level representatives including Ms. Gretchen Nestler, Mr. Sean Vawrie Solin, and Mr. Greham Norman Alam. Dr. Hanson leads MSU's international programming efforts, including multidisciplinary research and strategic partnerships with higher education institutions abroad. During the visit, American professors met with the TSAU leadership in Kibray district in Tashkent province, visited university labs and research plots, and met with colleagues in university departments. Because of the visit, a Declaration for Collaboration was signed by both parties. While the MOU signed in October 2017 officially formalized partnership between the partners, the Declaration for Collaboration, specifically laid out several activities agreed on for cooperation, including establishment of advanced technology programs at TSAU facilities to create a fee generating service, organization of seminars taught by MSU professors to TSAU faculty and students, sending TSAU Master’s and Ph.D. students to MSU, etc. The final meeting and Declaration signing ceremony was held in newly opened HVCSC premises at TSAU.

Uzbek University Academics Replicate US Counterparts’ Best Practices. One of the key activities observed by the participants in the exchange visit to MSU and OSU was the use of inter-university exchange visits by visiting lecturers from sister national institutions. This was identified as an inexpensive and efficient means to share best practices and enhance the capacity of multiple professors. Upon their return to Uzbekistan, the delegation members actively sought to implement this practice and chose to begin with the Andijan Branch of Tashkent State Agrarian University (TSAU) hosting visiting professors from both Samarkand and Tashkent on April 26-27, 2018.

Participants of the first professors’ NEP Professors learn modern grape cultivation techniques at farmer’s field

The NEP delegation included 2 professors from TSAU, 1 professor from the Nukus branch of TSAU, professor from the Termez branch of TSAU, 2 professors from the Samarkand Veterinary Medicine Institute, and 16 professors from the Andijan branch of TSAU. The topic chosen for the exchange visit was “Horticultural produce processing” with the most knowledgeable professors teaching this subject mobilized. A total of 6 visiting professors presented at TSAU Andijan, including some from the Nukus and Termez branches of the flagship Tashkent State Agrarian University. A total of 22 TSAU Andijan professors and post-graduate students participated in the two-day event. Roundtable discussions were held around 4 themes: (1) best methodological approaches for this subject; (2) master classes - lectures by visiting professors to TSAU Andijan students; (3) site visits to leading practitioner facilities; and (4) wrap-up session to formulate conclusions and develop recommendations for next steps. Though initially it was intended that “masters” would lecture and hosts learn, eventually everyone acknowledged learning something from each other and created a nascent network linking both private and public horticultural practitioners.

b. Research Institutes

Mirzaev Horticultural Institute. AVC’s biotechnologist Aziz Khakimov is continuing providing on the job consultations for Institute’s TCL on demand basis. Mirzaev’s TCL is beginning to commercialize their operations and was able to sell about 12,000 Krymsk 5 cherry rootstocks at the price of 8000 UZS (approximately USD 1).

Vegetable Research Institute (VRI). AVC worked closely with VRI on testing different measures to control Tuta Absoluta both in greenhouses and open field during the 2017 agricultural season. Based on collected data and information, VRI with AVC support is developing farmer manuals on P&D I&C for Tuta Absoluta both for greenhouses and open fields.

5. Collaboration with other organizations

AVC staff met with the following organizations this quarter to discuss potential cooperation and share experience:

• OSCE Agromart project: AVC staff met with project representatives who were looking for agriculture related information to enrich the content of their web portal. AgroMart’s project goal is to create a useful, accessible and interesting web portal for all who participate in the agricultural sector of Uzbekistan. It provides consultancy services in such areas as agronomy, melon growing, veterinary medicine, viticulture, animal husbandry, vegetable growing, poultry farming, fish farming, horticulture, agricultural economics and legal issues. It has a trading platform for free where anybody can post and advertise

their own services and products. It was agreed that AVC will share its developed farmer’s manuals with Agromart.

• World Bank AVC staff met with a delegation from the World Bank, Dilshod Khidirov, Agricultural Project Manager, and Andriy Yarmak, Horticulture Development Consultant. Their task was to learn from the project about general trends of agriculture and particularly horticulture sector development in Uzbekistan. A special point of interest was technical assistance that could be provided by AVC, as WB plans to launch a $24 million technical assistance program.

• FAO AVC staff met FAO representatives who are conducting feasibility research for a new potential project in the apiculture sector. The project would have a two-year duration with a $400K budget. FAO representatives were aware about DAI’s previous agricultural projects’ activities related to beekeeping and asked about details of those activities. Parties decided that there is potential for cooperation between the two projects. Specifically, AVC could provide training programs on horticulture for beekeepers, while the FAO project conducts beekeeping trainings for AVC beneficiaries. Also, the two projects could link horticulturalists and beekeepers, so beehives can be optimally placed in orchards during flowering time to maximize both pollination and honey production.

6. Women in Agriculture

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

The grape grafting TOT held in Andijan included 15 female participants in the Buloqboshi district (28% of district participants) and 10 women in the Izboskan district (91% of district participants).

The MacFrut delegation included 1 female participant, the representative of Siyob Shavkat Orzu FE, who was an exhibitor at the event.

Of the 72 students that participated in the AVC Student Internship program this quarter, 33 were female (46%).

D. MONITORING AND EVALUATION

1. Monitoring and Evaluation

The table below provides summary data by indicator and progress towards the 2018 target.

2018 # Indicator Units 2018 2018 % Frequency Q3 Target Realized

1 Income % 30% na 2 Yield % 30% na Annual 3 Export Value % 30% na 4 Consulting # 20 16 80% 5 Hectares ha 5,000 3,191 64% 6 Investment $ 3,000,000 2,870,050 96% Adopting 7 # 5,000 4,182 84% Quarterly Best Practices 8 Improved Ed. # 4 5 125% 9 Organizations # 150 212 141% 10 Training hrs. 20,000 14,498 72% Table 3: Summary data by indicator and progress towards the 2018 target

Indicators 1, 2 and 3. Indicator data on income yield and export values are collected annually and will only become available at the end of the present horticultural production and marketing season.

Indicator 4. The number of private sector service providers participating in AVC implementation doubled this quarter reflecting those firms which joined the series of trainings provided by AVC. These service providers offer services throughout the country. This growth falls on the share of Production (4) and Post-Harvest (2) components.

Indicator 5. The hectares under improved technologies increased by 1114 hectares this quarter yielding a new cumulative total of 3191 hectares. Based upon AVC trainings, this figure increased in this quarter as the production season progressed and more of the new participants implemented early and mid-season improvements and organic farming close to one thousand hectares. As of June 30, AVC has achieved 64% of its indicator 5 target. As the coming quarter (July – September) is the peak of fruit production season, AVC expects that results against this indicator will increase significantly by September 30. This is especially likely in this year, as the Production and Marketing component leads are working closely with several large companies to incorporate new technologies on their large-scale production fields.

Indicator 6. The value of investments made by project partners has already reached 96% of its target before the end of the horticultural season. The vast majority of investments were reported this period from Production and Post-Harvest components with a few from Marketing.

Indicator 7. The number of partners adopting best practices represents re-engaged partners from the previous two projects who have elected to continue working with the AVC program. This number grew by 4,182 in this quarter as the trainees in the new districts began to adopt practices promoted by the project and thanks to provincial coordinators’ additional outreach efforts in current and new districts. Chat groups and broadcast channels on messaging apps have also served as strong factors to disseminate knowledge and skills among farmers.

Indicator 8. This quarter, AVC started working with two more agricultural universities around Uzbekistan. The project was working with three universities. One more was remaining to be included in AVC’s partners’

23 list. So, the target for this indicator was four. Thanks to opening of another branch of TSAU in Nukus and Termez, the project has been able establish partnership with all existing agrarian educational institutions.

Indicator 9. The number of organizations assisted is continuing to expand. The majority of the growth in this quarter reflects contributions by Component 1 (Production), Component 2 (Post-harvest) for new partner cold stores and packaging companies plus Component 3 (Marketing) for supermarkets, processors (dried and juice), and exporters.

Indicator 10. The cumulative person-hours of training significantly increased due to the series of practical trainings in the districts and provinces on ongoing agricultural activities and marketing demands. As with Indicator 5, progress toward Indicator 10 is expected to increase sharply in the coming quarter (July – September) during the peak fruit production season. Additionally, several trainings were held or are planned for July – September including the improved grape technologies training, grape PH micro NEP, grape variety contest, and several trainings for agricultural students.

AVC is on-target to reach or exceed it goals for the quarterly monitored data. The annual data awaits further progress in the end of horticultural season.

2. Website Development for Partners

Rashid Yusupov, the Deputy director of the Real Agro Forward LLC, a vertically integrated company operating in Tashkent and Samarkand provinces that provides assembly, processing, and export of raisins, grapes, and fresh fruits established 70 ha vineyard in 2017 with the assistance of AVC. 130 ha more vineyards are planned to be established during 2018- 2019. AVC also supported the partner with research of new markets, new market standards and requirements, and new post-harvest technologies to install and expand capacity and quality. AVC assisted Rashid Yusupov by developing a Business Card Website (http://realagro.asia ), including logo design and corporate theme, in order to boost his export numbers and to reach more markets around the world. The website includes information about the company, what services it provides, photo gallery and functionality to contact the company with text directly from his website.

Roma Salamatov, the Director of Red Pack, has been operating since 2014 in Tashkent region (office) and the Syrdarya region (facility). Roma mainly works with producing melon and exporting them to Germany and Eastern European. AVC has been close partners with Roma since 2017 and AVC assisted him to export his products to countries such as Norway, Russia and Belarus. AVC supported the company to develop a business website and corporate brand. Website development included information about his company, product gallery, logo design, corporate theme and easy to contact directly from the website (http://romas.asia).

3. Communications and Outreach

USAID’s Agricultural Value Chains (AVC) Project has reached outstanding results in facilitating communication between value-chain actors in agriculture. The project was recognized globally for its efforts in PR and innovation.

DIAL is a global team of technology In October of 2017 Digital Impact Alliance (DIAL) reached out to AVC to researchers, developers, investors, learn more about what the project had been doing in social media to negotiators, and policymakers. It is facilitate development. Groups and channels on social media and supported by world-class foundations messaging apps were of particular interest to the DIAL team. and development agencies and guided by a Board of leading emerging DIAL supported Echo Mobile's 6-month research into the use of messaging market entrepreneurs, technologists and development experts. applications for international development. Echo Mobile is a Nairobi-based firm that builds and deploys mobile-first communication, interaction, research and management information tools. AVC’s innovative approach in using social media and messaging apps was included in a case study. This case study is one of six produced by DIAL and Echo Mobile in May 2018, at which point 3.6 billion people were using mobile messaging applications—nearly half of humanity. DIAL commissioned Echo Mobile to research how and to what effect international development organizations have used these applications, with findings presented in three publications:

1. This case study and the others like it, which provide focused analyses of organizations that have deployed messaging apps for development; 2. a Project Catalog, which briefly summarizes fourteen development initiatives that have deployed messaging apps for development; and 3. an in-depth white paper, which synthesizes lessons from across the case studies and project catalogs. The paper outlines common use cases for messaging apps in development while identifying essential considerations for successful project design and for selecting messaging apps.

These publications are based on over 50 interviews with development practitioners, digital development experts, technology providers, and entrepreneurs. AVC’s IT and PR specialists were also interviewed online several times on how the project is helping farmers to get valuable and instant information from reliable sources.

The publications cover a diverse range of initiatives implemented by advocacy groups in Latin America and South Asia, social enterprises in Africa, private development firms in Central Asia, global multilaterals, and more. While the results of each case vary, they make clear that messaging apps have the potential to help development organizations inform, influence, support, and understand their audiences in new and powerful ways. More detailed information on research can be found here: Screenshot from website http://messengers.digitalimpactalliance.org/USAID.html

Additionally, AVC won a gold medal for its innovative approach to connect with actors of the value chain at the MacFrut Innovation Awards, held within the MAcFrut Fruit and Vegetable Show in May. MacFrut is a huge annual marketplace mainly for European F&V buyers and sellers. The MacFrut Innovation award was given to AVC staff for the project’s innovation in using social media in services and logistics. AVC team receives the main award of AVC continues to monitor the process the fruit show of knowledge sharing and to produce AVC staff at MacFrut Show content based on needs of the value chain actors.

E. ENVIRONMENTAL COMPLIANCE

1. Monitoring

AVC activities monitored by the project environmental officer during the 3rd Quarter of FY 2018 are listed below. All activities were judged to follow USAID and Uzbekistan environmental rules and regulations.

• Onsite consultation to cold storage facilities. Project staff provided technical assistance to three new cold storage facilities – “M Boymatov” farm enterprise (FE) located in Altiarik District of Fergana Province; a local entrepreneur from Altiarik District, Fergana province; and “Ashur Madaminjon FE located in Kuvasay District of Fergana Province – on design, foundation, capacity and type of refrigeration systems. Project staff visited 35 existing cold storage facilities during the third quarter to provide postharvest and cold chain information. A list of these facilities and their locations can be found in the table on pages 10-11. During site visits, project staff reiterated the proper disinfection of cold storage rooms, crates and all tools, and employees’ hygiene during handling of fresh produce. During site visits, only environmentally friendly practices were recommended. • Grape Value Chain training was organized in Samarkand, Navoiy and Bukhara provinces by local experienced vertically integrated entrepreneurs on May 1-4, 2018. Local consultants trained AVC’s partners on preparation of grape for prolonged storage. AVC’s Environmental Officer accompanied the consultants during the training program and site visits to talk about hygienically clean practices related to grape postharvest. Consultants visited the following sites to provide practical consultation: o Nomon Hasanov, “Omonov Dilmurod Bogi” FE in Hatirchi District of Navoiy Province. Grape field, apple orchard, and cold storage facility. o Shuhrat Sayfullaev, “Nusrat Bogi” FE in Qiziltepa District of Navoiy Province. Apple orchard, grape field, and cold storage facility. o Olim Dilmurodov, “Olim said Subhiddinbek” FE in Jondor District of Bukhara Province. Grape field, apple orchard, and cold store. o Utkir Ruziev, “Laziz Jura” FE in Jondor District of Bukhara Province. Apple, grape field and cold store o Tojiddin Komilov, “Komilov Shohiddin Bogi” FE, in Jondor District of Bukhara Province. o Sobirov Rahmat, “Sobirov Ergash Boglari” FE in Samarkand District of Samarkand Province. Grape field. o Alisher Karimov, “Tursunov Asrorhon Boglari” FE in Samarkand District of Samarkand Province. Grape field, greenhouse, cherry orchard and cold store. • Preparation of PERSUAP International Environmental Compliance Consultant, Alan Schroeder visited AVC to prepare the PERSUAP document on May 10-25, 2018. He visited various types of pesticide shops in Tashkent and in the provinces to learn how the pesticides are handled at the shop level. Also, he met with the agronomist of Syngenta and Plant Protection Institute’s entomologist to talk about the local practices associated with import, distribution and application. Moreover, he visited several orchards and vineyards to talk to farmers and spraying groups about local practices. The consultant was able to visit a bio-laboratory in Bukhara Province and lab personnel accompanied him to tour the labs activities. Now, the PERSUAP document is being prepared by the consultant and will be submitted in September of 2018. • Cold Chain Study Tour A group of 15 farmers, entrepreneurs and cold store owners from Tajikistan visited AVC’s partners’ sites in Fergana valley to see and learn the best postharvest and cold chain practices of fresh produce. The delegation visited 10 vertically and horizontally integrated entrepreneurs’ sites to learn the harvesting, sorting, grading, processing, transportation, storage and shipment processes. Detailed information about the event, location, participant names, and site visits are presented on page 9 above. • Grape green grafting training This program was conducted in the Bulakboshi District of Andijan Province on May 8-9, 2018. The survival rate of green grafting techniques on grape is almost 99% if properly done. Local experts were hired to do the practical demonstration for local farmers and grafting groups. Consultants spoke about the proper disinfection of grafting and pruning tools before the start of the work. The training was held at the following sites: o Habibulla Nazarov’s vineyard, “Dolanalik Bogbon Mevasi FE in Bulakbashi District of Andijan Province. 53 people attended the training o Abdusattor Hayritdinov’s orchard “Abdusattor Hayritdinov” FE in Izboskan District of Andijan province. 11 people attended the training. • Student Internship A practical training and a study tour were organized for the students of the horticultural department of Tashkent State Agrarian University and its Andijan branch. Students visited various fruit orchards, vineyards, pack houses, cold storages, processing companies and greenhouses to see and learn the best production, postharvest and marketing practices. During site visits and training programs, AVC staff spoke about the environmental compliance rules and

regulations, protection of flora and fauna, mitigation and safety measures, and use of protective gears and clothes during application of chemicals. Details of the events are as follows: o June 5-8, 2018: 17 students (6 female, 11 male) from the Andijan branch of TSAU visited the following sites to see and learn good agricultural practices: ▪ “Barkash Qurilish” LLC’s orchard. in Izboskan District of Andijan Province. ▪ “Bogishamol” AF’s orchard and vineyard in Hojabod District of Andijan Province ▪ “Dolanalik Bogbon Mevasi’ FE’s vineyard in Bulakbashi District of Andijan Province. o June 19-21, 2018: 55 students (27 female, 28 male) from TSAU visited the following sites to see and learn good agricultural and postharvest practices: ▪ “Gulbog Burhon” FE’s vineyard in Parkent District of Tashkent Province ▪ “Zarkent Universal” FE’s cold storage facility in Parkent District of Tashkent Province • Introduction of improved packaging AVC’s marketing team introduced improved packaging for cherry shipments. 850 cardboard boxes with special breathable polyethylene bags were distributed to 5 vertically integrated entrepreneurs. The main purpose of the new packaging was to add value and prolong the shelf life of the cherries. Recipients of the packaging include: o Sohibjon Holmatov, “Kimyo Yogich Savdo” LLC from Altiarik District of Fergana Province o Erkin Shorahimov, “Yumuqboy Erkin” FE from Altiarik District of Fergana Province o Abdugaffor Haknazarov, Private entrepreneur from Turakurgan District of Namangan Province o Alisher Karimov, “Tursunov Asrorhon Boglari” FE from Samarkand District of Samarkand Province o Inomjon Ashurov, “Zarkent Universal” FE from Parkent District of Tashkent Province

2. Mitigation

AVC promotes environmentally friendly agro-technologies and techniques to mitigate possible environmental and social adverse impacts of agricultural activities. The proper use of agrochemicals as a means for pest and disease control in orchards is always on the project agenda. The basis for the mitigation of potential negative environmental impacts of agrochemical use is the Pesticide Evaluation Report and Safe Use Action Plan (PERSUAP). International Environmental Compliance Consultant, Alan Schroeder visited AVC to prepare a revised PERSUAP document on May 10-25, 2018. The PERSUAP document will be submitted for review and approval in September 2018.

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