“Producer Group and Value Chain Development” UNIDO/UNDP Component Annual Report for the period 1.1. – 31.11.2015 Final Version 1 | P a g e Contents 1. Summary ................................................................................................................................. 4 Achievements of 2015 .................................................................................................................. 4 Financial report for 2015 .............................................................................................................. 6 Planning for 2016 ......................................................................................................................... 8 2. Introduction ............................................................................................................................. 9 3. Achievements since April 2015 ................................................................................................. 9 Set-up and overarching activities .................................................................................................. 9 Communication ......................................................................................................................... 10 Component 1: Strengthen newly established primary producer groups ....................................... 11 Select value chainsin the targeted marzes (Act. 1.1) ................................................................. 11 Select existing and potential new producer groups (Act. 2.1) ................................................... 11 Educate producers as to organizational development options (Act. 1.3) .................................. 15 Establish new producer groups (Act. 1.4) ................................................................................... 15 Develop capacities of producer groups (Act 1.5) ....................................................................... 15 Document lessons learned for appropriate legislation (Act 1.6) ................................................ 15 Promote participation of women, youth and vulnerable groups (Act 1.7) ................................ 15 Develop business models for establishment of producer groups (Act. 1.8) .............................. 16 Component 2: Producer groups effectively engaged in value addition ......................................... 16 Identify business-oriented producer groupsaiming to engage in value addition (2.1) .............. 16 Install appropriate technologies/equipment (2.2) ..................................................................... 16 Study existing and potential markets and support new product development (2.3) ................ 16 Improve producer groups’ capacities in storage and packaging (2.4) ........................................ 17 Help producer groups develop marketing capacities and link them to buyers (2.5) ................. 17 Build entrepreneurial and business planning capacities of value addition groups (2.6) ........... 17 Link producer groups to existing finance schemes (2.7) ............................................................ 17 Improve groups’ capacities to comply with food safety and quality standards (Act 2.8) .......... 18 Support use of cleaner production and energy saving technologies (Act 2.9) ........................... 18 Promote participation of women, youth and vulnerable groups (Act 2.10) .............................. 18 Component 3: Value chains strengthened and providing better quality food ............................... 18 Value chain analysis (Act. 3.1) .................................................................................................... 18 Develop Good Agricultural Practices and Disaster Risk Management Approaches (3.4) .......... 18 Improve access to better quality production inputs and related services (3.5) ......................... 19 Other Component 3 activities ..................................................................................................... 19 3. Results management .............................................................................................................. 19 4. Financial Reporting: spending since January 2015 ................................................................... 20 5. Outlook for 2016 .................................................................................................................... 23 2 | P a g e Annexes..................................................................................................................................... A1 Annex 1: List of team members .................................................................................................. A1 Annex 2: Producer Group Selection Report ................................................................................. A4 Annex 3: Value Chain Analysis: Milk and Dairy/Final Analytical Report………………………………….….A17 Annex 4: Value Chain Analysis: Fruits and Berries ................................................................... ..A89 Annex 5: Buckwheat and Legumes .......................................................................................... A198 Annex 6: Non-Traditional High-Value Vegetable/Value Chain Analysis .................................... A238 Annex 7: Value Chain Business Model: Buckwheat .................................................................. A272 Annex 8: Value Chain Business Model: Lentil (Lens culinaris) ................................................... A294 Annex 9: Business Model for Non-Traditional Vegetable Value Chain/ Broccoli...................... A3166 Annex 10: Buckwheat agronomist report ................................................................................ A332 Annex 11: Equipment needs and processing details for production of High value cheese in Armenia ............................................................................................................................. A350 Annex 12: Equipment needs and processing details for production of Buckwheat honey in Armenia ............................................................................................................................. A432 Annex 13: Equipment needs and processing details for production of Dried fruit in Armenia ............................................................................................................ A451 Annex 14: Monitoring and Evaluation Strategy ....................................................................... A471 Annex 15: Examples of results chains for dried fruits, dairy/cheese, non-traditional high- value vegetables and buckwheat ................................................................................... A506 3 | P a g e 1. Summary Achievements of 2015 The project activities planned for 2015 were completed successfully, with a strong foundation set for the further development of the selected producer groups. Of the 27 activities in the three project components combined, five were completed, six remain to be started, and 16 were partially implemented. All of the activities in the process of implementation support the continued development of the producer groups into cooperative enterprises. Table 1: Project Achievements during 2015 Activity Accomplishments Plans for 2016 Set-up - Opening ceremony held - Consolidation and further and overarching - Team recruited professionalization of team activities - Team expanded: field operation managers - Purchase of second vehicle FOM,driver & short term consultants; - 2016 stakeholders’ conference to be additional admin. assistant organized - Vehicle purchased - Office rented - Stakeholders’ conference held Communication - Strategy drafted& approved - Continued social media presence - Communication materials developed &used - Continued participation and support to - ENPARD ARM logo revised visibility events - Press release issued - Continued press releases - Social media presence - Continued photos and video developed - Participation and support to visibility - Success stories/case studies developed events and publicized - Visibility video produced - Photo documentationongoing Component 1 1.1: Select value - 3+ Value chains selected - Completed chains 1.2: Select - 55 producer groups selected - Completed producer groups 1.3: Cooperative - Cooperative development trainings - Completed development provided to shortlisted groups (done trainings through FAO component) 1.4: Register - Planned for 2016 starting in April - cooperatives 1.5: Train - Trainings on basic business skills - Continued customized trainings to be producer groups development to be completed by end of undertaken in 2016 on business skills year - Business plans for shortlisted groups to bedeveloped by end of year 1.6: Document - Planned for 2016 & 2017 - Documentation of lessons learned to be lessons learned continual through 2016 1.7: Support - Selected producer groups comply with - Gender mainstreaming strategy to be access of women, youth and women participation indicators developed and implemented in 2016 youth and vulnerable groups 1.8: Develop - Three business models developed - Final business models to be business models developedbased on successful cooperative operations 4 | P a g e Component 2 2.1: Select - 16 value adding groups selected - Completed producer groups 2.2: Install - Equipment to be identified and by end of - Cheese making, money making and appropriate year for most VCs vegetable packaging equipment to be technologies - Statement of award for buckwheat hulling