Project Year Three First Quarterly Report

Prepared for review by the United States Agency for International Development under USAID Contract No72011418C00001, The USAID Agriculture Program implemented by CNFA

Project Year Three First Quarterly Report

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The USAID Agriculture Program

Project Year Three First Quarterly Report October 1, 2020 – December 31, 2020

USAID Contract 72011418C00001 Implemented by CNFA

Submitted to: USAID/Caucasus Mr. David Tsiklauri, COR

Submitted on January 15, 2021

Resubmitted on February 10, 2021

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Table of Contents Acronyms................................................................................................................................................................................... 4 Executive Summary ................................................................................................................................................................... 6 Program Description .................................................................................................................................................................. 8 Detailed Activities ..................................................................................................................................................................... 8

1. Sector and VC Analysis Study Update ........................................................................................................................ 8 2. Organizational Capacity Building ............................................................................................................................... 8

2.1. Regulatory Framework for Associations ........................................................................................................... 8 2.2. Support to Sectoral Associations under Capacity Building Grant RFA #004 .................................................... 8 2.3. Additional Capacity Building Grant RFAs for Associations ............................................................................. 9 2.4. Support to Agricultural Cooperatives .............................................................................................................. 10

3. Access to New Varieties and Inputs .......................................................................................................................... 11 3.1. Variety Registration ......................................................................................................................................... 11 3.2. Legislative Framework for Input Supply ......................................................................................................... 11 3.3. Nursery Certification Study Tour .................................................................................................................... 11 3.4. Training Nurseries in Certification Requirements ........................................................................................... 11 3.5. Video Guides on Nursery Operations .............................................................................................................. 12 3.6. Study Tour for Nurseries ................................................................................................................................. 12 3.7. Nursery Project with the Embassy of the Netherlands ..................................................................................... 12 3.8. Best Practices for Propagation in Berry Nurseries ........................................................................................... 12 3.9. Information on Vegetable Seedling Regulations ............................................................................................. 13 3.10. In-Kind Grants for Service Providers for Niche Implements ........................................................................... 13

4. Production Technologies ........................................................................................................................................... 13 4.1. Short Certificate Course Development ............................................................................................................ 13 4.2. Consultancies in Production Best Practices ..................................................................................................... 14 4.3. Production Guides ........................................................................................................................................... 15 4.4. International Study Tours ................................................................................................................................ 16 4.5. Cooperation with the Imereti Agro Zone ......................................................................................................... 16 4.6. Domestic Study Tours ..................................................................................................................................... 16 4.7. Application of Digital Tools ............................................................................................................................ 17

5. Consolidation and Cold Storage ................................................................................................................................ 17 5.1. Consolidation Centers ...................................................................................................................................... 17 5.2. In-Kind Grants for Cold Storage and Consolidation ........................................................................................ 18 5.3. Cold Storage Management............................................................................................................................... 18 5.4. Supply Chain Localization............................................................................................................................... 18 5.5. Increased Visibility and Integration of VC Members through E-Platform ...................................................... 19

6. Processing Technologies ........................................................................................................................................... 19 6.1. Modern Processing Technologies for Fruits, Vegetables, and Berries ............................................................. 19 6.2. Almond and Walnut Processing Technologies ................................................................................................ 19 6.3. In-Kind Grants for Processing Technologies ................................................................................................... 19

7. Market Access ........................................................................................................................................................... 20 7.1. International Standards and Certifications ....................................................................................................... 20

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7.2. Export Facilitation ........................................................................................................................................... 21 7.3. Domestic Market Linkages .............................................................................................................................. 23

8. Access to Finance and Business Management .......................................................................................................... 25 8.1. Partnership with TBC Bank ............................................................................................................................. 26 8.2. Financial Management and Tax Reporting ...................................................................................................... 27

9. Public Information and Outreach .............................................................................................................................. 27 9.1. Educational Initiative ‘AgriTalk’ ..................................................................................................................... 27 9.2. Grant Solicitation Outreach Campaign ............................................................................................................ 28 9.3. Media Outreach ............................................................................................................................................... 28 9.4. Visits to Grant Projects .................................................................................................................................... 29 9.5. Discovering Georgian Agriculture and Gastronomy ....................................................................................... 30

10. Environmental Compliance and Management ........................................................................................................... 30 10.1. Pest Monitoring Initiative ................................................................................................................................ 30 10.2. OSHE and COVID-19 Training....................................................................................................................... 31 10.3. Best Waste Management Practices .................................................................................................................. 31

11. Inclusive Agricultural Value-Chain Development .................................................................................................... 31 11.1. AgriBuzz Corps Program ................................................................................................................................ 31 11.2. Internships ....................................................................................................................................................... 31 11.3. Research and Competition for Young Agricultural Professionals and Entrepreneurs...................................... 32 11.4. Strengthen Agri-Entrepreneurial Social Capital for Women and Young Adults ............................................. 32 11.5. Food Carving ................................................................................................................................................... 33

12. Investments in Innovation ......................................................................................................................................... 33 13. Monitoring and Evaluation ........................................................................................................................................ 34

Partnerships and Collaboration ................................................................................................................................................ 38 1. Host Country Coordination ....................................................................................................................................... 38 2. Donor Cooperation .................................................................................................................................................... 38 3. Universities ............................................................................................................................................................... 39 4. Private Sector Partnerships ........................................................................................................................................ 39

Project Management ................................................................................................................................................................ 40 1. Office & Staffing ....................................................................................................................................................... 40 2. STTA ......................................................................................................................................................................... 40 3. Subcontracting ........................................................................................................................................................... 41 4. Resiliency and Contingency Planning ....................................................................................................................... 41 5. Grant Management .................................................................................................................................................... 41 6. International Study Tours .......................................................................................................................................... 42

Key Constraints ....................................................................................................................................................................... 42 Annex 1: The Ongoing, Initiated, and Completed Technical Assistance Projects ................................................................... 42 Annex 2: Online Trainings....................................................................................................................................................... 42 Annex 3: Approved In-Kind, Capacity Building, and Innovation Grant Projects .................................................................... 42

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Acronyms AFD French Development Agency APS Annual Program Statement ATSU Akaki Tsereteli State University AUG Agriculture University of Georgia B2B Business to Business BMSB Brown Marmorated Stink Bug BRC British Retail Consortium BSP Business Service Provider BSU Batumi State University CNFA Cultivating New Frontiers in Agriculture COP Chief of Party COVID Novel Coronavirus CQI Chartered Quality Institute EDA Export Development Association ERP Enterprise Resource Planning EU European Union FAO Food and Agriculture Organization FSSC Foundation Food Safety System Certification GAP Good Agricultural Practices GEL Georgian Lari GAWB Georgian Association Women in Business GBDC The Georgian Business Development Center Caucasia GI Geographical Indication GIPA Georgian Institute of Public Affairs GoG Government of Georgia GRA Georgian Retailers Association GYAA Georgian Young Artists Association HACCP Hazard Analysis and Critical Control Point HORECA Hotel Restaurant Catering ICC Information-Consultation Center IDP Internally Displaced Persons IFS Information and Featured Standards INC International Nuts and Dried Fruit Council Int International IOCC International Orthodox Christian Charities IPM Integrated Pest Management IRCA International Register of Certificated Auditors ISO International Standards Organization JRC Journalism Resource Center M&E Monitoring & Evaluation MEPA Ministry of Environmental Protection and Agriculture MoESD Ministry of Economy and Sustainable Development MSME Micro, Small and Medium Enterprise NAO National Agricultural Olympiad NFA National Food Agency NOP National Organic Program OCAT Organizational Capacity Assessment Tool OSHE Occupational Safety, Health, and Environment PERSUAP Pesticide Evaluation Report and Safer Use Action Plan PMP Performance Monitoring Plan PY Project Year RDA Rural Development Agency RFA Request for Applications SEAF Small Enterprise Assistance Funds SEEDEV The South-East Europe Development Organization SRCA Scientific-Research Center of Agriculture STTA Short Term Technical Assistance TA Technical Assistance TOC Terms of Cooperation ToT Training of Trainers

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TSU Tbilisi State University UGT United Global Technology UK United Kingdom UNECE United Nations Economic Commission for Europe US United States USAID United States Agency for International Development USDA United States Department of Agriculture USG United States Government VC Value Chain VET Vocational Education and Training WFLO World Food Logistics Organization

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Executive Summary In Quarter One (Q1) of Project Year Three (PY3), the USAID Agriculture Program continued implementing grant projects and delivering demand-based technical assistance to its beneficiaries. The Program was able to temporarily resume working in the field after the summer, and visit beneficiaries, organize demonstration days, and conduct training sessions. However, the Program was forced to revert to remote working due to the worsened COVID-19 situation in the country. Given these circumstances and the need to maintain effective outreach with beneficiaries, the Program established collaboration with Radio Imedi, which launched live AgriTalk sessions with successful entrepreneurs and broadcast discussions between members, the private sector, and the Program's representatives on essential topics in agriculture. Further professionalizing AgriTalks will contribute to engaging more partners into the Program and effectively delivering important information to a significant number of beneficiaries.

Although the Program’s significant efforts focus on providing demand-driven services to target value chain (VC) players and strengthening private companies through grant and technical support, the USAID Agriculture Program launched multiple activities and expanded its sector-level performance in Q1. The Program has engaged with the National Food Agency (NFA) in developing a set of recommendations to elaborate regulations and rules in line with international best practices on safe storage, transportation, sale, and use of pesticides and agrochemicals. Two sectoral associations were awarded grants to foster positive changes in their relevant sectors through strengthening the delivery of necessary services and knowledge dissemination among VC players in these sectors. Throughout implementation, the Program expects to have more sector-level interventions by remaining faithful to its central agricultural enterprises.

Another highlight of Q1 is the partnership which has been established with the leading financial institution in Georgia, TBC Bank. The Program and TBC Bank will collaborate on delivering non-financial services to beneficiaries, which is a new practice for a banking institution and demonstrates the bank’s increased interest in lending to the agriculture sector. Within the framework of this initiative, the Program and TBC Bank organized a first online webinar, which focused on Almond and Walnut production prospects in Georgia and had 210 registrations and 78 active attendees. The USAID Agriculture Program believes that this collaboration will be expanded and deepened, and more producers will benefit from the webinars, domestic study tours and demonstration events planned to be jointly organized with TBC Bank.

Despite the unusual format of implementation, and major disruptions caused by the pandemic, the USAID Agriculture Program accomplished several significant milestones:

1. ToT course for culinary herbs growers and extension specialists. The USAID Agriculture Program’s subcontractor Farmentor completed a comprehensive Training of Trainers (ToT) course for 22 culinary herbs’ growers and extension specialists on modern production practices, new varieties, and non-traditional (for Georgia) species of herbs.

2. Training and consultancies for mandarin growers and consolidators. Approximately 120 mandarin growers and consolidators in the Adjara and Guria regions improved their knowledge and skills in mandarin harvesting and postharvest handling through distance and onsite training and consultancies delivered by the Program’s local and international consultants.

3. Nursery operations’ best practice trainings. A total of 19 nurseries operating in the Imereti, Samegrelo, Guria, and Kakheti regions increased their awareness of nursery operations' best practices, including record keeping and maintenance of Nursery Journals through online training sessions jointly organized by the Program and the Scientific Research Center of Agriculture (SRCA).

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4. Export promotion campaign for Georgian agriculture products. As a part of the export promotion campaign, and in close partnership with Enterprise Georgia, the Ministry of Economy and Sustainable Development (MoESD), Rural Development Agency (RDA), the National Wine Agency, and the Ministry of Environmental Protection and Agriculture (MEPA), the USAID Agriculture Program is implementing a branding program to better position Georgian agriculture products internationally. The first phase - developing a tagline and wordmark - was completed in the reporting period.

5. Upgrades to the e-service platform TradewithGeorgia. The USAID Agriculture Program, in cooperation with the USAID Economic Security Program, assisted Enterprise Georgia to facilitate government e-services for export promotion. The upgraded e-platform TradewithGeorgia now has a registration option necessary for participation in international events co-financed by Enterprise Georgia, a function to automatically select companies, and a co-funding calculation mechanism.

6. Four (4) in-kind grants awarded. During the reporting period, the USAID Agriculture Program received approval for an additional four in-kind grant projects with a total committed grant amount of $247,100, leveraging $456,200 cost share amount. To date, 47 in-kind and nine Capacity Building grants have been approved, with a total of $3,164,205 committed grant amount, leveraging $5,352,741 in private sector funds.

7. Two (2) capacity building grants awarded. Two new capacity building grants were awarded to Farmers Association Subtropiki and the Almond and Walnut Producers Association to foster inclusive and sustainable development of mandarin and nuts VCs.

8. Technical Assistance project for four associations. A technical assistance (TA) project was launched to assist four start-up associations, including the Georgian Cold Storage and Logistics Association, the Association of Dried Fruits Producers, the Association of Table Grape Growers, and the Georgian Nursery Association, to elaborate strategic development plans.

9. Online consultations for berry growers. A total of 25 berry growers, including members of the Berry Growers’ Association, attended online webinars and consultations in berry production best practices conducted by an international consultant.

10. Brand identity project for exporters. The USAID Agriculture Program helped two exporters develop a new brand identity and launched TA projects to support four agribusinesses to design logos, labels, and promo materials.

11. Development of e-commerce services. The USAID Agriculture Program supports the development of e-commerce services. Two companies, Agrolane Ltd (www.agrolane.ge) and Spacefarms Ltd (www.spacefarms.ge), were supported by the Program to establish websites with the ability to conduct online sales.

12. Continued introduction of food safety standards. Together with RDA, the USAID Agriculture Program continues to promote the introduction of international food safety standards. In the reporting period, the following certification consultancy projects were launched: five Hazard Analysis Critical Control Point (HACCP) and ISO 22000 certifications, three BRC certifications, and one GlobalGAP certification.

The USAID Agriculture Program is entering Q2 aiming to complete important multiagency activities and launch new initiatives with the hope that the COVID-19 pandemic situation will be regulated to

http://www.agrolane.ge/

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enable the Program to intensify its fieldwork and support the sector to be prepared for the upcoming growing season.

Program Description

The USAID Agriculture Program is a five-year activity that aims to accelerate the growth of agricultural subsectors that demonstrate strong potential to create jobs and increase incomes and revenues of micro, small, and medium enterprises (MSMEs). In particular, the Program supports the development of VCs by assisting and strengthening relevant enterprises and organizations in the targeted agricultural subsectors, which include berries (including kiwifruit), culinary herbs, stone fruits, perishable vegetables, pome fruits, table grapes, mandarins, and nut crops (pistachios, almonds and walnuts).

The USAID Agriculture Program is implemented through two integrated, mutually reinforcing components. Under Component One, the Program provides cost-share grants to MSMEs; cooperatives; service, information, and extension providers; and associations, while Component Two focuses on demand-driven TA, including technical and/or business trainings, and a wide spectrum of customized consultancies aimed at building the capacity of targeted value-chain actors.

Detailed Activities 1. Sector and VC Analysis Study Update In Project Year One (PY1), the USAID Agriculture Program’s sub-contractor, the South-East Europe Development Organization (SEEDEV) conducted a sector and VC analysis study, which guides Program activities and interventions. During PY3, the Program plans to conduct a mid-term update of this study to reassess data and reexamine its priorities and interventions. The study will again be led by SEEDEV. The overall approach and methodology will remain the same, to allow for consistency and comparison. The assessment will be launched late Q2.

2. Organizational Capacity Building 2.1. Regulatory Framework for Associations

The Food and Agriculture Organization (FAO) has engaged an international consultant to examine the existing regulatory framework on sectoral associations and advise on improvements to enhance sustainability. Per the Program’s communication with FAO, the consultant has completed the first phase of the consultation, providing a general overview of legal framework of associations in the European Union (EU), and started developing criteria for sectoral associations. This consultancy is being conducted in close coordination with MEPA and will be completed in Q2 and shared with interested parties. FAO may ask the USAID Agriculture Program to provide feedback prior to finalization of the document.

2.2. Support to Sectoral Associations under Capacity Building Grant RFA #004

The USAID Agriculture Program Life of Project Targets

$7.4 million in matching grants disbursed to 120 enterprises leveraging at least $9.04 million in matching contribution

3,680 new jobs created $70 million increase in sales by supported enterprises including $23 million in exports and $11.3 million

through new local markets New cash markets in a value of $10 million available to producers Consultancies and trainings provided to 170,000 individuals by supported enterprises

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In May 2020, the USAID Agriculture Program released a capacity building request for applications (RFA) #004 to support the berry, greens, mandarin, and nuts clusters VCs. The Program will assist relevant agricultural organizations in increasing their capacity to network with their members and upgrading their technical knowledge on pertinent topics ranging from the introduction of new varieties to the establishment of new production and marketing channels. The Program shortlisted four sectoral associations. Upon completion, the proposals will be submitted to USAID for approval.

One of the four shortlisted organizations is Farmers Association Subtropiki, which launched a grant project in early December 2020 to increase its organizational and operational capacity to provide more efficient and tailored services to its members. The framework of the project includes ToT events, organizational development trainings, strategic action planning, public outreach activities, and active partnerships with key stakeholders. A total of 30 people will participate in these trainings and the presented information will be shared with a broader audience of around 325 farmers and agribusinesses from the Ozurgeti, Khelvachauri, and Kobuleti municipalities.

The Almond and Walnut Producers Association is another association shortlisted by the USAID Agriculture Program under RFA #004. The grant project was approved by USAID in mid-December and is expected to begin operation in early January after the grant agreement is signed and the Association is trained on grant reporting procedures. Within the grant project, the Almond and Walnut Producers Association will strengthen its organizational and technical capacity, encourage its members to pay membership fees, and become more sustainable. In the scope of the project, the association will create a strategic development plan and a joint sales strategy for the local almond and walnut industry. These documents will be key to successful operations. The association plans to join the International Nuts and Dried Fruit Council (INC) and the US-based Blue Diamond Almonds. This will allow Georgian manufacturers to increase international visibility and enter new markets. As part of the project, the Almond and Walnut Producers’ Association will create a pool of six consultants, specializing in almond and walnut production, to offer technical guidance to its members. The association will facilitate onsite and online consultancies for around 200 almond and walnut growers and organize regional technical days, practical training sessions, and an annual national conference.

The USAID Agriculture Program shortlisted the Georgian Berry Growers Association, which aims to support the development of a competitive and export-oriented raspberry, blackberry, and strawberry industry by strengthening its institutional and technical capacity, offering market-demanded services to berry growers, providing training, networking, and business cooperation opportunities to its members, helping to improve the quality and increase sales, and disseminating industry-related information on new varieties, technologies, products, and other modern trends among berry growers. The Program assisted the Association to upgrade their proposal and will send it to USAID for review early January.

The Georgian Greens Producers Association is the fourth candidate shortlisted by the USAID Agriculture Program. The Association will strengthen its technical and organizational capacity to provide enhanced services and quality support to its members. Specifically, the association will assess the culinary herbs VC considering new challenges caused by COVID-19 and will develop an action plan for interventions. The Program assisted the Association to upgrade their proposal and will submit it to USAID for review and approval towards the end of January 2021.

2.3. Additional Capacity Building Grant RFAs for Associations

The USAID Agriculture Program launched a new TA project to support sectoral associations in strengthening their institutional and technical capacity. Four start-up associations are targeted for this consultancy: the Georgian Cold Storage and Logistics Association, the Association of Dried Fruits Producers, the Association of Table Grape Growers, and the Georgian Nursery Association. The business service provider (BSP) contracted for this activity plans to utilize a methodological approach of design thinking coupled with Organizational Capacity Assessment Tool (OCAT) to conduct basic

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organizational capacity assessments and to put together strategy development plans. In addition, the BSP will provide initial coaching to the associations to implement the recommended tasks and conduct follow-up assessments to reflect accomplishments against the strategic development plans after project completion. Successful implementation of the strategy plan will be crucial for the Program to consider further assistance for the associations in the form of a capacity building grant.

Capacity Building Grant RFA #005 was scheduled to be announced in November 2020 but was postponed due to COVID-19. It will be announced in Q2 of PY3.

2.4. Support to Agricultural Cooperatives

In the reporting period, the USAID Agriculture Program continued building technical and institutional capacity of grantee and non-grantee cooperatives.

• Dried fruits producers, Agricultural Cooperatives Ecohereti and Tianetis Nobati, were surveyed to identify their TA needs in production and market access. Based on survey findings, the Program’s international expert will provide tailored assistance to help these companies improve operations and marketing efforts. The consultant will develop individual action plans, the implementation of which will be monitored by the Program’s TA team.

• The Program’s grantee agricultural cooperatives which operate cold storages were advised on best practices of post-harvest handling and storage.

• Participation in remote training sessions delivered by the Program’s subcontractor, Farmentor, helped two agricultural cooperatives, Ozaani and Ertoba. These two organizations, which produce asparagus and lettuce, enhanced their knowledge and obtained new information on greenhouse production of culinary herbs.

• Food safety and brand identity development projects were initiated for RDA beneficiary Agricultural Cooperative Ikorta, which owns and operates a 21-hectare pome fruit orchard in Mejvriskhevi of the Gori municipality. The company stores its own produce, along with produce from about 10 local farmers, in a newly arranged cold storage facility. Ikorta plans to sell products within both domestic and export markets under its own brand.

• The RDA beneficiary Agricultural Cooperative Velvet Tea is supported to develop a new branding identity including a new corporate style, labels, and promo brochure. The cooperative operates a 21-hectare plantation and factory in Chiatura municipality. Since 2016, the cooperative has been engaged in the production of classical, herbal, and fruit teas. The cooperative views its teas as premium products and plans to focus more on export operations. It is essential for Velvet Tea to develop a new brand identity to create visibility for these products and increase the brand’s competitiveness on the local and export markets.

Besides the activities above, the Program’s relevant staff participated in two distance meetings organized by the Finance & Extension & Cooperative Development for Georgian Farmers (FinExCoop) Project, funded by French Development Agency (AFD) under the umbrella of European Neighbourhood Programme for Agriculture and Rural Development (ENPARD) III. These meetings aim to better understand what factors have constrained the emergence of a sustainable cooperative ecosystem in Georgia, what international approaches could be of interest for the country at this stage, and which could be supported at Government, donor, and field levels. Working group meetings will help FinExCoop create solid ground for organizing an international conference on cooperative development in Georgia, jointly with RDA, as soon as the COVID-19 related situation is alleviated.

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3. Access to New Varieties and Inputs 3.1. Variety Registration

In PY2, with the USAID Agriculture Program’s assistance, an Italian breeder registered the modern, certified strawberry variety, Malga, at the National Intellectual Property Center of Georgia (Sakpatenti) and signed a license agreement with a local nursery. Though the actual certificate will be issued during Q2, the latter is now allowed to propagate and distribute Malga strawberry plants in line with the intellectual property protection requirements. The Program puts a great emphasis on introducing improved varieties in Georgia. This is important not only for nursery development, but for all activities that produce crops and products. In PY3, the Program anticipates registering at least two new berry varieties at Sakpatenti.

3.2. Legislative Framework for Input Supply

Upon NFA’s request and with USAID’s approval, the USAID Agriculture Program contributes to the development of a set of recommendations for the elaboration of regulations and rules in line with the Pesticide Evaluation Report and Safer Use Action Plan (PERSUAP) and EU regulations on safe storage, transportation, sale, and use of pesticides and agrochemicals. For this purpose, the Program selected and contracted an Agriculture Health and Safety International Consultant to work closely with the NFA and the Program’s Environmental Manager. The consultant is a key member of the working group established at the NFA and leads and facilitates roundtable discussions within the group and the main stakeholders. The international expert will be assisted by local consultants that were also selected under this project. The working group held its first online meeting in December.

3.3. Nursery Certification Study Tour

The USAID Agriculture Program planned to organize a study tour to Serbia and Croatia for representatives of the SRCA and the NFA, both of which operate under MEPA. This activity had to be postponed due to the ongoing COVID-19 situation and was rescheduled to take place in June 2021. The proposed tour will be organized in cooperation with the Program’s subcontractor, SEEDEV. Participants will have an opportunity to make field visits alongside local field inspectors and virologists to experience necessary procedures for certification.

3.4. Training Nurseries in Certification Requirements

The USAID Agriculture Program’s Nursery Certification Expert is working with Program beneficiary nurseries, as well as three pre-selected nurseries, to help create a nursery layout which is necessary for voluntary certification. The expert is introducing the latest certification requirements to nursery agronomists and helping them correctly input information in nursery journals prepared by the USAID Agriculture Program. The expert will also assist beneficiaries in obtaining virus-free and disease-free planting material stock in order to establish mother plantations for rootstock or scions.

Two additional trainings were conducted jointly by the USAID Agriculture Program and the SRCA for nurseries in proper record keeping of nursery journals. Due to a recent increase in active daily COVID-19 cases in Georgia, these trainings were conducted online through Skype and a total of 19 nurseries from Imereti, Samegrelo, Guria, and Kakheti regions attended these virtual trainings. Nursery journals and various other tools and materials were delivered by regional coordinators to each participant nursery.

The USAID Agriculture Program also identified that one of the major gaps for agricultural sector development is a lack of quality-certified planting material. In order to develop the nursery sector and provide the best planting material for primary producers and entrepreneurs in Georgia, nurseries must function within a regulatory framework and a business environment which enables them to produce and distribute high-quality plants that are free from systemic diseases and pests. One of the most important

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topics under the certification system is pest prevention measures. It is necessary to identify the potential damage caused by pests and assess and manage possible risks. A successful phytosanitary risk management system cannot be achieved unless nursery representatives understand the functions, activities, and tasks involved in identifying these organisms and use valid risk assessment and management procedures. One of the first priorities for the nursery is to identify and define phytosanitary best management practices to serve as a tool for nursery agronomists and managers to minimize the influence of harmful organisms within the production area. These management practices are necessary to continually optimize the cleanliness of the planting materials and the facilities themselves. In line with above mentioned, the USAID Agriculture Program has identified a phytosanitary expert that will assist the Program’s beneficiary nurseries to correctly and promptly identify harmful organisms and include them in a phytosanitary journal, which the Program prepared for qualified nurseries in September. Once the paperwork for the identified consultant is finalized, individual and group consultations for beneficiary nurseries will be launched in February 2021.

3.5. Video Guides on Nursery Operations

The USAID Agriculture Program’s orchard management consultant has started preparing videos regarding management and agricultural best practices in nursery production. A total of five videos will be prepared under this contract and each video will be posted on the Program’s Facebook page. After each video, a planned discussion will take place over either Zoom or Skype to cover questions from participating nursery agronomists. This activity is part of a nursery certification initiative but will only cover nursery activities from an agronomical point of view. Two videos have already been prepared by the consultant. Each video contains relevant information about extracting plants from nurseries and the quality and classification of planting materials. A total of 2,514 views were generated through Facebook posts of these two videos.

3.6. Study Tour for Nurseries

In PY2, the USAID Agriculture Program collaborated with SRCA to implement a variety of necessary activities for local nurseries. These activities reached a large number of beneficiaries in the sector. A major challenge for nurseries is the lack of information about new varieties and new ways to produce quality planting for those that have an opportunity to meet nursery certification requirements. The USAID Agriculture Program, with support from SEEDEV, plans to organize a study tour for about 10 grantee and non-grantee nurseries to Serbia to visit nurseries and modern stone and pome fruit orchards to become familiar with proper nursery management practices. The tour is planned for late PY3 and will be organized as scheduled. (See Activity 3.3).

3.7. Nursery Project with the Embassy of the Netherlands

The USAID Agriculture Program has planned a joint project in cooperation with the Embassy of the Netherlands. This project will support 10 selected nurseries which are willing to engage in the certification scheme. Together with Cartlis Agrosystems, which is an implementing partner of this project, the following nurseries were selected for this activity: SP Zaza Kerelashvili, SP Iuri Kakhidze, SP Mikheil Batilashvili, New Garden Ltd, Complex Agro Ltd, SP Davit Kakashvili, Agricultural Cooperative GEA, Agricultural Cooperative Fruit Growers Association, SP Edvard Sabashvili, and SP Oleg Bukia. The first phase of this project is planned to take place during Spring 2021 in Georgia. Depending on the COVID-19 pandemic situation, these trainings may be held online.

3.8. Best Practices for Propagation in Berry Nurseries

In December 2020, the USAID Agriculture Program’s international consultant delivered online training to nursery representatives in raspberry/blackberry propagation best practices (see Activity 4.2). If COVID-19 restrictions are lifted in time, the consultant plans to travel to Georgia to visit local nurseries in Spring 2021.

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3.9. Information on Vegetable Seedling Regulations

A broad lack of technical knowledge, lack of regulations, and poor access to quality seeds and new varieties hinders the development of vegetable seedling production in Georgia. In PY2, the USAID Agriculture Program cooperated with four vegetable seedling producers to increase awareness of modern seedling production practices and facilitate connections with quality seed suppliers. To organize more specific and relevant TA, and to extend it to the broader circle of seedling producers, the Program planned to cooperate with SRCA to determine further technical deficiencies and gaps in existing seedling production standards and requirements to create the foundation for vegetable seedling certification. In Q1, a meeting was planned with seedling producers to better understand current production practices. However, the meeting was postponed to Q2 due to COVID-19 restrictions. In addition, the Program will hold working meetings in Q2 with relevant technical staff from SRCA to communicate existing regulations to a wider audience of vegetable seedling producers and effectively channel Program resources towards accelerating the vegetable seedling certification process.

3.10. In-Kind Grants for Service Providers for Niche Implements

RFA #008 for Acquisition and Utilization of Niche Implements will be released in late PY3. Through this RFA, the Program will give a variety of service providers an opportunity to acquire niche implements, such as mulchers, shakers, small-scale harvesters, bed-makers, and de-huskers, to offer a new range of services to growers of the Program’s targeted VC crops.

4. Production Technologies 4.1. Short Certificate Course Development

Berry Production: In the reporting period, the USAID Agriculture Program arranged a remote working session with representatives from the Agriculture University of Georgia (AUG) to finish refining learning materials prepared by University experts. These materials were developed based on relevant components of the berry production course curriculum provided by a professor from the Department of Horticulture at Michigan State University. Components included technical aspects of berry growing, harvesting, and post-harvest handling practices. Detailed discussion led to a consensus on specific areas of improvement and the overall approach to the materials and sources gathered by the Program through cooperation with European berry production experts. In December, the Program’s subcontractor submitted the finalized course curriculum that will be used by six already-trained University experts to further train about 40 berry growers and state extension agents within the framework of the existing subcontract. It is anticipated that beginning in April 2021, once the certification course is established, the University will roll out an awareness campaign to attract more interested growers to the certification program. In December, a call was announced to identify proper applicants for two training sessions, which will be held in Tbilisi and Ozurgeti. Extension agents, berry growers, and students of agricultural specialties are targeted to be included in these training sessions.

Culinary Herbs and Vegetable Production: In PY2, the Program’s subcontractor, Georgian Institute of Public Affairs (GIPA), began to develop and institutionalize a certificate program in greenhouse production of culinary herbs and conventional and specialty vegetables. GIPA partners with World Link (a US-based non-profit organization), which in turn works with agricultural experts from Woodland Community College and the University of California to ensure that the course curriculum incorporates higher-level expertise, modern approaches, and innovative practices. COVID-19 related restrictions caused significant delays in the development of appropriate course materials, so a significant part of the assignment has been postponed and rescheduled for later in PY3. By the end of December, the team of US-based experts submitted a course curriculum to GIPA for further refinement, translation, and adaptation into a narrative more suited to the culinary herbs VC in Georgia. The materials were developed based on curriculum from the University of Oklahoma, which was considered to be the most well-suited to the project’s specific purpose. Further trainings will be delivered to a targeted audience

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of about 30 representatives from various universities, Vocational Education and Training (VETs) Centers offering agricultural programs, and Information-Consultation Center (ICCs) of MEPA. World Link continues to work on a series of short video tutorials to showcase commonly-used American open-field and greenhouse vegetable production practices. However, the working process has been delayed due to COVID-19 restrictions. The video tutorials are scheduled to be ready for use by April 2021.

4.2. Consultancies in Production Best Practices

Berry VC: In December 2020, the USAID Agriculture Program engaged its international consultant to train a selected group of berry VC stakeholders in raspberry/blackberry propagation best practices. Due to COVID-19, the training was conducted online and was attended by a total of 25 beneficiaries, including the Program’s grantee and non-grantee berry growers and nurseries, as well as representatives of the Berry Growers Association.

Nuts VC: The Program is developing an RFP to invite international experts to train local almond and walnut producers in best growing practices. The selection process is ongoing and an organization will be selected in Q2.

Culinary Herbs VC: In the reporting period, consultancies provided to culinary herbs VC producers were focused on growing, harvesting, and post-harvest handling technologies. The Program’s subcontractor, Farmentor, continued to play a key role in production assistance through a series of remote group trainings and individual consultancies focused on major technical aspects of both greenhouse and open field production of culinary herbs. Topics highlighted by these remote sessions included farm planning, soil fertility and plant nutrition, best practices for harvesting, transportation and storage, and greenhouse production practices. In total, Farmentor delivered 12 remote training sessions attended by 12 farmers, six public extension agents, and four FSC agronomists from the Imereti, Samegrelo-Zemo Svaneti, and Adjara regions. In addition to group sessions, Farmentor delivered individual consultancy sessions to four selected greenhouse operators: Agricultural Cooperative Ertoba, SP Mamuka Toloraia, SP Nadim Meladze, and SP Giorgi Barbakadze. Individual consultancy sessions focused on establishing model herb farms and greenhouses to be further supported by the Program’s technical staff and Farmentor’s experts through monitoring and on-site consultancies.

The Program plans to extend its cooperation with Farmentor in 2021, and will focus more on postharvest handling and processing, and providing training and TA to postharvest operators such as consolidation centers and packing houses. However, the main goal of this cooperation is to promote new varieties and non-traditional species of culinary herbs for both greenhouse and open-field production. The Program will take efforts to promote the development of model farms as an effective mechanism for disseminating knowledge and replicating new practices and technologies to achieve higher yields and improved crop quality.

In the reporting period, the Program’s local consultants continued to provide TA to culinary herbs growers, consolidators, and post-harvest handling operators within the Samegrelo-Zemo Svaneti, Imereti, and Adjara regions. Approximately 100 farmers received information about new varieties and non-traditional species from trained public extension agents and Farm Service Center (FSC) agronomists. About 15 farmers and agriculture cooperatives were advised on variety selection, pest management, and greenhouse production practices. A total of 10 consolidators were provided with recommendations on best practices for packing and storage of culinary herbs and lettuces. Other changes made by recipients of this assistance include changing irrigation practices, plant protection, and nutrition schemes. Among these beneficiaries are: Agricultural Cooperative Ertoba, Agricultural Cooperative Kvitiri, SP Vitali Kilasonia, SP Zaur Ninua, and Laurus Ltd. Local consultants monitored farming practices applied by the broader circles of farmers in order to measure replication of new practices recommended by Farmentor’s experts.

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Mandarin VC: In the reporting period, the Program’s local and international consultants continued to help Georgian mandarin growers and consolidators prepare for the harvesting season. Local consultants provided individual consultancies on harvesting and post-harvest handling practices to 100 mandarin growers and 19 consolidators. In addition to tailor-made recommendations, mandarin VC participants were provided with a plain language guide on harvesting and post-harvest handling practices for mandarin crops (Activity 4.3). The Program’s grant recipient Farmers Association Subtropiki closely collaborated with the Program’s consultants by engaging their specialists and coordinating with mandarin growers.

The USAID Agriculture Program’s international consultant delivered a webinar to a group of nine lead farmers to enhance their knowledge and skills required for harvesting and post-harvest handling operations. The webinar was followed by individual, remote working sessions that enabled farmers to connect with the consultant directly from their farms and discuss specific problems regarding pests and diseases. These sessions were facilitated by a local consultant and helped Program beneficiary farmers identify immediate solutions and consider recommendations for the ongoing harvesting season. In early 2021, the international consultant will continue to host a remote ToT course focusing on orchard management, plant formation, and pest management. The course will be essential for farmers engaged in the Government of Georgia (GoG) orchard rehabilitation program.

Due to the climatic conditions this year, the active harvesting phase started in late November. As of December 31, around 31,463 tons of mandarins have been exported. Armenia, Ukraine, and Russia hold 90% share of the total export. Among consolidator companies are several USAID Agriculture Program beneficiaries, including Georgian Fruits Ltd, Agroexport Ltd, Agro+ Ltd, Georgian Mandarin Ltd, and Logistics Group Ltd, which received tailored advice and recommendations on best practices in grading, calibrating, and packing mandarins.

Perishable Vegetables: In the reporting period, the USAID Agriculture Program’s local consultant delivered two field-based trainings and about 10 tailored consultancies for farmers engaged in open-field and greenhouse production of perishable vegetables. Focusing on non-traditional vegetable crops, new species, and varieties, these consultancies covered regions in western Georgia, where the share of greenhouse production is higher compared to other areas. In the reporting period, the following vegetable growers benefited from the Program’s continued TA: GGM Ltd, SP Malkhaz Davitadze, SP Otar Bolkvadze, SP Narguli Putkaradze, SP Ramaz Tsulukidze, SP Lika Tavartkiladze, SP Nino Tsitsishvili, SP Paata Abzhandadze, Gejeti Ltd, SP Kvicha Tvalavadze, and Agricultural Cooperative Ozaani. About 2000 Facebook users viewed live videos delivered by the local consultant through the Program’s Agritalk platform, which highlighted diverse technical aspects of vegetable production.

4.3. Production Guides

Raspberries and blackberries: The USAID Agriculture Program hired two international consultants to develop production guides for raspberry and blackberry growers. One consultant created leaflets, which showcase plant development cycles and stages and provide information about common pests and recommended plant protection products. The second consultant developed an organic raspberry and blackberry production guide, covering a range of topics including production technologies, suitable locations, raspberry and blackberry varieties, pruning techniques, plant nutrition, pest and disease management, and harvesting. The production guides are currently in the final stages of design. Once the materials are finalized, the Program will disseminate them among the berry VC stakeholders.

Mandarins: The USAID Agriculture Program’s TA team, in close cooperation with extension specialists from the Ministry of Agriculture of Adjara, developed a plain language guide on best practices of harvesting and post-harvest handling of mandarins. The Farmers Association Subtropiki, along with the Ministry’s local departments, were engaged in disseminating the guides among a broader audience of mandarin growers, consolidators, and post-harvest handling operators within Adjara. The

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Program’s local consultants personally delivered the guides to farmer’s groups and relevant entities to provide additional onsite assistance and coaching.

Culinary Herbs: The Program’s subcontractor Farmentor will provide experts who will develop short one- to two-page guides for specific culinary herbs, covering areas such as greenhouse production and postharvest handling. This will be done once the experts are able to visit Georgia, see the farms first-hand, gain a more accurate understanding of the country’s farming specifics, and determine TA needs of farmers and consolidators. As a follow-up activity to strengthen the knowledge transferred through remote trainings to Georgian growers, the Program expects that Farmentor’s experts will be able to visit sites once COVID-19 related travel restrictions are relaxed and internal movement becomes more viable.

4.4. International Study Tours

Over the course of PY3, the USAID Agriculture Program plans to organize five study tours in production technologies focused primarily on the following VCs:

Berries: A study tour for Georgian growers, cold storage operators, and state extension specialists to Italy, Spain, or Portugal to visit modern nurseries, orchards and cold storages. These three countries were selected because they are most compatible with the Georgian climate.

Kiwifruit: A study tour for Georgian growers, cold storage operators, state extension specialists, and sectoral association to Italy, which is known for producing high-quality kiwifruit, to visit modern nurseries, orchards, and cold storages.

Culinary Herbs and Perishable Vegetables: A study tour to Israel for approximately 10 culinary herbs and perishable vegetable growers to observe successful operation of model greenhouses, get familiar with specific practices and methodologies applied by Israeli farmers and extension specialists, learn more about farmers networking principles, and exchange experience with relevant stakeholders.

Stone and Pome Fruits: A study tour in Serbia during the summer pruning season to give growers and agronomists hands-on experience in best practices that can be replicated in their orchards.

Table Grapes: A study tour for Georgian growers, cold storage operators, state extension specialists, and sectoral association to Italy, which is known for its high-quality table grape production. Georgian growers will have an opportunity to familiarize themselves with modern varieties and best growing practices of table grapes, nurseries, and orchards.

These tours are being planned for later in PY3. The Program hopes that travel restrictions caused by the COVID-19 pandemic will be lifted and the tours will be organized as planned. However, certain tours may be prioritized in the event that it is still not possible to carry out all five. In this case, prioritization would occur based on season and available locations.

4.5. Cooperation with the Imereti Agro Zone

The USAID Agriculture Program began negotiations with the Imereti Agro Zone, which is interested in establishing a training center, a logistics hub, and several types of greenhouses in Western Georgia. The scope of negotiations with the Program includes join training activities in VCs of mutual interest. Currently, the parties are preparing Terms of Cooperation and discussing specific training courses to cover areas such as vegetable growing best practices and greenhouse technologies.

4.6. Domestic Study Tours

The USAID Agriculture Program planned a local study tour to a kiwifruit producer established with virus-free, certified varieties. The study tour was planned to take place in October 2020 but was postponed because of the ongoing COVID-19 pandemic. The kiwifruit study tour, as well as similar

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tours for raspberry, blackberry, blueberry, table grape, stone fruit, pome fruit, culinary herb, perishable vegetable, almond, and walnut growers, is now planned to take place throughout 2021.

4.7. Application of Digital Tools

To support sustainable development of production in selected VCs, and to increase productivity of the agriculture sector in Georgia, the USAID Agriculture Program continues to promote the introduction and use of digital farming tools. Digital farming tracks operations and provides quantitative data which can be further analyzed to improve efficiency. The USAID Agriculture Program developed the Mobile Harvest application in cooperation with UGT. Since development, three primary producers have begun using Mobile Harvest to its full extent, while others are being consulted and further introduced to the advantages and key features of the application. The application was positively evaluated by these three producers, and their suggested improvements were incorporated in the latest version of the software. Further implementation of the Mobile Harvest application will coincide with the beginning of the next berry harvest season and feedback from the growers will be envisioned by UGT to refine the application.

5. Consolidation and Cold Storage 5.1. Consolidation Centers

The USAID Agriculture Program has developed an approach to strengthen consolidation centers and cold storage operators through both broad and targeted activities looking at the financial, operational, technical, and managerial constraints to their development. The Program discussed the issue with TBC Bank, which expressed their readiness to offer tailored financial products to meet the high working capital requirements of the consolidation function.

The USAID Agriculture Program started piloting its new approach with Fruit Logistics Ltd. Fruit Logistics Ltd is the successor company of Georgian Products Ltd. The Program had already supported Georgian Products Ltd by networking with Carrefour and other retailers. Fruit Logistics Ltd and its new management has continued supplying fruit and vegetables to Carrefour and has added logistic services. The company actively started introducing a new supply chain model with involvement from the Program’s Supply Chain Manager.

Fruit Logistics Ltd. started preparations to introduce an Enterprise Resource Planning (ERP) system to simplify and automate some functions and improve the company’s overall performance. An ERP system will also ease the introduction of a traceability system. As a result of the analysis of different types of ERP systems, the company has decided to introduce Microsoft Dynamics 365 BC (NAV).

Fruit Logistics Ltd started working on improving its business processes and organizational structure by optimizing performance schemes based on location and infrastructure. These performance schemes are some combination of storage services, commodity purchases from farmers for further sale, and services offered for exporters and distributers.

The USAID Agriculture Program supported Fruit Logistics Ltd to introduce the marketing standards which facilitate partnerships with retailers, define minimum requirements, and ease contractual relationships. Considering these standards, the company started packing fruit and vegetables in small packages ranging between 0.5-kg and 1-kg. There are currently 24 different varieties of packaged single and mixed products.

This updated approach enabled the company to enter its products in the Nikora market chain and Fruit Logistics Ltd. increased the number of stores it supplies in Tbilisi from 20 individual locations to 60. The company recently started supplying the supermarket chain "AgroHub" with packaged and unpackaged products. The average daily supply to all of Fruit Logistics Ltd’s supplied stores is 10 tons.

The Program will continue assistance to the Fruit Logistics Ltd to increase its production capacity so more farmers can be linked to the packing facility and included in more sustainable supply chain.

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5.2. In-Kind Grants for Cold Storage and Consolidation

The USAID Agriculture Program plans to release RFA #007 for Cold Storage and Consolidation in Q3. Through this RFA, the Program will award in-kind grants to postharvest handling, pre-cooling, cold storage, or consolidation enterprises, thereby increasing capacity along the supply chain, preserving the quality of fresh produce and extending shelf life. Though no activities were scheduled to take place in Q1, solicitation will be opened in Q2 as planned previously.

5.3. Cold Storage Management

Considering the low overall utilization of physical infrastructure, as well as noticeable deficiencies in the technical skills of cold storage operators, the Program developed a series of training modules to improve management practices for cold storage operators and help extend their period of operation and diversify their products. The planned modules will also cover the proper use of equipment and proper application of suitable regimens for different crops. The Program developed a total of 10 modules and accompanying materials for training sessions on the complete cold chain cycle and cold storage management.

The webinars will cover the following themes and will include video presentations, knowledge materials and post training tests:

1. Introduction to Cold Storage Management1 2. Storage and Temperature Management 3. Temperature Monitoring and Documentation 4. Food Safety Standards and Procedures in Cold Storage (HACCP) 5. Protocols for Managing the Export/Import of Perishable Products 6. Electricity Management 7. Innovations and Best Practices in Cold Storage Technologies 8. Best Practices in Business Models in Fruit and Vegetable Supply Chain 9. Planning Cold Storage Facilities Based on Location and Function, Common Mistakes 10. Comparison of Controlled Atmosphere and Controlled Temperature Technologies in Cold Storage,

as well as the Benefits of Each

Each module includes a video presentation, a one-week period to prepare questions, and an opportunity to discuss subsequent questions with relevant experts in a live session.

In the reporting period, the first webinar has been recorded and distributed to each of the 32 Cold Store representatives. The Program is currently working on translating and adapting the second, third, and fourth modules.

There is a similarly comprehensive course that was prepared for cold storage operators in Central Asia by the WFLO. The USAID Agriculture Program’s Supply Chain Manager facilitated the involvement of Georgian participants in the Central Asian sessions. While covering the training topics, the Supply Chain Manager identified several parts of the Central Asian modules which can be integrated into the Georgian modules. Training session will be resumed early January 2021.

5.4. Supply Chain Localization

In the reporting period, the Program conducted close communication with Wendy’s Georgia, and hopes to reach an agreement on a mutually-beneficial collaboration in the upcoming quarter. The Program aims to invest in efforts to increase the supply of Georgian-grown produce in Wendy’s restaurants, which will ensure the inclusion of more local growers into profitable and sustainable supply chains.

1 https://www.youtube.com/watch?v=5sX66_VZ5yI&feature=youtu.be

https://www.youtube.com/watch?v=5sX66_VZ5yI&feature=youtu.be&fbclid=IwAR1CtAcma0qgI2Lzrow8QwQIEgMkmk24OAbH1_GY1jiNuvCFsfqWMHpVRS0

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5.5. Increased Visibility and Integration of VC Members through E-Platform

The USAID Agriculture Program has plans to work in collaboration with RDA to develop a new e-platform for technical regional maps that can provide information on commercial farmers, cold storage operators and food processors regarding their location, contact information, products, production specifications, and other relevant data. The first stage of this planned development requires collecting and adding verified data about RDA’s beneficiaries to create an up-to-date catalogue of information. The Program will support RDA in the continuous maintenance of the catalog, but the initiative will be led by RDA. The planned e-platform will be made and operated together with RDA and possibly Enterprise Georgia. Further developments are planned for 2021.

6. Processing Technologies 6.1. Modern Processing Technologies for Fruits, Vegetables, and Berries

Supporting dried fruit producers is one of the priority directions for the USAID Agriculture Program to strengthen the pome and stone fruits VCs. In the reporting period, the Program’s international consultant developed a detailed questionnaire to survey a targeted group of producers, including the Program’s grantee and non-grantee beneficiaries. Based on information gathered from surveyed companies, the consultant will develop individual action plans, which will focus on marketing methods and instruments, to help companies access new sales channels within both domestic and international markets. The implementation of the consultant’s suggested actions and recommendations will be monitored by the Program’s TA team. The survey covered 11 grantee and 14 non-grantee beneficiaries that have been engaged in various types of TA provided by the Program. Eventually, the Program will engage an international consultant, one who is experienced in dried fruits production practices, to increase the capacity of local producers and help them pursue new technologies.

Besides the drying technologies, since the implementation of modern processing techniques is pivotal to the success and competitiveness of beneficiary companies operating on both local and international markets, the USAID Agriculture Program will support its beneficiaries in introducing processing technologies that are in line with the healthier diets preferred by modern consumers, including cold-pressed juices, sugar-free or low-sugar preserves and jellies, and frozen fruit, berries, and vegetables.

It is anticipated that this activity will include trainings and individual consultancies provided by international consultants with experience in the aforementioned technologies and facilitated by the Georgian Chamber of Commerce and Industry (GCCI) and its partner international chambers. This activity is scheduled to take place in March 2021. The Program has targeted approximately 20 grant recipients and beneficiaries for this consultancy, including RDA-supported companies.

6.2. Almond and Walnut Processing Technologies

The USAID Agriculture Program plans to hire an international expert to help almond and walnut processors adopt modern drying and postharvest handling technologies. The Program is targeting two walnut processing companies, Agroline Ltd and Pademi Ltd, and one almond processing company, Ge I Investment Corp Ltd, for this assistance. Agroline Ltd has already established its processing facility, while Pademi Ltd and Ge I Investment Corp Ltd. will set up their facilities by Spring of 2021. The Program has drafted the expert’s Scope of Work (SOW) and will proceed with the selection of an international consultant from the next quarter.

6.3. In-Kind Grants for Processing Technologies

Due to COVID-19, the USAID Agriculture Program postponed the release of RFA #006 to early Q2 of PY3. The Program will solicit applications from enterprises and cooperatives looking to introduce or improve processing technologies across the selected VCs.

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7. Market Access 7.1. International Standards and Certifications

International standards and certifications are awarded to growers, postharvest enterprises, and processing companies, and are an essential Access to Market activity. International standards and certifications are a critical prerequisite to entering most markets and a lack of quality standards and certifications can prevent market entry until necessary training, systems, facilities, and certifications are in place. The USAID Agriculture Program works with certifying bodies, enterprises, and the NFA to improve the introduction of quality standards and certifications.

7.1.1. Modern Food Safety Certification and Audit Services in Georgia

In PY1, the USAID Agriculture Program awarded a capacity building grant to ISO Consulting to obtain International Featured Standards (IFS) and British Retail Consortium (BRC) accreditations that will enable their consultants to offer consultancy and audit services to local and international enterprises. As a result of this grant project, ISO Consulting has already held IFS accreditation for a one-year period, and three consultants successfully passed the final examination and were awarded certificates of completion recognized by Chartered Quality Institute (CQI), the International Register of Certificated Auditors (IRCA), and Foundation FSSC 22000. The consultants are now authorized to perform third-party certification audits worldwide. An international consultant was scheduled to visit Georgia to offer BRC trainings to ISO Consulting within the period provided in the grant agreement, but this was delayed due to COVID-19. Instead, BRC training modules were delivered online in the reporting period. ISO Consulting will need to successfully pass the relevant tests upon completion of this training course to be awarded international accreditation for BRC GS Professionals.

Caucascert LLC is another capacity building grant recipient looking to receive accreditation from the United States Department of Agriculture (USDA). In PY2, Caucascert contracted an international consultant to assess quality control documents and identify gaps against National Organic Program (NOP) requirements for certifying agents. Caucascert’s accreditation application for review to the United States Department of Agriculture (USDA) was scheduled to be completed by March 31, 2020 but the deadline was extended by USDA due to COVID-related restrictions. The NOP reviewed the application to determine Caucascert’s compliance with the USDA organic regulations and sent the results of the assessment on December 10, 2020. Caucascert plans to address seven non-conformities identified in the report with the support of the international consultant contracted within the framework of this grant project. If the corrective actions are taken and approved, the accreditation application will move on to the next stage which is a pre-decisional, on-site assessment conducted by USDA auditors.

7.1.2. Introduction of Food Safety Standards in Primary Production and the Food Industry

In the reporting period, the USAID Agriculture Program continued to provide cost-shared support to producers, cold storage operators, and food processors in targeted VCs, helping them to comply with internationally recognized food safety standards that are a prerequisite for food processors to operate on the local market, according to the GoG’s Resolution 409, as well as to access new markets. Certification consultancies are being offered on a 50/50 cost-share basis with the beneficiary. Additionally, in the case of RDA’s beneficiaries, the cost-share ratio is 50/30/20 (USAID Agriculture Program/RDA/Beneficiary). Implementation of all projects due to be completed in Q1 were delayed due to COVID-19 related travel restrictions which caused postponements of the onsite final audits. In the reporting period, nine total food safety and GlobalGAP certification projects were launched. Details regarding certification projects can be found in Annex 1.

Table 1: Certification projects initiated in Q1 Certification Initiated

Food Safety (HACCP, ISO 2200, BRC) 8 GlobalGAP 1

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7.1.3. Training Program for In-House Food Safety Specialists of Food Processors

A request for proposals is currently being developed and is expected to be announced in early Q2 to identify a provider for conducting a training program for in-house food safety specialists of food processors. The most recommended approach for the training program is a combination of online and in-class training sessions. In order to deliver in-class, face-to-face sessions, the Program has postponed the training program until COVID-19 restrictions are relaxed and lifted. The Program plans to train at least 30 food processors in the comprehensive program to be conducted in several regions.

7.1.4. Support HORECA to introduce HACCP System into Operations

The GoG’s Resolution 409, regarding the local hotel, restaurant, and café (HORECA) industry, necessitates locally registered business retailers and food processors and producers to comply with HACCP requirements by no later than June 1, 2021. The USAID Agriculture Program is cooperating with the NFA to develop several Georgian-language HACCP manuals for the HORECA industry. Once the manuals are properly developed, a training program will be offered for small and medium HORECA businesses to receive support in meeting the upcoming GoG requirements. The Program intends to follow up with pilot consultancies to achieve HACCP certifications and serve as a model for future businesses. The training program and certification consultancies will be coordinated with the USAID Economic Security Program and may possibly include their beneficiaries. The initial stage of this activity will begin in Q2.

7.1.5. Training Program for Exporters in Internationally Recognized Grading Standards

In order to improve the technical knowledge of local exporters and help them meet international quality standards and specifications, the USAID Agriculture Program organized a series of targeted trainings for export-oriented growers, food processors, and cold storage operators. The trainings will focus primarily on priority commodities from targeted VCs, including fresh fruits, berries, vegetables, greens, nuts, and dried fruits as specified in (EC) No. 1234/2007 Specific Marketing Standards and United Nations Economic Commission for Europe (UNECE) Fruit and Vegetable Standards. These standards ensure a correctly labeled and marketable product. The Program will also develop simple, Georgian-language guides to share with agribusinesses and extension specialists. This activity is scheduled to begin in Q2.

7.2. Export Facilitation

7.2.1. Export Promotion Campaign

Branding Georgian Agribusinesses: In close partnership with Enterprise Georgia, the Ministry of Economy and Sustainable Development (MoESD), RDA, the National Wine Agency, and MEPA, the USAID Agriculture Program has been implementing a branding program for Georgian agricultural products designed to increase exports to international markets. This project is a part of an export promotion campaign to help key audiences better recognize and appreciate Georgia as a valued trading partner and to build awareness of the overall quality and integrity of Georgian agricultural products. Within the framework of this project, a tagline and logo have been developed to enable consistent identification, recognition, credibility, and memorability of Georgian agriproducts. This trademark will be used at international trade fairs, trade missions, and other events, and it will be printed and used in other media channels to promote Georgia’s agriculture sector. This

Branding Georgian agribusinesses

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project also includes developing a new tradeshow display, a design for promotional materials, and digital advertising concepts. The project will be completed by the end of February.

As a follow up to the branding activity, the USAID Agriculture Program, in cooperation with Enterprise Georgia, plans to implement a wide-scale export promotion campaign to increase the international visibility of Georgian agriculture and companies through social media, digital platforms, blogs, magazines, media tours to Georgia, and international competitions for Georgian agribusinesses (at the company level). Germany, the U.K., and Gulf and Baltic countries have been targeted for this campaign. The Program and Enterprise Georgia have been discussing a possible partnership with BBC to provide a branded content package that would include a broadcasted commercial about Georgian agriculture on BBC channels and other digital media and a geographical code waiver request may be submitted to USAID in Q2. Facilitating Government E-Services for Export Promotion: The USAID Agriculture Program, in cooperation with the USAID Economic Security Program, supported Enterprise Georgia to upgrade the e-platform TradewithGeorgia, which is an online catalog allowing Georgian entrepreneurs to share information about their companies and products. The e-platform has now added a registration option necessary for participation in international events sponsored by Enterprise Georgia, as well as a function to automatically select companies and a co-funding calculation mechanism. The new functions are making Government services more transparent, easier to access, and more flexible to use. Enterprise Georgia has already opened the first call for Georgian exporters to participate in Gulfood 2021, one of the world’s biggest annual food & beverage trade events, through the TradewithGeorgia platform. Georgian exporters willing to participate in the event, and qualifying for GoG’s support, need to register and complete the application form through the e-platform. The USAID Agriculture Program is assisting Enterprise Georgia to disseminate this information among the Program’s grant recipients and beneficiaries, including RDA-supported agribusinesses. Gulfood 2021 is currently scheduled to take place 21-25 February 2021.

7.2.2. Geographical Indications (GIs) for Georgian Products

Geographical Indications are an important tool in advancing commercial interests. They help monitor and keep track of emerging trade demands and standards. The Program plans to cooperate with Sakpatenti, the private sector, and sectoral associations to register new GIs with a focus on products from targeted VCs. This activity will further increase international visibility of Georgian products. The program also plans to work with the Bay Leaf Association of Georgia, which has expressed interest in registering a GI for Kolkhetian Bay Leaves. However, these activities have been postponed due to the COVID-19 pandemic.

7.2.3. Online Exhibition

Tuyap is a private exhibition organizer in Turkey that has served over 300,000 companies from 127 countries and hosted over 65 million visitors from 213 countries, organizing 1,779 domestic fairs, and 197 international fairs. However, both exhibitions which had planned to have USAID Agriculture Program beneficiaries participate, Food-Tech Eurasia and Eurasia Packaging, were delayed due to COVID-19 and rescheduled for later in 2021. At the events, a number of Program postharvest and processing beneficiaries will have an opportunity to identify potential new sources for processing machinery and equipment.

An online event, Agro Export Forum 2020, was organized jointly by MEPA, Enterprise Georgia, the Export Development Association (EDA), the USAID Agriculture Program, TBC Business and Leasing, and the Near-surface Geothermal Resources in the Territory of Alpine Space (GRETA) Project. Along with a discussion panel, remote Business to Business (B2B) meetings were facilitated. Five Program beneficiaries participated including Gemuani Ltd, Baia Food Ltd, ChiriFruit Ltd, Caucasus Organic Fruit, and Nugbari Ltd. Three large international buyers, L.E.V./Extracts, Tandemus, and UAB

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Handelshu expressed interest in further negotiating with the participating beneficiaries. Results will be reported in consequent quarterly reports.

7.2.4. Development of Brand Identity and Promotional Materials

In the reporting period, the Program continued supporting export-oriented agribusinesses to develop modernized brand visuals and promotional materials in order to improve the positioning and exposure of Georgian agribusinesses in international trade fairs. The Program has assisted several agribusinesses

to develop a unique brand identity and modern promotional materials such as brochures and labels.

The Program continued to support local companies in developing new branding identities to promote brand recognition in collaboration with the Program’s international consultant. The latter provides technical guidance to local BSPs and beneficiary companies to envisage best international practices. Most of these TA projects were co-funded by the Program, RDA, and a beneficiary company.

Completed branding projects:

Georgian Nectar Ltd is a juice producer that exports their products to the Gulf countries, USA, Australia, and the UK since 2007. The company received assistance in designing labels for their natural and wild harvested juices, a promotional brochure, and a website. They also developed a visual brand for dried fruits and additional promotional materials.

Geoflower Ltd is a beneficiary of both RDA and the Program, and is engaged in exporting organic medicinal herbs, wild berries, and fruits, mostly to Germany. The company plans to launch a new line of packaged premium teas including classical, fruit, and detox varieties. Geoflower Ltd received TA in developing a brand name, labels, and an informational website, which is currently being tested. The company’s new products are expected to be ready for export in early Spring 2021.

Ongoing branding projects: In the reporting period, the USAID Agriculture Program initiated three new branding projects which are scheduled to be complete during PY3 (See Annex 1). In total, there are 12 ongoing branding projects.

7.3. Domestic Market Linkages

7.3.1. GRA Partnership

In the PY2, the USAID Agriculture Program signed Terms of Cooperation (TOC) with the Georgian Retailers Association (GRA), which unites around 900 small stores across the country. GRA has its own budget, which can be used for promotional activities such as the introduction of a bonus system in stores and establishment of storage facilities. As part of the TOC, the Program and GRA will help Program beneficiaries to enter at least 25 stores.

All beneficiaries will have an opportunity to display their products for at least one month. This pilot initiative will be implemented for one year, during which the Program and GRA will support more than 25 enterprises to be linked with supermarkets in Tbilisi. The USAID Agriculture Program and the GRA developed branded displays to promote local production and to make them more visible to consumers in stores. These branded displays were placed in three stores during the reporting period. The initiative will continue to roll out and expand in Q2.

Georgian Nectar Ltd’s juices

Geoflower Ltd’s teas

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In addition, this TOC envisages a partnership with an e-commerce website, www.extra.ge, which is owned by the Bank of Georgia. The Program, along with GRA, facilitated the development of gift packages from local producers which includes items from the USAID Agriculture Program’s and the USAID ZRDA Activity’s beneficiaries.

Within the terms of this partnership, GRA initiated the development of a consumer behaviour survey, developed by consulting company Innova, which aims to show the influence of COVID-19 on consumers’ behavior. To promote the partnership activity, the USAID Agriculture Program and GRA developed an informational video.

Under the new AgriTalk platform, the USAID Agriculture Program’s Public-Private Partnership Manager participated in Radio Imedi’s Live Show, along with the Director of the GRA. This AgriTalk was posted on Facebook and had a reach of 27,884 people.

7.3.2. Linking Local Businesses with HORECA

When capacity building assistance is provided to select HORECA companies, producers within the USAID Agriculture Program’s targeted VCs will be linked with the above activity (See 7.1.4). The Program will facilitate linkages between producers and HORECA industry. Negotiations with the USAID Economic Security Program took place in Q1 and a solicitation document was developed. More specific activities in this direction are scheduled to take place in Q3.

7.3.3. Opportunities with Independent Retailers

The USAID Agriculture Program had intended to conduct negotiations with Mercado Ltd, which had planned to establish a Tbilisi Central Market in a historical district of Tbilisi, but due to the ongoing COVID-19 pandemic, these negotiations were postponed. The planned market would house over 40 small food shops and restaurants in a layout similar to Chelsea Market in New York City. The USAID Agriculture Program had planned to partner with Mercado Ltd. to assist the involved shops and restaurants in complying with necessary food safety and branding requirements to facilitate access to a high-end market. Negotiations will hopefully proceed later in PY3 as COVID-19 abates.

7.3.4. Promotional Festivals

Mandarin Forum: The USAID Agriculture Program and the Ministry of Agriculture of Adjara, along with Farmer’s Association Subtropiki, organized a Mandarin Festival on December 22. The event was originally planned as a multifunctional festival with demonstrations, tastings, and discussions. However, due to the COVID-19 pandemic, the organizers decided on a remote, online conference. The forum brought together all key players in the mandarin sector, including farmers, consolidators, processors, exporters, sectoral associations, the public sector, and academia to discuss existing challenges and opportunities in the mandarin industry. Topics highlighted by presenters included the current standing of the mandarin sector and sectoral development opportunities, challenges in diversifying export markets, the role of the sectoral Association, obstacles for farmers, post-harvest handling, and processing infrastructure. Presentations were followed by discussions that revealed the key issues, including the lack of knowledge on proper cultivation and postharvest handling practices, the need to introduce new varieties to extend the harvest season, dependence on the traditional markets, and the importance of exploring new markets to be addressed through the collaborative efforts of mandarin VC stakeholders. The Program distributed a forum summary to 18 registered panelists. Approximately 850 individuals attended and viewed the online event through the Program’s Facebook page.

Mandarin Forum Poster

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In addition, a Spice Festival and Berry Fair are planned to take place in PY3. These festivals will be held in 2021, with dates subject to COVID-19 restrictions.

7.3.5. Training Program in Sales Techniques

The USAID Agriculture Program plans to organize a training program in sales practices, methodologies, and product positioning in cooperation with the Georgian Distributers Business Association. The training program will help facilitate local market access for grant recipients and beneficiaries. The USAID Agriculture Program will target approximately 50 start-up MSMEs to help them improve their skills and comply with requirements of large retailers operating in Georgia. Due to the COVID-19 pandemic, this training program has been postponed until Q2.

7.3.6. Branding and Labeling for Local Market

Detailed activities regarding branding and labeling for local agribusinesses are described above (See Activity 7.2.4). All named businesses will position their products, using a new branding identity, on the local market.

Supporting Local Agribusinesses in Launching E-commerce: The USAID Agriculture Program supports local agribusinesses to launch websites with e-commerce functions in order to increase customer reach and lower costs. In the reporting period, the Program assisted these companies:

In cooperation with RDA, Agrolane Ltd was supported in launching a

website with e-commerce functionality: www.agrolane.ge. Agrolane Ltd is engaged in the consolidation of fresh fruits and berries grown on their orchards and by local farmers in a modern cold storage facility located in the Bagdati municipality. With the development of the website, it is possible for customers to buy fresh and frozen fruits and berries online which can be delivered directly.

Another company receiving support from the Program is Spacefarms Ltd. The company is Georgia's first commercially viable, indoor, vertical farming project and operates over 200-m2 facility inside the Tbilisi-based Stamba Hotel, with financial support from the Adjara Group. The company is developing a new website with an online-shop and new content which will be launched in early February.

8. Access to Finance and Business Management While most of the support discussed in the above activities focuses on the technical aspects of enterprise development, producers and processors also require business and management support, particularly regarding access to finance and internal financial and management systems. The USAID Agriculture Program is developing and testing several mechanisms to address these challenges. Access to Finance is a multi-faceted challenge in agricultural development, and the Program addresses this in a variety of ways best suited to the scope of the Program and the needs of its beneficiaries:

One-on-one support for access financing: The core access to finance activity of the USAID Agriculture Program is naturally embedded in Component One grant activities. Program experts help grant applicants to identify and pursue the most appropriate funding sources to leverage their grant funds and private matching investments. While in many cases the source is commercial loans, the Program also helps identify sources of equity financing, as appropriate. The USAID Agriculture Program supports client companies to improve their internal financial management and reporting systems to improve their attractiveness to lenders and investors and supports clients in their development of credit/investment applications and navigation of the lending/investment process. Among the continued consultation and support, the USAID Agriculture Program supported grant applicant Georgian Kalata Ltd to receive a loan from SEAF (Small Enterprise Assistance Funds). Because of the COVID-19 pandemic and a dramatic decrease in sales revenue, the company faced

Agrolane Ltd’s website

http://www.agrolane.ge/

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difficulty obtaining the loan from commercial banks. The Program facilitated negotiations with SEAF to fund construction and provide working capital for the company. Georgian Kalata Ltd produces a wide variety of Georgian foods and other products.

Identification and mitigation of specific access to finance gaps: The USAID Agriculture Program will seek to address clear and apparent VC gaps related to agricultural financing. For example, a lack of short-term financing mechanisms to cover high working capital requirements of cold storage operators is a critical constraint across multiple target VCs. The USAID Agriculture Program started working with TBC Bank (as described below) to develop a new, tailored financial instruments to meet this demand for working capital in an affordable and accessible way. Representatives from the Program and TBC Bank analyzed specifics and profiles of Program beneficiaries and their possible needs for working capital. TBC Bank expressed its readiness to consider each request individually and offer customized products.

8.1. Partnership with TBC Bank

In PY3, the USAID Agriculture Program began cooperating with one of Georgia’s leading financial institutions, TBC Bank. In November 2020, the parties signed a ToC. The ToC includes both tailor-made financial products and non-financial support to individual beneficiaries and the Program’s priority agricultural subsectors.

Cooperation with TBC Bank has been promoted through several media platforms. On November 16, TV Pirveli Show - Business Partner - hosted the USAID Agriculture Program’s Chief of Party (COP) and TBC Bank’s Expert in Agribusiness and Households to discuss their collaboration in the area of access to finance (see Activity 9.3). The representative from TBC Bank noted that the bank is ready to finance Program beneficiaries to help them fulfill their cost-share obligations as part of both grant and TA projects. Because the Program’s grants are used to purchase equipment and inventory, TBC Bank will help agribusinesses and cooperatives mobilize resources for other purposes such as working capital (e.g. raw materials), purchasing land, construction, etc. The collaboration between the Program and TBC Bank was also featured by Business Media Georgia2 and Entrepreneur Georgia3.

Within the cooperation, the USAID Agriculture Program and TBC Bank developed a joint package which offers interested applicants a loan for their cost-share contribution, as well as tailored financial product for short-term financing to be put toward working capital.

On December 15, Radio Imedi hosted the USAID Agriculture Program’s Grants Analyst and TBC Bank’s Expert in Agribusiness and Households to explain the collaboration and their joint efforts in the area of access to finance. In addition to discussing the details of the cooperation, the USAID Agriculture Program’s Grants Analyst explained the Program’s grant-giving mechanism, and the TBC Bank expert discussed the set of minimum requirements for interested applicants. The segment also addressed a lack of business management and record keeping capabilities in the agriculture sector.

2 https://bm.ge/ka/article/usaid-is-da-tibisis--agroseqtors-ertobliv-dafinansebas-stavazoben-/68834 3 https://www.entrepreneur.com/article/359734?fbclid=IwAR3zQfmob2u7aeCSnILqJySAFQ-Ko3nrDtzjciawqJ87f30wZ46GtQqPQTo

Cooperation with TBC Bank

https://bm.ge/ka/article/usaid-is-da-tibisis--agroseqtors-ertobliv-dafinansebas-stavazoben-/68834

https://www.entrepreneur.com/article/359734?fbclid=IwAR3zQfmob2u7aeCSnILqJySAFQ-Ko3nrDtzjciawqJ87f30wZ46GtQqPQTo


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The parties agreed to deliver online training sessions using TBC Bank’s platform, TBC for Business. The first training session was carried out on December 28, 2020, titled “Perspectives of Walnut and Almond production in Georgia.” The session was conducted by the USAID Agriculture Program’s Nut VC Specialist. In total, 210 interested individuals registered for the training session and 78 attended and participated.

8.2. Financial Management and Tax Reporting

In PY2, the USAID Agriculture Program contracted a local company to develop a plain language guide in the Georgian language for farmers and agribusinesses. The guide will provide a clear outline and explanation of the taxes they need to pay, the benefits they can enjoy, and any financial reports they are required to submit. The guide was planned to be completed in early October, and the Program aimed to organize training events for its grant recipients and beneficiaries, primarily micro- and small- enterprises (businesses included in the 3rd and 4th categories4) in financial management and reporting based on the developed guide. At least 20 SMEs are targeted for these trainings. However, due to the COVID-19 pandemic, the completion of the guides and the training events have been postponed until March 2021.

9. Public Information and Outreach 9.1. Educational Initiative ‘AgriTalk’

New AgriTalk Format: In PY2, the USAID Agriculture Program launched its weekly Facebook live show - AgriTalk - which quickly gained viewers’ recognition for its useful content and format. To better reach a broader audience and deliver messages to key stakeholders, the Program created an AgriTalk Facebook page5 and hired two well-known TV hosts to record and host episodes from different project sites. These episodes are dedicated to Program beneficiaries and new initiatives. To date, the Program has delivered four episodes under the new AgriTalk format (see table below).

Table 2: AgriTalk episodes No. Themes Format Hosts Facebook reach

1 Visit at Tiriphoni Gardens Ltd and SP Zurab Merebashvili’s cold storage facility

Live video The owner of the cold storage facility and the founder of Tiriphoni Gardens

147,130

2 Collaboration between the GRA and the USAID Agriculture Program Live video

The Chairman of the GRA and the USAID Agriculture Program’s Public-Private Partnership Manager

59,781

3 Visit at a fruit and vegetable processing enterprise - TMT Ltd Live video The owner of the Enterprise 97,307

4 Visit at a dried fruit production enterprise - Kareli Fruits Ltd Live video Production Manager of the

Enterprise 13,722

AgriTalk Trainings: The USAID Agriculture Program continues using its AgriTalk platform to deliver trainings on different technical areas to improve the existing practices of different VC players. In the reporting period, the Program’s local and international consultants delivered four AgriTalk episodes. Table 3: AgriTalk trainings

4 The Georgian Law on Accounting, Reporting and Auditing differentiate enterprises as 1st, 2nd and 3rd and 4th categories.

The 3rd category enterprise should meet at least two criteria out of the following three: a) The value of total assets does not exceed GEL 10 million; b) The revenue does not exceed GEL 20 million; c) The average number of employees during the reporting period does not exceed ten people.

The 4rd category enterprise should meet at least two criteria out of the following three: a) The value of total assets does not exceed GEL 1 million; b) The revenue does not exceed GEL 2 million; c) The average number of employees during the reporting period does not exceed 50 people. 5 https://www.facebook.com/აგრითოქი-AGRITALK-109334187625687

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No. Themes Format Hosts Facebook reach

1 Greenhouse preparation for the winter season Live video The USAID Agriculture

Program’s local consultant 6,550

2 Irrigation procedures and greenhouse preparation for the winter season

Live video The USAID Agriculture Program’s local consultant 4,541

3 Extraction and preparation of seedlings for the market Pre-recorded video

The USAID Agriculture Program’s international consultant

3,990

4 Quality of planting materials Pre-recorded video The USAID Agriculture Program’s international consultant

1,573

9.2. Grant Solicitation Outreach Campaign

Throughout PY3, the USAID Agriculture Program will organize and host outreach sessions after each grant solicitation release. Through these sessions, the Program will inform local agribusinesses and cooperatives about the new investment opportunities and provide clarifications regarding the application process. Outreach campaigns will cover different regions around Georgia and will attract beneficiaries from the targeted VCs.

9.3. Media Outreach

Partnership with TBC Bank: The USAID Agriculture Program has signed TOC with one of Georgia’s leading financial institutions - TBC Bank. The parties aim to support local agribusinesses by offering them tailor-made financial products and non-financial assistance. On November 16, TV Pirveli Show - Business Partner - hosted the USAID Agriculture Program’s Chief of Party and TBC Bank’s Expert in Agribusiness and Households to discuss this collaboration. The guests talked about the important aspects of their partnership and noted that the bank is ready to finance both grantee and non-grantee beneficiaries of the Program to help them fulfill their cost-share obligations. This is a significant partnership that will give local agribusinesses an opportunity to start or expand their businesses and increase revenues. The collaboration between the Program and TBC Bank was also featured by other media outlets, including Business Media Georgia6 and Entrepreneur Georgia7.

6 https://bm.ge/ka/article/usaid-is-da-tibisis--agroseqtors-ertobliv-dafinansebas-stavazoben-/68834 7https://www.entrepreneur.com/article/359734?fbclid=IwAR3zQfmob2u7aeCSnILqJySAFQ-Ko3nrDtzjciawqJ87f30wZ46GtQqPQTo

Participating in a TV show ‘Business Partner’

https://bm.ge/ka/article/usaid-is-da-tibisis--agroseqtors-ertobliv-dafinansebas-stavazoben-/68834



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Partnership with the Journalism Resource Center: Youth in Agriculture: In cooperation with the Journalism Resource Center (JRC), the USAID Agriculture Program developed a short video about a young professional who works as a Food Technologist at a Program-supported dried fruit production enterprise - Agrokseli Ltd - in the Keda municipality, Adjara region. The video aired in all regional TV stations and was also uploaded in various social media channels. The Program plans to develop similar videos to showcase USAID’s support and the opportunities it creates for youth to grow as a professional and achieve desired goals.

2020 Mandarin Harvest Season: On December 20, Agro Garemo TV conducted an interview with the USAID Agriculture Program’s TA Director in an episode of their show “Agro News.” The video covered the overall perspective of the mandarin sector in Georgia, including export potential, standards and certification requirements among producers, and the role of the Program in the development of the mandarin industry. The interview aired on regional TV stations and was uploaded on social media channels including YouTube.

9.4. Visits to Grant Projects

On October 2, the US Ambassador and the Minister of Environment Protection and Agriculture of Georgia attended the opening of a cold storage facility operated by the USAID Agriculture Program’s grant recipient - Agriculture Cooperative Agrostore. The facility is located in the Kvareli municipality, Kakheti region, and makes up a total of 300 m2. It will enable the cooperative to store its own produce (raspberries and persimmons) and offer pre-cooling and cold storage services to around 30 neighboring producers of berries, peaches, and persimmons. It should be noted that proper storage conditions are especially crucial for the easily perishable berry crops. Thus, the new facility will help farmers sustain the product quality and extend its shelf-life. Currently, Agricultural Cooperative Agrostore operates 3-ha raspberry orchard, which was established in 2019 with the support from the RDA’s Plant the Future project. In consultation with the USAID Agriculture Program, the cooperative produces modern, high-quality raspberry variety - Tulamagic - which is relatively new to Georgia. The opening event served as a great example of how USAID partners with local agribusinesses to drive the private sector-led economic growth in the regions of Georgia.

U.S. Ambassador to Georgia, visiting Agricultural Cooperative Agrostore

Interview with the Food Technologist of Agro Kseli Ltd

Interview with the Program’s Technical Assistance Director

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9.5. Discovering Georgian Agriculture and Gastronomy

In PY3, the USAID Agriculture Program started to collaborate with Radio Imedi to further expand its AgriTalk format and disseminate information on a range of topics, including agricultural production, innovations in agriculture, food safety issues, domestic and international markets, field demonstrations, trainings, and consultation services. Studio discussions are recorded live, once or twice per month. The show airs on Radio Imedi’s Facebook page8 and the newly created AgriTalk Facebook page. Each episode covers topics selected by the USAID Agriculture Program and focuses on the Program’s priority VCs and directions. This collaboration is making AgriTalk more professional and focused and is also helping the Program inform its stakeholders about the upcoming opportunities. To date, the Program and Radio Imedi have delivered three joint episodes (see table below).

Table 4: Joint AgriTalk episodes between Radio Imedi and the USAID Agriculture Program No. Themes Format Hosts Facebook reach

1 Collaboration between the GRA and the USAID Agriculture Program

Radio Imedi studio discussion

The USAID Agriculture Program’s Public-Private Partnership Manager and Chairman of the GRA

44,132

2

Discussing the new cold chain model and the USAID Agriculture Program’s distance learning course for cold store operators


The USAID Agriculture Program’s Supply Chain Manager and the Managing Partner of Fruit Logistics Ltd

18,653

3 Discussing collaboration between TBC Bank and the USAID Agriculture Program


The USAID Agriculture Program’s Grants Analyst and TBC Bank’s Expert in Agribusiness and Household

25,185

10. Environmental Compliance and Management PERSUAP: The USAID Agriculture Program undertakes a variety of environmental management activities to mitigate risks and avoid a negative economic impact, including the problem of invasive pests in Georgia. In Q3 of PY2, the Program translated the selected chapters of the revised and approved version of the PERSUAP and plans to distribute the materials among its grantee and non-grantee beneficiaries to help them ensure safe use, transportation, storage, and disposal of pesticides. These materials will also be used during the PERSUAP trainings that should have taken place in Q1 but, due to COVID-19 restrictions, are now planned for Q2 of PY3. The training sessions will be conducted by the USAID Agriculture Program’s Environmental Manager.

10.1. Pest Monitoring Initiative

In PY2, the USAID Agriculture Program, implemented the Pest Monitoring Project, in cooperation with the NFA and Trécé Inc. The project aimed to identify and monitor three invasive pests - Drosophila suzukii (fruit fly), Popillia japonica (beetle), and Tuta absoluta (moth) - using monitoring traps and pheromone lures provided by Trécé Inc. The project was implemented with involvement of local entomologists and students. In October 2020, the USAID Agriculture Program presented the project findings to representatives of NFA. Later, the entomologists developed a detailed report about the implementation of field research. The main findings and

8 https://www.facebook.com/radioimedi/videos/449807536403022

Presenting project findings to the NFA

https://www.facebook.com/radioimedi/videos/449807536403022

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recommendations were discussed during the online Scientific Students’ Conference, which took place on December 7th and gathered key stakeholders, including the NFA and USAID (see Activity 11.3).

10.2. OSHE and COVID-19 Training

10.2.1. Introduction and Implementation of Occupational Safety Standards

During Q1, the USAID Agriculture Program, in cooperation with the Occupational Safety, Health, and Environment (OSHE) Association of Georgia, provided consultancies to Program beneficiaries (grant recipients) in the introduction of Occupational and Safety (OS) standards. Specifically, this assistance covered identification and assessment of site-specific risks and elaboration and distribution of OS recommendations/guiding documents including monitoring, mitigation, inspection, emergency response plans, internal trainings programs, internal audit/inspection protocols, and the like. OSHE Georgia’s experts visited 25 businesses in the Kakheti, Guria, and Imereti regions.

10.2.2. Occupational Safety training with a focus on COVID-19

In PY2, the USAID Agriculture Program supported more than 80 companies and trained more than 100 people in occupational safety and health issues, with a focus on COVID-19. Throughout PY3, the Program plans to respond to the need for trainings in pandemic-related regulations, through online webinars. These trainings will help beneficiaries ensure safe and effective operations.

10.3. Best Waste Management Practices

In PY3, the USAID Agriculture Program planned to support its beneficiaries in improving operational capacity by introducing waste management best practices, including recycling, reuse, and recovery of agricultural waste in accordance with the national and international standards. The first part of this activity, a detailed study of waste management practices, was planned to take place during Q1 between October and December. However, this activity was postponed due to the ongoing COVID-19 pandemic.

11. Inclusive Agricultural Value-Chain Development 11.1. AgriBuzz Corps Program

The USAID Agriculture Program, in collaboration with the USAID/Promoting Integration, Tolerance and Awareness (PITA) Program in Georgia, is considering offering PITA’s beneficiary youth internship/apprenticeship at the Program’s partner agribusinesses. The USAID Agriculture Program provided a list of 20 beneficiary companies ready to engage interns. PITA started close collaboration with three companies (Mza Chitili, Kareli Fruits, Achinebuli) to develop detailed scopes and qualification criteria. In Q2, the call for internships will be announced and selected successful applicants identified to further be engaged at the named enterprises. In the scope of this activity, Achinebuli Ltd engaged six regional students for internships. Upon successfully accomplishing their internships, these students may be offered a full-time job.

11.2. Internships

Due to COVID-19 restrictions, the USAID Agriculture Program has not been able to implement the in-house internship program to its full capacity. Only a limited number of interns were engaged in the following directions: one Executive Assistant and two Social Media interns. The Social Media interns will be in charge of the National Agricultural Olympiad (NAO) and Agritalk Facebook pages. Additionally, the Program’s Technical Writer intern has been promoted and hired as a full-time employee.

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11.3. Research and Competition for Young Agricultural Professionals and Entrepreneurs

Since 2017, USAID-funded projects, in cooperation with the NFA and Trécé Inc., have implemented a series of scientific research on invasive pests in order to introduce and establish the effective pest control and monitoring systems. Students from Georgian universities have played a very important role in the implementation of these processes. Under the direct supervision of national and international consultants, students were involved in different activities including field works, data collection and analyses, developing/introducing presentations, and participating in round tables/discussions, among others. In total, more than 15 students/interns representing Tbilisi State University (TSU), Batumi State University (BSU), AUG, and Akaki Tsereteli State University (ATSU) were involved in these initiatives. The engagement of local universities in USAID supported activities and joint field research contributes to the capacity building of local young scientists, facilitates linkages with international research and scientific institutions, and paves a solid foundation for the development of local capacity in applied research and development to better support the sustainable improvement of detection and exclusion national systems for new economically high-risk pests in Georgia.

On December 7th, the USAID Agriculture Program organized the online Scientific Students’ Conference - New Invasive Pests - National Challenge, 2020. The purpose of this conference was to strengthen partnerships between USAID funded projects, the NFA, educational institutions (Universities), and private industry (Trécé Inc.) in the area of applied research, focused on Integrated Pest Management (IPM). During the conference, students/interns involved in USAID funded applied research activities presented their data. A total of eight students, representing three Georgian universities (TSU, ATSU, BSU), discussed their results. The conference was attended by representatives of the NFA, USAID, the USAID Agriculture Program, Universities, and other stakeholders. The participants concluded the meeting with a discussion and a Q&A session, highlighting prospective and needs for further collaborative research.

11.4. Strengthen Agri-Entrepreneurial Social Capital for Women and Young Adults

In late September 2020, a USAID grant recipient, the Georgian Association of Women in Business (GAWB) launched a seven-month project to strengthen the capacity of women engaged in the production of dried fruits and wild plants, fruits, and berries in Shida Kartli and Mtskheta-Mtianeti. In the reporting period, GAWB conducted a survey of 150 respondents, including 82 women entrepreneurs and 68 women who are ready to start their own business, to potentially be included in the project. The potential beneficiaries of the project are members and non-members of the Association, microbusinesses, and start-ups with a focus on dried fruit/berries and medicinal plant production. As part of the project, 10 informational meetings were held in the villages of Mtskheta-Mtianeti (Chargali, Magaro Kari, Mukhrani, Zhinvali, Ananuri) and Shida Kartli (Medjvari Khevi, Karaleti, Kitsnisi, Mereti, Shindisi) to discuss project activities and form groups of project beneficiaries. A total of 60 women were chosen and divided into groups of 15-17 participants. In November, GAWB provided onsite and online training sessions in business skills, food safety, and drying technologies.

The Georgian Young Artists Association (GYAA) is another grant recipient under RFA #003 that started in early December, with the aim of establishing an Agro Art Club in schools and professional colleges in Kakheti region. A total of 100 students will become Agro Art Club members and will have the opportunity to receive practical knowledge and experience in conducting agribusiness activities through the implementation of various mini-projects. In-person classes and mini-projects are planned to begin

Students’ online conference

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in Spring 2021. In the reporting period, GYAA began working in collaboration with local authorities within targeted municipalities.

The Georgian Business Development Center Caucasia (GBDC) is the third grant recipient selected by the USAID Agriculture Program. Together with its partner, Dusheti Farmer Club, GBDC launched a grant project in late November 2020. Within the scope of this eight-month project, GBDC and the Dusheti Farmer Club will implement a pilot project in the Dusheti municipality to support youth engagement in agriculture and facilitate agribusiness startup opportunities. GBDC and the Dusheti Farmer Club will train at least 50 students and youth, develop business plans, assist 10 beneficiaries in obtaining funding, and coach 20 beneficiaries in extension and management areas. In addition, GBDC will work with the Dusheti Farmer Club to increase their institutional and technical capacity by establishing the Youth Agribusiness Resource Center at their premises. This center will provide trainings and consultancy services to local youth. In the reporting period, GBDC began mobilizing students and will start activities in Q2.

11.5. Food Carving

As part of Women’s History Month, the USAID Agriculture Program is planning a food carving event for young women in March 2021. This event was approved by USAID in PY2. The training was initially scheduled for March 2020 but was postponed due to COVID-19. The Program has already selected a food carving expert specializing in creative fruit and vegetable carving9. Upon completion of the master class, the Program will organize a competition among participants. The Program has identified 20 trainees, including culinary students of professional colleges, ethnic minorities, and young women with disabilities. The USAID Economic Security Program will also support this initiative and facilitate internships for winners at its beneficiary HORECA companies.

12. Investments in Innovation In the reporting period, the USAID Agriculture Program received three new applications in response to the Annual Program Statement (APS), which aims to finance innovative and potentially transformative ideas that can drive the development of multiple sub-sectors or the agriculture sector, as a whole. Of the three new applicants, the Program shortlisted one. In total, the USAID Agriculture Program has received 14 applications under this APS, which is open for interested candidates until September 30, 2021. To date, one project (Agrobade Ltd.’s anti-hail net production factory) has been approved by USAID, two have been submitted for review and approval, and further two are shortlisted and will be developed and submitted in PY3. Currently, the following candidates are expecting USAID’s approval:

Agrovitae Ltd - one of Georgia’s leading agricultural input suppliers, which plans to launch production of granular organic-mineral fertilizers. The company intends to partially substitute imported fertilizers with a local quality alternative. This particular project will have a significant impact on Georgia’s agriculture, since Agrovitae Ltd.’s fertilizers will be suitable for all types of crops and soils. Thus, all Program VCs will benefit from this product.

Farconi Ltd - a local processing company, which proposes launching production of apple and rosehip powders and powder capsules by using modern drying and powdering technologies. Through this project, Farconi Ltd aims to become the first Georgian company to start local production of food powders and create a market for innovative functional food supplements.

9 www.thefruitcarver.com

http://www.thefruitcarver.com/

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13. Monitoring and Evaluation

Monitoring Grant Recipient Enterprises: During Q1 of PY3, the USAID Agriculture program selected and received approval for an additional four in-kind grant projects, bringing the total to 47 in-kind grantees, nine capacity building grantees, and one innovation grantee. The Program’s M&E team will collect baseline data and three years of projected performance data.

Meanwhile, data on private investments made by other grantees during this quarter was updated accordingly. To date, the USAID Agriculture Program’s 57 grant recipient companies have leveraged $5,352,741 in private sector investment.

In Q1, seven capacity building grant recipient organizations were contacted and asked to collect and clarify performance data. Specific data collection methodology was designed for these types of organizations and allows the Program to capture both direct and indirect impacts of the TA provided to grant recipients.

To date, four of the seven capacity building grant projects have submitted data on their key performance indicators. Another three organizations are still in the mobilization phase and will be revisited during the next quarter to obtain baseline information and be introduced to the Program’s M&E reporting requirements.

Table 5: Key performance indicators of capacity building grant projects

TA Component: During the reporting period, the USAID Agriculture Program’s M&E team focused on tracking the progress of the TA component. The Program’s TA team worked with 18 new agricultural enterprises (TA beneficiaries):

Table 6: Technical assistance projects initiated in Q1 Company Category Technical Assistance Value Chain Status Nugbari Ltd Non-grantee ISO 22000 Certification

Branding Support Stone and Pome fruits Ongoing

Agricultural Cooperative Ikorta Non-grantee ISO 22000 Certification Branding Support

Stone and Pome Fruits Ongoing

Agroline Ltd Non-grantee BRC Certification Branding Support

Nuts Initiated

Tserovani Aisi Ltd Non-grantee HACCP Certification Stone and Pome Fruits; Perishable Vegetables

Initiated

Fruit Logistica Ltd Non-grantee HACCP Certification Stone and Pome Fruits; Perishable Vegetables

Initiated

Tiriphoni Fruits Ltd Non-grantee ISO 22000 Certification Pome Fruits Initiated Natura Tea Company Ltd Non-grantee BRC Certification Culinary Herbs Initiated Okriba Ltd Grantee BRC Certification Stone and Pome Fruits,

Culinary Herbs Ongoing

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Blueberry Farms Ltd Non-grantee Global GAP Certification Berries Ongoing Agricultural Cooperative Velvet Tea

Non-grantee Branding Support Culinary Herbs Ongoing

Memoberry Ltd Non-grantee Branding Support Berries Ongoing Guruli Ltd Grantee Branding Support Culinary Herbs Ongoing Spacefarms Ltd Non-grantee Marketing Support Culinary Herbs Ongoing Gigi Ltd Grantee Marketing Support Stone and Pome Fruits;

Culinary Herbs; Perishable Vegetables

Ongoing

FIT Ltd Grantee Marketing Support Stone and Pome fruits Ongoing Agrolane Ltd Non-grantee Marketing Support Berries Ongoing Re-fresh Ltd Non-grantee Marketing Support Mandarin, Pome Fruits Ongoing Manna Ltd Non-grantee Marketing Support Culinary Herbs Initiated

As a result, a total of 134 unique non-grantee MSMEs are either benefitting from or have received TA to date. TA is provided in different directions including food safety/quality standards, branding/labeling, agricultural technologies, Gap Analysis, trade fairs, and etc.

Analysis of the TA directions provided to the above-mentioned enterprises, sorted by VC, reveals the following data:

Table 7: Technical assistance beneficiaries, per value chain VC Number of enterprises Berries 44 Greens 53 Nuts and almonds 17 Vegetables 45 Fruit processing 49 Table grape 20

Some companies have expressed interest in participating in several TA directions.

To date, 14 participants have accomplished all recommended tasks and shown improved performance. The USAID Agriculture Program captured results within their activities through a TA survey and consolidated the data entered under the corresponding indicators in the MEL Plan. During Q2, the Program will visit another group of companies, from the remaining 185 TA recipients, and conduct the survey using approved impact attribution methodology.

There are also individuals who also receive group TA and participate in different initiatives designed by the program to improve their business performance.

In total, as of today the USAID Program TA component has reached 1,192 individuals including:

Table 8: Number of participants in training sessions Activity Number of Participants Female Male Onsite training 530 106 424 Online training 678 150 528

Throughout PY2, the USAID Agriculture Program visited 85 participants and obtained baseline data for the TA impact assessment survey. During PY3, the Monitoring and Evaluation team will revisit the participants again to collect end-line data. Either onsite or online field visits will be organized with a new group of individuals to collect data regarding current business performance.

Due to travel restrictions posed by COVID-19 during PY2, the Program adapted its interventions and diversified its activities by offering online trainings and consultancies, including the Facebook live show AgriTalk, and Zoom sessions.

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During Q1, the USAID Agriculture Program continued to focus on digital tools to reach its beneficiaries and as a result, the following online sessions were organized in the reporting period:

Table 9: Number of webinar attendees

Facebook analytics show that the AgriTalk page and posts had significantly more viewers than the Program’s general Facebook page, because AgriTalk videos are tailored and targeted to a specific audience and viewers know what information to expect. However, the Program’s general FB page serves its purpose, as outreach narrows down visitors according to their goals and interests.

Table 10: Facebook statistics by page

Facebook Statistics The USAID Agriculture Program’s Page

AgriTalk Page

Number of unique new users who have liked the page 170 235 The total number of new unique users who have liked and engaged with posts 1,251 3,977

Post shares 291 209

Comments 271 244 The total number of unique people who viewed an AgriTalk video for more than three seconds 145,062 14,561

The total number of unique people who viewed an AgriTalk video for 30 seconds or to the end 24,755 1,869

The total number of unique people who watched an AgriTalk video at 95% of its length 5,941 325

The total number of unique people who viewed an AgriTalk video for at least 60 seconds, given that the video is at least 60 seconds long

13,059 1,447

Crop2Shop: This online platform currently has up to 500 unique IP addresses and about 5,000 visits. Feedback regarding the site will be provided within the scope of the collaboration with RDA and Enterprise Georgia.

Trainings in occupational safety: One TA direction in Q1 monitoring occupational safety systems for Agribusinesses, which was implemented by OSHE Georgia for the Program’s grant recipients.

The initiative continued throughout Q1 and 25 agricultural companies from seven regions were involved. Table 11: Number of participants in OSHE trainings by region

Region Number of companies involved Kakheti 7

Mtskheta-Mtianeti 1 Kvemo Kartli 2 Shida Kartli 6 Samegrelo 1

Guria 6 Adjara 2

Activity Number of Participants Female Male Greens Production in Greenhouses 30 11 19 Online Forum for Mandarin Producers 18 1 17 Total 48 12 36

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The implementation process was carried out by experts from OSHE Georgia and included four phases:

Table 12: Phases of OSHE Georgia implementation process

Phase Activity Phase One Necessary information about occupational safety and health

system management within agricultural companies gathered

Phase Two Analysis of collected information from agricultural companies

Phase Three OSHE Georgia experts visited 25 companies to assess occupational safety and health system management within organizations

Phase Four OSHE Georgia experts wrote recommendations for improvement.

Out of these 25 companies, 18 have participated in the joint project between OSHE Georgia and the USAID Agriculture Program. One participating company underwent an accredited “Occupational Safety Specialists Training Program” and 17 companies participated in an online course on "Occupational Safety During a State of Emergency – Key Principles for Agribusiness."

As a result of this initiative, the following findings were identified and recommendations were provided accordingly:

Although all 25 companies were involved in the two previous joint projects between USAID and OSHE Georgia, a majority of the companies have either only partially or not implemented an occupational safety and health management system:

Only 1 company has met the expectations and implemented an occupational safety and health management system

17 companies have not had an occupational safety specialist 24 companies have not developed, or had incomplete, documentation 24 companies have not conducted occupational safety training 17 companies have not met fire safety requirements 14 companies have not addressed electrical safety work conditions 17 companies have not met coronavirus prevention requirements 14 companies did not have a waste management plan or carry out activities in this direction 5 companies have violated “working at heights” standards

One positive outcome was the interest expressed by the management teams of several companies to develop or improve safety standards. However, a majority of the companies were still unfamiliar with the aim and content of the project despite being informed repeatedly.

To ensure the sustainability and impact of the work safety TA activities conducted in collaboration with OSHE Georgia, the USAID Agriculture M&E team will revisit all participant companies during Q2 to follow up on the implementation of given recommendations and provide further assistance if needed.

For more details, please see the report submitted to the USAID Agriculture program from OSHE Georgia on November 13, 2020.

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Partnerships and Collaboration 1. Host Country Coordination Rural Development Agency: RDA and its ICCs are involved in many aspects of Program implementation, from access to new varieties and inputs, to production, market access, cooperative support, outreach, and environmental management. During Q1 and throughout the rest of PY3:

• RDA Extension Agents will learn new production technologies by continuing their involvement in international TA (Activity 4.2) and will participate in study tours throughout PY3 (Activity 4.4).

• ICCs will serve to help disseminate information to farmers on production guides (Activity 4.3), provide training to growers interested in producing vegetable seedlings (Activity 3.9), and solicit applications for grant RFAs (Activity 9.2)

• RDA will jointly finance activities regarding the Georgian Export Promotion Campaign (Activity 7.2), international and organic standards certifications (Activity 7.1), and provide support to agricultural cooperatives (Activity 2.4).

Enterprise Georgia: Enterprise Georgia is a key Program partner in the area of access to markets, both domestic and export, and has collaborated with the Program in developing a Georgian brand for agri-food products and supporting agribusinesses to participate in international trade fairs. In the reporting period, Enterprise Georgia continued to work with the Program to further build on its new brand recognition in an Export Promotion Campaign (Activity 7.2). Enterprise Georgia was also involved in organizing the online “Agro Export Forum” which was held on November 27-28 (Activity 7.2.3).

Scientific-Research Center of Agriculture: The USAID Agriculture Program’s collaborative efforts with SRCA focus on access to inputs. SRCA will participate in the Nursery Certification Study Tour, planned for June 2021 (Activity 3.3), and will be involved in developing and disseminating information on vegetable seedling regulations in Q2 (Activity 3.9). During this quarter, the SRCA was also involved in online trainings for nurseries in proper record keeping of nursery journals (Activity 3.4).

National Food Agency: The NFA is engaged with the Program on many aspects of environmental management, input supply, and quality certification. The NFA was a key partner in pest monitoring activities, starting with the Brown Marmorated Stink Bug (BMSB) and now continuing with other pests (Activity 10.1). The NFA also works continuously with the program to improve the legislative framework for input supply (Activity 3.2) and will participate in the planned Nursery Certification Study Tour later in PY3 (Activity 3.3).

The Ministry of Agriculture of Adjara remains involved in the development of the mandarin VC, due to its importance in the region as a source of livelihoods, and worked with the Program to host the online Mandarin Forum (Activity 7.3.4).

2. Donor Cooperation The USAID Agriculture Program works closely with other USAID Programs, as well as other implementers, donor organizations, and embassies, to maximize program impact and broaden linkages beyond Georgia, where there are areas of mutual interest in the targeted VCs. Specific partner organizations include:

The USAID Economic Security Program: the USAID Economic Security Program is a natural partner for broader activities that are not specific to agricultural VCs. Cooperation includes the introduction of HACCP systems into the HORECA industry (Activity 7.1.4) and collaborating with the USAID Agriculture Program on best waste management practices, though that activity has been postponed due to COVID-19 (Activity 10.3). The USAID Economic Security Program also supports joint-efforts to upgrade the e-service platform TradewithGeorgia.

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USAID Promoting Integration, Tolerance and Awareness Program in Georgia (PITA): the USAID Agriculture Program works with PITA to create internship opportunities for young individuals in relevant fields. The Program has compiled a list of 20 beneficiary companies and continues to work with PITA to fully prepare them to engage interns. PITA will announce a call for interested applicants in Q2 and selected applicants will be engaged by the first group of companies including Mza Chitili Ltd, Kareli Fruits Ltd, and Achinebuli Ltd. Upon completion of a successful internship, the companies may offer full-time opportunities to interns (Activity 11.1).

FAO: The USAID Agriculture Program continued to coordinate with the FAO in areas of mutual interest which include developing a regulatory framework for associations (Activity 2.1) and nursery certification activities.

USAID ZRDA Activity: The Program and the USAID ZRDA Activity will continue to jointly support an initiative for smaller producers to advertise their products on the web platform extra.ge.

3. Universities Universities are involved in the USAID Agriculture Program activities on several levels, participating in production trainings, developing internship opportunities, offering their students opportunities in projects such as data collection, and acting as service providers for trainings and consultancies. The USAID Agriculture Program is currently working with four universities across Georgia. Agrarian University is developing a Short Certificate Course for Berries (Activity 4.1) and GIPA is assisting in the development of a Short Certificate Course for Herbs Best Growing Practices (Activity 4.1). Batumi Shota Rustaveli University and Kutaisi ATSU were involved in a joint pest monitoring activity with Trécé and the NFA, and their findings have been submitted to the NFA for further discussion (Activity 10.1).

4. Private Sector Partnerships In the reporting period, the Program continued to build on, expand, and replicate existing partnerships while seeking out new ones. Partnerships are demand-driven and based on mutual interests and integrated into broader Program goals and activities. Specific activities were discussed in detail in the previous sections and are summarized here for clarity.

Trécé Inc.: Trécé has been a longstanding partner of the program and continued its work with the Program in pest monitoring during the reporting period (Activity 10.1). Trécé was also supported the online Scientific Students’ Conference in early December (Activity 11.3).

Georgian Retailers Association: The GRA is an excellent partner for developing local supply chains, and the Program will continue work with the Association on several access to markets and supply chain activities to facilitate market linkages for domestic producers and open new e-commerce channels. GRA has collaborated with the Program to develop a domestic marketing campaign to foster consumption of locally produced food products (Activity 7.3.1).

TBC Bank: TBC Bank is a key partner for the Program and has continued cooperation through the reporting period. The partnership addresses access to finance for agribusinesses (Activity 8.1). During Q1, the Program and TBC Bank worked together to begin developing a tailored financial package for consolidation centers (Activity 5.1). TBC Bank will also be involved in a series of AgriTalk videos focused on access to finance (Activity 9.1), as well as other media appearances (Activity 9.3).

JRC: The Journalism Resource Center (JRC) will continue to work with the Program to expand the content and reach of the highly successful AgriTalk initiative, taking it beyond social media to broader dissemination channels and involving students in content development (Activity 9.1). JRC was also directly involved in developing and airing a short video interview with a young professional who works as a Food Technologist at a Program beneficiary (Activity 9.3).

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UGT: UGT partnered with the USAID Agriculture Program to develop the Mobile Harvest application. During the reporting period, three beneficiaries began using the application. More consultations, and wider implementation of the application, are planned for later in Q3.

Imereti Agro Zone: The USAID Agriculture Program began negotiations with the Imereti Agro Zone in establishing a training center, a logistics hub, and several types of greenhouses in Western Georgia. The scope of negotiations with the Program includes jointly-organized trainings in VCs of mutual interest. The parties are currently preparing terms and discussing detailed training courses to cover areas such as vegetable growing best practices and greenhouse technologies (Activity 4.5).

International Orthodox Christian Charities (IOCC): IOCC supports agricultural cooperatives established by internally displaced persons (IDPs) in the Samegrelo region. These IDPs were supported by IOCC with small-scale fruit drying equipment, so they can have additional income while drying fruits and selling on local farmers’ market. Negotiations are ongoing to establish two fruit drying facilities in Samegrelo.

Project Management 1. Office & Staffing In Q1, the USAID Agriculture Program continued implementation with 30 full time staff members, located in the Program’s central office in Tbilisi and three regional offices in Kutaisi, Batumi and Telavi, which house Regional Activity Managers overseeing Imereti and Samegrelo, Guria and Adjara, and Kakheti.

Due to the high workload related to technical writing, the program selected a new staff member to provide technical writing and editing support to the Program, including copyediting investment proposals, weekly, quarterly, and annual reports, and social media posts. The position was solicited and competitively selected following CNFA’s policies and best practices. The selected candidate is a native English speaker and American citizen and has a bachelor’s degree from an American university.

In addition, due to high workload in the grants component during Q1, the Program solicited and selected a Grant Analyst Consultant, following CNFA’s policies and best practices. The consultant is expected to start in early Q2.

2. STTA In Q1, the USAID Agriculture Program continued to introduce new technologies and practices through the engagement of leading international and local agriculture consultants with specific expertise in the targeted VCs. The following is a list of consultancies approved in the reporting period.

Table 13: STTA consultants engaged in Q1 Type of Assignment Brief Description Consultant

Food Safety Standards Consultant

Assist the USAID Agriculture Program’s beneficiaries to introduce existing regulations NFA towards various types of enterprises

Local - Tamar Piranishvili

Nursery Certification Expert

Assist the USAID Agriculture Program’s beneficiaries engaged in nursery production to adopt and implement certification requirements set by Georgian legislation

Local - Tamar Jinjikhadze

Food Processing Consultant

Introduce and refine food processing and drying technologies that meet the best industry practices and food safety norms

Local - Liana Jerenashvili

Agricultural Health and Safety Consultant

Contribute to the development of a set of recommendations on the elaboration of regulations and rules in line with PERSUAP and EU regulations on safe storage, transportation, sale, and use of pesticides and agrochemicals

International - Pavel Minar

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Raspberry/Blackberry Consultant

Open field production training on technologies, cultivars, farm inputs, and operating practices

International - Jorge Duarte

Pre-Cooling Consultant Provide practical technical support to primary producers and postharvest handling operators to increase efficiency of their operations, thereby strengthening targeted horticultural VCs.

International - Krzysztof Piotr Rutkowski

3. Subcontracting In the reporting period, the USAID Agriculture Program continued to work with sub-contractors WFLO and SEEDEV. WFLO worked closely with program staff to develop Cold Chaim Management training materials, including a series of videos (See Activity 5.3). SEEDEV will begin its consultancy on updating the initial sector and VC analysis late Q2.

4. Resiliency and Contingency Planning In line with the Government’s regulations and recommendations related to COVID-19, the USAID Agriculture Program switched to remote working in early PY3. The Program continues utilizing online tools to implement activities proposed in its Year 3 Work Plan, including trainings, conferences, etc. Due to the existing restrictions, the Program was unable to conduct all site visits scheduled as part of RFA #004 and #005 and organized virtual site visits in order to select candidates and proceed with developing grant packages as scheduled.

5. Grant Management To date, 47 in-kind, nine Capacity Building grants, and one Innovative Grant have been approved, for a total of $3,314,205 grant amount committed, leveraging $5,750,701 in private sector funds. Three in-kind grant packages to support processing enterprises are in development, for a total of $159,900 grant amount committed, and leveraging $364,200. Table 14: In-kind, innovation and capacity building grant projects

Activity # Projects Approved

Grant Amount

committed

Grant Amount

disbursed

Match Amount

committed

Match Amount

disbursed RFA 001 Support to Berry Sector 11 641,681 576,755 803,536 787,521 RFA 002 Cold Storage and PHH

Development 15 978,170 614,964 1,765,151 1,357,617

RFA 003/003B

Support Processing Enterprises 21 1,170,207 152,858 2,572,621 744,080

CBG 001 Support Modern Food Safety Certification and Audit Services in Georgia

2 28,780 11,169 53,640 15,886

CBG 002 Support Business Associations in Empowering and Strengthening Horticultural Sector in Georgia

2 128,730 119,085 56,178 54,141

CBG 003 Support to Business Associations to Facilitate Women and Youth Engagement in Agribusiness

3 104,702 15,761 44,670 -

CBG 004 Support Business Associations for Increased Integration and Technical Capacity in Berry, Culinary Herbs, Mandarin and Almond/Walnut VCs

2 111,935 - 56,945 -

APS 001 Investments in Innovation 1 150,000 - 397,960 12,500

Total 57 3,314,205 1,490,592 5,750,701 2,971,745

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In July 2020, the USAID Agriculture Program released RFA #004 and RFA #005, offering in-kind grant support to nurseries and consolidation centers within its priority VCs. A total of 18 applicants for RFA #004 and 19 applicants for RFA #005 have responded to these calls. Based on applications and site visits, the Program selected eight consolidation centers and six nurseries with a total grant budget of $829,130 and a total cost share amount of $1,351,131.

Under the fourth capacity building RFA, two capacity building grants have been approved with a total grant budget of $111,935 and a total cost share amount of $56,945.

6. International Study Tours Due to travel restrictions caused by the ongoing COVID-19 pandemic, there were no international study tours held in the reporting period. The study tours will be organized once the travel restrictions are lifted and the epidemiological situation in the destination country allows international visitors to travel safely.

Key Constraints Due to COVID-19 restrictions, the scheduled implementation of ongoing grant projects was delayed and the number of applications for RFA #004 and #005 was reduced. Because of the uncertainty caused by the pandemic, entrepreneurs are reluctant to invest in new ventures. Additionally, a portion of the available cost-shared funds, mobilized through GoG assistance programs such as RDA grants, was diminished because most Government funding was allocated to emergency resources. The Program considers this a major reason for reduced applications in innovation grants, because they are considered a high-risk investment.

COVID-19 restrictions impacted the implementation of TA programs in the area of best growing practices and food safety because travel restrictions made it impossible to conduct necessary international audits to complete the final phase and obtain relevant certifications.

Annex 1: The Ongoing, Initiated, and Completed Technical Assistance Projects Annex 2: Online Trainings Annex 3: Approved In-Kind, Capacity Building, and Innovation Grant Projects

Documents

Project Year Three First Quarterly Report