AGR I CU L TUR A L V ALUE CH AINS (AVC)

ACTIVITY

FY 2017

–

Quarter 4

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Report

July –

September 2017

October 201 7 Th i s p u b li cati o n w as p r o d u ced f o r r e v i ew by t he U n i t ed S t at e s A ge n cy f o r I n t ern a t i o n al D e v e l o p m e n t . I t w as p r e p a r ed by DA I Global, LLC

AGRICULTURAL VALUE CHAINS

(AVC)

ACTIVITY

FY 2017 - QUARTER 4 - REPORT

JULY – SEPTEMBER 2017

Agricultural Value Chains (AVC) - Uzbekistan #104-A Kichik Beshog’och

Street

Tashkent, Uzbekistan 100025

For the U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT Contract No. AID-176-C-15-00001

October 2017

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

ACRONYMS

AAI Andijan Agrarian Institute ADB Asian Development Bank AVC Agricultural Value Chains Activity (2015-18) (USAID) COP Chief of Party CTJ Competitiveness, Trade and Jobs Project (USAID Regional) DAI DAI Global, LLC DIY Do-It-Yourself FY Fiscal Year G&A General and Administrative GCCA Global Cold Chain Alliance GDF Gold Dried Fruit GOU Government of Uzbekistan ICA Independent Consulting Agreement (DAI Global) ICT Information and Communication Technology IFAD International Fund for Agricultural Development IFC International Finance Corporation IM Instant Messaging IR Intermediate Result JICA Japan International Cooperation Agency JSC Joint Stock Company LLC Limited Liability Company MAWR Ministry of Agriculture and Water Resources (Uzbekistan) NEP National Exchange Program ODC Other Direct Costs OH Overhead PERSUAP Pesticide Evaluation Report – Safe Use Action Plan RDCS Regional Development Cooperation Strategy (USAID) R&R Rest and Relaxation SAI Samarkand Agrarian Institute TCPC Tissue Culture Production Complex TSAU Tashkent State Agrarian University (Uzbekistan) UAE United Arab Emirates UK United Kingdom UNDP United Nations Development Program UNOSSC United Nations Office for South to South Cooperation USAID United States Agency for International Development USDA United States Department of Agriculture UZS Uzbek Soum VRI Vegetable Research Institute (Uzbekistan)

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CONTENTS

A. BACKGROUND ....................................................................................................................................... 0 1. Project Goals and Objectives ............................................................................................................... 0 2. Project Components .............................................................................................................................. 1 3. Geographic and Commodity Focus ...................................................................................................... 1 B. ADMINISTRATIVE ................................................................................................................................... 1 1. Personnel ............................................................................................................................................... 1 2. Local Registration ................................................................................................................................. 2 3. Other ....................................................................................................................................................... 2 C. PROJECT ACTIVITIES UNDER COMPONENTS .................................................................................... 3 1. Component #1: Improve Quality & Volume of Agricultural Production .............................................. 3

a. Improve On-Farm Productivity ............................................................................................................... 3

b. Increase the Quality and Availability of Agricultural Inputs ..................................................................... 4

2. Component #2: Improve Post-Harvest Handling & Production .......................................................... 6 a. Facilitate the Advancement of Cold Storage Practices .......................................................................... 6

b. Utilize Improved Post-Harvest Production to Reach New Markets ......................................................... 6

3. Component #3: Facilitate Market Linkages .......................................................................................... 8 a. Create New Linkages in the Domestic Market ....................................................................................... 9

b. Create Market Linkages with New Foreign Markets.............................................................................. 9

4. Component #4: Link Educational Institutions with Private Sector Demand .................................... 13 a. Agricultural Universities. ...................................................................................................................... 13

b. Research Institutes.............................................................................................................................. 15

5. Collaboration with other organizations .............................................................................................. 16 6. Women in Agriculture .......................................................................................................................... 17 D. MONITORING AND EVALUATION ....................................................................................................... 17 1. Monitoring and evaluation .................................................................................................................. 17 2. Communications and Outreach .......................................................................................................... 18 E. ENVIRONMENTAL COMPLIANCE ...................................................................................................... 21 1. Monitoring ............................................................................................................................................ 21 2. Mitigation............................................................................................................................................... 21 3. Issues .................................................................................................................................................... 21

A. BACKGROUND

1. Project Goals and Objectives

USAID’s Agricultural Value Chains (AVC) Activity supports Development Objective #1 under the Regional Development Cooperation Strategy (RDCS) – Expanded Diverse and Competitive Trade and Markets. Specifically, the Activity contributes to Intermediate Result (IR) 1.1 – A More Diverse Private Sector, and IR 1.2 – Enhanced Agricultural Competitiveness and Food Security. In support of this Development Objective, the AVC Activity seeks to:

(1) create employment opportunities; (2) improve incomes; (3) increase fruit yield and quality; (4) increase packed and processed output; (5) increase targeted fruit and vegetable exports; (6) link USAID’s producers and processors to international markets; (7) strengthen relationships between educational institutions and the private sector.

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2. Project Components

AVC is organized into four Components, linked by cross-cutting themes, all targeted at economic actors along select fruit and vegetable (F&V) value chains. The mandate of each Component is:

• Component 1: improve the quality and volume of agricultural production; • Component 2: improve post-harvest handling and production; • Component 3: facilitate market linkages; and • Component 4: link educational institutions with private sector demand.

3. Geographic and Commodity Focus

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

# Province Districts AL ALP AVC Total

1 Samarkand Taylok Payarik Samarkand Urgut Bulungur 3 5 5

2 Namangan Pop Turakurgan Uychi Kosonsoy Chortok Yangikurgan 2 6 6 3 Ferghana Kuvasoy Ferghana Kuva Altyaryk 1 4 4

4 Tashkent Ohangaran Bustonlik Zangiata Parkent Kibray 5 5

5 Andijan Andijan Bulokboshi Hujaobad Marhamat Jalakuduk Kurgantepa 5 6

6 Bukhara Jondor 1 1

7 Karakalpakstan Nukus 0 1

8 Jizzakh Bakhmal 0 1

9 Kashkadarya Kitab 0 1

10 Navoi Khatirchi 0 1

11 Syrdarya Syrdarya 0 1

12 Khorezm Bogot 0 1

Sub-Totals 6 26 33 34

Table 1: AVC Geographic Focus by Province, including Tashkent City

Although it is generally agreed AVC will focus on edible horticulture, the signed MOU did not designate specific crops for project activities. Project expertise embodied in its staff and accumulated knowledge over the previous projects is greatest in stone fruits, pome fruits and grapes which is extended to vegetables and gourds (melons) under AVC.

B. ADMINISTRATIVE

1. Personnel

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This quarter witnessed standard financial and administrative support from the project administrative staff to the on-going activities of the AVC field office technical teams. The DAI Global, LLC Project Manager for AVC was changed this quarter from Misha Voronenko to Sarah Wall.

2. Local Registration

By the end of the quarter the DAI field office began drafting the materials required to re-register DAI’s Resident Representation in Uzbekistan. The portfolio of reporting, financial figures and supporting documents will be submitted to the local authorities by the end of the first month of FY 2018.

3. Other

A new USAID Uzbekistan Country Officer arrived at post at the end of this quarter. His name is Gary Robbins.

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C. PROJECT ACTIVITIES UNDER COMPONENTS

The 4th quarter of the USAID fiscal year marks the period of the horticultural season when end-of-season activities focus on improved techniques to increase yields.

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

a. Improve On-Farm Productivity

Apple NEP. AVC organized a national exchange program (NEP) on best agricultural practices for intensive apple production in collaboration with two input suppliers, Syngenta and Yara. The training was held at a 77 hectare AVC demo orchard in the Bakhmal District, Jizzakh Province to which all three hosts have provided technical assistance during the 2016-2017 crop season. AVC staff provided technical assistance on tree training, canopy management, dormant and green pruning, and fertigation. Syngenta provided integrated pest and disease management training and Yara demonstrated a sample foliar fertilizer application.

The NEP demonstrated and highlighted the orchard’s pre-harvest results to approximately 70 apple producers from districts throughout the country including Bakhmal, Parkent, Zangiota, Kibray, Kosonsoy, Turakurgon, Jondor, Khatirchi, Urgut, Bulungur, Urtachirchiq, Samarkand, Mingbuloq, and Jizzakh.

A representative from Bahco, an international agricultural tools supplier traveled to Uzbekistan at the company’s cost to market Bahco products and demonstrate a selection of tools. Agricultural Business Innovative Technologies, LLC, Israeli NaanDaan Jain, Ltd, and the representative office of John Deere, also marketed their technologies, products, and services while providing technical assistance in their proper application and use.

Mirzaev Grape Variety Contest. In September 2017, the Mirzaev Institute organized and hosted a Grape Variety Festival and Contest. This event was initially supported by AgLinks and has consistently been held during subsequent USAID projects (AgLinks Plus and AVC) with ownership of the event gradually transferred to public sector partners. This year, AVC’s contributions to the event were limited to sponsorship of 9 contest prizes and a technical presentation of AVC activities at the conference. AVC’s presentation included a discussion with students from Tashkent State Agrarian University (TSAU) in partnership with Component #4. All other organization and planning responsibilities were handled by Mirzaev. Over half of the approximately 40 grape contest participants were AVC partners.

The judge panel grape evaluation process

Group photo of the Apple NEP participants

Training session underway

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South-South Workshop in Tashkent. AVC was represented by three presenters in the SouthSouth Knowledge Exchange and Coordination Workshop organized and held by the United Nations Office for South-South Cooperation (UNOSSC), Ministry of Agriculture and Water Resources (MAWR), and International Fund for Agricultural Development (IFAD). AVC presenters shared best practices and agricultural technologies in intensive apple and grape production, cold storage, and other relevant areas to participants from 8 countries from Africa, Europe and Asia.

Presenters discussed technologies successfully implemented and disseminated in Uzbekistan including:

• Delayed grapevine pruning, girdling and trellising (presented by Gholibjon Mahmudov)

• Innovative cold storage practices such as regular precooling, pyramid method of precooling, sulfur pad usage in grape storage, cold storage construction and operations management (presented by Mumin Isamiddinov)

• ICT technologies including instant messaging groups, apps, information bots, plus text and video information channels (presented by Sardor Kadirov)

Attendees and organizers alike commended AVC for presenting practical solutions and technologies that while based in science, were tested and proven useful through field application by Uzbek entrepreneurs.

b. Increase the Quality and Availability of Agricultural Inputs

Private Sector Tissue Culture. As the traditional planting season ended in the first half of Q4, the De Nova Agro laboratory experienced a decrease in product demand. Nevertheless, due to Uzbekistan’s currency liberalization, major tree importers such as “Sharq-Sanoat” saw almost a 100% increase in the cost of their imported rootstocks and ready trees which bodes well for future domestic demand for saplings produced in-country.

Because of price increases and heavy losses in their cherry orchards, “Agromir” (another large local sweet cherry grower and juicer) intends to place an order for a large quantity of De Nova Agro Krymsk 5 and Maxma-15 cherry rootstocks. During August and September, AVC’s Biotech Specialist focused on optimizing the production protocols for the newly introduced Maxma-15 cherry rootstock cultivar. Based on present capacity and calculations, the De Nova Agro facility can currently produce approximately 800,000 rootstocks for the 2018 planting season. The major binding constraint on production above this capacity remains trained, reliable and conscientious human capital in the laboratory.

Varieties demonstration to attendees by participants

AVC Staff ( far right) at South - 2 - South Conference

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In regards to past orders, 25,000 De Nova Agro Krymsk 5 rootstocks delivered to Gold Dried Fruits (GDF) Nursery in Namangan have already been grafted with various Turkish, American and Italian sweet cherry varieties.

In preparation for the establishment of Chandler walnut budwood-blocks necessary for their future tissue culture facility, GDF ordered and received shipments of in-vitro produced Chandler walnut trees directly from Tissue-Grown Corporation in California. AVC staff and international consultants had brokered the deal between GDF and Tissue Grown Corporation.

Public Sector Tissue Culture. The Tissue Culture Production Complex (TCPC) at the Mirzaev Horticultural Research institute continues to struggle to find its footing. A key member of the TCPC staff trained by AVC, Jahongir Gulyamov, left the laboratory which has hindered workflow. At present, the TCPC has only two staff members who have significant work experience in tissue culture. Personnel consistency remains a key challenge for the TCPC since USAID turned over the facility to Mirzaev in February 2015.

In regards to potential greenhouse construction at Mirzaev, the AVC team has compiled a list of greenhouse suppliers in Uzbekistan and begun collecting letters of interest. There are many greenhouse suppliers, and careful selection of the vendor is the AVC team’s main priority to ensure any high-quality construction of a greenhouse at the Mirzaev Horticultural Research Institute. Mirzaev notified AVC that several required site preparations are complete; however, AVC must confirm the status of these preparations prior to the official procurement process. AVC’s Component #4 team is working with Mirzaev on ensuring required electric and water supply for the greenhouse.

Chandler walnuts, air - freighted from California, USA: Acclimated at GDF

greenhouse facility

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

The 4th quarter of the USAID fiscal year focuses on trainings and cold storage preparations for upcoming seasons.

a. Facilitate the Advancement of Cold Storage Practices

Partnership with UNDP Funded Cold Storage Facility. In collaboration with UNDP’s Aid for Trade project, AVC and GCCA provided technical assistance to an AVC partner in Kuvasay District, Fergana Province to construct a cold storage facility with small-scale drying equipment. The layout and design of the cold storage facility was developed in partnership with AVC, GCCA and UNDP’s project and the project will be co-financed by UNDP and the host farmer. The cold store will consist of two cold rooms and a refrigerated corridor with total capacity of 180 tons.

A solar dryer will also be installed near the facility. The proposed facility will process locally produced fruits like apricot, peach and plum for export. The concrete foundation work is completed and further construction is being closely monitored by GCCA’s cold chain consultant.

AVC/GCCA Partner’s Cold Storage Progress in Turakurgan District, Namangan Province. AVC’s cold storage partner from Turakurgan District, Namangan Province has progressed from a regular household cold storage owner into a large industrial cold storage businessman. Previously, he was limited to pomegranate and carrot storage due to the size of his facility and limitations of the “coolbot” air cooling system.Through active participation in all AVC/GCCA organized events and a commitment to growing his business, he built an industrial 200 metric ton cold storage facility. The new facility is already pre-booked by local consolidators, wholesellers and exporters for the entire year. He is providing pre-cooling and prolonged storage services to customers for cherry, peach, apricot, plum, persimmon, grape and apple.

b. Utilize Improved Post-Harvest Production to

Reach New Markets

GCCA Advisor (right) Discussing Cold Storage

Design Parameters with Owner

Early-morning Truck Queue at Turakurgan Cold

Store

Computer - A ided Design o f Proposed Cold

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Grape Value Chain Training. At the request of partners from western Uzbekistan, AVC organized a grape value chain training focused on advanced grape production and postharvest practices. The training program was attended by growers and cold storage owners from Samarkand, Navoiy, Sirdarya and Namangan provinces. AVC demonstrated two types of trellis systems (“I” shape and “Roof” method, known as Altiarik method) and introduced and reinforced advanced postharvest practices.

In Bulakbashi District, Andijan Province the group observed the “I” shape trellis system and associated agronomic and production practices. Several participating growers agreed to buy grape saplings from Bulakbashi District. In Altiarik District, Fergana Province host farmers demonstrated advanced grape production and postharvest practices, including harvesting, sorting, grading, and packaging practices both for export and prolonged storage. Participants toured the host farmer’s cold storage facility and observed methods for packaging and pyramid stacking grapes to reduce precooling time.

Peach Value Chain Training. AVC and GCCA organized a peach value chain training on improved production and postharvest practices in Kuvasay District, Fergana Province. Kuvasay District was purposely selected as host because the region is the largest producer of peaches and nectarines in Uzbekistan due to suitable climate, soil, and water conditions. Most of the peaches produced in Kuvasay are exported to Russia.

Farmer groups, nursery owners, and cold storage facility owners from Fergana, Namangan and Andijan attended the event. The host farmer introduced the orchard’s varieties and specific agronomic practices applied in the orchard and conducted a field demonstration of production and post-harvest practices including pruning, thinning, harvesting and packaging. The group also visited the orchard’s cold storage facility to observe the peach pre-cooling technology. GCCA and AVC spoke about peach post-harvest practices, especially the pre-conditioning practice, which reduces internal breakdown of the peach during prolonged storage. Participating nursery owners from Namangan brought samples of unique peach varieties to discuss and demonstrate to training participants.

Peach Value Chain Participants Discuss Varieties

“Pyramid” Stacking to Accelerate Grape Pre - cooling

Grape Value Chain Training Participants Altarik District, Ferghana Province

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Jizzakh Apple Post-harvest Training. In partnership with AVC Component #1, the Component #2 team participated in the Apple NEP program, presenting apple post-harvest practices. Specifically, AVC and GCCA presented the importance of ethylene management to maintain apply quality during prolonged cold storage. GCCA also presented on ventilation, pre-cooling and the required temperature and humidity levels during storage. AVC provided participants with handouts displaying potential physiological disorders that can occur during storage.

Collaboration with Korzinka.uz. AVC continued to collaborate with the local grocery store chain, Korzinka, in Q4 by organizing peach and grape study tours to the Fergana Valley. At Korzinka’s request, AVC led a group of their fresh produce managers and specialists on a tour of orchards and cold storage facilities in Andijan and Fergana provinces to observe the peach harvesting, packaging and pre-cooling processes, and learn about the entire cold chain process.

At the request of AVC and GCCA, a similar study tour was organized by Korzinka at their fresh produce collection center and warehouse in Tashkent. Vertically integrated growers from Navoi, Samarkand, Tashkent, Andijan, Fergana and Namangan provinces attended the tour to observe how Korzinka receives and handles fresh produce from wholesalers, growers and their agents early in the morning and distributes produce to their metropolitan chain stores. Participants also toured their cold chain facility which is under construction.

3. Component #3: Facilitate Market

Linkages

The fourth quarter of FY2017 focused on developing new marketing outlets for both domestic and international markets.

Apple NEP in Bakhmal District, Jizzakh Province

Korzinka’s Fresh Produce Manager Explains Their Produce Quality, Storage and Shipping Requirements

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a. Create New Linkages in the Domestic Market

Perspective Linkages in the Domestic Market. AVC’s

Component #3 team collaborated with the Component #2 team on several domestic market-oriented business trips in July and August to gather information about available products, potential suppliers and domestic market requirements. This included the Korzinka supermarket chain collaboration and study tours described above.

These trips were a unique opportunity for Korzinka produce managers to meet directly with owners of peach orchards and vineyards, cold storage facility operators, wholesalers, and growers to establish direct supply chain relationships without middlemen or brokers. Suppliers demonstrated their product quality and buyers provided feedback on quality requirements for their supermarkets.

As follow up to this activity Korzinka invited the suppliers to their facility at Tashkent’s Kuyluk wholesale market to observe their produce receiving area and to discuss the contractual points for further collaboration. As a result, Korzinka formed agreements for sourcing products including grapes, carrots, apples, radishes, etc.

A further result of these study tours is an AVC partner grower from Altiarik District, Ferghana Province is supplying premium quality fresh table grapes directly to Korzinka while a partner grower from Parkent District, Tashkent Province is supplying Korzinka with seedless grape varieties. These suppliers are providing 10 tons of 5 varieties of grapes, valued at 100 mln UZS ($12,500). The table grapes are supplied weekly through the end of November.

AVC’s Marketing team will continue to follow these market trends and deepen collaboration with both sides – the suppliers and the buyers – during the 2018 agricultural season.

b. Create Market Linkages with New Foreign Markets

Target Market-Oriented Product Improvement and Test Shipments to

Export Markets. AVC continued test shipment activities in this quarter based on partners’ requests. AVC assisted local exporters with proper packaging technologies to meet end-market requirements for fresh melons, peaches, nectarines and grapes. The following transactions were accomplished during the months of July to September:

Fresh Melons to Japanese market: Based on a request from the seller (local export company, Legumes LLC) and JSC Uzagroexport, AVC assisted Legumes LLC with packaging technology, procuring supporting corners for pallets, to meet the Japanese buyer’s (MEIKA Corporation) requirement. Six melon varieties were sent for introduction to the Japanese market, and the varieties (such as Kukcha, Chillaki and Obinavvot) were accepted based on their high brix (sugar content), shape and appearance.

However, the following questions were raised based on Japanese market requirements: • Transportability and storability of these varieties

Parkent Table Grapes in Middle Selling Area at Korzinka.uz

Supermarket

Altyarik Table Grapes on the Shelves of Korzinka.uz supermarket

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• Uniformness: sugar content – different brix levels was observed from the same variety; the size –

1000-1200 grams preferred instead of the larger sizes (e.g. 3000-4500 grams)

All the comments by the Japanese buyer were well noted and AVC agreed to continue collaborating with the seller and follow up on this market during the next season.

Fresh Peaches to UAE: AVC supported another local exporter (Yangiarik Zaxira LLC) with proper calibration and packaging for export of fresh peaches and nectarines to a UAE company (Go Nuts & Fruits LLC). AVC procured 5-kg boxes and trial calibration sizing tools, which can be used for peaches and nectarines as well as other fruits, for the exporter as a test case. The products were accepted by the UAE partner and the two companies agreed to work together in the 2018 agricultural season.

Table Grapes to Latvia: Per request by an exporter (RedPack LLC) from Syrdarya Province the AVC marketing team helped source high-quality table grapes of three varieties from a local supplier from Altyarik District, Ferghana Province for export to the Latvian market to meet the buyer’s (Elmir’s LLC) requirements.

Fresh Melons Packed and Ready for Shipment

to Japanese Market

Price List Offer by JSC Uzagroexport for

MEIKA Corporation

Palletized Fresh Melons with Proper Corner Reinforcements for

Shipment

Partner Exporter Sizi ng Peaches & Nectarines

Before Shipping

Calibration Sizer s Orchard Tested Before Providing to Exporter

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Small Test Shipments of Cherries Stimulates Large Trade Delegation. AVC supported a successful trial shipment of fresh 2017 cherries from an Uzbek exporter to a buyer in London. This shipment led to a full trade delegation of Uzbek exporters to the United Kingdom. AVC collaborated with the Uzbek Embassy in the UK, the UK Embassy in Uzbekistan and USAID’s regional Competitiveness, Trade and Jobs (CTJ) project to initiate a trade delegation of 19 Uzbek exporters to obtain direct marketing information and experience on the UK fruit and vegetable market.

AVC played the role of broker between the abovementioned buyer and seller by linking them in the export market and supporting the seller with proper packaging to meet the buyer’s requirement. The market exploration trip for the full delegation occurred during the first week of September.

Inspecting Fresh Fruits at Spitalfields Market

G rape Packaging Preparation for Latvian Market

Photo Series of Uzbek Table Grape Exports to Latvia

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The Uzbek trade delegation was warmly met and hosted upon arrival by the Uzbek Embassy in the UK. The first day of their program focused on retail outlets with site visits to small and medium sized grocery stores in London such as Waitrose, Whole Foods Market and Sainsbury’s. The delegates noted the smaller sized grocery stores had lower priced products compared to the medium to large supermarkets. It was also notable that some products, such as pomegranates and figs, were sold by the piece rather than by kilogram. This market information, through direct experience, emphasized the importance of targeting buyers and the emphasis on quality and uniformity down to the individual fruit.

The next day focused on the wholesale market with a site visit to New Spitalfields Market at the busiest time of their workday, 5 o’clock in the morning. The main suppliers of horticultural goods to the market are Spain, Italy, Algeria, Turkey, China and India, assuring the UK market a year-round supply of fruits and vegetables. New Spitalfields is the UK's leading horticultural market with wholesaler specialization in exotic fruits and vegetables resulting in the widest variety of produce of any European market.

The visit was timed to coincide with the “Specialty and Fine Food Fair,” which the group attended as part of the market exploration program. This fair provided an opportunity to meet with buyers, suppliers and service providers from across Europe to further enhance their understanding of the constantly evolving global market for horticultural produce. The trip concluded with a meeting on British market standards and certification, arranged by Uzbekistan’s UK Embassy during which AVC team members met with the British-based Wakefield Inspection Services, which has a representative office in Tashkent.

Inspecting Processed Produce at the “Specialty and

Fine Food Fair”

Delegation with the Uzbek Ambassador to the UK

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

a. Agricultural Universities.

Building capacity and refreshment trainings. The GOU has demonstrated it’s commitment to improving the higher education system and linking universities to private sector demand through Presidential Decrees and Cabinet Ministries Resolutions. The most recent resolution of the President of the Republic of Uzbekistan, “On measures for further development of the system of higher education” *(#2909, from April 20, 2017) was adopted to improve the system of higher education, revise the content of training in accordance with the priorities of socio-economic development of the country, and ensure higher education specialists are trained on par with international standards. The Decree particularly points to a “steady rise in the level and quality of professional skills of professors, their refreshment training, traineeship of pedagogical and scientific employees…” to achieve these goals. This decree reinforces AVC's approach to support agricultural university professors to attend refreshment training in leading foreign universities (Uzbek professors’ delegation to Latvia and Latvia Agricultural University’s professors exchange visit to Uzbekistan in 2016).

This spring, AVC supported (AVC-052) a senior lecturer from TSAU’s Department of Post-Harvest Storage and Primary Processing of Agricultural Products, Shavkat Umidov, to study the cold chain sector in India and its contribution to the fresh produce export industry. The refrigerated storage industry in Uzbekistan is rapidly developing, but cold stores are often considered isolated businesses and not part of a larger industry. Mr. Umidov incorporated his learning in India into his cold chain curriculum. This quarter, AVC assisted him to develop a student manual on the importance of cold chain during the storage of agricultural products. The draft manual was reviewed by the Dean of Horticulture of Andijan Agrarian Institute (AAI) and the Deputy Director of Mirzaev Institute, and their recommendations were incorporated. The manual was submitted to the department faculty and he university’s Educational Council and approved for publication. AVC will support publication and printing of the manual next quarter at the request of TSAU’s Rector. Mr. Umidov held a lecture and master class based on the information presented in the manual on September 7, 2017 which was attended by professors from all horticulture related departments of TSAU.

AVC also supported student capacity building through available summer courses. This summer, AVC identified a Latvian Agricultural University (LAU) course “Cycle of life - from tree seeds to high quality organic wood products” and encouraged partner agricultural university students to apply. This topic is extremely relevant for Uzbekistan as the country diversifies its economy and particularly its bio- economy. The importance of developing the forestry sector was emphasized by Presidential Decree “On the establishment of the State Committee of the republic of Uzbekistan on Forestry” on May 11, 2017 and the subsequent Cabinet of Ministers Resolution “On Measures for Further Improvement of the Forest Management System” dated July 19, 2017.

Two TSAU student applicants were selected for participation (I. Teshabaev and J. Kudratullaev). AVC cost shared this activity by supporting the participants’ international airfares while LAU waived the tuition fee and the students covered their own meals. The program curriculum covered forest breeding and reproduction, reforestation, wood processing and production of different wood products, and wood recycling. In a follow-up presentation at TSAU one participant remarked, “It is inspiring that Latvians are able to manage such large forests and produce high quality organic products from them, while preserving forest biodiversity. This experience can be applied to Uzbekistan’s efforts to produce organic walnuts, almond and pistachios in our forests.”

Uzbek students present country’s forest sector in Latvia

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Assistance in strengthening the material and technical base of agricultural universities. AVC’s partner agricultural universities identified a need for visual and practical teaching aids, particularly for demonstrating modern cold storage facilities and advanced storage technologies for fruits and vegetables. In response to this request, AVC partnered with TSAU to develop parameters and specifications for a cold store demo facility to be used for training and research of both undergraduate and postgraduate students. By the end of the quarter AVC released a tender and signed a contract for construction of a turnkey 20-ton cold storage demonstration facility on a TSAU identified training plot. Construction will begin next quarter. Based on lessons learned at TSAU, cold storage demo facilities will be replicated at both Andijan and Samarkand Agricultural institutes.

Establishment of Students Horticulture Value Chain Clubs in Agricultural Universities. Agricultural universities are improving curricula by incorporating modern research and innovative technologies into manuals and lectures including high density orchard management, in vitro micro propagation, modern methods of pest and disease identification and control, etc. With the support of AVC, agricultural universities are also introducing students to the horticultural value chain approach. In a traditional academic approach, the various segments along the value chain (ex., nursery, orchard, wholeseller, cold store, processing, distribution, retail, consumer, etc.) are considered separate and independent. The value chain approach requires a holistic appreciation of the entire chain and encourages students to consider relationships between the value chain segments and eventually the value chain as a whole.

The traditional approach considers only the “push from below” or “supply push” factors (i.e. the nursery pushes saplings that are easy or cost effective to propagate, producers sell produce that is easy and cost effective to produce and harvest, etc.). The value chain approach instead focuses on creating a “pull from above” or “demand pull,” in which consumer demand for products is amplified and guides the type, quality, and quantity of production throughout the value chain, messaging preferences from final consumer to initial input supplier. This concept reiterates a market economy’s main principle – the customer is king. The value chain approach supports all actors along the chain focusing on one goal, maximizing the value provided to the customer. This encourages better practices such as producers harvesting in the early morning to reduce field heat of the produce and ensures that high quality produce is supplied to the cold store.

Agricultural universities are incorporating the horticultural value chain concept and methodology into curricula, but the process of amending curricula is long and labor-intensive and requires an interdisciplinary approach that links adjacent departments, as university faculties are still structured around the various segments of the value chain. To introduce this concept more quickly, AVC proposed introducing Horticultural Value Chain Clubs at cooperating universities, where professors from various departments can conduct interdisciplinary value chain classes or lectures. This physical space would also be used for extra-curricular activities including those which unite the various horticultural students from different faculties interested in horticultural value chains. Through these student horticulture clubs, AVC can accelerate learning of new approaches and methodologies in the short term, while longer-term curricula amendment takes shape.

Throughout Q4 AVC introduced this concept to all three universities and MAWR. All agreed on the usefulness of the horticultural club space and also agreed on a cost-share with the universities. The universities will allocate and renovate a classroom and ensure stable utility supply while AVC will equip the classroom with needed furniture, ICT equipment, horticultural tools, testers and related information materials both in traditional and digital formats.

Student Summer Internships. To complement classroom and laboratory learning, AVC supports hands-on practical learning through student internships with private sector partners. AVC has an extensive base of private sector partners, facilities, and beneficiaries representing different segments of the horticultural value chain. During Q4, the traditional summer internship season, AVC assisted the three cooperating agricultural institutions to establish introductory summer internships with these partners and placed qualified students. AVC supported the placement of 462 students in summer internships, including 163 students from TSAU’s Storage and Primary Processing program, 156 students from Andijan Agrarian

University TSAU SAI AAI TOTAL Shares

Female 46 55 64 165 36%

Male 117 88 92 297 64%

TOTAL 163 143 156 462 100%

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Institute’s Fruit and Vegetable Production program, and 143 students from Samarkand Agrarian Institute’s Agro-engineering program. Greater than one-third of the internships were for female students with the breakdown by university presented in the table above.

b. Research Institutes.

AVC is continues to cooperate with Vegetable Research Institute (VRI) on tomato leaf miner monitoring and control trials for open fields and greenhouses through the end of the agricultural season next quarter. VRI will then analyze monitoring results and develop farmer recommendations. Activities conducted with Mirzaev are undertaken in collaboration with Component #1 and described in the component section above.

Students and professors TSAU, SAI and AAI (left to right) during educational - introductory internship at AVC project

partners’ sites

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5. Collaboration with other organizations

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

Multilateral

• International Finance Corporation (IFC) IFC visited AVC in mid-September with a multi-person team interested in learning more about project activities and experience to inform their on-going design of new financial products to support the horticultural sector in Uzbekistan.

• Asian Development Bank (ADB) AVC staff met with a multi-person team of private sector consultants from the Spanish group Mercasa in late-September tasked to develop a feasibility study to establish three horticultural wholesale markets in Uzbekistan. The three locales under study are Tashkent, Samarkand and Ferghana.

Bilateral

• Japan International Cooperation Agency (JICA) JICA visited AVC in late-September to request AVC’s opinions and experience with logistics centers in horticultural value chains as they had received a GOU request to finance such activities. AVC provided an overview of the horticultural sector and suggested an inventory of the existing private sector logistics centers to quantify existing capacity, experience and lessons learned prior to additional public sector investment.

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6. Women in Agriculture

During this quarter AVC staff specifically targeted female participants for inclusion in the following activities:

(1) Domestic University Internships for Students

Female students were highly encouraged to participate in the internship program linking agricultural students with AVC partner institutions in the horticultural sector. The program exceeded expectations with over one-third of the 462 students participating in the internship program being female.

(2) New Export Markets

AVC continues to work with the female head of the Dried Fruit, Vegetable and Nut department within one of the major exporters. During this quarter she was included in the delegation to visit the UK markets (AVC-066). Her company also provided test samples of dried fruits and vegetables which were sent to potential buyers in the Republic of Georgia. These samples were of such quality that the Georgian importer has invited her and other exporters to make a marketing trip to Georgia in early November.

(3) International Refresher Courses for Professors

In addition to student internships, AVC seeks refresher courses for Uzbek agricultural university professors to upgrade their knowledge base for subsequent inclusion in the classroom. During this quarter, AVC provided introductory and support letters to Latvian Agrarian University (LAU) to complement the application of a female Samarkand Agrarian Institute (SAI) professor seeking a stipend for refresher courses. The professor explicitly sought LAU due to the academic exchanges and linkages among LAU and the three Uzbek agricultural universities supported by AVC throughout FY2017 (AVC-046, AVC-054, & AVC-063).

(4) Female Trainers

AVC continues to seek qualified female trainers to reach more female entrepreneurs interested or engaged in the horticultural sector. One such partner who accompanied a group of trainees to Israel in June 2017 with AVC support shares her new knowledge with additional partners. The training in Israel was on “Innovative Technologies in Orchards and Vineyards” (AVC-059) and this female participant has provided trainings back in Uzbekistan in both the Ferghana Valley and Tashkent Region. In addition, she has attracted additional female entrepreneurs one of whom has applied for a USDA Cochran fellowship.

D. MONITORING AND EVALUATION

1. Monitoring and evaluation

AVC met or exceeded its FY2017 targets for 7 of the 10 indicators for which preliminary end-of-season data are available. The horticultural production, post-harvest and sale season follows a calendar basis rather than a FY schedule, and final figures will only become available at the end of calendar year 2017. Specifically, main crop groups such as apples, grapes, persimmons and pomegranates are still underway at this writing.

# Indicator 2016 2017

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Actual 2017

Target Q1 Q2 Q3 Q4 2017 %

Realized

1 Income % na 20%

2 Yield % na 20%

3 Export Value % na 20%

4 Consulting # 5 10 3 9 11 12 120%

5 Hectares ha 2,173 4,000 403 2,576 3,516 4,311 108%

6 Investment $ 1,016,000 2,000,000 2,216,000 2,294,000 2,444,000 122%

7 Adopting # 4,000 1,457 1,457 2,800 4,067 102%

8 Improved Ed. # 2 3 1 3 3 3 100%

9 Organizations # 50 100 22 72 93 102 102%

10 Training hrs. 9,693 15,000 2,200 12,902 15,048 16,312 109%

Indicators 1, 2 and 3. Indicator data on income yield and export values are collected annually and will only become available at the end of the present horticultural production and marketing season. Apple, grape, persimmon and pomegranate production, post-harvest handling and sale, to both domestic and international markets, are still underway as of this writing.

Indicator 4. The number of private sector service providers participating in AVC implementation increased by only one this quarter as the project focused on provision of in-season training through existing service providers over development of new service providers.

Indicator 5. The hectares under improved technologies increased this quarter mainly due to the adoption of new techniques in grape vineyards, especially in the new provinces and districts in which AVC expanded this year.

Indicator 6. The value of investments continues to be driven mostly by new investments in cold storage capacity by AVC partners.

Indicator 7. The continued growth in the number of partners adopting best practices represents mostly participants from the new districts and provinces that had AVC trainings in this season.

Indicator 8. AVC now has close and direct relationships with all three Uzbek agricultural universities.

Indicator 9. The number of organizations assisted grew this quarter mostly due to contributions by Component 2 (Post-harvest) for new partner cold stores and packaging companies and Component 3 (Marketing) for supermarkets, processors (dried and juice), and exporters.

Indicator 10. The cumulative person-hours of training increased due to the series of introductory trainings in the new districts and provinces.

2. Communications and Outreach

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AVC has achieved significant results in social media. The project worked closely with its partner, “Bog`dorchilik ilmi” (Horticultural Science in Uzbek) group on Facebook, which started independently and organically as a social media resource for agricultural practitioners. AVC supported the group with content feeds and promotion, resulting in the group gaining unprecedented popularity among Uzbek internet users (netizens), exceeding 10,000 followers. As the group gathers more members, it gathers more learners and teachers who answer questions and provide insight to fellow practitioners. This has reduced the burden on the administrator to monitor the group and respond to each and every post.

Based on Facebook data, AVC has access to statistics including follower growth, level of engagement, and member details. With AVC support, the Facebook group gained 1,700 new members this quarter, for an average of 600 new members each month compared to 200-300 per month in previous quarters. More questions and answers were posted, meaning a higher level of engagement among members/followers. On average the group received 7,000 posts, comments and reactions per month.

In July, the Bogdorchilik administrator requested support from AVC to find a solution to old posts being lost which were being automatically deleted by Facebook after two years. AVC staff researched the issue and suggested he start his own channel where he will post only his content and share it within the group. AVC also worked with this local partner to create a MEVA (fruit in Uzbek) video blog (MEVA vblog) series.

AVC continued its program to produce DIY videos for value chain actors. Twenty-four (24) training videos were produced and uploaded, representing a 60% increase in videos produced in previous quarters. Viewership tripled and the number of permanent followers doubled. AVC’s YouTube followers and viewership grew steadily this quarter with July marking the peak period. Based on requests from Facebook group members, AVC duplicated the YouTube channel posts on mover.uz, an Uzbek version of YouTube, to provide more internet users in Uzbekistan access to the training videos. Note that videos posted to mover.uz do not charge against Internet access charges when the user is physically in Uzbekistan.

AVC developed new social media outreach strategies based on the uptick in popularity of smartphones among users. In 2017, 80% of the content consumed by Uzbek “netizens” was consumed by smartphone users, affecting how users access and interact with information. Instant messaging applications have also become widely used among Uzbeks. AVC supported the Bogrorchilik Facebook group administrator to pursue this opportunity to increase traffic to his group and channel. With ICT support from AVC the Bogdorchilik administrator launched a Telegram channel in July, in parallel to the MEVA vblog. The content includes brief technical guidance on good agricultural practices, information on pest and disease control, links to DIY video trainings produced by AVC, etc. Thanks to growing internet penetration (50% of the Uzbek population) and popularization of smartphones, the IM channel took off, and in just three months it gained close to 900 followers with 50-60 new adherents each week.

New IM app channel for Bogdorchilik group audience

Facebook statistics.

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AVC staff began to work with Bogdorchilik administrator to launch his own website to host content from multiple platforms (ex., text, photo, video, etc.) and advertise input supplier services and products. By consolidating information from the various platforms in a website users will obtain one-stop effective information and reach needed service providers. The draft website’s address is presently bogdorchilik.uz and remains under construction by the end of the quarter. At present it contains a total of 8 main menus which are crop based (i.e., grape, cherry, apple, walnuts, apricot, peaches, pomegranate, and plums) with planned sub-menus containing information on seasonal value chain stages from planting to sales. Based on subsequent content traffic data AVC will support the development of additional sub-menus.

MEVA video blog – channel for content promotion.

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E. ENVIRONMENTAL COMPLIANCE

1. Monitoring

AVC’s Environmental Compliance Officer reviewed the procurement specifications and designs for the Cold Store demonstration facility at TSAU and determined that the facility and its construction are compliant with USAID’s and Uzbekistan’s environmental compliance regulations.

Additionally, AVC completed the following activities in Q4 that were monitored by the Environmental Compliance Officer to ensure compliance with USAID’s and Uzbekistan’s environmental rules and regulations and where environmentally friendly practices were recommended and addressed.

Specialty and Fine Food Fair. A group of Uzbek exporters visited the “Specialty and Fine Food Fair” in London to meet with international buyers. As a part of the program, the Uzbek delegation visited the wholesale market where they observed improved and hygienically clean packaging techniques for various fresh produce. The group also met with British food inspection actors in both the public and private sector to understand food quality standards practiced in the UK.

Peach and Grape Value Chain training program. A group of growers and cold storage owners visited selected cold storage facilities and fields in the Fergana Valley to observe improved production and postharvest practices. AVC’s Environmental Officer presented the proper application and importance of sulfur pads during and after the storage of grapes and the potential effects on taste and quality. GCCA’s Cold Chain Advisor spoke about the importance of maintaining the cold chain throughout the value chain to reduce postharvest loss.

Consultation to new cold storage owners. AVC and GCCA supported the layout and design of a new 100ton cold storage facility in Kuvasay District, Fergana Province, providing guidance on good postharvest and food safety practices and worker safety during the construction process. AVC’s Environmental Officer presented major food safety concerns to the farmer and provided information on environmental rules and regulations. GCCA’s cold chain consultant instructed the farmer on proper disinfection practices of the cold storage before bringing in new fresh produce.

Apple Orchard NEP. An apple NEP was organized in Bakhmal District, Jizzakh Province for growers and cold storage owners. AVC’s Component #1 team leader instructed participants in safety rules and proper protective clothing when handling chemicals. AVC/GCCA spoke about physiological disorders of apple during storage and focused on reduction of postharvest losses.

Grocery chain consultation. The biggest grocery chain in the country Korzinka.uz was linked with large growers and cold storage owners in Fergana and Samarkand to supply Korzinka.uz with fresh produce. One of Korzinka.uz’s requirements is superior quality, hygienically safe production and quality packaging to reduce bruising and postharvest losses.

2. Mitigation

AVC promotes environmentally friendly agro technologies and techniques to mitigate possible environmental and socially adverse impacts of agricultural activities. The proper use of agrochemicals as a means for pest and disease control in orchards is always on the project agenda. The basis for the mitigation of potential negative environmental impacts of agrochemical use is the Pesticide Evaluation Report and Safe Use Action Plan (PERSUAP).

3. Issues

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