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Prepared for review by the United States Agency for International Development under USAID Contract No. AID-114-C-13-00002, Restoring Efficiency to Agriculture Production (REAP) Activity in Georgia implemented by CNFA RESTORING EFFICIENCY TO AGRICULTURE PRODUCTION (REAP) ACTIVITY IN GEORGIA Annual Progress Report Year 3 October 1, 2015-September 30, 2016
Transcript of RESTORING EFFICIENCY TO AGRICULTURE Year 1. …pdf.usaid.gov/pdf_docs/PA00N231.pdf · ABL...
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Prepared for review by the United States Agency for International Development under USAID Contract No. AID-114-C-13-00002,
Restoring Efficiency to Agriculture Production (REAP) Activity in Georgia implemented by CNFA
Quarterly Progress Report
Year 1. Quarter 3: April 1, 2014-June 30, 2014
RESTORING EFFICIENCY TO AGRICULTURE
PRODUCTION (REAP) ACTIVITY IN GEORGIA
Annual Progress Report
Year 3 October 1, 2015-September 30, 2016
Year 1. September 27, 2013-September 26, 2014
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Restoring Efficiency to Agriculture Production (REAP) Activity in Georgia
Annual Progress Report
October 1, 2015- September 30, 2016
USAID Contract
AID-114-C-13-00002
Implemented by CNFA
Submitted to:
USAID/Caucasus
Ms. Shamenna Gall, COR
Submitted on October 31, 2016
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Contents
Acronyms ...................................................................................................................................................... 6
Executive Summary ....................................................................................................................................... 8
Summary of Project Year 3 Achievements .................................................................................................. 10
Operations Report ...................................................................................................................................... 11
Operations Facilities and Equipment ...................................................................................................... 11
Staffing: ................................................................................................................................................... 11
International Short-Term Technical Assistance (STTA) ........................................................................... 12
Document and Deliverables Submission: ............................................................................................... 12
Component 1: SME Development in the Agriculture Sector ...................................................................... 13
Grant Cost-Share and Procurement .................................................................................................... 14
Grant Monitoring ................................................................................................................................ 15
Grantee Participation in Study Tours, Trade Fairs and Learning Exchanges ...................................... 15
REAP’s FSCs Participate in Bursa Agriculture and Adana Trade Fairs in Turkey, 2015 ....................... 15
REAP Grantee Participation in Fruit Logistica 2016 ............................................................................ 16
Zoreti Ltd’s Participation in Cochran Fellowship program 2016 ......................................................... 16
MTP Ltd’s Participation in Potato Study Tour ..................................................................................... 17
REAP Study Tour to Serbia .................................................................................................................. 17
USAID/Ethiopia Study Tour to Georgia ............................................................................................... 17
REAP Summit ....................................................................................................................................... 18
Component 2: Technical Assistance Program ............................................................................................. 18
Food Safety and Quality Standards ..................................................................................................... 19
Initial Assessment (or GAP Analysis) of Compliance with Food Safety Requirements for Food
Producers ............................................................................................................................................ 19
Cost-shared Individual Food Safety Certifications .............................................................................. 20
Food Safety Training Courses .............................................................................................................. 21
Business Management and Marketing ............................................................................................... 23
Marketing ............................................................................................................................................ 23
Business Management ........................................................................................................................ 25
Agriculture Sector Assessments .............................................................................................................. 26
Domestic Market Assessment............................................................................................................. 26
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Niche Market Analysis......................................................................................................................... 26
Supply Chain Management ................................................................................................................. 27
Improved Agricultural Practices and New Technologies ........................................................................ 27
Equipment and Infrastructure Development...................................................................................... 27
Mushroom and Mushroom Compost Production Technologies ........................................................ 28
Greenhouse Strawberry Production ................................................................................................... 28
Vegetable Production Technologies ................................................................................................... 28
Cheese Making Technologies .............................................................................................................. 28
Modern Veterinary Practices .............................................................................................................. 29
Improved Cold Storage Management ................................................................................................. 29
Demonstration Plots Development and Farmer Field Days ............................................................... 30
PERSUAP Training for FSCs .................................................................................................................. 31
Mechanization Trainings for FSCs/MSCs ............................................................................................. 31
Collaboration with Stakeholders and Private Sector Partners ................................................................... 31
APMA Technical Assistance Program ...................................................................................................... 31
PUM ........................................................................................................................................................ 32
MASHAV .................................................................................................................................................. 32
Entrepreneurship Development Agency of Ministry of Economic and Sustainable Development ........ 32
NFA .......................................................................................................................................................... 32
USAID/SEAS ............................................................................................................................................. 33
State Ministry of Diaspora Issues ............................................................................................................ 33
Supporting Hazelnut Sector with AgriGeorgia and GHGA ...................................................................... 33
Hazelnut Financing Conference .......................................................................................................... 33
Access to Finance Training to Hazelnut Growers ................................................................................ 33
Input Credit ......................................................................................................................................... 34
Agronomist Training ............................................................................................................................ 34
Soils Testing ......................................................................................................................................... 34
Grower Group Development .............................................................................................................. 35
Cooperation with Nergeta ...................................................................................................................... 35
Enhanced Pool of REAP Partner BSP’s .................................................................................................... 35
Cross Cutting Activities ............................................................................................................................... 35
Monitoring and Evaluation ..................................................................................................................... 35
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Gender and Youth ................................................................................................................................... 37
Capacity Building ................................................................................................................................. 37
Leadership Development .................................................................................................................... 38
Networking and Business Opportunities ............................................................................................ 38
Raising the visibility of women-owned agribusiness and REAP .......................................................... 39
Access to Finance .................................................................................................................................... 41
Bank Republic ...................................................................................................................................... 41
Enterprise Resource Planning (ERP) System ....................................................................................... 41
Portfolio Management System ........................................................................................................... 42
Financial Management Training ......................................................................................................... 42
Environmental Management and Monitoring ........................................................................................ 42
Workforce Development ........................................................................................................................ 43
Program Outreach and Communications ................................................................................................... 44
Project openings and site visits ............................................................................................................... 45
REAP Video Production ........................................................................................................................... 48
REAP Grantee Short Film Production ...................................................................................................... 49
REAP Grantees and Supported Enterprises in the News ........................................................................ 49
Key Constraints: .......................................................................................................................................... 50
Financial and Expenditure Summary: ......................................................................................................... 50
Annex 1: REAP Organizational Chart ........................................................................................................... 51
Annex 2: REAP Grantee Map ...................................................................................................................... 52
Annex 3: REAP Non-Grantee Map .............................................................................................................. 53
Annex 4: Brief Characteristics of Targeted Demonstration Plots and Key Outcomes ................................ 54
Annex 5: Monitoring and Evaluation .......................................................................................................... 57
M&E ........................................................................................................................................................ 57
Cost Benefit Analysis (CBA) ..................................................................................................................... 69
Non-Grantee Technical Assistance Impact Methodology ...................................................................... 75
Annex 6: HerStories: ................................................................................................................................... 90
Annex 7: List of REAP Interns in the PY3 ..................................................................................................... 92
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Acronyms
ABL Administrative Border Line APMA Agriculture Projects Management Agency BDS Business Development Services BRC FS 7 British Retail Consortium Food Safety 7 BSP Business Service Provider C1 Component One C2 Component Two CBA Cost Benefit Analysis CDCS Country Development and Cooperation Strategy CEM Certified Export Manager COP Chief of Party COR Contracting Officer Representative DCA Development Credit Authority DCFTA Deep and Comprehensive Free Trade Agreement EDA Export Development Association EMMP Environmental Mitigation and Monitoring Plan ENPARD European Neighborhood Programme for Agriculture and Rural Development EOI Expression of Interest ERC Environmental Review Checklist ERP Enterprise Resource Planning EU European Union FA Foreign Assistance FSC Farm Service Center FSSC Food Safety System Certification FTF Feed the Future GAP Good Agricultural Practices GIPA Georgian Institute of Public Affairs GIS Geographic Information Systems GoG Government of Georgia HACCP Hazard Analysis and Critical Control Points HERA Her Equality Rights, and Autonomy HSE Health, Safety and Environment ICC Information and Consulting Centre IFS International Featured Standards ISO International Organization for Standardization LOE Level of Effort LOP Life of Project MASHAV Israel’s Agency for International Development Cooperation M&E Monitoring & Evaluation MOA Ministry of Agriculture MOESD Ministry of Economy and Sustainable Development MOU Memorandum of Understanding MSC Machinery Service Center MSME Micro Small and Medium Enterprises PERSUAP Pesticide Evaluation Report and Safer Use Action Plan
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PMP Performance Monitoring Plan PPR Performance Plan and Report PUM Programma Uitzending Managers (Dutch) -Manager Deployment Program PY1 Project Year One PY2 Project Year Two Q1 Quarter One Q2 Quarter Two Q3 Quarter Three Q4 Quarter Four QA Quality Assurance QPR Quarterly Progress Report REAP Restoring Efficiency to Agriculture Production RFA Request for Applications RFQ Request for Quotations SEAS Strengthening Extension and Advisory Services Activity SME Small and Medium Enterprises SRCA Scientific-Research Center of Agriculture STTA Short Term Technical Assistance TA Technical Assistance TOC Terms of Cooperation VET Vocational Education and Training USAID United States Agency for International Development USG United States Government WFLO World Food Logistics Organization
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Executive Summary
Year three of the REAP project marks a transition point from grant development to the provision of
technical assistance. Over three years, REAP’s method has been proven to be effective and has resulted
in the identification and grant-funded support of 70 agribusinesses. With all 70 grantees identified and
mobilized, REAP must demonstrate an equal ability to implement its demand-driven technical assistance
program. REAP’s activities in the latter half of PY3 and those proposed in REAP’s PY4 Work Plan represent
the logical continuation of grantee support. It is now through REAP’s technical assistance program that
REAP will achieve its ultimate goal of 70 thriving and job creating agribusinesses.
To launch this new phase, REAP dedicated more time and resources to working closely with grantee and
non-grantee enterprises to overcome their individual micro challenges as well as global problems plaguing
Georgia’s agriculture including: low productive land, absence of modern technologies, under developed
postharvest handling practices and infrastructure, and unstructured supply chains. REAP’s activities in PY4
and for the remainder of REAP will focus on supporting Georgian agribusinesses to overcome these
challenges.
In PY3, REAP’s demonstration plot program implemented with grantee FSCs continued to be an effective
tool for disseminating knowledge and introducing modern technologies among farming communities. In
PY3, REAP’s grantees trained more than 90,000 individuals, of which more than 10,000 received hands-
on practical training through these demonstration plots. Further, a joint demonstration plot established
between multi-national input supplier Syngenta and REAP grantee FSC AgroKartli demonstrates the
reliability of REAP’s grantees and encourages future collaboration with other FSCs. In PY4, REAP intends
to build on this relationship and expand its collaboration with Syngenta and other multi-national
companies. Based on the success of and utilizing lessons learned from REAP’s demonstration plot program
to train farmers, REAP replicated its demonstration plot program to establish a model cold store and
organized a series of trainings for REAP grantees, other operators, and ICC agents on harvesting and
storing best practices. In PY4, REAP plans to expand this cold store model program and conduct a series
of trainings focused on mandarins and peaches, two major crops in West and East Georgia.
By signing the Deep and Comprehensive Free Trade Area (DCFTA) Agreement, Georgia committed itself
to food safety and quality standards throughout the Georgian food processing industry. As an agribusiness
development project, it is natural for REAP to be a leading technical resource to overcome this challenge.
To maximize impact, REAP established Terms of Cooperation with the Agricultural Projects’ Management
Agency (APMA) to provide technical assistance to implement internationally recognized standards on a
cost-shared basis. In PY3, within the frame of this collaboration, nine agribusinesses began
implementation of ISO standards. These standards will result in increased sales and increased export
potential for DCFTA compliant companies. Due to REAP’s strong performance in implementing this joint
program, APMA decided to extend and expand its agreement with REAP and include the beneficiaries of
their Plant the Future and Georgian Tea Rehabilitation Programs. This unique partnership should be
considered a model for combining donor, state agency and private sector resources to further grow
Georgia’s agriculture sector.
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In PY3, REAP continued to demonstrate its ability to address challenges faced by the private sector, and
to serve as a reliable partner for public, international, and other donor-funded projects. In PY3, REAP
expanded its collaboration with the Ministry of Economy and Sustainable Development (MOESD) and the
MOESD’s export-promotion agency to support REAP and APMA beneficiaries market their products
abroad. Throughout PY4, REAP and APMA supported enterprises will participate in MOESD financed trade
missions and fairs to increase Georgia’s exports to the EU. REAP also established connection with PUM,
the Netherlands Manager Deployment Program, and was able to bring highly-qualified Dutch consultants
to Georgia to share their knowledge and European best practices at a minimal cost to REAP. And through
a cooperative training program with USAID/SEAS, REAP was able to train 118 individuals from ICCs on
chapters of the DCFTA relevant to primary production. These trained individual have gone on to provide
consultancies to more than 1,400 farmers and 70 agribusinesses in DCFTA principles.
Aside from utilizing demand-driven technical assistance, REAP seeks to promote and capture the
dynamism amongst its portfolio companies to provide sustainable support and advance entrepreneurial
thinking. During PY3, REAP organized a summit of all 70 grantees to foster experience sharing,
collaboration and market linkages. As predicated, REAP’s grantees seized on the opportunity to work with
and support each other with cold storage enterprises in Kakheti agreeing to purchase packaging materials
produced by REAP’s grantee AgroExport in Adjara, while women-owned grantee Gile Cooperative is
receiving technical advice from Geoflower’s technologists on fruit drying practices. Based on positive
feedback and results, REAP is considering organizing this summit on an annual basis.
During PY3, REAP continued its robust and successful internship program, attracting more than 500
applicants over two periods. During their internship, these young professionals develop their technical
learning from industry experts. Through the first three years, REAP has engaged 72 interns, resulting in an
impressive 39 employments. All of these young professionals are beginning their new careers with
improved knowledge and experience from working on the REAP project.
Throughout PY3, REAP observed a positive transition in enterprises’ attitude towards technical assistance.
Enterprises are now more certain in their request for technical assistance and having seen the benefits of
REAP’s TA program, enterprises are ready to cost-share individual consultancies. This is a breakthrough in
awareness of Georgian agribusinesses and will result in an increased demand for qualified fee-based
consultancies. This will stimulate the growth and advancement of business development services in the
country which will ultimately play a significant role in sustainably developing Georgia’s agriculture sector.
REAP is pleased to report that at the end of PY3, the majority of its contractual targets have been met.
Early accomplishment provides REAP the flexibility to dedicate future years to fully support individual
grantees and to focus on bottom line business achievements of both grantee and non-grantee enterprises.
REAP will continue to dedicate efforts to develop inclusive supply chains that benefit additional
smallholders and improve their access to more stable and profitable markets. REAP looks forward to the
benefits the Georgian agriculture sector will enjoy throughout Year Four of project implementation.
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Summary of Project Year 3 Achievements
SME Development in the Agriculture SectorComponent 1
•$6M in grant funding obligated across 70 Georgian enterprises, leveraging more than $19M in private sector investment;
•$4.9M in new equipment installed. 43 grant projects fully procured with 22 in underway;
•$25.2M in new gross sales by REAP-assisted agribusinesses;
•65,000 farmers access improved inputs from REAP-assisted companies;
•More than $3M in cash markets provided to 2,116 farmers by REAP-assisted PHHPs; and,
•487 new rural jobs created.
Technical Assistance ProgramComponent 2
•TA provided to more than 93,000 non-grantee agribusinesses and individuals;
•2 joint technical assistance programs launced with MoA’s APMA;
•Joint technical assistance program implemented with NFA, training 110 employees of slaughterhouses in HACCP principles;
•5 agribusinesses supported to become ISO 22000 certified;
•19 grantee and non-grantee agribusinesses assisted to conduct gap analyses to comply with HACCP/ISO 22000 standard requirements;
•7 grantee and non-grantee agribusinesses assisted to upgrade and/or introduce modern production technologies;
•118 ICC extension officers trained in DCFTA principles, benefiting more than 1,000 smallholders;
•11 farmer field days held on REAP-supported demonstration plots training 328 farmers, 125 students and 116 ICC officers in modern agriculture technologies and practices;
•14 APMA-supported agribusinesses trained in HACCP/ISO 22000 standard requirements; and,
•9 grantee enterprises assisted to develop modern marketing materials and 9 grantee FSCs supported to develop corporate websites.
Gender, Youth and Access to FinanceCross Cutting
•Capacity building, leadership development and mentoring programs launched for 40 women-owned agribusnesses under REAP's Gender Platform;
•43 students of Agricultural University graduate from the Future Leaders Hazelnut Program organized by REAP, AgriGeorgia and GHGA;
•72 interns graduate REAP's internship program, resulting in 39 job placements;
•23 APMA-supported agribusinesses assisted to upgrade financial management skills;
•More than $1.8M in new financing facilitated to REAP grantees; and,
•9M GEL in new agriculture financing underwritten by Bank Republic under REAP developed agriculture lending strategy.
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Operations Report
Operations Facilities and Equipment
REAP continues to maintain three offices located in Tbilisi, Kutaisi and Telavi. The Tbilisi office serves as
the main project office, while the regional offices in Kutaisi and Telavi house regional coordinators and
interns who are responsible for monitoring the progress of grantees and providing logistical support for
all activities REAP is conducting in their designated regions.
Staffing:
Long-Term Staff
At the end of PY2, two of REAP’s key personnel, the Director of Administration and Finance and
Component 2 Lead, left REAP to pursue new opportunities. REAP made filling these positions swiftly a top
priority and early in Q1 of PY3, REAP conducted interviews and identified candidates who were
subsequently approved by USAID. To fill the position of Director of Administration and Finance, REAP
promoted the Grants Manager, a development professional who previously filled a similar role on large
USAID programs and to take responsibility for REAP’s technical assistance activities, REAP recruited an
experienced agriculture professional, David Shervashidze to serve as the Component 2 lead. A former
Minister of Agriculture, Mr. Shervashidze brings more than 20 years of private and public sector
experience in the agriculture sector.
Chief of Party Transition Plan
As envisioned in REAP’s technical proposal and in line with USAID forward, REAP’s expatriate Chief of Party
(COP) departed the project in Q3 of PY3 and REAP’s local Deputy Chief of Party (DCOP) assumed the role
of COP. Planning for this transition began early in PY3 with the then DCOP taking on increased
responsibilities and the expatriate COP serving as a key advisor. With REAP’s grant funds fully committed
and the conversion of the program to technical assistance and grant monitoring, REAP was well positioned
for this transition. To provide continued support to the new COP during this change and in
implementation, REAP and USAID extended the assignment of the expatriate Field Program Officer
through the life of the project. Due to changes in the original scope and to better align with new
responsibilities the title of the expatriate was changed to Program Manager.
Change in Non-Key Personnel Staff Responsibilities
To reflect the program’s shift from grant making to technical assistance and grant monitoring, REAP
redrafted scopes of work for non-key personnel. Following discussions with the Contracting Officer
Representative (COR), REAP transitioned staff’s responsibilities, placing an increased emphasis on
technical assistance delivery and monitoring. In addition, with the completion of REAP’s grant program,
in Q2 of the PY3, REAP merged the positions of Grants Manager and Procurement Specialist into a new
position of Grants and Procurement Manager. By the end of PY3, REAP revised its Organizational Chart
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and presented it in the PY4 work plan that consequently has been approved by USAID. An updated
organizational chart is included as Annex 1 in this document.
International Short-Term Technical Assistance (STTA)
To augment REAP’s field implementation and provide targeted technical assistance, in PY3 REAP utilized
eight international short-term technical assistance assignments. These assignments supported REAP
across all aspects of implementation, including access to finance, monitoring and evaluation, and other
technical areas to enhance REAP’s interventions. Below is a table summarizing REAP’s international STTA
assignments in PY3.
Assignment Project Quarter Technical Area
Implementation of agriculture lending strategy by Bank republic
Quarter 1 Access to Finance
Cold storage operations assessment Quarter 2
Component 2: Technical Assistance Program
Assessment of data collection and analysis for the CBA in REAP
Quarter 2 Monitoring and Evaluation
A market oriented approach to meeting local demand for agricultural products in Georgia
Quarter 2 Component 2: Technical Assistance Program
Agriculture niche market analysis for Georgia
Trips in Quarters 2&3
Component 2: Technical Assistance Program
REAP Project Year 3 Mid-Year Implementation Review
Quarter 3 Project Management
Supply Chain Management Quarter 4
Component 2: Technical Assistance Program
Support in PY4 work plan development
Quarter 4 Project Management
Document and Deliverables Submission:
Over the course of PY3’s implementation, REAP submitted a number of documents to USAID including
technical assistance reports and Terms of Cooperation (ToC) that define the collaborative framework with
the project’s main counterparts. Included among the ToCs was a signed agreement with the Ministry of
Agriculture’s Agriculture Project’s Management Agency (APMA) to launch a joint program that provides
cost-shared consultancies for processors to implement ISO 22000 standards. Below is a table summarizing
documents submitted to USAID over the PY3 and their current status.
Document USAID Submission
Submission Date USAID Approval
Project Work Plans
Year 4 Work Plan Submitted September 30, 2016 Approved
Project Reports
Year 2 Annual Report Submitted October 30, 2015 Approved
Progress Reports
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Y3Q1 Progress Report Submitted January 14, 2016 Approved
Y3Q2 Progress Report Submitted April 15, 2016 Approved
Y3Q3 Progress Report Submitted July 15, 2016 Approved
TOCs
TOC with APMA in Technical Assistance Area Submitted December 11, 2015 Approved
TOC with National Food Agency Submitted February 29, 2016 Approved
TOC with Nergeta Submitted January 29, 2016 Approved
TOC with Agrarian University Submitted March 2, 2016 Approved
TOC with SCO/DANIDA funded RED Program Submitted June 8, 2016 Approved
TOC with APMA in TA Area for Plant the Future and Tea Rehabilitation Programs
Submitted July 22, 2016 Approved
Short-Term Technical Assistance Reports
Implementation of Agriculture Lending Strategy by Bank Republic Submitted
February 20, 2016 Approved
A Market Oriented Approach to Meeting Local Demand for Agricultural Products in Georgia
Submitted March 31, 2016 Approved
Cold Storage Operations Assessment Submitted March 31, 2016 Approved
Assessment of the Data Collection and Analysis for CBA in REAP
Submitted April 15, 2016 Approved
Agriculture Niche Market Analysis for Georgia Submitted September 16, 2016 Pending
Identification of training needs of farm service centers
Submitted September 30, 2016 Approved
Supply Chain Management of Agricultural Products in Georgia
Submitted September 30, 2016 Pending
Component 1: SME Development in the Agriculture Sector
In the beginning of PY3, Component 1 activities focused on the development and submission of the final
12 grant proposals from Rounds 005A and 005B to USAID. The purpose of RFA005A was to join REAP’s
and APMA’s efforts in launching successful agricultural enterprises. REAP supported APMA to fund high
potential start-up businesses to increase the level of employment and rural incomes. This RFA was crucial
in launching new enterprises by supplying them with modern equipment and offering them tailored
technical assistance. The potential for future TA for APMA funded businesses in management and
operational areas lowered the risk and helped financial institutions participating in APMA Cheap Loan
Program to make the necessary funding decisions to allow these grant projects to go through. RFA005B
focused on investing in processing enterprises that serve as important cash markets for smallholder
farmers. Through these rounds, REAP supported grantees to introduce new technologies in post-harvest
practices, upgrade their business activities with modern technologies and to meet increasing demands of
local and international consumers on high quality products. These grantees will in turn strengthen
smallholders’ livelihoods through improving agricultural production, facilitating access to new markets
and transitioning rural households into commercially oriented agricultural enterprises.
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By the end of Q2 of PY3, REAP fully committed its $6 million grant portfolio. To complete its grant program,
REAP had five rounds of grant applications, announcing six calls for proposals. All six calls were
accompanied with an outreach campaign informing agribusinesses about the terms and conditions of
REAP’s grant program. REAP disbursed its grant portfolio among 70 agribusinesses, leveraging at least
$17.3M in private investment. This 75% leverage ratio exceeds REAP’s contractual target of 70% and
serves as a testament to REAP’s ability to attract private sector investment into the agriculture sector.
Below is a summary table of submitted and approved grant applications by type. A map of REAP’s grantees
may be found in Annex 2 of this document.
With REAP’s $6M grant fund fully committed, REAP’s C1 activities in PY3 mainly focused on procuring
proper equipment for grantees and on monitoring their implementation against agreed upon targets and
milestones. As of the end of PY3, more than 70% have completed their agreed upon construction
milestones. REAP has completed procurement for 43 grantees with procurement on-going for 22
companies. The accelerated progress of REAP’s grant program will enable the majority of grantees to be
operational for the remaining 2 years of REAP, amplifying REAP’s impact, increasing availability of
technical assistance and improving sustainability.
Grant Cost-Share and Procurement
By the end of the PY3, REAP's grantees spent more than $19M through cost-sharing activities, exceeding
their cost-share commitment by 10%. To date, REAP has procured more than $4.9M, or 81.7%, of its total
grant fund. 43 of REAP’s grantees are fully procured, 22 are undergoing procurement and by the end of
PY4, REAP’s remaining 5 grantees will be fully procured and operational.
Table below illustrates cost-share and grant funds disbursed by priority direction:
FSC/MSC PHHP PP ISP Total
Cost-Share Committed $8,806,602 $8,209,549 $159,350 $151,585 $17,327,086
Cost-Share Spent $11,881,740 $7,142,352 $159,842 $65,527 $19,249,461
Grant Funds Committed $3,246,380 $2,634,325 $55,050 $64,245 $6,000,000
Grant Funds Disbursed $2,601,419 $2,259,591 $40,354 $64,180 $4,965,544
Grant Type Submitted Approved
PP 46 6
FSCs/MSCs 60 29
ISP 4 1
PHHP 121 34
Total 231 70
0
50
100
150
PP FSCs/MSCs ISP PHHP
Submitted and Approved Applications by Grant Type
Submitted Approved
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Grant Monitoring
All grant projects have assigned activity managers who, in collaboration with Regional Coordinators based
in Tbilisi, Telavi, Guria, and Kutaisi, are responsible for overseeing the implementation of these grant
projects. Information regarding cost share, commercial finance, sales and purchases of raw materials, as
well as information on new jobs created is regularly collected and validated by REAP’s M&E team during
their site visits. Throughout PY3, REAP’s grantees created 487 new rural jobs, generated more than
$25.2M in new sales, provided trainings to more than 92,000 farmers, invested more than $9 in the
agriculture sector. These numbers will continue to grow as more of REAP grantee launch their operations
in upcoming years. Below are some highlights from cold storage grantees in PY3 and REAP’s full progress
against its contractual indicators is presented in the Monitoring and Evaluation Section of this report.
Georgian Fruit Company Cooperative: This newly established cold storage enterprise procured more than
70,967 kg of apples and plums from 195 local farmers, providing more than 100,000 GEL in income to
these families. To operate the cold store GFC Cooperative created 14 new jobs, including six for women.
Iveria Ltd.: Located a few kilometers from the administrative boundary line with South Ossetia, this cold
store provides important economic opportunities for these vulnerable communities. In PY3, Iveria
purchased 207,000 kg of peaches, plums, cornel and apples from 179 local farmers, providing 236,900
GEL in income. In addition, this cold storage facility has created 22 jobs, including 10 for women.
GFC Ltd.: As one of the leading buyers of fresh fruit in Georgia, GFC Ltd. cooperated with REAP on
expanding their cold storage facility to increase their capacity to purchase more products from farmers.
This year, GFC Ltd. purchased an additional 401,700 kg of fruit from 242 new farmers, providing more
than 400,000 in new income.
SP Marina Akolashvili: Operating a women-owned start-up cold storage facility, Marina Akolashvili
finalized construction in PY3 and was able to procure more than 63,000 kg of peaches and nectarines from
70 local farmers. The majority of these peaches and nectarines were packaged and exported to Ukraine,
Azerbaijan, and Russia.
Grantee Participation in Study Tours, Trade Fairs and Learning Exchanges
To broaden REAP grantees knowledge of new technologies and to introduce them to potential trade
partners, REAP organized a series of study tours, trade fairs and learning exchanges in PY3. Designed to
expose Georgian agribusiness owners to emerging agriculture trends, these study tours, trade fairs and
exchanges directly led to more than $600,000 in new equipment purchases, including the establishment
of three new business lines in Georgia: sublimated fruit and vegetables, de-pitted dried fruit and cold-
press juices.
REAP’s FSCs Participate in Bursa Agriculture and Adana Trade Fairs in Turkey, 2015
In October and November 2015, fourteen REAP supported FSC representatives attended the Bursa and
Adana Agriculture 2015 Trade Fairs organized by TUYAP in Turkey.
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The Bursa and Adana Agriculture Trade Fairs allowed participants to receive an overview of the latest
innovations and sector trends and to exchange views with experts from the industry. Participation in these
exhibitions helped REAP supported FSC/MSCs to a) strengthen their capacity and knowledge in modern
technologies and machinery used in agriculture and stock breeding and b) engage in new business
connections and partnership agreements.
As a result of the trade fairs, FSCs entered into trial contracts for new seedling varieties and input,
including Akhali Fermeri XXI who after visiting a local nursery, purchased 15 varieties of grape seedlings
that has been planted on their demonstration plot, and Zurab Kartvelishvili, who purchased a package of
new varieties of vegetable seeds and organic fertilizers that will be sold to smallholders throughout their
retail shops.
REAP Grantee Participation in Fruit Logistica 2016
To expose REAP’s grantees to
international marketing and quality
standards and new technologies in
fresh fruit and vegetable processing,
REAP organized a trip for its
grantees to attend the annual Fruit
Logistica trade show in Berlin, Germany. With more than 2,700 exhibitors and 65,000 visitors, Fruit
Logistica is one of the world’s leading international trade fairs for fresh fruit and vegetables.
Representatives of FSCs and processing enterprises met with international exhibitors showcasing the
latest technologies in packaging, grading, sorting, processing and cold storage equipment. The visitors also
met retailers representing international producers of small, medium and large companies. In addition,
REAP grantees met Germany’s Importers Association and toured a local wholesale market in Berlin to
further develop potential trade linkages and understand requirements for entering this market.
As a result of the trade show, REAP grantee Gemuani made a procurement order from Italian supplier
Pigo worth $600,000 which will contribute to the further development of their business. The Italian
equipment and machinery, including fluidization equipment, vacuum machine, washing machine and
fresh fruit inspection line will significantly improve the company’s technology and ability to purchase and
dry fresh fruit from smallholders.
Zoreti Ltd’s Participation in Cochran Fellowship program 2016
With REAP’s assistance, director of fish farm Zoreti Ltd, Mr. Revaz
Gogoladze participated in trainings in Modern Tendencies of
Trout Production provided through the Cochran Fellowship
program. Intensive training sessions were held on the premises
of Missouri University, Columbia in May, 2016.
Zoreti's Director on Cochran Fellowship
Program in US
CNFA 17 AID-114-C-13-00002
.As part of this program, Zoreti’s representative attended several seminars and trainings at various trout
farms located in the state. During the training sessions, Mr. Gogoladze gained knowledge of how to detect
and determinate nutrient pollutants, their effects on aquaculture, how to monitor mitigation using
nanotechnology, and water quality and disease prevention systems. Missouri State’s farmers
demonstrated new tendencies of fish production and processing cycles, advantages of recirculating indoor
culture systems for both cool and warm water species, split pond management techniques and different
fish varieties that can be farmed together with trout.
As a result of these training sessions, Mr. Revaz Gogoladze decided not to use antibiotics and probiotics
for fish disease treatment. Additionally, Mr. Gogoladze decided to farm new fish varieties along with trout
in order to diversify his production.
MTP Ltd’s Participation in Potato Study Tour
Postharvest handling infrastructure as well as storage
practices in Georgia, including the potato sector, is not well
developed. Increasing the storage capacity and building
technical capacity of storage managers is essential to address
Georgia’s problem of postharvest losses. To improve the
capacity of potato storage operators, REAP co-financed the
inclusion of grantee MTP in the SCO/DANIDA funded Rural
Economic Development (RED) Programme’s study tour to the
Netherlands. During the study tour, participants attended the
Potato Business School to gain practical knowledge in potato
storage and visited multi-national potato seed and equipment
suppliers Agrico and Tolsma.
REAP Study Tour to Serbia
Based on the recommendations of REAP’s niche market consultants, REAP organized a short study tour
to Serbia for selected grantees to learn from Serbia’s experience in berry and plum production, cold
storage management, and to establish market linkages. The study tour utilized the knowledge and
experience gained from Serbia’s recent agriculture development and introduced participants to varieties
demanded by EU countries. As a direct result of the study tour, Eleniksta Ltd., a fruit collector and dryer,
purchased a depitting machine and launched a newline of depitted prunes available through various
Georgian retail outlets and three grantees are importing new varieties of berry and plum seedlings that
are more appropriate for the European export market.
USAID/Ethiopia Study Tour to Georgia
In PY3, the USAID Feed the Future Commercial Farm Service Project (FTF-CFSP) based in Addis Ababa,
Ethiopia, sent project staff to REAP to gain insights on REAP’s FSCs/MSCs operations. An Ethiopian FSC
owner, the chairman of an input buying cooperative, and a representative from the Ethiopian
Government’s Agricultural Transformation Agency visited five FSCs/MSCs in Shida Kartli, Imereti and
MTP representative, Nugzar Londaridze at
Potato Business School in Netherlands
CNFA 18 AID-114-C-13-00002
Kakheti regions to gain knowledge from the FSC/MSC
owners and to learn about private sector driven input
supply business in Georgia. During the one-week
study tour, the delegation observed innovations
offered by REAP’s FSCs, including mobile weather
stations and REAP’s farmer outreach and training
methods.
REAP Summit
To capture and leverage the dynamism among REAP’s
portfolio companies, REAP organized a one-and-half-
day summit that brought together all 70 of REAP’s
grantees to facilitate market linkages and to find solutions to common problems concerning Georgia’s
agriculture sector. During the summit the following topics were discussed.
REAP Summit Topics
Farm Service Center Postharvest Handling Enterprises, Primary Producers
Modern Demonstration Plots Establishing consolidation centers
Benefits of and methods for introducing minimum tillage Postharvest handling and cold storage operation
Maintenance of agriculture machinery Creating grantee linkage
Input credit schemes for smallholder farmers Accessing new financing for equipment upgrades
Introduction of financial management software TA needs for enterprises
Building on connections made during the summit, enterprises are improving their business cooperation.
Two of REAP’s cold storage grantees in Kakheti agreed to purchase plastic crates produced by REAP
supported Adjara - based AgroExport Ltd., while women-owned Cooperative Gile is receiving technical
assistance from Geoflower in fruit drying technologies. In addition, REAP’s FSC have begun to establish
business linkages with start-up FSC Griogi Stepniashvili entering into a purchase order for high quality
inputs with more developed AgroKartli. REAP will continue to promote business linkages amongst its
grantee network through formal B2B meetings and informal networking opportunities.
Component 2: Technical Assistance Program
To ensure that agricultural investments are sustainable and competitive, REAP provides demand-driven
technical assistance to its grant recipients and other non-grantee beneficiaries through individual
consultancies, group trainings, and promotional events. The goal of the technical assistance program is to
enable agribusinesses and commercial farmers to improve business management practices, operations
and competitiveness; to introduce new agricultural technologies; enhance market linkages between
producers, processors and traders; increase on-farm production and quality; enter new export markets;
achieve greater incomes for agricultural producers and processors; and to create new employment
opportunities.
FTF-CFSP representatives visit to Alva FSC in
Sachkhere
CNFA 19 AID-114-C-13-00002
In PY3 there was a significant increase in the number of TA requests from grant recipients and non-
grantees (map of non-grantee projects is provided in the Annex 3) due to the increased number of
operational REAP-supported agribusinesses, cooperation with APMA and other donors, and a positive
perception of the value and benefits of TA programs. As a result, throughout PY3, REAP provided a TA to
63 grant recipients, 92,863 individuals and 211 non-grantee enterprises.
In PY3, REAP’s technical assistance program focused on the broad technical areas of: food safety and
quality management, business management and marketing, and best agricultural practices.
Food Safety and Quality Standards
In PY3, REAP remained proactively engaged in TA projects aimed at introducing international food safety
and quality standards. After signing the Deep and Comprehensive Free Trade Area (DCFTA) Agreement,
food processors are required to upgrade their quality management systems and improve their practices
to comply with internationally recognized food safety standards. To this end, REAP provided a wide array
of assistance to ease the financial burden of companies required to introduce internationally recognized
standards and raise awareness of the private and public sectors in this area by:
Providing GAP analyses and recommendations to REAP’s grant recipient companies and non-
grantees to become compliant with HACCP/ISO 22:000 requirements;
Providing 50/50 cost-share consultations to REAP’s grant recipient companies and non-grantees
to obtain internationally recognized standards; and,
Arranging awareness training sessions for companies and relevant state institutions including NFA
and ICC employees.
Initial Assessment (or GAP Analysis) of Compliance with Food Safety Requirements for Food Producers
In PY3, REAP provided three-day consultancies to 19 processing enterprises that are pursuing HACCP or
ISO 22000 certification. These tailored consultancies reviewed the construction plans of the enterprises
to ensure their compliance with HACCP and ISO 22000 requirements and provided a G.A.P. analysis that
identified non-compliances. In addition, consultants provided general training on sanitary and hygiene
requirements and developed written recommendations for necessary improvements in the physical
infrastructure and operations. These consultancies helped the processors identify and address non-
compliances in a timely manner, enabling them to gradually introduce food safety systems and plan for
HACCP or ISO 22000 certifications to take advantage of new opportunities arising on domestic and export
markets.
The following agribusinesses were provided with three –day consultancies in food safety:
CNFA 20 AID-114-C-13-00002
REAP PY3 Three Day Consultancies in Food Safety Requirements
Company Type Agriculture Sub-Sector
Kartuli Soko Ltd APMA Mushroom compost & fresh mushrooms
Investfeed Ltd APMA Animal Feed
Eurohazel Ltd Non-grantee Hazelnut processing
BaiaFood Ltd Non-grantee Cereal production
Caucasus Organic Fruits Ltd APMA Postharvest handling of fruits
Georgian Zetiskhili Ltd APMA Olive oil and marinated olives
Akhali Tevzi Ltd APMA Fish processing
MTP Ltd Grantee Potato processing
SP Zaza Mameshvili Grantee Subtropical fruit collection
Tkaia Cooperative Grantee Hazelnut drying and storing
Gurmani Ltd Grantee Frozen and semi-finished food production
Viniphera Ltd Grantee Table grapes production and storage
Iberia Fruits Ltd Grantee Dried Fruits and medical plants processing
SP Teimuraz Kobakhidze Grantee Goat cheese production
Kartuli Dapna Ltd Grantee Bay Leaves processing
Agroline Ltd Grantee Bay leaf processing
Geguti 2005 Ltd Grantee Vegetables and herbs production
Khareba Ltd USAID’s Broadening Horizons Project
Dairy production
Cost-shared Individual Food Safety Certifications
In the reporting period, REAP
initiated 17 cost-shared
technical assistance projects to
REAP’s grant recipients and
beneficiaries that include APMA
grantees and other
agribusinesses that qualify for
REAP’s non-grantee TA program
to assist these enterprises to
introduce international food safety standards. The targeted agribusinesses were or are being provided
with comprehensive pre-certification consulting services that prepares the enterprise for HACCP, ISO
22 000, Global GAP and other certifications including a final audit by a reputable international certification
body. In PY3, REAP completed 5 food safety and quality standards certification, while 12 companies are
expected to be certified in PY4. These certifications will assist the enterprises to access new higher valued
European markets and to expand their purchases from smallholders.
The below table highlights the status of food safety certification projects by beneficiary firm and standard
type.
ISO 22000 Certification Improves WestNut’s Sales With REAP’s assistance, hazelnut processor WestNut Ltd. became ISO 22000 certified in January, 2016. With improved quality management systems in place, WestNut was able to meet requirements of European buyers, lower their production costs per unit and increase their sales by 50%.
CNFA 21 AID-114-C-13-00002
REAP PY3 Individual Consultancies in Food Safety and Quality Standards
Company Type Agriculture Sub-Sector
International
Standard
Certification
Completion
Anka Fair Trade Ltd Non-grantee Hazelnut processing ISO 22000 Certified
Westnut Ltd Non-grantee Hazelnut processing ISO 22000 Certified
Gemuani Ltd Grantee Kiwi primary production Global GAP Certified
Santa Ltd Grantee Cheese production HACCP Certified
Farkoni Ltd Grantee Berry/herbs processing ISO 22000 Certified
Pirosmani Ltd Non-grantee Dairy products & animal
feed Bio certificate
Anticipated in
September, 2017
Georgian Lemonade Ltd Non-grantee Lemonade &juices ISO 22000 Anticipated in
December, 2016
Geo Demo Ltd APMA Hazelnut processing ISO 22000 Anticipated in
October, 2016
Nutinvest Ltd APMA Hazelnut processing ISO 22000 Anticipated in
October, 2016
GN Company Ltd APMA Hazelnut processing ISO 22000 Anticipated in
October, 2016
KTW-Agro-Keda Ltd APMA Fruit processing ISO 22000 Anticipated in
October, 2016
KTM-Agro-Chokhatauri Ltd APMA Fruit processing ISO 22000 Anticipated in
October, 2016
Vita Products Ltd APMA Cheese production ISO 22000 Anticipated in
December, 2016
AER Company Ltd Non-grantee Hazelnut processing FSSC 22000 Anticipated in
December, 2016
NutsGe Ltd Non-grantee Hazelnut processing BRC FS 7
Standard
Anticipated in
March, 2017
Kareli Agro Industrial Group
Ltd APMA Dried fruits ISO 22000
Anticipated in
March, 2017
Anaseuli Tea Factory Ltd APMA Processed fruits ISO 22000 Anticipated in
March, 2017
Food Safety Training Courses
In PY3, REAP provided a series of awareness training courses in food safety and quality standards to Georgian agribusinesses and public sector employees to equip them with improved knowledge of international food safety standards to ensure that relevant public institutions possess the necessary expertise and competencies to provide quality advice and recommendations to Georgian farmers and agribusinesses. REAP provided the following awareness courses.
Training Course for APMA Grantees
Within the framework of the Terms of Cooperation signed between REAP and APMA (please see
Collaboration with Stakeholders for more information), REAP organized a 2-day training event in
international food safety and quality management systems for 14 APMA grant recipient food processors
CNFA 22 AID-114-C-13-00002
and 3 APMA representatives. The training introduced participants to the key concepts and principles of
GMP, GHP, HACCP, and ISO 22000:2005 and aimed to facilitate their certification which will lead to
increased sales and export opportunities. As a follow-up to the training, seven companies requested ISO
22000 certification on a cost-share basis, where 50% of a consultancy fee will be covered by REAP, 30%
by APMA, and 20 % by the relevant APMA-supported processing companies.
HACCP Training Course for Slaughterhouses
As part of the approximation of Georgian legislation to EU standards, all slaughterhouses and milk
collection centers have to adhere to HACCP standards by the end of 2016. In PY3, REAP and the National
Food Agency (NFA) signed a Terms of Cooperation (TOC) to launch a cooperative program of technical
assistance to benefit Georgia’s slaughterhouses and improve their food safety standards. Under the TOC,
REAP and NFA provided a one-day training sessions in HACCP requirements and basic food safety systems
to 110 individuals from the NFA and multiple slaughterhouses across Georgia. Taking place in seven cities,
Tbilisi, Kutaisi, Zugdidi, Batumi, Telavi, Gori and Gurjaani, these trainings served to provide basic
awareness to slaughterhouses on food safety requirements that will go into effect in 2017 as part of the
DCFTA agreement.
DCFTA Awareness Training Course for MOA Extension Officers
In PY3, REAP and USAID’s Strengthening Extension and Advisory Services (SEAS) program designed a
technical assistance program to provide awareness trainings to the broad audience of MOA extension
agents in DCFTA and food safety. Aimed at strengthening the knowledge and awareness of extension
officers in good agriculture practices and chapters of the DCFTA relevant to primary production, this
training program was delivered across seven cities of Georgia to 118 individuals from regional
Information-Consultation Centers (ICCs) and the National Food Agency (NFA). Based on follow-up reports
from 30 ICCs operating in six regions of Georgia, their extension officers have further provided Global Gap
related consultancy to 1401 smallholder farmers. Based on cumulative data of Shida Kartli based ICCs,
consultations of their extension agents have been reflected on 282 hectares of farms operating in the
region. ICCs also provided food safety/HACCP related consultancy to 72 agribusinesses representing
dairy, fresh fruit, hazelnut, berry and honey sub-sectors. The table below details the number of farmers
and beneficiary agribusinesses trained in DCFTA principles from improved ICCs.
ICC Dissemination of DCFTA Principles to Farmers and Agribusinesses
Regions Number of municipalities
Number of beneficiary farmers
Number of beneficiary agribusinesses
Imereti 5 178 50
Kakheti 11 71 N/A
Samegrelo-Zemo Svaneti -
6 83 15
Shida kartli 4 91 N/A
Samtskhe-Javakheti 3 917 7
Guria 1 61 N/A
TOTAL 30 1401 72
CNFA 23 AID-114-C-13-00002
Business Management and Marketing
Throughout PY3, REAP provided a series of technical assistance activities to increase the marketing and
management of REAP grantees. Utilizing local consulting services, REAP designed eye-catching corporate
brochures for export oriented and newly launched processing firms, developed interactive websites for
FSCs and conducted brand research. In addition, REAP conducted a series of export promotion and
business management activities.
Marketing
Corporate Brochures
To assist REAP grantees promote their products to new clientele, REAP assisted eight enterprises to
develop corporate brochures in the Georgian and English languages. These brochures serve as an effective
tool to assist them to present their companies to clientele with a professional and polished visual presence
that communicates their brand effectively. The companies receiving corporate brochure assistance were:
Farkoni Ltd – a Kutaisi- based company
engaged in processing of medicinal herbs and
spices;
AgroInvestService Ltd - a Chakvi-based
company engaged in consolidation and storage
of fresh fruits ;
AgroExport Ltd – a Batumi-based company
engaged in consolidation and storage of fresh
fruits;
Anaseuli Experimental Tea Factory Ltd- a
Guria-based company engaged in tea
production;
Santa Ltd- a Tsalka-based company engaged in
cheese production;
Georgian Fruit Company Ltd – a Gurjaani-
based company engaged in consolidation and storage of fresh fruits;
Laboratory Dr. George Ltd - a Gardabani-based company engaged in production of churchkhela
and Georgian sweets;
Campa Ltd – a Saguramo-based company engaged in juice production.
Brand Identity
Building on REAP’s successful experience developing new packaging and labeling for grantees, in PY3,
REAP provided brand identity consultancies to grantees Eleniksta Ltd and Farkoni Ltd to develop new
brand identities and visual marketing materials. For Eleniksta, REAP designed their brand name Kareli
Fruits and assisted the enterprise to design new logo, labels and packaging material for different varieties
of dried fruits and for Farkoni, REAP created their brand name Khomli and assisted in the design of new
logo and labels for their packaged spices, herbal teas and medicinal herbs.
Corporate brochures produced by REAP's support
CNFA 24 AID-114-C-13-00002
Development of Websites for Farm & Mechanization
Service Centers
With the increased Internet coverage in rural areas, a
functional, user-friendly, and easily accessible website is
becoming an important marketing tool for service providers
to raise the visibility of the products and services they offer
to local farmers as well take online orders from their
customers. In PY3, REAP started a pilot project to strengthen
the marketing capacity of eleven REAP-supported FSCs/MSCs
in Kakheti, Racha, Samegrelo, Imereti, Ajara, and Shida Kartli
regions through developing tailored websites which will
enable the enterprises to disseminate agricultural
information to local farmers as well as to increase their sales.
All eleven websites are constructed, 9 websites are fully
operational and the remaining two will be completed by
November, 2016. Please visit the following FSC websites for
more information:
Agrovita at agrovitafsc.com Agroservice at agroservicefsc.com Agrokartli at agrokartli.com SP Zurab Tetvadze at agroconsultingfsc.com Agrosakhli at agrosakhli.com Alva at alvafsc.com SP Tsisia Digmelashvili at agrogareji.com Agroservice Kareli at agroservicekareli.com SP George Stepniashvili at natakhtariac.com
Development of Website for Gemuani Ltd
In May, REAP started a new TA project in marketing to assist its grant recipient company Gemuani Ltd to
develop a bilingual website to increase their visibility which will improve company’s ability to target more
markets, increase sales, and keep customers informed of new product developments. A Global G.A.P.
certified company, Gemuani Ltd is located in Samegrelo and with REAP’s assistance, finalized the
construction of a fruit freeze drying facility that will produce vacuum packed dried fruits and berries. The
website is anticipated to be completed by mid-November and will further strengthen the company’s
capacity to sell on the local and international markets.
Brand Performance Research for Campa Ltd
In June, REAP contracted a local research company to conduct a brand performance research for its grant
recipient Campa Ltd, a leading Georgian juice producer. Co-funded by REAP and Campa, this research
assisted the company to gain reliable information on consumer needs and preferences, as well as
knowledge of market trends. CAMPA will utilize this information to re-brand their products and to conduct
an aggressive marketing campaign beginning in PY4.
Screenshot of AgroVita FSCs web site
CNFA 25 AID-114-C-13-00002
Product Development
To support REAP's grantees that are start-up enterprises or are launching new products for sale at local
retail shops, REAP utilized a local service provider to conduct a retail market assessment for 10 enterprises
to identify market entry strategies that included information purchasing requirements for target retailers,
appropriate pricing segmentation, packaging requirements and a detailed analysis of potential
competitors. REAP will make available follow-up consultancies for those enterprises that need further
market research. Information on the grantees supported by this activity are:
Farconi Ltd - a Kutaisi- based company engaged in consolidation and processing of medicinal herbs that is expanding to market packaged spices, herbal tea, and medicinal plants.
Zoreti Ltd - a Borjomi-based company that beginning a new business line of production and marketing of smoked trout.
Zena Ltd – a Gardabani-based start-up company that plans to start production of matsoni and sour cream.
Anaseuli Experimental Tea Factory Ltd - a Guria-based company that is renewing production of packaged tea.
Cooperative Dioknise- a Khulo-based microenteprise that is starting the production of packaged dried applies and blueberries.
SP Temur Kobakhidze – a Tetritskaro-based microenterprise engaged in goat cheese production.
Laboratory Dr. George Ltd - a Gardabani-based company engaged in production of churchkhela and Georgian sweets.
Agroline Ltd – a Samegrelo-based company that plans to start the production and marketing of packaged dried bay leaf.
SP Ia Urushadze and SP Lali Chankseliani – Guria-based microenterprises engaged in honey
production that plan to begin selling packaged honey at retail stores.
Business Management
SME Management
To improve the management capacity and capabilities of grant recipients that are start-ups or in the early
stages of their development, REAP organized a three-day SME training course. Attended by 20 companies,
including representatives of REAP’s supported Gender Platform, this training covered topics of:
agribusiness management, product quality and safety management, marketing strategies, Georgian SME
legislation, and financial management.
Export Promotion Training Course
In PY3, REAP formalized a partnership with the Enterprise Development Agency under the Ministry of
Economic and Sustainable Development to include REAP’s grantees in a one-month export promotion
training course initiated by the Agency. In March, REAP grantees Herbia Ltd, Farkoni Ltd and Laboratory
Doctor George Ltd participated in the Certified Export Manager (CEM) course that equipped participants
with practical knowledge and skills needed to successfully export. Under REAP’s partnership with the
Ministry, 70% of the course fee was covered by the Enterprise Agency. As a result of this training, all three
grant recipient companies have certified Export Managers who will lead company’s export related efforts.
CNFA 26 AID-114-C-13-00002
Export Promotion Workshop
Within the framework of cooperation
with the Ministry of Economic and
Sustainable Development, four of REAP’s
grant recipient agribusinesses: Farkoni
Ltd, Gemuani Ltd, Campa Ltd, and
Eleniksta Ltd attended a seminar
organized by Entrepreneurship
Development Agency (EDA) to further
strengthen the export capacity of
Georgian businesses. The seminar
conducted by U.S.-based consulting
company provided Georgian businesses
with an overview of the U.S. market and
cost-effective marketing and
communication tools necessary to enter
this market. As a result of the workshop, Farkoni is under negotiations with a U.S. distributer to sell their
packaged spices in the U.S. beginning in early 2017.
Agriculture Sector Assessments
In PY3, REAP conducted three assessments to analyze import substitution opportunities, evaluate niche
products for export and to improve grantee’s supply chain operations. Led by international consultants
with the support of local staff, these assessments provide a detailed analysis and marketing guide for
agriculture products on the local and export market that will be utilized by the donor community to inform
new programming and by REAP to tailor support to grantees.
Domestic Market Assessment
As a result of high postharvest losses, above average production costs and below average yields, Georgia
suffers from high imports of fresh fruits and vegetables. This agricultural trade deficit represents a missed
opportunity for higher employment and income generation for Georgia’s rural areas. In PY3, REAP
engaged an international consultant coupled with a local consultant to conduct a detailed domestic
market assessment that identified crops with the highest potential to decrease Georgia’s trade deficit and
increase rural incomes. The consulting team scored supply and demand side characteristics of 23 products
based on special criteria and identified 10 agricultural products for which there is strong local demand
and for which Georgian agribusiness also have best ability to produce the products locally. Included in the
assessment was a proposed plan of actions that can be implemented within the lifetime of REAP and
which were utilized to inform REAP’s PY4 Work Plan.
Niche Market Analysis
Georgia with its diversity of climatic zones and soil types produces and has the potential to produce a
wide variety of niche crops that have a high potential for export or sale on the domestic. In PY3, REAP
Local Market Linkages Throughout PY3, REAP facilitated more than 170,000 GEL in
market linkages with international supermarket Carrefour:
GFC Ltd sold 65 tons of nectarines and peaches
Viniphera Ltd supplied 18 tons of table grapes
Cooperative Gile traded 8 tons of blackberries and 60 tons of
peaches and nectarines
AgroKartli Ltd sold 48 tons of tomatoes harvested from the
demonstration plot
CNFA 27 AID-114-C-13-00002
engaged a team of international consultants to assist the project in analyzing high value and niche
products that are produced by grantees and non-grantees and to develop a marketing strategy for these
sub-sectors. The report was submitted to USAID for their review and recommendations. As a follow-up to
the recommendations provided in this report, REAP identified a small group of grantees to participate in
a study tour to Serbia that was organized in Q4 of PY3 (for more information on the study tour please see
REAP Study Tour to Serbia). Activities from the Action Plan provided by the consultants are incorporated
into REAP’s PY4 Work Plan and led to the introduction of REAP’s 0.1 Ha demonstration plot program to
promote berries and other high value agriculture on small parcels of land owned by vulnerable people in
Georgia.
Supply Chain Management
Based on recommendations from REAP’s Domestic Market Assessment and the needs of grantees, REAP
designed a supply chain management activity to strengthen supply chain relationships between REAP’s
grantees and smallholder farmers. Led by international consultants, the activity first assessed current
supply chain practices at REAP’s cold storage facilities and identified three companies to support with
tailored technical assistance: SP Marina Akolashvili, Georgian Fruit Company Cooperative and Eleniksta
Ltd. In PY4, REAP will utilize the recommendations provided by the consultants to implement supply chain
improvement plans that will address bottlenecks in the enterprise’s supply chain and will introduce
incentives to promote cooperation and loyalty between producers and aggregators. Ultimately, this
activity will increase the enterprises’ profitability while improving their ability to purchase more products
from smallholders. The consultancy will be piloted in the beginning of PY4 and based on results, REAP will
look to scale up the activity throughout PY4 and PY5.
Improved Agricultural Practices and New Technologies
One of the major constraints that precludes Georgian agriculture from growth and development is the
limited access to best agricultural practices and modern technologies. During PY3, REAP observed an
increase in demand for technical assistance from Georgian agribusinesses who are actively seeking local
or international expertise to address gaps in their knowledge and to further best agriculture practices.
Over the course of PY3, REAP provided a series of individual and group consultancies to grantee and non-
grantee enterprises detailed below.
Equipment and Infrastructure Development
Postharvest handling represents one of the major challenges for Georgian farmers. To address this
problem, REAP provided a grant to AgroExport, a leading citrus collector in Adjara. With REAP’s support,
AgroExport procured a crate molding machine that enables the company to supply plastic boxes to local
farmers and exporters that reduce postharvest loses compared with the traditionally used wooden boxes.
In the first quarter of the PY3, REAP on a cost-share basis with the vendor and grantee, deployed an
international engineer to Batumi to provide technical assistance in the installation of the molding machine
as well as to train the company’s staff on the proper utilization and maintenance of the equipment. Since
commencing operations, AgroExport has produced approximately 260,000 plastic boxes that are being
utilized for exporting peaches, nectarines, persimmon and mandarins collected from local farmers.
CNFA 28 AID-114-C-13-00002
Mushroom and Mushroom Compost Production Technologies
Throughout PY3, REAP’s international mushroom consultant, Orazio Tietto, provided tailored
consultancies and a ToT program to APMA beneficiary and REAP’s non-grantee firm Kartuli Soko Ltd that
operates a mushroom production facility in Ksani, Mtskheta municipality. The activities implemented by
the consultant assisted the firm to increase the efficiency of their operations and to set up mushroom and
mushroom compost production lines. Through online/off-site consultancies the expert assisted Kartuli
Soko to develop and operate a remote control system for mushroom compost production. In addition,
through customized ToT program, the expert built the capacity of 10 potential trainers, in order for them
to further disseminate acquired knowledge and skills among small farmers engaged or having potential
to be engaged in mushroom production. In PY3, within the period of May – September 2016, Kartuli Soko
produced 52,699 mushroom compost pellets, out of which 3,000 were sold to farmers. These compost
pellets enabled farmers to grow approximately 75,000 kg of mushrooms, valued at approximately 220,000
GEL. Within the same period, the firm sold 83,865 kg of mushroom through domestic retail sales. The
trainers, who upgraded their knowledge through ToT program, delivered theoretical and practical
capacity building sessions to 30 interested individuals and 150 more farmers have been registered as
potential partners that will be buying compost pellets over the upcoming 2-3 months.
Greenhouse Strawberry Production
A customized consultancy in strawberry production technologies was provided to grantee SP Alexander
Nadareishvili. Operating a strawberry greenhouse and seedling nursery in Samegrelo, Alexander
Nadareishvili provides improved seedling varieties to smallholders and sells strawberries on the local
market. The consultancy will enhance the greenhouse’s operations and will improve the quality of
strawberries and seedlings by improving the greenhouse’s heating, water management, pest
identification, seedling propagation and production techniques.
Vegetable Production Technologies
REAP utilized a local short-term consultant to provide individual consultancies to REAP grantee FSCs and
primary producers engaged in open field vegetable production. Focusing on potatoes and onions, the
consultant worked with three FSCs in Kvemo Kartli and Samtskhe-Javakheti. Furthermore, non-grantee
agribusinesses and smallholder farmers, as well as ICC extension agents also benefited from group
trainings delivered by the consultant within REAP’s farmer field days framework. The consultancy helped
farmers to enhance knowledge on new technologies, supporting the introduction of modern varieties,
production practices and irrigation systems.
Cheese Making Technologies
Within the framework of the TOC signed between REAP and PUM, a PUM expert provided a 10-day on-
site consultancy to REAP-supported Santa Ltd. The consultant provided practical advice and
demonstrations to Santa to refine their Gouda cheese making technologies and to start production of new
cheese varieties such as Mozzarella, Feta and Ricotta. In addition, the consultant provided
recommendations to the company’s owner and managers on how to improve their production and
processing operations and procedures. The consultancy helped Santa Ltd to successfully pass the audit
CNFA 29 AID-114-C-13-00002
conducted by NFA and it is expected that new
varieties of cheese produced by Santa Ltd will arrive
on the shelves of Georgian supermarkets in Spring
2017.
Modern Veterinary Practices
At the end of PY3, REAP provided tailored trainings
and on-the-job coaching in veterinary area to REAP
FSC grantee Nektari Ltd. With REAP’s support,
Nektari expanded its FSC operations by introducing
mobile veterinary diagnostic services. The
comprehensive training program, designed based
on needs of Nektari’s staff, covered theoretical
aspects of modern veterinary practices, focusing on
disease prevention and vaccination, as well as included field visits to nearby cattle farms and
slaughterhouses. The firm expressed very positive feedback towards the training methodology and format
and has continued direct cooperation with the consultant upon completion of REAP’s assistance. As a
result of the trainings, 12 staff members upgraded their knowledge and skills in veterinary area and
Nektari FSC is utilizing the knowledge to deliver on-call veterinary services in the district. As of today, the
firm has provided emergency service to six cattle operator farmers within Chiatura municipality.
Improved Cold Storage Management
In PY3, REAP continued to provide support and training to cold storage grantees to better utilize their
equipment and to improve their postharvest handling practices. Utilizing international experts provided
by MASHAV, a local consultant and in-house technical expertise, REAP provided customized technical
assistance to seven cold storage grantees in Shida Kartli and Kakheti to optimize their harvesting process,
manage precooling systems and to improve temperature and humidity control.
In addition, in PY3, REAP, in cooperation with its grantee Iveria Ltd organized a special 2-day
demonstration event to increase awareness of cold storage operators and commercial farmers on
harvesting, post-harvest handling and refrigeration technologies and practices. A total of 35 people
benefited from theoretical and practical sessions highlighting key aspects of post-harvest handling and
cold storage operations.
In PY4, REAP will continue to monitor cold storage grantees and is working with their operators to develop
a series of checklists, guidelines and posters for proper cold storage management based on the fruits they
are storing. In upcoming quarters, REAP will expand assistance to cold storage operators in West Georgia
and will look to host demonstration days at supported cold storages to showcase best practices for
subtropical fruit harvesting and storage.
PUM Expert Providing Consultancy to Santa Ltd.
CNFA 30 AID-114-C-13-00002
Demonstration Plots Development and Farmer Field Days
In PY3, REAP, within the framework of its modern demonstration plot development program, REAP
continued to provide individual consultancies and trainings to grantee FSCs, primary producers, and
smallholder farmers to increase their awareness of modern agriculture technologies and practices. In PY3,
REAP’s demo-plot development program focused on the gradual transition of existing agricultural practices
to modern farming technologies, including minimum tillage and no–tillage technologies. In addition, REAP
focused its effort on introducing new crops including haricot beans, table grapes, berries and others
varieties based on region-specific soil and climate characteristics. Field days were organized at selected
demo plots, targeted for PY3 demo plot program activities. Each field day was led by local agricultural
specialists and was aimed at increasing the awareness of specific agriculture technologies, inputs and
varieties through a combination of demonstrations and theoretical and practical sessions. In total, REAP
held 11 farmer days, training more than 500 participants including 328 farmers, 125 students and 116 ICC
extension officers and MoA representatives.
On-site surveys conducted during Field Days showed that farmers are interested and ready to follow new
practices and to introduce new crops and varieties. As a result of the farmer field days, farmers plan to plant
new crops (berries) and new varieties of traditional crops (watermelon, sunflower) that will lead to better
yields and higher economic efficiency of their operations. Technologies introduced as well as key outcomes
per demonstration plot are presented in the Annex 4.
Below is a list of field days hosted by REAP’s beneficiaries during PY3.
N Date Demoplot Location Activities Demonstrated Number of Participants
Number of Participant
Farmers
1 23-Oct, 2015
Akhalkalaki, SP Serioja Ezoian Seeding of wheat with minimum tillage technology
20 17
2 17-Nov, 2015
Marneuli, Lomtagora Ltd Seeding of wheat with minimum tillage technology
56 26
3 12-Apr, 2016
Tsnori, Lukagro Ltd Seeding of maize with minimum tillage technology
61 17
New REAP Cold Storage Capacity
Grant project Crops Capacity Region Harvesting period M3 MT
GFC Ltd Peach, Apples, Citruses 2592 933 Kakheti All seasons
GFC Cooperative Apples 756 272 Shida-Kartli August - November
Iveria Ltd Apples 800 288 Shida-Kartli August - November
Eleniksta Ltd Cherie, Plums, Apples 876 315 Shida-Kartli June-November
Gile Ltd Seasonal fruits 90 32 Kakheti June-November
SP Marina Akolashvili Peach, Grapes 968 348 Kakheti July – August
Viniphera Ltd Grapes 530 190 Mtskheta-Mtianeti
August-October
CNFA 31 AID-114-C-13-00002
4 20-Apr, 2016
Dedoplistkaro, SP Zurab Tetvadze Seeding of wheat with minimum tillage technology
51 28
5 25-Apr, 2016
Village Dzevera, Gori, Agrokartli Ltd
Vegetable production with plastic mulch
26 18
6 24-May, 2016
Village Eniseli, Kvareli, Mindia 2011 Ltd
Modern practice of strawberry production
41 29
7 1-Jun, 2016
Bolnisi, Deveplus Ltd Sprinkle irrigation for potato production
61 39
8 9-Jun, 2016
Marneuli, Lomtagora Ltd Wheat in vegetation period 94 50
9 24-Jun, 2016
Village Dzevera, Gori, Agrokartli Ltd
Plastic mulching and irrigation for tomato production
51 25
10 10-Aug, 2016
Village Dzevera, Gori, Agrokartli Ltd.
Tomato harvesting 68 49
11 7-Sep, 2016
Dedoplistkaro, SP Zurab Tetvadze Sunflower production technologies
40 30
Total 569 328
PERSUAP Training for FSCs
To improve the knowledge and skills of FSC owners and agronomists, in PY3, REAP translated relevant
sections of the PERSUAP into Georgian and conducted three-day trainings in Gori, Telavi and Kutaisi. The
training covered pest management and elements of IPM, pesticides registered in Georgia and rejected by
the PERSUAP, pesticide safe use, storage, transportation, disposal, monitoring and mitigation practices.
In total employees from 25 FSCs, 6 primary producers and 2 MOA’s ICCs participated in the training
program.
Mechanization Trainings for FSCs/MSCs
Based on a training needs assessment conducted by REAP’s local mechanization expert, throughout PY3
REAP delivered individual trainings and coaching to machinery operators at 17 of REAP’s FSCs. The
trainings focused on increasing the knowledge of new mechanization technologies and maintenance skills.
The trainings were also paired with semi-annual site visits to all FSCs where REAP’s local mechanization
expert ensured that REAP’s equipment is properly utilized and maintained.
Collaboration with Stakeholders and Private Sector Partners
APMA Technical Assistance Program
To effectively coordinate and leverage financial and technical resources, REAP and APMA entered into a
joint program of technical assistance that will be in effect until July 1 of 2018. Under two terms of
cooperation, REAP and APMA will jointly provide group trainings and individual consultancies to APMA's
grant beneficiaries. The first TOC focuses on implementing international food safety standards in
accordance with DCFTA on a cost-shared basis of 50% by REAP, 30% by APMA and 20% by the grantee. To
date, 8 processing firms are ISO 22000 certified or are in the process of being certified under this TOC.
CNFA 32 AID-114-C-13-00002
Building on the successful collaboration, in August, REAP and APMA signed a new TOC to provide technical
assistance to beneficiaries of APMA’s Plant the Future and Georgian Tea Rehabilitation Programs in food
safety and new technologies. Under this TOC, REAP and APMA will conduct a joint Global GAP awareness
training program in early PY4, targeting more than 100 commercial farmers. More details about APMA’s
and REAP’s collaboration are provided in the “Food Safety and Quality Standards” and “Financial
Management Training” sections of this report.
PUM
In PY3, REAP and the PUM Foundation of Netherlands signed a Letter of Intent (LOI) to engage in a
cooperative technical assistance program. The program leverages PUM’s technical expertise and
experience supporting the development of small and medium-sized enterprises in 70 countries to provide
free of charge, tailored, hands-on consultations in modern agricultural technologies to REAP’s grantees.
REAP and PUM agreed to initially work with Eleniksta, Zoreti, Santa, and MTP. In PY3, PUM deployed a
consultant for Santa Ltd to support the introduction of new varieties of cheese. More information is
provided on this consultancy in the “Cheese Making Technologies” section of this report. REAP and PUM
identified consultants for the remaining three beneficiaries and consultancies will be undertaken early in
PY4.
MASHAV
REAP continues to cooperate with the MASHAV program supported by the Embassy of Israel. During PY3,
REAP sent three participants to Israel to benefit from MASHAV’s training program (for more information
please see the “MASHAV”) and MASHAV sent two experts to provide recommendations to REAP’s cold
storage enterprises. In PY4, REAP will continue to work with MASHAV and will look to establish a joint
program to address gaps in knowledge of postharvest handling and cold storage management practices.
Entrepreneurship Development Agency of Ministry of Economic and Sustainable
Development
REAP continues to cooperate with the Export Development Department of the Entrepreneurship
Development Agency to increase the export capacity of REAP supported agribusinesses. This will be
accomplished through the engagement of REAP’s grantees in training courses organized by the Export
Development Department and co-funding their participation in international trade exhibitions and
missions supported by the Entrepreneurship Development Agency. Export promotion related activities
will take place in the PY4 and PY5.
NFA
In PY3, REAP and the National Food Agency (NFA) signed a Terms of Cooperation (TOC) to launch a
cooperative program of technical assistance to benefit Georgia’s slaughterhouses and to improve their
food safety standards. As a result of this TOC, 110 individuals from the NFA were trained in HACCP
principles. Activities within the frame of this TOC are described in the “HACCP Training Course for
Slaughterhouses” Section of this report.
CNFA 33 AID-114-C-13-00002
USAID/SEAS
As an adopted practice, REAP always seeks ways to collaborate with other donor project to maximize
results. In PY3, REAP and SEAS developed a joint program for ICCs to raise their awareness on DCFTA as
well as food safety and hygiene requirements. Details regarding the implementation of this joint program
are provided in the “DCFTA Awareness Training Course for MOA Extension Officers” section of this report.
State Ministry of Diaspora Issues
Building on the successful collaboration with the State Ministry of Diaspora Issues, in PY3, REAP continued
participation in events organized by the ministry. Details of REAP’s participation is provided in the
Diaspora section of this report.
Supporting Hazelnut Sector with AgriGeorgia and GHGA
In PY3, REAP continued the cooperative program with AgriGeorgia and GHGA to join efforts in developing
Georgia's hazelnut sector through increasing productivity, quality and marketability of Georgian
hazelnuts. Under the agreed upon TOC, the parties provided assistance to the hazelnut sector in access
to finance, training agronomists, soil testing/analysis and expanding the membership of GHGA. All
mentioned activities were completed in PY3 except agronomists training that REAP will continue to
implement along with AgriGeorgia and GHGA until the end of the project.
Hazelnut Financing Conference
To improve the financial sector's awareness and interest in lending to the hazelnut sub-sector, REAP,
AgriGeorgia and GHGA organized a joint conference bringing together 24 representatives from leading
commercial banks, leasing companies, micro finance institutions and APMA. For the first time, GHGA
presented to financial institutions their current and future technical assistance programs to the hazelnut
sector, current conditions of Georgia's hazelnut market, access to finance constraints for growers and
possibilities for future collaboration. The conference served to facilitate connections between GHGA and
the financial sector to aid the availability of financing to the hazelnut sub-sector, encourage direct
relationships between the association and banks and to identify new products needed to serve this
market.
Access to Finance Training to Hazelnut Growers
Improving the financial management skills, record keeping and awareness of financial institutions'
requirements is essential for improving the access to finance for hazelnut growers. REAP and GHGA
designed and delivered a tailored financial management training course to 110 hazelnut growers. Topics
of the training course included, financial management and access to finance. In addition, to build GHGA's
in-house capacity to provide access to finance advice to its members, REAP's Access to Finance Specialist
and short-term finance consultant conducted a more advanced training to GHGA staff members.
CNFA 34 AID-114-C-13-00002
Input Credit
Access to affordable credit is a continuous challenge for smallholder hazelnut farmers. With the
fertilization period beginning in late February, most smallholder farmers must weigh the financial cost of
borrowing money at expensive market rates, or not applying appropriate fertilizer, risking lower yields.
To support GHGA member farmers, REAP worked with the association, input suppliers and financial
institutions to negotiate the financing and purchase of fertilizer directly from a wholesaler at a reduced
interest rate. Under this scheme, farmers received a six-month grace period on principal and interest. As
a result, the farmers’ total cost, including interest, was less than the retail price for the fertilizer. In total,
more than 27,000 GEL was financed through this program, assisting 65 GHGA farmers to buy more than
17 MT of fertilizer.
Agronomist Training
In PY3, REAP, AgriGeorgia, GHGA and the Agrarian
University organized a full cycle of training and
learning program for agricultural university students
on best practices of hazelnut growing. Within the
program, 43 Agricultural University students, under
the supervision of AgriGeorgia’s local and
international agronomists and GHGA’s Advisors,
visited AgriGeorgia four times during the year for
theoretical and practical trainings. During the
training, students planted a new 0.5 Ha hazelnut
orchard which will continue to serve as a training plot
in future years. Building on this program’s success, REAP and AgriGeorgia agreed to continue this training
program in PY4 and PY5 and to target additional universities.
Soils Testing
To improve GHGA's members’ access to reliable soils tests, REAP, GHGA and AgriGeorgia solicited
applications from accredited soil testing laboratories to provide training to GHGA members in proper soil
collection and to analyze the soil content of their orchards. Under agreement with the Anaseuli Soil
Testing Laboratory, 24 lead farmers were trained and more than 230 soil tests were taken and analyzed
by the laboratory. The results of the soil tests were reviewed by GHGA and AgriGeorgia's specialists;
recommendations for proper input application were developed and focused consultancies were provided
to growers. In total 110 growers received soil testing services, ensuring improved agricultural practices on
more than 200 Ha of land.
Agrarian University students planting hazelnut plants
on a demonstration plot
CNFA 35 AID-114-C-13-00002
Grower Group Development
In PY3, REAP and AgriGeorgia contracted Argentina
Association of Regional Consortia for Agricultural
Experimentation (AACREA) to provide capacity building
support to GHGA. Building on assistance provided to GHGA
under USAID's EPI program, AACREA developed and
delivered a training curricula to build the capacity of GHGA
employees and provided an action plan for GHGA's
development. With AACREA’s assistance, GHGA’s grower
groups have doubled from 10 to 20. Advancing the
membership of GHGA is supported by the newly launched GDA with Ferrero, G-HIP.
Cooperation with Nergeta
In order to support kiwi production in Georgia, a product identified by both REAP’s local market and niche
market assessment as having high potential for expansion, REAP and Nergeta - a leading kiwi producer,
collector and exporter signed a TOC to launch a joint technical assistance program to increase the
productivity and incomes of Georgian kiwi farmers. The program will leverage Nergeta’s technical
expertise to host farmer trainings and will establish a nursery to provide low cost plant material to
Georgian farmers. Consultancies and farmers training will begin in PY4.
In addition, REAP and Nergeta engaged an international consultant to upgrade their pack house and to
improve the postharvest capabilities of the company. The consultant provided trainings to Nergeta’s
recently hired HACCP Manager in food safety and updated the pack house’s standard operating
procedures to comply with International Featured Standard (IFS) Level 2 Certification. IFS is the leading
certificate required for fresh fruit and vegetable export to Germany and the Netherlands.
Enhanced Pool of REAP Partner BSP’s
To enhance the scope of cooperation with partner BSPs and to discuss TA program priorities and
collaboration opportunities, REAP held awareness meetings in early PY3. As a follow-up to these meetings,
REAP solicited proposals from additional local business service providers to extend its list of partners. To
date, 42 BSPs are registered as REAP partners, regularly receiving information on tenders announced within
the scope of REAP’s technical assistance program.
Cross Cutting Activities Monitoring and Evaluation
REAP’s PY3 Annual Performance Report reflects the work conducted by the project towards its strategic
goal, objectives and sub-objectives as stated in REAP’s Results Framework, and summarizes the
achievements though performance indicators and a relevant rationale.
REAP’s M&E Manager with the support of M&E Coordinator and Regional Coordinators tracks progress
on a quarterly basis in order to obtain systematic, meaningful feedback on successes and areas for
Practical training in hazelnut orchards
CNFA 36 AID-114-C-13-00002
improvement in its programming and interventions. This M&E data is being utilized by REAP management
to inform decisions on different interventions and programming.
In PY3, REAP completed its grant program, resulting in 70 grant projects in its portfolio. Among these 70
businesses, 48 companies were operational during the reporting year and have provided performance
data according to the requirements in REAP’s M&E system. The remaining 22 grant projects are in various
stages of mobilization and contributing to REAP’s PMP when appropriate. REAP’s management assumes
that mobilization of these remaining projects will be completed in the PY4 and will fully contribute to M&E
data beginning this production season.
Below is REAP’s indicator table, highlighting REAP’s progress against contractual targets as well as other
key indicators. Through PY3, REAP has exceeded all contractual targets with the exception of number of
distinct clients purchasing products or services from assisted SMEs (79% complete), Value of primary
agriculture products supplied by farmers (51% complete) and number of individuals who have received
short-term agricultural training (91% complete). With two years remaining of full scale grantee
operations, REAP foresees no difficulty with meeting, and even, exceeding these three remaining targets.
The detailed report on progress against all 31 of REAP’s PMP indicators, along with updated Cost Benefit
Analysis (CBA) results, may be found in Annex 5 under Cost Benefit Analysis (CBA). In addition, with a
growing non-grantee technical assistance portfolio, REAP engaged a local consultant in PY3 to develop an
attribution methodology for these technical assistance interventions. This methodology is presented in
the same Annex 5 under the section Non-Grantee Technical Assistance Impact Methodology and will be
rolled out across REAP’s non-grantee portfolio in PY4, capturing additional REAP impact.
Contractual
targets
750 129%
106,538 135,000 79%
Contractual
Indicators
$40,000,000 116%
2,500 134%
$10,000,000 51%
$14,000,000 137%
150,000 91%
Other Key Indicators
n/aNumber of MSMEs receiving business development
services from USG assisted sources758 n/a
$19,249,461
215%
Number of hectares under improved technologies or
management practices as a result of USG/REAP
assistance (Ha)
410,263 240,000 171%
Value of additional financing obtained by the private
sector$15,064,372 $7,000,000
Number of individuals who have received short-term
agricultural training136,756
Number of farmers supplying primary agricultural
products3,351
Value of primary agricultural products supplied by
farmers$5,095,511
Value of new private sector investment in the agriculture
sector
Number of distinct clients purchased products or
services from USG assisted SMEs
Gross incremental sales by USG assisted SMEs (all
type)$46,467,638
Progress
Against
Contractual
Number of jobs created with USG assistance 968
Indicator Actual to date
CNFA 37 AID-114-C-13-00002
Gender and Youth
Led by the REAP Gender Specialist, REAP continues to ensure inclusive enterprise development in all
program activities. In 2015, REAP developed a three-year special initiative ‘Facilitate the Development of
Women- and Youth-owned Agribusinesses 2016-2018’ aiming to facilitate the emergence of agribusiness-
led initiatives, business matchmaking opportunities, and smooth the transition from subsistence to
commercial farming by women and young agricultural entrepreneurs. In PY3, through REAP’s Gender
Platform, that unites more than 40 emerging female entrepreneurs, REAP continued its interventions
through three main pillars: capacity building, leadership development and networking.
Capacity Building
Capacity Building in the Area of Agribusiness Management & Agribusiness Marketing: the
Fundamentals
At the request of Gender Platform members, REAP held a four-day training in Agribusiness Management
& Agribusiness Marketing program that trained 26 female led enterprises on the basic principles of
agriculture management and marketing. Led by a local consultant, this series of training focused allowed
participants to gain hands-on training in basic agriculture business principles and to learn from other’s
successes and challenges in marketing small scale products on the retail level. Due to the importance of
this activity and increased interest from participants, REAP will look to continue agribusiness management
and marketing training in future years.
Capacity Building in the Area of Modern
Agriculture Technologies for Fruit
Production and Processing
Based on member’s interests, this activity was
divided into four separate focused trainings on: 1)
intensive orchard/nursery systems, 2) berry fruits
production and processing, 3)
industrial/commercial dried fruit processing and 4)
apiculture.
Throughout PY3, REAP conducted the following
activities to advance the agriculture skills of
Gender Platform members.
Cultivation and Processing of Berries: Growing Small Fruit Crops: In March 2016, a two-day event was
organized in Kakheti on growing small fruit crops: blackberries, raspberries, and strawberries. The event
combined theoretical training courses and individual consultations/demonstration delivered REAP’s local
horticulture expert and a U.S. volunteer provided by USAID’s Farmer to Farmer Program. Hosted by two
of REAP’s grantees, Cooperative Gile and FSC AgroVita, 43 persons attended the two-day event.
Intensive Orchard/Nursery Systems: Growing Sweet Cherry: In May 2016, REAP organized an event in
Shida Kartli on sweet cherry production. The event included training and individual
Gender Platform annual meeting in Tbilisi
CNFA 38 AID-114-C-13-00002
consultations/demonstration delivered by REAP’s horticulture expert. The host of the event was REAP’s
gender platform member and non-grantee enterprise SP Marika Kandorelashvili. In total 16 persons
attended this event, of which 14 were women. The event also included a closed meeting of members of
sub-group on fruit growing and processing, during which REAP was asked to organize a visit to the
Permanent Crop Research Base of Scientific-Research Center of Agriculture (SRCA) in Jighaura, which is
planned to be organized in the PY4. This visit will allow entrepreneurs to purchase high quality seedlings
for different fruits.
Dried Fruit Processing: A Study Tour with Demonstrating Prune Dehydration: At the end of the PY3, 11
representatives of 8 women and youth-owned agribusinesses and 1 agricultural household participated
in REAP’s study tour held at the industrial drying facility of Eleniksta Ltd. Members of REAP’s strategic
platform had an opportunity to oversee the industrial dried fruit processing process for prunes. The event
also included a presentation on modern fruit drying technologies provided by a PUM expert.
Capacity Building in the Area of Modern Agriculture Technologies for Market-Oriented Apiculture: Per
members’ request and considering recent legislative changes affecting apiculture-related regulations and
practices in Georgia, REAP organized a capacity building event in Adjara on honey bee health. The event
included a training seminar on “Honey Bee Health: Modern Medical Treatments and the Impacts of
Pesticides on Honey Bees”, and an on-site practical demonstration. This training seminar held in late PY3
will allow beekeepers to apply modern practices and to prepare honey bee colonies for the winter.
Leadership Development
Peer-to-Peer Mentoring Meetings
To capture the dynamism among Gender Platform members and to take advantage of a visiting CNFA
Board of Director, REA organized the following peer-to-peer mentoring meetings.
Elin D. Miller – Marika Kodua: In June 2016, Elin D. Miller, a member of the Board of Directors at CNFA
and a hazelnut farmer with experience working with agriculture enterprises conducted a mentoring
session for the owner of Keskia Ltd and Kodu Group Ltd During this session, Ms. Kodua learned from Ms.
Miller’s vast experience in hazelnut farming and agribusiness management.
Chirifruit Ltd –Gile Cooperative: Throughout PY3, Ms. Izoldi Kitesashvili, the owner of Gile Cooperative
was provided with a number of mentoring sessions by non-grantee enterprise Chirifruit on fruit
dehydration. With REAP’s support, Gile Cooperative is adding a fruit drying operation to their business
and the guidance received by Chirifruit will assist the company in overcoming operational hurdles that
constrain new business operations.
Networking and Business Opportunities
Since the launch of its strategic platform, REAP has encouraged networking between its members. REAP’s
Gender Specialist has witnessed women trainees trying to make social and business contacts with each
other. These linkages include mentorship by more senior or more experienced entrepreneur to individuals
who are starting a new business and attempt to turn new connections into deals, etc. One example is
CNFA 39 AID-114-C-13-00002
REAP’s FSC grantee AgroSakhli placing their meteorological station at REAP’s grantee Gemuani’s kiwi
plantation to provide more accurate weather information.
Regional and Country-wide Meetings
Throughout PY3, REAP’s Gender and Youth Team facilitated several regional meetings held in Kakheti,
Shida Kartli, Imereti, Adjara, Guria, Samegrelo and Tbilisi. In total 128 persons attended the meetings.
Platform’s regional meetings aim to provide information on upcoming activities, consult about future
plans, and discuss problems faced by entrepreneurs.
REAP’s 2016 Calendar ‘Women in Agribusiness’
REAP published a 2016 calendar of ‘Women in
Agribusiness’. The calendar highlights 12 grantee and non-
grantee women agricultural entrepreneurs. The calendar
aimed to promote women-owned agribusinesses, raise the
profiles of women in agribusiness at the executive and
ownership levels, and encourage young girls to pursue a
career in agriculture. The calendar was distributed to
donors, REAP’s grantees, the Entrepreneurship
Development Agency of the Ministry of Economy and
Sustainable Development, MoA, APMA, Agency for the Development of Agricultural Cooperatives and 54
local information and consulting centers of MoA.
Raising the visibility of women-owned agribusiness and REAP
Gile Cooperative Izoldi Kitesashvili, the owner of Gile Cooperative credits REAP for gaining the name of the ‘Berry Queen’.
This summer her and REAP were even approached by the Ministry of Agriculture (MoA) to organize a joint
regional event on cultivation of berries, with Izoldi being one of the presenters.
The media already caught in its spotlight some grantee and non-grantee women agricultural
entrepreneurs, members of REAP’s strategic platform. Their overview is provided in the Program Outreach
and Communications section below.
Linkages with Other Key Stakeholders
MASHAV
REAP is actively cooperating with MASHAV. It includes supporting REAP staff members as well as
beneficiaries to attend MASHAV’s courses in Israel. In PY3, three persons attended the following
programs:
Maia Mikava of Ltd. AgroSakhli attended MASHAV’s training program on Agricultural Extension
Methods and Tools. Ltd ‘Agrosakhli’ is a FSC operating in Samegrelo Region where women are
included as extension specialists. According to Maia, the training was a life changing experience
for her and aims to replicate what she learned to improve the quality of extension services she
provides agribusinesses and farmers;
CNFA 40 AID-114-C-13-00002
Shorena Ghvachliani, REAP’s Training / M&E Coordinator participated in MASHAV’s training
program on Entrepreneurship, Marketing and Postharvest Handling in Agriculture”. Shorena
Ghvachliani attended this program to better serve the needs of women and young agricultural
entrepreneurs and will support REAP’s Gender and Youth Team to develop MASHAV’s follow-up
initiative – a study tour to Armenia to learn from the experience of this neighboring country in
producing dried fruit.
REAP’s Gender Specialist participated in MASHAV’s intensive regional workshop organized by
MCTC and CINADCO, entitled - ‘Agribusiness – A Tool for the Empowerment of Rural Women’.
This program aimed to share Israel’s methodologies, interventions, and best practices in the area
of rural women’s empowerment by exploring agricultural entrepreneurship. During field visits,
REAP’s Gender Specialist interviewed women employed in agribusinesses and shared findings
during REAP’s Gender Platform’s regional and sectoral meetings. During April’s four-day capacity
building program REAP’s Gender Specialist organized two sessions to share knowledge gained
from this program a) business model canvas (BMC), a strategic management tool, and b) film
screening and discussion of “Gamila’s Secret”, a brand documentary.
HERA
REAP continues to cooperate with Her Equality Rights, and Autonomy (HERA), a UK charity organization,
which provides micro grants to women
entrepreneurs. As a result of strong cooperation
between the two organizations, HERA organized a
micro grants competition for members of REAP’s
Gender Platform. REAP worked with members to
develop their application and as a result, three women
agribusinesses were selected for a EUR 950 grant to
expand their business. Ltd Chirifruit (see herstory in
the Annex 6) was awarded a matching grant to
purchase an industrial chocolate melting machine, SP Marika Kandorelashvili received a matching grant
to purchase mini cultivator) and SP Ketevan Natsvaladze was awarded a grant to purchase industrial fruit
drying equipment.
SIDA
Marika Kodua, a member of REAP’s strategic platform and REAP’s nominee to participate in SIDA’s
Advanced International Training Programme in Strategic Business Management (SBM), was selected to
attend SIDA’s training program in Sweden. During Marika’s training program she will design the strategic
development plan for REAP’s Gender Platform beyond 2018.
Diaspora
REAP’s grantee women-owned agribusinesses, Santa Ltd. and Gile Cooperative delivered presentations
on their business history at a panel session on “Diaspora Business Mentors and Investments” under the
framework of Second Diaspora Professional Forum “Share our Experience to Homeland” organized by
Office of the State Minister of Georgia for Diaspora Issues. REAP’s former COP presented these two REAP
grantee women-owned agribusinesses to the audience and made a brief introduction on REAP to
members of Georgian diaspora and the audience.
HERA award ceremony at REAP's office
CNFA 41 AID-114-C-13-00002
Development of Gender Integration Plans for Grant Recipients
The REAP Gender Specialist finalized the development of gender integration plans for all successful grant
applicants. The plans are tailored to each successful grant application which is included in each investment
proposal. REAP’s Gender Specialist will follow up with grantees on their gender integration plans during
field visits in PY4 and PY5.
Access to Finance
With REAP’s grantees financially equipped to meet their cost-share obligations and to fund their working
capital needs, REAP’s access to finance assistance focused mainly on following up with Bank Republic on
the implementation of their Agriculture Strategy, on providing direct TA to FSC grantees to more
effectively manage their loans to farmers and to support the identification of proper accounting and
inventory management software.
Bank Republic
In PY3, Bank Republic's management reported
formal adoption of REAP's agriculture lending
strategy by its Chief Executive Officer (CEO),
the formation of an Agricultural Business Unit
and streamlined approval and disbursement
processes in accordance with the strategy that
Bank Republic received as a result of REAP’s
assistance provided in PY2. To date, the Bank
Republic has increased the value of its
agriculture loans by 9M GEL.
Enterprise Resource Planning (ERP) System
Advancing Georgian businesses' accounting skills and software is essential to upgrading their operational
efficiencies and ensuring sustainability. With more than 7,000 unique clients each year and more than 100
products in stock, it is imperative that FSCs accounting and inventory management capabilities keep pace
with growing enterprises. Because of large inventories and diverse methods of payment, proper
accounting and inventory management is needed to streamline and improve accuracy of tax, finance, and
managerial accounting. Proper accounting and inventory management will also improve enterprises’
ability to forecast and analyze current income, balance sheet, and cash flow statements. To improve the
ability of REAP's grantee FSCs, in PY3 REAP piloted the installation and training of a modern Enterprise
Resource Planning (ERP) system at three companies (AgroKartli, AgroService and Alva). Supported by a
local accounting software system's experts, REAP provided tailored consultancies to customize and adapt
the ERP systems to company specific businesses processes, including establishing a standard for
accounting transactions, customizing reporting templates and training staff in the system’s functions and
maintenance. Based on the adoption of the ERP system and feedback from the FSCs, in the PY4 REAP will
look to expand ERP systems to other FSCs and cold storage enterprises.
8,967,322
20,799,627
BR Portfolio With New Strategy
New Agriculturalstrategy lending
PreviousAgriculturalPortfolio
CNFA 42 AID-114-C-13-00002
Portfolio Management System
One of the major objectives of REAP’s Summit organized in PY3 was to identify areas where grantees need
assistance and support. One of such areas discovered from this summit is to set up account receivables
(AR) portfolio management systems for FSCs. On average, each FSC serves more than 7,000 farmers each
year and offers commodities on a consignment basis to some of their clientele. With the development of
different services and expansion of commercial linkages between smallholders and service providers, FSCs
face increased financial risk related to unreliable clients and bad loans. Based on current statistics, FSCs
bad loans make around 20% of their total AR portfolio and consignment based input sales make almost
40% of their total sales. Consequently, in order to ensure the sustainable growth of the FSC business, it is
highly important for them to manage their AR portfolio in a professional manner. To improve the quality
of FSCs’ loan book, in PY3 REAP assisted FSCs with the creation of an Account Receivables Policy. Included
in this policy is the proper identification of solvent clients, developing contracts between FSCs and
farmers, putting in place proper client monitoring practices, and developing a non-repayment protocol
through the local credit bureau or local courts. Training on this policy will commence in PY4.
Financial Management Training
To equip agribusinesses with improved financial management skills, REAP organized a two-day training
course for 26 managers from 23 REAP and APMA beneficiary companies. Topics covered in these two
training courses included: management accounting, structuring and analysis of financial statements, time
value of money, and structuring and budgeting equity.
Environmental Management and Monitoring
REAP continues to provide environment monitoring and oversight for all new and existing grantees. During
Year 3, REAP’s Environmental Specialist focused on the following activities:
Developing Environmental Review Checklists (ERCs): ERCs were developed and subsequently approved
by USAID for all 12 grant projects from rounds 005A and 005B. ERCs are embedded within the investment
proposal and contains an assessment of environmental risks and mitigation measures during the grant
project.
Monitoring of Existing Grant Projects: REAP’s Environmental Specialist and Regional Coordinators
monitored construction of grant projects awarded under all rounds in accordance with the grant projects’
respective Environmental Monitoring and Mitigation Plan (EMMP). REAP conducted 87 monitoring visits,
consisting of recommendations and on-site consultations to grantees. Each grantee was visited at least
once and some of them several times at various stages of project implementation (design, construction,
operation). As a result of the monitoring visits, it was identified that the majority of mitigation measures
were applied by the grantees. No hazards and environmental risks were identified during the site-visit.
However problems with regards to respecting worker safety regulations and an absence of the required
number of waste containers, fire control and fire-fighting equipment was observed. Respective
recommendations were provided to each grantee and reflected in site memos. The implementation of
recommendations provided by REAP are closely observed by the respective Regional Coordinators.
CNFA 43 AID-114-C-13-00002
PROJECT YEAR 3 ENVIRONMENTAL MONITORING IMPLEMENTATION SCHEDULE
Regions Q1 Q2 Q3 Q4 Total
West Georgia 7 5 3 7 22
Kakheti 4 5 6 4 19
Kvemo Kartli 4 4 3 3 14
Mtskheta Mtianeti 2 1 2 5
Samtkhe Javakheti 2 7 3 2 14
Shida Kartli 3 2 5 2 12
Tbilisi 1 1
Total 21 25 21 20 87
Workforce Development
FSC Agronomist Assessment
Recognizing the bottleneck in Georgian agriculture development caused by the lack of qualified
agronomists, REAP, through a local consultant conducted an assessment of FSCs’ agronomists. Within the
frame of this assessment all 29 FSCs were surveyed. Based on identified training needs and
recommendations provided by the consultant, REAP has included continuing education activities for FSC
agronomists in the PY4 work plan. This targeted training program will improve technical knowledge of
agronomists as well as improve their awareness of modern technologies.
REAP Internship Program
In PY3, REAP continued its internship program that serves as a valuable tool for both students and project
staff. As a result of REAP’s internship program, students are able to augment and strengthen their
theoretical knowledge while working in an international organization in different technical areas, being
exposed to and work with international experts, while REAP benefits by acquiring additional staff support
from a high quality group of young professionals.
Since 2013, REAP has announced 6 calls for the internship program, receiving more than 1,000
applications. 72 successful applicants have been engaged through REAP’s central and regional offices
where these students, while assigned to the professional
staff, are involved in 10 technical areas and are
contributing to the successful accomplishment of REAP’s
activities. With improved skills and knowledge, 39
graduates of the internship program have successfully
gained full-time employment and 5 students have been
selected to attend international exchange programs.
Please see Annex 7 for a list of interns in PY3.
Mariam Kutelia Research Grant
To provide professional development opportunities for young students and to advance research in
Georgia’s agriculture sector, REAP offers the opportunity for students to apply for a research grant named
in honor of Mariam Kutelia, REAP’s intern who passed away during the flood in June 2015. To date, REAP
Mariam Kutelia Grant award ceremony
CNFA 44 AID-114-C-13-00002
has awarded three research grants to advance knowledge in ICT in agriculture, adoption of food safety
regulations and the commercial skills of smallholders.
Facilitating Employment Opportunities for Recent Graduates
In addition to the in-house internship program, REAP successfully provides linkages between grant
recipient agribusinesses and students from the Agricultural University of Georgia. In PY3, REAP supported
FSCs (I/E Giorgi Stepniashvili, Alva Ltd, Agroservice Ltd and Agrovita Ltd) to employ four recent graduates
of the university as agronomists at the FSC.
During the lifetime of the project, REAP will continue its efforts to integrate more young people in the
labor market and provide them new professional opportunities as they complete their training.
Program Outreach and Communications
REAP actively participates in and engages media in outreach events to demonstrate the success of REAP
and the impact of USG assistance on Georgian agriculture. Through conducting site visits with government
officials, representatives from the media and other stakeholders, REAP is able to transmit its success to a
wider audience. In addition, REAP participates in local trade shows and fairs, allowing Georgian citizens
and business owners to learn about REAP-supported enterprises. Details on outreach events and site visits
may be found below.
USAID Annual Farmers’ Market
REAP was pleased to organize the participation of 11 supported enterprises to take part in USAID’s Annual
Fair where USAID and US Embassy workers had the opportunity to meet beneficiaries and purchase fresh
products. REAP supported companies sold cheese, hazelnuts, juice, tea and the favorite Georgian snack
Churchkhela to a crowd of happy new, and hopefully repeat, customers. The income generated by REAP
beneficiaries during this event exceeded 3000 GEL.
Annual International Exhibition for Agro, Food, Drink Tech Expo 2015
In November 2015, REAP supported participation of five
grantees: Santa, Georgian Fruit Company, Lomtagora,
Campa and Herbia, in the 15th International Exhibition
for Agro, Food, Drink Tech Expo 2015, held on the
premises of Expo Georgia. This well-recognized event in
the region is organized on an annual basis and gathers
manufacturers, producers and experts from different
countries and provides opportunities to launch new
products on emerging Caucasus market. REAP was
pleased to receive an award from the Georgia Agro
Forum 2015 “for the best initiative”, representing both,
effective REAP support of, and participation in the Forum.
REAP grantees participation in Expo 2015
CNFA 45 AID-114-C-13-00002
REAP Grantees Showcase Products at CNFA Georgia
10 Year Anniversary Conference
As part of CNFA Georgia’s celebration of 10 years of
development assistance in Georgia, 20 REAP grantees
participated in an agricultural fair attended by the Prime
Minister of Georgia, USAID, US Embassy Staff, CNFA
Board of Directors, and members of the donor and
development community. REAP was pleased to
showcase the products produced by these enterprises,
made possible with USAID’s support.
Georgian Hazelnut Growers Association (GHGA) First Annual Conference
In order to increase awareness on the Georgian Hazelnut Growers Association’s (GHGA) activities, as well
as share their vision on development of the hazelnut sector, REAP assisted GHGA to organize its first
annual conference in Anaklia. The conference was attended by more than 250 growers, hazelnut
processors, foreign and local specialists, the Deputy Minister of Agriculture, USAID representatives, NGOs,
insurance companies, financial institutions, and input suppliers. The newly awarded GDA between USAID,
Ferrero and CNFA will provide leadership in future GHGA and hazelnut sector conferences.
The Future Leaders Hazelnut Program
Upon the completion of the Future Leaders Hazelnut Program,
REAP organized the graduation ceremony for the students at the
premises of Agricultural University. The Deputy Mission Director,
the General Manager of AgriGeorgia and the Rector of
Agricultural University distributed certificates of successful
accomplishment to all participants of the training program. The
General Manager of AgriGeorgia, Mr. Dellacha announced the
continuation of the Future Leaders Hazelnut Program as well as
employment opportunities for successful graduates.
Project openings and site visits
Throughout PY3, REAP hosted various project openings and official visits by USAID and Department of
State officials and the Minister of Agriculture. REAP was pleased to have positive feedbacks from high
level guests and visitors at the following events.
Opening of Geoflower Ltd
In the beginning of the PY3, REAP held an official ribbon cutting ceremony to mark the opening of a newly
established drying facility located in Ambrolauri, Racha Region. The opening ceremony was attended by
USAID/Caucasus Contracting Officer and local municipality representatives. With REAP’s support,
Geoflower Ltd upgraded its processing lines and established a modern cold storage facility that will enable
Hazelnut Program Graduation Ceremony at
Agriculture University
Prime Minister and CNFA’s Board of Directors at
REAP's grantee fair
CNFA 46 AID-114-C-13-00002
the company to collect and process wild fruits, citrus,
herbs and roots from smallholder farmers from rural
areas. As a result of this activity, more than 120
collectors from rural areas are benefitting via supplying
wild fruits, herbs and roots to Geoflower.
Ribbon Cutting Ceremony of Alva FSC/MSC
In early Q1 of the PY3, REAP hosted an official ribbon
cutting ceremony for the newly established FSC/MSC
facility located in Sachkhere, Imereti Region. The
opening event was attended by the Deputy Government of
Imereti Region. Alva’s expanded FSC/MSC enables smallholder farmers to access a wide range of products.
Alva’s new services include plant protection products, improved mechanization, and a real-time disease
control system. Over PY3, about 8,000 new farmers have benefited from improved access to inputs and
machinery services and 4,000 small and medium size farmers have received consultations on agricultural
production from Alva. A video of the opening may be found here.
US Ambassador, Mission Director and US Senate Foreign Relations Committee Members Visit to
AgroKartli FSC
In PY3, REAP’s grantee AgroKartli hosted two events with the new US Ambassador, Ian Kelly and USAID
Mission Director, Douglas Ball, and two staff members from the US Senate Foreign Relations Committee,
John Rader and Ben Purser. The distinguished guests received a tour of the facility from AgroKartli’s owner
and had an opportunity to hear from local farmers on how AgroKartli’s FSC is contributing to the
agriculture development of the villages surrounding Gori. Located less than 20 KM from the
Administrative Boundary Line (ABL) with South Ossetia, AgroKartli provides high quality inputs and
technical trainings to vulnerable farmers affected by international geopolitics.
Jonathan Katz’s and Alina Romanowski’s visit to AromaProduct Ltd
Early in PY3, Jonathan Katz, USAID’s Deputy Assistant Administrator for the Bureau for Europe and Eurasia,
and later, as a follow on to Mr. Katz’s visit, Alina Romanowski, Coordinator for U.S. Assistance to Europe
and Eurasia, visited the REAP supported fruit processing/juice making company – AromaProduct. The
company is an exporter of high quality natural juices, jams and preserves, dried spices, and other boutique
products. AromaProduct is buying raw materials such as pomegranate, cherries, and other high quality
fruits from farmers across Georgia. To expand AromaProduct’s business and link them to new suppliers,
REAP provided AromaProduct with a matching grant enabling the company to expand their business line
and improve the quality of their products in order to meet international standards. The company exports
their products all over the world including USA, Australia, Hungary, Italy, Latvia, and China.
Guests test Geoflower’s produce, Opening
ceremony in October 2015
CNFA 47 AID-114-C-13-00002
USAID Assistant Administrator, Thomas Melia, Visits REAP Supported Agrokartli and CAMPA
REAP was pleased to host USAID’s Assistant Administrator
(AA), Thomas Melia, and USAID/Georgia’s Mission
Director, Douglas Ball, as part of the U.S. - Georgia
Strategic Partnership Commission's Economic, Trade and
Energy Working Group. As part of the AA’s visit to Georgia,
Mr. Melia toured two REAP supported enterprises,
Agrokartli and CAMPA, where he met with beneficiaries of
USG assistance to Georgia. With the support of REAP, the
Agrokartli FSC in Gori expanded to offer additional input
and mechanization services to more than 10,000 local
farmers. During his visit to Agrokartli, the AA spoke with local farmers about the challenges they face living
and working along the Administrative Boundary Line (ABL), as well as the benefits of continued USG
assistance. And, at CAMPA, the AA learned about and tasted new juice products sourced from wild fruits
picked by local farmers in the mountainous municipality of Stepantsminda. With REAP’s support, CAMPA
established a mobile collection center in Stepantsminda that is providing additional income to this
vulnerable community.
US Ambassador and the USAID Mission Director’s visit to
Herbia
REAP was pleased to host his Excellency the US Ambassador and
the USAID Mission Director at greenhouse grantee Herbia, who
with USAID’s support launched a new packing facility to market
greenhouse herbs. His Excellency and the USAID Mission
Director received a guided tour of the new packing facility and
had the opportunity to pick tomatoes and herbs at Herbia’s
greenhouse.
REAP Grantees Host USAID Deputy Mission Director
USAID’s Deputy Mission Director, REAP’s COR and the U.S. Embassy’s Political and Economic Chief visited
REAP’s five grantees (Farkoni, AgroPharm+, AgroInvestService, Primary Producer Valerian Mgeladze and
FSC Zeinab Tsikoridze) in Imereti, Guria and Adjara regions. The five projects visited represented each of
REAP’s four priority directions (FSCs, primary production, processing and information service providers).
During the site visits, the Deputy Mission Director interacted with the grantees, observed their progress,
and tasted their products.
Geoflower and Farkoni Host USAID Delegation
In late PY3, REAP was pleased to host a USAID delegation led by the Mission Director on two site visits to
REAP-supported enterprises Geoflower and Farkoni. During the visit, the delegation received guided tours
Mr. Tomas Melia visits Campa
Ambassador and Mission Director at
Herbia's packing facility
CNFA 48 AID-114-C-13-00002
by the enterprise managers, interacted with beneficiaries and tasted freshly dried berries and applies as
well as phtyo-teas. Together, these enterprises support the livelihoods for more than 1,000 rural Georgian
families, providing important economic opportunities in vulnerable communities in Georgia.
REAP Grantee Santa Hosts USAID Representatives
In late April, REAP grantee Santa Ltd, located in a remote area of Tsalka district, hosted a group of USAID
representatives at their factory. Guests were able to observe the Gouda cheese-making process, test
other dairy products produced by Santa, and observe the ways the company has revitalized the
neighboring villages with employment and other economic opportunities. Without Santa and the support
they have received from USAID, this village would cease to exist.
QSI Students Tour CAMPA Facility
REAP’s grantee CAMPA hosted sixth grade students from the QSI
International School of Tbilisi. Students received a guided tour by
CAMPA’s owner and founder, David Buadze, who provided
information on juice production and entrepreneurship, and enjoyed
a tasting station featuring a selection of CAMPA’s juices.
Chef Ben Ford’s visit to Georgian Fruit Company
In early PY3, visiting Chef Ben Ford toured the REAP funded Cold
Storage Facility – Georgian Fruit Company Ltd, located in Kakheti
Region. Georgian Fruit Company Ltd collects fruits from smallholder
farmers and has already purchased more than 720,000 kg in fresh
fruit from Georgian farmers this year.
Minister of Agriculture visited APMA/REAP supported company
Minister of Agriculture Mr. Levan Davitashvili visited REAP funded Iberia Fruits Ltd. REAP, in collaboration
with APMA, contributed to the establishment of this processing facility located in Dusheti Municipality.
Operating in one of the most vulnerable mountainous areas of Georgia, Iberia Fruits is providing the local
population with additional sources of income, while contributing to employment growth in the region. As
of today, more than 80 local farmers from Tianeti, Kazbegi,
Dusheti Municipalities and Kvemo Kartli region are suppling
Iberia Fruits with apples, sea-buckthorn, rosehip and
licorice roots. The company has already employed 12
individuals from the local community, including 5 women.
REAP Video Production
In PY3, REAP continued working with two video production
companies to document project activities. The video
production companies cover the progress of grantees from
QSI students at Campa
Minister of Agriculture visits REAP/APMA
funded Iberia Fruits
CNFA 49 AID-114-C-13-00002
the initial construction through final operation process. These videos will be produced in English with
Georgian subtitles and will both document REAP’s story and promote USAID’s work in Georgia. Below is a
list of representative companies being filmed to tell the REAP story:
REAP Grantee Short Film Production
After Ambassador’s and Mission Director’s visit to Herbia, U.S. Embassy decided to produce a video on REAP’s grantee Herbia and follow one herb from the field to a table. REAP believes these high quality videos serve as a great mechanisms for showcasing USAID’s assistance and impact on Georgia’s agriculture sector and REAP looks forward to working with the U.S. Embassy on videos depicting other
grantees in the future.
REAP Grantees and Supported Enterprises in the News
Throughout the PY3, some grantee and non-grantee enterprises supported by REAP were featured by a number of TV broadcasters and the press:
Nona Tordia, Owner of Gemuani, Grantee: http://1tv.ge/ge/videos/view/160203.html, http://www.bpn.ge/persona/21541-filologi-qalis-kivis-plantaciebi.html, http://cbw.ge/business/the-first-plant-of-innovative-drying-technology-to-build-in-samegrelo/
Coverage of REAP’s Training event on Berries: Gurjaani TV https://www.youtube.com/watch?v=k2cvcn1YbMw
Grantee Gile: http://www.georgianjournal.ge/business/32282-european-market-needs-indefinite-amount-of-georgian-blackberries.html
Non-grantee Chirifuit: Business Contact http://businesscontact.ge/ka/article/quotchirifrutiquot-tutis-chiris-warmoebas-gegmavs/2212)
Non-grantee Chirifruit: TV Show Sakmiani Dila https://www.youtube.com/watch?v=G2C87J2CJjE Non-Grantee Keskia and Kodu:
https://www.youtube.com/watch?v=G2C87J2CJjEhttps://www.facebook.com/2030official/videos/772512789552207/)
Maia Mikava, Owner of AgroSakhli, Grantee: http://www.myvideo.ge/?act=dvr&chan=gpb2hq&seekTime=27-03-2016+12%3A46
REAP Grantees Filmed Processing Enterprises Women Owned
Enterprises FSC/MSC Cold Storage
Facilities Internship Program
LTD AgroPharm + LTD AgroExport LTD AgroInvestService LTD Geoflower LTD Herbia LTD AromaProduct LTD Campa LTD Farkoni
LTD Santa SP Marina Akolashvili Gile Cooperative LTD Dr. George Lab SP Ia Urushadze LTD Zoreti
LTD AgroSakhli LTD Agrokartli SP Omanashvili LTD Agroservice LTD RAS SP Zurab Tetvadze SP Ambrosi Macharashvili
Cooperative GFC LTD GFC LTD Eleniksta LTD Iveria
Mariam Kutelia Grant Award Establishment of Intern Program and Future Hazelnut Leaders’ 2015-2016 Program
US Embassy crew filming Herbia's facility
CNFA 50 AID-114-C-13-00002
Herbia was featured in the international publication Farming First about how USAID assisted the
company to adopt and utilize new technologies to increase their sales and purchase of herbs
from smallholders. http://www.farmingfirst.org/science-and-innovation#section_5
Interview with Izoldi Kitesashvili, agricultural cooperative ‘Gile’, by Shorena Labadze, the same article was published through Internet media resources:
http://www.allnews.ge/ეკონომიკა/145863-ევროპის-ბაზარი-ქართული-მაყვლის-
განუსაზღვრელ-რაოდენობას-ითხოვს.html, http://www.georgianjournal.ge/business/32282-european-market-needs-indefinite-amount-of-georgian-blackberries.html
Key Constraints:
No major programmatic or operational constraints were observed throughout PY3.
Financial and Expenditure Summary:
USAID Contract No.: AID-114-C-13-00002
Date of Issuance: October 1, 2013
Total Potential Amount: $19,589,463
Total Funds Expended through 09/30/15: $13,144,568
Total Funds Expended in Year 3: $4,779,817
Total Projected Funds to be Expended in Year 4: $3,945,365
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Annex 1: REAP Organizational Chart
52
Annex 2: REAP Grantee Map
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Annex 3: REAP Non-Grantee Map
CNFA 54 AID-114-C-13-00002
Annex 4: Brief Characteristics of Targeted Demonstration Plots and Key Outcomes
Demonstration Plot Major Crop Applied technology/practices Outcome
FSC AgroKartli Ltd Maize Tomatoes New seed materials/Varieties, Mini-Till technology Plastic mulch and Drip irrigation system
3 field days were arranged at the demoplot during the reporting period, attended by a total of 92 farmers. According to follow-up discussions with the community of farmers, about 23 smallholders already followed mulching practice and 25 more commercial farmers planned to arrange irrigation systems at their farms. AgroKartli Ltd sold 700 tons of tomatoes grown utilizing new technologies in 2016 harvest season which makes up 35% increase compared to last year. Maize will be harvested in late October.
FSC SP Zurab Tetvadze
Wheat Sunflowers Beans
New varieties Mini-Till and No-Till technology
The firm operates model demo plot where different crops are produced using modern agriculture technologies. For wheat, soya and haricot beans planted on 2 hectares, the farmer utilized minimum tillage technology as the most suitable technology for soil and considering local climate conditions. Applied technology showed excellent results in terms of yields and cost-effectiveness.
More than 200 farmers attended four farmer field days arranged at the demoplot during Y2 and Y3 of REAP’s operations. As a result of REAP’s and FSCs’ joint efforts, local farmers plan to plant wheat and barley on 250 hectares utilizing No-Till technology. The same crops will be planted this year on about 500 hectares using Mini-Till technology.
SP Zurab Tetvadze sold 3 tons of sunflowers per ha grown with the utilization of new technologies on 2016 season that makes 27 % increase compared to last year.
CNFA 55 AID-114-C-13-00002
Lomtagora Ltd
Wheat Mini-Till technology Lomtagora set aside 2 ha of land to showcase the differences in yield and production costs between traditional and minimum tillage cultivation practices. Through participation in REAP’s field days dedicated to grain production practices, Lomtagora established commercial linkages with the FSCs operating in Kakheti region, and are now supplying them with local varieties of corn seeds. During the reporting period SP Zurab Tetvadze purchased 10 tons of wheat seed that resulted in productive harvest, yielding interest among local farmers. Lomtagora Ltd produced 4.8 tons of wheat per ha utilizing Mini-Till technologies in 2016 season that makes 20 % increase compared to traditional production within the same period and the same plot.
FSC SP Seriozha Esoyan
Wheat Mini-Till technology Potato is the major subsistence and commercial crop in Samtskhe-Javakheti region. Modern soil cultivation practices became popular in recent years among local farmers, who are willing to start seeding cereals for the crop rotation purposes. SP Seriozha Ezoyan attended REAPs’ farmer field days arranged in Dedoplistkharo region and decided to promote minimum-tillage practice through demonstration plot arranged near his REAP supported FSC. According to Seriozha Ezoyan, there is growing interest towards new farming methods among the FSCs client farmers. Accordingly, 6 tons of wheat per ha was harvested on the mini-till plot in 2016 season against standard 4.6 tons harvested on tilled plots, making up a 22 % difference in favor of modern mini-till technology.
CNFA 56 AID-114-C-13-00002
FSC Deveplus Ltd
Potato Mini-Till technology REAP, jointly with Deveplus Ltd organized a 4 ha demonstration plot to showcase production of new varieties of potato utilizing minimum – tillage and sprinkle irrigation. According to the FSC’s follow–up discussions with local farmers, more and more smallholders are seeking specific consultancies related to modern soil cultivation methods and irrigation systems. Deveplus Ltd produced 42 tons of potatoes per ha utilizing mini-till technologies and sprinkler irrigation systems in 2016 season, making up a 25 % increase compared to traditional production within the same season on the same plot.
FSC Rural Advisory Service Ltd.
Onion Broccoli Potato
Mini-Till technology Mulching Drip irrigation system
Minimum-tillage technology and drip irrigation systems became very popular in Samtskhe-Javakheti region due to their economic efficiency and environment friendly aspects. More than 150 farmers attended three farmer field days arranged at the demoplot during Y2 and Y3 of REAP operations. As a result of REAP/FSC’s joint promoting efforts, 40 local farmers applied mulching in vegetable production during 2015-2016 season and about 15 farmers plan to introduce irrigation systems and minimum-tillage cultivation at their farms. Application of new technologies and practices helped Rural Advisory Service enhance its operations. As of today Rural Advisory Service’s crop production shows significant increase compared to last season:
Onion - 75 tons per ha, 30% growth Potato – 55 tons per ha, 35% growth Broccoli – 12 tons per ha, 15% growth
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Annex 5: Monitoring and Evaluation
M&E
Overview
REAP PY3 Performance Report describes the work conducted by the program towards its strategic goal,
objectives and sub-objectives as described in REAP’s Results Framework, and summarizes the
achievements though performance indicators and descriptive narrative. REAP’s strategic goal, overall
objective and sub-objectives are outlined below.
REAP Goal: Development of commercially sustainable and competitive agribusinesses
REAP Overall Objective: Increased Employment and Incomes in Rural Areas
Sub Objective 1: Sustainably increase the availability and utilization of agricultural inputs, services and technical information among small-holder and emerging commercial farmers
Sub Objective 2: Improve the business operations, quality and profitability of beneficiary agribusinesses
Sub Objective 3: Increase skills, yields and incomes of farmers linked to assisted businesses
Sub Objective 4: Increase employment opportunities in rural areas
In PY3 REAP completed its grants giving activity, resulting in 70 successful grant projects. The project
started to provide necessary inputs to them in terms of grant funds and technical assistance which allowed
48 of them to become fully operational and to provide performance data according the requirements of
REAP’s M&E system. The rest 22 grant projects are still in their mobilization phase and their full scale
activities are anticipated to roll out in PY4, although some relevant data have been collected from them
already.
M&E Manager has collected, reviewed and analyzed data on the activities of those 48 grant projects, their
milestone achievement, outcomes and outputs. Here we are presenting findings to USAID in such a way
that “telling of the REAP story” is supplemented and reinforced with appropriate tables and charts.
In order to track the performance of grant projects REAP continued to utilize the comprehensive M&E
system elaborated in PY1 including PMP (Performance Monitoring Plan) with 31 indicators that relate to
REAP’s strategic goal, objectives and sub-objectives.
At the end of PY3, USAID FTF indictor handbook has been modified and REAP was requested to add 5 new
indicators to the program’s PMP outlined below:
1. EG.3.1-2 Hectares under new or improved/rehabilitated irrigation or drainage services as a result of USG assistance
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2. EG.3.2-3 Number of MSMEs, including farmers, receiving agriculture-related credit as a result of USG assistance
3. EG.3.2-5 Number of public-private partnerships formed as a result of USG assistance 4. EG 3.2-21 Number of firms (excluding farms) or civil society organizations (CSOs) engaged in
agricultural and food security-related manufacturing and services that have increased profits or became financially self-sufficient with USG assistance
5. EG.3.2-23 Value of targeted agricultural commodities exported with USG assistance
All new indicators except # 1 have been added to the project PMP, reflecting current achievements and
future year targets. The first indicator is not relevant to REAP as far as its interventions are not targeted
to the improvement/rehabilitation of irrigation or drainage services in Georgia. REAP’s updated PMP may
be found in a separate Excel file submitted along with this report.
Initial data collection was conducted by REAP Field Coordinators along with M&E team members. To
ensure the validity of data quality and proper collection methodology, at the end of PY3 REAP’s M&E
Manager conducted site visits to all 70 grantees to verify and report total annual performance data for
the period of October 2015-September 2016. Among these 70 projects only 48 are fully operational and
therefore PY3 results are based on current group of 48 operational grant projects.
Currently, REAP’s updated PMP has 31 + 4 (new) indicators, 35 in total. Among newly added indicators
are those requested by the USAID and includes some performance data (where applicable) and future
year targets.
As of today REAP’ enterprises have shown the following progress against the program performance
targets:
2 Value of additional financing obtained by the private sector $1,802,975 (PY3) and $15,048,372 (to date) Achieved 78% of PY3 target of $2,300,000 and in total exceeded contractual LOP target $7,000,000 by 115 %
To date 39 grant recipients in total accessed more than $8,4 M in new commercial finance and one non-
grantee enterprise “Stimor” after REAP’s technical assistance leveraged $ 7 M new commercial finance.
As a result at the end of PY3 REAP has already exceeded its LOP target by 215 %. The below table
summarizes new commercial loans obtained in PY3 and as of today by REAP’s grantees, broken out by the
business direction:
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In PY3 15 Grant project have leveraged $1, 802,975 new commercial finance in total and all these funds
were used particularly for business activities related to REAP’s grant program. Besides, as a result of
REAP’s technical assistance to non-grantee enterprises, “Stimor” obtained $ 7 M in loans to support its
own greenhouse business project. In total REAP has helped to leverage more than $ 15 M new commercial
finance in Georgian agriculture. The table below shows disaggregation of loans per each direction:
Loans per direction PY3 - 2016 Total PHHP Wholesalers/processors 1,395,612 5,485,992 FSC Local traders/assemblers 398,362 2,460,001 PP Producers 9,000 25,908 ISP Others 0 76,471
Total 1,802,975 8,048,372
3 Number of MSMEs receiving USG assistance to access loans – 49 (PY3) and 120 (to date) Exceeded PY3 target 15 by 226 % and in total LOP target 105 by 16 %.
In PY3, 49 grantee have received assistance to access commercial finance from different financial
institutions in Georgia and 28 of them were successful. However, targets for this indicator in upcoming
years are expected to be much lower. This is explained partly with the fact that most of REAP’s grantees
have already utilized most of loans necessary for the project. Also, APMA’s cheap loan program has
changed some schemes of financing and for example cancelled loans for current assets financing in
primary production; also all kind financing of dairy and beef cattle farming was canceled, except of import
of high yield dairy and beef cattle.
This changes has significantly affected agro sector financing and will affect REAP’s PMP data related to
commercial finance.
3. EG.3.2-3 Number of MSMEs, including farmers, receiving agriculture-related credit as a result of USG assistance – 45,605 (PY3). We did not have targets and previously collected data under this indicator.
There is a correlation between this and new proposed indicator: EG.3.2-3 Number of MSMEs, including
farmers, receiving agriculture-related credit as a result of USG assistance. With the difference that under
the last one REAP counts farmers as well, not only grant recipient companies. These farmers are mainly
PHHP77%
FSC22%
PP1%
ISP0%
Non Grantee
0%
NEW LOANS IN PY3- $1,802,975
PHHP36%
FSC16%
PP0%
ISP1%
Non Grantee
47%
TOTAL NEW LOANS $15,048,372
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clients of REAP assisted FSCs and therefore constantly receive consultations and assistance to apply for
the commercial finance through those partner microfinance organizations which are represented in the
FSC facilities.
4. 4.5.2-38 / FTF - Value of new private sector investment in the agriculture sector leveraged by
REAP – $9,801,562 (PY3) and $19,249,461 (to date)
Exceeded PY3 target $ 6,500,000 by 51% and in total exceeded LOP target $14,000,000 by 37 %. Grant projects from last 3 rounds have made significant progress against their cost-share obligation. For the end of PY3 these grantees have reported more than $9, 8 million in new private investments which makes 81% of their committed investments within REAP program.
In addition to this, as a result of REAPs’ cost-shared technical assistance, more investments have been leveraged from grantee and non- grantee enterprises in terms of cost-share contribution:
Grantee companies have leveraged additional – more than $ 20,000 and Non-grantee companies have leveraged – about $ 100,000
The cumulative value of new private sector investments committed by 70 grantees was $17,327,086 M
against contractual LOP target of $14 M. Through PY3, REAP exceeded its contractual target ($14M) by 37
%, committed amount by 11% and the PMP target ($16, 5 M) by 16%.
PY3 was second full scale year for most of our operational grant projects, although during coming years
REAP anticipates to observe significantly higher performance in all aspects of their business activity. In
PY3, REAP grantees have started to record significant increases in gross incremental sales of inputs and
machinery services. Also, cash market value for farmers shows pretty remarkable progress, which
consequently contributed to over performance in both key indicators:
5. Outcome / PPR /Sub-IR 2.2.1 - Gross incremental sales by USG assisted SMEs (all type) -
$27,510,870 (PY3) and $46,467,638 (to date)
Exceeded PY3 target $14,500,000 by 90 % and a contractual LOP target $40,000,000 by 16 %
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
LOP target (PMP) LOP target(contractual)
Committed Actual to date PY3 actual
$16,500,000
$14,000,000
$17,327,086 $19,249,461
$9,801,562
New Private Sector Investment
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SMEs have been considered one of the “driving forces” in modern economies due to their contributions
in terms of technological upgrading, product and process innovations, employment generation, export
promotion, etc. The indicator shows how SMEs supported by USG are developing. Except to determine
the baseline, pre-existing sales have not been counted; only incremental sales facilitated by the project
should be considered.
In PY3 by REAP assisted MSMEs more value in sales is recorded than was projected due to fact that more
grant recipient companies are shifting into higher gear and entering into new markets as a result of REAP’s
technical assistance. Also FSCs are attracting more commercial farmers, providing more improved inputs
and services to them.
6. Outcome / PPR / 4.5.2-23 / F/FTF- Value of incremental sales (collected at farm-level) attributed
to FTF implementation - $3,082,409 (PY3) and $5,095,511 (to date)
Exceeded PY3 target $3,000,000 by 3 % and in total achieved LOP target $10,000,000 by 51 % In PY3, 2,116 new farmers supplied more than 5,500 tons of agricultural products to REAP assisted PHHPs
worth more than $ 3 M. REAP exceeded original targets for PY 2016 as more PHHP grant projects have
become fully operational and increased their scale of
operations both in local and international markets.
This number also included $ 939,130 cash market
created in Samgrelo region by GHGA as a result of
REAP’s joint program that benefited GHGA and their
member producer farmer.
For the PY3 breakdown by the crops supplied by
farmers to REAP’s assisted PHHPs is as follows:
Within this indicator REAPs is reporting value and
volume of agricultural products sold by farmers to the
program assisted post-harvest handling and processing
enterprises. Collected performance data shows 98%
increase in generated cash market and 55% increase in
commodity volumes (metric tons). However, average
$- $5,000,000 $10,000,000 $15,000,000
PHHP
FSC
PP
Cash market
$10,895,666
$13,391,408
$141,386
$3,082,409
Total New Sales per Direction
Variety of crops Volume (Kg) Value (Gel)
Cereals 300.00 5,400.00
Tree Fruit 2,943,074.00 1,493,782.00
Vegetables 70,585.00 473,425.00
Subtropicals 1,361,829.00 936,569.00
Horticulture 62,727.00 352,572.00
Medicinal Herbs 811,887.00 1,386,485.60
Animal Products 72,322.00 66,980.00
Total 5,322,724.00 GEL 4,715,214
2,143,279$
939,130$
Total 3,082,409$
Non-grantee (GHGA)
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unit price of commodities sold by farmers has slightly went down by 0.02 GEL, which might be caused by
the depreciation of local currency. During FY 2017-2018 demand on exported Georgian agricultural
products is expected to rise, REAP’s forecast towards unit price of exported commodities is about $0.02
increase. Farmers are expected to response to market demand and with REAP’s assistance more farmers
will supply agricultural inputs to the PHHPs further to be exported.
To date we have the following picture in terms of farmers’ sales, based on data provided by 19 PHHP businesses:
7. Outcome / PPR / 4.5-2 / F/ FTF - Number of jobs created with USG assistance – 487 (PY3) and
968 (to date).
Exceeded PY3 target 200 by 144 % and in total exceeded already LOP target 750 by 29 % In PY3 significant number of new jobs were created both permanent and seasonal. In case of seasonal
workers, the same trend as during previous reporting years was observed, that at average each individual
was employed during 5 months a year. About 37% of all employed individuals were women. For PY3 the
redistribution among permanent and seasonal jobs are as follow: permanent – 150, seasonal – 808, and
from the seasonal full time equivalent jobs are calculated by dividing 808 on 2.4, that equals 337.
In total as a result through PY3 the distribution of jobs among priority directions is as follow:
$0
$5,000,000
$10,000,000
$15,000,000
LOP target(contractual)
LOP target(PMP)
PY3 target PY3 actual Actual todate
$10,000,000$12,400,000
$3,000,000 $3,082,409$5,095,511
Farmers' Sales (Cash-market)
0
200
400
600
800
1000
FSC PHHP PP ISP TOTAL
406492
66 4
968
Total New jobs as of today
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8. Output / Custom - Number of distinct clients purchased products or services from USG assisted
SMEs - 65,739 (PY3) and 106,538 (to date)
Exceeded PY3 target 50,958 by 29 % and in total achieved LOP target 135,000 by 79 % This indicator tracks the number of farmers who visit FSCs/MSCs to by inputs or services. Based on
grantees’ records and observations, each individual may repeatedly visit the same FSC/MSC and each time
buy different inputs or receive different services, therefore within each reporting year only unique
number of clients is calculated, that equals 65,739 farmers for PY3. As some of FSC/MSC grant projects
are still in mobilization phase, increase of this number is expected in upcoming years. Therefore, in PY3
REAP is slightly behind compare to other targets and has achieved only about 79 % of LOP target (135,000).
9. Outcome / Custom - Number of farmers supplying primary agricultural products – 2,116 (PY3)
and 3,351 (to date)
Exceeded PY3 target 1,200 by 41 % and in total exceeded LOP target 2,500 by 34 % REAP’s success in its efforts to create cash market for small holder farmers on one hand, and to enhance
a quality of inputs supplied to PHHPs on the other, is reflected in this indicator. In PY3, 2,116 new farmers
supplied more than 5,500 tons of agricultural products to REAP assisted PHHPs worth more than $ 3 M.
The same farmers are expected to sell more inputs and also some new supplier farmers are anticipated
to become the source of agricultural products for PHHPs during upcoming years.
10. Output / 4.5.2-7 / FTF - Number of individuals who have received short-term agricultural
trainings - 92,863 (PY3) and 136,756 (to date).
Exceeded PY3 target 74,340 by 25 % and in total achieved contractual LOP target 150,000 by 91 %
By tracking this indicator REAP’s approach towards improvement of knowledge and practices among
those who are involved in agricultural activities is demonstrated. Most of direct beneficiary farmers
(clients and suppliers) have received short term training in agriculture related issues and as a result will
improve their crop yields and income.
Calculation methodology for this indicator is the following: 50% of last year trainees + number of new
trainees for this year 67,723 and +3,258 all new/continuing jobs and individually trained producer farmers.
The FY 2017-2018 targets reflect trainings to be provided to 60,000 and 10,000 new farmers in addition
to 50% of the FY2016 and 10 % of previous year trainees + projected new jobs per corresponding program
year. Since, it is expected that through the PY4 REAP grantees will have trained most of their potential
new clients, the PY5 target is decreased slightly, although Program LOP target is expected to be exceeded.
11. Number of MSMEs receiving business development services from USG assisted sources – 274
(PY3) and 758 (to date).
Achieved PY3 target 30 by 813 % and in total exceeded contractual LOP target 220 by 244 % This indicator measures directly the sub-IR of access to business development services which contributes
to the IR of expanding markets and trade. The IR impacts the Key Objective of increasing agricultural
productivity which will help achieve the goal of reducing poverty and hunger. Total number of micro (1-
10), small (10-50) and medium (51-100) enterprises receiving services from REAP supported activities
includes grantees, non-grantees and individuals. Services are tailored particularly based on needs of
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agricultural enterprises and are provided within the REAP’s component 2 activities involving local and
international STTAs. Services may include:
Market access, input supply, technology and product development, training and technical
assistance, access to finances, export, post-harvest handling and processing, infrastructure,
policy and advocacy, etc.
For PY3 REAP has supported 274 agricultural enterprises by providing technical assistance and consultancy
to increase their capacity and organizational performance. This includes 63 grantees and 211 non-grantee
MSMEs.
Breakdown by the training and consultation topics provided to grantee and non-grantees is as follow:
Total:
Grantee: 63 companies out of 70 Only training: 18 Only consulting: 1 Both: 45
Training 160
Consulting 240
Loans 2
Trade/Fair 30
B2B 1
Total: 433 with loans/ 431 without loans
POST - HARVEST & COLD STORAGE Training 34
Consulting 199
AGRICULTURAL MARKETING Training 24
Consulting 0
AGRICULTURAL TECHNOLOGIES Training 22
Consulting 4
DEMOPLOT DEVELOPMENT Training 23
Consulting 10
ACCESS TO FINANCE Training 14
Consulting 13
Loans 2
QUALITY CERTIFICATION / DCFTA Training 3
Consulting 14
ENVIRONMENT Training 0
Consulting 0
BUSINESS MANAGEMENT Training 40
Consulting 0
EQUIPMENT SELECTION Training 0
Consulting 0
G E N D E R Training 0
Consulting 0
EVENTS Trade/Fair 30
B2B 1
Total:
Non – Grantee Training 243
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211 Companies/Organizations
Consulting 15
Loans 0
Trade/Fair 0
B2B 0
Total: 258
POST - HARVEST & COLD STORAGE Training 6
Consulting 6
AGRICULTURAL MARKETING Training 0
Consulting 0
AGRICULTURAL TECHNOLOGIES Training 0
Consulting 1
DEMOPLOT DEVELOPMENT Training 0
Consulting 0
ACCESS TO FINANCE Training 117
Consulting 0
Loans 0
QUALITY CERTIFICATION / DCFTA Training 118
Consulting 8
ENVIRONMENT Training 0
Consulting 0
BUSINESS MANAGEMENT Training 2
Consulting 0
EQUIPMENT SELECTION Training 0
Consulting 0
G E N D E R Training 0
Consulting 0
EVENTS Trade/Fair 0
B2B 0
12. Number of rural households benefiting directly from USG interventions – 137,666 (PY3) and
181,989 (to date).
Exceeded PY3 target 107,921 by 28 % and in total and exceeded LOP target 164,505 by 11 % This indicator counts all trained (from previous indicator) individuals including assisted company owners,
new employees and individual producer farmers. In FY 2017-2018, REAP-supported enterprises will
continue to buy raw material from smallholder farmers, deliver input and machinery services to farmers,
and offer short-term agricultural training. Therefore value of this indicator completely is depended on
other values from above mentioned performance indicators.
13. Number of firms receiving capacity building assistance to export – 40 (PY3) and 90 (to date)
Exceeded PY3 target 30 by 33 % and in total achieved LOP target 90 by 100 % This indicator reflects the number of firms receiving capacity-building assistance to export as part of the
REAP’s technical assistance activity. The effort supports the following target export-driven agricultural
products: fruits (fresh and dried), vegetables, hazelnuts, tea, herbs, citruses, fresh juice and etc. REAP
assistance facilitates and promotes creation of market linkages, adoption of international standards, and
enhancement in management, customer service, branding and marketing, etc. Among 49 operational
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grant projects 9 of them have received assistance in export related issues, whereas other 31 beneficiaries
were non grantee companies. In total as of today REAP has assisted 90 companies to export, which
resulted in more than $ 21 M sales of agricultural products in PY3.
This indicator directly linked with the newly added one:”EG.3.2-23 Value of targeted agricultural
commodities exported with USG assistance”
14. Number of hectares under improved technologies or management practices as a result of USG
assistance -410,263 (PY3)
Exceeded PY3 target 389,351 by 5% and in total exceeded LOP target 240,000 by 71 %
This indicator measures the area (in hectares) of land cultivated using USG-promoted improved
technology (ies) or management practice(s) during the current reporting year. Technologies to be counted
here are agriculture-related, land-based technologies and innovations, such as:
Crop genetics 33,684 Ha
Pest management 89,936 Ha
Disease management 70,379 Ha
Soil related fertility and conservation 114,480 Ha
Cultural practices 11,773 Ha
Irrigation 90,011 Ha
Total Improved Ha 410,263 Ha
In FY 2016, REAP continued to introduce intensive measures to improve crop yields. Several improved
technologies and management practices were implemented on most of the land operated by REAP
beneficiaries, such as producer farmers supplying PHHPs and those purchasing inputs from FSCs. Total Ha
used by REAP beneficiaries equals 410, 263 Ha , which included: 1, 465 improved Ha for the PHHPs and
408,798 Ha for demonstration plots and clients of FSCs.
The methodology of this indicator requires, that the area of land is counted each time it is cultivated with
one or more improved technologies during the reporting year. So, the data are aggregated from
demonstration plots organized by REAP’s grantees and their clients that demonstrate improved
agricultural management practices. In FY 2016, the disaggregation of improved land by crops was as
follow:
1 Cereals 64,875 Ha 2 Tree Fruit - 159,110 Ha 3 Vegetables 3,053 Ha 4 Subtropical 58,899 Ha 5 Horticulture 13,565 Ha 6 Medicinal Herbs 175,571 Ha
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REAP is basing FY 2017-2018 targets on the assumption that currently the majority of Ha used by REAP
beneficiaries have already been improved and will continue to be managed under one or several improved
technologies and the management practices during the following years. Although, in addition, some new
Ha is expected to be improved also: 463,529 Ha in the PY4, including 53,266 new Ha (previously identified
target from the PMP) and 480,718 Ha in the PY5, including 17, 189 new Ha (previously identified target
from the PMP)
15. Value of business development services from USG assisted sources provided to MSMEs
including farmers - $292,300 (Includes all related travel expenses, consultancy fees and etc.)
This indicator counts REAP’s financial inputs spent for all type of technical assistance provided by local or
foreign experts to our grantees, non-grantees and beneficiaries including bank credit officers who
received trainings from REAP. REAP does not have PY and LOP targets for this indicator, because it’s been
added to REAP’s PMP after USAID’s technical directive during PY2. This custom indicator has replaced
previous indicator related to BSP capacity building activities and includes: $ 79,330 value of Technical
Assistance provided to Grant enterprises and $ 212, 970 value of TA provided to Non-Grantee companies.
16. Total increase in installed storage capacity (m3) –In PY (3) 1,823m3 (PY3 and 21,637 m3 (to
date).
Similar to previous indicator this indicator has been added to REAP’s PMP after technical directives in PY1,
therefore the PY and LOP targets. This indicator measures total increase during the reporting year in
functioning (refurbishes and new) cubic meters of storage capacity that have been installed through REAP
leverage. It allows us to show the contribution of REAP towards reduction in post-harvest losses and
consequently substantial increase both food and income available to rural households. In PY3 REAP has
contributed to 325 m3 of dry and 1,498 m3 cold storage, accounting 1,823 m3 in total.
As mentioned above, for the PY4 USAID has proposed 5 additional indicators to be included into the
program PMP. One, related to irrigation and drainage was not added. 2 indicators were discussed in the
text above, 2 more indicators to be added are:
17. EG.3.2-5 Number of public-private partnerships formed as a result of USG assistance:
For the PY3 REAP reports 1 PPP and targets to form 2 PPPs in PY4
REAP has established collaboration with Ferrero’s subsidiary company in Georgia, AgriGeorgia on
implementation of joint program that aims supporting hazelnut sector by providing trainings and capacity
building to farmers in order them to increase quality and quantity of their yield and generate more
incomes. For the FY2017, REAP set a target of establishing 2 partnerships with the largest agricultural
inputs suppliers Syngenta and BASF on establishment of joint demonstration plots to promote high quality
inputs and supplies, as well as new technologies that can be replicated by farmers. In FY2018, REAP does
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not set any target since it will be the past year of the project and it is not feasible to start new initiatives
while not being sure to bring them to fruitful completion.
18. EG 3.2-21 Number of firms (excluding farms) or civil society organizations (CSOs) engaged in
agricultural and food security-related manufacturing and services that have increased profits or
became financially self-sufficient with USG assistance
In PY 3 REAP reports: 86 companies that have increased their profits comparing to what they had before REAP and has set the target for the next year 131 companies.
This indicator measures the number of agribusinesses who has increased profitability compared to the previous reporting year.
At the beginning of the FY2017, 70 companies from REAP grant portfolio are under different phases of development. Grant projects financed in 2014 and 2015 has mainly finished their investments and by 2016 their vast majority are fully operational and following projected targets, while grantees financed in FY2016 are in the investment development phases. Therefore, REAP sets the conservative assumption of 51% companies (grantees from the round 1&2) be profitable in the FY2017, the target will increase in the FY2018 since more companies from the portfolio will become fully operational.
The most accurate way to measure this indicator is to calculate the profitability growth rates by each grantee companies based on the official and declared financial data and forecast/define number of profitable business for the year of 2017. For this purpose REAP will collect all declared data from companies for the past periods (at least for 2 years) and conduct comparative analysis for the period of 2017-2018.
Site visit data collection methodologies:
To track the progress against program targets, REAP M&E Manager in PY1 has elaborated data collection templates for the grantees and mini survey questionaries’ for indirect beneficiary farmers, which he continued to utilize during PY3 as well. Regional coordinators and interns were actively involved in data collection, validation and analyses of each grant project. Regular site visits and random monitoring checks have been conducted in order to maintain quality data assessment and reporting.
The following methods were utilized for M&E data collection and verification:
Interviews: This approach helps to collects information from stakeholder and beneficiary experiences, perceptions, opinions, feelings and knowledge about the REAP funded activity.
Observations: This approach describes activities, behaviors, actions, conversations that were directly observed by the REAP M&E Manager during the course of site visits. This results in field notes and data that are rich with detailed descriptions. These observations have been documented through photos, collection of verification documents (such as copies of sign-in data sheets on financial performance, new jobs created, trainings conducted and etc.).
File and Document Reviews: This approach is used in conjunction with first two data collection approaches and included sampling written material from organizational records and files, correspondence, official publications, letters, photographs, etc. This provides verification of grantee’s own records that they have documented necessary evidence and data to support the reporting of achievements of their activities.
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Grantees from all rounds have provided baseline data and following 3 year targets for each performance indicator and submitted to M&E in electronic and hard copy forms. M&E Manager has made sure that the submitted data were consistent, verifiable, and achievable and time bound. In addition, all operational grantees have filled quarterly data collection forms, signed and submitted to regional coordinators and M&E Manager. Each copy is kept by grantees, coordinators and M&E Manager. In PY 4 all the projected data will be compared to the actual performance numbers to ensure that all gaps and laggings are improved and all projects are meeting their targets.
Cost Benefit Analysis (CBA)
In PY3, as it was anticipated, Full Cost-Benefit Analyses (CBA) was conducted for 12 projects and 13 more
is planned to be fulfilled in the PY4 and PY5.
According the CBA methodology, a financial CBA framework for all 12 businesses have been updated
based on the actual annual financial data collected by the REAP’s M&E team. This allows REAP to collect
information from the projected CBA Net Cash Flow Profile Statement and substitute it with the actual
numbers. List of financial data collected annually from 12 projects under CBA is as follow:
Total Annual Revenue
Change in Accounts Receivable
COGS
General Administrative Costs
Sales and Marketing Costs
Change in Accounts Payable
CBA prediction is done for 8 years and 9th year is counted as a liquidation year. Therefore, up to date
REAP received the actual information for 2 years and from year to year it will continue to add actual
numbers and finally, the whole picture of the financial information close to reality will be received.
After the substitution of actual numbers for the first 2 years the Actual Financial Information and the
results are the following (all values are provided in GEL):
Project 1) Alva
Alva
PREDICTION ACTUAL
Table 20.0: Cash Flow Profile Statement for existing + new project FNPV 612,380.50 461,131.88
FIRR 34% 28%
Table 20.1: Cash Flow Profile Statement for existing project FNPV 388,780.58 47,363.16
FIRR 41% 18%
Table 20.2: Incremental cash Flow Profile Statement for new project FNPV 223,599.92 413,768.72
FIRR 27% 37%
Economic Net Present Value for new Project ENPV 7,507,260
Project 2) GeoFlower
Geo-Flower
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PREDICTION ACTUAL
Table 20.0: Cash Flow Profile Statement for existing + new project FNPV 10,790.31 1,013,381
FIRR 15% 37%
Table 20.1: Cash Flow Profile Statement for existing project FNPV (386,187) 595,902
FIRR 7% 29%
Table 20.2: Incremental cash Flow Profile Statement for new project FNPV 333,771.15 417,479
FIRR 49% 96%
Project 3) Agropharm+
Agropharm+
PREDICTION ACTUAL
Table 20.0: Cash Flow Profile Statement for existing + new project FNPV 320,686 192,019.08
FIRR 160% 50%
Table 20.1: Cash Flow Profile Statement for existing project FNPV
FIRR
Table 20.2: Incremental cash Flow Profile Statement for new project FNPV 320,685.61 192,019
FIRR 160% 50%
Economic Net Present Value for new Project ENPV 84,431
Project 4) GBZ
GBZ
PREDICTION ACTUAL
Table 20.0: Cash Flow Profile Statement for existing + new project FNPV 584,681.18 851,743.78
FIRR 32% 44%
Table 20.1: Cash Flow Profile Statement for existing project FNPV 430,543 (297,958.22)
FIRR 31% 5%
Table 20.2: Incremental cash Flow Profile Statement for new project FNPV 154,138.16 1,149,702
FIRR 37%
Economic Net Present Value for new Project ENPV 747,691
Project 5) Iveria
Iveria
PREDICTION ACTUAL
Table 20.0: Cash Flow Profile Statement for existing + new project FNPV 1,106,095.47 835,180
FIRR 77% 48.31%
Table 20.1: Cash Flow Profile Statement for existing project FNPV 544,720.50 984,493
FIRR 70% 159.34%
Table 20.2: Incremental cash Flow Profile Statement for new project FNPV 561,374.97 149313.552
FIRR 91% 9.58%
Economic Net Present Value for new Project ENPV 752,357
Project 6) AgroKartli
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AgroKartli
PREDICTION ACTUAL
Table 20.0: Cash Flow Profile Statement for existing + new project FNPV 4,586,503.62 2,036,842.07
FIRR 42% 23.17%
Table 20.1: Cash Flow Profile Statement for existing project FNPV 3,146,056 13,467.51
FIRR 68% 15.25%
Table 20.2: Incremental cash Flow Profile Statement for new
project
FNPV 1,116,801.01 2,023,375
FIRR 24% 25.58%
Economic Net Present Value for new Project ENPV 20,829,662
Project 7) SP Giorgi Tediashvili
SP Giorgi Tediashvili
PREDICTION ACTUAL
Table 20.0: Cash Flow Profile Statement for existing + new project FNPV 158,827 140,505
FIRR 24% 22.92%
Table 20.1: Cash Flow Profile Statement for existing project FNPV (5,691) (62,529.07)
FIRR 15% 10.40%
Table 20.2: Incremental cash Flow Profile Statement for new
project
FNPV 286,909 203,034
FIRR 114% 127%
Economic Net Present Value for new Project ENPV 76,815
Project 8) AgroExport
AgroExport
PREDICTION ACTUAL
Table 20.0: Cash Flow Profile Statement for existing + new project FNPV 558,991.56 731,537.00
FIRR 42% 63.91%
Table 20.1: Cash Flow Profile Statement for existing project FNPV (74,707) 407,932.34
FIRR -1% 106.89%
Table 20.2: Incremental cash Flow Profile Statement for new
project
FNPV 633,699.01 323,605
FIRR 61% 39.34%
Project 9) Farmer’s House
Farmer’s House
PREDICTION ACTUAL
Table 20.0: Cash Flow Profile Statement for existing + new project FNPV 2,326,122 1,903,528.33
FIRR 84% 59.40%
Table 20.1: Cash Flow Profile Statement for existing project FNPV (155,672) (387,785.81)
FIRR 5% -10.07%
Table 20.2: Incremental cash Flow Profile Statement for new
project
FNPV 2,481,794 2,291,314
FIRR 418% 161%
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Project 10) Herbia
Herbia
PREDICTION ACTUAL
Table 20.0: Cash Flow Profile Statement for existing + new project FNPV 2,610,911.09 1,593,925.79
FIRR 63% 35.36%
Table 20.1: Cash Flow Profile Statement for existing project FNPV 1,982,258 (462,957.22)
FIRR 61% 3.95%
Table 20.2: Incremental cash Flow Profile Statement for new
project
FNPV 628,653.48 2,056,883
FIRR 73% 107.11%
Project 11) Tsikoridze
Tsikoridze
PREDICTION ACTUAL
Table 20.0: Cash Flow Profile Statement for existing + new project FNPV 987,182 754,902.96
FIRR 45% 33.44%
Table 20.1: Cash Flow Profile Statement for existing project FNPV 731,607 (170,043.26)
FIRR 64% 4.53%
Table 20.2: Incremental cash Flow Profile Statement for new
project
FNPV 164,274 924,946
FIRR 23% 62%
Project 12) Akhali Fermeri XXI
Akhali Fermeri XXI
PREDICTION ACTUAL
Table 20.0: Cash Flow Profile Statement for existing + new project FNPV 61,090.45 57,789.16
FIRR 21% 20.78%
Table 20.1: Cash Flow Profile Statement for existing project FNPV 30,176 (30,786.67)
FIRR 19% 10.67%
Table 20.2: Incremental cash Flow Profile Statement for new
project
FNPV 30,914.03 88,576
FIRR 27% 60.07%
The availability of the actual information is very useful as it gives possibility to compare projected
performance figures with the actual outcomes.
Analysis of tables 20:0: Cash Flow Profile Statement for existing + new projects
In the tables above for Actual (Existing + New) projects values for both NPV and IRR are positive for all 12
companies.
Positive NPV indicates that the projected earnings generated by the project exceeds the anticipated costs.
Generally, a project with a positive NPV is profitable.
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IRR is the discount rate that makes the NPV of all cash flows from a particular project equal to zero, and
generally the higher the project’s IRR, the more desirable it is to undertake the projects.
Analysis of tables 20:1: Cash Flow Profile Statement for existing projects
In the tables above for Actual (Existing) projects the negative NPVs were calculated for the following
companies: GBZ, G.Tediashvili, Farmer’s House, Herbia, Tsikoridze and Akhali Fermeri XXI.
Negative NPV indicates that these projects would have resulted in a net loss without REAP’s assistance,
which shows once again the right purpose of REAP’s program: to improve the effectiveness and efficiency
of companies operating in Georgian agriculture sector.
In case of Agropharm+ no incremental outcomes are observed since it is a startup company and any
financial income generated is totally attributable to REAP.
Remaining projects (Alva, Geo-Flower, Iveria, AgroExport) still would have faced positive NPVs without
REAP’ assistance, however with REAP they have gained more potential to grow in a shorter time span and
increased their competiveness to meet the market demand.
Analysis of tables 20:2: Cash Flow Profile Statement for new projects
In the tables above for Actual (New) projects positive NPV and IRR were calculated for all 12 companies.
Positive NPV indicates that the projected earnings generated by the project exceeds the anticipated costs.
Generally, a project with a positive NPV is profitable. Therefore REAP’s investments in these enterprises
is well justified. Since the financial data within the framework of all analyzed projects will be annually
updated, at the end of the program this CBA methodology will allow to provide the realistic picture about
the program impact in terms of dollar value returned (both financial and economic) against 1$ invested
by REAP.
IRR is the discount rate that makes the NPV of all cash flows from a particular project equal to zero, and
generally the higher the project’s IRR, the more desirable it is to undertake the projects.
Economic valuation
In conjunction with financial CBA in PY3 as it was anticipated the same 12 companies have been visited in
order to conduct mini survey of their client/supplier farmers. In total about 400 farmers were questioned
about their agricultural activity and improvements made as a result of REAP’s interventions.
At this point results for 5 companies (out of 12) are presented, because survey results for others were
incomplete and requires further validation before the final number are extrapolated.
In PY4 and PY5 additional 13 grant project will be visited for the same purpose and at the end of the
project it is expected to have 25 enterprises with the full CBA performed.
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The purpose and methodology of Economic CBA
For the economic valuation, the Program has to estimate the consumer surplus of the clients (farmers)
who purchase the agricultural inputs or services that are provided by the REAP assisted companies. The
consumer surplus for a product or service equals the difference between the Willingness to Pay (WTP) of
the consumer and the price. Since the company may offer a wide range of products and services, it is
impractical to estimate the consumer surplus for each product or service or combinations of products and
services.
Alternatively, to estimate the benefits to farmers (consumers of the products or services), it is measured
the increase in the net income that they obtain from the increase in agricultural productivity (increase in
yields) from using the new products (seeds, pesticides and fertilizers) and new technologies (farm services
and management techniques). It would not make sense for farmers to purchase the new products and
adopt the technologies if they do not realize any net benefits.
From a conceptual (and theoretical) point of view, the implementation of new products and technologies
should lead to increases in yields, which in turn lead to increases in net income (or net gains) to the
farmers. However, in practice, the causal linkages between yield and net gains may not be
straightforward, and many intermediate factors could be responsible. For example, a farmer may realize
the increase in net income if he/she is able to supply the extra production from the higher yields to the
market. However, if there is no access to the appropriate market then the increase in yield may not
necessarily translate to an increase in net income. For the subsistence farming this still may be considered
as a benefit, however after certain level of increase, access to market becomes essential to maintain the
benefits from farming.
In order to estimate the net benefit of REAP on farmer’s level, the project M&E obtains the necessary
information from them by conducting surveys with the clients of the same companies, which have been
selected for the financial CBA.
As a common framework, similar to financial CBA excel model the simplified version has been designated
for the application of farm level CBA. Several main parameters have been selected to monetize all possible
costs and benefits related to the society.
Parameters:
1. Economic discount rate
2. Estimation of the number of direct beneficiaries
3. Inclusion of training costs in the economic analysis
4. Use of hired labor
5. Use of unpaid labor
6. Increase in crop yield %, by type of crops
7. Average gross profit margin
8. Information on percent increase in income of farmers
9. Estimated value of time saved per year
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10. Indirect beneficiaries receiving information and adopting new technologies
Positive and negative externalities from the new products and technologies
The economic analysis should take into account the positive and negative externalities from the new
products and technologies. These values of these impacts may not be captured in the net incomes of
farmers.
Positive externalities: for farmers, there could be valuable time savings from the adoption of new
irrigation techniques and technologies.
Negative externalities: at the same time, loss in employment and jobs may result from the increased
mechanization.
The key assumptions that are used in the analysis
Number of FSC clients
Number of farmers who applied new technologies or management practices
Used hired labor
Used family labor
Percent increase in crop yield
Gross profit margin in local currency
Estimated average value for training received
Percent increase in income
Non-Grantee Technical Assistance Impact Methodology
REAP developed an impact methodology to assign attribution for improved performance of non-grantee
companies that received technical assistance from REAP. As non-grantees are fully functional businesses,
only a portion of improved performance can and should be attributed to REAP. The proposed
methodology (found in Annex A) utilizes two questionnaires to conduct an attribution analysis. The first
questionnaire is relevant for and should be completed by all non-grantees, while the second questionnaire
is a further analysis designed for those enterprises who received technical assistance in food safety.
To test and modify the methodology REAP conducted trial surveys of non-grantee enterprise WESTNUT
Ltd. Based on the feasibility from the trial, REAP will roll-out this methodology across its 28 existing non-
grantee enterprises and to all future enterprises to ensure impact data is being properly attributed and
can be included in REAP’s PMP.
Based on the Questionnaire 1, REAP needed to identify the areas of process where provided TA had an impact for WESTNUT Ltd (found in Annex 1). Impact indicators were determined and they are the following:
CNFA 76 AID-114-C-13-00002
Job creation
Output per unit
Sales
Unit production cost
Number of suppliers
Number of customers
Capacity strengthening training of personnel
Afterwards, WESTNUT Ltd was asked to identify all project TA and non-project factors that have contributed to changes; as well as to rank and score the project and non-project factors in order to measure the relative importance and contribution to a total change. Results are the following:
Job Creation In this area 3 additional permanent jobs are created, and as the main project TA factor is emphasized the absence of QA manager position. This factor got the score - 70% out of 100% of the relative importance that is due to the REAP’s contribution. As a non-project factor is listed the need of additional laboratory assistant that is given 30% of the total 100% score.
Output per Unit Output per unit before TA was 5,500 kg and after TA is decreased and the company got 4,900 kg. This can be explained due to the following factors: first of all, the non-project factor is that the quality of raw material got improved and it gets the score of 60% out of 100%. Secondly, as the project factors are listed traceability level (25%) and the processing practice (15%).
Sales In the field of sales before TA the total amount consisted of 10,700,000 Gel and after TA it has reached 19,500,000 Gel. Non-project TA factor is given as the main factor, which is the improved product quality and gets the score of 50% out of 100%. As the main project TA factors are listed improved customer service (35%) and the marketing (15%).
Unit Production Cost Unit production cost before TA was 1.1 Gel and after TA it became 0.95 Gel. As the main source of improvement are listed project TA factors that are the following: availability of finances (40%), improved production processes (20%) skilled labor (10%). As a non-project TA factor, that has played role for decreasing the unit production cost we have value of the company (20%) and the price of the raw material (10%).
Number of Suppliers Number of suppliers have increased and that is equally conditioned to project and non-project TA. Due to the project TA the main factors are increased volume of purchases (25%) and additional services (25%). Non-project TA factor is a continuous procurement that takes 50% out of 100%.
Number of Customers Number of customers before TA was 7 and after TA it became 5. The main project TA factors for this case are that the production cost got improved (40%) and the volume of products has increased (30%). Non-project factor is the price of the product that takes score - 30% out of 100%.
Capacity Strengthening Training of Personnel Overall 111 persons were trained, out of which 90 are females and 21 males. Questionnaire 2 was created in order to identify the impacts of standards on business functions and associated activities. For the beneficiary company –WESTNUT, was developed a specific standards impact
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map and the operations of the beneficiary company are divided into a number of key business functions. These business functions are divided into two parts: Primary Business Functions and Support Business Functions (found in Annex 2).
Primary Business Functions Support Business Functions
Procurement & Logistics Management & Administration
Production/Operations Construction & Infrastructure Marketing/Sales & Services Research & Development
Questionnaire 2 about the standards impact map was completed by WESTNUT Ltd and the following results were obtained:
Procurement & Logistics In the field of procurement and logistics standards were introduced and activities/processes standards are applied to the In-house logistics, warehousing, packing and shipping, screening and selection of suppliers, negotiating. Relatively, reasons of effectiveness are the following: more efficient receiving of supplies, more efficient packing and shipping (better trained personnel, better information transfer), more efficient screening of specifications of standardized products (better training of personnel, more efficient procurement activities, better information transfer), large quantities due to higher sales. Overall, 3 persons were trained and 1 permanent job was created.
Production & Operation Standards were introduces in the area of production and operation. Therefore, the company has emphasized activities/processes standards applied to the processing, QA and HSE. Respectively, reasons of effectiveness are better quality of equipment and supplies, better quality management and better HSE compliance. Overall, 94 persons were trained, 1 permanent and 29 seasonal jobs were created.
Marketing/Sales & Services In the area of marketing/sales and services standards were introduced. As a result, activities/processes standards applied to client development and sales development. Relatively, reasons of effectiveness are better consumer information and higher sales. Overall, 3 persons were trained.
Management & Administration Standards were introduces in the field of management and administration and activities/processes standards applied to facility management, IT management and HR management. Respectively, reasons of effectiveness include more efficient transfer of internal information; more efficient training of personnel and more efficient management of facilities. Overall, 9 persons were trained and 1 permanent job got created.
Construction & Infrastructure In the area of construction and infrastructure standards were introduced as well. Activities/processes standards applied to are design of processing and warehouse facilities. Relatively, reasons of effectiveness include more efficient placement of equipment and adherence to specifications for products and processes. Overall, 2 persons were trained.
Research & Development No standards were introduced. In the future REAP plans to develop the one-page report for the non-grantee enterprises to track project’s contribution in their success and accomplishments. One, developed for WESTNUT Ltd, is presented below: WESTNUT Ltd Table 1 presents project contribution to different performance indicators.
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Table 1. Project contribution
Indicator Total change
Project contribution
Comment
Permanent jobs
Male 1
Female 2
Total 3 1.4
Seasonal jobs
Male 4
Female 25
Total 29
Output per unit
Kg/ table
-600 -240 Since growers/ collectors do not adhere to specifications for products and services, and the Company the same time has to adhere to the specifications, productivity level (shelled hazelnut output per cracking table) has declined
Sales GEL 8,800,000 4,400,000
Unit production cost
GEL/kg -0.15 -0.105
Number of suppliers
Persons/ entities
60 30
Number of customers
Entities -2 -1.4 Number of customers declined since, the Company has shifted to the supply to a higher end-market segment after introduction of standards
Capacity strengthening
Male 21
Female 90
Total 111
Source: WESTNUT Ltd survey, estimates Standards were introduced in all business functions with the exception of Research & Development. Table 2 presents activities by business functions where standards were introduced and efficiency improvement was observed. Table 2. Activities by business functions where standards were introduced
Business function Activities
Logistics & procurement In-house logistics, warehousing, packing and shipping, screening and selection of suppliers, and negotiations
Production/ operations Processing, QA Marketing/ sales & services Client and sales development Management & administration Facility, IT and HR management Construction & infrastructure Design of processing and warehouse facility
Source: WESTNUT Ltd survey In general efficiency improvement was due to better trained personnel and adherence to specifications for products and services. In all areas extent of observed improvements have been as expected exclusive of procurement/ logistics business function; latter was evaluated as average improvement.
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Three, 94, 3, 9 and 2 staff members have improved their skills and knowledge in the areas of Logistics/ procurement, Production/ operations, Marketing/sales & services, Management & administration, and Construction & infrastructure, respectively. New job places were created in Procurement & logistics, Production/ operations, and Management & administration; one job in each business function was established. Moreover, 29 new seasonal jobs were created in production/ operations.
Annex A: Non-Grantee Technical Assistance Attribution Methodology
Background To date, REAP has provided technical assistance (TA) to 28 non-grantee enterprises. The majority of these enterprises (24) received TA in food safety and quality areas including support to implement ISO 22000, BRC, IFS, GlobalGAP, and green standards. The other four enterprises have been provided with TA in improved agricultural technologies and business management practices. This methodology will allow REAP to compare indicators BEFORE- and AFTER the provision of the TA situations as follows: jobs (permanent and seasonal, broken down by gender), capacity strengthening through trainings (broken down by gender), output per unit (productivity), sales, unit production cost, and the number of customers and suppliers. It is recommended to survey non-grantees only once during the life of the Project, in the end of their first production/ commercial cycle after the implementation of TA. The rational for a one-time survey in the end of the first production/ business cycle is to better capture the impact of the introduction of the systems on enterprise’s performance and to carry out attribution analysis. Steps to Conduct Attribution Analysis to the Project Provided TA Step 1. Collect indicators (values) for BEFORE- and AFTER the provision of TA situations Step 2. Request non-grantee enterprises to identify FACTORS that have contributed to the observed difference between the values of indicators BEFORE- and AFTER the provision of TA. Annex 3 presents the list of factors that could have influenced changes in indicators for BEFORE- and AFTER the provision of TA situations Step 3. For every FACTOR, request non-grantee enterprises to provide CATEGORIZATION, i.e., whether identified FACTOR is PROJECT- or NON-PROJECT related. Assign “1” to a stated FACTOR in a relevant cell if it is PROJECT-related or exogenous Step 4. Request non-grantee enterprises to provide RANKING of PROJECT- and NON-PROJECT related FACTORS in descending order. “1” should stand for the most important factor, “2” – for less important than “1”, etc. Step 5. Request a non-grantee enterprise to assign a SCORE on a 100 percent scale to every RANKED FACTOR. The sum of all assigned scores should be exactly 100 percent Step 6. Input collected information in the spreadsheet template
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Step 7. For every indicator, estimate the DIFFERENCE between values BEFORE- and AFTER the provision of TA situations Step 8. For every indicator multiple the sum of the assigned SCORES by the estimated DIFFERENCE in the value of an INDICATOR to arrive to the estimate of attribution to the Project provided TA Annex 1. Questionnaire 1 for Attribution Analysis
Beneficiary LTD WESTNUT Sector Hazelnut Processing and Export
Project Monitor _________________________ Date ______10/17/2016_________
1 Job creation
1.1 Permanent jobs 1. Before TA 2. After TA
a Male # of persons 7 8
b Female # of persons 5 7
c Total # of persons 12 15
# 3. Factor 4. Factor Category
5. Rank 6. Score
4.1 Project 4.2 Non-project
a Absence of QA manager
position before X 1 70
b Need of additional laboratory assistant
X 2 30
…
1.2 Seasonal jobs 1. Before TA 2. After TA
a Male # of persons 17 21
b Female # of persons 65 90
c Total # of persons 82 111
# 3. Factor 4. Factor Category
5. Rank 6. Score 4.1 Project 4.2 Non-project
a Increased sales X 1 50
b Increased output volume X 2 50
…
2 Output per unit kg/ tree, ha; l/head 1. Before TA 5,500 2. After TA 4,900
# 3. Factor 4. Factor Category
5. Rank 6. Score
4.1 Project 4.2 Non-project
a Quality of raw material X 1 60
b Traceability level X 2 25
… Processing practice X 3 15
3 Sales GEL 1. Before TA 10,700,000 2. After TA 19,500,000
# 3. Factor 4. Factor Category
5. Rank 6. Score
4.1 Project 4.2 Non-project
a Product quality X 1 50
b Customer service X 2 35
c Marketing X 3 15
4 Unit production cost GEL/unit 1. Before TA 1.1 2. After TA 0.95
# 3. Factor 4. Factor Category
5. Rank 6. Score
4.1 Project 4.2 Non-project
a Availability of finances X 1 40
B Production processes X 2 20
C Value of the company X 3 20
D Skilled labor X 4 10
e Price of raw material X 5 10
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5 Number of suppliers # of companies/ farmers 1. Before TA 190 2. After TA 250
# 3. Factor 4. Factor Category
5. Rank 6. Score
4.1 Project 4.2 Non-project
a Continuous procurement X 1 50
b Volume of purchases X 2 25
c Additional services X 3 25
6 Number of customers # of companies 1. Before TA 7 2. After TA 5
# 3. Factor 4. Factor Category
5. Rank 6. Score
4.1 Project 4.2 Non-project
a Improved production cost X 1 40
b Price of product X 2 30
c Volume of product X 3 30
7 Capacity Strengthening Training of Personnel
7.1 Male # of persons 21
7.2 Female # of persons 90
7.3 Total # of persons 111
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Annex 2. Questionnaire 2 for Attribution Analysis
Beneficiary LTD WESTNUT Sector Hazelnut Processing and Export
Project Monitor _________________________ Date ______10/17/2016_________
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Annex 3. Factors that Could Underlay Changes in Indicators for BEFORE- and AFTER the provision of TA
situations (Should be used during the survey by the interviewer)
# Indicator Factor
1 Jobs Technology, output volume, sales, seasonality
2
Yields Production practices including irrigation, crop nutrition, measures against diseases et al., fruit thinning, pruning et al., weed control, feeding
Cultivars, breeds
Weather condition
3 Sales General economy, competition, product quality, packaging, marketing, customer service, prices on related products (substitutes and complements)
4 Unit production cost Location: availability of raw materials, price of raw materials, cost of power, availability of labor, cost of labor, availability of skilled labor, transportation cost, availability of finances, government policy
Scope: production processes followed/ technologies, backward and forward integration, specialization, and outsourcing part of production processes/ products and marketing and customer service
Scale: size of the company
5 Number of suppliers Terms and conditions of payment, volume of purchases, additional services offered, competition in input and output markets, prices on inputs,
6 Number of customers Price of product, volume of product, production cost, technology, competition, prices on related products (substitutes and complements)
85
Annex 4. Standards Impact Map
Business Functions
Activities Impacts Description
Inbound logistics
All activities
Better internal information transfer Using standardized documents and specifications makes passing on internal information about products and services more efficient
Better training of personnel Inbound Logistics staff can be trained better because relevant specifications for both products and services are standardized
More efficient logistics Inbound Logistics can be conducted more efficiently due to the reduced number of types of supplies
In-house logistics More efficient receiving of supplies Standardized documentation, packaging, labels or tags of supplies makes receiving more efficient
Warehousing Reduced warehousing needs Due to the high availability of standardized products, fewer supplies need to be stored in the warehouse
Production / Operations
All activities
Better internal information transfer Using standardized documents and specifications makes passing on internal information about products and services more efficient
Better training of personnel Production/Operations staff can be trained better because relevant specifications are standardized, for both products and services
More efficient processing Due to the reduced number of types of non-standardized products, Production/ Operations can become more efficient
Processing More efficient assembly Assembly processes are more efficient due to the modular product architecture
Better quality of equipment and supplies
Higher quality of equipment and supplies based on standards reduces the failure rate and related correction costs
Quality assurance Better quality management Quality management based on standards can be implemented more effectively
HSE (health, safety and environment)
Reduced disadvantages from regulations
Influence in standard-setting process helps to reduce disadvantages from regulations
Better health/safety/environmental compliance
HSE management based on standards can be implemented more effectively
Outbound logistics
All activities
Better internal information transfer Using standardized documents and specifications makes passing on internal information about products and services more efficient
Better training of personnel Outbound logistics staff can be trained better because relevant specifications for both products and services are standardized
More efficient logistics Reducing the number of product types means that Outbound Logistics can be conducted more efficiently
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Business Functions
Activities Impacts Description
Packing/shipping More efficient packing and shipping Standardized documentation, packaging and labels make packing and shipping goods more efficient
Marketing and Sales
All activities
Better internal information transfer Using standardized documents and specifications makes passing on internal information about products and services more efficient
Better training of personnel Marketing & Sales staff can be trained better because relevant specifications for both products and services are standardized
More efficient marketing activities Marketing & Sales activities can be conducted more efficiently if there are fewer product types
Market analysis, research
Better competitor information Since competitor's products have standardized specifications, market research can be conducted more efficiently
Marketing activities, client development
Better customer information Communicating product and service specifications and requirements to potential customers is more effective when referring to standards
Contracting More efficient contractual agreements
Defined specifications of the company's products and customer requirements make concluding contractual agreements easier
Sales
Higher sales Sales are higher due to customer confidence in standardized products and services
Increased competition The market share is lower due to more competitors on a market for standardized products and services
Reduced time-to-market For products and services based on standardized components, the time-to-market and market share are higher due to earlier access to technical information.
Benefits from participating in standard-setting process
A larger market share can be achieved through the promotion of the own technology to become standard and the acquisition of customers
Service Customer care and technical support
Better internal information transfer Using standardized documents and specifications makes passing on internal information about products and services more efficient.
Better customer communication You can communicate information about products and services to customers more effectively by using standardized specifications.
Better training of personnel You can train Service staff better if you have standardized specifications of products and services.
More efficient customer care Fewer types of non-standardized products make Service activities more efficient.
Reduced consultation needs Improved quality of standardized products means less consultation required.
Management & Administration
General management, financing,
More efficient transfer of internal information
Using standardized documents and specifications makes passing on internal information about products and services more efficient.
More efficient training of personnel You can train staff better if you have standardized specifications of products and services.
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Business Functions
Activities Impacts Description
accounting, controlling
More efficient management Management & Administration can be conducted more efficiently due to the reduced number of types of products and services.
Benefits from potential strategic partnerships as a result from relationship build-up during standardization process
Benefits from potential strategic partnerships arise as a result from relationship build-up during standard-setting process
Comparison with best-practices of competitors
The awareness of activities of competitors who use the same standardized technologies can induce internal improvements
Legal Reduced liability costs Liability costs can be reduced if compliance with standards is demonstrated
Facility management
More efficient transfer of internal information
Using standardized documents and specifications makes passing on internal information about products and services more efficient
More efficient training of personnel You can train Facility Management staff better if you have standardized specifications of products and services.
More efficient management of facilities
Facility Management activities can be conducted more efficiently if there are fewer types of products and services.
Risk
Better identification of future trends and influence on standards
The access to information and the influence in the standard-setting process helps to prevent negative developments
More secure future sales and supplies
Operational risk is reduced if products and services are based on standards, because standardized products can be sold longer time and supplies are available for longer.
IT
More efficient transfer of internal, operational information
Using standardized documents and specifications makes passing on internal information about products and services more efficient.
More efficient training of personnel You can train IT staff better if you have standardized specifications of products and services.
More efficient IT activities Fewer types of non-standardized products make IT activities more efficient.
HR
More efficient training of personnel You can train staff better if you have standardized specifications of products and services.
More available trained personnel There is more potential personnel available on a market for standardized technology
Reduced HR requirements HR requirements are reduced with a reduced number of types of products and services, production complexity and types of employees in production
Engineering / Construction
All activities
Better internal information transfer Using standardized documents and specifications makes passing on internal information about products and services more efficient.
Clearer product specifications Standardized specifications of the suppliers' products and customer requirements make it easier to collect relevant information.
CNFA 88 AID-114-C-13-00002
Business Functions
Activities Impacts Description
Better training of personnel You can train R&D staff better if you have standardized specifications of products and services.
More efficient Engineering Fewer types of non-standardized products make R&D activities more efficient.
Additional personnel costs Additional personnel cost arise from participating in the standard-setting process
Knowledge management
More efficient internal standardization
It is cheaper to implement standards within a company by using open consensus-based standards instead of developing internal standards.
Design
Reduced project development cost Project development costs are reduced because standards provide technical information free of charge.
Availability of replacement components
Critical replacement components are more readily available on the market for standardized products (which reduces costs).
Additional costs from adopting standards
There are additional cost due to the product and process requirements specified in standards
Construction
More efficient assembly Assembly processes are more efficient due to the modular product architecture.
Better quality of equipment and supplies
Higher quality of equipment and supplies based on standards reduces the failure rate and related correction costs.
Better quality management Quality management based on standards can be implemented more effectively.
Better health/safety/environmental compliance
HSE management based on standards can be implemented more effectively.
R&D
All activities
Better internal information transfer Using standardized documents and specifications makes passing on internal information about products and services more efficient.
Clearer product specifications Standardized specifications of the suppliers' products and customer requirements make it easier to collect relevant information.
Better training of personnel You can train R&D staff better if you have standardized specifications of products and services.
More efficient R&D Fewer types of non-standardized products make R&D activities more efficient.
Additional personnel costs Additional personnel cost arise from participating in the standard-setting process
Knowledge management
More efficient internal standardization
It is cheaper to implement standards within a company by using open consensus-based standards instead of developing internal standards.
Research
Reduced research needs Research needs are reduced because standards provide technical information free of charge.
Reduced research needs from participating in standard-setting process
Research needs are reduced because additional information is obtained during standard-setting process
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Business Functions
Activities Impacts Description
Product development
Reduced product development cost Product development costs are reduced because standard technical information is available for free.
Reduced product development cost from participating in standard-setting process
Product development cost is reduced because additional information is obtained during standard-setting process.
Availability of replacement components
Critical replacement components are more readily available on the market for standardized products (which reduces costs).
Additional costs from adopting standards
There are additional cost due to the product and process requirements specified in standards
Procurement
All activities
Better internal information transfer Using standardized documents and specifications makes passing on internal information about products and services more efficient.
Better training of personnel You can train Procurement staff better if you have standardized specifications of products and services.
More efficient procurement activities
Fewer types of non-standardized products make Procurement activities more efficient.
Screening and selection of suppliers
More efficient screening of specifications of standardized products
Due to the standardized specifications of the suppliers' products and the internal requirements, it is easier to collect relevant information
Negotiating and contracting
More efficient contractual agreements
Defined specifications of suppliers' products allow concluding agreements easier
More competition More competition in the market drives down the costs of supplies
Larger quantities Costs of supplies are lower because larger quantities of the same type can be purchased for standardized components
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Annex 6: HerStories:
KETEVAN KVHEDELIDZE, YOUNG AGRICULTURAL PROFESSIONAL AND FUTURE ENTREPRENEUR Ketevan Khvedelidze is a 22 year old agro technologist, which studies at the Faculty of Agriculture of Akaki
Tsereteli State University in Kutaisi. Also, she is involved in the small-scale family owned agribusiness that
produces saplings of fruit trees and sells various fruits and vegetables.
At the regional meeting, organized by REAP project in February 2016,
Ketevan along with other young students, expressed her interest to get
more practical knowledge related to her profession. Natalia Tskitishvili,
“Adina” Ltd, immediately supported students’ plea for help and offered
them to come to Adina’s greenhouse first and then to stay as interns for
some time. Ketevan was not shy about this opportunity, with her friends
she straightaway accepted this offer and joined Adina. According to
Ketevan, while being with Adina, she gained much knowledge and many
interesting information that she uses in her family business and is
planning to start her own agribusiness in the future.
“We, students, didn’t have the opportunity to gain any practical
knowledge, but at this internship program, where we got through REAP
project, we worked on coconut substrates, learned about strawberry
planting process and a lot of other concrete practical or theoretical issues.
I also use this experience in practice, as the time and attention is very important in agriculture; with this
now I can increase the productivity in a relatively short period of time rather than using the traditional
methods” – says Ketevan.
Ms. Khvedelidze is a member of “Youth in Agribusiness”, a sub-group of REAP’s Strategic Platform
“Gender-Equitable Agricultural Development” and wants to deepen her knowledge and skills in order to
turn her family owned small-scale agribusiness into the successful agribusiness.
“If it weren’t for our practical courses, students wouldn’t
have the opportunity to gain any practical experience
besides theoretical knowledge. We gave them access to
the greenhouses, equipped with high technologies that
usually are not available for students. If we don’t give our
students a chance to learn, we won’t have future
specialists” – says Natalia Tskitishvili, member of REAP’s
gender platform. According to Ms. Tskitishvili, during this
internship, students were directly involved in the process
of receiving, sorting and planting of seedlings. Natalia Tskitishvili, REAP Gender Platform
Member
Ketevan Khvedelidze,
Student at Akaki Tsereteli
Kutaisi University
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CHIRIFRUIT LTD Chirifruit, Ltd. is a women-owned and family-run Tbilisi-based
small-scale processing company established in 2014 by Sophio
Jikia and her sisters. Chirifruit is an innovative agribusiness that
offers its customers a range of sweets manufactured with dried
or candied fruits, candied carrots, different types of nuts and
chocolate. Sisters started business activities in order to increase
the financial stability of their families and secure the future of
their 11 children. Madona Jikia serves in the capacity of
technologist. She is a creative person and together with sisters
works on diversifying their products. Chirifruit actively
cooperates with REAP project in order to strengthen and
expand business. Chirifruit is a corporate member of REAP’s
Strategic Platform. Thanks to REAP, Chirifruit entered a new market that brought additional monthly
income:
“In 2015, we participated at USAID Beneficiaries’ Trade Fair organized by US Embassy and USAID. The
employees of USAID and US Embassy had the opportunity to attend the event and learn about our
products. On that day we had impressive sales – about a thousand GEL. But what’s more important, we
received an offer of cooperation from the shop located
at the Embassy and so far they order our products up to
1000 Gel monthly, which increased our monthly sales by
about 15%” – recalls Ms. Sophio Jikia.
Although Chirifruit was not successful in obtaining
REAP’s grant, it receives REAP’s support as a member of
REAP’s strategic platform. Recently Chirifruit through
REAP was awarded the HERA grant in the amount of GEL
2,500. HERA’s grant is aimed to purchase the
commercial chocolate tempering and melting machine.
Sopho Jikia providing on-job training to her young
employee
Sopho Jikia and her family
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Annex 7: List of REAP Interns in the PY3
Position University Duration
Tbilisi Office
Monitoring and Evaluation, CBA Analysis International School of Economics at TSU (ISET) 05.28.2015-12.31.2015
Monitoring and Evaluation, CBA Analysis Cardiff Metropolitan University 05.28.2015-03.31.2016
Monitoring and Evaluation, CBA Analysis International School of Economics at TSU (ISET) 12.02.2015-04.01.2016
Monitoring and Evaluation, CBA Analysis Ivane Javakhishvili Tbilisi State University 04.01.2016-08.31.2016
Administration Ivane Javakhishvili Tbilisi State University 10.01.2015-03.31.2016
Administration Caucasus University 10.01.2015-03.31.2016
Administration Agricultural University of Georgia 04.01.2016-09.30.2016
Administration Ivane Javakhishvili Tbilisi State University 04.01.2016-09.30.2016
Finance International School of Economics at TSU 10.01.2015-03.31.2016
Finance Ilia State University 10.01.2015-03.31.2016
Finance Agricultural University of Georgia 04.01.2016-09.30.2016
Finance Ivane Javakhishvili Tbilisi State University 04.01.2016-09.30.2016
Workforce Development Ivane Javakhishvili Tbilisi State University 10.01.2015-03.31.2016
Workforce Development Agricultural University of Georgia 04.01.2016-09.30.2016
Access to Finance Ivane Javakhishvili Tbilisi State University 12.21.2015-06.30.2016
Access to Finance Ivane Javakhishvili Tbilisi State University 10.01.2015-12.31.2016
Access to Finance Ivane Javakhishvili Tbilisi State University 04.01.2016-07.04.2016
Communication Ivane Javakhishvili Tbilisi State University 10.01.2015-03.31.2016
Communication International Black Sea University 04.01.2016-09.30.2016
Environment Ivane Javakhishvili Tbilisi State University 01.16.2016-09.31.2016
Environment Ivane Javakhishvili Tbilisi State University 01.16.2016-09.31.2016
Environment Ivane Javakhishvili Tbilisi State University 01.16.2016-09.31.2016
Gender Ivane Javakhishvili Tbilisi State University 05.18.2014-09.30.2016
Gender International School of Economics at TSU 10.01.2015-03.31.2016
Gender Ivane Javakhishvili Tbilisi State University 04.01.2016-07.15.2016
Gender Ivane Javakhishvili Tbilisi State University 06.23.2016-12.23.2016
Gender International School of Economics at TSU 04.01.2016-05.01.2016
Communications and Executive Assistant
University of Parma, Italy 04.01.2016-09.31.2016
SME Development International School of Economics at TSU (ISET) 10.01.2015-03.31.2016
SME Development Financial/Industrial University 04.01.2016-09.30.2016
Grants Procurement St. Andrews University, St. Andrews, UK 10.01.2015-03.31.2016
Grants Procurement Ivane Javakhishvili Tbilisi State University 04.01.2016-09.30.2016
Telavi Office
Administration and Finance Iakob Gogebashvili Telavi State University 10.01.2015-03.31.2016
Administration and Finance Iakob Gogebashvili Telavi State University 10.01.2015-03.31.2016
Administration and Finance Iakob Gogebashvili Telavi State University 04.01.2016-09.30.2016
Administration and Finance Iakob Gogebashvili Telavi State University 04.01.2016-09.30.2016
Kutaisi Office
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Administration and Finance Akaki Tsereteli Kutaisi University 10.01.2015-03.31.2016
Administration and Finance Akaki Tsereteli Kutaisi University 10.01.2015-03.31.2016
Administration and Finance Akaki Tsereteli Kutaisi University 04.01.2016-09.30.2016
Administration and Finance Akaki Tsereteli Kutaisi University 04.01.2016-09.30.2016
GHGA Office in Tsalenjikha
Hazelnut Internship Georgian Technical University 08.17.2015-09.30.2016
Hazelnut Internship Akaki Tsereteli Kutaisi University 08.17.2015-09.30.2016
