Lebanon Investment in Quality (LINQ) Cooperative Agreement No. 72026818LA00001 - DEVELOPMENT ...
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Lebanon Investment in Quality (LINQ) Cooperative Agreement No. 72026818LA00001 Annual Progress Report October 1, 2020 – September 30, 2021 Submitted to USAID Lebanon By Land O’Lakes Venture37 October 2021 DISCLAIMER The authors’ views expressed in this report do not necessarily reflect the views of the United States Agency for International Development or the United States Government.
Table of Contents ACRONYMS AND ABBREVIATIONS ........................................................................................................ 2 PROJECT OVERVIEW .................................................................................................................................... 3 EXECUTIVE SUMMARY ................................................................................................................................. 4 PROGRESS made implementing the work plan ......................................................................................... 5 CHALLENGES .................................................................................................................................................21 PROGRAM MANAGEMENT AND ADMINISTRATION ....................................................................23 ANNEX I INDICATORS PERFORMANCE TRACKING TABLE .......................................................24 ANNEX II LINQ GRANTS TO DATE ......................................................................................................29 ANNEX III LINQ TECHNICAL ASSISTANCE TO DATE ...................................................................32 ANNEX IV LINQ QUARTERLY FINANCIAL REPORT .......................................................................35 Page | i Lebanon Investment in Quality (LINQ) Annual Progress Report – Y3, October 2020-September 2021
ACRONYMS AND ABBREVIATIONS AAR After-Action Reviews ABS Assaad Boulos Saadeh AOR Agreement Officer Representative CBA Cost-Benefit Analysis CCIAT Chamber of Commerce, Industry and Agriculture in Tripoli COP Chief of Party CSP Community Support Program CWB Cooperation Without Borders for Tailored Development F2F Farmer to Farmer FDA Food and Drug Administration FSSC Food Safety Systems Certification GAP Good Agricultural Practices GHP Good Hygiene Practices GMP Good Manufacturing Practices GMEL Global Monitoring, Evaluation and Learning HQ Headquarters IPM Integrated Pest Management IRAP Institut de Reeducation Audio-Phonetique LINQ Lebanon Investment in Quality LVDC Les Vergers des Cèdres MDP Message De Paix MEL Monitoring, Evaluation and Learning MSMES Micro, Small and Medium Enterprises RFA Request for Applications RTE Ready to Eat SMEs Small and Medium Enterprises SOW Scope of Work SSVP Société Saint Vincent de Paul TA Technical Assistance TGT The Good Thymes UOB University of Balamand USAID United States Agency for International Development YOH Youth of Hope Page | 2 Lebanon Investment in Quality (LINQ) Annual Progress Report – Y3, October 2020-September 2021
YEAR 3: October 1, 2020 – September 30, 2021 PROJECT OVERVIEW The Lebanon Investment in Quality (LINQ) activity increases the competitiveness of value-added agribusinesses in Lebanon through access to new markets, productivity and quality improvement and product innovation. LINQ is a 39-month, $5,900,000 cooperative agreement (number 720268l8LA00001) funded as an Associate Award under the Middle East and North Africa Farmer to-Farmer (F2F) Leader with Associates (number AID-OAA-L-13-00008). LINQ provides critical technical assistance (TA) through consultants and volunteers to value-added agribusinesses and their farmer and grower partners, sound management of a grants fund, and communication and outreach of learnings to stakeholders. LINQ is designed to work with actors along a supply chain with agribusiness partners as the “entry point.” Through grant investments and technical assistance partnerships, the project helps partners improve their production, fosters investments that might not have been made otherwise, and builds linkages upstream to famers and growers and downstream to destination markets. In addition to agribusiness partners, the project benefits supplying farmers and growers and their clients (packers, processors, buyers, and others) with a common objective of improving food quality, safety, and competitiveness. This third annual report documents the project’s activities from October 1, 2020, to September 30, 2021. The report describes the progress made in implementing the work plan, explains important challenges encountered during the third year, provides an update on program management and administration, and includes annexes to compare performance against the targets for the project’s results indicators. • Progress Made Implementing the Work Plan section is organized around the three components and the activities completed under each component. In addition, there is a summary of key activities related to Program Management and Administration work planning, recruitment, major procurements, and key deliverables submitted to USAID. • Challenges section describes the issues that arose during the second year of project implementation as well as the challenges LINQ encountered, and the action taken or proposed resolution of the challenge. • Indicator Performance Tracking Table (IPTT) and Summary Monitoring Evaluation and Learning (MEL) Table for Year 1, Year 2 and Year 3, describing progress against LINQ indicators. Page | 3 Lebanon Investment in Quality (LINQ) Annual Progress Report – Y3, October 2020-September 2021
EXECUTIVE SUMMARY Year 3 of implementation was one of continual challenges and team resilience. LINQ successfully initiated 7 new co-investment grants and 11 technical assistance assignments with Lebanese agribusinesses, while completing and closing 16 grants. LINQ achieved this success despite multiple challenges which had a tremendous impact on the workflow of the team, partners and suppliers alike. From a deep economic and financial crisis, political instability, and a worldwide COVID-19 pandemic to a devastating blast that erased part of the capital leaving hundreds of victims behind, Lebanon has been facing unprecedented challenges over the past two years. The value of local currency has crashed in Year 3, driving a large part of the population into poverty. LINQ activities and partners’ operation were directly impacted by these events, leading to delays in implementation, affecting rehabilitation works, procurement and delivery of equipment, production and distribution of end- products. Bank transactions were also affected resulting in delays in payments and cost share collection. Nevertheless, the LINQ team frequently assessed the roadblocks, measuring their impact on deliverables while implementing mitigation measures, in order to come up with adequate solutions to help navigate through this volatile environment while responding to the partners and beneficiaries needs. Throughout this year, LINQ encountered many challenges and initiated adaptive measures to overcome them. During that period, LINQ intensified on-line trainings with several partners and stakeholders. Remote TAs with US-based consultants and volunteers were adopted to complete support and bring partners together. During the month of June, LINQ team was pro-active in conducting a survey at the partner level to assess the impact that the reduction of fuel subsidies by the government would have on local businesses and industries, which confirmed that long-term fuel shortages will result in shrinking of businesses, whether in terms of production capacity or cost. Without opportunities to export their products, many processors will be compelled to close. While recognizing the challenges noted above, the highlights from Year 3 include the following results: 1. The value of new private sector investment leveraged in Year 3, is around $979,045, which is 84.7% of the annual target 2. Overall, 1825 individuals were impacted and benefited from LINQ in Year 3 activities (207% higher than the annual target) and 1456 farmers and individuals from organizations received training in year 3 (258% higher than the annual target). 3. The proportion of females compared to males participating in LINQ activities designated to increase access to increased economic resources is 44% compared to a target rate of 30%. 4. LINQ implemented 19 outreach and learning events and communication products, exceeding the target of 14 for the third year of the project In quarter 1, a project No-Cost Extension request was submitted to USAID, following recommendations of the Mid-Term Evaluation of Y2, to assist the project in recovering from implementation delays encountered in Year 2. The request was approved in quarter 2 and the project was officially extended till end of May 2022. Page | 4 Lebanon Investment in Quality (LINQ) Annual Progress Report – Y3, October 2020-September 2021
PROGRESS MADE IMPLEMENTING THE WORK PLAN COMPONENT 1: TECHNICAL ASSISTANCE PROVISION TO ENHANCE GROWTH OF LEBANESE AGRO-FOOD ENTITIES AND INCREASE COMPETITIVENESS OF VALUE CHAINS Introduction During Year 3 of the project, LINQ continued supporting its existing partners and signed 11 new TA partnerships which includes 2 non-profit organizations, 4 associations, and 5 businesses. These TA partnerships aim at assisting food processors and on-farm producers to acquire the knowledge and skills needed to improve their production processes to enhance the quality of their final product. The training tackled multiple topics pertaining to the beneficiaries’ interest: product packaging and labeling, integrated pest management, food safety & quality and good agriculture practices and traceability, irrigation / fertigation on apples and olives and processing of dairy products (Feta, Bulghari, Mozarella and Akkawi cheese). Since the launching of LINQ in September 2018, 29 TA partnerships have been established (refer to Annex III). To date, 3145 individuals have benefitted from the TA partnerships. Since September 2018, 35 companies or organizations in the food and agriculture industry have applied new technologies. Despite the many challenges that arose throughout the year (new wave of COVID-19 outbreak, continuous economic collapse, and shortages in many basic supplies including fuel), the LINQ team persisted on identifying new partnerships. This was achieved by organizing necessary visits and meetings while taking essential precautionary measures and exploring new topics as part of the adaptive management strategy. The new TA partners that were initiated in Y3 were identified through direct contact, but were mainly demand driven, with organizations reaching out directly to LINQ or through other USAID-funded projects that referred some of their partners to receive agricultural training under the PERSUAP. The LINQ team evaluated each partner, assessed their needs and worked closely with them to ensure proper allocation of resources. In addition to local paid consultants, LINQ mobilized two volunteer experts through collaboration with the Farmer-to-Farmer Program to provide necessary assistance and introduce new practices. LINQ’s support to these agri-businesses comes at a very critical time, helping them to navigate through the challenges and mitigate the current complex operating environment. Under TA component, LINQ provided training to a total of 476 beneficiaries during Year 3 of the project. A summary of the TA partnerships negotiated and initiated, and the specific farmer training activities implemented during the year follows below. Technical Assistance: New Partnerships in Year 3 Institut de Reeducation Audio-Phonetique (IRAP): Located in Ayn Aar, Mount Lebanon, IRAP supports deaf children and adolescents through rehabilitation and social reinsertion. IRAP reached out to LINQ requesting technical assistance to develop proper packaging and labeling for its food products to comply with international markets. LINQ’s consultant worked closely with IRAP on the development of the nutritional labeling of 26 items (20 biscuits and 6 frozen ready-to-eat items). The assignment also included shelf-life extension studies of the cookies produced at the center, either through controlling the ingredients, adjusting the recipes used, or by changing the type of packages utilized, to reduce moisture and oxidation rates within the final product. IRAP will now be able to export its products to new markets, including the Gulf countries and Europe, increasing its sales and benefiting its members and employees. Page | 5 Lebanon Investment in Quality (LINQ) Annual Progress Report – Y3, October 2020-September 2021
Abou El Ezz General Trading: Under this technical assignment, LINQ delivered Integrated Pest Management (IPM) training for olives to Abou El Ezz related farmers. The TA aims at supporting the partner in olive orchard improvement through appropriate training and the use of harvesting equipment and tools such as a mechanical harvester, nets, and plastic crates. The training was delivered on-site and was attended by 5 olive farmers and focused on the most important pests and fungal diseases the farmers are likely to encounter that may induce a significant loss in their yields. Among the topics covered were identifying symptoms, prevention techniques, and treatments of several disease and pests, as well as the important use of the delta traps in olive orchards to easily detect, count, and identify adult male pests. Société Saint Vincent de Paul (SSVP): This non-profit organization helps the poor and supplies their most urgent needs, SSVP reached out to LINQ requesting support for its Zahle branch, in which a group of volunteers cook free meals to families in need. LINQ provided SSVP volunteers training in “Food Safety and Quality best practices” with necessary recommendations to be adopted by kitchen personnel (cooks) in their day-to-day work. LINQ organized 2 training sessions to 10 staff members tackling the importance of hygiene and safety requirements that are mandatory to safely handle, prepare, and serve food and the different types of food hazards, their origin, the effect of such risks on the quality of the product, and the effect of the food hazard on the consumer. LINQ also provided SSVP with a set of kitchen tools to complement the TA. Cooperation Without Borders for Tailored Development (CWB): As part of its collaboration with other USAID-funded projects, LINQ was approached by the CSP project to support one of its beneficiaries in technical training on Good Agricultural Practices. LINQ organized a set of trainings targeting CWB farmers to learn about IPM and/or organic farming system, to promote alternative production practices that would allow farmers to access new market opportunities while improving their impact on the environment. The sessions were attended by a total of 35 participants most of whom are the nursery engineers. Youth of Hope (YOH): Through collaboration with the USAID-funded Baladi Program implemented by Caritas, LINQ partnered with YOH, a non-profit organization that aims to cooperate and coordinate with church pastoral youth committees, apostolic youth groups and all relevant actors to enhance the role of young people in the community spiritually, morally, psychologically, intellectually, academically, socially, and economically. LINQ organized a total of 39 training sessions focused on apples and olives and delivered virtually via Zoom to 233 young people. The topics covered Good Agriculture Practices including soil texture and composition as well as Irrigation and Fertilization. The online sessions were followed by 9 practical sessions attended by 139 young people, who applied practices such as pruning and grafting following LINQ consultants’ recommendations. These practical sessions were designed in a way to provide attendees with the chance to apply the information obtained during the online trainings to better engrave the knowledge received. Green Pure / Bustan Al Zeitoun: In collaboration with the F2F Program, LINQ partnered with Bustan Al Zeitoun, an extra virgin olive oil producer, located in Aabra, Sidon, to support them in the implementation of a Food Quality System which will allow them to access new international markets. Through two US-based volunteer experts, targeted technical assistance on Good Manufacturing Practices and Traceability were provided remotely over a period of 5 months, from May to September 2021. Following this TA, Bustan Al Zeitoun has witnessed improvements in its operations that comply with the requirements of export markets in the USA and Canada. They also received assistance to register their company and its products with the USFDA. Tanmiya wa Tahseen Association: The association provides social services to local communities in Khraybet El Jundi (Akkar) and supports farmers through the rehabilitation of their agricultural lands and marketing of their olive oil products. Under LINQ’s objective to empower women in rural areas and as part of LINQ’s gender crosscutting approach, several training sessions on food safety and food processing techniques were conducted. The LINQ consultant visited the facility to assess and provide adequate instructions and recommendations for proper rehabilitation works according to GMP Page | 6 Lebanon Investment in Quality (LINQ) Annual Progress Report – Y3, October 2020-September 2021
standards. In addition, a training on “Pomegranate Molasses: GMP, GHP and compliance regulations” was delivered to 16 women, and covered several aspects related to the production process of pomegranate molasses, allowed additives, and nutritional facts provided by LIBNOR standards. Jezzine and Zahrani Development / JAZ (j.Grove): Established to help farmers in the Jezzine and Zahrani regions to improve their products and access new markets, JAZ markets and sells products like pine nuts, honey, thyme, olive oil and other products under the j.Grove brand. It sells directly to consumers through its retail shop in Jezzine and through 30 different points of sales in Beirut and Mount Lebanon, mostly organic shops. During this year, LINQ recruited a Food Expert to help JAZ adapt its labeling design to meet USFDA requirements so that their products can enter the US market. Le Bon Lait: LINQ signed a partnership with Le Bon Lait, a small dairy cooperative located in Akkar that supports local dairy keepers and possesses a dairy processing factory that manufactures 15 types of local cheese and dairy products with around 500 points of sales in North Lebanon. To expand its production to new types of cheese (Kaval, Bulgarian cheese, Feta, Mozzarella, etc.), Le Bon Lait requested TA on “dairy products processing (Fetta and Bulgari cheese)”. Through introducing new types of foreign cheese products Le Bon Lait will contribute to import substitution goals within the dire economic situation in the country at prices affordable to local consumers. As a result, Le Bon Lait will be able to increase the purchase of milk from the farmers, enhance the income of the cooperative by 10% and access at least 4 new potential markets in the first year of production. Women Association in Badghan: As part of LINQ’s objective to empower women and help them acquire financial autonomy, LINQ organized a two-day training on “Dairy Products Processing: Mozzarella and Akkawi cheese production” with the Women Association in Badghan. This training was attended by a total of (twenty-five) 25 participants. The aim of these sessions is to improve women’s food processing skills and develop new products that would be new sources of income to them and their families. The Women Association in Badghan gathers women from Badghan and the neighboring villages who produce mouneh products such as jams and kishk in addition to bread, cakes, and local cheese. Women Association in Khraybeh: Located in Khraybeh, Chouf, the association entered in a partnership with LINQ to support its women members with improved food production techniques, namely, the making of Mozzarella and Akkawi cheese. The two-day training sessions were attended by a total of 34 women, who learned hands-on how to produce these new types of cheese. The women members of this association produce the products at their homes and distribute them through personal networks. Following LINQ’s intervention, they aim at expanding their production capacity of dairy products (yogurt, labneh, cheese) and start working in small groups which will help increase the quantity and decrease production cost. On-going partnerships from Year 2 TA Partner Brief Updates Lebanese - LINQ completed the consultancy sessions under this TA, with the consultant delivering the packaging design that complies with USFDA requirements, for a total of 25 vegan ready-to-eat Mezze and ready-to-cook items. The Good - LINQ provided additional support this year to employees of TGT on Food Safety and Quality Thymes to ensure these essential practices are well assimilated and applied at the facility. - In addition, TGT introduced necessary upgrades to its premises to comply with the LINQ (TGT) consultant’s recommendations on Good Manufacturing Practices which will allow them to apply to internationally recognized quality assurance systems such as HACCP and FSSC. Message de - During this year, LINQ supported MDP with training on “Food Safety and Quality”, attended Paix (MDP) by 8 MDP staff, with the purpose of upgrading their knowledge and practices to comply with food processing standards. The MDP team prepares food meals that are delivered daily to more than 100 people. Page | 7 Lebanon Investment in Quality (LINQ) Annual Progress Report – Y3, October 2020-September 2021
Trainings to Farmers and Students Throughout this year, LINQ provided training to farmers, women and students tackling several topics of interest. These sessions were offered online, especially during the months when confinement, due to the COVID-19 second wave, was imposed. In collaboration with the expert consultants, LINQ innovated in the presentation technique to make it more interactive and show application of the theoretical information provided. This included training on grafting via a live demonstration with real rootstock and necessary tools. This new method was very well received by the attendees and helped them better assimilate the information, as relayed by many of them. LINQ partnered with many universities across Lebanon to support their students in advancing their knowledge in agricultural topics that would allow them to be better prepared for their careers. A summary of these trainings can be found in the following table: Number of non-unique Topic Date Host Attendees November 13th, 2020 Ain El Tineh Association 25 farmers University of Holy Spirit Kaslik Apple pruning November 25th, 2020 28 students (USEK) techniques 116 students completing a December 4th, 2020 Lebanese University (LU) bachelor’s in agriculture Apple and fruit November 20th, 2020 Green Orient session 1 96 farmers grafting techniques December 2nd, 2020 Green Orient session 2 44 farmers Integrated Pest December 8th, 2020 Jezzine Cooperative 27 farmers Management on apples December 11th, 2020: Werhaniyeh 16 farmers 17 students completing University of Holy Spirit Kaslik November 26th, 2020 their studies in Beverages (USEK) Olive oil quality and Enology assessment and 54 students completing evaluation Lebanese American University November 27th, 2020 their studies in Nutrition and (LAU) Food sciences 75 students completing November 18th, 2020 Lebanese University (LU) master’s degree in Food HACCP and Food Technology Safety 59 students completing November 25th, 2020 Lebanese University (LU) master’s degree in food technology Orchards establishment for January 12th, 2021 Green Orient 71 farmers fruit trees Pruning January 14th, 2021 Assoun Association 71 farmers techniques for Fruit Trees January 28th, 2021 Sohmor Women Association 33 farmers Good Manufacturing January 27th, 2021 Green Orient 171 farmers Practices Page | 8 Lebanon Investment in Quality (LINQ) Annual Progress Report – Y3, October 2020-September 2021
Pruning for pears and grafting of February 12th, 2021 Ain El Tineh Association 24 farmers fruit trees February 4th, 2021 Women in olive oil 22 farmers Olive oil quality assessment and 89 students completing evaluation February 26th, 2021 Notre Dame University their studies in Nutrition and Food sciences Good Agricultural Practices in olive February 25th, 2021 Women in olive oil 18 farmers orchards Animal Nutrition 16 students (3rd, 4th, 5th, April 27th, 2021 USEK and healthcare year students) Honey Quality May 7th, 2021 NDU 66 students Assessment Table 1. Life of Project Results per TA Partnership Page | 9 Lebanon Investment in Quality (LINQ) Annual Progress Report – Y3, October 2020-September 2021
COMPONENT 2: FACILITATE TECHNOLOGY UPGRADING THROUGH INVESTMENT PARTNERSHIPS AND GRANTS Introduction Through co-investing with agribusinesses in technology upgrades and improved systems, LINQ aims at supporting the food production sector to improve quality at the farm and firm levels in order to expand market reach locally and internationally. This support proved to be of high value within the current context in the country, with economic, financial and health environments becoming more and more challenging and, in some cases, collapsing. Together, LINQ and its partners had to be creative and resilient to navigate through the complex operational environment, assessing consequential scenarios and conceptualize approaches for achieving the project’s strategic objectives. Despite all the challenges, LINQ was able to initiate 7 new co-investment grants following USAID approval, while completing and closing 16. The value of the LINQ contribution for the seven in-kind grants is $295,904, while $304,053 (or 51%) is the value of leveraged investment to be contributed from the businesses (out of which $198,967 is in capital cost share). Within this difficult economic and financial context, LINQ has worked around the challenges and successfully implemented the already planned interventions, shifting in-person training to online platforms when feasible, delivering equipment despite some delays and following up closely with grantees providing guidance and support as needed. Grantee Selection. LINQ’s new partners were selected from the RFA-2 list of pre-selected candidates, from already existing TA partners or through requests received from businesses outside the RFA mechanism. Despite all the challenges, LINQ technical team managed to visit the short-listed businesses at their premises, met with owners on several occasions to review the management and operations and to validate the information contained in the original applications. This visit allowed the team to better understand the candidates’ needs and gaps and determine how to best address them. Necessary due diligence reviews were undertaken following the thorough development of each grant package featuring criteria for impact, sustainability, feasibility, and additionality. It also included a cost- benefit analysis (CBA) for each grantee. The CBA calculations project the outcome and impact of the co-investment and TA and forecast sales increases and profitability of the business operation. University of Balamand and CCIAT, reached out to the project with unique business ideas, that adhered to LINQ’s objectives of responding to the current and evolving needs of agro-processors and resilient farmers amid the present economic uncertainty and COVID-19 outbreak. The 7 new co-investment grants that were approved by USAID this year covered all 3 sub-sectors: fresh fruits, processed products and dairy products. With the increasing shortage of basic goods, LINQ is precisely supporting its partners to have higher efficiency and better quality to be able to access new local and international markets. LINQ assisted in establishing a one-of-its kind burghul production facility in the Bekaa, enhanced the production of the Lebanese Zaatar in South Lebanon, and supported several dairy processors in Mount Lebanon in upgrading their capacities and improving the quality of their final products. LINQ also responded to the rising need of small farmers to boost their resilience through rehabilitating a vegetable seedling nursery within a highly known university in the North. All these awarded co-investment grants were structured as in-kind grant agreements. LINQ procured and delivered various food processing equipment and provided TA to several partners based on the requirements defined during the due diligence of the partnership. The implementation progress of these co-investment grant partnerships is described in more detail below. Page | 10 Lebanon Investment in Quality (LINQ) Annual Progress Report – Y3, October 2020-September 2021
Progress updates of new grants University of Balamand: As part of its adaptive management approach, LINQ has responded to a request from University of Balamand to rehabilitate and upgrade their nursery in Baino, Akkar region, one of the poorer areas in the country, where farmers rely heavily on their produce for the survival of their families. Under the current difficult financial situation, farmers have become unable to buy the vegetable seedlings they need because the costs have increased dramatically. LINQ entered into a co-investment partnership with the UOB to establish a new one-of-a-kind nursery that will provide farmers in the surrounding 14 villages in the Joumeh area with high quality vegetable seedlings at a more affordable price. UOB will produce a total of 620,000 vegetable seedlings of different crops per year to benefit a minimum of 50 farmers. Furthermore, 10 individuals from the university and / or neighboring villages and 50 farmers will benefit from extensive training sessions and technical follow up, to help them improve their agricultural and nursery management knowledge and the quality of their final product. During Y3, LINQ organized two online training sessions on “Best Management Practices for nurseries” and “Integrated Pest Management” to the nursery staff. Meanwhile, UOB initiated and finalized the installation of the greenhouse which includes the following equipment: a ventilation system, a tray seeding machine, a germination room, a greenhouse structure, a working stand, a curtain system, a watering system, and electric supplies. A launching event, to promote the project is expected during the first quarter of Y4. CCIAT: LINQ partnered with the Chamber of Commerce, Industry and Agriculture in Tripoli, to help CCIAT upgrade its pilot plant for the agro-food sector that serves stakeholders, entrepreneurs, food establishment owners, farmers, and trainees. The partnership focuses on upgrading the equipment at CCIAT/IDRAC for the processing of: (1) dried fruit-based chips packed into new improved bags, and (2) dried fruit/herbs-based tea bags, which will increase the purchase of raw materials and benefit at least 50 new farmers. During this year, CCIAT conducted 2 training sessions, titled “Good Agriculture Practices and Post- Harvest Techniques on Fruit Trees” and “Fruits and Vegetables Dehydration Techniques” to a total of seventy-eight (78) beneficiaries. In parallel, LINQ provided CCIAT with a software for the development of food products’ nutritional facts. Five agri-businesses, of which 3 are LINQ partners, have already benefitted from this service offered by CCIAT for free as part of its cost share. Figure 1, Royal Organics equipment delivery Royal Organics (RO): A food processor located in Rachaya Al Wadi, Bekaa, Royal Organics looks at complementing its existing production line of granola bars to increase productivity and improve the quality of the final product. LINQ’s support will enable Royal Organics to purchase an additional 73,260 kg of fresh grapes from 20 new and 4 current farmers. This will lead to increasing its supply network to 24 farmers, creating new employment opportunities for four new employees, and increasing sales. During this year, LINQ delivered to RO the equipment under the in-kind grant and supported fifty- three (53) grape farmers through training sessions on “Pruning of Grapes” and “Grapes Orchards Establishment and Grafting. In parallel, RO initiated rehabilitation works based on the food consultant Page | 11 Lebanon Investment in Quality (LINQ) Annual Progress Report – Y3, October 2020-September 2021
recommendations in compliance with FSSC 22000 requirements and purchased a gas convection oven and a generator under its cost-share. Farm Hill: A family-owned dairy production company located in Lehfed – Jbeil, Farm Hill entered into a co-investment partnership with LINQ to acquire new equipment for the improvement of processed cheeses and butter. This will allow Farm Hill to purchase fresh milk from 15 small scale dairy farmers and create 2 new job opportunities. During Y3, a mobile cold room and a milk analyzer were delivered to Farm Hill, including a wastewater treatment system that complies with environmental norms and standards. A training session for Farm Hill and related dairy farmers on “Animal Nutrition and Healthcare” was conducted, and a TA on butter-making was virtually led by Land O’Lakes, Inc., expert volunteer, providing Farm Hill with targeted and essential support for butter production. In parallel, Farm Hill purchased the following equipment under its cost-share: a pH meter with probe, a stainless-steel working table, a stainless-steel trolley, a trolley with shelves, wooden shelves, stainless-steel cheese shelves, a handheld thermal inkjet printer, a hand impulse sealer, a trolley with hangers in addition to non- budgeted equipment complementary to the production line such as a stainless-steel trolley, a cheese cooking machine, a cheese cutter, and shredder. Figure 2, La Vallee Blanche one-on-one training on “Animal Nutrition and Healthcare”. La Vallee Blanche: Located in Ehmej, Mount Lebanon, La Vallee Blanche, is a small family-owned dairy processing facility that processes diverse types of local dairy products while also developing international cheeses. As part of this partnership with LINQ, La Vallee Blanche is receiving support to upgrading its existing traditional processing line that operates in small, disconnected spaces, which makes the process unsanitary and irregular. The new process will be a continuous closed, hygienic line ready to process and distribute consistent, high-quality competitive products in the local market. During Y3, LINQ provided La Vallee Blanche with a cold room and 3 training sessions on “Animal Nutrition and Healthcare” improving the knowledge and the practices of twenty-two (22) dairy farmers. JADE LIFE: Another dairy processor located in Ghouma, Batroun, North of Lebanon, JADE LIFE specializes in the processing, packing, and distribution of traditional Lebanese dairy products mainly Shanklish balls and dried labneh in oil. With this co-investment JADE LIFE looks to improve the quality of its products, expand its processing capacity, and meet increasing local and export market demand for dairy products. Shifting its production from powdered to fresh milk will add value to JADE LIFE’s processed products while benefitting local dairy farmers directly. Following the LINQ consultant’s recommendations, JADE LIFE has launched rehabilitation work complying with Good Manufacturing Practices (GMP) standards and purchased a steam boiler under its cost-share. Eco Tech: Eco Tech is the final agri-business to be selected for a co-investment grant under the LINQ project. A small oregano processing facility owned by a young entrepreneur, Eco Tech partnered with LINQ to acquire needed knowledge and technology for upgrading the facility and improving their production processes. Showing high commitment, during this year Eco Tech was able Page | 12 Lebanon Investment in Quality (LINQ) Annual Progress Report – Y3, October 2020-September 2021
to quickly purchase equipment needed and undergo rehabilitation works under its cost share. The following equipment (under Eco-Tech cost-share) were installed in the newly established hangar: a thyme thresher and a horizontal mixer. The equipment under LINQ’s contribution will be delivered and installed during Y4Q1. Table 2. Status Updates on the Investment Partnerships (Active) Grantee Brief Updates Al Dayaa - All equipment under grantee cost-share were delivered during the month of November 2020. - Rehabilitation process finalized following the consultant visits and recommendations on GMP requirements during the month of July 2021. - Despite the challenges encountered during this year, partner was able to install and connect all machines and start up the production process. - Partner delivered two training sessions “Olive Orchards Management” attended by a total of 34 farmers. - LINQ executed a no-cost extension until October 31, 2021, in order to complete the collection of all the data needed. - Jobs created: 4.96. - Total number of beneficiaries: 41. Rim Mills - All equipment under both LINQ and partner cost-share were delivered, installed, and branded during the month of May 2021, following several delays caused by the lockdown imposed internationally in many countries. - Rehabilitation of the facility to adhere to the GMP requirements completed during the month of April 2021. - Following USAID intervention, Rim Mills collaborated with two wheat farmers and supported them to cultivate brown wheat in order to encourage import substitution, around 400 Kg was cultivated in 20 dun land. - A video was produced depicting USAID intervention with Rim Mills and shared on USAID Lebanon, USAID Middle East and LINQ Facebook pages. - USAID representatives visited Rim Mills facility during the month of June 2021 - Trainings/technical assistance visits on “Good Agriculture Practices” conducted to 12 wheat farmers. - LINQ executed a no-cost extension till October 31, 2021, to proceed with the data collection. - Total number of beneficiaries: 22. Torzaya - A set of kitchen equipment was delivered to Torzaya cooperative premises during the Cooperative month of May 2021, including 2 tomato juicers, a vacuum machine, a tray dehydrator, a slicing machine, 3 open burners, a stainless-steel hood, a stainless-steel table and stainless- steel double sink, 2 refractometers, 5 polyethylene pallets and a set of casseroles. - Torzaya cooperative purchased and installed all equipment under its cost-share (a manual slicing machine for tomato, stainless steel working tables and a set of kitchen tools, a digital scale, heat sealer for plastic bags and a fire extinguisher). - Rehabilitation following the consultant recommendations adhering to the GMP requirements was finalized beginning the month of May 2021. - Due to an unfortunate family accident, some activities have been put on-hold and will be resumed shortly. Olive Trade - Manufacturing of the equipment under both LINQ and partner’s cost share is underway from a supplier in Turkey. - LINQ consultant visited the facility to provide Olive Trade with recommendations for the rehabilitation of the facility to comply with Good Manufacturing Practices (GMP) requirements. Table 3. Status Updates on the Investment Partnerships (closed) Page | 13 Lebanon Investment in Quality (LINQ) Annual Progress Report – Y3, October 2020-September 2021
Grantee Brief Updates Les Vergers des - October 2020: the launching of the production of 600 apple sauce doypacks. Cedres (LVDC) - December 2020: the launching of the e-commerce website in order to sell Pomariis apple sauce, Pomariis apple sauce was also posted on Quick Bite a food e-commerce website. - Grant closed on December 31, 2020. - Number of beneficiaries: 47. Agro Cedrus - October 2020: on-going production of the organic carob molasses at the factory. - USAID visit to Agro Cedrus factory on October 21, 2020. - December 2020: two videos shot at the premises, one with the local TV channel LBCI and the second is LINQ video that was posted on USAID Lebanon and LINQ facebook pages. - Jan 2021: Agro Cedrus was awarded the first price (winning $4,500) of the Berytech Hakaton that focuses on innovative solutions to challenges in the agri-food industry. 204 participants were competing, out of which 9 teams were pre-selected. - Grant closed on December 31, 2020. - Jobs created: 1.6. - Total number of beneficiaries: 156. ABS Group - Due to the lockdown imposed worldwide, the delivery of the Semi-automatic labeling machine was delayed till April 2021 which requested LINQ to execute a no-cost extension until June 30, 2021. - Grant closed on June 30, 2021. - Jobs created: 1.79. - Total number of beneficiaries: 57. Lakkis - After several delays caused by the lockdown and due to the harvest season, piping and connections, as well as the cooling tower under the partner’s contribution and the pasteurizing tunnel under LINQ’s cost share were finally installed in August 2021. - Grant close on August 31, 2021. - Jobs created: 6.29. - Total number of beneficiaries: 104. Hajjar Foods - Budget realignment approved by USAID to introduce equipment for the production of new SAL items (cream cheese and processed cheese) to compete with imported goods and sustain the business. - Partner purchased and installed solar panels at the facility. - LINQ delivered all equipment under its cost share. - October 2019 - August 2021: Technical visits to 10 cow/goat keeper conducted under partner cost-share. - September 2021: technical assistance under LINQ contribution on digital marketing launched and finalized. The consultancy included photoshoots promoting healthy eating and recipes using Go Baladi products to be used in a promotional campaign. - Jobs created: 7.84. - Total number of beneficiaries: 31. Bazoun - Grant closed on December 31, 2020. Cooperative - Total number of beneficiaries: 64. Batrouniyat - All equipment delivered, installed and operational. - Grant closed in December 2020. - Total number of beneficiaries: 10. Manara Dairy - 2 cooling systems (LINQ cost-share) and 2 transportation vehicles (grantee cost-share) were purchased, delivered and branded. These items were procured under a cost- extension in order to achieve the company’s goals and serve largest geographical areas. - June 10, 2021visit of USAID representatives to the facility. - Partner conducted a one-on-one training session on Animal nutrition and Healthcare to a total of 7 cow/goat/sheep keepers. - Grant closed on June 30, 2021. - Jobs created: 5.28. - Total number of beneficiaries: 14. Assoun - December 2020: Virtual training conducted for Assoun farmers on fruits grafting. Association - Grant closed on December 31, 2020. - Jobs created: 2.28. - Total number of beneficiaries: 161. Page | 14 Lebanon Investment in Quality (LINQ) Annual Progress Report – Y3, October 2020-September 2021
Grantee Brief Updates Akkar Al Atika - Grant closed on December 31, 2020. Cooperative - Total number of beneficiaries: 68. Hasroun - Grant closed on December 31, 2020. Cooperative - Total number of beneficiaries: 73. Shapash SARL - Partner conducted a training on “apple pruning techniques” to a total of 17 farmers. - Grant closed on June 30, 2021. - Total number of beneficiaries: 23. Agri Pharm - Consultant conducted a training on apple pruning to farmers in the Bcharre region - Grant closed on December 31, 2021 - Jobs created: 0.4 - Total number of beneficiaries:214 CIDRA - The equipment delivery and operation at the facility were affected by the lockdown, however, despite the delays LINQ was able to deliver a filling machine and an autoclave to partner while CIDRA procured the corks and a foil applicator. - Partner launched the company’s website: https://www.cidralebanon.com/. - LINQ shot a video featuring a virtual tour of the partner’s facility. - Partner was nominated as one of the Ten Outstanding Young Persons (TOYP), by JCI (Junior Chamber international). - USAID representative visited partner’s facility in August 2021. - A budget modification was approved by the AOR to cover the cost of manufacturing and installing of a steel cage to protect the steam boiler for security purposes. - Grant closed on September 15, 2021. - Jobs created: 1.76. - Total number of beneficiaries: 15. Bon Choix - During this year, Bon Choix launched the production process at the facility after delivery and installation of all the machines acquired following this co-investment grant. - Following LINQ support partner was able to invest in a cashew ram machine locally designed and manufactured. - LINQ conducted a virtual training on “Artificial Swarming for Honeybees” to 36 attendees. - A video of the facility was developed and posted on USAID Lebanon, USAID Middle East and LINQ Facebook pages and Land O’ Lakes twitter page and YouTube channel. - Grant closed on June 30, 2021. - Jobs created: 4. - Total number of beneficiaries: 80. Em El Khayrat - Following the lockdown imposed over the course of several month and the general mobilization, and Covid-19 cases detected among employee and family members, Em El Khayrat rehabilitation process experienced many delays, nevertheless, partner was able to make up for the lost time and finalize the rehabilitation process, installation of the wastewater treatment and cold storage room. - LINQ delivered all equipment under its cost share. - A one-on-one training for 4 cow keepers on “Animal Nutrition and Healthcare” was conducted during the month of March 2021. - Following the “LEAN Management” Webinar organized by LINQ to its partners, Em El Khayrat was selected for a free assessment of its process by the expert who provided needed recommendations for operation improvements. - USAID representative visited partner’s facility in August 2021. - Grant closed on June 30, 2021. - Jobs created: 1.7. - Total number of beneficiaries: 31. Grants Modifications & Extensions. During Year 3, LINQ completed and closed 16 grants and initiated 7 new, while continuing the implementation of the other 4 active grants. Nevertheless, this exceptionally challenging year Page | 15 Lebanon Investment in Quality (LINQ) Annual Progress Report – Y3, October 2020-September 2021
impacted the planned activities and resulted in delays towards original timelines. LINQ executed no- cost extensions to 7 of its grants partners, ABS and Bon Choix (June 30, 2021), Lakkis (August 31, 2021), Cidra (September 15, 2021), Hajjar Foods (September 30, 2021), Al Dayaa (October 31, 2021) and Rim Mills (October 31, 2021), to ensure proper implementation of the interventions under the grants and complete the data collection process. Moreover, the following grants underwent budget realignments: Hajjar Foods introduced new equipment to produce new dairy products; Cidra received an additional autoclave to ensure proper sanitization measures, along with a steel cage to protect the steam boiler; Rim Mills underwent a budget modification to decrease grantee cost share by $30,000 while Manara Dairy saw their budget increase to cover the cost of 2 refrigerated boxes for new distribution vehicles; Finally, the specs of the milk/cream separator for Farm Hill were revised and adjusted as well as the capacity of the wastewater treatment system, which directly reflected on the initial budget. Additionally, with the unprecedented events, ongoing economic crisis and currency devaluation, topped with fuel and diesel shortages and unexpected increase in shipping cost, LINQ anticipates extending some of the current grants until Y4Q1. During the month of September, LINQ received the approval from the AOR on calculating cost share from its partners based on receipts rather than invoices, considering that the average gap between the former and the latter is around 3 weeks. This comes in response to the latest DQA recommendation that emphasizes on the importance of timeliness and accuracy in data reporting. Access to Finance. During the past year of implementation bank restrictions on payment transfer, money withdrawal and loan provision, led to unavailability of any kind of loans. LINQ partners were not able to access any type of financing and had to rely on their own funds. The continuing financial and economic crises directly impact two of LINQ’s performance indicators: (i) number of enterprises that have accessed loans and the (ii) total value of accessed loans. Since mid-2019, credit for SMEs through the banking system has not been available. The Lebanese pound lost more than 90% of its value during this year, reaching 25,000 Lebanese pounds for the USD, while the jobs market has experienced a severe drought which caused the closure of many businesses in all sectors. Furthermore, with the COVID-19 new outbreak and imposed lockdown over the course of several month, many bank branches were closed and others are opening according to a pre-determined schedule. LINQ team has continued monitoring the situation and orienting its partners to available funding from other projects that could be offered. This has been part of LINQ’s coordination with other USAID- and other- funded activities. COMPONENT 3: COMMUNICATE RESULTS THROUGH OUTREACH AND SHARE ACTIVITY KNOWLEDGE WITH THE PUBLIC AND PRIVATE SECTORS Monitoring, Evaluation, and Learning In coordination with Venture37 Global Monitoring, Evaluation and Learning (GMEL) team, the LINQ team led the implementation of the MEL plan, supervised data collection from farmers and businesses, and conducted data analysis, ensuring reporting requirements were met in a timely manner. Moreover, in response to the COVID-I9 outbreak, and the total and partial lockdowns enforced by the government during Q1 and early Q2, in addition to deteriorating economic situation in the country, the MEL team took necessary measures to adapt and customize the data collection processes, demonstrating the ability of the team to learn and adapt. The MEL team collaborated with Page | 16 Lebanon Investment in Quality (LINQ) Annual Progress Report – Y3, October 2020-September 2021
Venture37 GMEL to continue data entry into Impact, the electronic data collection and management system. To note that, during the month of September, LINQ received the approval from the AOR on calculating cost share from its partners based on receipts rather than invoices, considering that the average gap between the former and the latter is around 3 weeks. This comes in response to the latest DQA recommendation that emphasizes on the importance of timeliness and accuracy in data reporting. Field visits and Remote Data Collection: Due to the restrictions on movement in response to the COVID-19 pandemic, the social distancing requirements in Q1, and fuel shortage in Lebanon in Q3/Q4, MEL relied mostly on remote data collection. The team used a variety of online platforms such as Google Meet and Microsoft Teams to conduct meetings. Phone calls and WhatsApp were also used to contact various beneficiaries and collect data remotely. Moreover, the MEL team conducted 8 field visits to partners to support them and coach them in filling out the business survey and provide LINQ with the necessary data to meet their reporting requirements. IPTT Targets redistribution: Following the six months no-cost project extension, the MEL manager worked on redistributing the indicator targets for Y3 over the remaining life of the project until the second quarter of Y4. The redistribution of the targets was approved by USAID and shared with Social Impact. Reporting against the new distribution of targets started in Q3 of Year 3. Fuel reduction survey: LINQ conducted a survey for 16 business partners to understand the impact of continuous fuel and electricity cuts on partner organizations and their ability to maintain business operations despite the many challenges. Many businesses reported that they were struggling to secure electricity and fuel to maintain operations. They needed energy sources to operate equipment, generate and store their products and deliver them to the market. As a result of the severe fuel shortages, several partners were forced to limit production to a few basic items and lower the quantity of the products distributed to the market. The full fuel survey reduction report was shared with USAID. Farmer's survey: The MEL Manager oversaw the implementation of two farmers surveys in Year 3, in Quarters 1, and 4 to capture data for the indicators, “Number of farmers applying new technology” and the “Number of farmers with improved income” as a result of the trainings attended. The surveys assessed the extent to which the trainings organized by LINQ helped farmers and food producers improve their economic situation by learning and implementing new practices and how effective field visits were as a training tool. The sample was selected at a standard 95% confidence level and 5% margin of error. Overall, 450 farmers and food processors were surveyed during the past year. The population was identified based on several factors such as the type and content of different trainings, seasonality, and possibility of applying new technology among participants. The surveys were conducted by external enumerators using remote data collection methods over the phone and WhatsApp. Data Quality Assessment: The MEL team prepared the necessary documents and collaborated with Social Impact for a Data Quality Assessment conducted remotely in January 2021. Collaboration, Learning and Adapting: As part of its Collaboration, Learning and Adapting strategy, one of the LINQ team’s approaches is to conduct internal After-Action Reviews (AAR) and Pause and Reflect Sessions to assess current practices, identify opportunities to improve and adapt accordingly. During the Year 3 of the project, two AAR sessions were organized as follows: One session was conducted in December in coordination with the technical team, aimed at discussing the quality of field visits as a possible alternative for public trainings that might become difficult to carry out with the COVID-19 lockdown. During the meeting, the team Page | 17 Lebanon Investment in Quality (LINQ) Annual Progress Report – Y3, October 2020-September 2021
agreed on quality standards that need to be emphasized to partners and partner organizations when conducting field visits. A second session was conducted in May 2021 to capture the learning extracted from the findings of the farmers survey carried out in April. The purpose of the meeting was to brainstorm with the technical team on ideas that could help improve the impact of these trainings and better support the farmers in improving their income. In addition, the MEL Manager led Pause and Reflect sessions on quarterly basis during the past year, four in total. The purpose of these Pause and Reflect sessions was to discuss the indicator results of the quarterly progress reports, plan and agree on next steps. MEL data collected during a quarter was reviewed and the team reflected on the outputs and outcomes achieved. Successes and challenges were discussed, and next steps were mapped out in order to ensure the targets will be met for the next quarter. Communications and Outreach During Year 3 of implementation, LINQ developed 5 promotional videos, 5 success stories highlighting the project’s interventions, organized 5 site visits to USAID representatives and two partners meetings, as well as 1 stakeholders webinar. LINQ continued using social media and online platforms to promote the project’s work, and to engage with other development stakeholders. This ensured proper promotion of the project and generated great engagement from the online community on USAID Lebanon, USAID Middle East, Land O’Lakes, and LINQ’s social media platforms. The videos, success stories and most of LINQ’s activities were promoted on social media platforms. They attracted new followers to LINQ’s Facebook page and generated engagement and exposure to USAID’s investments and commitments, and increased visibility for the LINQ activity. However, several events were cancelled or postponed due to the unstable political situation and the lockdown following the COVID-19 spread, especially in-person partner meetings and USAID visits. Audio-Visual Activities During this year, 5 videos were developed and shared on social media platforms and uploaded on V37 YouTube channel, 4 of which were filmed at partners’ facilities: Agro Cedrus, Bon Choix, Cidra and Rim Mills. The videos depicted the transformation the partners facilities underwent following USAID’s intervention, major improvements that followed the support received and future plans. Cidra virtual tour: With the surge of COVID-19 cases and the lockdown imposed by the government, several USAID visits to partners’ premises had to be cancelled/postponed. To be creative and solution-oriented, LINQ in coordination with USAID, came up with the idea of a virtual tour video at Cidra to showcase the space, equipment, and operation. Cidra’s owner took the viewer on a tour of his facility, explaining every stage of the process and highlighting USAID’s contribution to the success of his business. Eid El Fitr cooking Video: A cooking tutorial video was shot at LINQ’s partner Message de Paix kitchen, with the purpose of celebrating Eid El Fitr marking the end of the Holy month of Ramadan. The chef and his team cooked creative and tasty recipes using ingredients provided by LINQ’s partners and incorporating them in a creative way. The video was shared on Eid day, on USAID Page | 18 Lebanon Investment in Quality (LINQ) Annual Progress Report – Y3, October 2020-September 2021
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