Project Year 3 Work Plan - Prepared for review by the United States Agency for International Development under USAID Contract No72011418C00001 ...
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Project Year 3 Work Plan Prepared for review by the United States Agency for International Development under USAID Contract No72011418C00001, The USAID Agriculture Program implemented by CNFA
The USAID Agriculture Program
PY3 Work Plan
October 1, 2020 – September 30, 2021
USAID Contract
72011418C00001
Implemented by CNFA
Submitted to:
USAID/Caucasus
Mr. David Tsiklauri, COR
Submitted on August 31, 2020
Revised version submitted on September 30, 2020
Page | 1Table of Contents
Acronyms................................................................................................................................................................................... 5
Executive Summary ................................................................................................................................................................... 7
Program Description .................................................................................................................................................................. 8
Key Achievements in PY2 ......................................................................................................................................................... 8
Lessons Learned in PY2 .......................................................................................................................................................... 10
The Value Chain Approach ..................................................................................................................................................... 11
1. Berries ....................................................................................................................................................................... 11
2. Culinary Herbs .......................................................................................................................................................... 11
3. Perishable Vegetables................................................................................................................................................ 12
4. Stone Fruits ............................................................................................................................................................... 12
5. Pome Fruits ............................................................................................................................................................... 12
6. Table Grapes ............................................................................................................................................................. 13
7. Mandarins.................................................................................................................................................................. 13
8. Nut Crops .................................................................................................................................................................. 13
Detailed Activities ................................................................................................................................................................... 13
1. Sector and VC Analysis Study Update ...................................................................................................................... 13
2. Organizational Capacity Building ............................................................................................................................. 14
2.1. Regulatory Framework for Associations ......................................................................................................... 14
2.2. Support to Sectoral Associations under Capacity Building Grant RFA #004 .................................................. 15
2.3. Additional Capacity Building Grant RFAs for Associations ........................................................................... 15
2.4. Support to Agricultural Cooperatives .............................................................................................................. 15
3. Access to New Varieties and Inputs .......................................................................................................................... 15
3.1. Variety Registration ......................................................................................................................................... 16
3.2. Legislative Framework for Input Supply ......................................................................................................... 16
3.3. Nursery Certification Study Tour .................................................................................................................... 16
3.4. Training Nurseries in Certification Requirements ........................................................................................... 16
3.5. Video Guides on Nursery Operations .............................................................................................................. 17
3.6. Study Tour for Nurseries ................................................................................................................................. 17
3.7. Nursery Project with the Embassy of the Netherlands ..................................................................................... 17
3.8. Best Practices for Propagation in Berry Nurseries ........................................................................................... 17
3.9. Information on Vegetable Seedling Regulations ............................................................................................. 17
3.10. In-Kind Grants for Service Providers for Niche Implements ........................................................................... 18
4. Production Technologies ........................................................................................................................................... 19
4.1. Short Certificate Course Development ............................................................................................................ 19
4.2. Consultancies in Production Best Practices ..................................................................................................... 19
4.3. Production Guides ........................................................................................................................................... 20
4.4. International Study Tours ................................................................................................................................ 21
4.5. Cooperation with the Imereti Agro Zone ......................................................................................................... 21
4.6. Domestic Study Tours ..................................................................................................................................... 22
4.7. Application of Digital Tools ............................................................................................................................ 22
5. Consolidation and Cold Storage ................................................................................................................................ 23
Page | 25.1. Consolidation Centers...................................................................................................................................... 23
5.2. In-Kind Grants for Cold Storage and Consolidation ........................................................................................ 24
5.3. Cold Storage Management............................................................................................................................... 25
5.4. Supply Chain Localization............................................................................................................................... 25
5.5. Increased Visibility and Integration of VC Members through E-Platform ...................................................... 25
6. Processing Technologies ........................................................................................................................................... 26
6.1. Modern Processing Technologies for Fruits, Vegetables, and Berries............................................................. 26
6.2. Almond and Walnut Processing Technologies ................................................................................................ 27
6.3. In-Kind Grants for Processing Technologies ................................................................................................... 27
7. Market Access ........................................................................................................................................................... 27
7.1. International Standards and Certifications ....................................................................................................... 28
7.2. Export Facilitation ........................................................................................................................................... 29
7.3. Domestic Market Linkages .............................................................................................................................. 30
8. Access to Finance and Business Management .......................................................................................................... 33
8.1. Partnership with TBC Bank ............................................................................................................................. 34
8.2. Financial Management and Tax Reporting ..................................................................................................... 34
9. Public Information and Outreach .............................................................................................................................. 35
9.1. Educational Initiative ‘AgriTalk’..................................................................................................................... 35
9.2. Grant Solicitation Outreach Campaign ............................................................................................................ 36
9.3. Media Outreach ............................................................................................................................................... 36
9.4. Visits to Grant Projects .................................................................................................................................... 36
9.5. Discovering Georgian Agriculture and Gastronomy ....................................................................................... 37
10. Environmental Compliance and Management........................................................................................................... 37
10.1. Pest Monitoring Initiative ................................................................................................................................ 37
10.2. OSHE and COVID-19 Training....................................................................................................................... 38
10.3. Best Waste Management Practices .................................................................................................................. 38
11. Inclusive Agricultural Value-Chain Development .................................................................................................... 39
11.1. AgriBuzz Corps Program ................................................................................................................................ 40
11.2. Internships ....................................................................................................................................................... 40
11.3. Research and Competition for Young Agricultural Professionals and Entrepreneurs...................................... 40
11.4. Strengthen Agri-Entrepreneurial Social Capital for Women and Young Adults ............................................. 41
11.5. Food Carving ................................................................................................................................................... 41
12. Investments in Innovation ......................................................................................................................................... 42
13. Monitoring and Evaluation ........................................................................................................................................ 42
Partnerships and Collaboration ................................................................................................................................................ 43
1. Host Country Coordination ....................................................................................................................................... 43
2. Donor Cooperation .................................................................................................................................................... 44
3. Universities ............................................................................................................................................................... 45
4. Private Sector Partnerships ........................................................................................................................................ 45
Project Management ................................................................................................................................................................ 47
1. Office & Staffing....................................................................................................................................................... 47
2. STTA......................................................................................................................................................................... 47
3. Subcontracting........................................................................................................................................................... 49
4. Resiliency and Contingency Planning ....................................................................................................................... 50
Page | 35. Grant Management .................................................................................................................................................... 50
6. International Study Tours .......................................................................................................................................... 51
Annex 1: Program Year Three Budget..................................................................................................................................... 52
Annex 2: Performance Monitoring Plan .................................................................................................................................. 52
Page | 4Acronyms
ATSU Akaki Tsereteli State University
B2B Business to Business
BMSB Brown Marmorated Stink Bug
BRC British Retail Consortium
BSP Business Service Provider
CIS Commonwealth of Independent States
CNFA Cultivating New Frontiers in Agriculture
COVID Novel Coronavirus
EDA Export Development Association
EMMP Environmental Mitigation and Monitoring Plan
EPPO European and Mediterranean Plant Protection Organization
ERC Environmental Review Checklist
ERP Enterprise Resource Planning
EU European Union
FAO Food and Agriculture Organization
FSSC Foundation Food Safety System Certification
GAP Good Agricultural Practices
GEL Georgian Lari
GAWB Georgian Association Women in Business
G-HIP Georgia Hazelnut Improvement Project
GI Geographical Indication
GIPA Georgian Institute of Public Affairs
GoG Government of Georgia
GRA Georgian Retailers Association
GYAA Georgian Young Artists Association
HACCP Hazard Analysis and Critical Control Point
HORECA Hotel Restaurant Catering
IAVCD Inclusive Agricultural Value-Chain Development
ICC Information-Consultation Center
IEE Initial Environmental Examination
IFS Information and Featured Standards
Int International
IPM Integrated Pest Management
ISO International Standards Organization
LOP Life of Project
M&E Monitoring & Evaluation
MASHAV Israel’s Agency for International Development Cooperation
MEPA Ministry of Environmental Protection and Agriculture
MOESD Ministry of Economy and Sustainable Development
MSME Micro, Small and Medium Enterprise
NFA National Food Agency
NOP National Organic Program
OSHE Occupational Safety, Health, and Environment
PERSUAP Pesticide Evaluation Report and Safer Use Action Plan
PMP Performance Monitoring Plan
PPP Public-Private Partnership
PY Project Year
RAS Rural Advisory Services
RDA Rural Development Agency
RFA Request for Applications
SCM Supply Chain Management
SDC Swiss Agency for Development and Cooperation
SEEDEV The South-East Europe Development Organization
SRCA Scientific-Research Center of Agriculture
STTA Short Term Technical Assistance
TA Technical Assistance
TBD To Be Determined
TOC Terms of Cooperation
TOT Training of Trainers
UAE United Arab Emirates
Page | 5UGT United Global Technology
UK United Kingdom
UNECE United Nations Economic Commission for Europe
US United States
USAID United States Agency for International Development
USDA United States Department of Agriculture
VC Value Chain
VCAP Value Chain Action Plan
VET Vocational Education and Training
WEAI Women’s Empowerment in Agriculture Index
WFLO World Food Logistics Organization
Page | 6Executive Summary
In the second year of program implementation, the USAID Agriculture Program continued to build on
the systems put into place in Year One (PY1) and delivered a strong performance despite the major
implementation and supply chain disruptions caused by COVID-19. In addition to the progress made
towards key deliverables, the USAID Agriculture Program made shifts in its programmatic focus to
support broad, value-chain, and sectoral level activities that will have systemic impact on the targeted
value chains. In addition, as a response to the significant impact that COVID-19 had on implementation,
as well as on agricultural supply chains, the USAID Agriculture Program introduced a number of online
mechanisms for delivering training and technical assistance, mitigating the impact of travel restrictions
on implementation. This heightened resilience and contingency planning will benefit the Program in
the event of any resurgence or other shocks. In Project Year Two (PY2), the Program also deepened
and expanded its partnerships with the private sector, government agencies, universities, and other
donor projects, and these partnerships will continue to be a hallmark of implementation in Project Year
Three (PY3).
The Program will update its initial Sector and Value-Chain Analysis in PY3. This will gauge the impacts
of Program interventions, identify changes in the competitive landscape, which have resulted from
COVID-19 disruptions, and offer an opportunity to recalibrate Program approaches as necessary to
respond to changes in the operating environment.
In PY3, the Program will deliver tailored training and technical assistance, bolstered by targeted grant
investments, that support the development of the targeted value chains: berries (including kiwifruit),
culinary herbs, perishable vegetables, stone fruits, pome fruits, table grapes, mandarins, and nut crops
(excluding hazelnuts).
The USAID Agriculture Program’s systems approach to value-chain development will focus on the
following critical functions in PY3:
Organizational Capacity Building: Support improvements in the legislative framework for
association development, and work with sectoral associations to build their capacity and deliver
improved services to members in the targeted value chains.
Access to New Varieties and Inputs: Improve the legislative framework for input supply and support
variety registration and nursery certification; improve practices in fruit nursery propagation and
vegetable seedling production; and support service providers to acquire niche implements for Program
value chains.
Production Technologies: Focus on the development of curricula and materials that can be
disseminated to a large audience, increasing digital delivery of materials; expand the use of digital tools
in production management; and expose large numbers of producers to new technologies through
training and study tours (domestic and international) to accelerate uptake of modern production best
practices.
Consolidation and Cold Storage: This critical link in multiple targeted value chains will continue to
be a focus with continued support to existing grantees, and investment in an additional 15 consolidation
centers and cold storages. Training, technical assistance, and study tours will help to bring international
best practices to this industry.
Processing Technologies: Under this activity, the Program will seek to introduce new technologies and
industry best practices that can be broadly adopted and replicated.
Market Access: In the area of quality and food safety standards, the Program will go beyond its support
to individual enterprises to support certification companies to increase their qualifications and the range
of services and certifications they can provide. Likewise in marketing activities, the focus has shifted
Page | 7to broad, transformational marketing, such as partnerships with the Georgian Retailers Association
(GRA), which improves access to domestic markets for many companies, and branding Georgian
agricultural/food products as a whole, which has a catalytic impact on large numbers of producers and
processors.
Access to Finance and Business Management: Improve enterprise skills in financial management and
reporting, and work with bank partners (like TBC Bank) to develop tailored financial products to
address agricultural lending gaps and develop joint programs to support agribusiness borrowers.
Activities in these functional areas will be bolstered by cross-cutting work in Public Information and
Outreach, Environmental Compliance and Management, Inclusive Agricultural Value-Chain
Development, Investment in Innovation, and Monitoring and Evaluation.
Program Description
The USAID Agriculture Program
Life of Project Targets
$7.4 million in matching grants disbursed to 120 enterprises leveraging at least $9.04 million in
matching contribution
3,680 new jobs created
$70 million increase in sales by supported enterprises including $23 million in exports and $11.3 million
through new local markets
New cash markets in a value of $10 million available to producers
Consultancies and trainings provided to 170,000 individuals by supported enterprises
The USAID Agriculture Program is a five-year activity that aims to accelerate the growth of agricultural
subsectors that demonstrate strong potential to create jobs and increase incomes and revenues of micro,
small, and medium enterprises (MSMEs). In particular, the Program supports the development of value
chains by assisting and strengthening relevant enterprises and organizations in the targeted agricultural
subsectors, which include berries (including kiwifruit), culinary herbs, stone fruits, perishable
vegetables, pome fruits, table grapes, mandarins, and nut crops (except hazelnuts).
The USAID Agriculture Program is implemented through two integrated, mutually reinforcing
components. Under Component One, the Program provides cost-share grants to MSMEs; cooperatives;
service, information, and extension providers; and associations, while Component Two focuses on
demand-driven technical assistance, including technical and/or business trainings, and a wide spectrum
of customized consultancies aimed at building the capacity of targeted value-chain actors.
Key Achievements in PY2
In the second year of program implementation, the USAID Agriculture Program continued to build on
the systems put into place in PY1 and delivered a strong performance despite the major implementation
and supply chain disruptions caused by COVID-19. The following are key achievements of PY2 that
will be continued, expanded, and replicated in PY3:
1. Successful launch of the new AgriTalk initiative. This is a Facebook live video session, which is
delivered by the Program’s staff members and/or invited experts. The goal is to provide
stakeholders with interesting and useful information and to keep them updated with the most recent
developments in the agriculture sector. To date, the USAID Agriculture Program delivered a total
of 33 AgriTalk episodes, accumulating more than 160,000 Facebook reaches. After the launch of
AgriTalk, the Program’s Facebook page added an additional 5,000 new followers.
2. Legal registration of a new berry variety. The Malga protected strawberry variety has been
registered at Sakpatenti and Mza Chitili has received legal permission to propagate this variety.
Page | 83. Launch of supply chain partnership with McDonald’s. The Program signed Terms of
Cooperation (TOC) with McDonald’s Georgia to support the development of a sustainable local
food supply chain for the company. Three local growers have been linked with McDonald’s, and
the first, Smart Logistics Ltd., has obtained GlobalGAP certification and already supplied 40 tons
of lettuce to McDonald’s restaurants in Tbilisi.
4. Launch of a marketing partnership with the GRA. Through cooperation with the GRA, the
Program seeks to develop strong marketing channels for selected value chains. More specifically,
this initiative aims to promote Georgian products through tailored marketing and sales mechanisms
and enable local entrepreneurs to engage with 25 GRA members.
5. Strengthened environmental partnership with Trécé and the National Food Agency (NFA).
The partnership organized a scientific conference to discuss the control and management methods
of Drosophila Suzukii, a type of fruit fly. The event gathered leading American entomologists and
Georgian scientists. The partnership then launched a broader pest management project to identify
and address the three most dangerous pests in the eastern and western regions of Georgia.
6. Supported International Food Safety and Quality Certifications. Continuing its robust
certification efforts, the Program conducted gap analyses against Hazard Analysis and Critical
Control Point (HACCP)/ International Standards Organization (ISO) and GlobalGAP requirements
for 41 agribusinesses and supported beneficiary enterprises in the quality and standards certification
process. Three agribusinesses have been certified and eight are in-process for HACCP/ ISO
certification; one has been certified and nine in-process in GlobalGAP; and three have been certified
and three in conversion for Organic.
7. Approval for 31 new in-kind grants. In the past year, the Program released four new Requests for
Applications (RFAs) which focused on cold storage, supply chain development, processing
infrastructure, and nursery development. In response to these RFAs, 31 grants (including one
innovation grant, discussed below) were submitted and approved, with 12 more in process
(including three innovation grants), bringing the total grant funds committed to $3.4 million,
leveraging $7.2 million in private sector funding.
8. Launched four (4) capacity building grant projects. In the past year, the Program launched
projects focusing on the facilitation of exports, improved access to inputs, facilitating youth
involvement in agriculture, and providing opportunities for women-owned enterprises and
cooperatives.
9. Launch of the new Innovation Grants program: The Innovation Grants Annual Program
Statement (APS) was released and the first innovation grant has been approved. This Innovation
Grant will assist the grantee to establish an anti-hail net production factory. At present, three more
promising innovation grant proposals are under development.
10. Provided occupational safety training in response to new laws and emerging threats. In
response to the new Law on Occupational Safety and Health, the Program delivered an intensive
training program to representatives of Georgian agribusinesses from priority value chains. In total,
22 individuals obtained certificates as Qualified Occupational Safety Specialists. In addition, the
Program provided practical guidance to 17 agribusinesses to enable them to implement these
standards. In response to the COVID-19 outbreak, the USAID Agriculture Program trained 106
people in Occupational Safety during Emergency Situations.
11. Access to export-related regulations and requirements. The Crop2Shop (www.crop2shop.ge)
platform was launched to provide Georgian start-ups and established exporters technical guidance
on export-related requirements and regulations in the Georgian language for 21 commodities with
export potential. For each commodity, and differing based on the commodity, Crop2Shop provides
information for five key target markets.
12. Launch of e-portal for government services. In cooperation with the USAID Economic Security
Program, the Program supported the development of a new E-Portal (www.programs.gov.ge) that
brings all the services and available programs offered by Government of Georgia (GoG) agencies
Page | 9under one user-friendly interface, to better support beneficiaries to start or expand business
operations.
13. Development of digital tools for agricultural production. In partnership with United Global
Technology (UGT), the program developed a mobile harvest application for primary producers
operating in the targeted value chains to make harvest more efficient, reduce workload in keeping
track of pickers and harvested fresh produce, and easily generate statistical data related to payments,
yields of different varieties, and quality control.
14. Launched new branding for Georgian agricultural products. In cooperation with Enterprise
Georgia, Ministry of Economy and Sustainable Development (MOESD), Rural Development
Agency (RDA), Ministry of Environmental Protection and Agriculture (MEPA), and the National
Wine Agency, a new branding project was launched to increase awareness of Georgia and its
agricultural products in the international market, by positioning the country as a point of origin at
different trade fairs, events, on social media and in publications.
15. Trade Fair Participation. In cooperation with Enterprise Georgia, the Program assisted 11
companies from targeted value chains to participate in two international trade shows: Biofach 2020
and Gulfood 2020. Linkages from these shows resulted in 15 new buyers and the cumulative exports
resulting from trade fairs and study tours comes to $4.8 million GEL ($1.57 Million USD).
16. Consulting and Training. Throughout the year, 75 primary producers and agribusinesses received
individual consultancies in modern production and postharvest handling practices; 1,100 farmers,
postharvest handling operators, processors, and extension specialists were trained; 26
agribusinesses participated in international study tours; 10 nurseries received individual
consultancies in nursery development and certification; 10 primary producers received tailored
consultancies in organic production; nine processors received customized advice on new product
development; and 14 agribusinesses developed a new branding identity.
Lessons Learned in PY2
During the second year of program implementation, activities accelerated, building on the strong
systems and platforms developed in PY1 and informed by lessons learned. Moving into PY3, the
USAID Agriculture Program again is reflecting on the accomplishments and lessons learned over the
past year of implementation to inform, refine, and enhance activities for the upcoming year.
To institutionalize interventions and have a broader impact on selected value chains, it is important to
continue to expand the program focus from firm-level activities to sector-level interventions. This will
enhance the impact of USAID investments and reach a broader number of beneficiaries, introducing
the systems and foundation for lasting, systemic industry changes. To achieve this shift, the USAID
Agriculture Program will:
• Seek out beneficiaries and investment opportunities that have a broad and catalytic impact,
including but not limited to industry associations, service providers, input and equipment suppliers,
testing laboratories, collection centers or nurseries.
• Engage government agencies on multiple levels as implementing partners and as beneficiaries of
Program support. This includes joint development of new programs and materials, institutional
capacity development such as through study tours, and advocacy for policy changes, as appropriate.
• Maximize engagement of local implementing partners wherever possible to institutionalize delivery
of project services, building on successful models of partnership with Business Service Providers
(BSPs) in training and certification activities.
• Target supply chain gaps that impact multiple value chains and serve many clients, such as
consolidation centers, cold chain infrastructure, and input supply.
• Bolster brand development for individual enterprises by developing brand awareness for Georgian
produce as a whole, in partnership with Enterprise Georgia.
• Leverage the innovation grants mechanism to move from incremental changes to catalytic
Page | 10investments that have an impact on multiple value chains.
• Develop an M&E methodology that allows for accurate measurement of the impact of these new,
broader interventions.
In the second quarter of PY2, COVID-19 significantly impacted program implementation. In addition
to the travel and logistics challenges that impacted project implementation, the global pandemic had a
dramatic and lasting impact on agricultural trade and supply chains. Moving forward, the USAID
Agriculture Program will enhance its resiliency and contingency planning for PY3. A new section under
Project Management describes the robust resiliency and contingency planning systems developed.
These draw on lessons learned from handling previous exogenous shocks (Russian trade embargoes,
Brown Marmorated Stink Bug (BMSB) infestations) and provide a roadmap for internal program
operations as well as support to program beneficiaries in negotiating the new challenges presented by
COVID-19.
The Value Chain Approach
The USAID Agriculture Program’s approach to value-chain development has been evolving, from a
firm-focused approach to a supply chain systems approach. While there is still a definite value in
supporting individual firms along an agricultural value chain, either because they will introduce new
and replicable technologies, or because they provide a good, function, or service that has a catalytic
impact up and down the value chain, the focus of activities will move to those enterprises and
organizations (Value-Chain Drivers) that support an entire value chain or multiple, linked value chains.
During PY3, as described in more detail below, a mid-term Sector and Value-Chain Analysis will be
conducted to update information and assumptions on each value chain, and to re-evaluate decisions,
adding or dropping specific value chains and tweaking activities as necessary to maximize program
impact and subject to the approval of USAID.
The strategy and approach for each selected value chain is described briefly in this section, while
specific activities will be described in the following chapter. The focus in these value-chain synopses
is on activities specific to the crop or value chain, not those activities that cut across many value chains,
such as cold chain management, quality certifications, or branding and marketing.
1. Berries
The berry value chain in Georgia is at a more advanced stage of development than many other high-
value fruits and vegetables. Despite significant progress, however, the emphasis is still on improving
varieties and production practices. As Georgia advances, the needs for technical assistance become
more and more sophisticated, and the USAID Agriculture Project continues to introduce the most
cutting-edge varieties and cultivars, technologies, and practices to improve positioning in this very
competitive value chain. In addition, as beneficiaries become more sophisticated, program interventions
become more tailored by niche value chain: strawberries, raspberries, blackberries, or blueberries, rather
than “berries”. In PY3, support for these berry value chains will include extensive support to nurseries
on propagation and licensing agreements, as well as support to producers through consultancies,
trainings, and international and domestic study tours.
The focus in the emerging kiwifruit subsector will be on access to improved cultivars (inputs) and
primary production, with a focus on producers from Guria, Samegrelo and Ajara. The kiwifruit orchards
in Georgia are not technologically advanced. A study tour for producers will be proposed for Italy,
which is known for its kiwifruit production and which has the ability to demonstrate best practices and
varieties that can be introduced in Georgia.
2. Culinary Herbs
Page | 11Work in the culinary herbs value chain has been focused on production. The subcontractor Farmentor
will continue to play a key role in production assistance through trainings, development of short
production guides, and tailored technical assistance, with a focus on irrigation, fertilization, integrated
pest management, and quality control system. Also, in production, the USAID Agriculture Program has
contracted the Georgian Institute of Public Affairs (GIPA) to develop and institutionalize a certificate
program in greenhouse production of culinary herbs and conventional and specialty vegetables.
Moving into PY3, assistance to the culinary herbs value chain will begin to focus more on postharvest
handling and processing, with subcontractor Farmentor beginning to provide training and technical
assistance to postharvest operators such as consolidation centers and packing houses. Access to market
assistance will be two-fold, with an export focus on a pilot partnership scheme with Rijk Zwaan’s (a
Dutch company) Ukraine-based subsidiary. On the domestic side, the focus will be on improving quality
through the application of GlobalGAP and strengthening linkages with the hotel/restaurant/catering
(HORECA) industry, including McDonald’s.
In bay leaf, the focus will be on the beginning of the value chain, with development of a model bay leaf
nursery, production improvement, and on the processing side, with technical assistance on sorting,
drying, cutting, and crushing.
3. Perishable Vegetables
Activities in the perishable vegetables value chain will follow a model similar to that of culinary herbs,
building on activities already focused on production improvements, and beginning to shift the focus to
postharvest handling, processing, and access to markets.
Production assistance includes training and technical assistance, with a focus on field-based educational
sessions. Together with culinary herbs producers, perishable vegetable producers will be invited on a
study tour to Israel to observe successful operation of model greenhouses.
Technical assistance and domestic study tours will improve the capacity of consolidation centers and
packing houses in sorting, grading, washing, cutting, packing, and storing practices. Access to markets
will focus on export promotion, using the same pilot partnership for culinary herbs to promote exports
to the Commonwealth of Independent States (CIS) and European countries, specifically for bell peppers
and eggplants.
4. Stone Fruits
Support to the stone fruit value chain will primarily focus on production, with broader supply chain
management and access to market activities covering postharvest activities. Support will include online
technical assistance and remote trainings in winter orchard operations and a study tour for local
agronomists to Serbia, as well as hands on technical assistance. Support will focus on the management
of newly established orchards, including suitable planting distances, soil nutrition, plant protection,
fertilizer application, pruning, and tree formation systems. The USAID Agriculture Program will devote
major effort to the establishment and strengthening of high-tech nurseries and linking them with the
international certified producers of stone fruits planting materials.
5. Pome Fruits
Support to the pome fruit value chain will be very similar to that for stone fruits, with some activities
combined, such as online technical assistance and remote trainings in winter orchard operations and a
study tour for local agronomists to Serbia. Assistance will primarily focus on production and the proper
management of newly established orchards, including suitable planting distances, soil nutrition, plant
protection, fertilizer application, pruning, and tree formation systems. The USAID Agriculture Program
will also facilitate access to pome fruit planting materials from international certified producers and
strengthening high-tech nurseries as another key area of focus.
Page | 126. Table Grapes
While the table grape value chain is still under-developed in Georgia, there are significant opportunities
to advance productivity in this sector, to improve competitiveness, and meet market requirements. To
make locally grown table grapes competitive in both domestic and international markets, it is imperative
to increase yields, improve quality, and offer varieties that are in the greatest demand. Interventions
targeting this value chain will focus on supporting producers in Kakheti and Mtskheta-Mtianeti to
address two critical value-chain gaps: access to inputs and challenges in primary production. The
Program will promote appropriate cultivars and develop a series of informational guides with step-by-
step recommendations from planting through to harvest, complemented by consultancies on pruning,
pest management, fertigation, and related industry best practices. This will be complemented by study
tours, both domestic and international, to promote best practices in propagation and orchard
management.
7. Mandarins
The mandarin value chain will focus on primary production and postharvest handling, with an
international consultant helping producers to improve harvesting and orchard management. Local and
international consultants will help mandarin consolidators to improve their postharvest practices to
maintain quality and minimize supply chain losses.
The Mandarin Growers Association, Subtropiki, has applied for a Capacity Building Grant, and will be
supported in training to members on primary production, facilitation of linkages between growers and
financial institution, access to markets, and public-private dialogue. Also, with support from the
Program and the Ministry of Agriculture of Adjara, the association will organize a mandarin festival to
promote the sector to stakeholders.
8. Nut Crops
Support to the nut value chain will offer very targeted technical assistance for specific gaps along the
chain. The Program will develop informational brochures on quality requirements for almond and
walnut producers and offer technical assistance in drying, postharvest, and processing technologies.
The Almond and Walnut Growers Association will seek Program support to strengthen technical and
organizational capacity, provide production training to members, and develop a joint sales strategy
(consolidation of commodities). The association will also organize a conference, with program support,
to offer networking and dialogue among the value-chain stakeholders.
Detailed Activities
As described above, the general implementation strategies for each selected value chain differ,
especially at the production, postharvest handling, and processing phases, although there are many
commonalities in supply chain management, marketing, and access to inputs. Activities are described
in more detail in the following sections, organized by function, but still detailing the specifics for each
value chain. Activities are described in the narrative, with each subsection followed by a Gantt Chart
indicating timing for specific actions.
Elements of Components 1 and 2 are woven throughout the work plan narrative. The two components
complement each other, and jointly support each value chain. Describing them together shows more
accurately how the investments in Component 1 are used strategically to bolster and support the
technical assistance that is the core of Component 2 and the USAID Agriculture Program.
1. Sector and VC Analysis Study Update
The USAID Agriculture Program’s activities and interventions were guided by an initial sector selection
and value-chain analysis that led to detailed Value-Chain Action Plans (VCAPs) for each of the selected
value chains. During PY3, a mid-term update of this study is crucial to reassess data and reexamine
Page | 13program foci and interventions. In light of major changes to the operating environment, and disruptions
in supply chains and trade due to COVID-19, this study is even more timely and necessary.
The overall approach and methodology will remain the same, to allow for consistency and comparison.
The value-chain analysis and prioritization, as before, will be based on weighted evaluation of a range
of criteria: size of the sector, competitiveness, market potential, job creation, importance for rural
development, possibility for value addition, and government emphasis. Differences in results will be
highlighted and analyzed further. If necessary, the Program may propose adding or dropping value
chains.
Confirmed value chains will then again be subject to an in-depth gap analysis, and the VCAPs updated,
as required. These updated VCAPs will inform any potential necessary modifications to the USAID
Agriculture Program’s PY3 Work Plan, which would then be submitted to USAID for approval.
SEEDEV will again lead the mid-term value-chain assessment, drawing on their extensive experience
in Georgia and the region, supported by an international consultant who worked on the initial VCAPs
with SEEDEV and with input from Program staff.
Once the mid-term Value-Chain Assessment is completed, the USAID Agriculture Program plans to
organize a business networking event to share findings and provide opportunities for potential
cooperation. Grant recipients and beneficiaries from targeted value chains including nurseries, farmers,
cold storages, food processors, and input suppliers will participate in the event, which has been
tentatively scheduled for April. These enterprises will have an opportunity to raise their profiles,
exchange knowledge about best practices, establish business-to-business (B2B) links and identify new
clients.
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept
1 Sector Selection and VC Analysis Study Update
1.1 Methodology Review
1.2 Competitive Analysis updated for products and product groups
1.3 Value Chain Prioritization and Selection reviewed in light of new information
1.4 In-depth gap analysis updated for selected priority value chains
1.5 Updated Sector Selection and VCAPS submitted
1.6 Event to share updated VCAP findings and provide value-chain networking opportunities
1.7 STTA - Ivana Dulic Markovic (Int)
1.8 STTA - Goran Zivkov (Int)
1.9 STTA - Kathleen Doherty (Int)
2. Organizational Capacity Building
Business Associations, both sectoral and cross-cutting, are vital to the implementation of the USAID
Agriculture Program and the sustainability of activities beyond the life of the project and serve as a
critical resource for industry actors. While many associations and their members have already received
program support, the focus now will shift to how to make these associations sustainable and viable in
the long-term. The USAID Agriculture Program will assist associations in creating strategic
development plans and building internal capacities, such as strengthening governance structures,
introducing membership fees or fee-for-service structures, and advocating for member interests. At the
same time, the Program will continue to support value-chain actors to create new sector associations,
as necessary.
2.1. Regulatory Framework for Associations
The level of advancement of sectoral and business associations is low and their current role in the
development of the sector is rather limited. With the latest trends observed in the agriculture sector with
an increased number of commercial operations, the role for associations is becoming more important
and the GoG intends to introduce support programs to strengthen the capacity of associations so that
they play a greater role in the development of the agricultural sector. The USAID Agriculture Program
will cooperate with the Food and Agriculture Organization (FAO), which intends to engage a consultant
to examine and advise on the regulatory framework governing sectoral associations to identify potential
Page | 14areas for improvement and ways to enhance the sustainability and voice of these associations, working
closely with MEPA on all aspects of this activity.
2.2. Support to Sectoral Associations under Capacity Building Grant RFA #004
Capacity Building Grant RFA #004 was geared towards the strengthening of sectoral associations. Five
associations have been shortlisted: 1) Mandarin Growers Association Subtropiki, 2) Georgian Berry
Growers Association, 3) Georgian Blueberry Producers Council, 4) Almond and Walnut Growers
Association, and 5) Culinary Herbs Growers Association. These grants are intended to both strengthen
the internal capacities of each association, as well as improve their delivery of services to members.
Proposed grant projects will follow all standard procedures for USAID approval.
2.3. Additional Capacity Building Grant RFAs for Associations
Capacity Building Grants strengthen business associations by increasing their core capacities and
strengthen their foundations for long-term organizational sustainability to enable them to fulfill their
missions efficiently. The USAID Agriculture Program will continue offering Capacity Building Grants
to address specific constraints to horticultural value-chain development and engage beneficiary
organizations in the implementation of a wide range of programmatic interventions in selected value
chains. In PY3, the Program plans to announce two RFAs focused on support to sectoral associations
to address topics such as supply chain integration in the horticultural sector, local market linkages, and
new products and services for agribusinesses in the horticultural sector.
2.4. Support to Agricultural Cooperatives
The USAID Agriculture Program will focus its efforts on building technical and institutional capacity
of grantee cooperatives. To date, 39 cooperatives have received targeted training or technical assistance,
while 14 are USAID Agriculture Program grantees. The Program will augment this investment and
technical support by providing tailor-made technical assistance focused on the internal capacity building
of cooperatives to foster their sustainability and will work closely with USAID’s Economic Security
Program to facilitate inclusion of these cooperatives in their activities.
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept
2 Organizational Capacity Building
2.1 Regulatory Framework for Associations
2.1.1 Provide information and support to FAO consultant on regulatory framework for associations
2.2 Support to Sectoral Associations under Capacity Building Grant RFA #004
2.2.1 Finalization and submission of grant proposals to USAID for approval
2.2.2 Implementation of grant project and support to Mandarin Growers Association Subtropiki
2.2.3 Implementation of grant project and support to Georgian Berry Growers Association
2.2.4 Implementation of grant project and support to Georgian Blueberry Producers Council
2.2.5 Implementation of grant project and support to Almond and Walnut Growers Association
2.2.6 Implementation of grant project and support to Culinary Herbs Growers Association
2.3.7 Monitoring and reporting grant projects
2.3 Additional Capacity Building Grant RFAs for Associations
2.3.1 Issue RFA for Capacity Building Grants in response to specific needs in selected VCs
Targeted and individualized outreach inviting applicants to submit proposals and as questions and consult
2.3.2
with the Program’s staff
2.3.3 Conduct initial evaluation of applications
2.3.4 Develop full grant proposal in collaborative process between applicant and Component 2 staff
2.3.5 Finalization and submission of grant proposals to USAID for approval
2.3.6 Implementation of initial grant projects with technical oversight by Component 2 staff
2.3.7 Monitoring and reporting grant projects
2.4 Support to Agricultural Cooperatives
2.4.1 Deliver tailor-made TA to build the organizational capacity of grantee cooperatives
3. Access to New Varieties and Inputs
One of the key challenges faced by agribusinesses across all targeted value chains has traditionally been
limited access to modern, effective inputs and equipment. With the development of a robust network of
FSCs, many of the issues around access to seeds, pesticides and fertilizers have been addressed or
Page | 15mitigated, and similarly Machinery Service Centers have increased access to basic machinery services.
However, critical gaps remain in variety registration, and certification and operation of fruit, berry and
vegetable seedling nurseries, as well as in access to more niche machinery services for specific value
chains. The USAID Agriculture Program’s interventions will focus on these targeted gaps.
3.1. Variety Registration
There is a lack of modern, highly productive, and disease-free varieties in Georgia. The USAID
Agriculture Program aims to introduce best practices for properly managing the introduction of new
varieties in the country. The first registration of a new strawberry variety (Malga) took place in PY2
and in PY3, the Program will continue collaboration with Sakpatenti, the National Intellectual Property
Center, on registration of specific new varieties. It is anticipated that at least two (2) new berry varieties
will be registered at Sakpatenti in PY3.
3.2. Legislative Framework for Input Supply
The NFA has requested the USAID Agriculture Program’s assistance in developing a set of
recommendations regarding input supply operations. The agency is looking for recommendations to
initiate changes in the legislative framework necessitated by the EU association agreement and
corresponding obligations. With USAID’s approval, the Program announced a call and is in the process
of selecting an international consultant. As part of the assignment, the expert will work with four
national consultants specializing in the areas of plant protection, law, public health, and toxicology.
This regulation will also be harmonized with USAID’s regulations on pesticides (PERSUAP) which
has recently been approved by USAID.
3.3. Nursery Certification Study Tour
In 2020, the USAID Agriculture Program planned to organize a study tour to Serbia and Croatia for
representatives of the Scientific-Research Center of Agriculture (SRCA) and the NFA, both of which
operate under MEPA. This activity had to be postponed due to the COVID-19 situation and will take
place in June 2021. The tour will be organized in cooperation with the Program’s subcontractor,
SEEDEV. Participants will have an opportunity to visit fields, together with local field inspectors and
virologists, and learn about procedures that are needed for certification, including the administrative
work needed to document the certification process. Serbia, a non-EU country that has instituted systems
allowing it to produce at EU standards and export seedlings to Europe, is a very relevant model for
Georgian nursery development. The USAID Agriculture Program will continue coordination and
collaboration with the SRCA to launch certification schemes with beneficiary nurseries. It is expected
that about 10 nurseries (all grantees and other non-grantees) will be included in the certification scheme.
3.4. Training Nurseries in Certification Requirements
The USAID Agriculture Program plans to support the development of nurseries to help them produce
high-quality, protected planting materials for fruit and berry producers and entrepreneurs. Nurseries
need to function within an appropriate regulatory and business environment, which allows them to
produce and distribute high quality planting materials that are free from systemic diseases and pests.
The certification program sets forth the eligibility requirements for nurseries and growers. The USAID
Agriculture Program will hire a local consultant who will provide trainings and individual consultancies
to grantee and non-grantee nurseries. The Program will organize trainings in different regions of
Georgia for nurseries engaged in the Program’s priority value chains to provide information on how to
participate in the certification scheme and to stimulate commencement of certification procedures for
fruit planting material. Beneficiaries will learn how to fill out Nursery Journals to establish traceability
for certification. It is expected that more than 15 nursery operators will participate in these group and
individual trainings and will improve nursery management practices.
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