PROJECT Quarterly Progress Report Year 2. Quarter 1: …pdf.usaid.gov/pdf_docs/PA00N5RW.pdf · · 2017-12-07in Tbilisi, Georgia, as well as ... tomatoes and cucumbers, as well as

Photo: Dr. Robert Richardson providing soil testing training to Pomegranate Value Chain Agronomist Zaur Hajiyev Prepared for review by the United States Agency for International Development under USAID Contract No.

AID-112-C-14-00001, Agricultural Support to Azerbaijan Project (ASAP) implemented by CNFA.

AGRICULTURAL SUPPORT TO AZERBAIJAN

PROJECT

Quarterly Progress Report

Year 2. Quarter 1: October 1 – December 31, 2015

Agricultural Support to Azerbaijan Project

Quarterly Progress Report

October 1 – December 31, 2015

This report is dedicated to the memory of Dr. Robert R. Richardson, who served as ASAP's

Agribusiness Advisor from July 2014 through December 2015. His unparalleled expertise and

commitment to Azerbaijani farmers and processors helped enable numerous beneficiaries to

adopt innovations and improvements in their operations that will pay dividends for many years

to come. Dr. Richardson played an instrumental role in the design of the ASAP program, and

initiated activities that will be carried on over the life of the project to build the capacity of staff

and partners to facilitate improved agricultural production, processing, and advisory services in

Azerbaijan.

Submitted by:

CNFA

USAID Contract

AID-112-C-14-00001

Implemented by CNFA

Submitted to:

USAID/Azerbaijan

Samir Hamidov, COR

Submitted on January 15, 2016

i Agricultural Support to Azerbaijan Project (ASAP) Quarterly Progress Report

Table of Contents

Acronyms ............................................................................................................................................................ ii

Executive Summary ............................................................................................................................................. 1

Summary of Achievements in Quarter 1 ............................................................................................................. 3

Detailed ASAP Progress by Activity and Component ........................................................................................ 3

Operations ........................................................................................................................................................... 3

Human Resources and Other Administration .............................................................................................. 3

Legal Registration ....................................................................................................................................... 4

Document and Deliverables Submission ..................................................................................................... 4

Financial and Expenditure Summary .......................................................................................................... 5

Programs ............................................................................................................................................................. 5

Result 1: Improved Quality and Quantity of Goods Produced .................................................................... 5

Hazelnut Value Chain ................................................................................................................................. 5

Orchard Fruit Value Chain .......................................................................................................................... 9

Pomegranate Value Chain ......................................................................................................................... 13

Vegetable & Berry Value Chain ............................................................................................................... 16

Cross Cutting Activities..................................................................................................................................... 18

Technology Transfer Fund ........................................................................................................................ 18

Business Support Provider (BSP) Technical Assistance Matching Fund ................................................. 19

International Field Trips ............................................................................................................................ 19

Access to Finance ...................................................................................................................................... 20

Quality and Food Safety ............................................................................................................................ 21

Monitoring and Evaluation (M&E) ........................................................................................................... 22

Environmental Management and Monitoring ........................................................................................... 23

Microenterprise Assistance & Reporting .................................................................................................. 23

Gender ....................................................................................................................................................... 23

ICT ............................................................................................................................................................ 24

Collaboration with other Assistance Efforts ............................................................................................. 25

Key Constraints and Lessons Learned ............................................................................................................... 25

Appendices ........................................................................................................................................................ 27

A. Impact Indicator Table ......................................................................................................................... 28

B. Field Visit Overview Table .................................................................................................................. 31

C. Short-Term Technical Assistance/International Assignments .............................................................. 34

D. Summary of Upcoming Y1 Q3 Activities ............................................................................................ 35

E. Technology Transfer Fund (TTF) Status Updates ................................................................................ 38

F. BSP Matching Funding Facility Status Updates ................................................................................... 39

G. Demo Plot Status Updates .................................................................................................................... 40

H. Success Stories ..................................................................................................................................... 43

ii Agricultural Support to Azerbaijan Project (ASAP) Quarterly Progress Report

Acronyms

AHEC Azerbaijan Hazelnut Exporters Consortium

ASAP Agricultural Support to Azerbaijan Project

AZRIP Azerbaijan Rural Investment Project

BDS Business Development Services

BSP Business Service Provider

DO Development Objective

EOI Expression of Interest

ERC Environmental Review Checklist

GAP Good Agricultural Practices

HACCP Hazard Analysis and Critical Control Points

IR Intermediate Result

MAP Modified Atmosphere Packaging

MEP Monitoring & Evaluation Plan

MOU Memorandum of Understanding

PERSUAP Pesticide Evaluation Report and Safer Use Action Plan

PMP Performance Management Plan

REAP Restoring Efficiency to Agriculture Production

REG Regional Economic Growth Project

RFQ Request for Quotations

SME Small and Medium-Sized Enterprise

STTA Short-Term Technical Assistance

TTF Technology Transfer Fund

VC Value Chain

1 Agricultural Support to Azerbaijan Project (ASAP) Quarterly Progress Report

Executive Summary

The first quarter of Project Year 2 (PY2) overlapped with the conclusion of harvest activities for

the first full year of project assistance. Having completed the provision of comprehensive

technical assistance through an entire year's growing cycle, ASAP was able to evaluate progress

by beneficiaries in all four targeted Value Chains. The Project verified that its assistance was

leading to substantial positive impacts for beneficiaries, as was evidenced by selected results

against indicator targets, including the numbers of a) farmers who applied new technologies or

management practices as a result of USG assistance, b) beneficiaries provided training or TA on

food safety and quality standards or practices, c) hectares under improved technologies or

management practices as a result of USG assistance, d) food safety and quality standards or

practices adopted, and e) the increase in value of domestic sales and exports of Value Chain

products by assisted farmers and agribusinesses.

The conclusion of the pomegranate harvest enabled ASAP to verify that both yields and quality

had increased significantly among its Pomegranate Value Chain clients. Not only had multiple

beneficiaries exceeded their revenues for the previous year by several-fold by the end of the

reporting period, but several had also managed to successfully store significant volumes of

produce until the end of the quarter, when domestic market prices were up to five times higher

than they had been at the onset of the harvest. Whereas a number of these clients had either lacked

the confidence to chill last year's harvest or had lost huge volumes of their produce that they

committed to storage, postharvest assistance by ASAP during this harvest enabled several of them

to maintain pomegranate quality and freshness into the lucrative holiday season. Other marketing

support from the Project included assistance in helping Aznar, a local processor, to send a

pomegranate seed sample to an Israeli buyer with which ASAP had facilitated previous meetings.

The Israeli buyer has indicated that if the sample quality is of the same level as the seed that it was

provided during its recent visit to Azerbaijan, it will immediately order a container of pomegranate

seed, a byproduct that Aznar previously threw away for lack of a local market.

The most noteworthy marketing assistance provided during Q1 was support to hazelnut and

pomegranate processors to participate in an international trade fair in Cologne, Germany. Together

with the USAID Regional Economic Growth Project (REG), ASAP enabled the Azerbaijani

processors to exhibit their products in October at a joint stand at Anuga, Europe's largest food fair.

Participation enabled ASAP beneficiaries, including the Azerbaijan Hazelnut Exporters

Consortium (AHEC), to gain over 200 new leads. Following the fair, ASAP helped AHEC to sort

through business cards and contacts in order to organize the information in a newly designed

database with notes about each business. As a result of these efforts, AHEC successfully initiated

shipments to four new buyers in Germany, Tunisia, and Greece. ASAP also organized a trip for

several staff and clients in November to an exhibition of agriculture and food and drink products

in Tbilisi, Georgia, as well as visits to several agribusinesses assisted by the USAID REAP Project

there.


During the quarter, ASAP initiated demonstration plot activities on new farms in the Hazelnut,

Orchard, and Pomegranate Value Chains to expand its geographic reach, while commencing a

second year of demo assistance on its existing demo plots. As in the previous year, this effort

began with pruning training. ASAP also provided its agronomist consultants with mini soil testing

kits and conducted trainings for them in conducting analyses and making fertility

recommendations to beneficiaries based on the test results. The Project will work with these

agronomists over PY2 to help them commercialize soil testing in order to expand their range of

fee-based services. Significant progress was also made in processing facility refurbishment in

preparation for meeting international food safety standards such as ISO 9000, ISO 22000, and

HACCP.

In the Vegetable VC, ASAP implemented experimental production of basil, coriander herbs, red

radish and broccoli at beneficiary Kurdakhani Shitil's nursery in order to demonstrate

opportunities for high-value crop diversification beyond the ubiquitous production of low-priced

tomatoes and cucumbers, as well as to find out how these varieties grow in local greenhouse

conditions and in very dense populations. In addition, ASAP signed an agreement with a vendor

and beneficiary in Samukh for the construction and furnishing of a 300-square-meter greenhouse

that will be used for a demonstration of hydroponic greenhouse production of strawberries,

raspberries, and blackberries.

Deliverables produced during the quarter included five Environmental Review Checklists that

were finalized and approved by USAID for a variety of demonstration and Tech Transfer Fund

activities, as well as a revised Monitoring and Evaluation Plan (MEP). The MEP was updated to

adjust impact indicator targets to better reflect the situation on the ground, including areas in

which the Project was able to exceed previous expectations as well as areas in which unanticipated

obstacles had impeded progress, and add targets for ASAP's fourth year, which was added the

previous quarter through USAID's approval of a no-cost Project extension.


Summary of Achievements in Quarter 1 Year 2

Finance, Administration, &

Deliverables

Result 1: Improved Quality

and Quantity of Goods

Produced

Result 2: Good Agricultural

Practices Implemented

Terms of Reference and a

public announcement was

drafted and published to

identify candidates for

consultancies to serve as a

dedicated Environmental

Specialist;

CNFA headquarters started the

recruitment process for filling

the vacant Agribusiness Advisor position;

ASAP Monitoring and

Evaluation Plan revised and

submitted to USAID for

approval;

5 ERCs for demo plot activity

applications completed and

approved by USAID.

Multi-day, on-farm trainings

and Technical Assistance (TA)

in pruning provided at newly

identified persimmon, hazelnut

and pomegranate orchards;

disease control in tomato

famers; microelement

application and preparation for

planting the new grapevines in

Table Grape Demo Farm; weed

control and sort diversification

TAs at pomegranate growing

beneficiaries resulting in

improved management of 175

hectares of client land holdings;

New potential clients in orchard

and hazelnut value chains were

identified to expand the

project’s geographic reach and

product focus;

30,426 AZN in client

investment in improved

technologies introduced by

ASAP

Result 2 farmer group training

activities pending completion of

project legal registration.

However, one group training was

held in Goychay region with

greenhouse tomato growers who

suffered from the same disease

which spoiled the entire harvest.

Detailed ASAP Progress by Activity and Component

Operations

Human Resources and Other Administration

In November, ASAP also placed an announcement in www.jobsearch.az for an Environmental

Consultant. More than 100 applications were submitted for the announced position. The ASAP

team started to put together an expert selection table by identifying relevant and irrelevant

applicants first. The process is in progress and the interview of the qualified applicants is planned

to be held in January 2016.

In December, ASAP Agribusiness Advisor Dr. Robert Richardson passed away unexpectedly of

natural causes. After working closely with the U.S. Embassy's Consular Section to facilitate his

repatriation, CNFA began recruiting for the vacant Agribusiness Advisor position. As of this

writing, a shortlist of four top candidates had been selected and interviewed by CNFA staff.

http://www.jobsearch.az/


Legal Registration

Although all required Project registration documents were submitted to the proper authorities in

October 2014, and were resubmitted through somewhat different channels as per USAID's request

in August 2015, formal legal registration of ASAP in Azerbaijan was still not granted by the end

of December 2015. In November, the U.S. Ambassador had a formal meeting with the Minister of

Agriculture that addressed, among other topics, the pending registration of ASAP and another

USAID-funded agricultural project. The Ambassador and Minister agreed that the Ministry would

draft and send to USAID a letter requesting assistance from ASAP and draft an MOU for USAID's

response. These documents would then help serve as a basis for requesting approval by the

Ministry of Justice of the proposed activities. Although it was previously reported that the

Ministry was already drafting this document, USAID had not yet received it at the time of this

writing.

Document and Deliverables Submission

This quarter, ASAP submitted monthly reports for October and November. In addition to these

reports, the following deliverables were submitted:

ASAP Annual Progress Report. The report for Project Year 1 was submitted to USAID on

October 20, 2015. The report was revised and resubmitted on November 2nd. USAID

acknowledged formal acceptance of the report on November 5th.

Monitoring and Evaluation Plan. A revised version of the Monitoring and Evaluation Plan

(MEP) was submitted to USAID on December 18th. It included the addition of Indicator

targets for PY4, as well as some modifications to the targets for PY2 and PY3, based on

project implementation to date.

Document

USAID

Submission

Status Submission Date(s) USAID Approval

1. Quarterly Reports

Quarterly Accrual Report Submitted December 17 NA

2. Program Design

NA

3. M&IE Reporting

Annual Report Approved October 20 November 5

Monthly Reports Submitted

November 9,

December 7, 10

(revised version)

NA

4. Other Deliverables

Monitoring & Evaluation Plan Submitted December 18 Pending


AHEC's newly developed website

Financial and Expenditure Summary

USAID Contract No.: AID-112-C-14-00001

Date of Issuance: 06/17/2014

Total Potential Amount: $8,500,000

Amount Obligated to date: $5,707,000

Total Project Funds Expended through 12/31/15: $2,856,937

Projected Funds Expended in Year 2, Quarter 1: $509,489

Projected Funds to be Expended in Year 2, Quarter 2: $515,551

Programs Result 1: Improved Quality and Quantity of Goods Produced

Hazelnut Value Chain

In the first quarter ASAP provided significant assistance to project beneficiaries in marketing,

trade, and exporting. Hazelnut beneficiaries greatly benefited from exhibiting in international trade

fairs by establishing new contacts and making new trade deals. ASAP made strides to improve

collaboration among value chain stakeholders with the ultimate goal of improving their standing in

the international marketplace. In Q1, ASAP initiated a second round of demonstration plot

activities and the project now covers a much broader geographic area, assisting clients across the

country's entire northwest region. There has also been significant progress in processing facilities

refurbishing their operations in preparation for meeting international food safety standards such as

ISO and HACCP.

Marketing Assistance:

Follow up on trade leads and new sales resulting from ASAP marketing assistance. ASAP

staff worked with the members of the Azerbaijan Hazelnut Exporters Consortium (AHEC)

to sort through business cards

and contacts in order to

arrange and organize the

trade leads made at the

Anuga Trade Fair from

October 10th-14th. All the

contacts were entered into a

newly designed database

with notes about each

business. Several mailing

lists were created and every

lead was contacted. This

allowed AHEC to elevate its

profile among potential

buyers. In addition, AHEC consortium members sent hazelnut samples to interested


potential buyers in Greece, France, Cyprus, Moldova, Serbia, Lebanon, and Tunisia. These

activities resulted in the following trade deals being realized during Q1:

o One week after the exhibition, AHEC received an order for a 20-foot container of

hazelnut kernels from Turkish trading company Poyraz, one of the new contacts it

made in Germany. The destination for the shipment was Ulm, Germany. For its

members, this served as the very first contract under AHEC’s name and legal

structure.

o On November 11th, AHEC made another sale to

a Tunisian company it met at Anuga that

packages and sells dried fruit and nuts. Twenty-

two tons of 11-13 mm hazelnut kernels (primarily

from Khachmaz, due to the buyer's kernel size

requirements) were packed in 10 kg boxes and

loaded into a 20-foot container.

o On November 25th

, AHEC signed a contract with

Menexopoulos Bros O.E. from Thessaloniki,

Greece for one container of 13-15 mm hazelnut

kernels. As of the end of the reporting period, the

shipment was ready to be shipped upon receiving

favorable results from SGS Laboratory in Turkey

that the shipment was free from aflatoxins.

New B2B meetings and marketing negotiations held with

ASAP’s assistance. ASAP facilitated a meeting between

a Greek trading company Action Plus Ltd., and Ismail

Orujov, a representative of AHEC. Mr. Charalampos

Tsarouchas represents a union of hazelnut buyers in

Athens, Greece and is looking to source hazelnuts from Azerbaijan. Mr. Orujov provided

samples to this new Greek partner, which later placed an order for 22 tons of various

caliber hazelnut kernels. On December 17, upon the invitation of the union, Orujov

traveled to Athens, Greece for final negotiations and contract signing. Based on the newly

concluded agreement, hazelnuts will be supplied to this group of buyers in Greece through

Action Plus.

Demonstration Plot Activities:

During the quarter, ASAP made significant progress in implementing its action plan for

demonstration plot improvement. Critical constraints in development and productivity of hazelnut

trees were identified and addressed through proper fertilization and spraying of over 30 hectares of

orchards. Based on analysis of soil test results, ASAP provided recommendations for preparing

optimum mixtures of fertilizers and micro-elements, and trained farmer clients in best practices,

including safe use of equipment and supplies.

A hazelnut shipment sold by AHEC

boxed and labeled for delivery to a

buyer in Tunisia


Soil and aflatoxin testing training provided to ASAP Hazelnut VC Agronomist. ASAP

provided its Hazelnut VC Agronomist Consultant, Ziyaveddin Aliyev, a mini soil testing

laboratory and the Project's Agribusiness Advisor conducted a training in conducting soil

tests and analysis. The training took several days and at the end of the training Mr. Aliyev

was able to perform the testing and analysis independently. Among other elements, local

agronomists learned how to test the soil for pH, potassium, phosphorus, magnesium,

calcium, sulfate, iron, and manganese. Information on how to prepare soil sampling and

preparation and interpret the values and

read results of the available nutrients in

the soil were also transferred during the

training. Along with other necessary

equipment for the hazelnut value chain,

such as a kernel humidity meter, soil

analysis lab, and pH meter, ASAP

handed over a small aflatoxin test kit to

local Hazelnut Agronomist Ziyaveddin

Aliyev. In addition ASAP provided

hands-on training on the operation and

interpretation of test results. Although

it is a small test kit and cannot provide exact data, it provides useful information in order to

help small and medium-sized processors to better address food safety issues. As previously

reported, aflatoxin remains a major constraint for processors and exporters.

Farmer training activity initialized. In Q1, ASAP initialized its farmer training activity and

now targets specific farmer groups located near the Project’s demo sites. Field trainings

showcase good agricultural practices to

as many beneficiaries as possible.

ASAP's hazelnut agronomist began a

series of training sessions consisting of

four modules related to GAP at the

hazelnut orchards. Having participated

in all ASAP hazelnut demo activities

during PY1, Ziyaveddin Aliyev

launched the training program for

hazelnut farmers in Q1. Thus, ASAP

conducted on-farm pruning training to

28 new farmers in villages in Zagatala,

Gakh, and Oghuz regions in November

and December. ASAP is currently putting together a year-round calendar of activities at the

hazelnut orchards. This will be a simple month-by-month guide with pictures and graphs

for hazelnut farmers on the activities necessary to be undertaken at the orchards during the

growing season.

Pruning training near Findiqli village

ASAP's Agribusiness Advisor provides training in soil

testing and analysis to the Project's Hazelnut Agronomist

Consultant


Drip irrigation project launched. Near the end of Q1, the approval process for the drip

irrigation project at Ismail Orujov’s 10.5 ha hazelnut orchard was finalized. ASAP signed a

contract with CAQA LLC, an engineering company in Zagatala, to implement the

irrigation project. CAQA, in its turn placed a purchase order for the necessary irrigation

materials and equipment. It is expected that installation will be completed by February

2016.

Improving Quality and Productivity of Processors:

Processing plant renovated in accordance with ASAP recommendations. Vugar

Hagverdiyev’s hazelnut processing plant was one of the first processing facilities that

ASAP chose to support. Because Mr. Hagverdiyev was one of the potential recipients of

processing equipment through ASAP's Tech Transfer Fund (TTF) program, ASAP

technical staff considered various ways of improving efficiency at the plant, including

recommending that the beneficiary expand its sorting area and add another conveyor belt

to ensure better sorting and

calibration of kernels. Based on

these recommendations, Vugar

Hagverdiyev made significant

renovations to his facility in

recent months. He expanded the

sorting area and built a new level

on top of the existing building

where he plans to introduce new

automated sorting belts, which

will help improve product safety

and quality. Construction is

planned to be completed in

January 2016, when ASAP will obtain information on the exact amount of investment that

the client made in this effort.

HACCP certification process launched. Ismail Orujov, who is receiving matching funding

from ASAP's Technology Transfer Fund (TTF) to procure an optical sorting machine for

his hazelnut processing facility, has decided to pursue HAACP certification. Although

Ismail’s processing plant, like most similar operations in Azerbaijan, requires extensive

upgrades in facilities and operations to achieve certification, he is committed to

transforming his operation into a modern facility in compliance with all relevant food

safety standards. Participation in Anuga played a large role in the evolution of his thinking.

“Almost every potential buyer (that he met at Anuga in Germany) was first asking if we

have management/food industry certification,” says Mr. Orujov. In late November, ASAP's

Quality Standards and Certification Specialist visited OON LLC (Ismail Orujov’s hazelnut

processing plant), where he conducted an initial assessment of the processing factory

Vugar Hagverdiyev’s renovated facility; the second floor (painted in

green) is a newly constructed addition to the operation


according to ISO 22000 Food Safety Standards. A work plan for implementation of the

necessary requirements is now under development.

Orchard Fruit Value Chain

Field Visits:

Ayaz Alakbarov Farm (ASAP Table Grape Demo Plot): In October and November, ASAP

provided client Ayaz Alakbarov with technical assistance in sourcing modified atmosphere

packaging (MAP) materials. Research identified two companies from Chile that provide

suitable sulfur paper and bags for storing grapes. During the discussions, both of these

companies indicated an interest in supplying to Alakbarov’s grape farm either directly

from Chile or via sales agents located in Turkey, Greece and Italy. The companies would

like to meet in person at the Fruit Logistica

Fair in Berlin in February 2016 to discuss

the business and some technical details.

ASAP will continue to assist grape growers

to source appropriate storage and packing

materials. The farmer also applied boron

and zinc to his grapes in compliance with

ASAP recommendations in order to lay a

foundation for increased productivity next

season. The farmer spent about 500 AZN to

procure and apply the elements. The client

also made some improvements to his grape orchard, including replacing some grapevines

with new ones. Alakbarov spent about 1,200 AZN on these improvements. In December,

ASAP also helped select new vines for cutting and replanting in new areas. About 15,000

vines, enough to plant three hectares, were cut and will be replanted early next quarter,

primarily to expand the vineyard's area, but also to replace some selected existing vines

that have either died or are of inferior quality.

Azer Haktari’s cold storage: In December, Mr. Haktari made improvements to remove

ethylene gas from his cold storage units, as advised by ASAP STTA Patrick Hughes in

PY1. This system, which required the installation of plastic tubes on the ceiling of the

rooms and their connection to gas transport equipment, represented 2700 AZN in client

investment. This process will improve storage and keep fruit fresh for a longer time. In

addition, one of the compressor valves in the facility was damaged in December, so ASAP

linked the owner with Turkish specialists who are helping him address the problem.

Vugar Babayev’s orchard: In November, with the support of ASAP TA, preventive

measures were implemented against tumor and manila diseases in apple and cherry

orchards. Boron and Lime solution was prepared and applied to 1050 trees. The

Khachmaz-based farmer invested 250 AZN in this effort. ASAP also continued its late-

season weed control work.

Grapevines for planting new orchard


Khirman LLC Grape farm: In December, a meeting was held with the head of the company

Ilham Qasimov to discuss the next steps for his grape orchard in Shamakhi. The owner of

the farm has requested TA on soil analysis, pruning, fertilizing, and other agronomic

practices, which ASAP will provide starting in early 2016. One of the farm's main

problems is its poor irrigation system. ASAP is considering providing assistance in

installation of the proper irrigation system on 40 ha of the farm through the Project's

Technology Transfer Fund.

Field visits to REAP clients:

Two ASAP Orchard Value Chain clients, including Azer Haktari, Perviz Haktari, as well as three

hazelnut VC clients, as well as ASAP Agronomist Consultants Vahid Safarov and Zaur Hajiyev

traveled to Georgia from November 18-20, 2015 to attend the Agro+Food+Drink+Tech Expo

Georgia agricultural fair, as well as to visit several client businesses of ASAP’s sister activity in

Georgia, the USAID Restoring Efficiency to Agricultural Production (REAP) Project. Client visits

included:

Campa LTD: This producer of apple, orange, cherry, sea-buckthorn and other fruit juices

focuses on the domestic market, but has new

and modern equipment, as well as ISO 9001

and 22000 and HACCP certification. The cold

storage area of the companies was created

with support from the USAID REAP project.

Agrokartli: Various pesticides and fertilizers

are sold here, as well as training being

provided.

Iveria Ltd.: Was founded with support from

REAP. The capacity is 300 MT. Although

only apples are stored here at the present time,

there are plans for Iveria to expand storage into other crops. They are keen to cooperate

with Azerbaijan as there may be opportunities for Azerbaijanis to buy Georgian chestnuts,

for example.

Eleniksta Ltd.: Was founded with support from REAP. Only apples are stored here

currently. Although both cold storages are new, they lacked a device for extracting

ethylene gas. ASAP clients advised them to procure one in the future.

(See the International Study Trips part of the Cross Cutting Activities section of the present report

for more information on the trip.)

Georgian juice processing Company CAMPA

LTD


Technology Transfer Fund (TTF) Activities:

In November at fruit processing company Orelay's facility in Aghdas, ASAP specialists

assisted the beneficiary in developing an application for the Technology Transfer Fund in

support of the procurement and installation of a water filtration system. In December, the

TTF application was completed and presented to ASAP. Upon review, ASAP defined

requisite changes to the application and sent these back to Orelay with additional

recommendations for improvement.

Visits to Potential Clients:

In October and December, the project team conducted the following additional site visits:

- Elgun Mammadov and Mubariz Rustamov: In October, ASAP specialists conducted

meetings with persimmon farmers Elgun Mammadov in Kabirli village of Tartar region

and Mubariz Rustamov in Khangarvand village of Goranboy region. The farmers

stressed that they sold some of their products but are now subject to selling prices that

are much lower than in previous years, which is compounded further by a lack of a

dedicated group of buyers. They mentioned that the problems they faced were related

to the lack of agricultural knowledge and fruits falling from the trees before they are

ready to harvest. In PY2, ASAP will develop interventions to address these issues.

- Yunis Alakbarov: ASAP held a meeting

with Yunis Alakbarov, the owner of a

grape farm in Garayeri village in Samukh

region. The farmer has harvested about

130 MT of grapes from his 9ha farm. The

expected average result is about 150 MT.

The product is mainly sold to wholesalers

from various regions. Compared to their

level in previous years, the prices were

low this year. The clients plan to increase

the quality of their produce and hope for

an increase in price and have requested

ASAP technical assistance in order to achieve this goal.

- Rza Mammadov of Uchtapa village, Goygol region, who took part in ASAP's

pomegranate study trip to Israel, has expressed interest in collaborating with the

Project. He has a three-hectare grape farm in poor condition, but would like to improve

the orchard with assistance from ASAP. The Project has stressed to him that TA alone

is unlikely to help him without him making some investments in improved technology.

In December, ASAP specialists supported four new farms that grow persimmons and

cherries. Brief descriptions of the operations and their current challenges are provided

below:

Yunis Alakberov’s Table Grape Vineyard


- Vidadi Mahmudov has a persimmon orchard in Dahna village, Aghdash region. The

total area of this orchard is 4ha and it is 14 years old. Planting tracts average 6 meters

by 5 meters. The key problem is a lack of information on cultivation, fertilizing, and

disease control. ASAP provided TA on how to use manure, phosphorus, and organic

fertilizer on the farm to improve soil quality.

- Rahib Mammadov has an orchard in Dahna village, Aghdash region that consists of

five hectares of cherries and 3 ha of persimmons, each planted at 6 x 4 meters. The

cherry trees are 12 years old, while the persimmons are 8 years old. There are

knowledge gaps in cultivation, including pruning. ASAP specialists showed how to

plant new young trees, adding manure and fertilizers. ASAP also demonstrated proper

planting procedures, including depth, spacing, and fertilization.

- Nemat Hacijev has an orchard of about 10 ha of five-year-old persimmon trees planted

in a 6 x 4 meter scheme. Major TA needs include pruning and disease control.

- Nusrat Hasratli has a 10ha orchard in Ashagi Gasir village, Aghdash region. Three

hecatres are planted with five-year-old persimmons in a 6 x 4 scheme. Due to improper

cultivation, tree growth is poor and productivity is low.

All these farmers are interested in receiving TA from the Project. It is agreed that first

ASAP specialist will collect soil samples for testing. According to the test results, a

fertilization program will be developed alongside other required assistance.

Other activities

Training and TA: Over the quarter, ASAP

specialists conducted seven trainings, and

five TA assignments in the Orchard Crops

VC, assisting 45 direct beneficiaries in all,

including 12 women. The assistance

covered grape, apple, cherry and persimmon

orchards in Quba Khachmaz, in the central

regions. These trainings and TA covered

topics on fruit harvesting, packaging, weed

control, disease preventing, preparation of

vegetative seedling materials for setting new

grape orchards, preparation for winter in persimmon and cherry orchards, fertilizing,

irrigation, and planting guidelines.

Mini Soil Testing Kits and soil analyses for demo plots: In October, ASAP provided a mini

lab for soil analysis to ASAP Orchard VC Agronomist Vahid Safarov. In November,

ASAP provided TA on collecting soil samples for testing from Agrovest LLC apple

orchards, and Gulbaniz Zakariyeva’s grape orchards. Based on this TA, Safarov collected

soil samples from both farmers, and they were used for the training, which was held in

December in Gusar region. Besides the Orchard VC agronomist, four client farmers

participated in the training. Tests for pH, phosphorus, potassium, iron, magnesium,

Soil analysis training in Gusar


manganese and other elements were conducted and results used to develop

recommendations for the farmers through soil fertility plans.

Pomegranate Value Chain

During the quarter, which included the main harvest period for pomegramates, the results of

ASAP and its clients' efforts over the course of the past year came to fruition. Increases in

production volumes and quality served to validate the benefits of adopting recommendations

provided by the Project.

Field Visits:

Mars FK LLC (Cold Storage & Demo

Plot): This operation could be considered a

model of pomegranate production at a

national level. A video that it developed

this quarter for showing at trade fairs could

serve as a demonstration of good

agronomic practices for pomegranate

production. The executive manager of the

company Mr. Vagif Taghiyev expressed his

gratitude to ASAP, whose assistance

facilitated the introduction to and adoption of over 50% of the practices shown in the film.

During 2015, Mars increased its sales by

120%, while also improving the quality of

its production. Last year the company

produced 40 MT of high quality

pomegranates that were damaged in its

poorly designed and equipped cold storage.

This year, Mars has over 100 MT of

exportable pomegranates that as of mid-

January can be sold for no less than 3

AZN/kg (roughly $1.91/kg), compared to

about 0.60 AZN at the start of this year's

harvest. After participating in ASAP's study

tour this past summer, Mars added several

new activities to its strategic plan:

application of plastic mulch in its orchard,

MAP bag usage for pomegranate storage,

and serving as an Azerbaijani

dealer/representative for the Israel-based Gat

Fertilizer Company.

Samedov Farm: Samedov is also one of the

Mars FK LLC cold storage

High quality pomegranates

Pruning session at Mars


most successful beneficiaries of ASAP. Thanks to his high quality produce, Mr. Samedov

has obtained new buyers who are interested in purchasing his pomegranates next year as

well. Some of the buyers have requested him to share his practices with other farmers so

they can meet the domestic and export demand for pomegranates. After obtaining over

40,000 AZN of sales at the farm gate from his exportable pomegranates (the highest

amount recorded for Mr. Samedov in his seven years of operation), Mr. Samedov initiated

pruning throughout his entire orchard with demo plot coordinator supervision.

Gasimov Farm: During the harvest, Alamdar was able to invite potential buyers/traders

who buy pomegranates from farmers and export to Russia and Ukraine. As a result of

quality improvements achieved through the adoption of ASAP production

recommendations and assistance, 30% of the farm's 2015 harvest consisted of

pomegranates that were of export quality for the Russian market. Even the pomegranates

produced for processing were considered better than those of other producers and were

purchased at the farm gate. Last year farmer sold its low quality pomegranates to

processing company in Goychay and made only 5,800 AZN. As a result, the farm made

over 40,000 AZN in sales and gained new buyers for next year. (See the Success Story in

Appendix H for more information on the beneficiary's activities and results.)

Galasi Mammadov Farm: In Q1, the farmer was approved as a demonstration plot

beneficiary and was provided with

training in pruning. The ASAP

agribusiness adviser and demo plot

coordinator provided the necessary

tools for pruning and explained in

detail how to make this work. The

project selected a three-hectare area

for this trial. Once he was convinced

of the efficacy of this approach,

however, Mr. Mammadov decided to

mobilize over 20 of his laborers and

they pruned all 160 hectares of the orchard. Overall, Mr. Mammadov spent 140

AZN/hectare for the pruning work, which was

a 22,400 AZN investment as a result of ASAP

technical assistance. ASAP also conducted a

soil test and based on its analysis drafted a

fertility plan for Mammadov’s farm.

Azad Mammadov Farm: This pomegranate

grower from Goranboy region was identified

and proposed to USAID as a beneficiary. Mr.

Mammadov has 216 hectares of pomegranates

out of a total of 500 hectares of land in

Borsunlu village. Almost 80% of the trees are

over five years old and drip irrigation is Current production quality on Azad

Mammadov’s farm

Pruning on Galasi Mammadov’s farm


applied throughout the entire orchard. Unfortunately, as a result of incorrect pest

management, disease and weed control, the company is currently producing poor quality

pomegranates. The operation's 2000 MT capacity cold store is also not used for

pomegranate storage due to a lack of technical expertise and poor quality produce. The

farm requires significant training in all aspects of agronomic practices. In Q1, ASAP began

providing the farm with assistance in soil analysis and pruning training.

Other Activities:

Aznar Processor: With ASAP assistance, a pomegranate seed sample was sent to NS Oils

in Israel for quality analysis. If the quality will be acceptable, NS Oils will immediately

order a container of pomegranate seed from Aznar Company.

Azfruit (Interpak) LLC: A BSP Technical Assistance Matching Fund application for

marketing assistance was developed and an RFQ announced by CNFA. Bids from local

BSPs to develop marketing materials for the processors are currently being evaluated by

ASAP.

10th

Annual Pomegranate Festival in Goychay: November is associated with pomegranates

in Azerbaijan because it is when the fruit is harvested and sales ramp up. For ten years,

Goychay, the center of pomegranate

growing and processing in Azerbaijan,

holds an annual pomegranate festival. This

year the festival took place on November

7th. The event featured many pomegranate

growers and processing companies

exhibiting their production alongside the

main street of the town. Live and recorded

musical performances, and other activities

to celebrate the harvest and promote

Azerbaijani pomegranates. At the festival,

ASAP met with client Aznar to follow-up

on its preparation of a pomegranate seed sample for sending to NS Oils, the Israeli buyer

that CNFA has been linking with Azerbaijani processors. ASAP also met with beneficiary

Eyvaz Samedov to follow up on some

marketing assistance questions and share

information on the interest of international

buyers of fresh and processed pomegranates

and its byproducts that ASAP learned about

at the Anuga trade fair in Germany the

previous month. ASAP will continue

seeking and contacting international buyers

of fresh and processed fruits/vegetables in

order to assist local producers to explore

One of 15 municipalities demonstrating their products

at the Pomegranate Festival in Goychay

Soil testing and analysis training for Zaur Hajiyev


Training in Goychay

new export opportunities.

Soil Analysis Training: ASAP trained Zaur Hajiyev, ASAP’s Pomegranate Agronomist

Consultant, and he quickly learned how to conduct analyses independently using the mini

soil testing laboratory kit that the Project provided to him. Results of the initial analysis of

two samples from Samedov's and one other pomegranate orchard indicated that the soil

requires nitrogen, phosphorus, and a complex of microelements. Zaur later continued this

work independently and performed analyses for the demo plots hosted by Galasi

Mammadov, Azad Mammadov, and Alamdar Gasimov.

Vegetable Value Chain

It has been an eventful quarter for agriculture in

Azerbaijan, and especially for the Vegetable

Value Chain. Due to the strained relationship

between Russia and Turkey and Russia's

sanctions against Turkey, there is hope for

increased vegetable exports to Russia. This

development has provided a spark to greenhouse

tomato and cucumber producers in particular,

who had previously been hard hit by falling

prices and demand from Russia. In addition, the

continuing deterioration in the price of oil has led

the Azerbaijani Government to consider the need

to boost agricultural development as even more

urgent than previously, and it is hoped this will

lead to an easing in import and export legislation

as well. ASAP efforts in the Vegetable VC over

Q1 included the following activities described on

the following pages of this report:

Field Visits:

Vatan-AZ LLC: At the beginning of the Project, ASAP proposed enabling local

professionals to assist regional vegetable

growers through the provision of soil and

tissue testing for vegetable crops in fields

and greenhouses. Currently, samples are

sent to Turkey at a high cost, if they are

conducted at all, which results in low

utilization of soil and tissue testing among

growers. To address this obstacle, ASAP

provided a portable soil testing lab to ASAP

beneficiary Vatan-AZ Company, which has Soil testing and analysis training in Vegetable VC

Deformed tomato grown in a Goychay greenhouse


a greenhouse operation and also serves as one of the main regional input suppliers in

Shamkir. In November, ASAP's agricultural advisor Dr. Robert Richardson provided a

training in Shemkir on use of the mini lab at beneficiary Azer Amiraslanov’s greenhouse

facility. Vusal Orujov, ASAP agronomist for the western region, Samir Piriyev and

Seymur Musayev, agronomists for the greenhouse, and Indira Ismayilova participated in

the training. In advance of the trip and training, Mr. Amiraslanov was instructed in the

proper collection and drying of soil samples. As a result of the training and soil test

analysis, ASAP prescribed recommendations for enriching Azer Amiraslanov’s soil. The

Vegetable VC agronomist, Vusal Orujov was also provided a pH meter that he will be

using for testing activities at the beneficiaries’ water sources.

Garakhidir Nursery LLC: On the 5th of

October, ASAP Vegetable VC

agronomist Vusal Orujov conducted a

training in Goychay on tomato diseases

and prevention measures. Twelve

greenhouse tomato growers participated

in the training and were provided with

recommendations on disease prevention.

The training organizer, ASAP

beneficiary Mr. Shahin Yagubov of

Garakhidir Nursery, noted that farmers in

this region need regular trainings on a

variety of plant production topics. During

the next round of training, they would like greenhouse management and irrigation

techniques to be addressed. At the end of the training, the farmers demonstrated poor

tomatoes that they had produced and blamed the seed supplier, but the ASAP agronomist

explained them that this a result of inappropriate application of a growth hormone. It was

agreed that for the next training ASAP will provide recommendations on proper

fertilization and pollination techniques.

Annual Survey on Vegetable VC Clients: In October ASAP conducted an annual survey of

Vegetable VC beneficiaries in the

western region. Indira Ismayilova met

with each of Result 1 beneficiaries:

Surayya Ismayilova, Anar Akhmadov,

Azer Amiraslanov, Mammad Alakbarov,

Kanan Movlayev, and Ilham Guliyev. It

became obvious from the survey that

most of the beneficiaries who were

engaged in export markets, switched their

supply to the domestic market due to

economic instability in the Russian

market. During the interview, Anar

Akhmadov who was selected to host one

Annual surveying of client Azer Amiraslanov

Experimental growing of coriander at Kurdakhani LLC


of the Demo Plots, made it clear that he is determined to sell his two-hectare

tomato/cucumber greenhouse. Later this year ASAP will decide either to work with the

new owner or postpone the Demo Plot on transferring soil growing to a hydroponic

system.

Kurdakhani Shitil LLC: ASAP implemented experimental production of basil, coriander

herbs, red radish and broccoli. ASAP beneficiary Kurdakhani Shitil hosted this idea and

supported ASAP by providing a space, trays and taking care for the herbs. The objective of

this experiment was to find out how these herbs and radishes grew in local greenhouse

conditions and to see how both yield and plant morphology differ in very dense

populations (>500 plants/ m2). Fortunately, ASAP was able to communicate the idea of

crop diversification to its beneficiary Azer Amiraslanov who agreed to host planting of

10,000 broccoli seedlings in his 0.12 ha greenhouse in Shamkir. This experiment will show

further results of switching from usual tomato/cucumber crops to non-standard crops and

challenges with marketing and other aspects of this vegetable supply chain.

ATA LLC: ASAP signed an agreement with the selected vendor AgroDev and the

beneficiary ATA LLC Company in early December. ASAP approved construction and

furnishing of a 300-square-meter greenhouse in Samukh. It is planned that by the end of

January the construction works will be finalized and a vendor for strawberry/blackberry

seedlings will be identified.

Cross Cutting Activities

Technology Transfer Fund

A key element of the ASAP project is its Technology Transfer Fund (TTF) program. While

formally called Grants under Contract in CNFA's contract with USAID, the operational name of

this assistance is "Technology Transfer Fund Matching Investments." Through the activity, ASAP

is providing an average of up to $65,000 in in-kind support to facilitate the procurement,

installation, and use of modern agricultural and agribusiness technologies in order to both help the

recipient agribusiness expand and modernize and to educate participants in the wider value chain

about opportunities to expand production and profitability.

During the quarter, ASAP received USAID approval for Kurdakhani Shitil LLC’s TTF application

for support for a project to streamline its cleaning and disinfecting of trays used to grow seedlings

n its nursery operations. ASAP initiated procurement of a seedling tray washing/disinfecting

machine that will serve as a centerpiece of the project. Delivery of the equipment is anticipated

early next quarter.

A grant agreement was signed with Ismayil Orujov for a project to upgrade hazelnut processing

through the procurement of an optical sorter and ASAP submitted to USAID a waiver for

purchasing the equipment from a Turkish manufacturer. Based on USAID’s initial feedback,


ASAP retendered the procurement in order to maximize the number of bids in hopes of obtaining

a suitable offer from an approved geographic code. By the submission deadline, however, only

one new Chinese, one new British, and one new German company had submitted bids, in addition

to the two firms that had previously submitted bids. ASAP’s Technical Evaluation Committee

(TEC) will evaluate the offers and revise the waiver request accordingly for submission to USAID

in January 2016.

Also during the quarter, a new TTF application was submitted to ASAP by Orelay LLC, Fruit

Drying Plant. This project envisages the procurement and installation of water purification

equipment in order to facilitate food safety compliance in the firm's operations. The TEC reviewed

the project concept favorably, but decided to send the application back to the applicant for selected

clarifications and fine-tuning. It is anticipated that modified application will be re-submitted to

ASAP in January 2016.

Business Support Provider (BSP) Technical Assistance Matching Fund

In October, Max Systems, a local consulting company, completed an assignment under ASAP's

BSP Technical Assistance Matching Fund to design and provide marketing materials to the

Azerbaijan Hazelnut Exporters Consortium (AHEC). This activity entailed the creation of a logo,

tri-lingual, interactive website, and informational brochures and business cards for the group, as

well as posters and signs for AHEC's exhibition stand at the Anuga food fair in Cologne,

Germany. The beneficiary covered 4,928.60 AZN (60% of total cost) of the cost of this

assignment, while ASAP provided 3,285.80 AZN (the remaining 40%) in matching funding.

In addition, ASAP reissued an RFQ for marketing companies interested in developing a similar set

of marketing materials, as well as product labels for canned and jarred products, for AzFruits, a

pomegranate processing beneficiary based in Ganja. It is expected that a vendor will be selected to

implement the activity in January 2016.

International Field Trips

Visit to Georgia (Agriculture Food & Drink Products Exhibition): In November,

ASAP facilitated participation in an

international exhibition on Agriculture

Food & Drink Products in Tbilisi for

several staff members and clients. In

addition, four field visits were arranged in

collaboration with Georgia REAP to four

of its agribusiness clients. Along with

ASAP representatives Yashar Farajov,

Eldaniz Osmanov, and Elvin Aghayev,

ASAP agronomist consultants for the Discussion about universal sprayer at Georgia fair


Orchard Value Chain (Vahid Safarov) and Pomegranate VC (Zaur Hajiyev) participated in

the study trip. The main interest shown during the tour was in agricultural machinery, seed

sowing implements, irrigation systems, and cold storage construction companies. Besides

the identification of more than 10 business leads with which future possible cooperation

has been considered a range of business connections were initiated with BETCO water

supplier, Kalyon Filter, TORO Ag Irrigation, and others. These companies indicated that

they are able to construct full systems and sell spare parts. These new supply sources are

interesting and will allow for ASAP to link farmers to them.

Participation in ICT in Agribusiness Conference: From November 25-26, 2015, ASAP

Business Development Specialist Indira Ismayilova participated in the "ICT in

Agribusiness Conference" in Skopje, Macedonia. The opportunities for and advantages of

linking important agricultural processes like irrigation, soil fertility management, farm

management and others with ICT were reviewed at the conference. There were interesting

presentations of various software applications by ICT companies as well as presentations

by SMEs from Macedonia and Croatia of how they apply ICT in their businesses. The

ASAP specialist had a chance to learn about USAID agricultural projects successfully

implemented in Macedonia, meet with REG program representatives, and discuss with

them one of the most interesting applications demonstrated at the conference – Pantheon

Farming software – a complete farm management information system for a wide variety of

record-keeping needs and with tools for fast and efficient on-farm decision-making. In

collaboration with the USAID REG program, ASAP will explore beneficiaries'

opportunities for and interest in learning more about and potentially adopting one or more

of the ICT technologies learned about through the conference.

Access to Finance

Meetings:

Dubai Chamber of Commerce: In November, the Access to Finance specialist met with the

head of the Dubai Chamber of Commerce Representative Office in Azerbaijan to discuss

export opportunities for agricultural products to the UAE from Azerbaijan. Later, in

December, while in Dubai on personal business, the Access to Finance specialist had a

broader meeting with the Dubai Chamber of Commerce. Quality standards, product

labelling, freight routes and other issues were discussed during the meeting. The Chamber

provided important information about quality requirements, relevant trading linkages and

business establishment rules in Dubai. The head of international offices at Dubai Chamber

of Commerce invited Project beneficiaries to participate at Gulf Food, the major food and

beverage exhibition which will take place in Dubai from February 21-26.

AZAFF: The EBRD, with support from the EU, is implementing the Azerbaijan

Agricultural Finance Facility (AZAFF), a financing mechanism of up to USD 40 million to

encourage local financial institutions to increase lending to farmers and other entities in the

agricultural sector. ASAP's Chief of Party and Access to Finance Specialist met with the


Project Manager and Senior Banking Expert of AZAFF to get more information about the

project’s goals and planned activities. It was agreed that, as soon as the financing facility

will be provided to commercial banks, ASAP will refer appropriate beneficiaries to those

banks.

Financial Statement Assistance: The ASAP Access to Finance specialist worked with other

technical team members to assist Orelay LLC to draft financial statements as a part of their

TTF application.

Financial Model for Pomegranate Orchard: The ASAP Access to Finance Specialist

worked with other technical team members to assist an entrepreneur and potential investor

from Kurdamir to better understand the risks and opportunities associated with establishing

a pomegranate orchard. A basic financial model was developed and delivered to the

investor, Dashgin Mammadov, who eventually decided not to pursue this business due to

the detailed management oversight it would entail and the extended time period required to

make a return on the investment. Instead, in part based on ASAP's financial modeling of

various potential agricultural activities, Mammadov decided to invest in a fodder

production business.

Manat Devaluation: On December 21, 2015, the Central Bank of Azerbaijan introduced a

floating exchange rate, which immediately resulted in a devaluation of the Azerbaijani

manat (AZN) by 32.3% against the US dollar. This exceeded the scale of an earlier

devaluation in February 2015, resulting in a total devaluation of the AZN versus the USD

over the course of 2015 of nearly 50%. Many banks stopped lending in AZN after the

February 2015 devaluation and the number of loans disbursed to the agricultural sector

decreased significantly. It is anticipated that the latest devaluation will have an even more

negative impact on agricultural lending. In December, prior to the latest devaluation,

ASAP drafted a brief overview of the agricultural lending situation in the country. This

report was submitted to USAID in early January 2016.

Quality and Food Safety

ASAP's Quality Standards and Certification Specialist assisted on the following activities during

Q1:

Agrovest GlobalGAP Compliance Efforts: ASAP's Quality Standards and Certification

Specialist provided initial recommendations on compliance with GlobalGAP (Good

Agricultural Practices) to Agrovest's apple growing operation in Qusar. His

recommendations addressed disease mitigation measures, traceability, as well as water

purification systems. ASAP will assist Agrovest in the development of traceability

documentation in order for it to meet modern standards, which it plans to complete over

the next six months.

Orelay HACCP & ISO 2000 Compliance Efforts: ASAP provided assistance to Orelay in

the latter's development of a Technology Transfer Fund investment application. The

project would provide the dried fruit processor with water filtration technology. ASAP's


Quality Standards and Certification Specialist met with Orelay in Q1 to discuss the

installation location of the water filter system, which will be in the back of the factory

building. ASAP technical assistance also provided recommendations on other required

specifications and evaluated project implementation to date, including record keeping and

adherence to prescribed hygiene standards. ASAP's initial conclusions were that hygiene

standards were satisfactory, but that recordkeeping practices were still a work in progress.

In December, ASAP’s Quality and Certification Specialist provided TA on GlobalGAP

standards, including discussion of required uniforms for staff, such as gloves, caps, and

boots for all employees. The Specialist also provided recommendations on proper signage

for the handling and safe use of chemicals, as well as standard operating procedures in the

event of an emergency.

Ismayil Orujov ISO 22000 Compliance Efforts: ASAP conducted an initial assessment of

Ismayil Orujov’s hazelnut processing plant in Zagatala and identified the steps required for

it to comply with the ISO 22000 Food Safety System. Mr. Orujov is prepared to cover all

costs of ISO 22000 implementation in order to better meet international quality and safety

standards. The first step is to use properly building materials for changings in his

processing facility. Complete implementation of these standards is expected to take a

minimum of six months.

Monitoring and Evaluation (M&E)

At the beginning of the quarter, ASAP's Monitoring & Evaluation Specialist drafted a

questionnaire for the implementation of ASAP's annual client monitoring survey. Client surveying

was conducted by the Project's Value Chain Coordinators. The survey was conducted in 16

regions with 34 direct and indirect beneficiaries who had received assistance from the Project. The

questionnaire included questions related to employment, investment, sales, practices adopted, and

loans. Some of the questions were asked in order to obtain indicator results, whereas other

questions were designed to allow for verification and cross-checking of the results reported

previously by the Value Chain specialists during the year.

In general, the survey process went smoothly. As the Value Chain Specialists are well known to

beneficiaries and worked closely with them over the past year, they did not encounter any

resistance from clients in sharing financial information with the Project. In several cases, clients

were not available to be surveyed in time for inclusion in the Annual Report and some new clients

were recruited in October and November. Therefore, additional surveying was conducted and

these results are either included in the current report or will serve as baseline data for future

reporting.

In November, USAID provided ASAP with feedback on the Monitoring and Evaluation Plan. As a

result, some targets were revised taking into consideration the current situation in the sector,

targets were proposed for PY4, which was added under a no-cost extension the previous quarter,

and one more indicator was added. After the revision, the total number of indicators tracking


implementation progress and results is 14, of which 5 are Standard ‘F’ indicators. The updated

Monitoring and Evaluation Plan was submitted to USAID on December 18, 2015.

Environmental Management and Monitoring

In October, environmental consultant Ms. Shargiyya Dadashova worked on revising an

Environmental Review Checklist (ERC) for a project to provide soil amendments to a table-grape

grower in Gusar rayon to lower pH and clean the client's drip irrigation system. The ERC was

approved by USAID on October 24th

, 2015. Ms. Dadashova and ASAP's Agribusiness Advisor

also addressed the comments sent by USAID on a checklist for a Demo Plot activity on

greenhouse berry production in Mammed Alekberov’s farm. The checklist was resubmitted to

USAID on October 23rd

and was approved on November 12th

. A third ERC, on ASAP's Demo Plot

project to provide a drip irrigation system to hazelnut grower Ismail Orujov was updated and and

was approved by USAID on November 10th

, 2015.

By the end Q1, Ms. Dadashova developed ERCs for two additional demo plot activities and one

TTF activity. The demo plot activities entailed purchasing traveling gun sprinkler units for

hazelnut demos and a vegetable demo plot hosted by Mammed Alekberov. The demo plot ERCs

received USAID approval on December 15th and 24th, respectively. Another ERC was developed

for a TTF activity to improve orchard fruit processing at Orelay LLC. The checklist was initially

submitted to USAID on December 8th

, but was returned to ASAP with comments. The

environmental specialist is in the process of working on the addressing the comments. The

document is expected to be resubmitted in January 2016.

Microenterprise Assistance & Reporting

Over the life of the project, ASAP is responsible for providing assistance and reporting for an

annual microenterprise earmark, which is currently $289,331. According to USAID ADS.219, the

definition of a microenterprise is a "very small enterprise owned and operated by poor people,

usually in the informal sector. For USAID program purposes, the term is restricted to enterprises

with 10 or fewer workers, including the microentrepreneur and any unpaid family workers."

ASAP assistance to microenterprises will be focused primarily on its work with farmers under

Result 2. Annually, ASAP must submit a Microenterprise Results Report (MRR) via USAID’s

MRR portal. The next report is due in February 2016.

Gender

In order to stimulate consideration of women for TTF opportunities, all agribusiness applicants are

required to outline how female owners, managers, or employees will benefit from the requested

assistance in their applications and receive additional points in the scoring process for enterprises

owned by, managed by, or benefiting women. Approved TTF agreements also require discussion

of how women will benefit from the requested assistance, and this impact is being tracked and

evaluated over the life of the projects. The evaluation process for applicants to ASAP's BSP

Technical Assistance Matching Fund provides additional points for applications from women-


owned or managed enterprises, or those employing or procuring from a significantly large share of

woman or women-owned businesses. Result 2 extension service providers similarly have

measurable gender-based impacts planned for female participation in their training. CNFA expects

a minimum of 25% of direct Result 2 program beneficiaries (employees and farmers trained) to be

women and will explore specific activities targeted at women or tailored to their needs should this

percentage prove difficult to attain.

ICT

ASAP has procured Plant Growth Stations and was able to clear Azerbaijan Customs and deliver

them to the Baku ASAP office in December in collaboration with the Ganja Agribusiness

Association (GABA). These portable weather monitors at regular intervals automatically measure

and record environmental data relevant to agricultural production, including temperature,

humidity, solar radiation, and other parameters. This data can be uploaded to a computer for

analysis and drafting various charts, tables, and reports. The Project will install these units at

various Demo Plots and other client operations and will utilize them to provide customized

analysis and growing recommendations for the local plot. It will also bring together the data from

the various monitors to draft reports for the benefit of a broader group of local farmers, as

meteorological and environmental data are extremely hard to access in Azerbaijan, which is one of

many factors that makes decision-making particularly challenging for the country's growers.

Depending on results and client response, ASAP may eventually consider facilitating a wider

group of beneficiaries to procure this technology.

In addition, once the Project is registered and able to conduct a public launch, ASAP will explore

the use of ICT innovations and proven approaches, including the use of a program website to

disseminate application forms and calls for EOIs, the use of SMS messaging for delivery of

extension information and market prices, development of smartphone applications for

management of cold storage equipment, and online publication of directories of business and

extensions service providers.

Finally, through its collaboration with the Azerbaijan buy-in to the USAID Regional Economic

Growth (REG) activity, ASAP plans to facilitate the adoption of ICT applications by farmers and

agribusinesses in order to facilitate improved utilization of resources, traceability of inputs, raw

materials and finished products, and improvement of efficiency and capacity to compete on the

regional and international markets. ASAP will identify several leading agricultural companies and

their supply chains to pilot advance IT applications that will enable them to enhance their

operations. AzREG will sponsor the companies in engaging IT business service providers to

introduce specific solutions from local IT companies or other E&E countries. The results from the

pilots will be presented to a number of agribusinesses and farmers.


Collaboration with other Assistance Efforts

In order to avoid overlap and better focus its resources, ASAP coordinates with other relevant

USAID and other donor-funded activities. This quarter, ASAP met with the USAID-funded Socio-

Economic Development Activity (SEDA) multiple times to share information and explore

opportunities for collaboration. ASAP also briefly met with GABA, a local NGO implementing

the USAID-funded Smart Agricultural Farm Project, to coordinate the collaboration noted in the

previous section. ASAP also considers assisting producers and processors who can benefit most to

attend regional workshops and study tours in Georgia in collaboration with the USAID-funded

Restoring Efficiency to Agriculture Production (REAP) project. Finally, the Azerbaijan buy-in

to the USAID Regional Economic Growth Project (REG) is providing customized international

training and technical assistance to ASAP and its beneficiaries. Activities implemented during the

quarter included the aforementioned participation of six beneficiaries and two staff members in the

Anuga food industry trade fair in Cologne, Germany, a study trip for staff and beneficiaries to an

agricultural exhibition and field visits to producers and processors in Georgia, and ASAP's

Vegetable Value Chain Coordinator's trip to a conference on ICT in agribusiness in Macedonia.

Key Constraints and Lessons Learned

As noted in previous reports, ASAP's pending registration and the legal requirement that projects

be legally registered in Azerbaijan prior to initiating assistance activities has necessitated ASAP

maintaining a low profile and avoiding formal group training activities, which are anticipated to

comprise the bulk of Result 2 assistance efforts. Nevertheless, although it has been possible to

assist Result 2 clients only in occasional ad hoc fashion, ASAP has been able to provide extensive

technical advice to Result 1 clients on an individual and firm-level basis.

In addition, the aforementioned December 21 devaluation of the Azerbaijani manat, the second of

the year, combined with the continuing economic crises in Russia and Ukraine, which are by far

the biggest agricultural export markets for Azerbaijan, continued to significantly dampen business

confidence among agricultural entrepreneurs. Many agricultural inputs are imported from

countries with currencies that have strengthened versus the Azeri manat, while the traditional

markets for Azeri produce have currencies that have weakened relative to the currencies of the

sources of the aforementioned inputs. As a result, exports to traditional markets are less profitable

at a time when demand has also slowed. In addition, tightened credit markets have made it harder

to obtain financing, especially in local currency, even for those Azeri entrepreneurs who remain

confident in their business prospects.

Practically speaking, this has resulted in several ASAP clients scaling back or putting on hold their

investment plans, including some of those who had previously agreed to host Demo Plots or apply

for TTF or BSP Matching Fund assistance. ASAP has continued to seek out new clients and

remains optimistic that there will be sufficient opportunities to work with clients through its

various assistance mechanisms. However, implementation of some Demo Plot, TTF, and


Matching Fund investments may be delayed with existing clients or in some cases collaboration

with specific clients will need to be discontinued and new projects identified to take their place.

On the other hand, it has been publicly noted by the Azerbaijani leadership that the recent tensions

between Russia and Turkey due to the latter's downing of a Russian jet in Syria, and the resulting

Russian sanctions against Turkey, may present a new market opportunity for Azerbaijani

producers to displace some of these banned Turkish imports to Russia.


Appendices

A. Impact Indicator Table

B. Field Visit Overview Table

C. Short-Term Technical Assistance/International Assignments

D. Summary of Upcoming Y1 Q3 Activities

E. Technology Transfer Fund (TTF) Status Updates

F. BSP Matching Funding Facility Status Updates

G. Demo Plot Status Updates

H. Success Stories


APPENDIX A: Impact Indicator Table

Indicator Target

FY1

Total for

Project Year 1

Actual for

December

Total for

PY2

Total

Project to

Date

Target

FY2

Comments on December Data

1. Number of individuals who have

received USG-supported short-term

agricultural sector productivity training

M F M F M F M F 2,500 3 – Pruning TA in Mahir

Rahimov’s persimmon orchard;

3 – Pruning TA in Nemet

Hajiyev’s persimmon orchard;

4 – Weed control TA in MARC

LLC;

8 – Pruning TA on Samed

Eyvazov’s farm;

4 – Pruning TA on Galasi

Mammadov’s farm;

5 – Pruning TA on Samed

Eyvazov’s farm;

4 – Soil testing in mini-labs for

agronomists (Vahid Safarov, Radik

Qurbanov, Leysan Qurbanov,

Yarmed Ramazanov);

5 – Preparation for planting new

grapevines.

1,000 281 30 31 5 96 8 377 38

2. Number of improved agricultural

practices adopted by farmers and

agribusinesses

400 35 3 3 38 800 Pruning in Oguz Yusif’s hazelnut

orchard;

Pruning in Zagatala in Cabbar’s

hazelnut orchard;

Pruning in Zagatala in Shamil’s

hazelnut orchard.

3. Number of agribusinesses receiving

customized/direct USG supported

assistance (improving management

practices, investment, technical assistance,

etc.)

30 NA

(this is a new

indicator)

1 2 32 30 Galasi Mammadov received TA on

pruning


1 2 – Beneficiaries received assistance in applying to the GIZ Managers’ Training Program. This information was incorrectly included under indicator #3 in ASAP's November

Monthly Report.

3b. Number of agribusinesses receiving

customized/direct USG supported

assistance in improving management

practices, investment, or finance only

10 6 0 31 9 20

4. Number of farmers and others who have

applied new technologies or management

practices as a result of USG assistance

6 22 1 44 26 32 Galasi Mammadov applied

advanced pruning practices

5. Number of beneficiaries provided

training or TA on food safety and quality

standards or practices

10 16 0 0 16 15

6. Number of food safety and quality

standards or practices adopted 3 6 1 2 8 7 Agrovest adopted an Emergency

Situation procedure in accordance

with GlobalGAP standards,

including sign boards for

emergencies and chemicals.

7. Number of information and support

service providers strengthened 6 5 0 0 5 8

8. Increased value of domestic sales of

Value Chain products by assisted farmers

and agribusinesses

93,519 USD

(Baseline +

5%)

630,502 USD Annual survey Annual

survey Annual

survey

$97,972

9. Increased value of exports of targeted

agricultural commodities as a result of

USG assistance

293,160

USD

(Baseline +

3%)

3,256,

201

USD

Annual survey Annual

survey Annual

survey

$313,084

10. Number of assisted firms that invest in

improved technologies as a result of

project assistance

5 16 5 5 21 15 Vugar Babayev applied on his farm

microelement boron;

Pruning in Oguz Yusif’s hazelnut

orchard;

Pruning in Zagatala in Cabbar’s

hazelnut orchard;

Pruning in Zagatala in Shamil’s

hazelnut orchard;

Galasi Mammadov invested in

pruning.


2 Exchange rate for the reporting date is US$ 1 = 1.56 manats

11. Number of hectares under improved

technologies or management practices as a

result of USG assistance

100 363.6 175ha 176ha 539.6 200 2.5 ha- Vugar Babayev applied on

his farm microelement boron;

3 ha-Pruning in Oguz Yusif’s

hazelnut orchard;

2.5 ha-Pruning in Zagatala in

Cabbar’s hazelnut orchard;

2 ha-Pruning in Zagatala in

Shamil’s hazelnut orchard;

160 ha-applied pruning in G.

Mammadov's pomegranate orchard.

12. Value of investment in improved

technologies by assisted firms 600,000

USD

784,210 USD 19,503 USD2 32,446 USD 816,656

USD

2,500,000 3,376 AZN – five hazelnut farmers

invested in pruning of hazelnut

trees.

1,700 AZN – Ayaz Alakberov spent

on application of fertilizer and

replacement of old bushes.

250 AZN – application of

microelement boron on Vugar

Babayev’s farm;

2,700 AZN – Azer Haktari spent on

installation of gas removing

equipment;

22,400 AZN- Galasi Mammadov

spent on pruning.

13. Value of Agricultural and Rural Loans 400,000

USD

968,696 USD 0 0 968,696

USD

1,600,000

14. Number of agribusinesses receiving

USG assistance to access loans 5 3 0 0 3 15


APPENDIX B: Field Visit Overview Table

VISIT DATES ASAP STAFF PERSON(S) AGRIBUSINESS VISITED VALUE CHAIN AND

TYPE OF ENTERPRISE RAYON

05/10/2015 Indira Ismayilova Garakhidir LLC Vegetable Goychay

06/10/2015 Elvin Aghayev Fuad Aghayev

Ayaz Alakbarov Vegetable (grape orchard)

Gusar

06/10/2015 Indira Ismayilova ATA LLC Vegetable (greenhouse) Samukh

07/10/2015 Indira Ismayilova Ilham Guliyev, Progress LLC Vegetable (greenhouse) Samukh


Agrovest Orchard (apple orchard) Gusar

08/10/2015 Indira Ismayilova Surayya Ismayilova Potato farm Tovuz



Gusar

09/10/2015 Indira Ismayilova Etibar Aliyev Vegetable (greenhouse) Shamkir

14/10/15 Indira Ismayilova Survey of beneficiaries Kanan Movlayev and Azer Amiraslanov

Vegetable Shamkir

15/10/15 Indira Ismayilova Survey of beneficiaries Mammad Alakbarov and Iham Guliyev

Vegetable Samukh

16/10/15 Indira Ismayilova Survey of beneficiaries Anar Akhmadov and Surayya Ismayilova

Vegetable Tovuz

19-21/10/2015 Yashar Farajov AHEC members, Ramazan Karajayev, Khan El, Sabit Hajiyev

Hazelnuts Northwest

19-23/10/2015 Eldaniz Osmanov Survey from pomegranate beneficiaries and new beneficiary Azad Mammadov

Pomegranate Kurdamir, Barda, Goychay, Goranboy, ganja

19/10/2015 Fuad Aghayev Elvin Aghayev

Orelay LLC Dried Fruits Aghdash

20/10/2015 Fuad Aghayev Elvin Aghayev

Orelay LLC Dried Fruits Aghdash

21/10/2015 Elvin Aghayev Elgun Mammadov Persimmon Tartar

22/10/2015 Elvin Aghayev Mubariz Rustamov Persimmon Goranboy




22/10/2015 Elvin Aghayev Rza Mammadov Vegetable (grape orchard)

Goygol

23/10/2015 Elvin Aghayev Yunis Alakbarov Vegetable (grape and persimmon orchard)

Samukh

02/11/2015 Elvin Aghayev Fuad Aghayev Robert R.

Vahid Safarov Orchard (soil analysis training)

Gusar

02-04/11/2015 Eldaniz Osmanov Bakfem, Aznar Hazelnut and Pomegranate processors

Baku, Goychay

03/11/2015 Elvin Aghayev Fuad Aghayev Robert R.

Vahid Safarov Orchard (soil analysis training) Gusar

04/11/2015 Elvin Aghayev Azer Haktari Orchard (cold storage) Guba

08-11/12/2015 Eldaniz Osmanov Robert R.

Galasi Mammadov, Azad Mammadov and Alamdar Gasimov pruning and shaping training

Pomegranate Kurdamir, Goychay, Goranboy

09-13/11/2015 Eldaniz Osmanov/ Robert R.

Eyvaz Samedov, Zaur Hajiyev, Aznar Pomegranate (soil analysis training)

Goychay

09/11/15 Indira Ismayilova

Elvin -2 MMC, Agagul Huseynov Vegetable (strawberry grower)

Jalilabad


Javad Shafiyev Vegetable (strawberry grower)

Jalilabad


Namik Aghayev Vegetable (strawberry grower)

Jalilabad

16/11/15 Indira Ismayilova and Robert R.

Vatan-AZ LLC Vegetable (greenhouse) Shamkir


ATA LLC Vegetable (greenhouse) Samukh


Ramil Gojayev Vegetable (greenhouse) Samukh


ATA LLC Vegetable (greenhouse) Samukh





Kanan Movlayev Vegetable (greenhouse) Shamkir

23-27/11/2015 Yashar Farajov AHEC members, Ramazan Karajayev, Khan El, Sabit Hajiyev

Hazelnuts Northwest

23-27/11/2015 Eldaniz Osmanov Galasi Mammadov, Azad Mammadov and

Alamdar Gasimov soil analyses Pomegranate

Kurdamir, Goychay, Goranboy


Orelay LLC Dried fruits Aghdash


Orkhan Mahmudov Orchard (persimmon) Aghdash

17/12/2015 Elvin Aghayev Subhan Maharramov Orchard (persimmon) Aghdash

17/12/2015 Elvin Aghayev Hasratli Nusrat Orchard (persimmon) Aghdash

17/12/2015 Fuad Aghayev Orelay LLC Orchard (dried fruits) Aghdash


Mahir Rahimov Orchard (cherry, persimmon)

Aghdash

21–25/12/2015 Yashar Farajov AHEC members, Ramazan Karajayev, Khan El, Musayev Yusif

Hazelnuts Northwest



Gusar


Agrovest Vegetable (apple orchard) Gusar


Gulbaniz Zakariyeva Vegetable (grape orchard)

Khachmaz


Vuqar Babayev Vegetable (apple, grape, cherry)

Gusar

21-25/12/2015 Eldaniz Osmanov Mars FK LLC, Galasi Mammadov, Eyvaz Samedov and Alamdar Gasimov pruning training

Pomegranate Kurdamir, Goychay, Barda, Goranboy


APPENDIX C: Short-Term Technical Assistance/International

Assignments

No international STTA or other assignments this quarter

35

APPENDIX D: Summary of Upcoming Activities

Type/Name of Event Location

(city/town) Date(s) Objective/Description of the Event

Audience/

Participants

Desired

US Gov.

Attendees

Press

(yes/no)

Greenhouse TA Shamkir January

2016

Demonstration of bio-bees pollination

techniques

Farmer, farmer’s

workers and ASAP

representatives

NA No

Facilitate a trade deal/signing of

contract with new international

buyers in hazelnut VC

Balakan, Zagatala, Gakh

January

2016

Expansion of hazelnut exports to the EU and

Asian markets

Hazelnut processors

and exporters, ASAP

NA No

TTF project Zagatala January

2016

Purchase optical sorter for Ismail Orujov’s

processing plant

Regional processors,

ASAP

NA No

TA on agronomy Barda, Kurdamir, Goychay, Goranboy

January

2016

Assisting with the efficient pruning and mono

trunk shaping

ASAP, Mars, Alamdar

Gasimov, Azad

Mammadov and Eyvaz

Samedov

NA No

Soil analyses Goychay, Kurdamir, Barda and Goranboy

January

2016

Soil analyses

ASAP agronomist for

farmers

NA No

Follow-up with the NS oils Aznar January

2016

Follow up with the pomegranate seed and

hazelnut export

Aznar NA No

Establish drip irrigation system in

the hazelnut demo orchards

Zagatala February

2016

Together with the selected implementing firm

review design, price proposal and technical

specification of the selected irrigation system.

Oversee the installation of the system in the

orchards

Farmers, workers,

agronomists, private

extension workers,

ASAP

NA No

Look for new opportunities for

TTF and BSP matching fund

Goychay, Salyan, Kurdamir and

February

2016

Find new potential beneficiaries for TTF and

BSP matching funds

ASAP, agronomist NA No

36

Ganja areas

Development of request for

assistance for demo plots input

supplement, better machinery

for agronomic and post-harvest

handling

Goychay,

Kurdamir,

Barda and

Goranboy

February

2016

Proposal development Pomegranate VC

specialist and demo

plot coordinator

NA No

Surayya Ismayilova’s potato farm Tovuz February

2016

Introduction of the travelling gun irrigation

system

Farmer, farmer’s

workers and ASAP

representatives

NA No

TA on agronomic services at

grape and other orchard fruits

Samuxh,

Qarayeri

settlement

February

2016

TA on pruning, fertility and other agro-

technical measures (activities).

Farmer, farmer’s

workers, agronomist,

private extension

worker

NA No

Soil analyses Guba-

Khachmaz

regions

February

2016

Continue Soil analyses Training for

Agronomist and analysis of the soils for

farmers

Agronomist,

And for farmers

NA No

TA for Precooling Guba,

Zeynalabdin

village

February

2016

Continue TA on effectiveness of precooling

applying

Owner, responsible

employers

NA No

Equipment supplement resource

finding and TA on

Quality Management

Aghdash,

Mashad village

February

2016

Assistance for the finding of water filter and

selection of construction area; Continue the

assistance in preparation of documents

(forms) for using the Quality Management

processes at Orelay LLC (fruit drying facility)

Plant Personnel NA No

TA for Precooling Khachmaz February

2016

Determination of equipment and supplies

for pre-cooling

Owner, responsible

employers

NA No


grape and other orchard fruits at

demo plot

Gusar, Anig

Oba.

Shamakhi

February

2016

Continue TA on pruning and fertility. Orchard

renovation/useless trees replacement with

the healthy ones and TA for planting new

Farmer, farmer’s


private extension

NA No

37

grape orchard. worker


grape and other orchard fruits at

demo plot

Khachmaz February

2016

Continue TA on pruning. Orchard

renovation/useless trees replacement with

the healthy ones.

Farmer, farmer’s


private extension

worker

NA No

38

APPENDIX E: Technology Transfer Fund (TTF) Status Updates

# Value Chain Client Name,

Contact Name,

Phone

Rayon Activity

Description

Key Equipment/

Supplies to be

Financed by Project

Anticipated

Client

Contribution

(USD)

Anticipated

ASAP Match

(USD)

Project Status

1. Hazelnut Vugar

Hagverdiyev,

0502206616

Gakh Hazelnut

processor

Hazelnut crusher TBD TBD Will be re-examined after

successful completion of Ismail

Orujov TTF

2. Hazelnut Ismail Orujov

0502201919

Zagatala Hazelnut

processor

Optical Sorter 126,500 65,000 Revised TTF application approved

by TEC, Environmental Review

Checklist in progress; RFQ issued,

bids collected and evaluated.

Expecting contracting.

3. Orchard Orelay Fruit

Processing Plant

Namig Adilov

0502206055

0702206055

Aghdash Dried fruit

processor

Water cleaning

system equipment;

Water tank

TBD TBD TTF application was completed and

presented to ASAP. It was reviewed

by ASAP commission and existing

gaps were defined and in order to

make required changes it was send

back to Orelay LLC for updating.

4. Pomegranate Fruits LLC (ex

Interpak LLC),

Toghrul Valiyev

0556563631

Ganja Fruit

processor

Receiver, processing

and packaging

TBD TBD TTF application pending

5. Vegetable Kurdakhani LLC Baku Nursery Tray

washing/disinfecting

machine

45,980 23,500 Advance payment was done by

CNFA/the delivery of the

equipment will on the 5th of January

2016

39


Contact Name,

Phone

Rayon Activity

Description

Key Equipment/

Supplies to be

Financed by Project

Anticipated

Client

Contribution

(USD)

Anticipated

ASAP Match

(USD)

Project Status

TOTAL TBD TBD

APPENDIX F: BSP Technical Assistance Matching Fund Status Updates


Contact Name,

Phone

Rayon Name of the

BSP/

Consultant

Assignment

Description

Anticipated

Client

Contribution

(USD)

Anticipated

ASAP Match

(USD)

Project Status

1. Pomegranate AZ Fruits LLC (ex

Interpak LLC),

Toghrul Valiyev

0556563631

Ganja TBD Marketing materials

development

TBD TBD RFQs are in evaluation

process

2. Vegetable Mammad

Alekberov, ATA LLC

Samukh TBD Website and marketing

materials

TBD TBD Canceled

3. Hazelnut Consortium of 4-6

processors

Northwest Max

Solutions

Marketing materials

development

4,689 3,134 Completed

40

APPENDIX G: Demonstration Plot/Activity Status Updates

# Value Chain, Demo

Type

Client Name,

Contact Person,

Phone

Rayon Demo Plot

Coordinator

Name, Contacts

Demo Plot Activities,

Assistance Elements

Implementation Status

1. Hazelnut Vugar Hagverdiyev,

050 2206616

Gakh Ziyaveddin Aliyev

050 3422285

Good Agricultural Practices

Demo Plot on older2.7 ha

and 3.2 ha orchard (pruning,

fertilization, integrated pest

management, irrigation,

green pruning, harvest,

postharvest handling)

Second round of implementation started in

December

2. Hazelnut Ismayil Orujov, 050

2201919

Zagatala Ziyaveddin Aliyev

050 3422285

GAP Demo Plot on 10,5 ha

young orchard (pruning,

fertilization, integrated pest

management, irrigation,

green pruning, harvest,

postharvest handling)


December

3. Hazelnut Yusif Musayev, 050

3261939

Oghuz Ziyaveddin Aliyev

050 3422285

Began providing technical

assistance on fertilization,

spraying and irrigation on 3

ha of hazelnut orchard


December

4. Orchard (Table Grape Vineyard)

Ayaz Alakbarov, 050 3430158

Gusar Vahid Safarov

050 5184051

GAP, Drip irrigation project

are changed to pH regulation

of soils by applying of sulfur

and magnesium-sulfide,

pruning, fertility, weed

control and post-harvest

Grape storage recommendation provided,

assisted with the finding of supplier for MAP

bag for grape storage.

Announcement has been placed and bids

received for purchasing required means for

the soil amendment process

41

# Value Chain, Demo

Type

Client Name,

Contact Person,

Phone

Rayon Demo Plot

Coordinator

Name, Contacts


Assistance Elements


5. Orchard (Apple)

Agrovest LLC, Ayaz Alakbarov, 050 3430158

Gusar Vahid Safarov

050 5184051

Weed, disease, and soil

moisture control,

fertilization, post-harvest

Post-harvest handling recommendations

6 Orchard

(Cold storage)

Fresh Fruit LLC

Rovshan Sharifov

Khachmaz Vahid Safarov

050 5184051

Pre-cooling and calibrator Equipment research for precooling fans and

tarpaulin is being carried out

7. Vegetable

(Potato and Onion)

Surayya Ismayilova, 050 3155995

Tovuz Vusal Orujov 050 6321686

Potato: Irrigation, soil

fertilization, post-harvest

handling and storage; Onion:

crop mix, planting

Travelling gun equipment purchased and

delivered to the beneficiary’s field in Tovuz

8. Vegetable

(greenhouse)

Progress LLC Ilham Guliyev 050 3615863

Samukh Vusal Orujov 050 6321686

Bumble bees for pollination Beneficiary is uncertain of application

bumblebees for pollination

9. Vegetable

(greenhouse)

Vatan –AZ LLC Azer Amiraslanov 050 2060966

Shamkir Vusal Orujov Bumble bees for pollination It is planned to purchase and deliver 2 boxes

of bumble bees to the beneficiary’s 0.17 ha

tomato greenhouse for pollination

10. Vegetable

(greenhouse)

ATA LLC Samukh Vusal Orujov 050 6321686

Berry production in

greenhouse facility

Advance payment was paid and vendor has

started assembling the greenhouse

11. Pomegranate Mars FK LLC

Kurdemir Zaur Hajiyev,

050 3369876

TA on production and

marketing

Over 100 tons of pomegranate are stored

quality, no damage and no grey mold, are sold

for $1/kg to retail buyers.

New verbal agreements made with the

several buyers for next year.

Was assisted with the pruning and shaping. Recommended on general aspects of

marketing

42

# Value Chain, Demo

Type

Client Name,

Contact Person,

Phone

Rayon Demo Plot

Coordinator

Name, Contacts


Assistance Elements


13. Pomegranate Zaur Hajiyev, 050

3369876

Goychay Zaur Hajiyev, 050

3369876

Mini soil testing laboratory

and training provision to

pomegranate consultant;

vouchers to growers to

catalyze use of soil testing

services

Is planned to develop voucher for soil

analyses for farmers by VC specialists for HQ

14. Pomegranate Alamdar Gasimov Barda Zaur Hajiyev,

050 3369876

Demo plot on orchard

management

Only preparation done for pruning and

shaping, draft plan on fertility provided

15. Pomegranate Eyvaz Samedov Goychay Zaur Hajiyev,

050 3369876

Demo plot on orchard

management, marketing

assistance

TA on pruning and shaping provided, sprayer

will be requested to be purchased with ASAP

recommendation, sorting line will be

demonstrated, assistance on marketing will be

provided for next year production

16 Pomegranate Agroinvest Galasi Mammadov

051 9545200

Kurdamir Zaur Hajiyev,

050 3369876

Recommendations on

orchard management

TA on pruning and shaping provided,

recommendations on fertility, and spraying

17 Pomegranate Antim LLC Azad Mammadov 050 2200232

Goranboy Zaur Hajiyev, 050

3369876

Recommendations on

orchard management

Training on pruning and tree shaping provided

APPENDIX H: Success Stories

A. Hazelnut processors expand exports thanks to USAID support

B. Improved pomegranate production practices boost quality and sales

Agricultural Support to Azerbaijan Project (ASAP)

ASAP is a four-year, USAID-funded project to increase the incomes of agribusinesses and agricultural producers along the entire hazelnut, orchard, pomegranate, and vegetable value chains. By supporting the growth and expanded exports of agribusiness SMEs through technical assistance by international experts and local Business Service Providers (BSPs), increased access to new technologies, marketing services, and finance, and strengthened international linkages, ASAP will contribute to the accelerated development of Azerbaijan’s rural and non-oil economy.

Hazelnut processors expand exports

thanks to USAID support

After years of failed attempts by Azerbaijan's small and

medium-sized hazelnut processors to form and register a

national association, a group of entrepreneurs recently took a

different approach and is already achieving success. By

working together, these processors have boosted their

capacity, raised their profile, and are making sales to new

buyers in countries in Europe and the Middle East to which

they had never previously exported.

Efforts to work together to market and promote Azerbaijani

hazelnuts began over 15 years ago. Processors recognized

that the relatively small size of the country's exporters made

it difficult to compete internationally, particularly with

Turkish competitors, as that country produces nearly 70% of

the world's hazelnuts. Promotion was too expensive for

domestic companies to pursue on an individual basis and

production volumes were too small to attract major buyers.

As a result, much of Azerbaijan's production made it to

Western markets through intermediaries from Turkey, and

was sold as Turkish hazelnuts. Attempts to formalize an

association were un-successful, hampered by an enabling

environment in which industry trade groups, like other

NGOs, were viewed with suspicion and could not be

registered.

When a group of hazelnut exporters approached the USAID

Agricultural Support to Azerbaijan Project (ASAP) with a

request for assistance, therefore, the Project suggested that

the group register itself as a limited liability company (LLC),

since commercial entities are significantly easier to register.

With support from ASAP, a charter and by-laws for the

Azerbaijan Hazelnut Exporters Consortium (AHEC) were

drafted and the group of four founding members was granted

registration in September 2015.

With assistance from the USAID Regional Economic Growth

Project and ASAP, in October 2015 AHEC exhibited its

products at a stand at Anuga, Europe's largest food fair.

During the five-day event in Cologne, Germany, the

Consortium generated over 200 leads. ASAP provided

matching funding to assist AHEC to develop promotional and

branding materials, including a logo, letterhead, website,

brochures, business cards, as well as signage to allow it to

decorate its stand at Anuga.

AHEC promoting its products at the Anuga Fair in Germany

Just one week later, AHEC made its first sale as a consortium

to a German buyer it had met at the fair. With guidance from

ASAP, the group systematically followed up on its other

newly established contacts, leading to its very first direct

sales to buyers in Tunisia and Greece. ASAP also linked the

Consortium to a Greek brokerage company, Action Plus Ltd.,

and facilitated negotiations on an MOU for the sale of 5,000

tons of hazelnut kernels, which would in turn be supplied to a

range of large Greek buyers. ASAP assisted AHEC members

with follow-up correspondence and closing the deals.

As co-founder of AHEC Ismail Orujov says, "The marketing

support we have received from ASAP has helped us to tap

into business opportunities in new markets that we had not

even envisioned before.” Currently, the Project is assisting

AHEC to correspond with new potential buyers from

Macedonia and Cyprus and a new hazelnut processor, Elchin

Amiraslanov of Zagatala, has joined the Consortium. As

AHEC's client base expands, both its need for new members

to supply the added demand and interest by additional

processors in joining the group will only continue to grow.

"The marketing support we have received has helped us to tap into business opportunities in new markets that we had not even envisioned before.”

Agricultural Support to Azerbaijan Project (ASAP)

ASAP is a four-year, USAID-funded project to increase the incomes of agribusinesses and agricultural producers along the entire hazelnut, orchard, pomegranate, and vegetable value chains. By supporting the growth and expanded exports of agribusiness SMEs through technical assistance by international experts and local Business Service Providers (BSPs), increased access to new technologies, marketing services, and finance, and strengthened international linkages, ASAP will contribute to the accelerated development of Azerbaijan’s rural and non-oil economy.

Improved pomegranate production

practices boost quality and sales

Unlike small-scale farmers, who directly manage their own day-to-day operations, owners of larger pomegranate orchards in Azerbaijan often hire managers from the local area. Because managers' agronomic knowledge is generally low, cultivation is usually conducted by traditional, outdated methods. The result often is low-quality produce that commands low prices. For example, last year Mr. Alamdar Gasimov, the manager of a 50-hectare pomegranate orchard in Barda region, oversaw an operation that generated only 5800 AZN in revenue from the sale of 60 tons of pomegranates. This produce could be sold only to local processing facilities, as poor growing practices produced low-quality pomegranates.

Starting in early 2015, ASAP began providing assistance to Gasimov. The farm immediately applied skills gained from Project training on pruning and mono-trunk shaping of trees, and utilized mineral fertilizers for the first time based on ASAP recommendations. In all, the operation invested about 15,000 AZN to purchase the required fertilizers as well as a mechanical cultivator for weed control. Gasimov also purchased a sprayer and safe pesticides for nearly 8,000 AZN and introduced green pruning for the first time.

The improved quality resulted in a dramatic increase in sales. As a result of ASAP recommendations, over 30% of this year's harvest consisted of pomegranates exportable to the Russian market. As a result, sales revenue this year increased seven-fold to over 40,000 AZN and gained the attention of new buyers that it plans to sell to next year as well. In addition, whereas in previous years Gasimov had to transport the crop to processors on his own, entailing time and expense, this year traders buying pomegranates for export to Russia and Ukraine learned about his high-quality produce and came to Gasimov's farm gate to make purchases on site. Seeing the positive effects on produce quality, the laborers working on the farm began applying these practices on their own farms as well.

The dramatic increase in sales has encouraged Gasimov to strive for additional improvements in cosmetic quality.

In line with his request, ASAP provided a soil test to the enterprise and made recommendations that will more precisely guide the application of fertilizers next year. ASAP will also introduce the farm to improved postharvest handling activities, including sorting, cleaning, waxing, and cold storage of pomegranates to increase shelf life and enable sales well into January and beyond, when prices are several magnitudes higher than during the immediate postharvest period. As a result, it is

reasonable to expect continued increases in yields, quality, and profit next year, as an even larger share of pomegranates will be suitable for export as well as the lucrative, late-season domestic fresh market.

ASAP Field training on pruning and shaping

Packed pomegranates for the Russian fresh market

Documents

PROJECT Quarterly Progress Report Year 2. Quarter 1: …pdf.usaid.gov/pdf_docs/PA00N5RW.pdf · · 2017-12-07in Tbilisi, Georgia, as well as ... tomatoes and cucumbers, as well as