Kosovo_NOA_2012_Annual_Work_Plan.pdf

KOSOVO NEW OPPORTUNITIES

FOR AGRICULTURE PROGRAM

FISCAL YEAR 2012 WORK PLAN

September 2011

This publication was produced for review by the United States Agency for International Development.

It was prepared by Tetra Tech ARD.

Prepared for the United States Agency for International Development, USAID Contract Number AID- EDH-I-00-05-00006, Task Order AID-167-TO-11-00001, under Rural and Agricultural Incomes with a Sustainable Environment Plus (RAISE PLUS) Indefinite Quantity contract (IQC).

Implemented by:

Tetra Tech ARD 159 Bank Street, Suite 300 P.O. Box 1397 Burlington, VT 05402

KOSOVO NEW

OPPORTUNITIES FOR

AGRICULTURE PROGRAM

FISCAL YEAR 2012 WORK PLAN

SEPTEMBER 2011

DISCLAIMER

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

TABLE OF CONTENTS

ACRONYMS AND ABBREVIATIONS

1.0 EXECUTIVE SUMMARY

2.0 VALUE CHAINS DEVELOPMENT

2.1 APPLES

2.2 TABLE GRAPES

2.3 BERRIES

2.3.1 STRAWBERRIES

2.3.2 RASPBERRIES

2.3.3 BLUEBERRIES

2.4 LETTUCE

2.5 GHERKINS

2.6 ASPARAGUS

2.7 SAFFRON

2.8 LINKAGES ALONG THE VALUE CHAIN

2.9 MARKETING KOSOVO'S PRODUCTS

3.0 INCREASED AND AFFORDABLE FINANCE

4.0 IMPROVED QUALITY AND SAFETY

5.0 IMPROVED COORDINATION WITHIN AGRICULTURAL SECTOR…33

6.0 ENVIRONMENTAL COMPLIANCE

7.0 INNOVATION AND INCENTIVE FUND

8.0 PERFORMANCE MONITORING

9.0 OUTREACH AND TRAINING

ANNEXES

Annex A: Activities Table

Annex B: Activities Table – Schedule for Completion

Annex C: PERSUAP Action Plan Matrix

ACRONYMS AND ABBREVIATIONS

AgStrat USAID’s Agricultural Strategy dated 2009

AWP Annual Work Plan

BSP Business Service Provider

COP Chief of Party

CTO Chief Technical Officer

DCA Development Credit Authority

DCOP Deputy Chief of Party

EPA Environmental Protection Agency

EMMP Environmental Mitigation and Monitoring Plan

FY Fiscal Year

EU European Union

FtF Farmer to Farmer

GAP Good Agricultural Practices

HACCP Hazard Analysis and Critical Control Points

IIF Innovation and Incentive Fund

IPAK Investment Promotion Agency of Kosovo

IPM Integrated Pest Management

IWM Integrated Weed Management

LoP Life of Program

MAFRD Ministry of Agriculture, Forests and Rural Development

MAP Medicinal and Aromatic Plants

MT Metric Tonnes

PERSUAP Pesticide Evaluation Report and Safe Use Action Plan

PPE Personal Protection Equipment

RDC Rural Development Center

RTK Radio and Television Kosovo

SEED Support for East European Democracy

SOE State Owned Enterprise

STTA Short-Term Technical Assistance

TA Technical Assistance

USAID United States Agency for International Development

VC Value Chain

NOA PROGRAM: FISCAL YEAR 2012 WORK PLAN 1

1.0 EXECUTIVE SUMMARY

The Program was launched in February 2011. During the eight months that constituted Year One of the Program, the team’s focus was on improving production, developing new markets - supported by on-the-ground market studies - and on strengthening the value chain for known crops currently produced in Kosovo:

apples, table grapes, cultivated berries, lettuce and cucumbers/gherkins. The Program established trial plots for new varieties of lettuce and gherkins, with the goal of extending the production season and increasing yields for both crops. The Program introduced two new high-value crops, saffron and asparagus; if production is successful, the Program will seek to build linkages for these crops with established buyers. The Program created a database of large landholders, particularly those who had invested in former SOE lands, and who declared an interest in developing fruit orchards and were seeking technical assistance. These investors will be a focus for the Program in Year Two. In all its activities, the Program gave high priority to improving safe growing and processing of produce so that the final product conformed to market requirements regarding food quality and safety.

In Year Two the Program will build on some of these activities. It will continue its work in introducing new varieties of lettuce in order to give the growers a year-round production cycle, and it will continue to introduce new varieties of cucumbers to increase yields and produce gherkins suitable for pickling. The Program will expand the introduction of the new crops, asparagus and saffron, by doubling up on the seed quantities imported in Year One.

The Program will import certified rootstocks of new varieties of apples and table grapes, primarily from the US, which prolong the growing season and introduce better quality product. The Program will import seedlings of new strawberry varieties, again to extend the growing season. These extended seasons should lead to a reduction in imports for all three crops. The Program will pursue a real opportunity identified by the market research conducted in Year One for exporting strawberries to Albania.

Although raspberries have been grown in Kosovo for a long time, the product is produced for the process market where the profit margin is small. The Program is introducing four new varieties particularly suited for the fresh market in which margins are considerably higher. The Program will also introduce four varieties of cultivated blueberries for both crop development and for planting in nurseries.

The Program will ensure satisfactory planting and maintenance of all these new crops/varieties by awarding grants to local technical service providers to supervise the growers. The supervising grantees will inspect sites for suitability, provide trainings in the field on correct soil preparation, bedding techniques, soil testing, growing practices, crop protection and irrigation, and shall ensure implementation of the same. In particular, the supervising grantee shall give repeated trainings in safe use of pesticides, integrated pest management and environmental protection.

Affordable access to finance remains a problem in Kosovo despite many attempts in the past decade to alleviate it. Should a targeted agricultural loan guarantee program with the commercial banks be established, the Program will assist its customers to avail themselves of the new financing opportunities. In the meantime, the Program will assist its customers in taking advantage of the many donor funding programs available in Kosovo. The Program will develop, through specialized trainings, a cadre of business consultants to provide project evaluation and investment planning for the agricultural sector leading to grant applications supported by sound, credible and well-presented business plans. Since few of its customers know in detail their costs of production, the Program will ensure this deficiency is corrected at all the farms which are recipients of funding through the Program’s IIF.

NOA PROGRAM: FISCAL YEAR 2012 WORK PLAN 2

At the MAFRD, the Senior Advisor to the Ministry will address improved donor coordination; institutional development, particularly the restructuring and strengthening of the Kosovo Plant and Animal Health Agency; and capacity building in policy formulation and implementation.

The Program will initiate trainings in GlobalGAP and HACCP, and will bring in international specialists to advise existing processors on processing equipment, food technology, food safety and security, and value chain linkage development. A study tour to Israel is planned for KVFA representatives to learn about plant protection and phyto-sanitary issues. The Program will extend the scope of the PERSUAP by including stone fruits and pears.

The Program’s outreach activities will include expansion of the website, the introduction of a monthly newsletter, and cooperation with RTK in an extended agricultural program to which the Program will contribute presentations and discussions. The Senior Advisor to the MAFRD will coordinate activities where the Program can assist the Ministry in implementing its strategic plans

NOA PROGRAM: FISCAL YEAR 2012 WORK PLAN 3

2.0 VALUE CHAINS

DEVELOPMENT

2.1 APPLES

2.1.1 Introduction

In September 2011, the Program engaged short term technical assistance to assess and evaluate apple production, nurseries, postharvest handling and storage, processing, and overall competitiveness of the apple sector in Kosovo. The consultant provided recommendations towards increasing import substitution and, eventually, accessing export markets. The Program has used the findings and recommendations from this study to design its strategy for interventions in the apple sector in FY’12.

To improve the quality and quantity of apple production in Kosovo, the Program will intervene in three specific areas: variety diversification, improvement of cultural practices, and improvement of postharvest handling practices and storage facilities.

Although Kosovo has favorable agroclimatic conditions for quality apple production, domestic production is still very low. It is estimated that about 300 hectares of commercial apple orchards are presently cultivated in country. Average yields vary depending on the grower, the variety and the rootstock. On the other hand, the import of fresh apples is approximately 11,000 MT per year. Apple storing capacity is very low: only about 1000MT can be stored at existing refrigeration rooms and Controlled Atmosphere (CA) technology is not yet practiced in Kosovo. The nursery sector also needs to be improved in order to produce saplings that will meet established criteria for certification. Growers that have privatized former SOE lands are interested to cultivate new apple orchards but they lack the technical expertise and proper plant materials.

2.1.2 Inputs

The Program will extend the cultivation of five early, mid and late season apple varieties that are new to, or very uncommon in, Kosovo. The Program will purchase and import 12,000 certified young trees sufficient to establish 5 ha of high density apple orchards grown on a trellising system. New varieties to be introduced are Honeycrisp, Liberty, Ginger Gold, Auval Early Fuji, and Red Cameo. 2400 young trees of each variety will be imported. Saplings will be feathered trained and grafted on M9 dwarf rootstock. [ref. activity Ap-1-2012].

Grant applications will be solicited from farmers who will plant 1.0 ha or 480 saplings of each of the five varieties and have further capacity to expand their apple production in coming years. Grants will be awarded to these “growing” grantees to establish 5ha in total. [ref. activity Ap-2-2012].

2.1.3 Production

In addition to the above, commercial growers will be supported in their efforts to increase their production and improve the quality of their products by improving cultural and post-harvest handling practices. The Program will issue a request for grant applications to identify a “supervising grantee” that will oversee production at the apple orchards, provide technical support, and provide oversight of the Program’s apple production, post-harvest handling and storage activities. [ref. activity Ap-3-2012].

Prior to any grant award of new plants to the qualifying “grower” grant applicants, the “supervising” grantee will inspect the sites for suitability. There must be evidence that orchards are free of weeds, disease, insect and pests are effectively controlled, and that supplemental drip irrigation is installed and operational.

NOA PROGRAM: FISCAL YEAR 2012 WORK PLAN 4

The supervising grantee will provide trainings in the field to the selected growing grantees and existing growers on correct soil testing and preparation, weeding, planting techniques, establishing high density apple orchard trellising systems, winter and summer pruning, fruit thinning, drip irrigation and fertigation, disease and insect/pest identification and management, crop protection, harvest techniques and postharvest handling and storage. The supervising grantee will also be required to produce an apple production guide/manual and other materials to support training instruction.

The supervising grantee will also facilitate communication between growers and input suppliers to make sure that required inputs and equipment to establish the recommended trellising systems are available in local markets. It will be required to produce an Integrated Pest Management Plan (IPM) specifically for apples and monitor chemical input applications to ensure growers are complying with the PERSUAP/IPM recommendations.

The supervising grantee will link grower grantees and other existing growers with BSPs referred to in Section

3.5 of the Work Plan who will be engaged to help producers develop financial management skills. The BSP shall establish basic guides for accounting and budgeting purposes and the supervising grantee will follow up with growers to ensure that they keep financial records so that they know their costs of production at the end of the season.

In October 2011, the Program will send certain selected growers on a Study Tour to visit apple production sites in Italy. This Study Tour may be repeated later in FY’12 for the selected “growing” grantees and would include the “supervising” grantee. [ref. activity Ap-4-2012].

The Program will assist the supervising grantee in organizing open orchard days, workshops and study tours within the country to expand grower’s knowledge base, identify best practices and encourage peer learning.

To supplement technical assistance provided by the supervising grantee, the manual, and knowledge acquired through open days and study tours, the Program will engage an international STTA or a FTF volunteer to provide direction and assist in implementing production and postharvest activities. [ref. activity Ap-5-2012].

2.1.4 Harvest and Post-Harvest

Appropriate harvest and post-harvest handling strategies and techniques are essential to the quality and improved shelf-life of the product.

The supervising grantee shall provide trainings to enhance the apple growers’ knowledge with respect to post-harvest technologies which, for the time being, are inadequate. Trainings will address the following topics:

Maturity Indices (color, firmness, brix - sugar content, and starch content); proper harvesting practices (use cotton gloves, harvest when cool, keep fruit in the shade, cool apples quickly, harvest when fruit surface is completely dry, minimize handling, avoiding bruising, wounding, decay); field packing for fresh market; cold storage (cooling, humidity control, ethylene control, smart fresh application); grading sorting and packing.

In order to extend the apple marketing season, the Program will access IIF funds to purchase a pre-equipped, on-farm containerized cold room with a capacity of approximately 16 MT. This prototype container will have humidity control and ethylene absorption protection to increase the apple marketing season. Individuals having 1.0 ha or more of productive orchards but no access to cold storage will be eligible to apply as a potential grantee. [ref. activity Ap-6-2012].

Once the prototype has arrived in country, the Program will solicit grant applications from individuals or firms that have the capacity to reverse-engineer this technology and determine if local production of the pre-equipped storage container could constitute a profitable spin-off enterprise supporting the apple and other value chains. [ref. activity Ap-7-2012].

NOA PROGRAM: FISCAL YEAR 2012 WORK PLAN 5

Finally, to further extend the shelf-life of apples, the Program will also access IIF funds to introduce an ethylene inhibitor, a new post-harvest technology branded “SmartFresh” used to extend the shelf-life of apples. SmartFresh technology successfully regulates fruit and vegetable ripening by controlling naturally occurring ethylene during storage and transport. Ethylene triggers ripening and spoilage in most fruits and vegetables; in some cases it is responsible for causing spoilage and waste of all product stored. SmartFresh reduces fruit waste and maintains texture, firmness, taste and appearance of apple fruits by warding off negative ethylene effects. [ref. activity Ap-8-2012].

2.1.5 Apple - Specific Marketing

There is great potential for Kosovo to increase apple production in view of supplying a greater portion of the domestic market (import substitution). Once good practices are in place and quality enhancements are achieved (two or more years), domestic production could off-set apple imports entirely. Once this occurs, Kosovo could then consider targeting additional, export markets. In FY’12, The Program will focus on improving standard apple packaging to fulfill local supermarkets demand, off-setting imports and increasing grower incomes.

To facilitate linkages between buyers and sellers within Kosovo, the Program will organize a meeting in early spring – end of March 2012. Market actors – processors, traders and supermarkets - will present their demand for raw material/products and requirements for the quality. Producers will present available varieties of apples and expected yields. The expected outcome of the meeting will be signed contracts or verbal agreements. A second meeting will be organized in late October 2012 to analyze the year and identify shortcomings – these meetings will help the program identify actions that need to be undertaken to improve yields and value development in the coming year. [ref. activity Ap-9-2012].

To expose growers and/or traders to eventual export opportunities, the Program will co-sponsor the participation of several individuals to Fruit Logistica trade show in Berlin – Germany. [ref. activity Ap-10- 2012].

2.1.5 Conclusion

The main focus for the apple value chain will be on import substitution. To optimize quality and quantity of apple production the Program will work with existing growers in three intervention areas: variety diversification, improvement of cultural practices and improvement of postharvest handling and storage facilities. In addition, the Program will introduce new technologies such as advanced plantation management, and new post-harvest and storage technologies.

NOA PROGRAM: FISCAL YEAR 2012 WORK PLAN 6

2.2 TABLE GRAPES

2.2.1 Introduction

In August 2011, the Program through an STTA conducted a detailed assessment to evaluate and assess the production and competitiveness of the table grape sector in Kosovo for import substitution, and export potential. The Program has used the findings and recommendations from this study to design its strategy for interventions in the table grape sector in FY 2012.

To increase quality and quantity of table grape produced in Kosovo, the Program will work with growers to introduce an improved trellising system and two new table grape varieties. In addition, the Program will provide technical assistance on production, pest management and post harvest handling and storage through training, field days, round table discussions and study tours.

In the short term, Kosovo table grape production has great potential for import substitution. Domestic production has the potential to significantly increase within the next few years. Presently, approximately 3064 ha of grape are in production in Kosovo, of which approximately 600 ha are classified as table grapes. The average yield varies from 9 – 12 tons/hectare. Annual table grape imports into Kosovo are recorded at approximately 3000 MT. At present, the country lacks late harvesting varieties, which are crucial in order to substitute imports entering Kosovo from August until December. Currently there is no sapling production certification in place and young plants imported from other countries within the region do not comply with phytosanitary standards.

2.2.2 Inputs

The Program will extend cultivation of table grapes by introducing late varieties which can be kept in cold storage and supplied to the consumer from August up until December. The program will purchase and import 15,000 plants sufficient to establish 3ha of new vineyards. Two varieties will be introduced: Red Globe (50%) and Crimson Seedless (50%). Plants will be delivered to three growers from two regions. [ref. activity

TG-1-2012].

The program will also order new improved trellising – the initial order will be placed with an experienced Californian supplier. The trellising was a strong recommendation from the Table Grapes STTA who visited Kosovo in August; it will increase exposure to photosynthesis and subsequent crop yields. [ref. activity TG-2- 2012].

Grant applications will be solicited from farmers who want to receive sufficient new plants to cover up to 1.0 ha each. Grants will be awarded to establish 3 ha in total. [ref. activity TG-3-2012].

2.2.3 Production

Commercial growers already producing for the market will be supported in their efforts to increase production and improve the quality of their products by introducing improved trellising systems and improving cultural practices. The Program will issue requests for grant applications for the supervision of the implementation of this initiative. Prior to any grant award of new plants to the qualifying “growing” grant applicants, the “supervising” grantee will inspect the sites for suitability. There must be evidence that weeds, disease, and insect pests are effectively controlled and that supplemental irrigation is available. The supervising grantee shall then provide trainings in the field to the selected growing grantees on correct soil testing and preparation, weeding, planting techniques, trellis system establishment, growing practices, crop protection and irrigation; it shall ensure implementation of the same. The supervising grantee shall provide training on adjusting existing trellis systems, designed for wine grapes, so that they are more appropriate for table grape cultivation. The supervising grantee shall be required to produce an Integrated Pest Management Plan (IPM)

NOA PROGRAM: FISCAL YEAR 2012 WORK PLAN 7

specifically for table grapes, and it shall monitor chemical input applications to ensure growers are complying with the PERSUAP/IPM recommendations.

The supervising grantee will oversee production at the vinyards of the various growing grantees. It shall also coordinate the growing grantees with the BSP referred to in Section 3.5 of the Work Plan who will be engaged to help producers develop traditional farm management and modern financial management skills.

The BSP shall establish basic guides for accounting and budgeting purposes. The supervising grantee shall ensure that all grantees involved in production know their costs of production at the end of the season.

With assistance from the Program, the supervising grantee shall organize events to increase the knowledge base pertaining to table grapes, based on the crop calendar. This will be achieved through the implementation of field days, workshops, open days and study tours within the country. The supervising grantee will also be required to produce brochures to support the training instruction. [ref. activity TG-4-2012].

In addition to activities coordinated by the supervising grantee, the Program will consider sending the selected growers and supervising grantee on a Study Tour to visit one or more table grape production sites in Italy.

[ref. activity TG-5-2012].

2.2.4 Harvest and Post-Harvest

Grape is one of the perishable fruits. As fresh fruit, grapes are very delicate and the loss at harvest and during transportation is very high. Appropriate harvest and post-harvest handling strategies and techniques are essential to improving the quality and extending the shelf-life of the product.

In the coming year, the Program will focus on increasing the knowledge of table grape growers on post-harvest technologies, which presently, is inadequate. The following topics will be addressed through targeted trainings, STTA and Farmer to Farmer support: Quality Standards for table grapes - minimum requirements and quality classification; Horticultural Maturity Indices; Grades, Sizes and Packaging; and Pre-cooling conditions.

When justifiable, IIF funds may be used to help growers improve post-harvest handling and packaging of table grapes. This may involve co-financing of harvesting equipment, packaging materials or the establishment of small scale cooling and storage facilities.

To address the harvest and post harvest technical needs, the Program will arrange for additional technical assistance to be provided by an international specialist. The TA will be provided to the table grape “supervising” grantee, “growing” grantees, collection centers and other stakeholders involved in the value chain, depending on the specific subject area to be addressed. [ref. activity TG-6-2012].

The “supervising” grantee will be required to produce brochures (for growers) to support training instruction on table grape harvest and post-harvest handling and storage. It shall also arrange farmer field visits to highlight good harvesting and post-harvest practices carried out by Kosovo growers themselves and to encourage peer education.

The above-mentioned study tour to Italy will also serve as an opportunity for Kosovo table grape growers to observe proper post-harvest handling and storage facilities that could be replicated in Kosovo.

2.2.5 Table grape - Specific Marketing

At present, the domestic table grape production should be increased for the domestic market. Once good practices are in place, the domestic production can increase enough to off-set the table grape imports during the table grape season. Moreover, only once this takes place can Kosovo then entertain the thought of targeting additional markets and move table grapes to export markets. The Program will support improved standard table grape packaging to fulfill supermarket demand and increase grower incomes.

NOA PROGRAM: FISCAL YEAR 2012 WORK PLAN 8

The Program will facilitate the linkage between growers, traders and supermarkets to improve domestic sales and off-set imports. The Program will organize a meeting in May 2012. Market actors – processors, traders and supermarkets - will present their demand for raw material/products and requirements for the quality.

Producers will present available varieties of grapesand expected yields. The expected outcome of the meeting will be signed contracts or verbal agreements. A second meeting will be organized in late October 2012 to analyze the year and identify shortcomings – these meetings will help the program identify actions that need to be undertaken to improve yields and value development in the coming year. [ref. activity TG-7-2012].

In addition to this the Program will promote a fresh market share through facilitation of participation of traders and producers to Fruit Logistics trade show in Berlin – Germany. [ref. activity TG-8-2012].

2.2.6 Conclusion

In December 2011, a Workshop on table grape cultivation will be organized. Growers and other stake holders will be invited to attend the workshop. Technical sessions and information will be provided by a STTA or FtF volunteer focusing on trellising system adjustment, technologies for new vineyard establishment, modification of spraying mechanization to meet criteria for more effective plant protection, and IPM. Through this venue, new technologies and new varieties will be introduced. [ref. activity TG-9-2012].

At the end of the 2012 growing season the “supervising” grantee shall hold a workshop at which all the “growing” grantees will report on their experiences and lessons learned. The supervising grantee shall invite to this workshop additional farmers who have expressed an interest in table grape production, applying new production technologies and growing new varieties, interested collection centers, input dealers, traders and supermarkets.

NOA PROGRAM: FISCAL YEAR 2012 WORK PLAN 9

2.3 BERRIES

In July/August 2011, the Program conducted a detailed assessment to evaluate and assess the production and competitiveness of the berry fruit sector in Kosovo for fresh export, import substitution, and value added frozen and dried food processing. The Program has used the findings and recommendations from these studies to design its strategy for interventions in the berries sector in FY’12.

The Program will work with one existing crop to increase production [strawberries]; will change the focus of another existing crop [raspberries] from low value processing to higher value fresh sales; and will develop commercial production of a new cultivated crop [blueberries].

Regarding other berries mentioned in the AgStrat report, the Program has decided to provide limited Technical Assistance on an as requested basis to the few farmers who currently farm blackberries. There have been no requests to introduce new varieties and blackberries are the easiest berry crop to grow. They are a useful complement to raspberries when marketing fresh berries. The program will not engage in the development and promotion of currants, gooseberries and cranberries. The reasons for these decisions may be found in the STTA Report – Berry Sector Technical Assistance.

Since the activities associated with each of the crops on which we intend to work require different approaches, the crops will be addressed separately.

2.3.1 Strawberries

2.3.1.1 Introduction

Strawberries have the largest market of any berry crop in Kosovo, and it is growing each year. 180 tons are imported each year. Many of the plants are reaching the end of their productive lives, and new varieties need to be introduced to improve productivity. Seedlings are imported because there are no mother plants producing in Kosovo. Strawberry production in Kosovo can be much increased with the introduction of new varieties, improved production techniques, proper pest management, improved post harvest management techniques and improved chilling and cold storage facilities.

2.3.1.2 Inputs

The Program will extend cultivation of the variety, with high market potential, which can be grown in both greenhouse and the open field. The Program will also extend cultivation of, a late-producing variety that is little known in Kosovo but which produces strawberries that will be marketable in both domestic and regional markets. The Program will supply 300,000 new plants sufficient for planting 6 ha of short day, early varieties [50% Honeoye] and day neutral, later varieties [50% Albion]. [ref. activity St-1-2012]

Kosovo also needs to develop nurseries for production of seedlings so as to avoid importation of plants in the future. If we seed 10,000 mother plants in nurseries in the spring of 2012, by 2013 those nurseries will produce 500,000 seedlings. The Program will supply 10,000 new mother plants of Honeoye to two nurseries.

[ref. activity St-1-2012].

Grant applications will be solicited from farmers who want to receive sufficient new plants to cover between

0.3 and 1.0 ha. Grants will be awarded to establish 10 ha in total. The larger growers, already producing for the fresh market, will be supported in their efforts to expand their production and improve the quality of their products. Preference in awarding the grants will be given to growers who are willing to participate in greenhouse planting. [ref. activity St-2-2012].

NOA PROGRAM: FISCAL YEAR 2012 WORK PLAN 10

Grant applications will be solicited from nurseries who want to receive 5,000 mother plants each. Two such nurseries will be selected. [ref. activity St-3-2012]

2.3.1.3 Production

The Program will issue requests for grant applications for the supervision of the implementation of these two initiatives introducing new varieties and supporting nurseries to manage mother plants to produce seed plants.

The first responsibilities of this “supervising” grantee will be to provide trainings in the field on correct soil preparation, bedding techniques, soil testing, growing practices, crop protection and irrigation, and to ensure implementation of the same. The grantee will be required, with assistance from the Program, to produce an Integrated Pest Management Plan (IPM) specifically for strawberries. The supervising grantee shall monitor chemical input applications and ensure they are complying with the PERSUAP/IPM recommendations. In addition, the grantee will be required to produce brochures to support the training instruction. [ref. activity St- 4-2012]

The supervising grantee will oversee production at the farms of the various growing grantees. It shall also coordinate the growing grantees with the BSP referred to in Section 3.5 of the Work Plan who will be engaged to help producers develop traditional farm management and modern financial management skills.

The BSP shall establish basic guides for accounting and budgeting purposes. The supervising grantee shall ensure that all grantees involved in production know their costs of production at the end of the season.

2.3.1.4 Harvest and Post-Harvest

Appropriate harvest and post-harvest handling strategies and techniques are essential to the quality and improved shelf-life of the product. Attitudes and behaviors in the presently available work force need to change. There will be no production of strawberry from short day varieties in these new plantings in 2012, there will be some production in fall 2012 from day neural varieties and activities carried out in fall of FY 2012 aim to help the growers prepare for post-harvest handling and packaging of their production.

Harvest must be timely, dry, and gentle. Berries must be picked and packed in the field. They should be packed in a market appropriate package. Berries should be immediately pre-cooled to check respiration, and kept humidified to avoid moisture loss. Fresh market berries must be stored, shipped, and displayed at optimum temperatures to prolong shelf-life. Once the “cold-chain” has been established, it must not be broken until purchased by the ultimate consumer.

The Program believes that knowledge available in Kosovo regarding harvesting, sorting and packaging of fresh strawberry production for the retail market is inadequate. To address this, the Program will arrange for technical assistance on these aspects. This assistance will be provided by an outside specialist- regional or from the US. [ref. activity St-4-2012].

As follow-up to this outside specialist, the supervising grantee shall provide in-field and on-farm training to ensure the growers are being prepared to handle the strawberry harvested in FY’12 in an appropriate manner.

These essential requirements will be taught, in detail, to everyone in the value chain: growers, harvesters, shippers, distributors, and retailers. The Program will specify that the supervising grantee sets up a regular series of training programs to include presentations, field trips, and farm visits. Old habits will have to be broken, new methods and technologies adopted and careful attention must be given to detail.

2.3.1.5 Strawberry-Specific Marketing

New offseason day neutral and seasonal short day varieties will be promoted to local and regional supermarkets and wholesale marketers specifically in the Kosovo market. Promotion will focus on longer harvest season, larger size berries, better sweetness, firmness and favor compared to varieties that already exist in Kosovo strawberry production. A farmer field day will be organized by the supervising grantee during the harvest season for a special viewing of new varieties in the field promoted by the Program for farmers, NOA PROGRAM: FISCAL YEAR 2012 WORK PLAN 11 supermarkets, wholesalers, exporters, input suppliers. MAFRD and other interested parties will be invited to the field day. [ref. activity St-5-2012]

To further facilitate deals made between strawberry value chain actors, the Program will hold two round table meetings, one in March and another in September 2012. In March, producers will present their production expectations in terms of product grades, packaging and timing. The meeting is expected to result in the signing of contracts and/or the establishment of verbal sales agreements. A second meeting will be organized in September, after completion of the harvest season, to evaluate the progress. [ref. activity St-6-2012]

The Program will identify existing Kosovar traders who already buy or sell in Albania and who possess refrigerated trucks, and brief them about the potential to export strawberries to Albania. We will identify specific packing needs for Albania and organize a meeting with producers for two purposes: a) to introduce them to potential export traders and b) to obtain their commitment regarding production: quantity, type, timing/season, packing, post-harvest storage capacity, etc. The Program will facilitate a meeting between Albanian Importers and potential Kosovar Exporters. All these activities must be conducted in December- February in order to be ready for the export season. [ref. activity St-7-2012]

Strawberry lead farmers will be invited to attend the Fruit Logistica fresh produce trade show in Berlin, Germany to introduce them to new regional and EU produce strawberry buyers, new packaging, input suppliers, competitors and machinery dealers. [ref. activity St-8-2012]

2.3.1.6 Conclusion

At the end of the 2012 growing season the supervising grantee shall hold a workshop at which all the participants will report on their experiences; their lessons learned will be discussed. The grantee shall invite to this workshop as many of the stakeholders in the value chain in Kosovo as is practical, including all the grower grantees, other growers, processors, traders, and supermarkets. The Program believes that sufficient knowledge is available in Kosovo regarding strawberry production that no outside specialist input will be required for this phase; however, as pointed out in 2.3.1.4 above, outside specialist support will be provided for post-harvest and marketing improvements.

2.3.2 Raspberries

2.3.2.1 Introduction

The STTA’s report said a priority for development was to transition Kosovo’s existing berry production away from processing markets and into high-value fresh markets. That shift applied particularly to raspberries. The basic horticultural knowledge for producing raspberries for the process market is present in Kosovo, but fresh market raspberry production requires modern cultivars that offer spectacular size, color, flavor, and firmness for increased shelf-life. The best summer bearing (floracane bearing) raspberry for the fresh market is currently Tulameen], the best fall bearing (primocane bearing) raspberry is Polka. Both are proven in Kosovo, and are rapidly being accepted by Kosovar growers. This trend must be reinforced by the Program.

2.3.2.2 Inputs

In FY’12, the Program will purchase some 40,000 bare root plants for the production of five hectares of these new raspberry cultivars which are more suitable for production for the fresh market. [15,000 canes each of Polka and Tulameen, 9000 of Autumn Bliss, and 1000 canes of Nova]. [ref. activity R-1-2012]. Nursery production of raspberries is not foreseen at this stage.

Grant applications will be solicited from farmers who want to receive sufficient new plants to establish (each) up to 1.0 hectare of new plantations. Farmers already producing appropriate cultivars would be eligible for plants sufficient to plant up to 1.0 hectare of additional production. Farms in the minority region of Strpce

NOA PROGRAM: FISCAL YEAR 2012 WORK PLAN 12

and Leposavic, that are already producing for the process market and that are adjacent to the cold storage facilities will be given preferred consideration for material allotments. So too will other farmers located within 5 kilometers of a participating cold storage processor/distributor, or who are committed to developing on-farm pre-cooling, packing, and refrigerated storage. [ref. activity R-2-2012].

2.3.2.3 Production

The Program will issue requests for grant applications for the supervision of the implementation of this initiative. Prior to any grant award of rootstocks to the qualifying grant applicants, the “supervising” grantee will inspect the sites for suitability. There must be evidence that weeds, disease, and insect pests are effectively controlled; that supplemental irrigation is available; and that the grower is willing to introduce tunnel production to provide added protections or more profitable harvest “windows”. The supervising grantee shall then provide trainings in the field to the selected growing grantees on correct soil preparation, bedding techniques, weeding, soil testing, growing practices, crop protection and irrigation, and to ensure implementation of the same. The supervising grantee shall be required to produce an Integrated Pest Management Plan (IPM) specifically for raspberries. The supervising grantee shall monitor chemical input applications and ensure they are complying with the PERSUAP/IPM recommendations. The supervising grantee will also be required to produce brochures to support the training instruction. [ref. activity R-3-2012].

The supervising grantee will oversee production at the farms of the growing grantees. It shall also coordinate the growing grantees with the BSP referred to in Section 3.5 of the Work Plan who will be engaged to help producers develop traditional farm management and modern financial management skills. The BSP shall establish basic guides for accounting and budgeting purposes. The supervising grantee shall ensure that all grantees involved in production know their costs of production at the end of the season.

However, there will be no commercial production of fresh raspberries in 2012. A second grant will need to be awarded in 2013 for the second year of growth to provide technical assistance with respect to production [grants are limited to one year duration].

2.3.2.4 Harvest and Post-Harvest

Appropriate harvest and post-harvest handling strategies and techniques are essential to the quality and improved shelf-life of the product. Attitudes and behaviors in the presently available work force need to change. Even though there will be no production of raspberries from these new plantings in 2012, there will be some activities carried out in FY 2012 aimed at helping the growers prepare for post-harvest handling and packaging of their eventual production.

Harvest must be timely, dry, and gentle. Berries must be picked and packed in the field. They should be packed in a market appropriate package. Berries should be immediately pre-cooled to check respiration, and kept humidified to avoid moisture loss. Fresh market berries must be stored, shipped, and displayed at optimum temperatures to prolong shelf-life. Once the “cold-chain” has been established, it must not be broken until purchased by the ultimate consumer.

The Program believes that knowledge available in Kosovo regarding harvesting, sorting and packaging of fresh raspberry production for the retail market is inadequate. To address this, the Program will arrange for technical assistance on these aspects. This assistance will be provided by an outside specialist- regional or from the US. [ref. activity R-4-2012].

As follow-up to this outside specialist, the supervising grantee shall provide in-field and on-farm training to ensure the growers are being prepared to handle the raspberries harvested in 2013 in an appropriate manner.

These essential requirements will be taught, in detail, to everyone in the value chain: growers, harvesters, shippers, distributors, and retailers. The Program will specify that the supervising grantee sets up a regular series of training programs to include presentations, field trips, and farm visits. New methods and

NOA PROGRAM: FISCAL YEAR 2012 WORK PLAN 13

technologies must be adopted and careful attention must be given to detail. The Program will continue to proclaim that prices paid to farmers can be expected to be increased in the fresh market compared to the frozen processed market. Fresh raspberries prices are much higher than those of frozen raspberries.

Sometimes they can command five times the price of frozen raspberries.

2.3.2.5 Conclusion

At the end of the growing season the “supervising” grantee shall hold a workshop at which all the participants will report on their experiences; their lessons learned will be discussed. The grantee shall invite to this workshop as many of the stakeholders in the value chain in Kosovo as is practical, including all the grower grantees, new fresh raspberry growers, cold storage facilities, traders, and supermarkets. In particular, the workshop shall address the improvements and introductions to be made in the fall of 2012 and the winter of 2013 in order to ensure the post-harvest requirements are in place prior to harvesting in 2013.

2.3.3 Blueberries

2.3.3.1 Introduction

Cultivated blueberries are a new crop to Kosovo. Collection of wild blueberries has grown increasingly since the practice was resurrected by a previous USAID program from a zero base in 2006. Blueberries are a popular food worldwide because of the anti-oxidants they carry. Though wild blueberries are higher in content, cultivated blueberries are still a significant source, and since the climate and topology in Kosovo is suitable for their cultivation, it is a crop highly recommended in the AgStrat for introduction to Kosovo.

2.3.3.2 Inputs

The Program will purchase and import sufficient plants [11,200 bushes] to plant 4 ha of blueberries. The Program followed the recommendation of the STTA to order a blend of early, middle, and late season highbush cultivars: [20% Duke, 40% Bluecrop, 20% Legacy, and 20% Elliott; but these distributions may change depending on availability]. Delivery of the plants has been scheduled for February, for planting in March. [ref. activity B-1-2012].

Kosovo needs to develop its own nurseries for this new berry production in Kosovo. The program will also order 2,800 plants of the four varieties mentioned above for planting 1 ha. in nurseries. [ref. activity B-1- 2012].

Grant applications will be solicited from farmers who want to receive sufficient new plants to establish from 0.25ha up to 1ha of production (each). In addition, grant applications will be solicited specifically from farms in the minority regions , which are already established as a significant berry producing area, generally no bigger than 0.5 ha - and are adjacent to the cold storage facilities. [ref. activity B-2-2012].

Grant applications will be solicited from nurseries who want to receive 1,400 mother plants each. Two such nurseries will be selected. [ref. activity B-3-2012]

2.3.3.3 Production

The Program will issue requests for grant applications for the supervision of the implementation of this initiative. Prior to any grant award of cultivars to the qualifying grant applicants the “supervising” grantee will inspect the sites for suitability. There must be evidence that weeds, disease, and insect pests are effectively controlled; and that supplemental irrigation is available. The supervising grantee shall then provide trainings in the field to the selected growing grantees on correct site preparation and site selection such as, soil testing especially, important is soil and irrigation water Ph of 5.5 or less, weed control, bedding techniques, growing practices, crop protection and irrigation, and to ensure implementation of the same. The supervising grantee shall be required to produce an Integrated Pest Management Plan (IPM) specifically for blueberries. The

NOA PROGRAM: FISCAL YEAR 2012 WORK PLAN 14

supervising grantee will also be required to produce brochures to support the training instruction. [ref. activity B-4-2012].

The supervising grantee conducting activity B-4-2012 will oversee production at the farms of the growing grantees. It shall also coordinate the growing grantees with the BSP referred to in Section 3.5 of the Work Plan who will be engaged to help producers develop traditional farm management and modern financial management skills. The BSP shall establish basic guides for accounting and budgeting purposes. The supervising grantee shall ensure that all grantees involved in production know their costs of production at the end of the season. The supervising grantee shall monitor chemical input applications and ensure they are complying with the PERSUAP/IPM recommendations.

The Program will consider sending the selected nurseries on a Study Tour to visit a berry production in Poland or in the Netherlands. [ref. activity B-5-2012].

However, as this is a new crop to Kosovo, intensive technical assistance to both growers and the supervising grantee will be required on an on-going basis from experts. This will be provided by a well-trained Program specialist maintaining regular consultations with an international STTA consultant. [ref. activity B-6-2012].

A condition of the grants to growers will be that the farmers allow the Program to access their plots so it can conduct training sessions for other farmers interested in entering blueberry cultivation. These sessions would address:

Cultivar selection, Site selection; Soil preparation; Irrigation; Fertigation; Planting; Harvesting;

Quality standards; Pruning, Weed Control, Pest control; and Pesticides safe use practices.

As this is a new crop to Kosovo, training manuals, rather than simpler brochures, will be prepared so that as each farmer enters blueberry cultivation, a manual library can be presented and explained to him.

Under the best of circumstances there will be no appreciable Kosovo crop entering the markets during FY’12.

However a “show piece” development will result that could become the foundation for an exciting new industry for Kosovo inspiring future investments. Follow on grants, subcontracts or international consulting assignments will need to be awarded in successive years to provide further technical assistance with respect to production [grants/subcontracts are limited to one year duration].

2.3.3.4 Harvest and Post-Harvest

Due to the considerable delay prior to the first harvest, no work is anticipated in FY’12 associated with blueberry harvesting and post-harvest facilities. As the Program supports cold storage, sorting and packaging facilities while working with other berries (strawberries and raspberries), it will be in a good position to identify future opportunities to support…