Kosovo_NOA_2013_Annual_Work_Plan.pdf

KOSOVO NEW

OPPORTUNITIES FOR

AGRICULTURE PROGRAM

FISCAL YEAR 2013 WORK PLAN

SEPTEMBER 2012

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 2013 WORK PLAN

SEPTEMBER 2012

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.

NOA PROGRAM: FISCAL YEAR 2013 WORK PLAN i

TABLE OF CONTENTS

ACRONYMS AND ABBREVIATIONS ................................................................ ii

INTRODUCTION

VALUE CHAINS

FRUIT

APPLES

TABLE GRAPES

STRAWBERRIES

RASPBERRIES

BLUEBERRIES

VEGETABLES

LETTUCE

GHERKINS

ASPARAGUS

MEDICINAL AND AROMATIC PLANTS (MAP) INCLUDING SAFFRON

FIELD VEGETABLES

PEPPERS

CABBAGE

LIVESTOCK

DAIRY

CROSSCUTTING

OUTREACH AND COMMUNICATIONS

IMPROVED COORDINATION WITHIN THE AGRICULTURAL SECTOR

IMPROVED ACCESS TO FINANCE

GENDER EQUALITY

MICROENTERPRISE

MINORITIES

ANNEX 1. ANNUAL WORK PLAN MATRIX ............................................... A-1-1

ANNEX 2. ANNUAL ACTIVITY BUDGET SUMMARY ................................ A-2-1

ii NOA PROGRAM: FISCAL YEAR 2013 WORK PLAN

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 Tons

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 (L) Value Chain (Lead)

NOA PROGRAM: FISCAL YEAR 2013 WORK PLAN 1

INTRODUCTION

This document presents the implementation strategy and Fiscal Year 2013 Work Plan for the New Opportunities for Agriculture (NOA) project in Kosovo.

The United States Agency for International Development (USAID) awarded to Tetra Tech ARD the NOA project as a Cost-Plus-Fixed-Fee type task order, under the RAISE PLUS Indefinite Quantity Contract (IQC) Number: EDH-I-00-05-00006-00.

PROGRAM GOALS AND STRUCTURE

The overarching goal of the 49-month NOA project is to increase Kosovo’s agricultural output, exports and rural incomes. This goal supports USAID/Kosovo’s Economic Growth Strategy of promoting growth, creating jobs and generating exports. Specific objectives to be achieved under this task order are:

1) Products and farmers linked to markets; 2) Agricultural products diversified and increased; 3) Food quality and safety improved; 4. Increased affordable and accessible credit; and 5. Improved coordination within the agricultural sector.

YEAR 3 STRATEGY

NOA has successfully introduced new opportunities in agricultural production and processing over the past two growing seasons. These new opportunities include the introduction of totally new crops, such as asparagus. They also include the introduction of new technologies with a capacity to improve productivity, such as canopy management in table grapes and new varieties of salad and raspberry crops.

The crops and technologies thus introduced supply the catalyst for real commercial expansion. Such internally generated expansion is fundamental to achieving the results targeted by the NOA project.

Commercial expansion however remains at present highly dependent on confidence and capacity.

Confidence on the part of the grower that further adoption or adaption of production technologies will result in increased yields and qualities, and that these increases will reach real markets and generate real margins, is critical. Confidence on the part of the aggregation system (processor or packer) that product programmed from farmers will be delivered on time and in the volume and qualities required, is essential. Confidence on the part of the financial system that the financial inputs required to fund commercial expansion will be repaid as a result of expected improved productivity and market realization, is required. And finally, confidence at the level of the market that Kosovo producers will increasingly become reliable suppliers of high quality and competitive products, is fundamental. NOA will support confidence building through the project’s close collaboration with programmed production at all levels, working to ensure as far as possible that expectations are met.

Confidence, if not matched with capacity, will not produce results. Financial capacity will always be a limiting factor and the NOA project will continue to seek intervention opportunities to improve access to finance. Throughout all value chains, NOA will seek ways to minimize risk for borrower and lender alike, encourage adoption of new technologies by facilitating promotional discount structures and ensuring that the project stands as an “honest and independent broker” for all parties in financial transactions—be it trade finance, formal interest-bearing bank finance or some combination thereof.

Additionally, capacity is lacking at the level of personnel at all levels. Firms have limited capacity to hire, train and manage additional staff. They are limited by finances and perhaps more importantly by a lack of awareness of their needs. NOA will work at all levels to support firms in taking on the necessary human capital required to achieve results. This will be particularly relevant at the processor level, where intensified assistance will be directed. NOA will do this using innovative internship structures. This intervention, critical to achieving results, will be used at all levels in the value chain, from the processor, down through aggregation or collection centers, and finally through farmer linkages.

Supporting this interrelated chain of confidence and capacity is the basis of the strategy for the NOA project in Year 3 and is reflected in almost every intervention planned for the coming year.

2 NOA PROGRAM: FISCAL YEAR 2013 WORK PLAN

STRUCTURE OF THE YEAR 3 WORK PLAN

This work plan is structured by value chain (VC). The logic for this is simple. The NOA project has now assigned a technical lead for each value chain. The responsibility of the VC lead (VC (L)) is to coordinate all activities in that value chain, and to be responsible for results, effective budget allocation and utilization. The VC (L) also will remain responsible for the directing of STTAs, both local and international, and for reporting results through the project’s M&E and reporting system. As much as possible, all cross-cutting support (Access to Finance, Food Safety and Improved Coordination) is described and budgeted within VC’s. Where general activities cannot be included in the individual value chains, they are included in dedicated sections.

Each VC (L) has estimated the overall requirement in terms of IIF budget and both international and local STTA. This budget is presented as a simple table under each value chain. The cost element of the budget does not include the costs of the STTA. These projections are budget ceilings and sector leads are charged with the most efficient use of available resources in support of activities. Of particular note is the increased emphasis on the use of local STTA and the judicious use of international support. Given the experience of the local project team, and the intensive support received from international assistance during Years 1 and 2, it is felt that the local team is now in a position to provide a much higher level of technical support to clients than they were at the outset of the project. Technical assistance, especially international technical assistance, will specifically emphasize support to processors.

Additional in this work plan are the following newly introduced VCs:

1. Medicinal and Aromatic Plants (MAP),

2. Livestock – specifically dairy, and

3. Field vegetables – peppers and cabbage.

Included in the MAP program is the food additive VC - Saffron, so this VC now reads: “MAP including saffron.”

For each value chain, the reader will find:

Background information that summarizes the position of that VC at the outset of the work plan year. This context sets the stage for activities to be undertaken in Year 3.

Following the background information, each VC presents its specific strategy.

From that strategy flows a set of objectives. Each objective is considered a distinct component of the VC’s approach for the year, and each objective has its own strategy detailing the justification and approach for each objective.

Within each objective are a clear set of activities that contribute to the fulfillment of the objective.

Each objective is followed by a set of measurable benchmarks, against which the VCL measures performance. These benchmarks are designed to provide clear and precise indications of success through each objective.

It is intended that the incremental quarterly reports will follow this structure in reporting against activities and benchmarks in order to provide a regular update on progress toward achieving the stated benchmarks. In order to fully articulate the activities by project IRs, the work plan presents a summary of activities categorized by IR.

Annex 1 of this work plan presents a summary table showing the project component, value chain, activities and major budget areas where support is planned. Annex 2 presents only major budget areas per value chain and cross cutting areas addressed herein.

NOA PROGRAM: FISCAL YEAR 2013 WORK PLAN 3

VALUE CHAINS

4 NOA PROGRAM: FISCAL YEAR 2013 WORK PLAN

FRUIT

APPLES

DESCRIPTION

Although Kosovo has favorable agro-climatic 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 the country. Average yields vary depending on the grower, the variety and the rootstock. On the other hand, Kosovo imports approximately 11,000 metric tons of fresh apples per year.

Apple storage capacity is very low: only about 1,000 metric tons can be stored in existing refrigeration rooms. Nor is controlled atmosphere (CA) technology practiced in Kosovo.

During 2012, the NOA program extended the cultivation of five early-, mid- and late-season apple varieties that are new to Kosovo. The program purchased and imported 14,400 certified pre-budded feathered trees, a quantity sufficient to establish 6 hectares of high-density apple orchards when grown on a trellising system. Growers who have privatized former SOE lands are interested in cultivating new apple orchards but lack the technical expertise and proper plant materials.

The main obstacles identified in Kosovo’s apple value chain are the quality and quantity of locally produced apples. To improve on this situation, the program will intervene in three specific areas:

increased production area of new high-density apple orchards; nursery/orchard management; and improvement of postharvest handling practices and storage facilities.

To overcome the above-mentioned obstacles, NOA will support nurseries in the production of high-quality saplings and the main commercial growers in identifying the best marketable varieties for Kosovo.

The program also will support farmers with technical assistance on production, harvest, postharvest and agricultural best practices, as well as on packing, sorting and grading and marketing.

In addition, the program will facilitate linkages and contracts between growers and input suppliers, collection points, processors, supermarkets or apple traders.

STRATEGY

The NOA approach to the apple sector remains the development of an effective and profitable apple sector, able to produce its own quality products, ready to fulfill local market needs and to compete regionally in the export of fresh and processed products to the EU market.

OBJECTIVE 1: PRODUCTS AND FARMERS LINKED WITH MARKETS

STRATEGY

Last year, the NOA program introduced new apple varieties and production techniques through trials.

This effort continues to require working with existing producers to expand their production programs as well as seeking new growers willing to introduce new production and marketable methods. Wherever possible, contracts are encouraged to ensure price, volume and timing to cement commercial relationships prior to production.

ACTIVITIES

1. Create apple cleaning and packaging training unit

There is a lack of knowledge and infrastructure for the proper washing, sorting, grading and sizing, all to ensure a quality apple pack, at the farm level. Such a situation is a must to ensure the successful and sustainable cooperation between producers and traders. To improve the situation, the program will support the establishment of one prototype apple packaging facility for training commercial growers, packers and shippers for postharvest packaging purposes.

NOA PROGRAM: FISCAL YEAR 2013 WORK PLAN 5

2. Purchase and demonstrate use of the “SmartFresh” ethylene inhibitor

To extend the shelf life of apples, the program will introduce use of the “SmartFresh” ethylene inhibitor.

The new post-harvest technology extends the shelf life of apples by three to four months. Doing so will better enable domestic product to supplant imports during this extended storage period.

3. STTA or FTF to address improved harvest, postharvest and packing

Appropriate harvest and post-harvest handling strategies and techniques are essential to improving quality and the overall marketability of the product. STTA shall provide trainings to enhance apple grower knowledge with respect to modern and effective harvest, post-harvest and packing technologies.

4. B2B for apple VC actors to supply market

To facilitate linkages between buyers and sellers within Kosovo, the program will organize a B2B meeting with commercial growers, processors, traders and supermarkets in the local market. The expected outcome of the meeting will be signed contracts or verbal agreements. Initiate and support growers’ joint initiatives for supply/sales.

BENCHMARKS

At least 1 apple packaging training unit established and functional;

Smart Fresh introduced for at least 2 apple storages;

At least 2 postharvest trainings organized;

1 B2B event organized;

At least 15 new contracts signed with (grower-processor-traders);

1 international STTA engaged for 10 days;

At least 80 young farmers trained on cleaning, sorting and packaging; and

At least 200 tons graded apples sold in the local market.

BUDGET

IIF/Activity International STTA Local STTA

19,600 Euros ($25,088) 10 days 0 days

OBJECTIVE 2: AGRICULTURE PRODUCTS DIVERSIFIED AND INCREASED

STRATEGY

Grow the area under cultivation with apples to 324 hectares from 300 hectares to meet market demand and reduce imports. Develop a nursery system able to produce planting material of international quality.

Introduce new cultural practices and best marketable apple varieties for the domestic and EU market.

ACTIVITIES

1. Award grants to nurseries for planting apple bench-grafted trees

At least 30,000 apple bench grafts sufficient to establish at least 12 hectares will be imported in the spring of 2013 through a local vendor (a registered and certified nursery). Bench grafts will be further distributed to 2-4 local nurseries that will further grow out feathered apple trees for one season. Trees will be planted permanently (within commercial plantations) in the fall of 2013. Criteria for the nursery selection will be set up, with priority given to those: certified and registered with the MAFRD; with sufficient demonstrable experience in propagation and maintenance; and with necessary infrastructure in place, i.e., irrigation and fertigation.

To ensure disease-free planting material, bench grafts will originate from within countries where a certification scheme is in place according to European and Mediterranean Plant Protection Organization (EPPO) standards. In addition to the import of bench grafts, an international STTA will provide technical

6 NOA PROGRAM: FISCAL YEAR 2013 WORK PLAN

assistance to local nurseries, training them to produce feathered trees and to maintain phytosanitary measures—something not currently done.

Following are the benefits of this exercise:

The sector will be supplied with high-quality and disease-free planting material that can enter into first commercial production just one season after planting, compared to whip trees that reach first commercial production a full three years after planting.

The sector (growers) will have opportunities to buy planting material that meets the highest phytosanitary standards (disease-free) and is of a much better quality compared to imported trees that originate from neighboring countries.

Commercial linkages between local nurseries and European nurseries will be reinforced.

Local nurseries in the future will be sufficiently skilled to propagate planting material that meets the criteria to be certified according to EPPO standards. To reach that level, technical assistance will be provided by experienced and knowledgeable international experts. Local experts as well will be trained and shall in the future be able to guide the propagation of planting material to highest standards.

The total area covered in commercial apple orchards will increase by at least 12 hectares, all featuring highly marketable varieties. The first commercial cropping is expected in October 2014.

The trees should fruit profitably for the next 20 years or more, ensuring steady incomes for about 12 households, creating at least 30 permanent jobs and yielding on average up to 400 tons of fruit annually.

2. Support to the top fruit nursery association for Kosovo

After meetings with the top fruit nurseries in Kosovo, the decision was made to form a top fruit nurserymen association that will be able to: lobby and speak with one voice on behalf of Kosovo’s apple nurseries to local governmental bodies, with the aim of improving policies and enforcing phytosanitary inspections. Program support for the formation of this association will be both of an administrative and technical nature, namely one full-time professional general manager, one full-time top fruit nursery technician and one full-time accountant. NOA will determine the level of cost share support that is required for this establishment.

Moreover, the program will facilitate establishing at least 0.25 hectares of apple mother block, grown in hedgerows, to produce bud wood suitable for grafting, as well as stool beds for vegetative rootstock propagation. The initial planting material will be virus-free and planted in fields protected under anti-virus netting in order to ensure a steady source of locally produced and disease-free rootstock and bud wood.

The association will sell at cost to the association members in order to provide affordable virus-free grafting materials to its members, all while covering the costs of the association. The association will establish linkages and cooperate with international inspection bodies to ensure EU standards are being met.

3. Provide international STTA to local nurseries

The program will provide international STTA to selected nurseries to assist in propagation and overall nursery management procedures. We will also assist nurseries in implementation of European Plant Protection Organization (EPPO) standards and invite agricultural faculty and agricultural professional school students to participate in field events to motivate and train them in top fruit production.

4. B2B for apple nursery operators to inspect bench-grafted tree before shipping, spring

In the spring of 2013, the program will send selected nursery producers and experts on a B2B visit to Italy to see firsthand apple nurseries, tour facilities, establish commercial relationships and inspect bench-grafted apple saplings before they are shipped to Kosovo.

NOA PROGRAM: FISCAL YEAR 2013 WORK PLAN 7

5. Selection of growers for new orchards

The Program will select all growers by spring 2013 for delivery of the 30,000 feathered apple trees produced by local nurseries that will be delivered in October of FY4 for the establishment of 12 new hectares of new orchards.

6. Technical assistance for selected commercial apple producers

All selected growers will be required to attend a farmer’s field school on site preparation, best cultural practices, apple production and protection, orchard management, harvest and postharvest through international STTA. 6 different trainings will be organized on orchard establishment, pruning, irrigation and fertigation, harvest/postharvest handling and IPM.

7. Purchase 3 sprayers for improved phytosanitary control

The Program will purchase 3 new sprayers to improve the marketable quality of apples sold and to improve phytosanitary conditions. This will allow apple growers to produce more first-quality fruit at a higher price. This activity will put in place a new set of service providers working within the PERSUAP principles directly supporting the apple sector.

BENCHMARKS

At least 30,000 bench-grafted apple saplings imported through 2 nurseries;

At least 2 local nurseries received bench grafts to be maintained for one season;

At least 2 field days organized for interested stakeholders;

1 B2B visit for selected nursery producers;

At least 12 hectares of orchards established;

At least 30 jobs created;

At least 400 tons of apples sold annually;

At least 6 farmer field school trainings organized;

Sustainable virus-free root stock and bud wood locally produced;

1 association established and functional; and

At least 100 students attended trainings and field days.

BUDGET

OBJECTIVE 3: FOOD QUALITY AND SAFETY IMPROVED

To implement good agricultural practices, IMP and good manufacturing practices.

ACTIVITIES

1. One training on Good Agriculture Practices

The program will engage an international (regional) GlobalGap consultant to prepare training materials, deliver trainings to apple producers, introduce Good Agriculture Practices and prepare a report on food safety standard requirements and recommendations. The participants will be preferably young, motivated apple producers interested in producing quality apples that meet all applicable food-safety standards.

2. One training on Good Manufacturing Practices

Improved production practices needs to be tied to certification and traceability. Processors particularly are interested in sourcing more from certified producers. A GlobalGAP consultant will deliver technical

157,000 Euros ($200,960) 60 days 1,240 days

8 NOA PROGRAM: FISCAL YEAR 2013 WORK PLAN

advice related to Good Manufacturing Practices (GMP) to apple producer groups and individual producers, as well as prepare materials, introduce GMP and prepare a report and recommendations related to this overall issue.

3. One training on IPM

A local IPM expert will be engaged to review the state of IPM implementation among apple producers, prepare training materials and deliver one-day trainings to apple producers. In addition, the local expert will prepare and submit a report with findings and recommendations for intervention.

4. Engage outside STTA to provide TA addressing fruit processing

The program will engage one international or regional vegetable processing technologist and/or engineer to share technical assistance related to processed product formulation, process improvement designs and machinery evaluation. The consultant will provide direct solutions to problems faced by processors involved in fruit processing – such as shelf life issues, coloration and process management.

5. GlobalGAP implemented by at least one producer per value chain

Assist F&V value chain producers to become ready for GlobalGAP certification. Good Agriculture Practices will be introduced at a minimum of 16 F&V producers, while only one will be selected for certification. An international or regional GlobalGAP expert, along with local expert support, will be responsible for implementation of Good Agriculture Practices at selected producers. This activity will include GlobalGAP training, implementation assistance and an internal audit for producers and support for correction of nonconformities found during the certification process.

BENCHMARKS

At least 63 commercial apple growers trained on GAP;

At least 63 commercial apple growers trained on GMP;

30 apple growers trained on IPM;

At least 3 field days organized for apple producers;

4 local vegetable processing companies supported; and

At least 1 apple farms receives international food safety standard certificate in GlobalGAP.

BUDGET

11,340 Euros ($14,515) 70 days 142 days

OBJECTIVE 5: IMPROVED COORDINATION WITH THE AGRICULTURE SECTOR

Keep MAFRD informed on apple sector developments undertaken by the program and coordinate on EPPO standards.

ACTIVITIES

1. Introduction of European Plant Protection Organization (EPPO) standards for apple tree production

In collaboration with government bodies (MAFRD, AVUK) the Program will provide technical assistance through international STTA, in the introduction and implementation of phytosanitary measures, all according to international requirements (EPPO, quarantinable diseases).

BENCHMARKS

EPPO standards introduced to at least 2 local nurseries;

80,000 apple trees produced as per EPPO standards; and

NOA PROGRAM: FISCAL YEAR 2013 WORK PLAN 9

EPPO standards introduced at 30 local nursery producers.

BUDGET

2,500 Euros ($3,200) 0 days 0 days

10 NOA PROGRAM: FISCAL YEAR 2013 WORK PLAN

TABLE GRAPES

DESCRIPTION

Kosovo’s table grapes show great import-substitution potential in the short term, as domestic production could conceivably increase significantly within the next few years. Kosovo has about 3,064 hectares of grapes under cultivation. Of that area, approximately 660 hectares are planted with table grapes. The average yield varies from 9 to 12 tons per hectare. Meanwhile, annual imports of table grapes equal about 3,000 metric tons. At present, the country lacks late-harvesting varieties, which are crucial in order to substitute imports in the period between August and December. Currently, there is no nursery vineyard production, no certification in place and the young plants purchased countries in the region are generally of low quality.

The competition posed by regional table grapes is very intense, due to the fact that the overall production and marketing of table grapes by neighboring countries is better developed and organized. To compete, Kosovo growers must continually increase production and improve vineyard management practices.

Doing so would enable them to produce table grapes of the highest quality and yield, and extend the period of presence on the market.

In August 2011, the NOA program, through an STTA, conducted a detailed assessment to evaluate and assess the production and competitiveness of the table grape sector in Kosovo and the potential both for import substitution and exports. The program has used the findings and recommendations from this study to design its strategy and interventions in the table grape sector during this work plan year.

To increase the quality and quantity of table grapes, the program financed the establishment of 6.7 hectares of two new varieties and an improved trellising system never before used in Kosovo. The program has worked with 20 growers to establish demonstration plots to encourage growers to modify existing trellising system and practice better canopy management, all with an eye to improving table grape productivity. Along with this, the program has facilitated and supported grower education, regarding table grape-specific production practices, through farmer field school (FFS), training of trainers, field days, round table discussions as well as exchange visits within the country.

SECTOR STRATEGY

By 2020, table grapes will be a profitable and sustainable industry in Kosovo, producing enhanced quality fruit for local, regional and EU export markets.

This represents a national issue and has to be dealt with it at that level. The NOA strategy will be focused on selective interventions capitalizing on promising leverage opportunities, such as the conversion of existing wine grape production into table grape production; the introduction of new varieties with higher market potential in EU markets; and the promotion of knowledge/technology transfer, including adoption of Good Agricultural Practices by the industry to reduce impact on the environment.

An effective transformation of the industry will be facilitated and supported jointly with MAFRD and other stakeholders. MAFRD is aware of the need for the transformation and will be providing support to our interventions at the policy level. Three are dominant issues to be considered and addressed.

First: Kosovo imports about 3,000 tons of table grapes annually, valued at more than 1.2 million Euros ($1.54 million) per year. This import can be replaced by local production. Apart from this, 130 hectares out of 660 hectares of domestic table grapes are old and of limited production capacity; these vineyards will soon be eradicated, reducing local production.

Second: Kosovo wine grape processors this year and in coming years will likely not be able to buy more than 25% of the wine grapes grown by independent producers. Of the 30,000 tons of grapes expected this year, 8,000 tons will be table grapes and 22,000 tons will be wine grapes. Processors will be able to buy no more than 5,000 tons for wine. Therefore, there will likely be a surplus of about 17,000 tons of wine grape in the market. In the past, some farmers have sold certain quantities of wine grape for fresh consumption (especially the Vranac variety). However, the quantities of grapes sold in this way are small.

Consequently, the potential for marketing wine grapes is very limited and solutions are not evident.

NOA PROGRAM: FISCAL YEAR 2013 WORK PLAN 11

Third: According to the Wine Institute in Rahovec/Orahovac, some farmers are already converting existing vineyards from wine grapes to table grapes. Others have already eradicated their vines and have asked for public support to establish table grape vineyards.

This presents a significant potential in wine-to-table grape conversion. To capture local market demand for table grapes, faster conversion of vineyards is critical. This will contribute substantially to effective sector development, job creation and income generation.

Conversion of wine to table grape production involves cutting back existing plants to the rootstock and grafting onto them improved table grape varieties. This is a process called grafting over. Investments for the conversion are lower compared to those needed to establish entirely new vineyards (i.e., the trellising system will remain the same, once established for wine grapes). Converted vineyards will enter into their first commercial cropping in the second year after conversion. That is one year earlier than is the case when establishing new vineyards.

The entire process will be built on the transfer of knowledge and the importation of grafting buds as scions. Other investments will include the labor for field cleaning and the conversion of existing trellising systems to a modified “T” system.

An approximate budget for the conversion (per hectare) is presented in the table below, with cost share expected from growers and NOA. It shows that growers will be financially supporting 67% (costs of the materials and services), compared to 33% supported by donors (conversion including grafts import and grafting process).

Items (materials and/or services) Cost in Euros ($) %

Materials (wire, posts, T arms) 1,976 (2,529) 67 grower Services (labor and machinery) 1,605 (2,054)

Conversion, including grafts 1,789 (2,290) 33 donor

OBJECTIVE 1: PRODUCTS AND FARMERS LINKED WITH MARKETS

Promote market opportunities and production improvements according to international market standards

There is a need to address specific market requirements and market opportunities, especially in areas such as quality, packaging and handling, with the aim of establishing improved Kosovo marketing standards.

These standards should comply with consumer requirements and should at least meet the levels of regional producers, who represent Kosovo’s major competitors. Collection and packing centers will be the focal point through which NOA will create linkages between growers and markets and promote the need for implementing standards in accordance with market requirements. NOA will support the production of a table grape standards leaflet for distribution to growers.

Through a visit to at least 1 international fair, local market players will be able to see first-hand the requirements of international markets, and start to implement standards in order to meet those requirements and be ready for potential exports in the near future.

ACTIVITIES

1. Facilitate dialogue through B2B meetings between market players to highlight what matters to customers and supermarkets and communicate results to commercial growers and aggregation centers

Facilitate development and promotion of quality standards

Brochures on quality standards will be developed and distributed to market players and growers.

NOA will work with potential table grape aggregators to encourage specialization in table grape cooling and packing

12 NOA PROGRAM: FISCAL YEAR 2013 WORK PLAN

The program will provide technical support and linkages to stimulate appropriate market demand for improved product from dedicated cooling services.

BENCHMARKS

At least 1 B2B meeting organized with market actors;

1 commercial cooling chamber established and operational; and

Quality standards brochure for table grapes produced and distributed to market actors (CCs, supermarkets and growers).

BUDGET

6,000 Euros ($7,680) 0 days 0 days

2. Support the conversion of wine grape production into table grape production

The total area converted in 2013 will be up to 20 hectares. Potential beneficiaries will be selected in cooperation with the Institute of Rahovec and MAFRD. Initial discussions with the wine institute indicate that there are a good number of farmers who have expressed interest in this conversion. Each farmer submitting to the conversion process will be selected by NOA in partnership with the institute.

An international grafting expert will be contracted to increase the technical skills of a local grafting team, which will carry out the grafting exercise under the direction of the grafting expert.

There will be at least 7 members of the grafting team involved. Additionally, about 20 young staff will be trained in the field. Trained staff will guide, coach and implement the entire grafting process with the support of local growers/grantees.

Virus-free grafts from reliable sources will be imported. On average, 4,400 grafts are needed per hectare, or two grafts per vine.

The modified “T” trellising system will be applied throughout vineyards on existing poles. This will allow converted vineyards to enter the first commercial cropping a year earlier compared to the establishment of new vineyards.

The TOT and FFS concepts will be implemented to provide technical assistance on the management of all vineyards by 1 international STTA. Trainings will include topics such as, canopy management, pruning, training, irrigation and fertigation, weed control and insect pest and disease management.

BENCHMARKS

Up to 20 hectares converted from wine grape to table grape production by grafting over;

At least 7 trainers and 20 intern support staff trained; and

At least 1 technical leaflet produced.

BUDGET

72,480 Euros ($92,774) 50 days 100 days

Increasing incentives to produce higher qualities of table grape

Only by improving table grape management, by treating the crop as distinct from wine grapes, can Kosovo move to a competitive table grape production. In order to move growers rapidly toward the new technologies of trellising and canopy management, NOA will work with input suppliers to offer in-house technical support as well as appropriate introductory discounts for inputs necessary for the improved management of table grapes.

NOA PROGRAM: FISCAL YEAR 2013 WORK PLAN 13

ACTIVITIES

1. Facilitate input dealers to provide embedded advice, services and demonstrations of good practice

In order to improve the provision of table grape-specific services, NOA will work with input dealers based in the production region and support them to provide input and management-related technical support to growers as part of their marketing program. Where necessary, NOA will use its internship mechanism to support the costs of these services for a period of time. Ultimately, these input suppliers will provide growers with a full set of extension services. Additionally, NOA will work with the collaborating with input dealers to train their extension service providers.

As part of this activity, NOA will facilitate the linkages of advisers, agri-input dealers and machinery operators to the growing community. For growers with at least 0.5 Ha, input suppliers and agro-service providers will be encouraged by NOA to offer promotional discounts. This in turn will encourage farmers to adopt critical management techniques, moving their production to higher qualities. In addition, NOA will investigate the potential for the local manufacturing of improved trellising systems.

BENCHMARKS

At least 2 agri-input dealers provide embedded services to growers;

At least 150 growers benefit from promotional discounts and adopt improved practices; and

At least 1 local company willing to manufacture trellising system.

BUDGET

16,800 Euros ($21,504) 0 days 20 days

Improvement of post-harvest technologies and practices, maintain fruit quality in field and in storage

STRATEGY

There are two critical intervention points that will bring table grape quality up to international standards.

The first is in-field crop management and is being supported under the program’s other objectives. The second is the improvement of post-harvest handling of product. Currently, cold rooms are equipped with compressors and evaporators that are able to maintain temperature of product but not to remove field heat quickly and effectively. This results in substandard post-harvest and storage conditions. This in turn leads to product that has a short shelf life and is not able to compete with imported product, no matter how good it was when brought in from the field. NOA will address this during the work plan year by working with appropriate table grape aggregators to install forced-air coolers in conjunction with adequate compressor and evaporator ratings. This will ensure that improved qualities coming off the field will be adequately pre-cooled to lengthen shelf life.

ACTIVITIES

1. Establishment of a forced air pre-cooling and cold storage room for table grapes

Through a cost-share mechanism, NOA will work with one or more selected table grape aggregators to improve their cold storage facilities dedicated to table grapes. The program will provide specific design support to ensure that partners install equipment designed to handle at least pallet-sized quantities of table grapes, removing field heat as rapidly as possible, bringing the grapes to storage temperature quickly.

The installed equipment will be designed in such a way as to enable the aggregator to expand the system after the initial cooling results have been seen. Additionally, NOA will provide the necessary technical

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support to the cooling center to ensure that the system is well managed and that the improved product quality is highlighted to the market.

BENCHMARKS

At least 1 forced air cooling unit is established in Rahovec/Orahovac region;

At least 1 packing center established and operational; and

At least 100,000 kilograms of table grapes pre-cooled, stored and sold out of season.

BUDGET

50,000 Euros ($64,000) 10 days 60 days

NOA PROGRAM: FISCAL YEAR 2013 WORK PLAN 15

STRAWBERRIES

BACKGROUND

In Kosovo, strawberry production currently involves more than 100 growers. Strawberries in Kosovo are produced mostly in open fields, representing around 90% of total production, while high tunnels and greenhouses account for the remaining 10%. Production is concentrated in the regions of Mitrovica, Skenderaj/Srbica, Dukagjini/Metohija and Gjilan/Gnjilane. According to MAFRD data, Kosovo has about 153 hectares of strawberries under cultivation. This past year, NOA supported the planting of 6 hectares of Honeoye and Albion varieties, with a total of 300,000 runners, as well as the nursery planting of 1 hectare with Honeoye, with a total 10,000 runners. In total, NOA supported 12 farmers, 10 commercial growers and 2 nurseries. Currently, strawberry production is hampered by poor seasonal distribution of harvest. The dominance of a few mid-season varieties under cultivation means that harvests are concentrated, the production season is short and overall competitiveness is poor.

STRATEGY

The strawberry value chain has developed well in Kosovo over the last 10 years. What the industry is still missing is new plant production by suitable varieties and sources of high-quality planting materials. By 2020, the strawberry sector will ideally involve a sustainable fresh-market industry supported by 400 hectares of production, and will be perceived as a superior supplier of fresh market strawberries to domestic, regional and EU markets. Yield potential is yet to be fully realized and producers require both continued support and increased market demand to instill the confidence required to spur further investments. In pursuit of this vision, NOA will support the sector in the following manner.

OBJECTIVE 1: PRODUCTS AND FARMERS LINKED WITH MARKETS

Increasing quality, quantity and continuity of strawberry production

The market for strawberries has previously been limited to local roadside sales and very limited linkages with retail outlets for pre-packed product. NOA-supported promotion of strawberries in a public setting was very successful during the strawberry sales season in 2012. This promotion engendered confidence at the grower level that a market indeed exists for high-quality, well-packed product. The attention to detail regarding packaging was well noted by consumers. Additionally, a trial export to Albania was well received, adding to grower confidence that market expansion is indeed possible. NOA will continue to link growers to markets by means of public, retail and export promotion.

ACTIVITIES

1. Organize promotion and sales days on Mother Theresa Street (or other frequented places/streets)

NOA will again support the promotion of strawberry sales in a public setting, involving between 30 and 50 of the biggest growers. This promotion will enhance cooperation among growers with the potential of their forming a growers’ association that would ultimately be able to take charge of the direction of the sector.

2. Formation of growers association

The program will facilitate formation of group work in different regions of Kosovo, including Skenderaj/Srbica, Lipjan/Lipljan/Shtime/Stimlje and other strawberry-producing regions. These groups can link and be better able to undertake promotion and marketing.

3. Facilitate sales with biggest supermarket chains and encourage direct promotion

The NOA program will continue facilitating sales with big supermarket chains for all berries, starting with strawberries and continuing on with blackberries and raspberries. The effort will focus on presenting packaged berries in distinct refrigerated areas. This will prove crucial for improving product quality and extending shelf life. Promotional materials and direct promotional activities will be organized within supermarkets and trade centers.

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4. Organize a promotional activity in Tirana (identify a central boulevard or street)

This promotion will be organized in late May or early June 2013, after the April-May peak season in Albania. This promotion will be linked with specific export contacts. Pre-visits in Tirana will be carried out during February/March to organize the activity and obtain official permission for such an event.

Reliable marketing contacts will also be made.

BENCHMARKS

At least 20,000 Euros ($25,600) in sales during street promotions in Kosovo;

At least 5,000 Euros ($6,400) in sales in Tirana;

At least 5,000 kilograms of strawberries exported to Albania; and

At least one supermarket display of Kosovo berries established in dedicated cold shelves.

BUDGET

16,000 Euros ($20,480)

With strawberries, quality planting material is critical to realizing potential yields of good quality product.

It is also critical to ensure that the correct variety mix is present with producers, in order to extend the season as far as biologically possible in order to maximize sales opportunities and competitiveness. The strategy is to have strawberries plants that are true to type and are disease free as well as varieties that extend the marketing season. Furthermore, attention to production detail should increase yields to 30 tons per hectare.

ACTIVITIES

1. Knowledge transfer to nurseries through Hargreaves

The NOA program plans to work with U.K.-based Hargreaves Plants Ltd. to support knowledge transfer regarding strawberry runner production to at least two Kosovo nurseries. Hargreaves will provide one technician who will train targeted nurserymen on the techniques of direct propagation. The selected nurseries will become the focal point for growers as all technical information will flow through them.

2. Study tour to England

NOA will organize a study tour for phytosanitary inspectors, allowing them to visit nurseries to learn how to enhance the propagation of runners and conduct phytosanitary inspections. This will be combined with a planned visit to Hargreaves, all early in 2013.

3. Facilitate the licensing of Hargreaves’ Albion variety to nurseries in Kosovo

Albion has changed the current strawberry situation in Kosovo. Yield potential is up and seasonality is being extended. Because the product is patented by the University of California (and licensed by Hargreaves), nurseries cannot multiply the variety. To enable the legal propagation and sale of Albion mother plants in Kosovo, in FY 2013 the NOA program will facilitate the necessary licensing from Hargreaves. This will enable growers to purchase licensed plants from Kosovo nurseries in the spring of 2013.

4. Support nurseries with Elsanta varieties

The program will support nurseries with 10,000 Elsanta mother plants for propagation. The project expects 300,000 runners by next year. The variety does not face the same patent issues as Albion.

NOA PROGRAM: FISCAL YEAR 2013 WORK PLAN 17

5. Transfer of knowledge to farmers on production techniques

Knowledge transfer will focus on these topics: crop rotation, bed configuration and preparation, plastic mulches, fertilizer and irrigation management, harvesting, post-harvesting and IPM. Training outreach will be done through local STTA, according to the crop calendar. The nurseries selected by NOA as partners will serve as the channel through which this information shall pass to growers. The program will engage 2 interns to support nurseries in providing technical assistance to growers.

6. Introduction of early production

Production of strawberries in high tunnels represents the best choice when it comes to protected cultivation. High tunnels are relatively inexpensive to build, are maintained easily and strawberry products ripen much earlier in the spring than do strawberries cultivated in open fields. NOA will identify at least 2 growers with 0.10 hectares seeking to expand into this production system, ideally as an adjunct to their open field production system. Data on production and profitability issues will be gathered, processed and disseminated within the growing community.

6. Preparation and publication of brochures on production techniques

NOA will produce a brochure that will include essential strawberry production information, including new varieties, selection of fields and cultivars, establishment and plantation, bed configuration, plastic mulches, transplanting, fertilizer, irrigation, pests and weeds, and harvesting. Brochure will be distributed to strawberry growers through different channels, namely nurseries, input dealers and service providers. A program staff member will prepare the brochure.

BENCHMARKS

Hargreaves agrees to supply technical assistance to cooperating nurseries;

At least 2 nurseries are identified to support implementation of activities;

At least 4 different trainings organized;

At least 50 growers will be trained;

At least 0.2 hectares high tunnels of early production implemented; and

Strawberry production brochure (500 pieces) printed and distributed.

BUDGET

22,900 Euros ($29,312) 100

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RASPBERRIES

BACKGROUND

The Kosovo raspberry industry is small when compared to that in neighboring Serbia and in other major producers in Europe. It is estimated that about 35 hectares of raspberry are currently cultivated in Kosovo. The production is of older domestic varieties of raspberries, which are suitable mainly for processing.