Kosovo_NOA_2014_Annual_Work_Plan.pdf

KOSOVO NEW

OPPORTUNITIES FOR

AGRICULTURE PROGRAM

FISCAL YEAR 2014 WORK PLAN

SEPTEMBER 2013

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 2014 WORK PLAN

SEPTEMBER 2013

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 2014 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

LIVESTOCK

Dairy

CROSSCUTTING

OUTREACH AND COMMUNICATIONS

IMPROVED ACCESS TO FINANCE

Acesss to Finance

GENDER EQUALITY

IMPROVED COORDINATION WITHIN THE AGRICULTURAL SECTOR

MICROENTERPRISE

MINORITIES

ANNEX A: PROJECT BUDGET BY VALUE CHAIN AND OBJECTIVE ...... A-1

ii NOA PROGRAM: FISCAL YEAR 2014 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 2014 WORK PLAN 1

INTRODUCTION

In January 2011, The United States Agency for International Development (USAID) awarded to Tetra

Tech ARD the New Opportunities for Agriculture (NOA) program as a Cost-Plus-Fixed-Fee type task order, under the RAISE PLUS Indefinite Quantity Contract (IQC) Number: EDH-I-00-05-00006-00.

This document presents the implementation strategy and Fiscal Year 2014 Work Plan for the NOA project in Kosovo. This represents the final full fiscal year of operation of the project. (Year 5 consists of 5 months over the winter period 2014-2015).

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 4 STRATEGY

NOA has successfully introduced new opportunities in agricultural production and processing over the past three growing seasons. These new opportunities include the introduction of totally new crops, such as asparagus, high-bush blueberry, saffron and several new varieties of leaf and head lettuce.

They also include the introduction of new technologies with a capacity to improve productivity, such as canopy and grafting management in table grapes, improved raspberry management and state-of-the-art trellising and fertigation (the application of fertilizer and other amendments with irrigation water) for gherkins.

Results achieved to date show strong performance in value chains with short product cycles – annual crops and dairy for example. The preliminary results of FY3 interventions are highlighted in the table below:

The above table disaggregates program performance by original NOA value chains and newly introduced value chains (during 2012, NOA introduced dairy, field vegetables and medicinal and aromatic plants). As can be noted from the above table, the dairy sector has shown some very robust performance in terms of domestic sales over FY3, significantly enhancing project performance with

2 NOA PROGRAM: FISCAL YEAR 2014 WORK PLAN

respect to sales indicators. Domestic sales for the dairy sector have grown by 34% over the preceding year and for the first time, local sales exceed imports. Additionally, this performance is a good example of the opportunities for import substitution which remains a pillar of the NOA strategy.

Overall, NOA is exceeding sales targets with stronger than anticipated export sales as a highlight.

(Exceeding target by 94%) However, when results emanating from new value chains are excluded, it is clear that domestic sales fall short of project targets by approximately 40%, and that FTE results are

15% less than targeted. These indicators give the project direction for the year ahead. We will continue to focus our efforts on job creation and raising sales volumes and values in order to bring domestic sales in line with FY4 targets.

The crops and technologies introduced by NOA constitute catalysts for real commercial expansion.

Such internally generated expansion is fundamental to achieving the results targeted by the NOA program. Results from Year Three have shown that the introduction of new technologies (grape and apple management, for example) and varieties/cultivars (strawberry, raspberry and apple. for example) are capable of generating significantly improved yields and improved productivity. It is clear that along with the “hardware,” improved “software” also is required. Farmers are realizing that in order to achieve optimal results, in addition to planting material, pruning and harvesting techniques

(“hardware”), improved management and attention to detail (“software”) also is required. Farmers who have managed to achieve this are showing excellent commercial results. The NOA program will continue during Year Four to emphasize farmer field day trainings and exchange visits in order to build confidence in making production investments.

These results go a long way in enhancing confidence in all aspects of the value chain, from production to marketing, an issue raised at the outset of Year Three. Processors have seen the benefits of forging relationships with commercial growers – the reliable quality, quantity and pricing that come from dealing with a farmer with the required commercial focus.

Having said this, much remains to be done in order to enhance farmer adoption of improvements promoted during Year Three. Market “pull” must be reinforced. More contracts need to be entered into among processors, consolidators and producers – contracts that mean more than a general intent.

Farmers will continue to require technical advice, and the project will continue to promote both the private and the newly established public extension services. Processors require greater confidence in their products and market access. Increased attention will be paid to food safety and the food-safety training for processor staff, as well as the integration of advisory services within the value chain. New in this final full year of activity will be the operation of three new pack houses/collection centers, supported by the Government of Kosovo under a unique cost-share arrangement. NOA will pay significant attention to training and providing technical support to management in structuring

NOA PROGRAM: FISCAL YEAR 2014 WORK PLAN 3

effective off-take agreements with farmers, as well as how to manage the flow of anticipated quantities of produce.

A significant strategic component of this year’s work plan is that of leveraging growth. The rationale is simple – if the project has done a good job in highlighting the potential of new opportunities, then others should be interested in investing. The project will look to leverage funds from sources such as municipalities and other donors as well as private-sector actors. NOA will use its limited grant and activities funds to place “cost share” opportunities before those interested in expanding the area of land on which they are producing new NOA-supported crops and varieties. The reaction of potential cost-share providers late in project year 3 indicates, for example, significant initial interest in expanding soft-fruit production.

The quality of human resources available to many NOA-targeted firms is still lacking and we will continue to introduce young qualified graduates to the agribusiness workplace, in the hope that they will be absorbed to bring fresh energy and additional expertise to the firms, something that is critical to the success of the project. Additionally, we will continue to emphasize on-the-job training that, thus far, is proving essential to human-resource development.

Access to finance is a lagging intervention under these conditions. Finance will not move freely into a system that lacks significant internal confidence. This is only just beginning to show across the NOA value chains. It is likely that a significant increase in financial access will be realized across those enterprises that are now discovering commercial opportunities as a result of NOA assistance. Early movers will be the value chains that have significant contracts in place for export, processing or strong connections with local markets – gherkins, specific pepper cultivars, raspberries and strawberries. We expect to see strong performance with the agro-card that will soon be issued by TEB bank, targeting such high performing enterprises and value chains. The established DCA facility with leading banks is having a strong influence by providing incentives to agribusiness lending. Indications are that lending to the sector is up, and interest rates are declining – according to interim reports from the Kosovo Central Bank. Strong sales performance amongst NOA value chains will enhance the interest of banks to lend and NOA will reinforce this by working with banks to identify leading sectors and potential clients.

NOA will continue to reinforce the empowerment of women in agribusiness, working with women’s groups, individual woman commercial farmers, and supporting women further up the value chain – processing firms, collection centers and advisory services, for example. Critically, NOA will continue to work with existing and identify additional women lead farmers in order to spotlight them as examples for other women to emulate, encouraging both men and women to improve productivity.

Activities aimed at improving coordination within the agriculture sector will be significantly expanded during FY3 as the public sector extension service established during Q3 and Q4 of FY3 starts to function and the lead farmer concept designed in collaboration with the MAFRD begins to generate results.

STRUCTURE OF THE YEAR FOUR WORK PLAN

This work plan continues to be structured by value chain (VC). This structure has worked well during

Year Three. The VC Lead (NOA staff member) remains responsible for identifying the need for, and overseeing the work 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-chain descriptions, they are included in the cross-cutting sections.

Under the annual work plan narrative regarding each value chain, the reader will find:

4 NOA PROGRAM: FISCAL YEAR 2014 WORK PLAN

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 Four.

Following the background information, each VC presents its specific overall 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 to that particular objective.

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

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

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 also 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.

VALUE CHAINS

NOA PROGRAM: FISCAL YEAR 2014 WORK PLAN 5

FRUIT

APPLES

BACKGROUND

Although Kosovo has favorable agro-climatic conditions for quality apple production, domestic production remains still very low. It is estimated that about 350 hectares of commercial apple orchards are presently being cultivated in Kosovo. On the other hand, annual imports of fresh apples are approximately 11,000 metric tons; that volume represents the production of 275 high-quality hectares. Apple storage capacity in Kosovo likewise remains very low but is likely to change with the introduction of three new regional collection centers.

During 2012, NOA introduced the cultivation of five early-, mid- and late-season apple varieties.

Besides the import of 14,400 certified pre-budded feathered trees and establishing 6 hectares of high-density apple orchards grown on state-of-the-art support systems, last year NOA also supported the purchase and import of 30,000 apple bench grafts. The program distributed these bench grafts to selected nurseries. They are sufficient for establishing 12 new hectares of high-density apple orchards.

It is clear that these new apple growers will transform the sector while other, established, growers lag behind in the adoption of such new technologies.

SECTOR STRATEGY

NOA will intervene in four specific areas during FY14 in order to continue to transform the apple sector.

1. Increasing production area;

2. Improving nursery/orchard management;

3. Improving postharvest handling practices;

4. Implementing selected GlobalG.A.P. certifications; and

5. Facilitating linkages backed by executable contracts between growers and traders.

OBJECTIVE 1: PRODUCTS AND FARMERS LINKED WITH MARKETS

STRATEGY

Farmers will grow highly demanded apple varieties, harvest and pack them appropriately, and be linked to profitable markets. NOA will promote apples farmers’ raw product to supermarkets.

ACTIVITIES:

1. Refine and implement growing/sales contracts with quality standards.

The experience from last year shows that proper application of growing contracts is a key factor in managing supply and developing effective long-term relationships among producers, supermarkets and processors. In order to increase the market share of domestic products and avoid contract misunderstandings, NOA will work with stakeholders to reformulate and update existing contracts to include more specifics, quality standards and details to be respected by producers, supermarkets and processors alike.

2. B2B for apple VC actors to supply market.

To facilitate linkages between buyers and sellers within Kosovo, NOA will organize a B2B meeting with commercial growers, processors, traders and supermarkets. The expected outcome of the B2B will be the signature of new contracts with more specific grading details. We will present and discuss quality standard revisions and the content of revised contracts at this B2B.

6 NOA PROGRAM: FISCAL YEAR 2014 WORK PLAN

3. Improved harvest, postharvest and packing

International STTA will be engaged to provide trainings to enhance apple growers’ knowledge with respect to post-harvest and packaging technologies. In addition, trainings for best harvesting practices, grading, sorting, packing and cooling will be implemented.

BENCHMARKS

At least one B2B event organized;

At least 15 improved contracts signed between growers, processors, traders, etc.;

At least one harvest and one postharvest training organized;

At least two apple producers supported with labeling and packaging materials; and

At least 70 farmers trained on harvest and postharvest practices.

BUDGET

Grants Activity ($) I STTA Days L STTA Days

22,000

OBJECTIVE 2: AGRICULTURE PRODUCTS DIVERSIFIED AND INCREASED

STRATEGY

The strategy is to diversify apple production, develop a nursery able to produce quality planting materials, increase orchard areas and improve production techniques in order to have a positive impact on the apple sector and markets.

ACTIVITIES:

1. Technical advice to the top fruit nursery association and producers.

The production of apple planting material that meets phytosanitary standards (disease-free) is essential for the sustainable and successful development of the apple sector. Last year, NOA supported four top fruit nurseries to produce 30,000 apple trees. The program will support the “Plant

Kosova” nursery association through STTA by focusing on plant material production and best management practices.

2. Planting new orchards with improved planting material.

Last year, NOA supported a local vendor, “Fidanishtja Kashic,” in importing 30,000 newly bench-grafted apple saplings. These imported bench grafted saplings were distributed to the “Plant Kosova” nursery association for further growing out to enable sales in this production year to apple farmers.

NOA will support the association to place these trees with producers able to expand planting area and thus raising the profile of high-quality local planting materials. These planting materials need to be promoted at the highest level to show the sector the value of this product as opposed to cheap, poor quality sapling imports.

TRAINING FARMERS ON APPLE PRUNING TECHNIQUES.

Pruning and training of apples trees is one of most important production activities in young apple orchards. This activity is critical and significantly impacts crop yields and quality. To improve producer knowledge, NOA will support the apple association to organize trainings on practical pruning techniques.

BENCHMARKS

At least 10 hectares of new orchards established;

NOA PROGRAM: FISCAL YEAR 2014 WORK PLAN 7

At least 2 field days organized for nurseries and new orchard producers; and

At least 50 farmers trained.

BUDGET

Grants ($) Activity ($) I STTA Days L STTA Days

2,500 12 (CNFA STTA)

OBJECTIVE 3: FOOD QUALITY AND SAFETY IMPROVED

STRATEGY

As Kosovo apple producers and packers compete more with apple imports and set their sights on regional exports, the industry must move to improved levels of food-safety certification. Certification at all levels needs to be improved. These certification standards include Good Agriculture Practices

(GAP, in the field), Good Hygiene Practice (GHP, in storage, packing and processing facilities), Hazard Analysis and Critical Control Point (HACCP, in processing facilities) and International Food

Standard (IFS, modified HACCP standard). NOA intends to build local capacity in the audit of these standards, and to increase the number of facilities and entities certified in the country.

ACTIVITIES

1. Building local capacities for Food Safety and Quality Standards

The program will engage a regional/international certification house to deliver a GlobalG.A.P., HACCP and IFS training to local experts and enable them to become food safety standard auditors.

After the training, new auditors will be able to do auditing and certification of local producers and processors interested to certify their products.

2. Organize training for GMP & GHP

Implementation of Good Manufacturing and Good Hygiene Practices at processing and handling facilities is critical to food safety. The food industry is not paying enough attention to these issues, believing that it is doing all that it needs to do. To improve this situation, NOA will engage a regional/international food safety consultant to deliver training to local experts, food inspectors and to the senior management of local processing firms. The consultant will deliver a specific presentation aimed at encouraging firms to improve their food safety practices.

3. Implementation of GlobalG.A.P. at apple producers.

Good Agriculture Practices will be introduced to all interested apple producers. Actual implementation of this international standard will be achieved by at three of the largest apple producers in Kosovo. Two local GlobalG.A.P. experts will be engaged for this activity to provide on-going support in the following areas: training, implementation assistance, internal auditing and organizing an external audit to achieve certification of selected producers.

4. Implementation of HACCP at processor.

NOA will target at least one processing firm for implementation of the HACCP standard. Training will include GMP & GHP trainings for workers, implementation assistance and an internal audit so the company will then be able to achieve HACCP certification.

BENCHMARKS

At least three local experts become certified auditors;

At least 72 ha of apple orchards GlobalGAP certified;

At least one new processor HACCP certified; and

8 NOA PROGRAM: FISCAL YEAR 2014 WORK PLAN

At least 45 people trained on food safety assurance (GMP, GHP, GlobalG.A.P., HACCP).

BUDGET

Grants Activity ($) I STTA Days L STTA Days

15,000 12 84

NOA PROGRAM: FISCAL YEAR 2014 WORK PLAN 9

TABLE GRAPES

The major objectives in this sector in FY14 will be the scaling up of the use of improved production technologies; promoting market opportunities; and facilitating improvements in the nursery sector.

These interventions will be facilitated by NOA and MAFRD through the Rahoveci Institute and grape grower associations.

OBJECTIVE 1. PRODUCTS AND FARMERS LINKED WITH MARKETS

A UNECE brochure developed in 2013 addressed the market requirements for table grapes. The brochure describes minimum market requirements, according to internationally recognized standards.

NOA will inform table-grape producers, traders and the public in general about these requirements through the below activities and public events.

ACTIVITIES

1. Facilitate market-to-farmer linkages through B2B meetings drawing together growers, packers, shippers and market actors;

A B2B roundtable will be organized at the beginning of the season to promote quality standards that will describe the goals to be achieved by implementing good practices in the field. The second roundtable will be organized at the end of the table-grape harvesting season to follow up on results and further describe the future of the sector.

2. Facilitate export linkages for packers and shippers of table grapes;

Over the last two years, small quantities of table grapes have been exported. In order to increase these volumes, and in conjunction with expanded area under improved field management, NOA will facilitate improved linkages between collection centers and the regional collection center and exporter

“Kelmendi GmbH.”

3. Facilitate and further promote improved quality, sorting and grading, field harvest packing, labeling and cooling of table grapes

To improve the grading, sorting and field packing of table grapes, NOA will support the largest producer of table grapes, “StoneCastle,” with field grading, sorting and packing tables. In addition, the employees of “StoneCastle” will be trained in improved post-harvest handling techniques. NOA will also support producers with improved packaging innovations in order to facilitate promotion of local table grapes in the market.

BENCHMARKS

At least two B2B round table meetings organized with market actors, growers, packers and shippers;

At least two packers and shippers of table grape initiate new improved packaging practices;

At least 40 growers accept and follow technical advice to produce table grapes to meet quality packing and grading standards; and

At least six field packing stations manufactured locally and in use.

BUDGET

Grants IIF/Activity ($) I STTA L STTA

10,000 3,000

10 NOA PROGRAM: FISCAL YEAR 2014 WORK PLAN

OBJECTIVE 2. AGRICULTURE PRODUCTS DIVERSIFIED AND INCREASED;

STRATEGY

The scaling up of new technologies and the modification of existing ones will contribute to higher quantities and qualities of table grapes produced in Kosovo. NOA will continue to facilitate interventions that will improve trellising and management systems.

In FY13, NOA supported the conversion of wine grapes into table grapes through an innovative grafting-over process. Almost 8 hectares were converted using this process, implemented by local experts. Using local scion materials, the re-grafting of the vines that did not “take” last year will continue.

The local propagation of new planting materials will contribute to sector transformation by supplying high-quality planting materials at affordable cost. The program will support initiatives by local industry practitioners to establish a viable table-grape nursery in Kosovo. Additionally, NOA will investigate the feasibility and potential utility of establishing a disease condition predictor weather station to facilitate timely disease prevention.

ACTIVITIES

1. Support initiatives to convert conventional trellising system to the improved trellising;

StoneCastle has expressed a readiness to convert the existing trellising system used across all of its table grape vineyards, or 20 hectares in total. The metal construction to be attached to the concrete posts will be manufactured by local companies. NOA will support the initiative by co-financing 50% of the cost of the metal construction; StoneCastle will finance the remainder of the investment, including the cost of wire trellising and installation. Having StoneCastle as a grower convert its entire vineyard in this manner will provide an excellent catalyst for industry transformation.

2. Re-grafting continued to finalize grafting over;

Grafting of vines which did not “take” in the initial grafting over process implemented in FY13 will take place in the spring of 2014. The project will be implemented by “Action for Revitalization" with the same grafter teams that carried out the work previously and with support from an international

STTA. The scions will be collected from local vineyards, including new varieties introduced by the program in 2013. The grafts (scions) will be collected in November 2013, stored under the appropriate conditions and monitored by the Rahoveci Institute.

3. Improved nursery program stimulating the propagation of improved planting materials

In order to meet the growing demand from growers for high-quality, improved variety planting materials, a local nursery initiative will be supported. NOA will support a nursery with the appropriate tools for grafting. The nursery will import certified rootstock and graft onto them local scions introduced by the program in FY13. This program will generate at least 40,000 new vines during 2014

(sufficient for 15 hectares) and establish a foundation that will produce at least 100,000 plants per annum.

4. Evaluation, monitoring and reporting on new variety performance under Kosovo agro-climate conditions and Kosovo market conditions;

New table grape varieties introduced in 2013 will provide an initial harvest in the 2014 season. NOA, in collaboration with local implementing partners, will closely monitor and record variety performance and will formally present these data to a wide cross section of sector stakeholders.

BENCHMARKS

At least 20 hectares converted from conventional to improved table grape trellising system;

At least 750 tons of table grapes produced on new trellising systems;

NOA PROGRAM: FISCAL YEAR 2014 WORK PLAN 11

At least 40,000 certified virus-free rootstocks imported by local nurseries (companies) and grafted in Kosovo;

Mother vineyard established;

At least 2 field days concluded; and

At least 200 growers attend field days.

BUDGET

Grants ($) IIF/Activity ($) I STTA L STTA

60,000 25 50

OBJECTIVE 3 FOOD QUALITY AND SAFETY IMPROVED

Table grapes can be effectively stored for out-of-season sale. NOA will continue to promote improved post-harvest handling, the use of forced-air cooling techniques and more effective storage technologies to enable off-season sales.

ACTIVITIES 2013

1. Establishment the forced air pre-cooling chamber and storage for table grape through co-financing;

NOA will continue to work with experienced growers and collection centers to establish the best site for table grape off-season storage. The selected site will develop a forced-air cooling unit that will enable storage of table grapes under ideal conditions in order to enable off-season sales.

BENCHMARKS

1. At least one forced-air cooling unit is established in Rahoveci region;

2. At least one packing center established; and

3. At least 100,000 kilograms of table grapes stored for out-of-season sale.

BUDGET

Grants ($) IIF/Activity I STTA L STTA

1,000 10 20

12 NOA PROGRAM: FISCAL YEAR 2014 WORK PLAN

STRAWBERRIES

DESCRIPTION

In 2012, an estimated 150 farmers were growing strawberries in most of the regions of Kosovo.

According to MAFRD data, Kosovo has about 163 hectares of strawberries under cultivation.

Production is scattered but among the municipalities of Skenderaj, Gjilan, Shtime, Lipjan, Suhareka, Rahovec, Prizren, Gjakova, Decan and so on. 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%. The introduction of new varieties is starting to have an impact in the market, with season length extended significantly. The pricing in the market is stimulating strong farmer and market interest.

STRATEGY

The strawberry value chain has developed well in Kosovo over the last 10 years. What the industry is still missing is the production of suitable new varieties and sources of high-quality planting materials.

By 2020, the strawberry sector will ideally involve a sustainable fresh-market industry supporting 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 install the confidence required to spur further investments. To assist in achieving this vision, NOA will intervene in the strawberry sector in FY14, in the following ways:

OBJECTIVE 1. PRODUCTS AND FARMERS LINKED WITH MARKETS

STRATEGY

Looking back, 2013 was very successful in terms of sales of strawberries, with NOA beneficiaries generating more than €500,000 in sales during the year. Consumer awareness of local product has increased significantly, especially as a result of two promotional activities organized in June and

August 2013, promoting both early- and late-variety strawberries. Prices were very good and never fell below €2/kilogram at the retail level. NOA aims to continue the marketing and promotional activities undertaken during the last two years to further support strawberry farmers, increase consumer awareness about local fresh strawberries and further facilitate linkages with markets.

ACTIVITIES

1. Organize promotion and sales days in Mother Teresa Boulevard and in different cities of

Kosovo;

The strawberry promotional activity is already a traditional event and we will continue this in 2014.

Lead farmers will be invited and the best quality product will be presented. Promotional supporting materials have already been designed and remain available from previous years; thus they will continue to be featured. Intense media coverage of the event will further support the sector. We aim to reach directly more than 15,000 consumers during these events. NOA will try to expand into at least two more large cities in Kosovo to continue with the education of consumers and the promotion of strawberry consumption.

2. Compiling lists of producers and distributing this to the market

NOA already has a consolidated list of lead strawberry farmers in Kosovo. This information will be validated and printed and distributed to traders, supermarkets and processors to encourage traders to sell more local product. Linkages with supermarkets will continue with B2B and round-table activities. This activity will be organized jointly with MAFRD’s extension services and potentially the engagement of interns from the University of Pristina.

NOA PROGRAM: FISCAL YEAR 2014 WORK PLAN 13

3. Organize round-table event with all players in the strawberry value chain

A round-table event will be organized with all actors in this value chain to address marketing and sales challenges as well as emerging opportunities. The purpose of this meeting is to bring the main stakeholders together to discuss strategy regarding marketing and activities required to expand production. At the same time, linkages between actors will be strengthened and processing opportunities will be discussed.

BENCHMARKS

At least €25,000 sales in street promotions;

More than €600,000 total sales from NOA client growers; and

At least 1 round table event concluded.

BUDGET

Grant Activity ($) I STTA L STTA

8,000

OBJECTIVE 2. AGRICULTURE PRODUCTS DIVERSIFIED AND INCREASED;

STRATEGY

The overall strategy during this year is to expand production while maintaining yields and quality and to increase the availability of high-quality strawberry planting material. Without a constant supply of fresh, high-quality planting material into the sector, growers will continue to rely on their own multiplication and suffer the declining yields that are a result of this practice.

ACTIVITIES

1. Introduce new varieties in different regions of Kosovo;

The purpose of this activity is to continue expansion of new strawberry varieties by interested farmers and regions. Planting material will be “frigo plants” of A quality in order to generate the highest yields. Spring plantings are envisaged.

NOA will work on the preparation and publication of information leaflets on day-neutral varieties, for distribution during strawberry day. Leaflets will contain a short description of the new day-neutral variety to be planted in the spring of 2014.

2. Study tour visit to Macedonia and Serbia;

Study tours continue to be important learning tools to encourage farmers to change production habits and practices. Visits to strawberry farmers in Macedonia and Serbia will help farmers see the latest technology in the strawberry sector and allow then to share their various experiences with planting materials and technologies used in this value chain.

3. Support two nurseries and one commercial grower with strawberry mother plants for propagation;

In order to continue to improve the quality and supply of runners, NOA will support two existing nurseries with 5,000 runners each.

The program will introduce 10,000 Italian strawberry mother plants for propagation to support the needs of the farmers working with a processor. This will increase the supply of raw material for processing. Production will be organized with farmers in the region of Gjilan and a processor, which will produce 200,000 runners for the following planting season. The selected processor will distribute runners to contracted farmers in the region of Gjilan, to establish at least 4 new hectares with strawberries, mainly for processing needs.

14 NOA PROGRAM: FISCAL YEAR 2014 WORK PLAN

4. Testing wild strawberry

ANI Holland (a Dutch fresh produce trader) has expressed interest in testing wild strawberries in the different agro-climatic conditions of Kosovo. ANI Holland will provide seedlings and NOA will support farmers with knowledge and technical assistance to assess the potential development of this variety in Kosovo. NOA will work with ANI Holland representatives to select suitable farmers in appropriate agro-climatic areas and supervise the establishment of the trials.

BENCHMARKS

At least 4 hectares new strawberry plantings established;

At least 5 farmers involved in new plantings;

At least 2 nurseries propagate new planting materials;

At least 10,000 mother plants for propagation delivered to processor for contracting farmers;

At least 1 hectare established with wild strawberries by NOA and ANI Holland;

At least two regional study tours conducted.

BUDGET

Grant ($) Activity ($) I STTA L STTA

50,000 4,500

OBJECTIVE 3 FOOD QUALITY AND SAFETY IMPROVED

STRATEGY

The commercial quality standards developed by the Working Party on Agricultural Quality Standards of the United Nations Economic Commission for Europe (UNECE) help to facilitate trade, encourage high quality production, improve profitability and protect consumer interests. Governments, producers, traders, importers and exporters and other international organizations used UNECE standards. NOA has identified problems in strawberry product classification and packing in Kosovo.

To assist in addressing this, an appropriate UNECE brochure will be developed to inform farmers how to process and pack according to the appropriate classifications: Extra class, Class I and Class II.

ACTIVITIES

1. Translate and print UNECE (United Nations Economic Commission for Europe)

STANDARD FFV-35

UNECE standards deal with the definition of quality requirements of strawberry fruits that are prepared and packaged for market. NOA will translate and print these quality standards for strawberry and disseminate these materials to main stakeholders within the value chain. UNECE’s Standards for

Strawberry will be printed as a brochure and as a poster.

BENCHMARKS

500 brochures printed and distributed to the farmers on UNECE Standard;

100 posters printed and distributed to farmers and extension agents on UNECE Standards.

BUDGET

Grant Activity ($) I STTA L STTA

1,800

NOA PROGRAM: FISCAL YEAR 2014 WORK PLAN 15

OBJECTIVE 5: IMPROVED COORDINATION WITH THE AGRICULTURE SECTOR

STRATEGY

Since strawberries represent an important crop for Kosovo farmers, there is a need to continue to extended technical knowledge to the main stakeholders in a unified way.

ACTIVITIES

1. Organize strawberry winter/spring school;

NOA will in collaboration with MAFRD and IADK develop a standardized winter training curriculum covering all aspects of strawberry production. Attendees at this winter school will include growers, processor staff, private sector and public sector extension agents and NGO’s involved in the sector.

NOA and IADK technical staff will provide the instruction.

BENCHMARKS

At least 4 strawberry winter school days organized in four different regions;

At least 2 field days organized;

At least 50 strawberry growers trained; and

At least 20 students from Faculty of Agriculture attend field days.

BUDGET

Grant Activity ($) I STTA L STTA

2,000 6

16 NOA PROGRAM: FISCAL YEAR 2014 WORK PLAN

RASPBERRIES

BACKGROUND

The Kosovo raspberry industry is still small when compared to neighboring Serbia and other major producers in Europe. It is estimated that Kosovo currently has at least 50 hectares of established raspberry plantations. In the Sterpce region there are some 30 hectares, in small plots of 0.10-0.30 hectares, while the rest of the farms are concentrated in Prizren, Podujeva, Dragash, Ferizaj, Gjilan and other regions. The two biggest producers in the country remain APC, in Podujeva, and AskFoods, in Gjilan. NOA supports both.

During the previous two years of the program, NOA established 14 hectares of four proven varieties of raspberries. These varieties were summer-bearing raspberries for the fresh market (Tulameen and

Nova) and the best fall-bearing raspberries (Polka and Autumn Bliss). Nova did not perform well in any of the sites planted during 2012, and further introductions have been discontinued.

During the spring and summer of 2013, consumers in Kosovo had a chance to buy in supermarkets, for the first time, fresh, locally grown raspberries. Prices reached €3.6/kilogram.

STRATEGY

The interest among farmers in growing this crop is increasing. NOA will continue to support the development of the commercial raspberry industry by supporting an increase in production area;

strengthening the nursery sector; improving postharvest handling; developing the fresh raspberry market; extending the seasonal presence in the local market and introducing Kosovo fresh raspberries to regional and EU markets.

The strategy for the raspberry sector is to expand and increase raspberry production in Kosovo by providing technical assistance that can lead to the increased yields and improved quality needed to meet fresh market demands and standards. Up to 500 hectares of raspberry orchards are predicted to be established by 2020, based on the market requirements in the local, regional and EU markets as well the current profitability of the crop. This value chain has a solid base to grow and has the potential to become an important commodity for the Kosovo fruit industry. Production will be concentrated around collection centers. Commercial growers are adopting new technologies and have begun expressing their readiness to expand production areas through out-grower production schemes.

OBJECTIVE 1: FARMERS AND PRODUCTS LINKED TO MARKETS

During FY 2013, the project organized on the main pedestrian mall in Pristina, a very successful activity to promote fresh berries, with a focus on raspberries. Fresh berries were launched for the first time in the market both through supermarket chains and the promotional activity on Pristina’s Mother

Teresa Boulevard. Similar promotional activities will be organized jointly with MAFRD for raspberries and other berries in FY14 to increase customer awareness and increase sales.

ACTIVITIES

1. Facilitate linkages with supermarkets and other potential local buyers

During 2013, NOA program facilitated the launch of fresh raspberries in Pristina supermarkets (City

Park, Maxi, Tregu i ri i gjelbert, ETC, etc.). The program aims to expand linkages with local markets and increase volume of sales through these channels during 2014.

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

NOA will again support the promotion of raspberry sales in a public setting, involving up to 10 of the most successful raspberry growers. This activity aims to increase consumer awareness of the quality and freshness of local raspberries and to increase consumption of raspberries by publicizing their nutritional value. Usual intense media coverage is expected.

NOA PROGRAM: FISCAL YEAR 2014 WORK PLAN 17

3. Explore the possibilities for the export of raspberries to fresh markets

NOA will work closely with APC, which already has developed a market in Germany for frozen raspberries, to assess the logistics involved in sending the first trial shipment of fresh raspberries to the EU. The quantity available is expected to be significant after the planting of an additional 20 hectares of raspberries in the Podujeva region during the spring of 2014.

The program is developing cooperation with ANI Holland, which is exploring the possibility of advancing planting materials to producers, and entering into contracts with it for off-take of production into the fresh market in Western Europe. This will be possible if the quantity available in

Kosovo is adequate, attractive and GlobalG.A.P. certified.

NOA will engage in organizing inbound or outbound study tour visits aiming to promote exports.

BENCHMARKS

At least €15,000 sales through street promotions;

At least €20,000 Euros in sales to supermarket chains; and

First trial shipment of fresh raspberries exported to Western Europe.

BUDGET

Grant IIF/Activity ($) I STTA L STTA

15,000

OBJECTIVE 2: AGRICULTURAL PRODUCTS DIVERSIFIED AND INCREASED

The goal is to increase overall fresh raspberry production by 300 tons in 2014, by planting new varieties and prolonging the harvesting season. The program will cooperate with actors, such as ANI

Holland, interested in providing pre-harvest advances in the form of planting material and engaging in contracted export sales to fill the February-March gap identified in the market for fresh raspberries.

Additionally, there is strong interest from municipalities and private investors to provide financial support to expand production, provided cost-effective planting materials are available. Blackberries too, are becoming an attractive crop for producers; therefore, NOA will explore the possibility of introducing new blackberry varieties for production in the Podujevo area.

ACTIVITIES

1. Increase the production area

The APC Co. will organize 23 out-growers from Podujeva region to increase raspberry production

(Polka variety). These out-growers will plant about 20 hectares of raspberries. Thus, in the spring, 200,000 additional canes will be planted at those out-grower’s sites with proper soil conditions and sufficient irrigation potential. The municipality of Podujeva’s Department of Agriculture has agreed to support this activity with €20,000 in cost-share grants to growers. Other municipalities have expressed their interest in supporting area expansion in a similar way. For example, both the municipalities of Gjilan and Strpce have expressed an initial interest in entering such cost-share grant agreements.

2. Support production

New farmers interested in producing raspberries will collaborate with lead farmers from their respective regions. International STTA will be engaged to support raspberry producers with technical advice where appropriate to further support the strong local cadre of extension advisors now in place.

In addition, NOA-supported interns will be engaged to support growers; two in Podujeva and two in other regions, as required. Training programs will be provided to include field trips to raspberry production areas in a neighboring country. Informational outreach activities will be organized and materials produced.

18 NOA PROGRAM: FISCAL YEAR 2014 WORK PLAN

3. Test new varieties and prolong the harvesting season

The program will support the testing of at least three new raspberry varieties. ANI Holland is interested in testing new primo canes, such as Imara, Kweli, and Kwanza (a protected variety), under

Kosovo conditions. Hargreaves Plants has also expressed its interest in testing new cultivars through strong local partners. NOA will assist local partners in negotiating such partnerships and provide technical assistance as necessary, throughout variety testing.

BENCHMARKS

At least 20 hectares of new raspebrry plantations established;

At least 3 new raspberry varieties under test by private sector;

BUDGET

Grant IIF/Activity ($) I STTA L STTA

50,000 5,000 14 40

OBJECTIVE 3: FOOD QUALITY AND SAFETY IMPROVED

The program will change the focus on raspberries from low-value processing to higher-value fresh market product. The transition strategy for the raspberry production industry from processing to fresh market sales includes support to existing cold storage processors to work with farmers presently supplying their collection centers. Supported cold storage processors will also be expected to become farm service centers serving the surrounding community of farmers needing special inputs to produce fresh market berries, e.g. appropriate irrigation supplies, clamshell packaging, special tools or implements, etc.

ACTIVITIES

1. Provide technical assistance by engaging international STTA

An STTA consultant will be engaged before the harvest season starts to introduce best practices on raspberry postharvest handling for fresh export markets. The STTA will also advise raspberry growers on production activities.

2. Introduction of forced-air cooling

In FY14, the program will support the installation of forced-air cooling at APC in Podujeve/Podujevo, which already has sufficient cooling capacities essential for the raspberry industry. Doing so will further enable extended shelf life and improve quality. The equipment will be fabricated for assembly inside the high-volume cold rooms at APC and will constructed of locally available materials. The installation will be on a grant cost-share basis.

3. GlobalG.A.P. standard at raspberry farm level

Training on GlobalG.A.P. requirements will be organized for raspberry growers, especially those engaged in the new fresh market opportunities. Ten (10) growers will receive training in

GlobalG.A.P. requirements.

BENCHMARKS

Installation of at least 1 forced-air cooling system to facilitate fresh export of raspberries; and

At least 10 growers trained on GlobalG.A.P.

BUDGET

Grant ($) IIF/Activity I STTA L STTA

25,000

NOA PROGRAM: FISCAL YEAR 2014 WORK PLAN 19

BLUEBERRIES

BACKGROUND

High-bush blueberries were not commercially cultivated in Kosovo until after the 1998-99 war. The first trials were established in 2008 by the Swiss Project for Horticultural Promotion (HPK) in

Kosovo. They included pot-grown blueberry bush varieties. Trials were carried out in 6 different zones.

Overall, Kosovo enjoys favorable agro-climatic conditions for high-quality blueberry production.

There are good marketing opportunities in both the local and export markets. Blueberry appears to be potentially a very profitable crop, with low pest and disease risks.

In 2012-13, NOA supported the establishment of Kosovo’s first commercial blueberry plantations, covering 10 hectares, in 4 different zones, and involving 9 growers.