Agri-Management Group of Georgia LLC

Agri-Management Group of Georgia LLC

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AMGG property before the project implementation – August, 2019

AMGG property – January, 2020

Hazelnut Husking, Drying and Storage Facility in Village Eniseli, Kvareli Municipality, Kakheti Region.

Agri-Management Group of Georgia (AMGG) LLC, established in December 2018, is located in Eniseli village, Kvareli municipality, Kakheti region. The area is well known for growing hazelnuts due to its fertile soil and amenable climate. Currently, total hazelnut orchard area in these villages exceeds 4,000 hectares and average yield equals more than 4,000 tons, almost the 7% of the country’s total production.

Mr. Dimitri Aleqsidze, Director of AMGG LLC, graduated from Tbilisi State University and Paris University, is an economist and Jurisprudence specialist, and has more than 6 years of experience in hazelnut sector.

The total cost of the project is $340,000 and is jointly financed by the Agricultural and Rural Development Agency (ARDA), covering 50% of project costs,  AgriGeorgia/Ferrero, with the grant of EUR 50,000, USAID/G-HIP with the grant of USD 50,000 and partner and is good example and showcase of cooperation of Georgian Government,  Donor Program and private sectors.

Existence of this facility is very important to secure the quality of hazelnuts and consequently incomes of smallholder growers. Farmers can approach AMGG LLC and procure fee based drying and/or storage services to reduce post-harvest losses and improve the quality of their harvest.  This HDS facility is capable of drying 1,000 tons and storing up to 500 tons hazelnut per year.

  • Program Investment of $50,000 – Procurement of 95 hp tractor and 2 t/h capacity hazelnut cleaning machine, procurement of electric pallet stacker, and procurement of safety equipment.
  • AgriGeorgia/Ferrero investment of $ 55,500 – Construction of the HDS Facility.
  • Partner Co-Investment of $234,500 – Procurement of construction materials, construction of 750 square meters building, and procurement of drying equipment. 

 

Establishing Effective Partnerships to Control the Brown Marmorated Stink Bug (BMSB)

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In Georgia, hazelnuts and other crops are under threat by the Brown Marmorated Stink Bug (BMSB). Since 2016, USAID and CNFA have worked together to support the BMSB efforts of the Government of Georgia through the Restoring Efficiency to Agriculture Program (REAP), and today continue working together through the USAID Agriculture Program and the Georgia Hazelnut Improvement Project (G-HIP).

 

View video on partnership here.

Leveraging Public-Private Sector Partnerships to Protect Georgian Hazelnut Crop

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In Georgia, CNFA works with Trécé Inc. – a U.S. company based in Oklahoma that produces pheromone traps and lures – and other public and private sector partners through its USAID Agriculture Program and Georgia Hazelnut Improvement Project to help monitor the Brown Marmorated Stink Bug (BMSB) pest which threatens hazelnut and other crops across the country.

 

View video on partnership here.

USAID Agriculture Program Promotes Public-Private Partnerships, Supporting Local Supply Chains

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In collaboration with McDonald’s Georgia, our USAID Agriculture Program is promoting public-private partnerships to empower farmers and improve supply chains in Georgia. The USAID Agriculture Program supports farmers and agribusinesses by assisting the implementation of internationally recognized food safety standards and practices, promoting various agricultural producers and food processors to enhance their operations, and improving the safety and quality of Georgian-produced products contributing to increased demand on local and international markets.

 

View documentary on partnership here.

USAID Yalwa

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Enhancing Markets and Nutrition in Niger

Overview:

The $29.1 million five-year USAID Yalwa (2020-2025) activity strengthens the capacities of farmers, producer organizations, agribusinesses and rural households in the Maradi, Tillabéri and Zinder regions of Niger to meet the growing demand for affordable, safe and nutritious food.

Yalwa means “fulfillment” or “blossoming” in the Hausa language. USAID Yalwa supports USAID’s regional Resilience in the Sahel Enhanced (RISE) program, which works with the Government of Niger to help citizens escape poverty and build resilience to natural, economic and other shocks. USAID Yalwa includes a ground-breaking component on food market systems and follows five years of progress generated by the USAID-funded Resilience and Economic Growth in the Sahel – Accelerated Growth (REGIS-AG) program, also implemented by Cultivating New Frontiers in Agriculture (CNFA).

Program Approach:

USAID Yalwa’s market systems facilitation approach is based on collaboration with catalytic local actors and networks. Yalwa will work primarily through unions to provide services to producer groups (access to agro-inputs, finance, skills development, etc.), while building their capacity to provide services without project support. The approach leverages commercial investments to build long-term linkages between buyers and sellers, ensure delivery of inputs and services and supply nutritious food. It also builds the skills of farmers, traders and processors so they can earn a profit from their businesses, seek out nutritious foods and become self-reliant.

Yalwa targets 105,000 farmers in over 195 villages and 160 small and medium enterprises (SMEs) by fulfilling the following purposes:

  1. Enhance performance of market systems in the cowpea, small ruminant and poultry value chains.
  2. Increase the use of high-quality inputs and services such as seeds, fertilizers, and livestock and poultry feed, improving food production and storage and supporting improved marketing, production and access to finance and climate information.
  3. Increase local consumption of nutritious, safe and affordable foods by promoting demand and helping market actors to supply these foods to targeted populations.
  4. Promote inclusive markets for women and youth by identifying barriers to market participation and working with communities to encourage youth and women’s entrepreneurship and leadership.

Partners: 

USAID Yidgiri

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Enhancing Markets and Nutrition in Burkina Faso

Overview:

The $19.4 million five-year USAID Yidgiri (2020-2025) activity is designed to strengthen market systems, sustainably increase household incomes and improve the nutritional status of women and children in Burkina Faso.

Aptly named Yidgiri, or “grow” in the Mòoré language, USAID Yidgiri is part of the second phase of the USAID Regional Resilience in the Sahel Enhanced (RISE) project, which supports vulnerable communities in Burkina Faso to prepare for and effectively manage recurrent crises and to pursue sustainable pathways out of poverty. By 2025, USAID Yidgiri aims to improve the resilience of market systems by establishing profitable linkages between producers and buyers in the Centre Nord, Sahel and Est regions of Burkina Faso and facilitate access to local and regional markets.

Program Approach:

USAID Yidgiri is strengthening the resilience of market systems by building individual and institutional capacities among agricultural market actors in Burkina Faso. USAID Yidgiri has three focus areas:

  1. Enhance performance of commodity market systems by establishing profitable market linkages between producers and buyers, improving livestock market system structure and governance and increasing the capacity of market system actors, including farmers, producer organizations and small and medium-sized enterprises (SMEs), to access financial services and products.
  2. Increase use of quality inputs and services by developing business clusters, organizing seasonal commodity fairs, facilitating partnerships between producer organizations and industrial and institutional buyers and leveraging financial services. USAID Yidgiri works at the systems level to decrease costs, improve quality and educate farmers on the most efficient and effective use of available inputs and services.
  3. Increase consumption of nutritious, safe and affordable foods by increasing demand for and facilitating the market-driven development of diverse sources of such food and employing social behavior change (SBC) interventions to ensure that all activities resonate with targeted rural markets, especially women and youth.

Partners: 

Providing Access to Finance in Nigeria: The Babban Gona Story

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Photo Courtesy of Babban Gona

Although agriculture is the mainstay of Nigeria’s rural economy—and an important contributor to Nigerian economic growth and food security—most of the nation’s “agro- preneurs” still encounter significant difficulties to accessing the financing they need to increase the profitability and sustainability of their businesses. These hurdles have persisted even in the wake of decades of government and donor-funded agricultural development initiatives.

To address this challenge, the USAID-funded Feed the Future Nigeria Agribusiness Investment Activity supported Babban Gona, a Nigerian agricultural social enterprise, to overcome these hurdles.

The Activity—implemented by Cultivating New Frontiers in Agriculture (CNFA) —helps to broaden agribusinesses’ access to finance and investment by mitigating the risks they face when seeking funding to expand and scale up operations. For Babban Gona, the Activity provided expertise to review the legal articles, financial projections, and contractual agreements to meet the expectations of all parties. As a result, Babban Gona was able to successfully negotiate the offers and conclude agreements with the financiers.

The new funding equated to $18 million for Babban Gona. This was processed in two transactions —an equity investment from KfW Development Bank, based in Germany, and a subsequent debt facility from the Agriculture Financing Initiative (AgriFI).

“It is a true privilege to welcome KfW as a Babban Gona shareholder and board member,” said Adaeze Usoh, Babban Gona’s Corporate Finance Minister. “This partnership would not have been possible without the support of the USAID Agribusiness Investment Activity.”

Babban Gona provides four key services to its farmers, or “outgrowers” — innovative financial services; agricultural input services at competitive prices; training and capacity development to establish strong farmer groups; and access to markets to generate increased profits. Babban Gona will primarily use the new funds gained to add new storage capacity as well as expand the locations and number of the firm’s outgrowers.

“I am impressed with the Babban Gona business model and am confident that the lives and businesses of their smallholder farmer out-growers will greatly improve through the financial and extension support being provided,” said Dr. Adam Saffer, the Activity’s Chief of Party and Managing Director.

Over the next four years, the Activity will continue to support Nigerian producer groups, aggregators, processors, and other services within the agribusiness value chain in gaining access to affordable finance and attracting investment. Saffer also said, “The social and economic potential of the agriculture sector is one of Nigeria’s greatest competitive and comparative advantages, and we aim to help producers, off-takers, and financiers alike realize this through a better mutual understanding of each other’s expectations.”

Additional details of the Activity can be found here

 

Private Sector Activity (PSA)

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In 2015, the Government of Azerbaijan (GOAJ) developed strategic sector roadmaps for developing the economy, with a special focus on non-oil sectors such as agriculture. The need for developing non-oil sectors, especially agriculture – which officially employs half the Azerbaijani workforce – became obvious as the world price for oil began declining in 2014. Since then, the GOAJ implemented a reform agenda supporting incentives for non-oil exports by facilitating greater exposure to regional markets, implementing administrative reforms to remove barriers for trade, registering agricultural associations and establishing new government agencies to support small- and medium-sized business.

The USAID Private Sector Activity (PSA) (2019-2024) is a five-year, $15 million initiative that utilizes a partnership and co-investment approach to support a more resilient Azerbaijan economy and improve the business enabling environment. To accomplish this, the Activity supports the non-oil sector by improving the competitiveness of the private sector (with a special emphasis on agriculture and other rural economic activities), building the capacity of business support services and reducing the barriers that hinder the development of micro, small, and medium enterprises (MSMEs).

PSA is building on the successes of USAID’s support to agricultural producers and processors in Azerbaijan achieved over the last 20 years. In partnership with the Azerbaijani government and the private sector, the Activity helps address their priorities for modernization and improvement of public and private sector support and service delivery. This bolsters the diversification of Azerbaijan’s economy by strengthening the capacity of public institutions to carry out new responsibilities and adjust to institutional change to implement the reforms outlined in the strategic roadmap. The Activity achieves this through activities designed to:

  1. Develop a more diversified economy: USAID provides assistance that supports the increased diversification of the non-oil economy in Azerbaijan, specifically but not limited to the agricultural sector. As such, the Activity assists small- and medium-sized farmers to become commercially viable and compete in local or export markets. The Activity also works with processors, traders and cold storage operators to improve their adherence to international standards. The Activity builds capacity in support of developing the agricultural sector and value chains in which the activity works, as well as USAID’s Global Development Alliance (GDA) initiatives.
  2. Improve the business environment for MSMEs: Because businesses face administrative barriers that stifle competition, dissuade investment, and constrain trade, the Activity works with associations and MSMEs to identify these barriers, communicate them to the relevant government agencies, and target their elimination. These efforts help to increase the benefits of economic growth and remove obstacles to competition, investment, trade and integration into the global economy. The Activity also contributes to the harmonization of Azerbaijan’s legislation and institutions with  international standards and recognized best practices. As a result, businesses have increased opportunities to produce, trade, export and earn income.
  3. Support Azerbaijan’s economic reforms: The Activity increases Azerbaijan’s economic stability by supporting economic reform initiatives to help boost the non-oil sector. To accomplish this, the project has developed a rapid, flexible response mechanism to provide technical specialists and material support to Azerbaijani officials who require assistance to identify public sector reforms. It will then recommend reform implementation options and monitor the progress of reforms, offering assistance as needed. Support will include both short-term and long-term technical assistance to Azerbaijani counterparts, potentially including specialists in: monetary policy; banking supervision; financial intelligence; public financial management; and others as identified by Azerbaijan’s government and private sector, as well as USAID.

Cross-cutting themes:

  1. GOAJ collaboration
  2. Private sector engagement
  3. Women’s economic participation

Partners:

  1. Nathan Associates Inc. (USA)
  2. WCC International (USA)

New Facility Helps Boost Revenues and Expand Market Access for Georgian Farmers

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Georgia is the world’s fourth-largest producer of hazelnuts. Production of the popular nut—one of that nation’s leading agricultural exports—supports the livelihoods of more than 50,000 Georgian growers and processors.

Unfortunately, inadequate post-harvest handling services and outdated Husking, Drying, and Storage (HDS) facilities have hindered many smallholder Georgian farmers from producing crops of consistently high quality—resulting in crop losses, lower prices and reduced profitability.

But now a new hazelnut HDS facility is helping to turn that situation around for one hazelnut-growing community. The facility, established with the help of the United States Agency for International Development (USAID) through its Georgia Hazelnut Improvement Project (G-HIP), opened its doors in September 2019 with a ribbon-cutting ceremony attended by USAID Mission Director Peter Wiebler, local farmers and partners.

Opening of new hazelnut facility

The new hazelnut facility—located in the Koki village, Zugdidi Municipality, Samegrelo Region, and owned and operated by Koki 2014 LLC—is designed to offer farmers husking, drying and storage services that will help them better process their crops and improve product quality in order to boost revenues and expand market access.

The project is part of efforts spearheaded by G-HIP’s Global Development Alliance (GDA), a coalition of USAID, Ferrero and Cultivating New Frontiers in Agriculture (CNFA) which leverages the partners’ technical and financial resources to advance development of the hazelnut industry.

Koki—which contributed $210,509 of its own cash to cover construction of the HDS facility, as well as expenses for new staff salaries, laboratory tools and marketing—used a $50,000 USAID/G-HIP grant to procure drying silos, heated air blowers, fans and a storage electric pallet stacker to outfit the new 800-square-meter HDS facility, which is expected to employ 17 individuals and serve approximately 300 local farmers. The $50,000 USAID/G-HIP grant was co-financed equally through the Agricultural and Rural Development Agency under the Georgian Ministry of Environmental Protection and Agriculture, and AgriGeorgia/Ferrero for a total project cost of $260,509.

The facility will be capable of drying up to 1,000 tons of hazelnuts per year. With an estimated value of $1,800 per ton, this represents $1.8 million in potential revenue to improve the income and livelihoods of local hazelnut farmers and the 900 members of their families.

Improving the Georgian hazelnut sector’s post-harvest handling through new husking, drying and storing facilities represents just one part of G-HIP’s overall program objectives. Over the next year, G-HIP will also continue to provide training and technical assistance alongside the Georgian Hazelnut Growers’ Association and the Hazelnut Exporters and Processors Association, with the aim of further strengthening capacity, facilitating market linkages and improving growers’ knowledge of market requirements. G-HIP along with AgriGeorgia/Ferrero, will also support the establishment of a certification course in hazelnut cultivation and postharvest handling.